Other parts of the Mittal dynasty have also raised eyebrows in West Africa. In late 2005, Mittal Steel, the world's largest steel company, signed a US$900 million deal with Liberia's Transitional Government to mine iron ore, which many claim allowed Mittal to opt out of human rights and environmental law. The elected government of President Ellen Johnson-Sirleaf last year reviewed the deal, and the Liberian Senate is currently scrutinizing it.
India's business engagement in Africa attracts mixed opinion. Mahatma Gandhi once said that "commerce between India and Africa will be of ideas and services, not of manufactured goods against raw materials after the fashion of western exploiters." However, according to Zambian opposition MP Guy Scott, "People are saying, `The Whites were bad, the Indians were worse, but the Chinese are worst of all.'"
India should not regard Africa as simply a source of natural resources. Instead, it needs to invest in the region's human capital and share Indian know-how. Many Indian goods have much greater suitability for African than Western markets. Sales of Tata cars, for instance, are booming in many African countries.
But shared know-how should move beyond economic links. India's democracy in a postcolonial setting has relevant lessons for Africa. India also offers important experience in agricultural expansion, clean water management, and confronting the growing threat of climate change.
Whatever role India ultimately plays in Africa, perhaps its most important contribution could be to introduce competition. India's government needs to carefully watch how its companies and others rise to this challenge.
Alex Vines is the head of the Africa program at Chatham House, the Royal Institute of International Affairs, in London. Gareth Price is head of the institute's Asia program.
Copyright: Project Syndicate
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