Economic Importance of Indian Ocean - Case Study Example

HOW SIGNIFICANT ARE MARITIME ISSUES IN THE INDIAN OCEAN IN TERMS OF OVERALL GLOBAL SECURITY AND STABILITY? Introduction Over the years, security concerns have emerged concerning Indian Ocean, as it is strategic in stabling as well as interfering with world security. Similarly, its economic importance has made many nations scramble for its control with India, the US and China taking the center stage. Other players are also significant sine they are situated on the Indian Ocean coastline. The rest of the paper will discuss the economic importance of the Indian Ocean and security challenges. Definition of Indian Ocean region Indian Ocean covers a land mass area of about 68.5 million square kilometers (Michel & Sticklor 2012). The Ocean is bounded by three landmasses and ranks as the world third largest ocean or water body. The Indian Ocean is a discrete geographical entity and surrounded by long-standing disagreements (Institute for Security Studies 2012). The Indian Ocean region comprises of the following nations in Africa: South Africa, Mozambique, Tanzania, Kenya, Somalia, Djibouti, Eritrea, Sudan, and Egypt (Institute for Security Studies 2012). The Middle East countries include Saudi Arabia, Yemen, Oman, and the United Arabs Emirates, Qatar, Bahrain, Kuwait, and Iran. The South Asian nations include Pakistan, India, Bangladesh, and Sri Lanka (Institute for Security Studies 2012). Additionally, the South East Asia countries include Malaysia, Singapore, Indonesia, Burma, and Thailand (Institute for Security Studies 2012). Lastly, the Island states include Madagascar, Mauritius, Seychelles, Reunion (France), Mayotte (France), Comoros, Maldives, and British Indian Ocean Territory (Institute for Security Studies 2012). Figure 1: Map of Indian Ocean, Copied from Kopp (2012) Economic importance of Indian Ocean The economic viability of Indian Ocean stems from its choke points. They serve as major trade routes for global oil transportation, and their disruption can cause delays in delivery of goods and services all over the world. Some of the importance choke points are discussed in subsequent paragraphs. Strait of Hormuz: This choke point is located between Oman and Iran and connects the Persian Gulf to Gulf of Oman and the Arabian Sea (Kopp 2012). It is considered as the global choke point because of the daily flow of oil to about 17 million barrels as at 2011 (Kopp 2012). The flow through this choke point stood at 35% of all seaborne trade, which was equivalent to 20% of worldwide oil purchased in 2011. Most of the crude oil exports went to Asian markets such as Japan, India, South Korea, and China. The chokepoint is also important to Qatar because it exports approximately two trillion cubic feet of liquefied natural gas each year, accounting for about 20% of LNG trade (Rumley 2013). Strait of Malacca: It links Indian and Pacific Oceans and serves as the shortest route between Middle East and Asian markets (Kopp 2012). The chock between Singapore, Malaysia, and Indonesia links Indian Ocean to South China Sea and Pacific Ocean. It is also the shortest sea route to Persian Gulf suppliers and Asian markets such as China, Japan, and South Korea (Rumley 2013). The oil shipping through this choke goes to China and Indonesia, and they are ranked as the world growing economies. Strait of Malacca is a vital chokepoint for South East Asia with an estimation of 15.2 million barrels every day as per 2011 statistics (Kemp & Bhaskar 2011). Suez Canal: It offers a strategic route to Persian Gulf oil shipment to Europe. It is situated in Egypt and links Red Sea and Gulf of Suez with Mediterranean Sea (Kopp 2012). As at 2011, liquefied natural gas and crude oil and refined products made 15 % and 6 % respectively as the principal cargoes (Rumley 2013). Closure of this route will make shipment take a longer route, as it will force the ships to transit around the African continent. Bab-el-Mandeb: This is a checkpoint between the Horn of Africa and Middle East. It links the Mediterranean Sea and Indian Ocean (Kopp 2012). It is located between Yemen, Eritrea and Djibouti connecting Red Sea with Gulf of Aden. Arabian Sea exports from Persian Gulf pass through it, and its closure could keep tankers from the Persian Gulf away from the Suez Canal and being diverted to Southern Africa. It was approximated that over 3.4 million barrels passed it daily to Europe, US and Asia daily in 2011 (Rumley 2013). Figure 2: Choke Points of Indian Ocean, Copied from Kopp (2012) From the above discussion of choke points, it is evident that Indian Ocean plays a significant role in influencing the global economy. The world economy relies on oil and other sources of energies shipped through the Indian Ocean. For instance, many Asian nations rely on oil and gas imported by sea from the Persian Gulf. The oil and gas must pass through the chokepoints discussed, and this makes them vulnerable to attack by the coastal states or non-state actors such as pirates. Energy is essential to influencing geopolitical strategies of a state, hence a problem of its supply causes security consequences (Rumley 2013). The high demand for energy in China, India, and Japan makes them sensitive to sea lines of communication security (SLOCS). They are also sensitive to the chokepoint of these regions. Tourism along Indian Ocean There is a