Taylor Northern

Dr. Carlo Pelanda

Sept. 2007






India: Future Ally or Foe?





††††††††††?In renowned scholar and foreign affairs consultant Carlo Pelandaís book The Grand Alliance, he paints a vivid and realist picture of current and future international relations with the existing world superpowers in comparison to China. According to Pelanda, China must be contained and democratized because it has evolved into a major player in the global economy, but nonetheless still practices brute ruffian-like tactics against its citizens (Pelanda 173). Pelanda suggests the formation of a Grand Alliance or geopolitical system made up of many nations in order to confront the issue of China (13). By opening economic borders, displaying a political willingness to trade, but also keeping China contained through currency convergence and other economic tactics, the Grand Alliance can hope to either force China to change its political system or be isolated. This would be done in an attempt to further shape the global economic model and avoid economic implosion as a result of internal disorder (174).

††††††††††?Having established this, who are the major players in this Grand Alliance? Pelanda lists the United States, European Union, Japan, Russia, and India as the core of the Alliance. But what incentives do these countries have to join, specifically India? Pelanda simply states that Indiaís future trajectory will be an ambitious mark (68). In my paper, I plan to project what Indiaís future trajectory will be and what part they will play in the alliance.

††††††††††?India is rapidly emerging as a regional and global power. It has the second fastest growing economy of the nineties next to China (Raj 61). Formally a British colony, India has evolved into the worldís largest democracy with an operational federal form of government and bicameral parliament (61). While in the past fifty years India has received necessary foreign aid from the United States and Europe, India largely remains a country dedicated to a strong policy of non-alignment (29). Non-alignment being defined as a nation-state or bloc of nation-states not formally aligned with or against any other bloc of states. Non-alignment in India has led to some minor friction with other superpower nations and continues to dictate Indian politics, but overall India has largely been impacted by the west and has heavily flirted with western political culture and ideas (Pelanda 69).?

††††††††††?While still a smaller power in the nineties, India made economic liberalization and reform a major priority. A first wave of economic and policy reform in the eighties helped the second wave to gain momentum. However, it was the strong second wave of policy reform and economic liberalization that helped to strengthen and sustain Indiaís economic and political success until the present day (Raj 61). The reduction of custom duties, devaluation of currency, and elimination of controls on private investments all contributed in making India a major Asian regional power. In addition to this, making Indiaís economic system more transparent and clear garnered the attention of major interest groups and stakeholders, thus expanding Indiaís middle class (Raj 62).?

††††††††††?Despite all of Indiaís success, it still lacks a sound infrastructure. This is because India has an economy driven by electronics and that industry does not require solid infrastructure (Pelanda 68). However, a good infrastructure is necessary in order to produce solid human capital and resources in the long term. Human capital defined as a general or stock set of skills associated with a single worker. However, considering Indiaís non-alignment and slightly isolationist stance, what would prevent them from solely building up their own infrastructure? What tangible benefits can the Grand Alliance give India and should India even make the Grand Alliance a priority?

††††††††††?Yes, India should definitely make the Grand Alliance a priority. In addition to contributing large sums of foreign aid and investment to India, the Alliance has several other benefits to offer India and in the long term, a relationship with the Alliance will lead to a more prosperous future for India. India has powerful electronics and technology industries, specifically the IT services sector, which includes the software and communications realms. However, many of the people working within these sectors have been educated and trained overseas. Indiaís infrastructure needs stronger human and social capital in order to build itself up.

The Alliance comes into play by contributing to Indiaís unsound infrastructure. By converging in a matrix-like alliance with a political and economic body that has a solid monetary pillar in the form of its currency, India can hope to reap great benefits from the external effects of communication and information flows between human and social capital (Raj 68). A workerís productivity is not only contingent upon his or her personal skills and knowledge, but also his or her co-workers?skills and productivity. In order to sustain economic growth, a country must enter into long term economic and technological relationships with multiple partners that are equal if not stronger than them. For example, the basic interaction and knowledge currents within economic arenas such as Wall Street or the Square Mile enhance human capital for all parties involved. This is because the acquisition of skills and knowledge accumulation that is obtained from interaction with different ?/span>partners and their human capital bases will act as aids in assisting production and wealth accumulation in the home countryís base (71). Subsequently, all parties involved in the partnership receive benefits due to the effects of larger scale production and the exportation of knowledge (72).

††††††††††?Considering Chinaís amazing growth rate and large population, maintaining a relationship with the Chinese is still very advantageous to India. In addition, China is in closer approximation to India and right now the biggest regional power within Asia. Understanding that India is a nation that sticks to a non-alignment policy, the Indian government will not want to openly provoke a negative response from China. Instead, one could believe that India would play up itís neutrality and move away from blatant alliances. Nevertheless, if European and American convergence serves as the solid base of the Alliance, the Alliance will be a stronger global power than China. India, as a democracy, could lose its fear of excessive ties (Pelanda 135). However, Indiaís inclusion with the Alliance is implicitly linked to the nature and legitimacy of a Euro-American convergence. If the convergence is despised and viewed as illegitimate amongst the international community, India might have a harder time identifying the advantages of the Alliance.

††††††††††?In conclusion, I predict that in Indiaís future trajectory, the government will choose to build up new relationships with different countries, specifically China, but also maintain and heavily harden the ties that initially spurred their growth. And western foreign aid and money greatly helped India in the eighties and nineties during its vital growth periods. I predict that India will try several innovative and creative approaches to solicit more economic growth and build their infrastructure. Moreover, India will have to be wise and make conscious decisions in order to sustain their current growth period into the long term. Understanding this, the mechanisms of strong human and social capital can provide the fuel to compensate for any diminishing returns in physical capital in the future. But those capital bases can only be so strong without the Grand Alliance. Joining a matrix-liked Grand Alliance will overall be more beneficial for India because they will be included in an economic and political federation that can not only provide for them, but is well equipped and powerful enough to handle future global threats.??/span>?/span>




Works Cited




††††††††††?Pelanda, Carlo. The Grand Alliance. Milano: FrancoAngeli, 2007.



Siddiqui, Anjum. ?st1:place w:st="on">Indiaís Economic Growth Miracle in a Global Economy.?

††††††††††??/span>?/span>India and South Asia: Economic Developments in the Age of Globalization

††††††††††††?Baldev Raj. New York: M.E. Sharpe, 2007. 61-89.?