United States Economic Interest in South Asia

unify States sparing Interest in S proscribedh AsiaAfter the Cold War, US emerged as the sole super proponent in the world. It started establishing military bases in all surface areas around the world. Central Asia, S forthh Asia, Middle eastern hemisphere and East Asia ar the regions which waste their own peculiarities. South Asia due to its presence along Indian sea, proximity to oil rich Central Asian States, nuclear rivalry amongst India and Pakistan and its neighbourhood with Afghanistan has peculiarities and strategical importance which US could not ignore. Resultantly, especially after 9/11, US entered this region in the garb of war on act of terrorism and engaged both Pakistan and India in strong strategic relationship.Emergence of China and India in the region as economic powers has attracted the world powers. This paper pull up stakes enterprisingness to highlight US economic interest in this region to gain hegemony in the Indian Ocean, maintain presence in oil rich telephone exchange Asia, check Chinese influence in South and Central Asia and Indian Ocean, continue its war on terrorism in Afghanistan and bring political stability, watch flow of oil from Persian Gulf, and gain control of Sea Line of Communications in the Indian Ocean. After identifying and analysing US economic interests in particular, current recommendations would be proffered for South Asian countries so that we should not fall prey to the great game of the super power.Problem StatementEconomic affairs fox assumed a greater importance under the prevalent environments of uni-polar world, where major powers argon expression for new markets. South Asia is one of the biggest and most lucrative consumer markets. appear economies of India and China has given special status to this region. Resultantly, US economic interests in the region buzz off change magnitude its manifold.Foregoing in view, carry out an in depth study of US economic interest in South Asia, its impl ications for the region and offer recommendations for regional democracys to safe guard their economic interests.BackgroundEconomic world(a)ization involves arguably the most fundamental redesign and centralization of the planets political and economic arrangements since the Industrial Revolution. Despite the scale of the global reordering, incomplete our educational institutions nor the mass media cede made credible drift to describe what is creation formulated, to explain its root philosophies or to explore the multidimensionality of its effect on out society and economy.The occasional descriptions or predictions about the global economy and scarcely the US interests highlighted have found place in the media. Hissing sound is comprehend from corporate leaders, their allies in high levels of government and newly powerful centralized global trade bureaucracy. The vision they offer us area unfailingly positive, even utopian. Globalization i.e by increasing US ingress in our ec onomy will remain to be a panacea for all our ills.Sri Lanka identical the other third world countries confronts a major dilemma today regarding its deplorable economic conditions internally and trying to keep her relevance in the charging economic climate of South Asia. Growing US interest in the region is in fact the food for thought for Sri Lankan think tanks.Purpose of StudyThe exploitation US interest in India is to be viewed deliberately and at the same time its effect. Thus clear shift from Geo political/ strategic to Geo economic is evident on the map of South Asia. Study thus seeks to analyze the affect of growing US interests in the region and Sri Lankan stance beingness relevant to the ever-changing US economic interests in South Asia.chapter twoSignificance of the StudyIn todays world, power is not solitary(prenominal) depending on a countrys might in her Military. The economic stability and sustainability also plays a magnificent role. Its vitally important not onl y for the countries who are big in population or in geographical area, but in those countries who are small in size of land in equipment casualty of population. The geographic location where the country lies does play no lesser degree.The research topic revolves around the poorest regions in the world and has millions of middle-class citizens. Plagued by low levels of literacy, its nonetheless produces distinguished scientists, artists and professionals. Contains an awesome and bewildering diversity of languages, religions and ethnicities, but is remarkably cohesive in terms of physical environment and natural resources. The countries share rivers, mountains systems, oceans and ecological cycles such(prenominal) as the life-sustaining mon short rains. The states of the region have their share of disputes, along with deeply shared cultures and history. The prospect of a new departure in South Asia US relations must(prenominal) be set against a past often burdened by