Authors: Suresh George & Andrew Amayo
This paper attempts to analyze how the Indian state is managing its institutional strategy in the midst of inter-state competition for energy resources in the African continent. On its way to becoming the third largest economy globally, India is expected to import 61% of its energy resources, while the demand for energy resources by India is expected to outpace that of China by 2035 (BP 2014).
The Prime Minister of India, Narendra Modi, visited key energy-rich states in the first six months of his election, proving that India is no longer content with playing ‘catch-up’ to other resource-seeking states (Saritha 2014) and is redefining its state-driven energy security strategy.
Energy security is one of the Indian state’s chief strategic and political issues as it seeks to consolidate its economic success over the recent decade. Dadwal and Sinha indicate that over 70% of India’s crude oil demand was met through imports using a mixture of short-term policy mechanisms built on relationships with international oil companies (IOC) and to seek preferential terms from these IOCs. Today, the state is seeking to acquire energy assets overseas and competing with IOCs and National Oil Companies (NOC) within a formal resource-driven approach. India’s growing oil demand has forced the Ministry of Petroleum and Natural Gas to ‘acquire acreages abroad for exploration as well as production.’ (Ministry of Petroleum and Natural Gas 1999). A new institutional approach that has been enshrined in the state’s ‘India Hydrocarbon vision 2025 report’ clearly points to a more aggressive resource-based approach from the Indian State. This new energy security approach indicates that the state is using multiple approaches to drive resource-seeking, especially in the African context.
These strategies can be broadly classified into the following:
1.A market-based approach of energy security
2. An institutional-based approach using all state and non-state assets to seek and obtain access to energy sources
3.A security-based approach that offers a security umbrella to resource-rich actors.
Some of the specifics of these approaches are:
(i)The Indian state has begun to leverage India’s energy “Buyer Power” to access quality E&P projects abroad or what we would like to define as a market-based energy security approach.
(ii)Diversification of Energy Supply: The Indian state is also considering several diversification options to ensure supply security; hence the need for diversification into new supply sources as well as securing new routes of supply.
(iii)The inclusion of the private sector through the Confederation of Indian Industry’s energy division that has been holding seminars and conferences, increasing the visibility and uptake of the state’s new approach.
(iv)The creation of a specialised energy security cell within the Ministry of External Affairs (MEA) that is staffed with career diplomats who have expertise in specific and strategic markets that India would like to access as well as defense and industry experts in the field of energy asset acquisition.
(v)The use of diplomatic and political strategies for the import of energy resources from geographically close states has become an instrument of state policy enshrined in its institutional-based approach. For years, policy mandarins have indicated that state inertia combined with a lack of coordination amongst several ministries prevented the Indian state from competing with China. This is no longer the case apparently.
(vi)Indian foreign policy and its execution by the Foreign Service are of prime importance in this new scenario. The Indian state is moving aggressively to increase the diplomatic corps as well as language /geography specialists.
(vii)The policy of the state to encourage the transportation of crude oil through Indian flag vessels was proposed as a form of its security-based approach. An example of this approach has been the very recent political engagement India is seeking with Indian Ocean states. According to Chatterji (2015) the security-based approach is a response to protect the sea-lanes of communication (SLOC) that transport India’s energy resources as well as to increase the state’s ability to extract resources from newer distant markets.
(viii)The new reality of geostrategy within Asia, with China acting aggressively in both the Indian Ocean and South China Sea, is forcing India to abandon its traditional non-aligned approach and move to aggressively engage its immediate neighbourhood.
The importance of the African continent and renewed focus on East Africa in particular has been visible in the political and economic engagement of the Indian state. In 2011 India imported over 21% of its total oil and gas imports from 8 African countries, with India’s national oil company OVL planning to invest $12 billion, focusing primarily on African connections. (Pradhan 2012) In addition, a joint-venture with ONGC and the Mittal group announced a $6 billion investment in Nigeria to set up a refinery, power plant, and railway infrastructure. (Pradhan 2012)
The Chief Executive of the world oil and gas assembly, Narendra Taneja, has been quoted in Pradhan (2012), stating that ‘today’s growth story is India and in 15 to 20 years the growth story will be Africa. India wants to be in Africa as a strong partner.’ There is a renewed focus on East Africa due to historical connection and the influence of the Indian diaspora within the economic sector of several African states. In addition, the Indian state feels that governments in East Africa are becoming more transparent and willing to do business with Indian firms. Several Indian companies have already been engaging with East Africa for export markets as well as to provide new segments for products and services. As an example, one of India’s largest telecom providers, BHARTI Telecom, is currently one of Africa’s biggest telecom service providers. But in spite of Africa’s potential, India has been slow to engage due to the perceived inability of the state to compete with China in resource-seeking on purely commercial terms as well as the political difficulties of engaging with fairly unstable states in the region.
