COVER STORY • Exploring Future Relations in East Asia • 2

I

ndo-PacificCooperation from
Indian Perspectives

By Sachin Chaturvedi & Priyadarshi Dash

Introduction
The Indo-Pacific region has assumed importance as a source of
global stability and peace. The prevailing contestations in the watersof this region have given rise to security and strategic formulations.
However, in last few years the Japan-India partnership has given theregion an important perspective on international development.
Further, India and Japan has been vocal in promoting a free and open
Indo-Pacific (FOIP) for peace and prosperity in the region. FOIP is a
joint initiative by India and Japan for cooperation in Africa in various
development projects (Brendon J. Cannon, “Grand Strategies inContested Zones: Japan’s Indo-Pacific, China’s BRI and Eastern
Africa”, Rising Powers Quarterly, 2018, Vol. 3, Issue 2). Other
countries that are likely candidates for FOIP are Bangladesh, Sri
Lanka, Myanmar and Indonesia. FOIP sets a vision for the common
future of the people in the Indo-Pacific region.
Further, the region covering two oceans — the Indian Ocean and
the Pacific — is not only home to a diverse set of countries but isendowed with precious natural, mineral and human resources. From
India, Bangladesh, the Maldives and Sri Lanka in South Asia to
Myanmar, Indonesia and Thailand in Southeast Asia, to Japan andAustralia in the Pacific and to Kenya, Tanzania, and Madagascar in
Eastern Africa, the Indo-Pacific region has witnessed several variantsof development experiences. For instance, while Southeast Asian
economies experienced faster industrialization and high GDP growththrough export-led growth strategies and development state models,
India and other South Asian countries experimented with a mixed
economy in their post-independence periods and subsequently
cautious liberalization and privatization. At the other extreme, Japanis a developed country in Asia characterized by a prolonged period of
growth stagnation and an aging population.
These different development models in these Indo-Pacific subregions have produced divergent outcomes manifested in thecoexistence of high economic growth and abject poverty and income
disparity. Although a host of factors may explain this mixed
development outcome despite similarities in resource endowments,
there exist some serious gaps in resource allocation and enabling
policy environments in these countries.
In terms of crude development indicators, countries in South Asia
and Sub-Saharan Africa are dramatically different from the level ofdevelopment in East Asia and Southeast Asia. It therefore presents acase for a virtuous model of international development cooperation
10 Japan SPOTLIGHT • January / February 2019

Author
Sachin Chaturvedi

AuthorPriyadarshi Dashamong the countries in the Indo-Pacific region. India and Japan may
initiate this process of engagement in the form of investment inphysical and social infrastructure, technology transfer, skill
development, local industrialization, capacity building and people-topeople interactions. By following the principles of development
partnership, other countries in Asia and Africa can jointly envision acommon roadmap for attaining inclusive growth and development in
the Indo-Pacific region. This may be explored in the framework ofgrowth theories that facilitated development in the successful
developing countries.

Growth Poles — Catalyst for Balanced Regional
Development
Several paradigms dominated development thinking in developing
countries in the postwar period. While Roy F. Harrod and Evsey D.
Domar, Albert O. Hirschman, Ragnar Nurkse, Joseph Schumpeter
and others provided alternative approaches towards development in
the 1950s through the 1970s, several institutional innovations wereconceptualized to realize the outcome of these development models.
“Growth poles” is one such mechanism, originally coined by
Francois Perroux in 1955, that propagates a growth trajectory withthe prior knowledge of unequal industrialization and development indifferent regions even within the geographic boundaries of a country.
By “growth pole” he meant a center in abstract economic spacefrom which centrifugal forces emanate and to which centripetal
forces are attracted. This connects some urban centers (or dominantfirms) where economic activity is concentrated. Thus “growth poles”
can act as growth engines for the hinterland (remote or backward
areas) which would ultimately lead to higher job creation, raise percapita income and mitigate income inequality. Perroux tried to buildon the theory Schumpeter proposed on innovation and the role oflarge firms, which itself was dependent on discontinuous spurts in a
dynamic world. Perroux tried to break away from the limiting
geographical dimensions adopted in central place theories.
A similar concept — “economic corridor” — captures themechanics of achieving the predictions of the growth pole theory. An
economic corridor, which borrows the spatial perspectives,
envisages a gradual path of evolution of a growth corridor —starting from a transport corridor to a logistics corridor, to an
economic corridor, and then to a growth corridor.
As per this approach, improved connectivity would facilitatehttps://www.jef.or.jp/journal/