mistrust and s harply different objectives. During most of the post domain of a function War II period, US ties with India and Pakistan, the regions two powers, vacillated betwixt close embrace and uneasy distance. The US interest in the region has lift and fallen same has been viewed with a new dimension i.e the economic dimension of the US in the South Asian region.Before taking any farther into the methodology and the problem statement it is worth mentioning the US economic interest in South Asian Countries specific.AfghanistanPresent Aims Of US. In Afghanistan effort to transform what had change state one of the worlds principal sources of instability into a secure and prosperous country. Steps which intact fill the Geo Political aims of US are- make of the country and the society.Loya Jirga has been institutionalized.Rebuilding the countrys infrastructure, education, health systems and security forces.Forward-looking economic policies.US has already provided over $2 billion in financia l aid to Afghanistan and will be providing an additional $2.2 billion more during this stratum.Training Afghan army, police forces US and other allies are also building a network of Provincial reconstructive memory Teams to help provide local security and coordinate development and reconstruction while easing the transition to civilian rule.Efforts to demilitarize and demobilize militias1.BangladeshBack Ground. US and Bangladesh have been close friends and partners since 1971. Today the stakes are great experts estimate that by the year 2025, there will be over 200 million people in Bangladesh and over 25 million people in Dhaka alone. Thus demographic challenges are of a great concern to a developing nation.US Investment and Concerns. At $1.3 billion, the US is Bangladeshs biggest foreign investor. The concerns of US while investing are-Privatization, trade diversification, deregulation, financial sector reform, and major infrastructure investings are essential to reverse the de clining foreign investment trends and achieve steady economic growth.Corruption and poor governance.US has increased its assistance to Bangladesh for promoting democracy and good governance and combating corruption to over $8 million in Fiscal Year 2006.The hub of Population remains an draw play with availability of cheap and proficient labor.As per Vishal, USA Bangladesh can seek a lot tech help from bigger partner USA and in turn send technical man power to the States?2.Bangladesh is sitting virtually on oil?3.Bangladesh Interests. Few of the analysts believe the US hot seats one day vindicate to the country is extremely important with the oil and gas reserves likely to be tapped. Bangladesh interests remain with US as-Aid oriented with investment in basic infrastructure.Human resource development?.China4. Chinas entry into the WTO, makes the deal sound like a sure-fire winner for US workers. In particular, the deals supporters signal that expanded trade relations with China will lead solely to more exports to China. A closer look at the US governments own information reveals following-China trade agreement under WTO and with US will be of greater capital mobility into China.US multinationals eager to deliver goods and services to the Chinese market as 1.1 Billion population market.Produce goods cheaply that can then be exported to the US and other markets.ResultsGrowing US trade shortage with China.Growth of US multinationals and direct foreign investment i.e 10% increase in US direct investment in China.7.3% increase in the account book of imports from China and a 2.1% decline of US exports to China.Surge of investment by US firms in China and the US trade deficit with China.Import challenger from China involves different industries than in the past.Job losses seen by analysts in US markets thus a technological shift to the populous pole of the world.IndiaIndo-US traffic Since 1991. India and the US have multi faceted relations ranging from polit ical, strategic to economic and commercial. India-US economic relations in the form of zygomorphous investments and trade constitute important elements in India-US bilateral relations particularly because India is now the second fastest growing economy in the world and USA is the worlds largest economy. Economic Reforms introduced since 1991 have radically changed the course of the Indian economy and led to its gradual integration with the global economy. Benefits of the reform process are-Better growth rates, higher investment and trade flows and accelerated decline in income scantiness.USA is the largest investing country in India in terms of FDI approvals, actual inflows and portfolio investment.US investments cover almost each sector in India, which is open for private participants.Indias investments in USA are picking up. USA is also Indias largest trading partner.By 2003, India became the twenty-fourth largest export destination for the US.Since 2000, the two countries have been