We attempt to look at this issue through an analysis of India’s involvement in Kenya. The state of Kenya in Africa was chosen partly due to its historical connections to India and the researchers access to key political and economic elite within the Kenyan state. Consideration was also given to Kenya’s status as a new oil producer state, the role of the Indian diaspora in its development, and its recent key engagement with Asian powers. India’s NOC, the Oil and Natural Gas Commission (ONGC), through its overseas exploration subsidiary ONGC Videsh (OVL), has been reported to be considering the takeover of Tullow Oil PLC in Kenya. (Verma 2014) By taking over the company, the Indian state through OVL will have access to existing oil fields in the Turkana region of Kenya as well as the Jubilee oil field in the offshore waters of Ghana. (Verma 2014) This study focuses on three key aspects: the resource-based view approach used by firms; the institutional context of how firms deploy a mixture of resources and institutional capabilities to obtain the best possible competitiveness advantage; and how the state creates and fosters specific policy and institutional environments that support these strategies.
Figure 1 :Author Analysis of existing state owned Oil Assets
Some of the resource-seeking activities of the Indian state in key African markets from (Pradhan 2012) are:
(i)Nigeria- ONGC and the Mittal group. Another private firm, the Essar group, is reported have procured exploration and production blocks in Nigeria as well. The Gas authority of India Ltd (GAIL) is also looking to invest in a liquefied natural gas plant in Nigeria.
(ii)Egypt – The Gas authority of India Ltd (GAIL) is reported to have entered into a joint venture with Egyptian natural gas (NATGAS) to distribute gas in Egypt.
(iii)Mozambique- Reliance industries and the Essar group have sought official government permission to bid for new exploration and production blocks.
(iv)Sudan – ONGC Videsh (OVL) was expected to invest $200 million in a 741 km pipeline that would link Port Sudan with the capital, Khartoum.
(v)Mauritius – In March 2006 India signed an MoU with Mauritius for the exploration of its offshore waters
(vi)South Africa- India’s negotiating to set up a compressed natural gas network.
(vii)Kenya – ONGC Videsh (OVL) plans to take over Tullow Oil PLC. By taking over the company, the Indian state through OVL will also have access to the offshore waters of Ghana.
Despite historical closeness to the continent as well as geographical proximity, the Indian state has not deployed any of its diplomatic assets or soft power because of the lack of institutional will to truly engage the African continent. The geographical proximity of Africa is one of the key reasons why there was renewed interest in Africa as a market and also due to the resources available in offshore waters. The African continent provides India with a wealth of opportunities in an ocean that the Indian state has dominated. Most of the African states around the Indian Ocean, like South Africa, Mozambique and Tanzania, have historically attracted Indian investment and trade partnerships. In addition, India has been working to nurture relations with other oil-producing states like Nigeria, Ghana, Equatorial Guinea and Cote d’Ivoire. For example, in 2011 India signed a uranium agreement with Namibia and has also used state-owned companies like ONGC Videsh, private owned firms like the Tata group, and Vedanta resources to buy stakes in key resource assets. The potential of Africa as an alternative to dependence on the Middle East was also pursued by the Indian government through special government-to-government supply contracts as well as through special lifting quotas of oil resources. There is still much to be done to see the full realization of Indian development on the African continent. But progress is being made and the future will likely only see more intensive engagement and pursuit of mutually beneficial activities. Much of the literature today focuses on China’s presence in Africa. May this be the first step in making more realize how important a player India will be there as well.
(*) Andrew Amayo is a member of the faculty at Birmingham City University in the UK.
