The world is currently undergoing major economic and geopolitical transformations. While economic power continues to shift from the West to the East, rising populism and escalating geopolitical tensions in the South China Sea pose risks. These risks are being compounded by rising oil prices, capital outflows and a simmering economic crisis in emerging markets. Meanwhile, the Indian Ocean – a crucial artery of global maritime energy and goods trade – seems below the radar.
When considered as a single unit, the 28 economies touching the Indian Ocean across South Asia, East Asia and the Pacific, and Africa and the Middle-East can play a role in fostering global prosperity and peace in a new world order.
To highlight their collective economic impact, the Lakshman Kadirgamar Institute of International Relations and Strategic Studies published a major study entitled ‘Is the Indian Ocean Economy a New Global Growth Pole?’ written by Ganeshan Wignaraja, Adam Collins and Pabasara Kannangara. The LKI Working Paper, which is available for download at www.lki.lk, examines the initial conditions for trade-led growth in the Indian Ocean and the trends in shipping, trade flows, foreign investment and GDP growth. It then makes projections and explores pressing policy challenges. It concludes with national and regional-level suggestions to realise the region’s economic potential.