World News - Latest International News - Europe as Collective Power
- Today Europe, as a collective power, is in great decline, while the United States the worlds
The largest economy is struggling to avoid growth contraction. It is in light of this global scenario that
Economic actions of India and China assume great significance. Increased prosperity, European
Imperial powers further exploited the resource-rich Dark Continent.
It is in fact that the Persian Gulf holds a little over 55% of global crude oil reserves. However, what
Is also true is that the oil and gas supplies from this region have to pass through the Strategic
Strait of Hurmuz, which is seen by Iran as its backyard. Given the volatile nature of the middle
East politics (like the acrimonious (harsh) relationship between Israel and the Muslim World on one hand, and Iran and Saudi Arabia on the other.) Both India and China are seeking safer but reliable Avenues for energy resources. Uncertainty in Energy Supply can adversely impact the economic growth
- In both India and China. These Global Economic and Strategic facts should help us understand
That both India’s and China’s focus on Africa stems from their insatiable (greedy) thirst for energy resources.
- Today, more than a third of China’s oil imports originate from Africa while India meets one
Fifth of its oil needs with imports from the world’s second largest continent.
- However, it is not just energy resources that India and China compete for, there is commodity
Resources, like metals,minerals and cotton. Today the realtioship between Africa and the two
Asian Giants is so interlinked that a decline in the import needs of the two Asian Giants can lead
To the collapse of some national economies in Africa.
- Take an Example the Zambian Economy with its principal export item, copper.China, the world’s
Biggest consumer of copper, is the biggest buyer of Zambian Copper, which makes up 70% of the
African nation’s forex earnings . As you can see a slowdown in China’s electronic and computer
Industries where copper is used as a key component can break the Zambian Economy.
It is true that wherever India and China compete against each other to gain access to key resources.
Like commodities and energy sources there is hectic behind the scenes lobbying where companies
Often resort to manipulative tactics, like paying bribes. In fact, wherever India looks for new
Partners in search for its energy security. Chinese companies step in with promises of lucrative investments and often walk away with the contracts just as it happened in Kazakhstan and Sudan In the recent past.