With their phenomenal growth rates, India and China are surging ahead as world economic powers. Due to increasing instability in the Middle East, they have turned to Africa to procure oil to fuel their industrialisation process. Africa’s economy stands to be impacted in various ways due to the increasing interaction with these ‘Asian Giants’.
This book analyses the acquisition of oil blocks by Indian and Chinese oil corporations in eleven West African countries. It describes the differences in how India and China mobilise oil externally to meet their respective goals and objectives. The book examines the rate of return on capital, rate of interest on loans and the ease of availability of loans, the difference in the level of technology and ability to acquire technology, project management skills, risk aversion, valuation of the asset and the difference in the economic, political and diplomatic support received by the Chinese and Indian oil companies from their respective governments. It is argued that the difference in the relative economic and political power of India and China accounts for the ability of Chinese oil companies to outbid their Indian competitors and/or be preferred as partners by international oil companies.
Containing interviews from Indian and Chinese oil company executives, government officials, industry officials, former diplomats and scholars and academics from India, China and the UK, this book makes a valuable contribution to existing literature on India, China and the oil industry in West Africa. It will be a valuable resource for academics in the field of International Relations, Foreign Policy Analysis, Asian Business and Economics.
'Prof. Verma has indeed undertaken an extraordinary study in a record time replete with academic references and records of interviews with the leading personalities involved in policymaking.'
K. Subramanian, Chennai Centre for China Studies
"Breaks new ground […] Its research and arguments lend it methodological rigour."
Arpita Anant, Asian Affairs
Part I Introduction
Part II Conceptual framework and background
1. Neoclassical Realsim
2. India and China in Africa and West Africa
Part III India and China
3. India and China: difference in power and political economies
4. Oil industry in India and China
Part IV Case Studies
5. India and China in Angola
6. India and China in Nigeria
7. India and China in eight countries in West Africa
Part V Conclusion
India and China have many similarities but also many differences. They are both members of BRICS, G20 and other international organisations and regimes. They are also the two most populated countries in the world, sharing a long and respected history of early civilisations and a colonial past that became independent around the same time: India in 1947 and China in 1949. In the 1950’s, they were in the forefront of the Non-Aligned Movement and proposed the five principles of peaceful coexistence or ‘Panchsheel’. These five principles are the cornerstone of India’s and China’s foreign policy.
The two Asian giants with their rapid economic growth are surging ahead as world economic powers. They are emerging powers but are still developing countries. By 2030 both the countries are expected to become superpowers. Ceteris paribus, China will be the largest economy in the world in the next decade. India will become the third largest economy in 2025, the second largest by 2040 and the largest economy by 2060. As their economies grow, their concomitant political, economic and military power will also increase.
This series provides a platform for scholars to exhibit their research on the political, diplomatic, economic and strategic realtionship between these two emerging superpowers.