ECONOMIC INTERDEPENDENCE AND COMPETITION IN SOUTH ASIA: A CASE STUDY OF REPUBLIC OF CHINA AND ITS BRI (BELT & ROAD INITIATIVE) IN SOUTH ASIA

Abstract

This study explores the consequences of “complex interdependence” with reference to cooperation and competition in South Asia. By taking the theoretical standpoint of complex interdependence, it applies it to the case of China’s role in South Asia to understand whether complex interdependence leads to positive results for cooperation or (to conflicts) not. It becomes imperative to ask this question afresh in this context because the increasing role of China in South Asia through many flagship initiatives like BRI (Belt & Road Initiative) etc. has fueled competition rather than cooperation as the theory would predict. It asks the major question: why complex interdependence leads to conflict rather than cooperative behavior? And what does it imply for understanding globalization and international politics? It understands the consequences of complex interdependence from three perspectives viz China, the United States and South Asian region. The United States an outsider being the traditional power with huge strategic and geopolitical influences in the South Asian region and hence, its existing influence is threatened with the entry of China in a big way. The concept of interdependence is operationalized by defining it in terms of volume of trade, investment and level of infrastructure in the region. The study uses both primary and secondary data. The primary data on connectivity projects are taken from official sources as well as such databases like Reconnecting Asia that document each and every project with all relevant details. Secondly, it also uses data from the World Bank, the IMF and other agencies to trace out long term patterns. Secondary data include reports, academic articles and books published in addition to newspaper reports, print and broadcasted interviews.