'Development in India, China has world-wide effect'

Excerpts from Foreign Minister S M Krishna's speech in Beijing

In the 1980s, having overcome initial challenges, India and China saw that rapid economic growth would give them a stronger voice in the international community. Getting our growth strategy right in an ever-changing world has its own challenges. As India and China manage their domestic priorities well, it has huge implications for global prosperity.

After all, between them, they are raising the living standard of almost a third of humanity. When the question is raised about what we are doing for the world, it is often forgotten that our domestic development itself has worldwide effect. In the last two decades, we have significantly impacted the global per-capita income, longevity and human development.

Given the scale of what is underway, there is much that can be gained through our close cooperation. The economic models of India and China may be very different. But an exchange of best practices can still benefit both countries. After all, we do face similar challenges of urbanisation, resource consumption, food and energy security, inclusive growth and skills development.

The paradigm of co-existence has today been enhanced by more active engagement. But this is still not adequate. We must ask ourselves whether as neighbours and partners, each of whom are large and rising economies, are we making the best of opportunities? Put bluntly, is it possible that India and China can leverage each other’s strength? After all, in their own past history, both nations have leapfrogged using international relationships.

There is considerable scope for joint projects as we master the practice of working harmoniously together. On the Chinese side, the outsourcing of information technology by state enterprises has only started recently. There is a potential waiting to be tapped, which would happen only by connecting Chinese users to Indian providers. I am meeting representatives of Indian businesses in China later today and will encourage them to be creative in exploring opportunities here. We strongly feel that the India-China relationship is grossly under-realised and the capacities for expansion are enormous.

Like other major states that made the same journey earlier, India and China seek a secure and peaceful environment that allows them to focus on their growth prospects. In this regard, we must always remember that the two countries are each part of the other’s immediate periphery. Just by ensuring stability and promoting prosperity at home, we are actually serving each other’s interest.

What are the challenges to our peaceful periphery? They are actually not very different from the problems that we face at home. These emanate from two central issues — material poverty and intellectual poverty. To the extent that we can raise living standards rapidly at home and encourage similar progress in our neighbourhood, we will be more secure and stable.

The more complex challenge is that of ideas. As pluralistic societies, we are threatened by political ideologies that are based on narrow loyalties, often justified by distorting religious beliefs. These forces are against progress and modernity and have only brought misery wherever they have dominated. States that use these as instruments to advance their political interests find themselves consumed by these very destructive ideas.

For both, stability at home stands in sharp contrast to extreme instability in shared neighbourhood. We cannot afford to be passive spectators. It is critical for our future that we cooperate actively in meeting common challenges. Our ties were never a zero sum game. Today, it is all the more important that we take an enlightened and long-term view of our self-interest.

A strong and stable relationship between India and China has consequences for the entire world. Because we are different, our divergences are often exaggerated. Truth be told, there are vested interests at work too. India and China must not just cooperate; they must be seen to be doing so by the rest of the world.

(Excerpts from Foreign Minister S M Krishna’s speech at the China Institute of International Studies on 'India and China in the 21st Century World' in Beijing on April 6)