Asia needs India for post-Covid cooperation
Context: India needs to step up its engagement with Asian nations and provide leadership for global economic recovery.
Asian Covid-19 recovery strategy, released by the Asian Bureau of Economic Research
- It calls for ASEAN+6 nations (ASEAN’s 10 members plus China, Japan, South Korea, India, Australia, and New Zealand) rapidly to coordinate financial, trade, public health, and food security actions.
- Important Objectives
- Expand macroeconomic policy space: for developing countries by persuading global banks to expand bilateral currency swap agreements.
- Support current developments: through collective commitment funds to the WHO’s Covid-19 tools (ACT) Accelerator and expansion of ASEAN Response Fund.
- Open trade movement: at the regional level to ensure food security and pharmaceutical needs.
- Protocols for health certification: need to be devised for international travel which will fast-track the movement of people worldwide.
- Embrace digital transformation: in light of new work environments, supply chain management and delivery of goods and services.
- Concluding Regional Comprehensive Economic Partnership (RCEP): keeping open the path for India to promote broader economic participation and ensure food security during critical times.
Reasons for India to join RCEP:
- India’s Politico-economic and intellectual leadership: in the region with strong growth potential but dependent on stable regional and global rules. India’s engagement would promote its stature.
- Economic heft and balanced relation:
- India is at commanding height to voice its opinion in regional financial institutions like Asian Development Bank, The New Development Bank, and G20.
- Sub- Saharan Africa welcomes India’s constructive human and financial engagement in their region.
Way Forward:
- Bypassing Strategic tensions: to create an environment of constructive cooperation is required at the regional level in meeting the emerging challenges of dealing with the virus.
- Sustainable way: Asian economies could be central to global recovery.
- As they are positioned to restart their economies sooner. A compact for regional cooperation between major Asian nations can therefore be globally significant
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