India's Strategic Foreign Aid: 'The China Factor' in India's Foreign Aid Allocation

다국어 초록 (Multilingual Abstract)

Foreign aid is known to be the primary means through which governments assist each other. Beyond the altruistic incentives for such help, however, there is self-interest involved. Consequently, foreign aid is not always directed towards the states who need it the most, but rather to those, who can contribute to the donor’s strategic considerations. India is one of the emerging countries, which over the past three decades has been expanding its foreign aid in scale and scope. The rationale behind such foreign policy move by New Delhi is argued to be improving India’s international standing. Its biggest rival China, however, is rapidly expanding its own influence and is stepping into India’s strategic space. In this paper we argue that ongoing emerging power rivalry with China is a key determinant in New Delhi’s foreign aid allocation decisions. we analyse India’s foreign assistance for the period 2015-2020 and look for the ‘China factor’ in its allocation strategies. The cases of the Maldives and Mauritius provide evidence for the main argument and show India as a ‘reactive donor’.

참고문헌 (Reference)

1 Manning, Richard, "Will ‘Emerging Donors’ Change the Face of International Co-operation" 24 (24): 371385-, 2006

2 Alesina, Alberto, "Who Gives Foreign Aid to Whom and Why" 5 (5): 33-63, 2000

3 Heinrich, Tobias, "When is Foreign Aid Selfish, When is it Selfless?" 75 (75): 422435-, 2013

4 Aid Data, "Tracking Underreported Financial Flows"

5 Bagchi, Indrani, "Tibetan Leader at Modi’s Swearing in Irks China"

6 Devereux, David R., "The Sino-Indian War of 1962 in Anglo-American Relations" 44 (44): 71-87, 2009

7 Mullen, Rani D., "The New Great Game: A Battle for Access and Influence in the Indo-Pacific"

8 Fuchs, Andreas, "The Needy Donor : An Empirical Analysis of India’s Aid Motives" 44 : 110-128, 2013

9 Dollar, David, "The Increasing Selectivity of Foreign Aid, 19842003" 34 (34): 2034-2046, 2006

10 Scott, David, "The Great Power ‘Great Game’ Between India and China : ‘The Logic of Geography’" 13 (13): 126-, 2008

11 Stuenkel, Oliver, "The BRICS And the Future of Global Order" Lexington books 2020

12 Megal, Jahanzaib, "String of Pearls and Necklace of Diamonds : Sino-India Geo-Strategic Competition in The Indian Ocean" 40 : 21-41, 2022

13 ORF, "Sri Lanka to Review India’s Role in Colombo Port Terminal Work"

14 Mohan, C. Raja, "Samudra Manthan: Sino-Indian Rivalry in the Indo-Pacific" Carnegie Endowment for International Peace 2012

15 Naim, Moises, "Rogue Aid"

16 Mohan, C. Raja, "Power Realignments in Asia:China, India and the United States" Sage Publications 270-290, 2009

17 Shambaugh, David, "Power Realignments in Asia - China, India and the United States" Sage Publications 137-157, 2009

18 Stuenkel, Oliver, "Post-Western World: How Emerging Powers Are Remaking Global Order" Polity Press 2017

19 Boone, Peter, "Politics And the Effectiveness of Foreign Aid" National Bureau of Economic Research 1995

20 Open Government Data, "Platform India"

21 MEA, "Overview of India’s Development Partnership"

22 OECD, "Official development assistance (ODA) - OECD"

23 RAJIVKUMAR, "New Threat Perceptions, Domestic Political Changes and India’s Shifting Strategy toward the U.S.–China Rivalry" 한국국방연구원 35 (35): 253-275, 2023

24 Chaudhury, Dipanjan R., "Myanmar’s Auditor General Cautions Own Govt Against Chinese Loans"

25 Tierney, Michael J, "More Dollars Than Sense : Refining Our Knowledge of Development Finance Using AidData" 39 (39): 1891-1906, 2011

26 Lumsdaine, David H., "Moral Vision in International Politics : The Foreign Aid Regime, 1949-1989" Princeton University Press 1993

27 Laskar, Rezaul H., "Modi, Mauritius PM to Inaugurate Port Louis SC Built With Indian"

28 Miglani, Sanjeev, "Modi Gives $1.4 Billion Aid to Maldives Amid Worry Over its China Debt"

29 Siddiqui, Huma, "Mission Sagar: A Major Milestone in India’s Engagement With IOR Countries"

30 "Ministry of Foreign Affairs, the People’s Republic of China"