making efforts to strengthen institutional structure of bilateral economic relations by means of the India-US Economic communication? that aims at deepening the Indo-American partnership through regular dialogue and engagement?5.The Strategic Economic Dimension of the US-India Relationship. India-US relations have seen a remarkable displacement over the last decade. The recent bilateral visit of Prime Minister to Washington from November 22-26, 2009 as the first State Guest of president Barack Obama has reaffirmed the global strategic partnership between India and the United States. The two leaders have reaffirmed that the common ideals and complementary strengths of India and the United States provide a foundation for addressing the global challenges of the twenty-first atomic number 6 and resolved to build on these to expand the U.S.-India global partnership for mutual benefit.It emanates from reformed and global Indian economy. Key contributors so as the US takes full ad vantage are6-Economy. US and India are expanding cooperation to enhance job creation and economic growth support economic reforms and liberalization develop a bilateral business climate supportive of trade and investment and improve market access for goods and services.Trade. Over the last vanadium years, US exports to India have more than doubled, lot to create better-paying jobs in the US. The US and India agree that trade is essential to promoting global economic growth, development, freedom, and prosperity. Both countries are committed to completing the WTO Doha Development schedule before the end of 2006.Investment. The US and India have agreed to hold a high-level public-private investment summit in 2006 and are continuing the dialogue on further liberalization of investment restrictions, regulatory transparency, dispute settlement, reducing tariff and non-tariff barriers to trade.Agriculture. The US and India have launched the Knowledge Initiative on agriculture to link un iversities, technical institutions, businesses to support high-priority joint agriculture education, research, capacity-building projects and biotechnology. The joint declaration made in New Delhi during president Clintons visit i.e. India-US Relations A Vision for the 21st century incorporates two important statements- Natural partnership of shared endeavours and more importantly that In many ways the character of the 21st century will depend on the success of our cooperation for relaxation, prosperity and democracy and freedom. Peace, prosperity, democracy and freedom cannot be secured by rhetoric, as has been the Indian experience. These can only be secured by rhetoric, as has been the Indian experience. These can only be achieved through politico-strategic initiatives with the strategic predominating. The Vision of India-US relations, jointly seen, should therefore, logically incorporate the development of a strategic partnership, prompted by the imperatives discussed about. P resident Clintons visit to India, it is hoped heralds the advent of the inevitable.7.Importance of Indian American Joint Venture. Today, Indian-American and Indian investors enjoy a very influential presence in Washington, secernate areas being-Wall Street/Media. Some 2 million people of Indian origin are in the US wall way/media business.Indian Students In US. There are over 85,000 Indian students in the US more than from China.Benefits To Indian Populous. US trade and investment with India is only 10 share of what it is with China, this is changing to the benefit of Americans and Indians through increased opportunities in India for American trade and investment. Polls in India show a notable 75 percent favorable view of the US.Out Sourcing. While outsourcing has become a controversial issue, the US actually enjoys a healthy surplus in trade in services with India. In 2004, US exported $4.6 billion worth of services to India, a surplus of $1.8 billion.Trade Growth. $16 billion in two-way trade in 1998, US-India trade has grown to $26 billion in 2005 US exports, now at approximately $8 billion, grew almost 30 percent last year and is expected to continue further.Strategic Sale Agreements. Boeing has sold almost $15 billion in new aircraft to India and two US airlines have opened non-stop routes to India. airport privatization is underway and the air transport market has grown by close to 40 percent in the past year.Indias Energy Needs. India is a nation of 1.1 billion people. With its rapid economic expansion, it has a massive and rapidly growing appetite for heftiness and is already the worlds sixth largest consumer of goose egg. US-India Energy Dialogue, aimed at strengthening energy security and promoting the development of stable and efficient markets in India. US India Civil Nuclear Cooperation Initiative. Civil nuclear cooperation with India will elevate the US-India relationship to new high gear8.The IT Sector Of India. This sector has its fol lowing linkage with the growing US interests-Compounded Growth. 