Beyond Borders: Revisiting the Indo-Pak Conflict Through the prism of the China-Pakistan Economic Corridor Dilemma

##plugins.themes.academic_pro.article.main##

Waqas Shair
Rizwan Ul Hassan
Sajjad Ahmad
Usman Bashir

Abstract

Foreign Direct Investment is a crucial instrument within the realm of geoeconomic strategy. The consistent and substantial financial inflows made by China towards the China-Pakistan Economic Corridor (CPEC) have emerged as a significant concern for India as it reexamines its strategic position in the region. India perceives this investment as unfavorable and a threat to its national interests. A potentially stable and economically prosperous Pakistan could effectively enhance its ability to advocate for the Kashmir cause within the power corridor. China's dream to revitalize its ancient silk route still exists as Pakistan and China are connected by a paved highway in the Uygur Autonomous Region of Xinjiang. China's investment flows have been identified as a possible trigger for conflict within the Indo-Pak dyad and the broader India-Pakistan-China triangle. The effects of this conflict can potentially jeopardize the region's stability and peace, consequently enhancing and multiplying existing global challenges. This study examines the impact of the Pakistan-India standoff on regional dynamics by explaining the potential conflict arising from using FDI as a tool for geoeconomic strategy.

##plugins.themes.academic_pro.article.details##

How to Cite
[1]
Shair, W. , Hassan, R.U. , Ahmad, S. and Bashir, U. 2024. Beyond Borders: Revisiting the Indo-Pak Conflict Through the prism of the China-Pakistan Economic Corridor Dilemma. Journal of Policy Research. 10, 1 (Mar. 2024), 149–154. DOI:https://doi.org/10.61506/02.00174.