U.S. Strategic Engagement in the Bay of Bengal: Navigating Superpower Rivalry
Over the past two decades, the geopolitical landscape of the Indian Ocean has undergone a profound transformation. China, once viewed the Indian Ocean as the “Far Sea” has enhanced its influence in East Asia and expanded its reach as far as Europe. India has emerged as a dominant maritime force in the Indian Ocean. Meanwhile, to contain India, China has invested billions of dollars in South Asian nations, including Afghanistan, Pakistan, Bangladesh, Nepal, Sri Lanka, and Myanmar. This strategic maneuver, coupled with China’s strong presence in the South China Sea has left the Bay of Bengal as a focal point for Washington’s ambitions to assert dominance in the Indo-Pacific region.
The preceding half of the century saw the United States and its allies primarily focused on the Middle East and Africa. Their approach often involved aggressive tactics like regime changes, intimidation, and, in some instances, the elimination of perceived threats. In contrast, China adopted a “soft power” strategy in East and South Asia with non-interference in domestic affairs and economic and infrastructural developments. However, as the new century dawned, Beijing’s relations with South and East Asia began to expand and deepened significantly in line with its broader efforts to ‘Go Global’.
This transformative shift has placed Beijing in a formidable position to compete with Washington at a time when Indo-Pacific nations increasingly lean towards China. Consequently, a significant strategic maneuver has unfolded by the US, centering the Bay of Bengal, particularly in Bangladesh.
For nearly two decades, Washington’s priorities in South Asia were significantly influenced by the conflict in Afghanistan. Concurrently, a strategic partnership with New Delhi was evolving within the geopolitics of the Asia-Pacific, later the Indo-Pacific. President Donald Trump first introduced Washington’s ” Free and Open Indo-Pacific (FOIP)” vision. Washington’s Indo-Pacific Strategy (IPS) is marked as the beginning of a US-led alliance aimed at containing China. However, China’s soft power tactics have ensnared and indebted nations along the Indo-Pacific shorelines.
China’s strategic infrastructure projects, including seaports like Gwadar in Pakistan, Hambantota in Sri Lanka, and Kyauk Pyu in Myanmar, as part of the “String of Pearls” strategy mark to contain India and secure a strategic advantage in the Indo-Pacific region. China’s relations with North Korea, Indonesia, Thailand, Sri Lanka, Maldives, Bangladesh, and Myanmar have successfully counterbalanced the US and Indian geostrategic maneuvers. Beijing forced New Delhi to devote time and resources to its neighbors rather than extend influence into East Asia. Subsequently, India’s Bharatiya Janata Party(BJP) government could not substitute China’s role in its neighbors. That is why, Washington’s supremacy in the Indo-Pacific is now at stake and necessitates a more robust, action-oriented approach with the Bay of Bengal as a prime theater to establish its hard presence.
In response, the United States has reevaluated its geostrategic approach towards the region to make its policies less about influencing the allied governments and more about engaging with people-to-people in South Asian nations. While, the United States sought to make the BJP see China through its eyes, and BJP also tried to showcase Indo-Pacific nations through its eyes. But, in the end, Washington has not gained any geopolitical leverage from India’s BJP. While the USA was engaged with countering extremist groups in South Asia and sought to increase the capability of those nations to fight against terrorism, at that time, China was enhancing cooperation, low-cost consumerism, and people-to-people engagement in the Indo-Pacific region.
India’s historical ties with Russia, its non-alliance membership, and its inability to prevent the expansion of BRICS have irked the US. In the last G20 summit, India’s diplomatic maneuvering on the Russia-Ukraine conflict further strained its relations with Washington. Furthermore, internal issues within India, such as BJP’s handling of human rights, and freedom of expression have dampened Washington’s enthusiasm for partnership with Prime Minister Narendra Modi. The unfolding events exposed India’s vulnerability when sandwiched between the Chinese and Russian blocs from all sides.
