An Economic Corridor, the Israel Link, and the Geopolitics

Why in News?

• The 2023 summit of the G-20 under India’s presidency went exceptionally well given the group’s limited economic approach to the complex issues that the world faces.
• India’s remarkable success at the summit this year was captured by the global press for various outcomes.

Key Outcomes of the G20 Summit, New Delhi

• Formal Inclusion of the African Union as a Permanent Member: The G-20 welcomed the African Union, giving voice to the global south.
• Initiatives Regarding Clean Energy: India offered a tangible solution through a Global Biofuel Alliance, promoting clean energy globally.
• Provision of Aid for Asia-Africa: For development purposes and to meet SDGs a provision of aid was set up for Asia and Africa.
• Announcement of An Economic Corridor: The most significant outcome was the announcement of the India-Middle East-Europe Economic Corridor which will connect India to Europe via the United Arab Emirates, Saudi Arabia, Jordan, and Israel.
• The Delhi Declaration: A joint statement issued by all G-20 members emphasised the need for global cooperation in a polarised international order.

Significance of the Delhi Declaration

• A Joint Statement (Consensus)
  • The declaration managed to bring together countries with differing perspectives and interests.
  • The Delhi Declaration strikes a balance between addressing global issues and not directly naming certain nations for their actions.
  • For example, it avoids naming Russia for its aggression against Ukraine but emphasises the importance of upholding the United Nations charter and principles of territorial sovereignty.
  • This balanced approach allows each member to find something in the declaration that aligns with their interests, contributing to its success.
• Reflection of India’s Diplomatic Acumen
  • It is notable because it manages to garner the agreement of major world leaders, even in the context of international power struggles.
  • Despite the absence of China’s President Xi Jinping and Russian President Vladimir Putin at the summit, India succeeded in obtaining their agreement for the declaration.
  • This reflects India’s diplomatic acumen in bridging divides and fostering consensus among diverse nations.

India-Middle East-Europe Economic Corridor (IMEEC)

• The boldest outcome of the G20 summit was the announcement of the economic corridor - IMEEC.
• This corridor comprises of a rail-ship route, to transport goods to Europe from India via the UAE-Saudi Arabia-Jordan-Israel.
• Such a project will change the geopolitics for the future and the fact that it challenges China’s Belt and Road Initiative is beside the more significant point.
• U.S. President called it ‘a real big deal’, which is transformative for all those involved and the rest of the world.
• Israel Prime Minister was prompt to show that Israel has been eager to be a part of such a project.

Significance of IMEEC

• A Game-Changer for the Global Trade
  • The plan is expected to be a possible game changer for global trade, presenting an alternative to China's wide-ranging strategic infrastructure investments.
  • The corridor would increase prosperity among the countries involved by increasing the flow of energy and digital communications.
  • The project would help to address the lack of infrastructure needed for growth in lower- and middle-income nations.
  • The enhanced infrastructure would boost economic growth, help bring countries in the Middle East together.
• A Counter Step to China’s BRI
  • This project comes at a time when Saudi Arabia and the UAE, both old allies of US, have been strengthening their ties with China.
  • These countries seek to enhance relations with rapidly growing eastern economies.
  • China has also boosted ties with the Middle East of late, helping to broker a deal between Saudi Arabia and Iran earlier this year.
  • During BRICS Summit 2023, the oil-rich Gulf states announced their intention to join the grouping, with China playing a leading role in this move.
  • The IMEEC is being seen as an ambitious effort by Washington to counter China's Belt and Road initiative that sought to connect more of the world to the country's economy.
  • Lately, China's BRI has been facing a series of troubles due to rising loan defaults and slowing down on investments.
• Significant for India’s Geopolitics and Trade
  • India was concerned about China’s connectivity projects in the region under its decade-old Belt and Road Initiative.
  • It was also frustrated by Pakistan’s refusal to allow overland access.
  • India’s quest for credible connectivity through Iran into the Eurasian landmass did not yield much result.
  • Tehran is more open to India, but its confrontation with the West has cast a shadow over the commercial utility of corridors across Iran into Eurasia.
  • Against this backdrop, India finally found a formula (through the IMEEC)to connect to both Arabia and Europe.

The Israel Link in the Economic Corridor

• The US plan aims to reshape the Middle East’s geoeconomic landscape through connectivity projects like IMEEC.
• The US believes that such projects will ease Gulf countries’ doubts about its commitment, reduce tensions with Iran and bolster its leadership in the Gulf.
• However, these strategic objectives will not be realised without pushing forward Israel’s Abraham Accords normalisation agenda, especially with Saudi Arabia.
• Moreover, the normalisation of ties between Israel and Saudi Arabia is a precondition for this economic corridor to materialise.

Reason Behind Israel’s Absence from the Launch of Corridor

• Unprecedented Presence of ME Countries
  • India set a precedent in G20 history by inviting the most Middle Eastern countries ever to take part as guests in the group’s key summit.
  • But Israel, India’s strategic partner also from the region, was not given such an invitation.
  • The regional sensitivities of Arab countries might have influenced India’s decision to not include Israel to the guest list.
• Preferences Made by the US: The U.S. administration’s avoidance of Israeli PM for eight months due to domestic politics suggests that U.S. preferences or concerns might have influenced Israel’s role in the summit.
• Due to Domestic Political Situation
  • In his statement after the launch of corridor, Israeli PM thanked US president, and did not mention Indian PM for this idea and initiative, to which Israel will provide all its skills and support.
  • Netanyahu is barred from receiving diplomatic trophies because of his domestic politics and failure to pay attention to US foreign policy goals for an extended period of time. 

Way Forward

• Normalisation of Saudi-Israel Relations
  • Saudi Arabia is willing to end the diplomatic boycott of Israel.
  • For such a change, Saudis demand that Israel commits to the two-state solution and the well-being of the Palestinian people, even if the occupation does not end soon.
• End of Israel-Palestine Conflict
  • Currently, on the sidelines of the UN General Assembly, Saudi Arabia along with the Arab League and the EU, has joined forces with Egypt and Jordan to launch a ‘Peace Day Effort’ aimed at incentivising Israelis and Palestinian leaders to compromise.
  • Israel-Palestine peace is a very challenging aim and given the rise of extremism on both sides, it appears all the more impossible.
  • The India-Middle East-Europe Economic Corridor will have to wait until this happens.

Conclusion

• Israel is the weak link in the IMEEC plan because Israel hopes the corridor will facilitate normalised relations with Saudi Arabia. Riyadh does not see it that way.
• Despite its reluctance to officially join, the new IMEEC already makes the Saudis de facto signatories to the I2U2 with Israel.
• As time passes, the corridor will therefore create the economic and psychological conditions to facilitate normalisation.

Q1) What is the Abraham Accord?

It is the first Arab-Israeli peace deal in 26 years. The Abraham Accord between Israel, the United Arab Emirates and Bahrain is mediated by the USA. As per the agreements, the UAE and Bahrain will establish embassies and exchange ambassadors. They will work together with Israel across a range of sectors, including tourism, trade, healthcare and security. The Abraham Accords also open the door for Muslims around the world to visit the historic sites in Israel and to peacefully pray at Al-Aqsa Mosque in Jerusalem, the third holiest site in Islam.

Q2) What is Part of the Partnership for Global Infrastructure Investment (PGII)?

PGII is a collaborative effort by G7 nations to fund infrastructure projects in developing nations. This project is also called a green and digital bridge across continents and civilisations. The rail and shipping corridor is part of the PGII. 

Source: The Hindu