India and China: Conflict, Competition, and Cooperation in the Age of Globalization

21st February 08 - Dr. Aqueil Ahmad ~ STWR Contributing Writer

India and China are two of the world’s most ancient civilizations. For centuries they shared advanced ideas, inventions, religious and philosophical traditions. But their economies and societies stagnated during the colonial period. In the post-colonial era mutual relations suffered a setback due to political and boundary disputes. In contemporary times they have reemerged as leading techno-economic nations. It is high time for them to move beyond conflicts and start cooperating politically, economically, and technologically for mutual benefits.

Recent developments and exchanges indicate that the ball is already rolling in that direction. Globalization for common good requires coming together rather than falling apart, sharing resources and assets rather than wasting them in endless conflicts. In the context of currently shifting global political and economic power, no two nations are better equipped than India and China to show the world how the common concerns of humanity can be addressed through mutual respect, friendship, healthy competition, and sharing of resources.

Background

India and China are two of the world’s most ancient surviving civilizations. The Chinese built the 4000-mile Great Wall some 2000 years ago, about the time of the birth of Jesus Christ. As an awesome marvel of engineering, most of the wall still stands intact, the only man-made object visible from the outer space. They invented bureaucracy even earlier, thousands of years before Max Weber brought it eloquently to the attention of the western world (Gerth and Mills, 1958). There is not a single country anywhere that bureaucracies do not govern, manage or mismanage, corrupt and plunder, redeem or reform. The Terracotta Army built by Emperor Qin in the 3rd century BC is in almost perfect state of preservation to this day. Some of the greatest inventions that we live by even today came from China, including the gun powder – the most infamous of them all, the paper, paper money, printing, viaducts, dams, clocks, the compass, astronomical observatories, and countless other inventions (Needham, 1954).

As for India, R. K. Narayan, the famous Indian novelist tells the interesting story of his meeting with British philosopher and iconoclast, Sir Bertrand Russell. While extolling the contributions of ancient Chinese thinkers, Russell said to Narayan, “but you Indians created nothing.” Narayan vigorously protested this insulting remark. But Sir Russell kept on repeating, “You Indians created nothing, nothing, nothing.” Exasperated, Narayan got up and was about to walk out when Russell drew him near, looked him in the eye and said, “You Indians gave us the zero, which stands as the greatest contribution to the development of mathematics, and consequently, that of modern science.” Thereupon they embraced each other with delightful twinkle in their eyes.

Indian contributions to algebra, textile, chemistry, medicine, metallurgy, and astronomy in the Ancient and Medieval periods are legion. Sophisticated agricultural practices, architecture, and sewage systems were developed by the engineers in the Indus Valley civilizations of Harrappa and Mohanjadaro (Rahman, 1984; Habib, 1988). The wisdom of the Buddha flowed from India to China, while Confucius’ precepts of compassion, humility, and right conduct by merciful rulers influenced the behavior of emperor Ashoka in the 3 rd century B.C. who inscribed on his commemorative pillars, Satya amar jayte (Truth alone shall triumph).

India and China, along with the rest of the non-western world, lost their edge somewhere during the 16th and 17th centuries when the center of scientific and technological activity shifted to Europe, and later to North America for a set of complex cultural, political, and economic reasons (Needham, 1986). Contacts between these two great civilizations almost ceased during the colonial period because the new rulers of the world did not encourage such contacts. When the contacts were revived in more recent times between a democratic IndiaChina, they turned into conflict and hostility over rival territorial claims in the Himalayan region, the Chinese annexation of Tibet, and the Exile of Dalai Lama into (Dharamsala) India .

Recent Development History

India became a free country through peaceful transition of sovereignty from Britain in 1947. China had a proletarian revolution in 1949 led by Mao Zedong. Both democratic India and Communist China embarked upon ambitious science, technology, and economic development programs through centralized planning. Both emphasized self-reliance through local initiatives, restricting the flow of foreign capital and technology for nearly three decades. During this time, the Peoples Republic of China (PRC) controlled its economy and protected it from outside influences far more than did India. For at least 10-15 years since the revolution in 1949, the only source of foreign capital and technology for China was its ideological partner, the Soviet Union. That relationship began to crack in 1962 because of the USSR’s reluctance to transfer nuclear technology to the Peoples Republic. China continued its isolation and suffered serious stagnation for 20 or so more years, until after Mao’s death in 1976 (Ahmad, 1991).

During this period India also strictly regulated its economy, allowing only partial and highly restricted entry of foreign capital and technology. The Indian economy began to open its door a bit more widely by the middle of the 1980s, at about the same time as did China. By this time, the global economy had already taken hold of the national economies in North America, Europe, and the Pacific Rim. Post-Independence era regulations proved a mixed blessing for India. It missed 20 years of the information technology revolution that was sweeping the world and driving the global economy – remember how the IBM and Coca-Cola were kicked out of India in the middle of 1970s. The private sector stagnated under those regulations. The protected government sector thrived despite its magnificent mismanagement. India’s industrial development suffered. While these negative trends were the legacy of regulations, government policy of self-reliance helped built robust networks of techno-economic institutions and individuals that were ready to march forward when the global economy did finally reach India. Through regulations India was also able to protect its local industries and markets from unbridled speculation and exploitation by multinational corporations (Ahmad, 1998). Let me return to China for a minute.