Bangladesh, a South Asian nation sharing borders with India and Myanmar has long maintained a balanced foreign policy. So far, Bangladesh has also maintained balanced relations with India, China, and the USA. But, over the past decade, substantial Chinese investments in multi-billion-dollar projects have converged with Prime Minister Sheikh Hasina’s development agendas. It has raised the eyebrows of US policymakers and they have found China’s massive influence over Bangladesh. Moreover, Sheikh Hasina’s proposal to China for building a deep sea port in Sonadia made skeptical India, Japan, and the US. According to PM Hasina, the US expressed the intention of establishing a naval base in the Bay of Bengal and this proposition met with rejection by her government caused discontent among the Western powers. Hasina’s government stance is also not aligned with the US’s approach in Arakan of Myanmar.
Washington has dissatisfied with the BJP’s approach towards China. When Barack Obama questions India’s territorial integrity that means Washington is taking an assertive posture toward South Asia. The US-backed Canada’s accusation of the BJP government for Hardeep Singh’s murder has tarnished the diplomatic relations with the Western powers. Once India became preoccupied with domestic issues would create an opportunity for the West to destabilize Bangladesh. The US seeks to establish an independent and puppet government in Arakan to contain China’s ascent.
China is always one step ahead of the USA in Indo Indo-Pacific region. Sino-Myanmar bilateral relations are very warm, in terms of economic and military cooperation. China’s influence in Myanmar is further evident by the Rohingya crisis. China considers Rohingya Muslims as its potential threat. The China-backed military junta in Myanmar is facing widespread civil protests, armed resistance from ethnic insurgent groups, and civil defense forces backed by the National United Government(NUG). NUG has acknowledged and accepted the arms struggle of the Arakan Rohingya Salvation Army (ARSA), which has a deep-rooted connection with the ISI( Pakistani espionage agency). Both NUG and ISI have strategic ties with the US. Hasina’s government stance on ARSA may not align with US expectations.
The Western powers have a keen interest in the golden triangle of Bangladesh Hill track, Mizoram, and Arakan areas, which are very rich in mineral resources. So, Beijing has worked to destabilize this region with the support of the Myanmar military and the Kuki-Chin nationalist front, a banned ethno- nationalist and separatist political organization. The strategy yields geostrategic advantages for China over India and the US.
PM Sheikh Hasina has openly lambasted the intention of the USA which does not want the Bangladesh Awami League in power. That is why we can see proactive measures taken by Washington to oust the ruling government. The USA emphasizes human rights, freedom of expression, and fair electoral practice, then what about Saudi Arabia, Syria, Egypt, and Israel? Washington previously used a Visa restriction policy for fair elections in Nigeria and Uganda, after the election was held. But, in Bangladesh, it was executed before the election. That means a fair election is not an issue for the Western powers. PM Hasina also refused to join the military alliance in QUAD. To contain China, Washington needs bold strategic maneuvers in the Bay of Bengal, necessitating reliable partners in India and Bangladesh.
Bangladesh and other South Asian nations find themselves at the crossroads of superpower rivalry. A crucial time is ahead for these nations. To survive this crisis, national unity and political acumen are required to navigate this turbulent era. Last but not least, no Superpower will go against the local populace’s support. History attests that without it, Superpowers cannot remain in foreign lands, despite the presence of the fifth columnist. This historical lesson is evident in Bangladesh’s struggle for independence in 1971 and Afghanistan recently.
The Significance of the United Nations High Seas Treaty for Bangladesh
As the sun sets below the horizon over the Bay of Bengal, Bangladesh is at a pivotal juncture in its distant past. The state of the seas is crucial to Bangladesh’s economic development and sustainability in the future because the country’s waterways and maritime heritage serve as a major defining feature. Thus, the United Nations High Seas Treaty in 2023 provides Bangladesh with a once-in-a-generation chance to safeguard its interests and promote sustainable growth in an age of mounting international challenges.
The historic treaty to protect international waters from exploitation, oil extraction, and climate change has been signed after two decades of talks under the UN Convention on the Law of the Sea. In March of this year, countries reached an agreement on a worldwide commitment to protect marine life, and in June, the United Nations officially adopted the treaty for the protection of the world’s seas. The treaty was ratified by 67 nations on September 20, 2023. Under this treaty, the UN has recognized international jurisdiction over two-thirds of the seas. This implies that every nation has the right to engage in fishing activities, shipping, and scientific research in that particular region.