COVER STORY 2

efficient utilization of natural and human resources in the hinterlandand enhance urbanization and industrialization in the growth centers.
This approach appears to be the most feasible option to meet thedevelopment aspirations of the countries in the Indo-Pacific region(“Asia Africa Growth Corridor: Partnership for Sustainable andInnovative Development — A Vision Document”, RIS, May 2017).
Following this model, high-saving economies can deploy theirsurplus financial resources in building infrastructure and logistics inlow-saving economies in the region which, in turn, would result ingrowth pole effects by incentivizing local firms in the invested
economies to expand and diversify industrial production and move
up in the value chains. Parallel to investment in connectivity projects,
skill gaps in local industrial sectors can be bridged through training,
capacity building and customized on-the-job training. The net result
would be higher economic activity in the local economy in the formof local industrialization, greater participation in regional value
chains, remunerative employment of local labor and, possibly, higher
standards of living.
To begin with, India and Japan can extend support to Africancountries to augment their capability to achieve higher economic
growth and meet the United Nations’ Sustainable Development Goals(SDGs). India and Japan have their own development cooperation
projects in African countries, but their joint initiative under the IndoPacific strategy would expand the scope of cooperation and be more
effective. Since the Indo-Pacific region is a huge maritime area, thecountries can leverage their marine resources for sustaining growth
and alleviating poverty and unemployment. The blue economy
includes several vibrant sectors which can be suitably brought under
the purview of FOIP for effective coordination of the use andgovernance of marine resources in the Indo-Pacific region (Sachin
Chaturvedi, “Asia Africa Growth Corridor (AAGC): Implication for
Indian Ocean Regional Cooperation (IORA),” Presentation at Foreign
Policy Analysis Forum at Bandung, Indonesia on Aug. 31, 2017).

Free & Open Indo-Pacific
An Indo-Pacific strategy has been in vogue over the past two
years. Both India and Japan have expressed strong interest in thisinitiative for a peaceful and prosperous Indo-Pacific. Indian Prime
Minister Narendra Modi and Japanese Prime Minister Shinzo Abe
had emphasized the rising importance of the Indo-Pacific region as a
key driver for global prosperity during their meeting in November

2016 in Tokyo. They both recognized that India’s active engagementin the region under the “Act East” policy and Japan’s “Free and Open
Indo-Pacific Strategy” have the potential for deeper bilateral
cooperation and synergy. It was stressed that improved connectivity
between Asia and Africa is vital for the prosperity of the entire IndoPacific region. In this regard, Japan and India have decided to
explore synergy between India’s “Act East” policy and Japan’s“Expanded Partnership for Quality Infrastructure” for close
coordination both bilaterally and with other partners, to strengthen
regional integration through improved connectivity as well as
industrial networks based on the principles of mutual consultationand trust.
During his recent visit to Japan in October 2018 for the annual
India-Japan Summit, Modi reiterated the unparalleled potential fordevelopment of relations between the two countries. He also
recognized that the India-Japan relationship has been transformed
into a partnership with great substance and purpose and is acornerstone of India’s “Act East” policy. In a similar tone, Abe
underscored the basic importance of the India-Japan relationship forregional order and is determined to advance the “new era in IndiaJapan relations” so as to further cooperate for the peace, stability
and prosperity of the Indo-Pacific region. Based on their sharedvision, the two leaders reiterated their commitment to working
together for FOIP. They also affirmed that ASEAN unity and centrality
are at the heart of the Indo-Pacific concept, which is inclusive andopen to all. They shared their willingness to expand concrete
cooperation with the United States and other partners. The two
leaders’ vision for the Indo-Pacific region is based on a rules-basedorder that respects the sovereignty and territorial integrity of nations,ensures freedom of navigation and overflight as well as unimpeded
lawful commerce, and seeks peaceful resolutions of disputes withfull respect for legal and diplomatic processes in accordance with theuniversally recognized principles of international law, including thosereflected in the UN’s Convention on the Law of the Sea, without
resorting to the threat or use of force.
The two prime ministers reviewed with satisfaction thecooperation on development of connectivity via quality
infrastructure, and other projects including capacity building forshared prosperity, carried out bilaterally and with other partners, inan open, transparent and non-exclusive manner and based oninternational standards, responsible debt financing practices, and inalignment with local economic and development strategies andJapan SPOTLIGHT • January / February 201911

