Tuesday September 7th 2010

Stumbling Tiger, Leaping Dragon?

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YY_tiger_dragon.228235206_stdYou don’t have to be a foreign policy hawk to be disconcerted by the surging gap between and . We in think that we are the equal of and that in the decades to come we will surpass it in national power – when actually the opposite is a more likely future. Power is of course not everything in international relations, but to ignore a massive power differential is strategic blindness. At the very least, must consider its choices as it confronts the widening gap with .

What is the ratio of national power and living standards between the two countries? ’s today is four times that of . In addition, Chinese per capita is roughly $4,000, ’s is $1,000. The average Chinese therefore lives four times better than his Indian counterpart. In fact, this is an underestimation of his relative well-being because educational and health facilities make his life chances better still. If the two countries continue to grow at the rates they have grown in the past decade ( at 6-8 per cent and at 10-12 per cent), will have an eight times ’s in 30 years.

What does this mean for international relations? We could express the difference in various ways, but let us simply cast a comparative eye on the question. For it to hit home, let us note that by 2040 will be to as is to . And that may be an optimistic judgment about the gap. In the January/February 2010 issue of the US journal, Foreign Policy, Nobel Prize-winning economist Robert Fogel predicts that by 2040 will have a of $123 trillion and 40 per cent of world output (the US will be next with 14 per cent!). At this point, will be the most powerful entity on earth by far, as it has been for 18 out of the past 20 centuries of world history (chancellor of Oxford University Chris Patten’s estimate). Even if this is an exaggeration, the Chinese dragon will be so big that the rest of the world will have to gulp several times before it says no to Beijing.

Critics of this triumphalist view cite any number of things that could go wrong. There is apparently a huge list of potential catastrophes awaiting : financial bubbles, an ageing population, regional disparities, growing inequality, ethnic and religious disaffection, environmental collapse, resource scarcities, bad governance, hypernationalism, unchecked populism and so on. Prem Shankar Jha, in his provocative new book, Crouching Dragon, Hidden Tiger, makes the case that the economic gap between and is not as great as projected (though any visitor to will tell you otherwise). Unfortunately, as he notes, while both are beset by problems, has a better appreciation of its challenges.

What are ’s choices as it faces a gargantuan ? It could build its military, enter into alliances, settle its disputes with , or hide. could compensate for the huge economic imbalance by massively building its military forces, principally its nuclear forces (to say 1,000 weapons). However, this would be hugely expensive and could set the further back. could, alternatively, enter into an alliance with the other big powers – the US, Russia, and . If grows as projected, even this counterbalance of forces may not be sufficient. Both options would in any case be provocative to . A third possibility is for to settle its disputes with when the power gap is relatively small. This might propitiate and leave safe, for a while. Finally, it could try to hide from ’s gaze by tiptoeing through the jungle of international politics and trying not to offend the dragon. This would be virtual capitulation to Chinese power, for the first time in ’s history. A judicious combination of the four might be the best way to hold off – easy enough to conceive, not easy to achieve.

There is one other possibility – that evolves into a magnanimous hegemon, unlike any previous hegemon in history, and deals generously with the world including .

Here’s hoping.

Kanti Bajpai

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One Response to “Stumbling Tiger, Leaping Dragon?”

  1. PRATIK AGRAWAL says:

    This article is an eyeopener to India and the Indians. We are always over optimistic about our real problems.
    This is not the time to compete with China as competing with China we are making her our enemy. We can gain a lot from China. We have our USPs. Why aren’t we using them instead of making lofty comments about this hypothetical competition. Competition is not the solution as we are making ourself hollow to show off the world. There are many problem at the microlevel. So trickle down is best solution instead of trickling up. Wake up India!!! Wake up Indians!!!

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