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Tuesday, June 27, 2023

As India embraces US, it should be cautious of America’s habit of backstabbing friends

 

llustration: Chen Xia/Global Times 

 

 



Washington DC became a busy city recently as the US capital was flooded with preparations for the state visit of India's Prime Minister Narendra Modi. India is what US officials, in their typical arrogance, call a "swing state," a lazy euphemism borrowed from US politics used to refer to a country with an independent foreign policy. For years, the US has been desperately courting India in a geopolitical dance to counter China, showcasing bilateral relations like US' officials parade their trophy wives.

The US regime views geopolitics only through the prism of power and strength. Power, not values or principles, is seen as the ultimate arbiter of disputes among states. Bilateral relationships for the US are transactional, with little concern for anything else. All allies are only as valuable as the returns they bring. Friends are only as good as their benefits. As Henry Kissinger once reportedly claimed, the US has no permanent friends, only permanent interests.

The US didn't become a superpower by earning other countries' goodwill, but by exploiting their fears. Today, America's own fear of China has it desperately seeking allies.

India presents an attractive target, and is being feted to the fullest possible extent by Washington. The US rolled out the red carpet for Modi's recent state visit, while its propaganda machine portrayed a cuddly image of "two great democracies" brought together by "shared values" (i.e. opposition to China). Modi has now become the first Indian prime minister and only the third world leader to address the US Congress twice.

A variety of heavyweights, from US oligarchs like Elon Musk and Ray Dalio to leaders of American think tanks that produce US propaganda, eagerly lined up to meet him.

India is willing to look past America's democratic backsliding, for good reason, given its own issues with China. India's strategy is to keep both US and China on its toes, while keeping out of US-China fights that do not concern it. So far, this approach has served India well.

Yet, hedging comes with limitations. Fickle friendships based on common hatreds (in this case, toward China) tend to be weaker than those based on common preferences. Moreover, being dependent on the US for military technology is even more dangerous than being dependent on Russia, from where India already imports around half of its military hardware.

The key caution to be exercised while embracing the US is its long history of treachery. America is notorious for backstabbing its allies; who's to say it won't do the same to India one day? When India eventually becomes powerful enough to challenge US hegemony, US attitudes would change faster than a jointly produced fighter jet. The relationship lacks depth; America's embrace of India doesn't go beyond exploiting shared apprehension toward China. It is unclear how long an alliance built on such shaky foundations will last.

In the pursuit of national interests, the US-China Great Game is simply too important to ignore. India is biding its time, and smartly trying to exploit US insecurities about China. Yet, Modi would be wise to be cautious. If history has shown one thing, it is that the US makes promises it has no intention of keeping. As Kissinger once proclaimed, correctly, it may be dangerous to be America's enemy, but to be America's friend is fatal. The US is as much a deceitful country as it is a war-mongering one. A side effect of embracing the US is that you can also smell its stench.

The author is an Indian commentator who writes about China, India, the US and global issues. 

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US will lose its 'huge bets' on China's neighboring region: Global Times editorial

Indian Prime Minister Narendra Modi has just finished his state visit to the US, but the attention and interpretation of the trip, as well as its possible impact on the regional situation, has only started.

 

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Friday, June 23, 2023

UK loses its allure and faces big investment gap


 

Big job: Sunak greets Sweden’s Prime Minister Ulf Kristersson outside Number 10 Downing Street. The survey underscores the challenge Sunak’s government has in reviving economic growth with a labour force that has shrunk since the pandemic. — Reuters

 

LONDON: The United Kingdom (UK) has fallen six places in the global economic competitiveness rankings because business leaders have lost confidence in the country, due in part to “government incompetence”.

The annual World Competitiveness Ranking from the International Institute for Management Development saw the UK plunge from 23rd to 29th out of 64 countries.

In a separate analysis, the Institute for Public Policy Research (IPPR) warned that years of underinvestment are holding back growth and harming ambitions to build up green industries.

It estimated the nation would have received an extra £560bil (US$720bil or RM3.3 trillion) in real terms had investment from private firms and the government stayed at the Group of Seven average since 2005.

“The UK is experiencing a debilitating case of investment phobia, and the government’s aversion to investing to seize future opportunities is stopping us from getting out of the growth doom loop we find ourselves in,” said George Dibb, associate director for the economy at IPPR.

The figures underscore the challenge Prime Minister Rishi Sunak’s government has in reviving economic growth with a labour force that has shrunk since the pandemic.

Political leaders from all parties are concerned about the UK’s stagnating productivity and sticky levels of inflation, which have undermined the confidence of investors both in stocks and in businesses.

In the competitiveness rank, the UK lost ground on all the key indicators, which is a worrying sign for the government, which wants to attract investment to boost growth.

Respondents said the country had become more bureaucratic, the government less efficient, and the workforce less productive.

Denmark held on to the top spot in 2023, and Ireland jumped nine places to second. Switzerland, the Netherlands and Singapore completed the top five.

“The dramatic drop in the survey indicators suggests a systemic pessimism about the future,” Arturo Bris, lead researcher on the rankings and director of the IMD World Competitiveness Centre, said in an interview. “The deterioration in business sentiment says executives are losing confidence in the country.”

More than 6,400 senior executives from across the world were interviewed for the report. Just 3% of respondents said the competency of the government made the UK an attractive destination for investment.

“Government incompetence, poor workplace culture, and restrictive immigration laws were among several reasons why the UK fared badly,” the report said.

The report also found that the UK is becoming increasingly bureaucratic, despite the government’s pledge to use “Brexit freedoms” to cut regulation. The UK fell 12 places in the bureaucracy sub-ranking from 15th to 27th, while France climbed from 44th to 41st, Bris said.

France remained less attractive than the UK, dropping five places to 33rd in the rankings. Germany fell seven places to 22nd.

The survey was conducted between February and May but reflected the political chaos of 2022, a year in which the UK got through three prime ministers and four chancellors.

The struggling economy, with inflation higher and the labour market tighter than other leading industrial nations, will have also affected sentiment badly, Bris said. — Bloomberg

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