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priorities. This synergy is embodied in collaborative projects between
India and Japan in the Indo-Pacific region, including in Sri Lanka,
Myanmar and Bangladesh as well as in Africa. In this regard, Modi
and Abe welcomed the discussions for establishing the “Platform forJapan-India Business Cooperation in the Asia-Africa Region” tofurther enhance exchanges between Japanese and Indian businesses
toward developing industrial corridors in the region.
The FOIP vision can be fulfilled through the following pillars:
Quality Infrastructure and Connectivity : FOIP would encouragebuilding of robust institutional, industrial and transport infrastructurein growth poles among countries through quality infrastructure.
Physical connectivity will improve trade facilitation and promoteinter-industry linkages, and offer opportunities to countries tochoose new product lines and shifts in production lines. Quality
infrastructure may include power projects such as smart grids,
renewable energy projects like the International Solar Alliance (ISA),
telecom infrastructure, and so on.
Focus Sector Development Cooperation : Agriculture, health andpharmaceuticals and disaster management could be the focus
sectors of development cooperation among the countries.
Agriculture and agro-processing is an important field of cooperation
among countries in the Indo-Pacific region. The specificdevelopment cooperation projects may include establishment of a
supply chain for crop seeds and agricultural machinery, joint
establishment of regional manufacturing for machinery andimplements to boost farm mechanization, marketing networks for
agricultural machinery, arranging finance and credit systems, andmeasures to reduce post-harvest losses of farm commodities suchas pulses, cereals, oilseeds, eggs, meat, milk, and dairy products.
The two important pillars of cooperation in health are advancing
health research collaboration and medical education as well as
industrial cooperation in the pharma and healthcare sector. Some
prospective areas include health systems research, strengthening thecreation of a surveillance network including for precise real-time
epidemic tracking, pandemic preparedness for emerging andre-emerging infections, drug resistance surveillance for diseases like
TB, HIV, development of point of care diagnostics, anti-microbial
resistance, etc. In the field of disaster management, India’s
experience with management of natural calamities such as floods,
tropical storms, drought conditions, etc. can be shared with othercountries in the region.
12 Japan SPOTLIGHT • January / February 2019

Skill Development and Capacity Building : Education and skill
development are important areas of capacity building. Countries in
the Indo-Pacific region can share their experiences with othercountries to meet skill gaps. For instance, India has an advantage inthe healthcare sector, medical training and other capacities. Similarly,
India and Japan can collaborate in Africa in mining and mineral
exploration sectors. It would also be essential to synchronize
capacity building and skill development to industrial demand at the
ground level. Entrepreneurship Development Institutes can beestablished for creating cadres of future entrepreneurs in the region.
People-to-People Partnership : People-to-people exchange isimportant for sharing of experiences at the grassroots level as well
as for improving human potential through capacity building andtraining. Public understanding enhances the durability of any project
or institution, but most people engage only when their personal
interests are addressed. The gains from economic interdependence
are more secure when they are widely understood. Tourism andeducation are the major mechanisms of people-to-peopleinteractions. Universities can play a key role in strengthening greaterinteraction among the people of the region for fulfilling the dream of
FOIP.
Southeast Asia has extremely rich experience in this regard. The
saga of economic growth in the ASEAN region has several
fascinating stories of economic corridors and growth poles
eventually leading to regional integration. The economies of ASEAN
countries could evolve a balance in hard and soft elements that
optimize a corridor’s competitiveness. In this effort inter-sectoral
multilevel approaches could provide growth impetus for small andmedium enterprises.
India has recently implemented several development schemes
which can be replicated in other countries for desired impact on thesocio-economic conditions of the people. In recent years, India has
stressed paradigm shifts in policy approaches to initiate and expedite
economic transformations promoting inclusion, well-being andsustainability. The comprehensive approach to policy making ismeant to link nodes, spread policies and fill the voids in policy
interventions to make transformations effective and credible. Thislargely overlaps with the integrated approach of the SDGs. The mostnoticeable change in approach has been initiated to make economic
and social inclusion a robust, time-bound and self-sustaining
process. The approach has been to move beyond entitlement toCOVER STORY 2

