Obama uses tour for job creation
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US President Barack Obama has just wrapped up a 10-day tour of four Asian countries. Underlining the domestic linkages with foreign policy, his Asia tour was overcast by his Democratic Party's debacle in mid-term elections back home and his popularity rating hitting rock bottom.
But other than seeking to rekindle the power of his charisma in his host countries, most of his agenda in India, Indonesia, South Korea and Japan remained focused on expanding economic opportunities for US companies and specifically generating jobs for US citizens.
Even without visiting China and without mentioning the country directly, Obama's tour of Asia was overshadowed by the "China syndrome" so prevalent among Asian countries. To begin with, his trip covered four of Asia's major economies and G20 member states.
These are also four Asian countries that share rather complicated relations with China and are often paranoid about China's continued rise, especially in the wake of the global economic slowdown.
The economic opportunities in these four countries are only going to be of benefit to the US in exchange for greater strategic and military cooperation. Also, as a self-proclaimed "resident power" in the Asia-pacific region, the US seeks a sustained military presence across Asia-pacific, which remains integral to its concerns about a rising China.
Though Obama could not afford to be seen encouraging anything anti-China, his need to propitiate his hosts is likely to create suspicions in Chinese minds. Mentioning, for example, the US' desire to 'see India as a permanent member' of UN Security Council and urging New Delhi to seek greater engagement in East Asia, lifting the last high-technology restrictions and supporting India's membership for four technology control regimes, are not likely to go unnoticed in Beijing.
This of course came after he had signed business deals worth $20 billion and that are expected to create over 54,000 jobs in America. In addition, the rapidly expanding defense procurements of India from US remain less advertised.
Similarly, his visit to Indonesia, which comes after two earlier cancellations - saw Obama signing a 'Comprehensive Partnership' agreement that includes strategic and economic cooperation at all levels. The visit was also focused on re-enforcing closer relations with this largest Muslim country in the world. More importantly, Indonesia will be the Chair of ASEAN for 2011, when the US will begin formally joining East Asian Summits.
Any lingering notions concerning the innocence of this trip further evaporates as the heat and dust of ceremonies gives way to serious evaluations. The US remains fully aware of its serious differences with all four of these Asian countries, also of its growing dependence on China as a partner and peer power. For instance, while in India, Obama clearly avoided a visit to Bangalore and any mention of his policies on outsourcing. Even when he mentioned his concern about India's nuclear civil liability law, this was only in closed-door meetings. India also made no mention of the Bhopal Gas tragedy or of US military cooperation with Pakistan though these issues will continue to haunt both sides. The left parties of India remained virtually invisible during these interactions.
Domestic opposition and anti-Obama sentiment were visible in Indonesia, reflecting constituencies that fear Indonesia is playing the role of US pawn, thereby hurting its core interests and national pride. But the biggest hurdle for Obama at the G20 summit in South Korea was the second round of massive quantitative easing by the US Federal Reserve that threatens to weaken the dollar and drive up inflation in US. This is an issue of much debate as Obama begins preaching the rationalizing of currencies. It is tough for him to sell his own economic policies or his lack of control on his national agenda while asking others not to resort to devaluations. His arch opponent, Sarah Palin, has already made an issue of it at home.
Most Asian countries are getting concerned about excess dollar inflows. India has already begun taking measures and Indonesia has also responded. If the US wishes China and other major Asian economies to facilitate its economic recovery, then it has to take some of the burden and recognize the new realities of 21st century world.
Some of this has already been occurring in terms of the shifting weight of voting rights at the International Monetary Fund. But when Asian powers negotiated with industrialized countries at the G20 summit in Seoul, the deeper problem remained the lack of consensus and coordination amongst Asian economies. If China is to play a leading role in the evolving world order, then seeking the endorsement and trust of its immediate neighbors and Asian peers remains the first essential pre-requisite for Beijing.
The author teaches at Jawaharlal Nehru University, New Delhi.
