Economic Relations

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  • Pakistan-Afghanistan Relations: Stablizing Politics Through Economics

    The discourse on Pakistan-Afghanistan relations has usually centred on the political strategic dimensions of their relationship. This is not surprising given the acrimonious association between the two countries. Yet it is interesting to note that even against the backdrop of mounting tensions due to the deepening insurgency in Afghanistan, there has been unprecedented growth in economic activity between the two countries. This article explores the magnitude of economic relations between Pakistan and Afghanistan, and the potential that has for impacting political relations.

    March 2008

    The China-Pakistan Strategic Relationship: Trade, Investment, Energy and Infrastructure

    The traditional Sino-Pakistan friendship of 55 years now has a new objective—to improve the economic content of their relationship, which comprises trade, investment and energy co-operation within a bilateral framework. The result of this determination to implement the new economic agenda is visible in the quantum of Chinese investment in Pakistan.

    September 2007

    Indo-US Business Relations: Setting new records

    With the passage of a year since the visit of President George W. Bush to India, it is the business communities of the two countries that have benefited the most from the momentum created by the upsurge in Indo-US relations. While two-way trade and investment had been growing at a steady clip, the announcement and subsequent passage of the Bill on Co-operation in Civil Nuclear Energy, intended to remove the last vestiges of the adversarial relations between the two countries, have taken business relations to a new level.

    March 08, 2007

    India and Russia Need to Deepen Economic Relations

    The recent meeting of the Indo-Russian Business Co-operation Council and the Trade and Investment Forum in New Delhi was significant, in that it took place after the recent summit-level talks between the two countries. This symbolises the fact that both countries assign considerable value to increasing bilateral trade and economic co-operation.

    March 07, 2007

    While China Scrambles Africa Builds Hope

    While commemorating 50 years of China's diplomatic ties with Africa, the China-Africa Summit, held on November 4-5, 2006 adopted a three-year action plan to deepen the existing political and economic links. This Summit, being one of the largest summits ever hosted in China's modern history, not only reflects the importance China places on its relations with Africa, but also clearly illustrates the value that the continent now attaches to this emerging Asian power vis-a-vis the West.

    November 09, 2006

    India-South Korea: The State of Affairs

    The India-South Korea bilateral relationship is a remarkable example of how trade is the primary driver in global relationships. Ideology, which marked international relations in the previous decades, has given way to trade - which now is the international marker for relations. An important watershed in the relationship will be the beginning of construction for the POSCO integrated steel plant, which is slated to begin in April 2007 and would constitute the single largest foreign investment in India at US$ 12 b.

    September 22, 2006

    Africa and China: A Strategic Partnership?

    Relations between Africa and China have increased over the year and become more dominated by China’s economic interests. With an annual growth rate of 8-9 per cent , and a booming economy, China’s dependency on accessing natural resources is a top priority and has accordingly expanded its horizons. Africa, with all its seemingly unlimited natural resources, is an ideal partner. In addition, the African continent as a whole offers a potential market for china’s low value manufactured commodities.

    July 2006

    Time to Samba

    Samba is a traditional Brazilian dance. No one form actually defines the samba; it is a set of different rhythmical dance forms. To me what India and Brazil are attempting to do is metaphorical of trying to samba. Both countries are regional powers; and though very different they are yet attempting to achieve much the same in terms of national aspirations. India and Brazil have begun to understand the inevitability and worth of collaboration in all international and bilateral fora. The Indian business community has also begun to end its benign neglect of the South American continent.

    May 25, 2006

    Bangladesh and the TATA Investment: Playing Politics with Economics

    The TATA investment of US$3 billion in Bangladesh, by far the largest foreign investment in the country, has run into rough weather over the pricing of gas. Dhaka rejected Tata's initial 2004 offer of $1.10 per unit of gas to be supplied over a twenty-year period, seemingly favouring the price to be at par with international prices. As per the new proposal submitted in April 2006, the price that Tata has offered is $3.10 for thousand cubic feet (MCF) of gas for its fertiliser plant and $2.60 per MCF for its proposed steel plant.

    May 11, 2006

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