31 "Ministry of External Affairs, Government of India"

32 Siddiqui, Huma, "Mauritius Oil Spill: India Sends Help to Clean the Oil Spill"

33 Rehman, Iskander, "Keeping the Dragon at Bay : India’s Countercontainment of China in Asia" 5 (5): 114143-, 2009

34 Pattanaik, Smruti S., "India’s Policy Response to China’s Investment and Aid to Nepal, Sri Lanka and Maldives : Challenges and Prospects" 43 (43): 240259-, 2019

35 Chaturvedi, Sachin, "Indian Development Cooperation: The State of the Debate" IDS 2014

36 FIDC, "Indian Development Cooperation: A Theoretical and Institutional Framework" (7) : 2016

37 Mullen, Rani D., "Indian Development Cooperation Regains Momentum: 7 Main Take-aways From India’s 2019-20 Union Budget"

38 Chaudhury, Dipanjan R., "India-backed Maldives Infrastructure Project to Surpass Scope of Chinese-funded Bridge"

39 Chaudhury, Dipanjan R., "India to Help Myanmar Develop COVID-19 Vaccine to Combat the Pandemic"

40 Malik, Mohan, "India balances China" 4 (4): 345-376, 2012

41 Sen, Sudhi Ranjan, "India Increases Africa Lending in Race to Counter China"

42 Mullen, Rani D., "India Flexes its Foreign Aid Muscle" 111 (111): 154-156, 2012

43 Clarke, Hilary, "In ‘Asia’s Gateway to Africa’ Mauritius, Rivals China and India Compete for the Upper Hand"

44 Kuziemko, Ilyana, "How Much is a Seat on the Security Council Worth? Foreign Aid and Bribery at the United Nations" 114 (114): 905930-, 2006

45 Choudhury, Angshuman, "How India Funds the World : Financial Assistance in the Immediate Neighbourhood" 54 (54): 2019

46 OECD, "GDP long‐term forecast (indicator)"

47 Madhav, Ram, "From China to the Arab World, India is Playing its Geo-strategic Cards Effectively"

48 Lancaster, Carol, "Foreign aid : Diplomacy, development, domestic politics" University of Chicago Press 2008

49 Mesquita, Bruce Bueno De, "Foreign Aid and Policy Concessions" 51 (51): 251284-, 2007

50 Agrawal, Subhash, "Emerging Donors in International Development Assistance: The India Case"

51 Copeland, Dale C., "Economic Interdependence and War : A Theory of Trade Expectations" 20 (20): 541-, 1996

52 Asmus, Gerda, "Does India use development finance to compete with China? A Subnational Analysis" 2021

53 ORF, "Developmental Aid as a Diplomatic Tool"

54 Statista, "Countries that Receive the Largest Foreign Aid from India in FY 2020"

55 Xinhua, "Chronology of China’s Belt and Road Initiative"

56 Chaudhury, Dipanjan R., "Chinese Company Bags Maldivian Island on 50-year Lease"

57 Pandit, Rajat, "China’s Stepped up Moves in Maldives Worries India"

58 Xinhua, "China, Mauritius Sign Free Trade Agreement"

59 Malik, Mohan, "China and India : Great Power Rivals" Lynne Rienner Publishers 2011

60 Shukla, Ajai, "Budget 2019: India Redirects Foreign Aid to Indian Ocean Countries"

61 Berthélemy, Jean-Claude, "Bilateral Donors’ Interest vs. Recipients’Development Motives in Aid Allocation: Do All Donors Behave the Same?" 10 (10): 179194-, 2006

62 Kragelund, Peter, "Back to BASICs? The Rejuvenation of Nontraditional Donors’ Development Cooperation With Africa" 42 (42): 585607-, 2011

63 Dreher, Axel, "Are ‘New’ Donors Different? Comparing the Allocation of Bilateral Aid Between nonDAC and DAC Donor Countries" 39 (39): 19501968-, 2011

64 MEA, "Annual Report 2018-19"

65 MEA, "Annual Report 2016-17"

66 Woo, Byungwon, "Aid For Vote? United Nations General Assembly Voting and American Aid Allocation" 66 (66): 10021026-, 2017

67 Government of Mauritius, "Achieving the Second Economic Miracle and Vision 2030 - Prime Minister Presents Economic Mission Statement"

68 Morgenthau, Hans, "A Political Theory of Foreign Aid" 56 (56): 301-309, 1962