empowerment and to entrepreneurship. This is being achieved
through measures beyond temporary income transfers. Modi’s
scheme for financial inclusion known as “Pradhan Mantri Jan Dhan
Yojana”, aimed at bank accounts for all with an assurance of social
security benefits linked with such accounts, has been hailed astransformative. Likewise, schemes of financing for small
entrepreneurs, such as MUDRA, and the same for the marginalized
and women under the name of “Stand Up” India offer unprecedented
opportunities for transformation. The social sector agenda has been
set straight through exemplary focus on saving and educating thegirl child, protecting and caring for maternity and comprehensive
efforts to eradicate malnutrition.
Under-development in India has meant lowly living conditions,poor sanitation and open defecation among the underprivileged. The
government’s “Clean India” campaign is meant for time-boundresults. India’s focus on clean fuel and renewable energy is massive
and magnificent at the same time, setting global standards. India has
undertaken huge programs on supply of subsidized clean cooking
gas reaching maximum households and benefitting women. India is
on a steady path of energy conservation and efficiency withavailability of the cheapest LED bulbs globally and has reached lower
per unit costs for solar energy than thermal. Finally, in India highspeed broadband connectivity with the Digital India Programme shallbe reaching all villages. India’s policy efforts on localizing
development and thereafter contextualizing SDGs are a valid modelfor emulation in the Indo-Pacific region. India is ready to shareknowledge, expertise and institutional designs with other countries
for a robust partnership on the SDGs. Moreover, India’s maritime
projects such as Sagarmala and Chabahar port are a reflection of its
emphasis on developing economic corridors in the Indo-Pacificregion.

Future Roadmap
Complementarity between different countries in the Indo-Pacificregion has to be studied and explored further for deeper
understanding. Projects in different sectors can be identified basedon local needs and development priorities. Since FOIP envisages
partnership, the joint mechanisms of identification, financing andimplementation of projects involving two or more countries may be
encouraged. Physical connectivity is the precondition forstrengthening economic and growth corridors.

The advantage with Japan is in its specialization with quality
infrastructure, which in the forms of roads, railways, airports andseaports would reduce the cost of transport of goods and ensure
greater mobility in the urban space with much lower carbon
footprints. The challenge would be to motivate leading actors fromJapan to bring Africa into their roadmap, although the Tokyo
International Conference on African Development (TICAD) VI hassuggested several ways for leveraging business partnerships in
Africa. There are increasingly encouraging results one comes across.
Japanese business presence in Africa has steadily increased in thepast 10 years. Official figures estimate that in 2017, 795 Japanese
corporations were operating in the continent, up 7.7% from 738 in2016 (Chika Kondoh, “Strong Call for African and JapaneseBusinesses to Deepen Ties on Eve of 2018 TICAD Ministerial Meetingin Tokyo”, Oct. 5, 2018 UNDP, Tokyo).
India, through the India-Africa Forum Summit (IAFS), has alreadyformally structured its age-old relationship through new context
partnerships with several countries. The last IAFS in Delhi had arecord 41 of the 54 leaders of the African Union (AU) come together,compared with the previous participation of just 15 leaders or less in2008 and 2011. This shows the impact that the government of India
has evolved over the years with its partners.
In the sectors identified above, including agriculture and agroprocessing, health and disaster management, the specific modalities
of implementation of cooperation projects may be formulated. FOIP
should devise proper governance structures for optimum and legal
use of marine resources for economic growth and well-being. Native
coastal communities dependent on fisheries, shipping, coastal
tourism and other sectors may be given inducements to invest, takeownership and advance knowledge in the blue economy. Under the
FOIP strategy countries can think of creating special funds forexpediting certain cooperation projects on a priority basis.

Sachin Chaturvedi and Priyadarshi Dash are director general and assistantprofessor respectively at Research and Information System for Developing
Countries (RIS), New Delhi.

Japan SPOTLIGHT • January / February 201913