To protect vital ecosystems from “extractive activities,” member states will follow the guidelines established by the Treaty on Biodiversity Beyond National Jurisdiction (BBNJ) to establish a marine protected area (MPAs). In this regard, it is considered a vital resource in attempting to achieve the “30 by 30” goal of protecting 30% of the world’s land and sea by 2030. As the signing process is scheduled to go until 2025, experts are optimistic that this will be a watershed moment in the history of marine conservation.
On September 20, 2023, Sheikh Hasina, the Prime Minister of Bangladesh, ratified the treaty to avert the further destruction of the maritime environment caused by overfishing and other human endeavors.
Water is more than a natural resource in Bangladesh; it is essential for survival. Bangladesh is often referred to as the “Land of Rivers” due to the country’s extensive river network. Water is are intricately interwoven with society, economy, and culture. The waters of the Bay of Bengal, which extend into the high seas, play a vital role in our daily lives, supplying us with fish—a primary source of nutrition for millions—and connecting us to the rest of the world. Under the provisions of the new treaty, countries will share genetic resource profits equitably. The Treaty is a forward-thinking piece of international law because it gives developing and least-developed nations such as Bangladesh a voice by promoting capacity development.
From the magnificent Royal Bengal tiger to the mysterious Irrawaddy dolphin and a variety of sea turtle species, Bangladesh is home to a diverse maritime ecosystem. However, overfishing and habitat loss pose major hazards to numerous species. The United Nations High Seas Treaty seeks to establish marine protected zones in international waterways, recognizing the interdependence of oceans and coastlines. The initiative is commensurate with Bangladesh’s commitment to marine life conservation. This treaty makes an explicit effort to ensure that everyone, including developing and underdeveloped countries, benefits from a shared space, a principle that has been neglected for decades in international agreements, particularly in terms of global commerce.
The issue of overfishing is a problem on a worldwide scale, and Bangladesh is not an exception. In the Bay of Bengal, there are several instances of local fishermen having to compete with foreign vessels. As the high seas are inaccessible without using enormous amounts of energy and money, this is crucial information: 97% of commercial fishing boats in the high seas are registered to higher-income nations. Countries with lower incomes are frustrated by the fact that fish migrating to their waterways are now being caught by wealthy nations. The pact seeks to solve this problem by encouraging responsible fishing techniques and enforcing strict rules in international waters. This not only safeguards Bangladesh’s fishery industry but also contributes to global efforts to reduce overfishing.
Bangladesh is at serious risk from climate change as rising sea levels submerge agriculture in salt water and force entire coastal villages to relocate. Due to its strong link with atmospheric CO2, the ocean is vital to climate change. Again, marine bacteria that break down methane could make biofuels. By addressing climate change globally and transforming clean energy, the deal indirectly helps Bangladesh. International cooperation to reduce greenhouse gas emissions and protect vulnerable coastal areas from climate change is enabled under the pact.
There has been a rise in transnational threats, including piracy and illicit fishing in the Bay of Bengal. The UN High Seas Treaty is anticipated to increase maritime safety by encouraging governments to collaborate and share intelligence. This means a safer marine environment for Bangladesh, where fishermen have no reason to fear for their safety and criminals have no desire to leave.
There may be a palpable concern about obtaining sufficient funds for the treaty’s implementation. By establishing a shared trust fund to pay for technological transfers, capacity building, and training for low-income governments so they can participate in scientific missions and development, the Treaty aims to offer a framework for the equitable distribution of high seas earnings. The International Union for the Conservation of Nature estimates that $500 million will be required initially and yearly $100 million may be needed for a special implementation and capacity-building fund.
Despite its complexity, such as the potential harm of deep-sea mining on sensitive ecosystems, world leaders and environmental activists are optimistic about the treaty. According to Mads Christensen, the Executive Director of Greenpeace International, “we welcome so many governments signing the UN Ocean Treaty. This sends a powerful signal to the world that governments will maintain momentum towards protecting 30% of the oceans by 2030, after the historic Treaty agreement back in March. But this signing is a purely symbolic moment, now politicians must bring the Treaty home and ensure it is ratified in record time”.