growing tourism industry in nations that lie along the Indian Ocean. Nations such as Sri Lanka, Kenya, and Tanzania among others have generated huge revenues from tourism. The Indian Ocean coastline offers best opportunities for tourism characterized by sandy beaches, aquatic life among others. Similarly, the ocean waves, hotels, and large pool of water offer opportunities for these nations to offer sporting activities hence generating revenues. Thailand also markets itself as a tourism destination and reaps heavily from it (Kopp 2012). Natural resources in Indian Ocean The Indian Ocean is rich with mineral resources important in to the whole world. For instance, Polymetallic nodules and Polymetallic massive sulphides are found within the Indian Ocean (Michel & Sticklor 2012). Polymetallic nodules contain nickel, cobalt, iron and manganese formed years ago and lies on the seafloor (Michel & Sticklor 2012). Similarly, Polymetallic massive sulphides have minerals such as copper, iron, zinc, silver, and gold (Michel & Sticklor 2012). India is one of the nations with rights to explore Polymetallic nodules in the central of Indian Ocean from 1987. Similarly, China is exploring Polymetallic ore deposits in Indian Ocean because of gold content. Other minerals include coastal sediments containing titanium and zirconium off South Africa and Mozambique. There are also tin placer deposits off the coast in Thailand and Indonesia (Michel & Sticklor 2012). Fisheries The asset of Indian Ocean lies on its living resources. Sources from United Nations Food and Agriculture Organization (FAO) show that marine fisheries catches reached 11.3 million tons in 2010 from 900,000 tons in 1950, representing 14.7% of world catch. Aquaculture, which entails fish farming and shellfish, expanded. The top six suppliers of fisheries include India, Bangladesh, Indonesia, Thailand, Egypt and Myanmar with over 11.3 million tones as at 2010 (Michael 2013). Security challenges Smuggling and human trafficking Organized crimes, smuggling, and trafficking are increasingly becoming a global problem along the Indian Ocean coastlines (Michel & Sticklor 2012). Drugs and arms smuggling is on the increase with spreading militarization and armed conflict. The Indian Ocean provides an easy route for international crime syndicates and for non-state actors to distribute arms (Michel & Sticklor 2012). The increasing conflicts and insurgencies make smugglers find a ready market in areas such as the Horn of Africa, Afghanistan, and Indonesia among other nations (Michel & Sticklor 2012). Drugs also find their way in since research indicates that 95% of the production of hard drugs like heroines and cannabis are in conflict zones such as Afghanistan (Michel & Sticklor 2012). Organized criminals are also engaged in counterfeits products, which pose a security challenge to the states along the Indian Ocean. People from the war-torn areas are illegally looking for ways to escape are trafficked to other places and subjected to forced labor, bondage, and sexual servitude. Rivalry between regions three major powers The economic importance of the Indian Ocean has made the three major powers in the region to scramble for dominance and control (Rumley 2013). The rivalry between the three nations, namely the US, India, and China, is posing a security threat and instability that will affect the economic importance of the water body. The rising power of India and China is posing a security threat as they challenge the US. China is challenging the US trade on the Indian Ocean coast, although many states welcome the US trade within the coastline. Because of this, China, the US, and India have their naval presence in Indian Ocean to protect their interest and ensure stability. Competition for influence and resources The Indian Ocean has many resources and quantities of energy resources in the form of coal, oil, and natural gas (Chellaney 2013). Similarly, the Indian Ocean is also the transit point for significant energy resources to other parts of the world. The regions comprise some of the largest growing economies and population in the world. For instance, India and Indonesia have a growing economy equal to the population (Chellaney 2013). China is not one of the Indian Ocean states, but it is trying to influence resources to its favor. These evolutions and the fossil energy suppliers have created a sense in these nations to form, “energy nationalism” as they compete for the energy resources of the Indian Ocean (Chellaney 2013). Because of this, China and India are at the forefront to gain greater influence in the region. Failed and Failing States The increasing number of failed states, as well as failing states, is posing a security threat in the Indian Ocean region. For instance, failed states such as Somalia and Afghanistan as well as failing states such as Pakistan and Yemen undermine regional and global security (Alexander 2012). Similarly, failing and failed states are making it difficult to confront the non-state actors such as al-Qaida, Taliban among others. These non-state actors continuously challenge the perceived Western cultural and geopolitical dominance and to overthrow the regional governments viewed as allies to the west (Alexander 2012). It contributes to security problem along the Indian Ocean coastline. Piracy Piracy along the Indian Ocean regions is a major security