India and the new US president
NDTV Proft runs a daily show called "India and the new
President". This focuses on the contrasting ramifications for
Indian politics and economics under a Democrat/Republican
presidency in the United States next week.
This show raised some interesting questions. The emphasis seems to be on economic interlinkages between India and the US - for example, what impact will an Obama presidency have on outsourcing? (Obama has issued many press releases detailing his lack of enthusiasm for outsourcing because of the employment situation in the US). India's trade/financial relationship with the US (given the current financial situation) has also been highlighted. So much so, representatives from the US-India Business Council vouched that they saw India and China as playing a "stabilising role" in world markets, using our currency, credibility and growth as a safe destination for investment.
But there are definitely several foreign policy implications as well - India's role in the Security Council and US attitude towards Pakistan are two such issues that have been discussed in the show so far.
Have there been any broad conclusions? At first glance, a Republican administration will tend to be more friendly towards deepening our economic relations. But in practice, all we can do is wait and watch.
This show raised some interesting questions. The emphasis seems to be on economic interlinkages between India and the US - for example, what impact will an Obama presidency have on outsourcing? (Obama has issued many press releases detailing his lack of enthusiasm for outsourcing because of the employment situation in the US). India's trade/financial relationship with the US (given the current financial situation) has also been highlighted. So much so, representatives from the US-India Business Council vouched that they saw India and China as playing a "stabilising role" in world markets, using our currency, credibility and growth as a safe destination for investment.
But there are definitely several foreign policy implications as well - India's role in the Security Council and US attitude towards Pakistan are two such issues that have been discussed in the show so far.
Have there been any broad conclusions? At first glance, a Republican administration will tend to be more friendly towards deepening our economic relations. But in practice, all we can do is wait and watch.
3 Comments
Shruthi Jayaram
More interesting reading post the elections can be found at http://www.expressindia.com/latest-news/Obama-finally-calls-Manmohan--says-India-important-for-US/384689/
Maria Jos
What interests me is the role of the Indian diaspora in the United States; a very small percentage yet very influencing and the extent of lobbying power they have. i think the Nuclear deal coming through was the outcome of lobbying by Reliance here and by Indian interests in the US. I think the Indian lobby in the US will have a significant role to play in where our foreign relations go.
Anthony D'Agostino
One significant difference that an Obama presidency will bring to the table in comparison to the past eight years under Bush, is a strong focus on multilateralism and international cooperation. This will indicate a sharp turn away from unilateralism and the go-it-alone politics of a cavalier administration. Obama is too smart for that and the military failures of Iraq/Afghanistan have well proven the need for a) significant dialogue with our international allies (including India), and b) burden-benefit sharing amongst those allies. The notion of an international college of regulators to oversee financial markets will come with costs - but it's obvious that large-scale engagement with other key players is necessary to avoid further financial market collapses.
Already we're seeing a shift in that direction of multilaterialsm and inclusivity (not due to Obama, but a trend that Obama is likely more aware of than his predecessor or McCain), evidenced by the plurality of voices at the emergency G20 meeting held in Washington, DC this weekend. For several decades, Western powers had locked out non-Western countries when designing international finance mechanisms and have been consistently derided as an unfair form of governance, failing to incorporate developing countries (and their needs) into the decision-making process. Now the global distribution of wealth has tilted towards greater equalization amongst nations, likely moreso than anytime since the rise of industrial capitalism, with its supposed outcome of power-sharing as well. Obama's well aware of the benefits of sitting at a larger table (with more place settings) and the diminished role that the US and US-led institutions will play in an era without a sole superpower. How will this translate into Indo-US relations? Perhaps negatively, at least on the economic front, given his firm stance on punishing companies who outsource and offering incentives to those that create jobs in America. In terms of issues that have global reach: emerging epidemics, climate change, transnational terrorism, trade, etc., we might see countries like India enjoy more time at the podium and leaders like Obama paying more attention.