Although Bangladesh is devoting a lot of resources to the blue economy and other development initiatives, environmental deterioration and climate change are major concerns. In the context of a global landscape characterized by enormous environmental and climatical concerns, the United Nations High Seas Treaty emerges as a source of optimism and promise for the nation of Bangladesh. It guarantees the continued success of the “Land of Rivers” and the protection of the waterways that connect us to the rest of the globe. The importance of this deal to Bangladesh goes beyond politics and directly threatens the country’s survival. Let us seize this opportunity as we navigate the murky oceans of the 21st century and collaborate with the rest of our neighbors to establish a safer, more prosperous maritime future.
No Alternatives for Taliban but Danger of Future Civil Conflict
Events and processes in Afghanistan are moving according to a negative scenario. Despite the significant information blockade, there is still some news regarding the situation in Afghanistan. The country’s economy is deplorable and has no significant moves towards stabilization. The humanitarian situation is stable but critical. Political repression against the Taliban’s opponents continues and became systemic. And it mainly occurred against national minorities, in particular Tajiks and Hazaras. The actions of global terrorist groups also cause particular concern and warning among reliable international players. Statements regarding threats from international terrorists are made by the UN, the USA, India, and the countries of the European Union.
Paradoxically, despite the difficult economic and social situation, political transformations are still problematic to foresee. Afghanistan under the Taliban run is a classic case from the theory of political science of a rigid militarized authoritarian regime with average legitimacy. The masses cannot express their political views given repressions by government institutions. There is no rule in Afghanistan yet that could challenge the Taliban nationally. Currently, and possibly in the mid-term, there is no alternative to the Taliban. The opposition, consisting of national minorities, does not have the necessary military potential and support among the population. Regardless, international diplomatic circles and representatives of the world’s leading countries actively explain to the Taliban leaders that such a situation won’t last forever. The world centers of power are not interested in the total destabilization of Afghanistan and the beginning of a civil-military confrontation there. As the socio-economic situation of the Pashtuns, who form the core of the Taliban, deteriorates, contradictions can result in an armed uprising. And even the most oppressed ethnic groups will sooner or later begin to resist the authoritarian control of the Taliban.
One of the factual aspects of possible future destabilization could be Pakistan’s policy. Even though Islamabad is the key creator, sponsor, and mentor of the radical Islamist movement, which used terrorism as a method of political struggle, there are certain contradictions between them. In September, the Pakistani leaders decided to expel all Afghan refugees illegally living in the country. According to Pakistani media, this means that about 1.1 million Afghans will go to Afghanistan in the near future. The Pakistani government states that this number of Afghans have fled to Pakistan in the past two years — in addition to several million others living in the neighboring country for years. The decision to expel illegal Afghan refugees was made against the background of the fight against terrorism, currency smuggling, and illegal trade in sugar and fertilizers.
Ariana News informs that the plan to deport more than 1.1 million Afghan refugees was supported by the government and the Pakistani Foreign Ministry. It also means the Ministry of Internal Affairs of Pakistan consulted with all interested parties, including the Taliban. The Pakistani police have raided Afghan migrants over the past few months. Hundreds have been arrested, and many have already been dispatched homeland. Most Afghan migrants are Pashtuns from the poorest rural areas, but their mass flow to Afghanistan will lead to additional economic and social difficulties.
The contradictions between the Taliban and Pakistan also lie on a different plane. So, the recent attacks by the Pakistani Taliban, also known as the Tehreek-e-Taliban Pakistan or TTP, wreaking havoc, paints an alarming picture of rising instability across Pakistan. Especially the TTP’s recent incursion into the Chitral district of Khyber Pakhtunkhwa bordering Afghanistan is very concerning for the Pakistan military apparatus. According to the Pakistanis themselves, after the seizure of power in Kabul, terrorist groups intensified on the territory of Pakistan. Before the Taliban’s victory, official Islamabad spread the narrative that the Afghan and Pakistani Taliban were unrelated. However, today, it is becoming evident that this is not the case, and strengthening one unit leads to activating another.
It is difficult to predict the political events in Afghanistan, but it is evident that without attention from the responsible world centers of power, destabilization and strengthening of the international terrorist underground is unavoidable.
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