Essential Business Priorities in a Changing World
The Hindu Editorial Analysis
Introduction:
- Global Economy Stabilization (2024): Global economy stabilizes post-crisis, despite ongoing geopolitical risks. G-20 economies show varied growth; some growing rapidly, others facing setbacks.
- Opportunities for Businesses: Potential for businesses to leverage new opportunities for inclusive growth and broader developmental gains.
B-20 Process and Emerging Economies:
- Emerging Economies Leading B-20 (Last 3 years): Led by emerging economies, B-20’s agenda supports inclusive growth.
- Focus on Global South: South Africa will take over B-20 leadership, continuing the focus on inclusive growth, bringing together advanced and emerging economies.
- Businesses’ Role: Businesses must align with global challenges, shaping policy for inclusive growth and development.
Key Imperatives for Inclusive Development:
- Equitable Growth:
- Skill Development: Businesses must focus on skill development, especially for women. Tailored skilling/upskilling through partnerships with academic institutions is vital.
- Financial Access: B-20 Brazil emphasizes financial inclusion and diversity policies. India’s Jan Dhan Yojana (530 million accounts) offers lessons for global financial access.
- Africa’s G-20 Inclusion: Africa’s G-20 inclusion creates new business opportunities in the young, rapidly growing continent.
- Food Security & Sustainability:
- Sustainable Food Systems: Essential pillar for sustainability, driven by technology (e.g., precision farming) to combat global food crises due to climate change.
- Business Role: Businesses can reduce food waste, promote sustainable agriculture, and collaborate with governments to improve food security.
- Resilient Global Trade:
- Strengthening Trade: Resilient global trade flows are crucial for growth but are hindered by national security concerns, rising tariffs, and unfair trade practices.
- WTO’s Role: Strengthening the World Trade Organization (WTO) to counter unfair practices is necessary. Clear environmental measures are needed for businesses.
- Digital Transformation & Innovation:
- AI for Common Good: AI should be harnessed responsibly for healthcare, climate, and resource management. Businesses must engage youth in innovative solutions.
- Tech Investments: Corporates should invest in social tech startups and STEM talent, focusing on positive societal impact.
- Sustainability Mission:
- Net-Zero Transition: Businesses need to adopt fair climate policies for carbon mitigation, supporting small and medium enterprises with financial aid.
- Renewable Energy: Investment in renewable energy sources, biofuels, and green hydrogen should be promoted.
- Circular Economy: Businesses should integrate circular economy practices to promote sustainability.
Way Forward:
- Corporate Governance: Businesses must adopt the highest standards in governance, ensuring ethical operations beyond compliance. This builds trust with stakeholders and enhances the ease of doing business.
Conclusion:
- B20 Global Institute: Established during India’s leadership, the B20 Global Institute will continue to push policy alignment and action for business competitiveness and monitor outcomes globally. Businesses must help achieve common global aspirations through proactive involvement in this process.
India’s Choices in a Bipolar World
The Hindu Editorial Analysis
Introduction:
- Key Meeting (2020): Relations between India and China strained after the June 2020 Galwan Valley clash, killing 20 Indian soldiers.
- Ajit Doval – Wang Yi Meeting (2023): Diplomatic engagement between India and China could improve following this meeting at the BRICS National Security Advisers’ event in St. Petersburg.
U.S. and China Relationship:
- Economic Interdependence: The U.S. is the largest investor in China, and China holds the most U.S. Treasury Bonds.
- Cold War vs. Today: Unlike the U.S.-Soviet Cold War, the U.S. and China are connected through trade, tourism, and education. Over 350,000 Chinese students are in the U.S.
Evolving Bipolarity:
- Cold War Era: U.S. and U.S.S.R. divided the world with nuclear arsenals and ideological rivalry. This ended with the advent of globalization.
- China’s Rise (Post 2008-09): China’s rise, fueled by American investment, has created a global power challenge. China has surpassed the U.S. in manufacturing, and sectors like 5G are key battlegrounds.
Sino-American Rivalry:
- New Bipolarity: Unlike Cold War’s sharp division, today’s Sino-American rivalry is marked by “competitive coexistence” or “cold coexistence.”
- De-risking vs. Decoupling: U.S. aims to “de-risk” its ties with China, focusing on mitigating risks without severing relations entirely.
Military Parity:
- Chinese Military Growth: China’s navy now has more battle-force ships than the U.S., and its air force could become the largest by 2027. However, a significant gap remains in military capabilities until then.
Ideological Differences:
- No Ideological Battle: Unlike the Cold War’s capitalism vs. communism debate, Sino-American rivalry is not about ideology. China is focused on global hegemony, not spreading communism.
Russia’s Role:
- China-Russia Axis: Russia, though a smaller power economically, aligns with China. Josef Joffe calls this a “Two-and-a-Half Power World.”
Indo-Pacific Strategy:
- Quad & AUKUS: India, along with the Quad (U.S., Japan, Australia), and AUKUS (U.S., U.K., Australia), is part of a strategic shift in the Indo-Pacific to counter China’s ambitions.
Conclusion:
- India’s Approach: India must balance its deepening ties with the U.S. while maintaining sovereignty and addressing the Chinese land threat. Economic engagement with China, military deterrence, and promoting geopolitical interests are crucial strategies. India cannot be reduced to a pawn in the U.S.-China bipolarity.
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