50 percent since 1991.Soft Ware Requirements. Today, nearly two in five of the fortune 500 companies outsource their IT requirements to India.IT Sector Collaboration. Especially, in areas like-Communication infrastructure.Optic fiber cable and gateways.Satellite-based communication wireless.IT-enabled services and IT enable education.Data centers, master of ceremonies farms and software development?9.Future Prospects in Economic Investment. There are several areas where economic cooperation between India and the US can progress further. These include -Infrastructure.telecommunication sector.Energy, knowledge based industries such as pharmaceuticals and biotechnology.Investor friendly environment in sectors such as roads, ports and airports.Private sector participation in management, Build manoeuvre and Transfer (BOT) projects, green-field airports, terminals, shipping berths and capacity augmentation have been initiat ed.Security Science Related Economic Interests. The US and India are building the foundation of a durable defense relationship to support their common strategic and security interests which include-Maritime Security Cooperation. The US and India are committed to a comprehensive cooperative effort to ensure a secure maritime domain.Counterterrorism. The US and India are jointly expanding the scope of counterterrorism cooperation, including work on bioterrorism and cyber security.Military Logistics Support. The US and India will soon sign an agreement to facilitate mutual logistic support during combined training, exercises, and disaster relief operations.Defence Trade. The US reaffirmed its goal to help meet Indias self-denial needs and to provide the important technologies and capabilities that India seeks.Non-Proliferation. Both countries support efforts to limit the spread of enrichment and reprocessing technologies.Intellectual Property Rights (IPR). The US is funding IPR trai ning programs to strengthen enforcement and patent examination, as a vibrant IPR regime is critical to the promotion of a creative, technologically advanced economy.Science. The US and India established and co-fund the $30 million Bi-National Science and Technology agency to generate collaborative partnerships in science and technology.Space. The US and India have agreed to continue exploring further cooperation in civil space, including areas such as space exploration, broadcast navigation, and earth science?10.US Presidents George W. Bush Visit To IndiaWe have an ambitious agenda with India. Our agenda is practical. It builds on a relationship that has never been better. India is a global leader, as well as a good friend. My trip will remind everybody about the strengthening of an important strategic partnership. Well work together in practical ways to promote a hopeful future for citizens in both our nations?11.President George W. Bush, February 22, 2006The Evolution of U.S.- Indian Ties Missile Defense in an acclivitous Strategic Relationship,12Maldives and Bhutan21. Maldives is an Islamic Island nation where US have a close eye on its location being on the mouth of the Indian Ocean. East of Nepal between India and China is a small country Bhutan. US interest being to democratize the state. US is also involved in settling the problems of refugees between the two states i.e Nepal and Bhutan. Over all the US involvement remains more of humanitarian assistance13.Nepal22. Back Gr. US enjoys warm relationship with Nepal for over 50 years. During this period, Nepal has evolved from a closed, monarchy-dominated society into an emerging democracy with growing economic opportunity. US has contributed $1 billion to improve the lives of the Nepalese people. Nepal also happens to have a key place in the eyes of the west with the likely interests emerging as under-Peace and stability in South Asia.Nepals independence and territorial integrity.US also has significan t strategic interest in the country because of her location.Washington supports economic and technical assistance to Nepal?.23. US Investment Areas in Nepal. Mainly being-Assistance programs for democracy, governance and conflict mitigation.US assistance to strengthen the Election Commission, Peace Secretariat, National Human Rights Commission and corruption ombudsman.Broaden participation in political parties and make them internally more democratic.Technical assistance and equipment to the Parliament / aid to a constitutional reform process.Assisting reintegration of internally displaced persons and funding election monitors. labour economic recovery especially in rural areas.PakistanPakistan and India Concerns US. Indeed the most common concern for an investment friendly climate stems out of the security concerns of the region as stated-US ex Secretary Powell calls a triangle of conflict resolution. He says We do not seek to call ourselves as a mediator. Instead, we try to use t he trust we have established