concern, and it is majorly concentrated in the Gulf of Aden waters, Southern Red Sea (Alexander 2012). Similarly, it occurs in the Arabian Sea and Western Indian Ocean along the East African coast, south of Madagascar and East of Seychelles (Alexander 2012). Piracy has been the thriving industry after the failure of the government to conduct surveillance in the Somali coastlines. The pirates have taken advantage and hijacking big ships for ransom. Because of this, many nations such US, Kenya, and the UK have come up with the navy patrol to hinder the piracy activities along the Indian Ocean coastlines. Increasing militarization Militarization of the Indian Ocean states in on the rise, and many more nations are likely to arm themselves. The militarization of these countries is shaping the geopolitical and influencing current security situation. For instance, Iranian nuclear programs and China-India arms race is posing a security threat to regional security (Kemp & Bhaskar 2011). The US and Israel had responded to Iran nuclear program, and they are not happy with it. Similarly, China is also building a blue-water navy to protect shipping routes and for the reliability of energy supplies from choke points like the Strait of Malacca (Kemp & Bhaskar 2011). Proliferation of militant Islamists movements The emergence and spread of militant Islamist movements are posing security challenges in the Middle East, East Africa, and South nations. Their growth relates to issues of governance, population growth, and economic conditions of the countries (The Hague Institute for Global Justice 2014). Pakistan and Saudi Arabia are some of the leading nations in these but there are emerging nations such as Sri Lanka, and Bangladesh are also moving towards the mess (The Hague Institute for Global Justice 2014). The high rate of unemployment in Yemen and Djibouti is making many youths be radicalized hence posing security challenges (Alexander et al. 2012). Political tension and dispute between India and Pakistan India and Pakistan do not have a good relation because of the border dispute. The Kashmir dispute and other military conflicts are posing security challenges along Indian Ocean states. The historic hostility between these countries dating 65 years back is a threat since they cannot even conduct a joint operation to ensure security of the region (Rumley 2013). Maritime silk route from China The China government is building a maritime infrastructure along Asia–Europe shipping route as it aims at developing port in Southeast Asia around Indian Ocean and eastern Mediterranean region. It also aims at infrastructure cooperation in zones from northwestern China to Baltic Sea. However, it has vast impacts such as leveraging over trade routes between China and Europe. Additionally, it will reduce Europe’s role as a hub in international transport and logistics. Instead, it might benefit Middle East, Africa, and China (Rumley 2013). This has brought tension between China and European Union making them deploys peacekeeping forces to open the route. Conclusion The Indian Ocean is strategically positioned to serve the world and provide shortcuts as well as to link different nations. Nearly all nations depend on the Indian Ocean, directly or indirectly. Because of its importance, there are emerging concerns among nations over its control. Different nations are scrambling for its control beginning with the Middle East nations. Nearly 80% of world energy and oils comes from Indian Ocean states, hence the vast resources make it vital. Similarly, the nations it does not serve directly such as the US also has a share because its products such as Oil are essential to maintaining the world security. However, there are security concerns emanating from the Indian Ocean and states surrounding it. The increase of piracy and sea terrorism is a threat to the sea routes. The never-ending militarization and failing governments are increasing threats to harmonious trade along the Indian Ocean sea routes. References Alexander, D 2012, Indian Ocean: a sea of uncertainties, Future Directions International, West Perth. Chellaney, B 2013, Bridge between Europe and Asia: strategic challenges in the Indian Ocean. Available from http://chellaney.net/2013/11/29/bridge-between-europe-and-asia- strategic-challenges-in-the-indian-ocean/ [April 13, 2015] Institute for Security Studies 2012, Maritime security in the Indian Ocean: strategic setting and features. Institute for Security Studies, 1-24 Kemp, G. & Bhaskar C 2011, Maritime security challenges in the Indian Ocean region. India International Centre, New Delhi Kopp, C 2012, Strategic importance of the Indian Ocean. Strategic Focus. Available from http://www.ausairpower.net/PDF-A/DT-Indian-Ocean-Dec-2011.pdf [April 13, 2015] Michael, D 2013, Under the Sea: natural resources in the Indian Ocean. Available from http://www.stimson.org/spotlight/under-the-sea-natural-resources-in-the-indian-ocean/ Michel, D & Sticklor, R 2012, Indian Ocean rising: maritime security and policy challenges, Stimson, Washington DC Rumley, D 2013, The Indian Ocean region: security, stability and sustainability in the 21st century. Australia India Institute Task Force on Indian Ocean Security March 2013, pp, 9-109 The Hague Institute for Global Justice 2014, Geopolitical and maritime security in the Indian ocean. Clingendael Institute Policy Brief. Read More