Asia Africa Growth Corridor


Context-

An annual meeting of the African Development Bank (AfDB) was held recently in Gandhinagar, Gujarat where he released a vision document on the Asia Africa Growth Corridor

Aim –The AAGC is a roadmap for opportunities and aspirations in Asia and Africa.

      • The idea of AAGC had emerged in the Joint Declaration issued by Prime Minister Mr. Narendra Modi and his Japanese counterpart Shinzo Abe in November 2016.

Key Areas of interest-

      1. Health and pharmaceuticals
      2. Agriculture and agro processing
      3. Disaster management
      4. Skill enhancement

Analysis-

      • China’s OBOR and AAGC are qualitatively different.
      • India is willing to assist Africa as per its priorities and requirements whereas China is more self-centered approach.
      • If Africa looks towards US or Europe for these things, it is very expensive. So, India and Japan are the best in terms of compatibility of interest for Africa
      • China has huge reserves built by  trade surplus over the years which has to be balanced globally.

Some of the expected outcomes are as follows:

      1. Effective mobilization of financial resources
      2. Alignment with socio-economic development and development strategies of partner countries and regions;
      3. Application of high-quality standards in terms of compliance with international standards established to mitigate environmental and social impact
      4. Providing quality infrastructure and taking into account various aspects of economic efficiency and durability, inclusiveness, safety and disaster-resilience, sustainability as well as convenience and amenities
      5. Contribution to the local society and economy.

Conclusion-

China is rapidly expanding itself in Africa therefore, India and Japan do not have luxury of time. They both should immediately initiate a few joint pilot projects involving the companies of India, Japan and a few African countries in identified areas like health care, agriculture and blue economy.


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