The Ancient SILK Route- Is it Re-Emerging?

Extending over 4000 Miles (6,500Kms) the SILK Route connected Afro-Eurasian landmass with East and West Asia. It was a route which resulted in trade and commerce between the Romans, Persians, Indians, Egyptians and the Chinese. The route adopted included Land and the Sea.  The Romans exported  Gold, Silver, Wine, Glassware, while the Chinese exported Tea, Silk, Porcelain, India traded in Spices, Precious stones, Ivory, Religion and Pepper. It is believed that it started around the Han dynasty (206BC- 220 AD). Cultures, Trade and Commerce boomed along the Silk route.

Silk route died a long way back, but it has been carried forward by ‘Civilizations’. Many of the nations which participated in the Silk route exist to this day and they do understand the significance of the Trade and Commerce which existed in those days and how it brought prosperity. China, India, Persia ( Modern Day Iran), Egypt, Mediterranean nations like Libya, Lebanon , and European nations like Italy and France have long established credentials of trade and commerce. The new players in this equation are the United States and Western Europe. United States is viewed by many such Asian nations as a replacement of the Ancient Rome which was powerful militarily and economically.

It is therefore but inevitable that various fragments will merge to form a huge trading block which will expand from Asia- Africa- North America. I therefore believe that U.S. posturing in Asia is finding a place for itself than to be a threat. It is in the interest of the United States that it engages with nations like China, India economically and not militarily.

Asian nations do not have a history of waging wars since the end of World War. Many of the nations in this part of the world are Passive, ‘Soft powers’ who are interested in protecting their Trade interests and in pursuit of this, they do use diplomacy, free trade and market access as the new weapons.

China and India have huge, well trained Armed forces, just as any of the nations in the West. They are disciplined and well equipped to manage any internal and external threats. However, China and India have both used their Armed forces for posturing rather than wars and aggression. India has been one of the largest contributors to the United Nations Peace Keeping Forces and they still man borders between Israel and Syria. They are among the largest contributors in Afghanistan and were actively involved in Egypt’s elections after the fall of President Hosni Mubarak.

In the next decade, I see a trend where there will be greater U.S. participation in Asia. Asia will be the new Europe replacing the financial and business hubs of less significant European nations. Beijing, Kuala Lumpur, Jakarta, Singapore, Mumbai, Bangalore would be the new London, Paris, Geneva, Bonn.

The increased engagement of China with United States is better for the world as a whole. U.S.- China trade creates for other nations to engage in trade in a cohesive manner and therefore it results in prosperity and less of wars. I think the United States has a much more mature understanding of Asia as a destination for Trade and Commerce now than what it had Five years ago.

Top Trading partners of China: In Billion$ 2010

• U.S. is the largest engagement partner of China.
• The other significant partners include Japan, South Korea, Germany, Brazil and India.
• What’s the point? All other nations too are Good friends of the U.S.
• What do I see? I see a pattern which connects U.S. with Asian economies ( Developed economies such as Japan, Korea, Taiwan) and the developing economies such as India and Malaysia)

Highlights of Indo-U.S. Trade:

• The two way trade between India and U.S. is expected to grow to 50 Billion Dollars. U.S. exports to India are up by 17.5% and will surpass 20 Billion Dollars Target mark ( U.S. Dept of Commerce India Mission http://trade.gov/indiamission2011/).

• Advanced Technology including in Aerospace, specialized materials, ICT, Electronics and flexible manufacturing systems have been the backbone of this growth.

• Find more information at http://www.ustr.gov/countries-regions/south-central-asia/india

• India is emerging to be the Third largest Financial investor in the U.S. with investments over 7 billion Dollars growing at 60% annually.

• According to a report released by India-US World Affairs Institute and the University of Maryland in partnership with Federation of Indian Chamber of Commerce and Industry (FICCI), “India is the third-fastest-growing-foreign-investor in the US, with Indians having invested $4.5 billion in the US in 2008 and their investments grew by an estimated 60% in 2009.”( http://www.financialexpress.com/news/indian-investments-to-us-grow-60-cross-7-billion/634244/)

• The joint study has found 372 acquisitions by Indian companies in the US between 2004 and 2009 worth $21 billion. This has created an estimated 40,000 employments in the US.

What it means?

• A rising India is focussing on strong and friendly economies such as U.S., The Netherlands and Singapore to invest.
• India looks at engaging with the U.S. at all levels; The Civilian Nuclear deal between the two nations will grow this trade between the two countries exponentially.
• India and U.S. are partners who are looking at not only economic development but also long term engagement which will bring some warmth to the chill prevailing during the Cold War era.
• As U.S. is creating jobs in India, India too is engaged in creating jobs and prosperity in the U.S. This will not only lead to economic relations but also among People to People- that is the true essence of Trade.