Showing posts with label international aid donor. Show all posts
Showing posts with label international aid donor. Show all posts

Thursday, July 22, 2010

China’s Emergence As The World’s Top Aid Donor – Warning Bell For India?

A significant international development, at least for India, is the steady rise of China as the world’s top aid donor.

On one hand the USA – a prominent source of international aid – is suffering from a weakening economy. On the other hand another key international aid donor Japan has decided to restraint its supply of aids to the developing world. This combined development has resulted in an ample room for China to establish itself as a top international aid donor, with the Asian and the African regions in its focus area. In fact, it has already become a key aid donor to the developing nations of the African continent.

While it is otherwise a great news to find the emergence of yet another country as a prominent international aid donor, it is probably not a pleasant development for India given the fact that the country in question is China. And the reason is very simple. Its newly achieved status as a key aid donor will enhance China’s political status as well, and it is taken for granted that it will use its enhanced political status and weight to serve its political objectives. This will in fact be quite an easy game for China, with the countries dependent on Chinese aids having a moral and/or obligatory compulsion to toe China’s political stands on international issues.

And this is likely to be a matter of concern for India, as China’s political objectives are not always at par with India’s interests. On the occasion of an Indo-China face-off, China may try to gather the support of those countries dependent on its aid, thereby exerting a strong international pressure on India. And the heat sometimes may be too much for India.

So what can be done? Well, there seems to be only one way out. India should try to convince the USA that a significant expansion in China’s sphere of international influence is not likely to be a very healthy development for “Uncle Sam”, as well. And therefore the USA must try to ensure that China does not manage to achieve the status of a top international aid donor, a status that the Chinese government is trying to achieve very hard.

But how will the USA do it? Well, let’s leave it to the US government itself. The US government is well known for handling such developments in the past, and is very much likely to chalk out a suitable plan to address this issue.