Jahangir's World Times First Comprehensive Magazine for students/teachers of competitive exams and general readers as well.
The result of the recent elections according to my observation will yield no effect on the economy of India and its relations with the US at all. The history witnessed that both the Republicans and the Democrats were agreed to acknowledge the importance of India in the world. It was Clinton, a Democrat who reopened the talks with India after the nuclear experiments and again in 2005, it was Bush, a Republican, who signed civilian nuclear deal with India. The Indian factor is indispensible for the US to cope with the strategic challenges faced by the US in Asia particularly and in the rest of the world generally.
The situation of the economy inside the US was also miserable than ever. The newly-elected president had to face the issues like unemployment, declining economy and ballooning federal financial debt. According to experts, the US experienced its worst crisis after the Great Depression. It was estimated that the total loss of the US bank reached at about one-third of the total bank capital.
Obama rightly remarked this situation at the inaugural speech of his presidency on January 20, 2009, ‘Our economy is badly weakened, a consequence of greed and irresponsibility on part of some, but also our collective failure to make hard choices and prepare the nation for a new age. Homes have been lost, jobs shed, business shattered. Our health care is too costly, our school fail too many, and each day brings further evidence that the ways we use energy strengthen our adversaries and threaten our planet. These are indicators of crisis subject to date and statistics.’
The Obama administration tried to deal with these ‘troubling legacies’ by making a number of economic reforms which included Lilly Ledbetter Fair Pay Act, 2009 Children’s Health Insurance, Insurance Programme Reauthorization Act, American Recovery and Reinvestment Act, Credit Card Accountability, Responsibility and Disclosure Act and hiring incentives. In the same way, $ 62 billion money was injected into the auto industry for its recovery. This also brought about 100,000 jobs.
The result of the recent elections according to my observation will yield no effect on the economy of India and its relations with the US at all. The history witnessed that both the Republicans and the Democrats were agreed to acknowledge the importance of India in the world. It was Clinton, a Democrat who reopened the talks with India after the nuclear experiments and again in 2005, it was Bush, a Republican, who signed civilian nuclear deal with India. The Indian factor is indispensible for the US to cope with the strategic challenges faced by the US in Asia, particularly and in the rest of the world generally.
On the other hand, President Obama wanted to have a cooperative relationship with China. But at the same time the previous tenure of Obama was a mixture of good and bad comments against China. During the visit of Chinese President Hu Jintao to the US, Obama said that he wanted to have good relations with China so that they could work together. But at the same time he also criticised the policy of currency manipulation by China. On the defence matter, the US revealed $ 5.8 billion arms scale package to Taiwan in 2011. Similarly, in this year Obama also announced the creation of trade enforcement unit to search the unfair trading practices in China.
In his previous tenure Obama also filed several complaints at the WTO about China which included unfair taxes on the US vehicle imports, China’s unfair subsidy on its auto and auto parts exports and also on its restriction on exporting rare earth metals. Despite of these minor activities there had been no serious controversy under Obama administration. What will be the future of China’s economy and its relations with the US during the second term of Obama is a big question; though not a mystery. For, there will be no shift in policy and the US will continue her relations as it is. Since China is capable enough to survive the rough course, to avoid confrontation with China is in the best interest of the US herself.
The quintessence of what has been written above is that the new regime of Obama will have more or less the same policies for India and China. In order to curb the power of China, the US wants to strengthen Indian economy. Similarly as America could not afford confrontation with China so a policy of mixed diplomacy will be carried forward by the Obama administration up till 2016.
