Tuesday March 19, 2019
Home India India China r...

India China rivalry shifts to Africa

0
//

By Harshmeet Singh

One can’t help but think of a possible ‘Chinese angle’ behind India’s offer of a $10 billion credit to the African nations. The reasons are plain and simple. Ever since the two Asian giants embarked on a crescendo of economic growth, the battle for monopoly over the resource-rich African continent has come out in the open. Apart from the vast proven reserves of oil and gas, the world’s second largest continent also boasts of enviable deposits of uranium, gold, silver, diamonds, copper and iron. Though China has denied any rivalry with India on the African issue, it would be naïve to believe that there isn’t more to it than what meets the eye.

With a continuously rising population and rapidly depleting natural resources, Africa’s relatively underutilized mineral wealth is a key attraction for many industrialized nations across the world. Though countries like USA and Japan have also tried to get a piece of the cake, China and India seem to be the front-runners in the race for becoming Africa’s closest partners in the coming years. In terms of numbers, China has the upper hand. With a $200 billion investment in different African nations, China has firmly placed itself as the foremost ‘well wisher’ of Africa. In comparison, according to WTO, in 2013, India’s investments in Africa touched $50 billion. Apart from the investments in infrastructure, China has also offered assistance to the African nations in the areas of education and training. The magnitude of such assistance far outnumbers India’s efforts.

The numbers in bilateral trade also highlight a similar story. The African-Chinese bilateral trade stands at $108 billion, as compared to the Indian African trade of $40 billion. But smartly enough, India isn’t trying to compete with China on the economic front. It has rather taken up the cause of capacity building and human resource development in the African nations, thereby fostering the people to people connect between India and Africa.

Over the past 5 years, more than 25,000 students from the African countries have been given higher education scholarships in India. Indian army also trains officers from many African nations, such as Lesotho. India is also offering its expertise in solar energy to countries like Mozambique, to help the country tackle its power woes. Underlining India’s strategy, the Ethiopian Prime Minister Meles Zenawi said, “The key area of interest is going to be the Indian investment in infrastructure. The government of India is giving a significant amount of resources for the development of infrastructure in the African continent. They have given us (Ethiopia) $700 million in concessional loans. India could have used this money for its own people. But this is indicative of the quality of special relations between India and Africa,” In many ways, the battle for Africa can be termed as a battle between China’s economic might and India’s soft diplomacy.

The African leaders, on their part, are basking in the new found limelight. With assistance flowing in from all sides, they are trying their best to keep both the Asian giants happy for as long as possible. This was reiterated by Katureebee Tayebwa, a member of the Ugandan High Commission in New Delhi, when he said that, “We [Africa] are happy that there is intense competition between India and China to gain African markets.”

 

Next Story

U.S. Notifies World Trade Organization Against “Discriminatory” New Taxes on Digital Giants

The OECD is spearheading talks aimed at forging a new global agreement on taxing technology and digital giants who often declare their income in low-tax nations, depriving other countries of billions in revenue.

0
WTO
World Trade Organization (WTO) headquarters in Geneva, Switzerland, July 26, 2018. VOA

The U.S. is weighing a complaint at the World Trade Organization against “discriminatory” new taxes on digital giants such as a Facebook and Google which are being planned by France and other EU nations, a top US trade official said Tuesday.

“We think the whole theoretical basis of digital service taxes is ill-conceived and the effect is highly discriminatory against US-based multinationals,” Chip Harter, a Treasury official and US delegate for global tax talks, said in Paris.

social media
But that overhaul is expected until next year at the earliest, prompting France, Britain, Spain, Austria and Italy to move ahead with their own versions of a so-called “digital services tax” as soon as this year.
Pixabay

Speaking ahead of two days of talks at the Organization for Economic Cooperation and Development (OECD), Harter added that “various parts of our government are studying whether that discriminatory impact would give us rights under trade agreements and WTO treaties.”

The OECD is spearheading talks aimed at forging a new global agreement on taxing technology and digital giants who often declare their income in low-tax nations, depriving other countries of billions in revenue.

But that overhaul is expected until next year at the earliest, prompting France, Britain, Spain, Austria and Italy to move ahead with their own versions of a so-called “digital services tax” as soon as this year.

social media
The OECD is spearheading talks aimed at forging a new global agreement on taxing technology and digital giants who often declare their income in low-tax nations, depriving other countries of billions in revenue. Pixabay

Last week France unveiled draft legislation that would set a 3.0-percent levy on digital advertising, the sale of personal data and other revenue for tech groups with more than 750 million euros ($844 million) in worldwide revenue.

It would be applied retroactively from January 1, 2019, while the measures in the UK and other European countries might not come into effect until next year.

Also Read: Auto History Museum Displays One Of General Motors’ First Self-Driving Test Vehicles
“We do understand there’s political pressure around the world to tax various international businesses more heavily, and we actually agreed that that is appropriate,” Harter told journalists.

“But we think it should be done on a broader basis than just selecting a particular industry,” he said. (VOA)