Building resilient and secure economies in the Indo-Pacific

The roundtable was facilitated by Ms. Sunaina Kumar, a Maitri Fellow hosted by the UNSW Institute for Global Development (IGD). It featured discussants from the host organisations; government officials; researchers; and policy practitioners, including some who joined as part of the Australia-India Relations Defence Special Visitors Program.

The discussion was focused on the Indo-Pacific region, which encompasses almost 40 countries, more than half of the world’s population, and faces pressing development challenges.

Indo-Pacific context

The Indo-Pacific has emerged as a leading world economic and geopolitical hub and the centre of global power and wealth, comprising about 65 percent of the world’s population; more than 60 percent of global GDP; seven of the world’s 10 largest standing militaries; and around two-thirds of global trade moves through the region.

Both Australia and India have in recent years embraced the concept of the Indo-Pacific. The roundtable aimed to deepen understanding of how the Australia-India bilateral can work together and contribute to building resilience, economic security, and regional security towards an open and prosperous Indo-Pacific.

The region faces a number of shared security and development challenges. In the coming decades, global strategic planning and competition will predominantly revolve around the region of the Indo-Pacific.

At the same time, the human security challenges in the Indo-Pacific, intensified by the pandemic, the climate crisis, and fragile sovereign balance sheets underline the need for forging a consensus in the Indo-Pacific nations on resilience and sustainable development.

Driving questions

Discussion was driven by the following questions:

1. As the Indo-Pacific gains prominence, addressing economic security and resilience is crucial for peace and prosperity. What are the risks to nations in the Indo-Pacific from attaining resilience and security?

2. Considering the evolving nature of threats, how does the adaptability of minilateral collaborations between Indo-Pacific nations, like the QUAD, the India-Japan-Australia trilateral, or the India-France-Australia trilateral, address emerging challenges of security and resilience?

3. How can India and Australia support collaborative efforts between Indo-Pacific economies for partnerships that facilitate knowledge-sharing and drive innovation and prosperity? Who are the stakeholders and institutions that can lead this?

4. How can developing countries of the Indo-Pacific take advantage of the growing relations between India and Australia to ensure that progress in connectivity, climate change and renewable energy, inclusive development, and sustainable infrastructure, remain a central priority of the region?

Emerging themes

Discussants highlighted avenues for Australia-India cooperation in the region and interlinkages between security and development. They explored how India and Australia benefit from a prosperous and resilient Indo-Pacific and the ways they can work together for the prosperity of the whole region. Some interesting themes emerged from the discussion, which are worth further exploration:

Debating the divisiveness

The Indo-Pacific is not just a geographic expanse, but a dynamic region. With the growing importance of the region, it is crucial to acknowledge that the term continues to be divisive. Some countries, like South Africa and the littoral states in the western Indo-Pacific, feel excluded from the concept and conversations on the Indo-Pacific. These are countries that are critical for delivering sustainable development in the future. India and Australia can play a more dynamic role in the broader region by engaging these countries.

Overcoming the trust deficit

There is a legacy of mistrust and suspicion in many of the countries in the region, based on a history of extraction and colonialism, and neighbourhood relations, many of which were born out of conflict.

There is a need to reimagine international relations beyond the traditional transactional ways, and one way to do this is to prioritise the interests of the people over national priorities. The traditional instruments of statecraft may not be sufficient, and the role of independent institutions like universities and think tanks becomes important for building partnerships, and for identifying community priorities.

Engaging with small island states

Australia and India, which are deeply embedded in the region and are vulnerable to climate change, should take the lead in building resilience through collaborative efforts to support small island states. The region faces significant challenges and climate change stands out as an existential threat. Many of the Small Island Developing States (SIDS) will need new strategies to engage with as they are beginning to push back and hold those responsible for the climate crisis to account. Some of these states will also be graduating from least developed to middle-income status in the years to come and will lose access to official development assistance. It is crucial not to impose solutions but to work with these states based on their priorities.

Minilateral and trilateral cooperation mechanisms

Minilateral cooperation systems like the QUAD and trilateral partnerships have emerged as important mechanisms to move forward the interests and ambitions of bigger powers in the Indo-Pacific. They have been effective in enhancing regional security cooperation and development cooperation. They are nimble and adaptive and are driven more by function than form. But, given that most countries in the region are not a part of these groupings, it will be important to build habits of cooperation that go beyond bloc-style competition.

Redefining resilience

The notion of resilience provides a useful framework for the ways in which states may engage with challenges and risks. In the context of the Indo-Pacific, there are multiple ways to understand or define resilience as it is emerging in the economic order in areas like security, supply chains for trade and energy, climate and environment, infrastructure and connectivity, cybersecurity, and emerging and critical technologies. However, resilience requires enhanced cooperation and placing a premium on trust and connection.

Concluding reflection

The Indo-Pacific will continue to be the most significant region for global politics and economics.

The region, which faces multiple threats and risks, from geopolitics to climate, can also accelerate inclusive growth and sustainable development by building trust and cooperation between nations and by prioritising resilience. In this context, deepening Australia-India cooperation provides an opportunity to enhance regional stability, promote economic integration, and address shared challenges, ultimately contributing to a more resilient and prosperous Indo-Pacific region.