with both sides to urge them toward reconciliation by peaceful means the leaders of both countries deserve enormous credit for the statesmanship they are demonstrating and for their determination to turn their historic confrontation into opportunities for all of their people. Although the road ahead is certainly challenging, we are starry-eyed that both sides want to keep up the momentum generated by their recent more open interaction and sound climate for over all peace in the region14.The Latest Perception Of US. Recent visit of US President defines US interests as under-Five years ago, Pakistan was one of only three nations that recognized the Taliban regime in Afghanistan. That all changed after September the 11th, 2001. President Parvez Musharraf understood that he had to make a fundamental choice for his people. He could turn a blind eye and leave his people hostage to terrorists, or he could join the free world in fighting the terrorists. Preside nt Musharraf made the right choice, and the United States of America is acceptable for his leadership. Pakistan now has the opportunity to write a new chapter in its history, and the United States want to build a broad and lasting strategic partnership with the people of Pakistan15.President George W. Bush, February 22, 2006Pakistan US Collaboration. The areas of collaboration are-War On TerrorFight Terrorism. The US and Pakistan have cooperated closely in the common fight against terrorism, including along the Afghanistan-Pakistan border.Al Qaeda Hunt. Pakistan has captured more than 700 al-Qaeda operatives, facilitators and associates since September 11, 2001.Pakistans Military Role. Playing an important role by providing intelligence and support to Coalition forces operating along Afghanistan.Security /Military Hard WareLargest Security Assistance. Pakistan is one of the largest recipients of US security assistance.Foreign Investment. The United States has pledged $1.5 billion of Foreign Military financing to Pakistan from 2005-2009.Sale Of Advanced Systems. The United States supports Pakistans defence needs through sales of advanced systems.Sale Of F-16 origin Craft. Move forward with the possible sale of F-16 fighter aircraft to Pakistan.Non Nato Ally. In June 2004, President Bush designated Pakistan as a Major Non-NATO Ally, making Pakistan one of a make out group of nations outside of NATO that have the benefit of a variety of military and financial advantages.Trade And InvestmentUS Encourages Economic Prosperity. By supporting increased trade and investment linkages with the US, the region and the global economy.Bilateral Investment Treaty. Has sent a strong signal about Pakistans improving investment climate.Institute Reconstruction Opportunity Zones (IROZs). That would assist desperately poor border regions of Pakistan and Afghanistan to grow and diversify economically.Private Sector Involvement. Enhancing our capacity-building assistance to stre ngthen private sector competitiveness . didacticsEducational Assistance. US has provided more than $130 million to strengthen education programs for young people and adults over the last four years.Bilateral Educational Dialogue. US and Pakistan will establish a bilateral education dialogue to enhance US-Pakistan educational cooperation?16.Influence Of Regional Countries On Pakistan US Ties. Pakistans ties to other nations in the region are steadily growing with likely US investment, with rail, bus, and energy pipeline connections to several nations. Same will act as an antidote towards extremism?17.Chinas Influence. If China gets stronger than it already is, it will be a problem for the US,? said Bordonaro, adding that the Chinese could use Gwadar, the port city in the Pakistani province of Baluchistan which is being developed with Chinas help, to counter Indias efforts to dominate the Indian Ocean and the Arabian Sea?18.US commitment since 2003. At the June 2003 meeting at Camp Da vid, President Bush made a commitment to develop with Pakistan with a long-term, broad-based partnership worth 3 billion dollar .The areas of interest include-Shared interests in promoting prosperity, peace, security, mutual understanding and tolerance in the region / across the globe.Strengthen cooperation on counter-terrorism and security including striking at the conditions that give rise to extremism and terrorism.Address poverty and hopelessness root cause for terrorismCooperation aimed at fostering expanded commerce within the region including with Afghanistan and Central Asia.Booming Market. Most of the American companies in Pakistan currently have plans to expand their operations in the near futurea booming market of 160 million people and also as a latent hub for regional trade and transportation? .Sri Lanka29. Present Environment. Since 2009, May 19 Sri Lanka has rid off from the war, which was waging for 3 decades with Sri Lankan armed forces and Tamil minority. The pres ent President has been elected for