Post-Bandung: Rhetoric or Transformation in Afro-Asian Cooperation?

Fifty years after the first Afro-Asian meeting in Bandung in 1955, leaders from these regions met again to re-establish a spirit of co-operation. The meeting took place at a time of increased trade between countries of the South and when many African countries are starting to adopt “go east” policies. But will the vision of Bandung mean new trade rules based on equity and protection of weaker trading partners?

At the recently concluded meetings in Jakarta and Bandung to commemorate the 50th anniversary of the first Afro-Asian meeting in Bandung in 1955, the President of Indonesia observed: “ It took fifty long years for this Conference to happen, but Asia and Africa have finally assembled here again.” Reflecting on the achievements of the first Conference (which was attended by, among others, President Soekarno of Indonesia, President Nasser of Egypt, Prime Ministers Chou En Lai and Jawaharlal Nehru of China and India respectively), the President of Indonesia went on to ask:

“Why did it take 50 years - a lifetime - for Asia and Africa to reconvene, after the success of the first Summit in 1955?

We must ask: Does the Bandung Spirit mean the same in 2005 as it did in 1955? If the Bandung spirit has served us well over the years, how can we adapt that spirit to today’s circumstances? And we must ask: now that Asia-Africa spirit is reconvened in great numbers and with robust confidence, how can we make it relevant? Relevant to us, and relevant to the world?

Against this note of expectations, it must be observed that the very fact that the Conference took place - and in a modest if not practical way succeeded in outlining the broad contours of political, economic and social cooperation between the two regions - is an important development. Only time will tell whether the Conference has succeeded in shifting the colonial and therefore contrived patterns of linkages from North-South to Africa-Asia and to South-South.

There can be little doubt, however, that trade and investment ties between Asia and Africa are growing at a faster pace than between North and South. The combined share of Africa and Asia in world trade since the 1990s has risen markedly, from about a fifth to over a quarter of world total. Secondly, trade among developing countries has become the most dynamic component of international trade. In the decade of the 1990’s, for example, trade among them grew at an annual average of 11 percent, by far exceeding the 6 percent growth in world trade. As a result, the share of intra-developing trade has expanded from a modest 8 percent to over 13 percent of the total over the same period. More than 40 percent of their exports of agriculture and manufactured products are now destined for each other’s markets. In consequence, the structure of their trade has altered dramatically: whereas two decades ago, primary commodities accounted for nearly 75 percent of their exports, they now account for less than 30 percent. Even for Africa, there has been a modest rise in the share of manufactured goods.

If Africa’s trade with Asia were to continue to grow at similar rates over the next two decades i.e. at just over 10 per cent annually, a massive diversification of Africa’s trade structure is likely to take place. This will not only significantly lessen its dependence on traditional markets of developed countries but also more importantly, re-orient its trade towards the more dynamic markets of Asia. It is therefore not surprising that an increasing number of countries in Africa are designing strategies and polices to take into account this prospect. Zimbabwe’s “Go East” policy, now reportedly under consideration by other countries in the region, is a good example of this trend. They are grounded in emerging complementarities induced by rapid growth in import demand from Asia and growth of Asian SMEs-led investments in Africa.

It is equally true that much of the expansion in trade, investment and technology transfers is autonomous i.e. market-driven and concentrated in a few sectors and countries. If the benefits of such expansion are to be widely shared, it will in all likelihood require much greater attention and involvement of the policy-makers of the two regions. If the emerging trends are to lead to more fundamental and qualitative changes in economic relations, a structure and a system of cooperation will have to be built away from donor-inspired frameworks of EPAS, AGOA and the like.

Regional and inter-regional efforts at cooperation have so far largely focused on the mutual gains from closer economic relations. Without greater commitment and efforts on the part of the political establishments of the respective continents, however, economic cooperation will, in all likelihood, continue to remain below the potential warranted by their complementarities. The New Strategy of Afro-Asian cooperation must accordingly be based on sustained political commitment to ensure its progress and implementation. This includes as close a harmonization of positions as possible in global negotiations on matters of environment, social justice, reforms of global institutions, international trade, investment and other development issues. At the national level, where the primary impetus for greater cooperation must be nurtured, greater effort needs to be made to raise awareness about the political importance of Afro-Asian cooperation.

Arrangements for improved Afro-Asian cooperation must perforce take into account the striking changes that have taken place in the global economic and political environment over the past fifty years. Many of these changes warrant new approaches and engagement of new actors in driving cooperation: for example, the role of technology, of the private sector and in particular the small and medium scale enterprises (SMEs), improved communications and the need for larger markets in the wake of new integrated production and distribution systems all need to be given considerably greater weight and attention than was the case fifty years ago.

The dramatic transformation of many economies in Asia has altered the scope for mutual cooperation distinctly in favor of increased inter and intra–regional cooperation. The emergence of ASEAN, China and India, among others, as important players on the global scene is beginning to reshape economic geography and the quality of trade relations as they intensify their cooperation with each other and with other developing countries. Likewise, rapid growth and demand for the products of Africa has spurred the interests of business and the investment community in Asia to forge fresh links with Africa.

The real challenge before the Afro-Asian policy-makers is to ensure that patterns of Asian-African trade does not replicate North-South linkages: it must, for example, be informed by new trade rules in which the fruits of value chain are equitably distributed; in which dependency of debtor-creditor relationship is largely absent; in which rules of origin encourage investments and technology transfers at source; and in which the weaker trading partners are protected. It is possible to conceive of a new paradigm of economic relations. But is the political leadership in the two regions really prepared to implement the vision of Bandung?

* Chandrakant Patel is the editor of the Seatini Bulletin. Seatini is the Southern and Eastern African Trade Information and Negotiations Institute (http://www.seatini.org/) The latest edition of the Seatini Bulletin, ‘50 years after Bandung, Asia-Africa summit adopts a new pact’, contains a series of articles on the recent Bandung Summit. For more information and subscriptions, contact SEATINI, 20 Victoria Drive, Newlands, Harare, Zimbabwe, Tel: +263 4 792681, Ext. 255 & 341, Tel/Fax: +263 4 251648, Fax: +263 4 788078, email: [email protected]

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