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