The United States should launch a Marshall Plan-like initiative to reinforce economic cooperation between India and Pakistan Previous posts (here and here) have highlighted how growing economic engagement is now the driver of the peace dialogue India and Pakistan launched a year ago. The guiding principle is the so-called “Chinese model” – that is, the two countries pattern their ties along the lines of the India-China relationship, which combines broadening economic integration, frequent interactions between the national leaderships, and pragmatic diplomacy focused on incremental gains.
If enhanced trade ties were to take hold between South Asia’s largest economies, they would produce significant commercial and (eventually) security dividends for both countries and indeed the entire region. So it’s worth considering what the United States, the most significant extra-regional actor in South Asia, can do to reinforce this effort, which if it bears fruit would have a very positive impact on U.S. security interests.
One tentative by-product already evident from the Chinese model is New Delhi’s new willingness to reopen discussions on the perennially-inflamed dispute over the Kashmir region. The long-running territorial ructions over Sir Creek and the Siachen Glacier also seem ripe for the diplomatic agenda.
The sense of bilateral optimism was on full display at last Friday’s inauguration of a new customs facility at the Attari-Wagah border crossing that lies midway between Lahore and Amritsar. Indian officials used the occasion to announce they would rescind the long-standing prohibition on foreign direct investment from Pakistan. Home Minister Palaniappan Chidambaram, a senior member of Prime Minister Manmohan Singh’s Cabinet, also called for dismantling all bilateral trade barriers and hinted that a greatly liberalized visa regime for Pakistani visitors is in the works.
Clear skies over Asia’s new foreign investment landscape?
Compounding the fallout of the US–China trade war, the global pandemic and recession have caused considerable speculation on the future of foreign investment and global value chains (GVCs). But though there is likely to be some permanent change, it will probably not be as great as politicians expect.(more…)
How higher US bond yields will impact Asia Pacific bonds
As financial markets started pricing in stronger US economic growth and inflation because of Joe Biden’s stimulus plan, US bond yields have risen, causing ripple effects across the world, including in APAC.
Following the rise in US bond yields in response to Joe Biden’s stimulus plan and amid higher inflation in some economies, Asia Pacific bond yields have risen significantly as well, especially in Southeast Asia, India, Hong Kong, and Australia. However, Northeast Asian bond yields have risen little.(more…)
Subscribe via Email
Thai baht becoming the region’s worst-hit currency in COVID pandemic
According to data from its tourism ministry as well as the World Bank, Thailand had only a little over 34,000...
Asia’s slow rate of vaccination is a thorn in the region’s economic recovery
Southeast Asia has been hit badly. Daily infections for Indonesia, Thailand, Vietnam are at their worst, on a seven-day moving...
TAT expects 850 billion baht ($25.7 bln) in tourism revenue after successful reopening
The Tourism Authority of Thailand (TAT) has set this year’s revenue target at 850 billion baht, 300 billion of which...
Download 1xBet mobile and play all over the world
Placing profitable bets or playing in a casino is now possible comfortably even without being tied to a computer. It...
3 ways Asia can recover from the COVID-19 pandemic faster
Countries in the East Asia and Pacific region will benefit from cooperation in three major areas: vaccine deployment, reviving sectors...