New Delhi: Pointing towards the mounting global concern over the ongoing Israel-Hamas war, External Affairs Minister S Jaishankar on Sunday said that the ripple impact of what is taking place in the Middle East is still not entirely clear.
Speaking at the Kautilya Economic Conclave, Jaishankar said the consequences of various conflicts in a globalised world spread far beyond immediate geographies while citing the impact of the Russia-Ukraine war.
Jaishankar also highlighted the devastation caused by the COVID-19 pandemic and how the inequities of globalisation were starkly on display during the crisis. “Vaccine apartheid was its most graphic manifestation, when some nations had eight times the stock of their population while others just next door waited for their first vial,” he said.
“A second contributor to volatility is conflict in a globalised world, where the consequences spread far beyond the immediate geography. We have already experienced this in Ukraine,” the external affairs minister noted.
“The ripple impact of what is now taking place in the Middle East is not entirely clear. These particular cases may be the headline news, but in different regions, there are smaller happenings whose impact is not inconsequential,” he said.
The external affairs minister also touched upon the challenge of terrorism and how it is being used as a tool of statecraft, in comments seen as an oblique reference to Pakistan’s support to various terror groups.
“In the domain of violence, there is also the less formal version that is very pervasive. I speak here of terrorism which has long been honed and practised as a tool of statecraft,” he said.
“The basic takeaway for all of us is that given the seamlessness of our existence, any expectation that conflicts and terrorism can be contained in their impact is not tenable. A big part of this is clearly economic,” Jaishankar said.
“But do not underestimate the danger of metastasis when it comes to radicalism and extremism. No danger is too distant anymore,” he added.
Listing various global challenges, the external affairs minister said the last few years have witnessed a rising debt, often resulting from a combination of imprudent choices, unbiased borrowings and opaque projects.
“The working of the global economy has itself added to the concerning side of the ledger. The last few years have witnessed a rising debt, often resulting from a combination of imprudent choices, unwise borrowings and opaque projects,” he said.
Jaishankar said market volatility has been difficult for smaller economies with a narrow trade basket to handle.
“Those highly exposed to tourism or remittances have experienced the consequences of slowdowns very strongly. International financial institutions have not been able to respond adequately, whether due to paucity of resources or lack of priority,” he said.
The external affairs minister also argued that it is necessary now to look at the “directly disruptive” impact of climate events on the international economy.
He touched upon what he described as the “reordering of the global hierarchy”.
Jaishankar observed that the most powerful nations are comparatively not as powerful as they used to be in the past and that “middle powers” have come into their own.
“At least in their particular region, they sometimes have more clout and definitely more skin in the game than those distant,” he said.
“We have seen this clearly in the Gulf and are now seeing it in the Middle East. In different ways, it is happening too in Asia, Africa and Latin America,” he said.
“We, in South Asia, are also more aware that the solutions have to come from within. Whether it is the First Responder operations in the Indian Ocean, Covid-related assistance or the economic support that we gave to Sri Lanka, India is clearly adjusting to this emerging architecture,” the minister added.
Jaishankar also cited examples of how India is responding to evolving geopolitics and geoeconomics.
He said under its G20 presidency, India made the grouping refocus on growth and development, highlighting the distress of the Global South. “And this we did by also sponsoring the permanent membership of the African Union,” he added.
The external affairs minister also noted how India is investing in critical and emerging technologies, including through transnational partnerships. He also highlighted India’s vigorous presence in the semiconductor domain.
Jaishankar talked about how New Delhi is “reimagining and redoing” its global commitments to make those contemporary.
“The Quad stands out in the Indo-Pacific and the I2U2 and the IMEEC in the Middle East,” he said.
While the I2U2 is a grouping of India, Israel, the United Arab Emirates (UAE) and the United States, the India-Middle East-Europe Economic Corridor (IMEEC) is an initiative to boost trade and connectivity.
“We are looking at global hubs, more mutually beneficial FTAs, deeper engagement with Africa, greater development partnerships, currently with 78 countries, and preparing for a larger footprint,” Jaishankar said.
“We believe that the combination of a knowledge economy, digital existence and demographic shifts provides an extraordinary opportunity,” he said.
With inputs from PTI