The Focus Of The Global Economy Shifted From Indian Ocean To Where?


1 Answers

Connor Sephton Profile
Connor Sephton answered
The focus of the global economy shifted from the Indian Ocean to China. The Indian Ocean has been considered as one of the most strategically located body of ocean in the world. This is because more than 80% of oil trade traverses through the Indian Ocean via the Strait of Hormuz, Strait of Malacca and the Strait of Bab el-Mandab. Additionally, it is also a trade route of big economies like that of India and China.

The Indian Ocean also witnessed the strategic development of the region and its major role in world political and commercial affairs. It should be noted that there are prominent and significant flash points in the region. These include the feared nuclear arms race between India and Pakistan, as well as the intervention of the United States in Afghanistan and Iraq. Add to these is the continuing threats of Islamist terrorism and the increase in piracy in the open sea. As such, a number of military forces are highly visible in the Indian Ocean. Among them are the US Bases in Bahrain and in the island of Diego Garcia. These bases are essential and critical in its operations within the region ranging from military operations to guaranteeing the safe passage of oil supply to the Persian Gulf and the necessary counter attack in cases of piracy from the Gulf of Oman to Kenya. Another super power with military bases in the Indian Ocean is France with its naval bases in Abu Dhabi, Reunion and Djibouti.

Recent statistics will show that China is on the roadway to becoming the world's large economy. As an economic super power, it can wield greater power and influence on world affairs. This is perhaps owed to the fact that it would like to demonstrate leadership, status quo as well safeguarding its economic and commercial investments and interests. In addition to this, China's influence in the Indian Ocean is expanding by its trade relations with Kenya particularly with oil and gas trade, and related infrastructure projects. Aside from these, China's military presence is also being felt in the Indian Ocean region with its String of Pearls strategy around India. This being the case, global economy is being shifted to China from the Indian Ocean.

Answer Question