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India's Response to State Fragility in Africa

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India's Response to State Fragility in Africa OCTOBER 2017 ISSUE NO. 204 India’s Response to State Fragility in Africa URVASHI ANEJA ABSTRACT New Delhi is increasingly positioning itself as a significant player in African peace, security and development. Examining the question of how India responds to state fragility in Africa, this brief finds that India’s engagement is mostly transactional: working around, rather than on, sources of political fragility. Development and security interventions tend to operate in silos, but might change if Indian commercial investments are threatened by persistent instability. New Delhi’s pronouncements at global forums increasingly call for a more cohesive and comprehensive approach to development and security in Africa, while framing its own contribution in terms of building new development partnerships for mutual economic growth. INTRODUCTION Fourteen of the top 20 states listed in the 2017 Africa. The question of how India responds to Fragile State Index are in Africa.1 Of these 14, state fragility in Africa thus assumes critical India has ongoing investments in eight.2 Overall, significance. While the index is, without doubt, India’s investments in the African continent deeply contentious—it ascribes a static set of have increased significantly over the past decade. standards to ascertain legitimate statehood—it Most recently, at the 2015 India Africa Summit, nonetheless highlights the varying levels of India pledged over US$10 billion more in the instability and fragility in the African continent. form of concessional credit and grant assistance.3 India’s engagement in Africa might also provide a Indian President Ram Nath Kovind recently window into unpacking the trajectory of its announced that his maiden overseas visit will be development partnerships globally. After all, it is to Djibouti and Ethipoia, reinforcing the projected that by 2030, the share of global poor importance the current government attaches to living in fragile and conflict-affected regions will Observer Research Foundation (ORF) is a public policy think-tank that aims to influence formulation of policies for building a strong and prosperous India. ORF pursues these goals by providing informed and productive inputs, in-depth research, and stimulating discussions. ISBN 978-93-87407-00-8 © 2017 Observer Research Foundation. All rights reserved. No part of this publication may be reproduced, copied, archived, retained or transmitted through print, speech or electronic media without prior written approval from ORF. India’s Response to State Fragility in Africa reach 46 percent, up massively from 17 percent Second, before comparing the approach today. It is important to understand how India as followed by India to that of OECD-DAC an emerging economic and military power will donors—the so-called traditional donors—an help shape global security and development important difference in historical trajectories architectures. must be recognised. Development interventions by these traditional donors are at least partly This brief examines India’s current response informed by a sense of historical responsibility to state fragility in Africa. The first section and moral obligation, rooted in their colonial provides an overview of India’s investments in histories. Accordingly, for much of its history, African development and security and the development assistance has been intertwined second examines in detail the cases of South with a narrative of “charity”. India does not have Sudan and Libya, two of the top recipients of a comparable historical experience that gives it Indian investments, and both among the top 20 either a sense of global obligation or an impetus in the Fragile States Index. New Delhi typically for a global mission. If anything, its experience does not use the language of “fragile states” nor as a former colony itself, and its leadership of the does it have a specific policy framework guiding Non-Aligned Movement (NAM) leads it to reject its engagement in such contexts; its position the hierarchical and paternalistic relationship must therefore be inferred from its investments in African development and security. The third fostered through “charity”; what India section then looks at India’s posturing at global emphasises instead are ideas of reciprocity, 5 platforms, to see whether there is continuity mutual benefit, and partnership. Traditional between New Delhi’s approach to fragility in donors are also motivated by the perceived Africa and its global pronouncements. The brief threat to national security from persistent concludes with an outline of future policy underdevelopment and volatility in the trajectories and recommendations relevant for periphery. India’s security concerns, on the India. other hand, are not defined so widely or globally – rather, the most immediate and direct threats A few points should be noted at the outset. emanate in its immediate neighbourhood. It is First, as a recent paper by ORF’s Malancha necessary to recognise these distinct historical Chakrabarty shows, academic and policy trajectories when framing expectations and literature tends to exaggerate the scale of Indian evaluations about the role of emerging powers investments in Africa. Over 90 percent of India’s like India as providers of global development investments are in Mauritius, which is a tax and security. haven; it is then ‘round-tripped’ back to India, making use of the double taxation avoidance Third, it is also important to recognise agreement between Mauritius and India.4 It is India’s long-standing commitment to the thus not surprising that India does not have a principles of sovereign equality and non- formally articulated policy framework for how its interference, shaped partly by history – its fight responds to state fragility in Africa. India’s against colonial rule and its leadership of the investments in Africa are nonetheless significant NAM – and partly by strategic and security because they are being packaged as “development concerns – to deter external interference in partnerships” and are poised to grow in scope and India’s management of its multiple internal scale as New Delhi positions itself as a leading insurgencies. While India has ignored these power. principles at multiple occasions, choosing to 2 ORF ISSUE BRIEF No. 204 l OCTOBER 2017 India’s Response to State Fragility in Africa prioritise its own national security interests,6 Since then, hundreds of African government this principled and strategic posturing has also officials and professionals have trained in India. led to India’s rejection of the narratives around Since the liberalisation of the Indian economy in ‘fragile states.’ New Delhi has argued that it the 1990s and the decade of high growth that imposes an external standard of legitimate followed, India’s development partnerships have statehood and provides a basis for military grown in volume and diversity. In terms of intervention, thereby violating the principle of amounts allocated by India for grants, loans and sovereign equality. training programmes, there has been a four-fold increase from 2003-4 to 2013-14. Since the early INDIA’S SECURITY AND DEVELOPMENT 2000s, India has begun to use Lines of Credit or INVESTMENTS IN AFRICA export credits as one of its key development partnership instruments. 8 The term ‘fragile states’ is contentious, mostly because it imposes a standard of legitimate In Africa, partnerships are channelled statehood, one that is constructed within primarily through lines of credit, reflecting certain geographies of power. The OECD’s State India’s economic and commercial interests on of Fragility report attempts to eliminate such the continent – in particular, access to raw standard-based categorisation for fragile states, materials and new markets to sustain Indian and instead identifies countries that are the economic growth. Africa currently supplies one- most vulnerable across five dimensions of risk fifth of India’s crude oil imports; this figure was and vulnerability linked to fragility: 1) violence zero in 2005. In 2012, mineral products, (peaceful societies); 2) access to justice for all; 3) precious stones, and metal imports from Africa effective, accountable and inclusive institutions; constituted 86 percent of all Indian commodity 9 4) economic foundations; and 5) capacity to imports. India’s investments are concentrated adapt to social, economic and environmental in resource-rich parts of Africa, including oil shocks and disasters.7 Framed in this manner, investments in fragile states such as Sudan, traditional donors, including the US and UK, Nigeria and Libya. have figured in the fragile state index released In the last decade, almost US$ 9 billion in earlier this year by Foreign Policy. As India does concessional credit was approved for nearly 140 not have a specific policy document pertaining projects in more than 40 African countries, with to states of fragility, its position has to be inferred from its various economic, special emphasis on LDCs and SIDS partners. development, and security investments in Most recently, at the Third India-Africa Forum Africa. These will help understand how, if at all, Summit held in New Delhi in October 2015, India addresses the above dimensions of risk India made a pledge of concessional credit worth and vulnerability in Africa. US$10 billion to Africa in the next five years, a doubling of its existing commitment, and grant Economic Diplomacy as Development assistance of US$600 million, which includes an Partnerships India-Africa Development
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