In a significant address that shed light on the shifting sands of international relations, External Affairs Minister Dr S Jaishankar declared that political considerations are now overwhelmingly taking precedence over economic logic in global affairs. He made these pivotal remarks while accepting an Honorary Doctorate from the prestigious Indian Institute of Management, Calcutta, on Saturday.
A New Global Reality: Politics Over Economics
Dr Jaishankar, a seasoned diplomat, did not mince his words. He explicitly stated that in the contemporary era, politics 'trumps' economics, clarifying that his choice of words was a deliberate statement of fact and not a mere play on words. This observation points to a fundamental recalibration in how nations, particularly major powers, are conducting their international engagements.
The ceremony took place at the IIM Calcutta campus in Kolkata, where the minister was honoured for his contributions. His speech provided a rare, candid look into the complex machinery of international diplomacy, moving beyond theoretical concepts to explain the practical realities shaping the world order.
Decoding the US-China Dynamic
Central to his address was an analysis of the relationship between the United States and China, arguably the most consequential bilateral dynamic in the world today. Jaishankar explained that the traditional view, which assumed that deep economic interdependence would guarantee political stability and cooperation, is being upended.
He highlighted that strategic competition, national security concerns, and ideological differences are now driving policy decisions in both Washington and Beijing, often at the expense of pure economic benefit. This new paradigm, where geopolitics dictates trade and investment flows, creates a more volatile and unpredictable international environment for all nations, including India.
Implications for India and the World
For a country like India, understanding this shift is not an academic exercise but a strategic imperative. Jaishankar's remarks underscore the challenges and opportunities that arise in a world where political alliances can rapidly alter economic landscapes.
This reality necessitates a foreign policy that is nimble, principled, and focused on safeguarding national interests in a multi-polar world. The minister's insights, delivered on November 30, 2024, in Kolkata, serve as a crucial framework for interpreting global events and formulating India's path forward amidst great power rivalry.
