Beyond the Rhetoric: The Economics of India’s Look East Policy, Volume II,
New Delhi
By ATOM SUNIL SINGH

Frederic Grare and Amitabh Mattoo (eds.), Beyond the Rhetoric: The Economics of India’s Look East Policy, Volume II, New Delhi: Manohar in association with Centre de Sciences Humaines, and Core Group for the Study of National Security, JNU, 2003. Rs. 500.

India has made a significant stride after the cold war especially in the field of foreign policy. Coupled with integrative forces of globalization, rapid economic growth in the ASEAN countries and advantages taken by China are compelling reasons for India to launch the “Look East Policy.” The present volume examines the potential for increased economic relations between India and the ASEAN, as well as the manner in which the structural problems of Indian economy could undermine these relations. The overarching concern of the volume is focused on the potentials and prospects of economic development in India and South East Asian countries.

Narrating the urgent needs of economic relations with Asian countries, Isabelle Saint-Mezard explains how the “Look East Policy” was the outcome of economic liberalization initiated in 1991. She emphasizes on the need of India for an economic policy towards the ASEAN, Japan and South Korea. Although there is dissimilarity of economic differences between India and the ASEAN during the cold war, Asher, Sen, and Srivastava discuss factors contributing to increased density of economic relations between these politico-economic blocks. Case studies of Indonesia, Malaysia, Philippines, Singapore and Thailand are undertaken by Sharma and Mehta to explore the trade prospects between India and the ASEAN. In spite of the limitations, some of the recent initiatives taken up by the ASEAN and India have been seen to hasten the process.

Baladas Ghoshal examines the possibilities that can contribute the economic growth by Indian Diaspora. Agarwal and Sengupta examine the factors responsible for Balance of Payment (BOP) crisis in the early ’90s and look at the early impact of the reforms in ASEAN. It has been argued that from ASEAN experiences of “East Asian financial crisis” India can learn lessons, both positive and negative. India can learn how these countries recovered from the financial crisis and how they managed themselves during those difficult times. Showing the causes of the Asian financial crisis, Sakutrat Montreevat explores how India’s economy was affected due to the crisis and how it was a big lesson for the country. India was not able to export to the Southeast Asian countries, and many Indian companies lost heavily in international market.


Mahesh Purohit canvasses on fiscal reforms in the ASEAN and also shows limitations in Indian fiscal reforms. Contemplating the fiscal reforms in the ASEAN for the last three decades, the author highlights how India can learn lessons from those experiences. Mishra probes the need for privatization both in the first and the third world economies. He exemplifies the hindrances of public sectors showing different examples taken both from the ASEAN and the developed countries.

The propinquity of India to Southeast Asia has a lot of prospects in trade and economic developments. Though India’s Look East Policy covers as its target east of Asian countries, this volume is confined to the ASEAN. Not only it emphasizes on economic aspects, it also focuses on Indian intentions. The Look East Policy, for instance, is also paying attention towards the potential developments in the fields of tourism, education, etc. Development of film industry in terms of movie production and circulation has been one of the focused areas. The South East Asia is dominated by the Buddhist followers and has a common history with India. The people of South East Asia, on the other hand, regard India as birthplace of Lord Buddha. Tourism based linkages with these countries can be remunerated. On the other hand, it is also pertinent to discuss the impact on Indian economy from illegal trade like piracy, drug trafficking, etc.


The volume however does not reflect on the nature of “localization of market” before heeding on discussing with Southeast Asian countries as market place in order to boom India’s economy. Without proper localization of market place, trade cannot be expected to boom. The other important initiatives – such as the Mekong-Ganga Cooperation and Kunming Initiative, a regional cooperation and development among China, India (especially North East India), Myanmar and Bangladesh – are not considered important enough to be discussed in the volume. The Mekong-Ganga Cooperation is an offshoot of a policy of looking towards the East since the early nineties and is conceded to China’s Kunming Initiative. The Greater Mekong Sub-region, popularly known as GMS, cannot be left behind while studying the Look East Policy. It is also significant to take into account construction of trans-Asian highway and trans-Asian railway. How far will it impact on Indian economy? These are questions that cannot be overlooked.