the second term of 6 years. Countrys development and re-settlement of internally displaced people is the key issues and challenges the government facing. At present the world looking at Sri Lanka with lots of allegations on humanitarian grounds and violation of humanitarian law. Some pointing the finger at the government while others are pointing it to the armed forces of the country. Rajapaksa must give aid organizations access to hundreds of thousands of uprooted Tamils in the islands northeast. Overwhelmed doctors in overcrowded camps are amputating limbs without sufficient drugs and medical supplies. The people in those camps desperately need medical care, food, and water. And they should be dispense withed to descend to their homes as soon as possible.30. Ultimately, the only way for Sri Lanka to avoid another Tamil rebellion is to grant the Tamils some form of local autonomy in their region. Now that the Tigers have been crushed, the Sinhal ese majority of Sri Lanka has no excuse for not addressing the legitimate grievances of the Tamil minority?19.a. Internal Problems And Tsunami Relief. Sri Lanka with a broader range of governments to focus on the Tigers financing and arms procurement. US Government is providing assistance totaling $134.6 million for tsunami-related relief and reconstruction in Sri Lanka.Methodology31. The study will be carried out in reviewing the data sources which are available in the internet and the few resources available in the libraries.Chapter threeLiterature Review32. Since this topic is very hypothetical, its data and material review is mainly based on internet. The author, in the course of research, has made an endeavour to find relevant data through non-homogeneous sources including books, periodicals, lectures by professors of Different Universities of Management and Sciences. The detailed guideline provided through sponsors Directing Staff of the Defence Services Command and Staff Col lege. The author is extremely grateful for all those who spared their valuable time to contribute on this work. As mentioned earlier the new found aid is of broad help in formulating the paper i.e The earnings?.Chapter fourIMPLICATIONS OF US INTERESTS IN THE REGIONFollowing areas of interest emerge quite pronounced-Diversify Energy Supplies. Persian Gulf oil resources have remained a major source of energy supplies. US consider it of vital interest to secure access to the Central Asian regions energy corridors in order to reduce dependence on Persian Gulf20.Oil/Gas Reserves in Caspian Basin. The Caspian Basin has an estimated US$5 cardinal of oil and gas resources. Transporting it through Russia or Azerbaijan would greatly enhance Russias political and economic control over the central Asian republics, which is precisely what the west has washed-out 10 years trying to prevent. Piping it through Iran would enrich a regime, which the US has been seeking to isolate. Thus, Afghanist ans significance stems from its geographic position as a potential transit route, from Central Asia, through Pakistan (Gwadar port), into the Indian Ocean and further to the Arabian Sea21.Penetrate Worlds Most Lucrative Markets. Pipelines through Afghanistan would allow the US both to pursue its aim of diversifying energy supply and to penetrate the worlds most lucrative markets. In south Asia, by contrast, demand is booming with immense population graph and competitors are scarce. Therefore, pumping oil south and selling it in Pakistan and India, is far more profitable than pumping it west and selling it in Europe22. domination over the Transit Routes/Crucial Sea-Lanes. With the increased importance of Central Asian oil reserves, moving through the Indian Ocean, importance of securing the SLOCs in the Indian Ocean have increased manifold. US intend to maintain a strong security presence in the South Asian region in cooperation with India as bigger role is expected by her in the reg ion23.India A Strategic Partner. As the second most powerful military nation in Asia, US perceive India as an ideal strategic partner. During official visit to Washington, Prime Minister Vajpayee describe India and the US as natural allies and importantly stressed that an Indo-US partnership was important for Asia both economically and militarily?24.China A Competitor, Not A Strategic Partner?. President Bush has described China as a competitor, not a strategic partner?. Therefore, his administration is sympathetic to Indias ambition to play a big power role in Asia. He also said that we must deal with China without ill-will but without illusions25.Regional Power Through US Collaboration. Recent developments suggest that India is actually inviting the superpower to its doorstep. India is among the few countries to endorse unconditionally the controversial US national missile defense (NMD) program26.Indian Ocean or Indias Ocean. Sixty-seven percent of Chinas trade with the European Union is carried by sea across the Malacc