References

  1. Aiyar, M. S., Chen, M. J., Ebeke, C., Ebeke, M. C. H., Garcia-Saltos, M. R., Gudmundsson, T., ... & Trevino, M. J. P. (2023). Geo-economic fragmentation and the future of multilateralism. International Monetary Fund, Staff Discussion Note SDN/2023/001. URL: https://www.elibrary.imf.org/view/journals/006/2023/001/006.2023.issue-001-en.xml?Tabs=contentsummary-102775 DOI: https://doi.org/10.5089/9798400229046.006
  2. Aljazeera. (2019). India responds to Trump’s ‘Afghan library’ dig at PM Modi. June 3, 2019. Retrieved from: https://www.aljazeera.com/news/2019/1/3/india-responds-to-trumps-afghan-library-dig-at-pm-modi
  3. Asoori, P. (2020). A look into the conflict between India and Pakistan over Kashmir. E-International Relations, October 7, 2020. Available at: https://www.e-ir.info/2020/10/07/a-look-into-the-conflict-between-india-and-pakistan-over-kashmir/
  4. Babic, M. (2023). State capital in a geoeconomic world: Mapping state-led foreign investment in the global political economy. Review of International Political Economy 30 (1): 201-228. DOI: 10.1080/09692290.2021.1993301 DOI: https://doi.org/10.1080/09692290.2021.1993301
  5. Blackwill, R. D., & Harris, J. M. (2016). War by other means: Geoeconomics and statecraft. Harvard University Press. DOI: https://doi.org/10.4159/9780674545960
  6. Carrai, M. A. (2022). Promoting the One-China Policy: The PRC’s Economic Statecraft in Africa. China and Taiwan in Africa: The Struggle for Diplomatic Recognition and Hegemony, 201-222. Springer. DOI: https://doi.org/10.1007/978-3-030-95342-3_12 DOI: https://doi.org/10.1007/978-3-030-95342-3_12
  7. European Council. 2023. Timeline – EU Response to Russia’s Invasion of Ukraine. June 29, 2023. Available at: https://www.consilium.europa.eu/en/policies/eu-response-ukraine-invasion/timeline-eu-response-ukraine-invasion/
  8. Exports of goods and services: https://data.worldbank.org/indicator/NE.EXP.GNFS.CD?locations=8S
  9. Farrell, H., & Abraham L. N. (2019). Weaponized interdependence: How global economic networks shape state coercion. International Security 44 (1): 42-79. DOI: https://doi.org/10.1162/isec_a_00351 DOI: https://doi.org/10.1162/isec_a_00351
  10. - FDI % of GDP: https://data.worldbank.org/indicator/BX.KLT.DINV.WD.GD.ZS?locations=PK
  11. - FDI (million$): https://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD?locations=PK
  12. - GDP growth: https://data.worldbank.org/indicator/NY.GDP.PCAP.KD.ZG?locations=PK
  13. - GDP per capita ($): https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=PK
  14. Ghosh, P. (2020). India’s Indian Ocean region strategy. Journal of Indo-Pacific Affairs 10 (1), 146-150. URL: https://media.defense.gov/2020/Aug/31/2002488089/-1/-1/1/GHOSH.PDF
  15. Giggy, L. (2017). Investing in the Future World Order: Geoeconomic Strategy and Foreign Direct Investment. PhD diss., Air University Maxwell AFB United States. URL: https://apps.dtic.mil/sti/tr/pdf/AD1045783.pdf
  16. Godart, O. N., Holger G. & Aoife H. (2020). Harnessing the benefits of FDI in African countries. CESifo Forum. München: ifo Institut-Leibniz-Institut für Wirtschaftsforschung an der Universität München 21 (02): 32-37. URL: https://www.econstor.eu/bitstream/10419/226401/1/CESifo-Forum-2020-02-p32-37.pdf
  17. Invest Pakistan. (2019). CPEC not a ‘debt-trap’ but a boon for Pakistan. May 27, 2019. Retrieved from: https://invest.gov.pk/node/678?hvqgklnaywsrpluf
  18. Iqbal, A. (2021). No change in US policy on Kashmir, says State Dept. DAWN News. URL: https://www.dawn.com/news/1606744
  19. Kalis, N. A., & Shaheen S. D. (2013). Geo-political significance of Kashmir: An overview of Indo-Pak relations. IOSR Journal of Humanities and Social Science 9 (2): 115-123. URL: http://www.unice.fr/crookall-cours/iup_geopoli/docs/O092115123.pdf DOI: https://doi.org/10.9790/0837-092115123
  20. Kronstadt, A. K. (2020). “Kashmir: Background, recent developments, and US POLICY.” Congressional Research Service. URL: https://crsreports.congress.gov/product/pdf/R/R45877#:~:text=the%20Kashmir%20Valley.-,The%20long%2Dstanding%20U.S.%20position%20on%20Kashmir%20is%20that%20the,wishes%20of%20the%20Kashmiri%20people
  21. Lalwani, S., & Hannah H. (2018). Investigating crisis: South Asia’s lessons, evolving dynamics, and trajectories. Stimson Center. Library of Congress, Connecticut Avenue, Washington DC. USA. URL: https://reliefweb.int/report/world/investigating-crises-south-asia-s-lessons-evolving-dynamics-and-trajectories
  22. Malik, I. (2002). Kashmir: Ethnic conflict international dispute. Karachi: Oxford University Press.
  23. McBride, J., Noah B., & Andrew C. (2023). China’ massive Belt and Road Initiatives. Council on Foreign Relations, February 2, 2023. Retrieved from: https://www.cfr.org/backgrounder/chinas-massive-belt-and-road-initiative
  24. Pakistan Economic Survey. (2017). Ministry of Finance. URL: https://www.finance.gov.pk/survey/chapters_17/Annex_IV_War.pdf
  25. Sayvaya, I., & Phommason, S. (2023). Discussion on Rainy Season Road Access and Poverty Alleviation in Laos. Journal of Business and Economic Options, 6(4), 1-7.
  26. Şıklar, I., & Kocaman, M. (2018). FDI and macroeconomic stability: The Turkish case. European Financial and Accounting Journal 13 (1): 19-40. URL: http://hdl.handle.net/10419/187729 DOI: https://doi.org/10.18267/j.efaj.204
  27. Sinha, R., & Sareen., N. (2020). India’s limited trade connectivity with South Asia. Brooking, May 26, 2020. URL: https://www.brookings.edu/articles/indias-limited-trade-connectivity-with-south-asia/
  28. State Bank of Pakistan. (2022). URL: https://www.sbp.org.pk/departments/stats/PakEconomy_HandBook/Chap-7.13.pdf
  29. Tourangbam, M. (2020). The China-India-Pakistan triangle: Origins, contemporary perceptions, and future. Stimson, June 25, 2020. URL: https://www.stimson.org/2020/the-china-india-pakistan-triangle-origins-contemporary-perceptions-and-future/
  30. World Bank. 2021. Retrieved from: https://data.worldbank.org/indicator/BM.KLT.DINV.CD.WD?locations=CN
  31. World Bank. 2022a. Retrieved from: https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=8S
  32. World Bank. 2022b. Retrieved from: Imports of goods and services: https://data.worldbank.org/indicator/NE.IMP.GNFS.CD?locations=8S.
  33. World Bank. 2022c. Retrieved from:
  34. Zakaria, M., Jun, W., & Ahmed, H. (2019). Effect of terrorism on economic growth in Pakistan: an empirical analysis. Economic research-Ekonomska istraživanja 32 (1): 1794-1812. DOI: 10.1080/1331677X.2019.1638290 DOI: https://doi.org/10.1080/1331677X.2019.1638290

Most read articles by the same author(s)