xxxv
- How is the bilateral economic cooperation to be evaluated in
terms of its impact on both the countries? Is there a winner - loser
syndrome?
- What are the consequences for the winner-loser syndrome with
respect to foreign trade policy goals of maintaining or expanding external
markets?
- Are there any schemes or proposals for establishing or promoting
bilateral economic cooperation on equal terms?
The analysis of bilateral economic relations often remains con
fined to foreign trade. In the case of countries with different levels of
development, however, this certainly is inadequate. There are myriad
forms and perspectives of bilateral relations which often remain obscure
as regards in-depth analysis of their interdependent impact.
Since the beginning of the 1980s, the economic relations between
Germany and India have experienced a growing mutual interest. The
booming bilateral interest at the highest political level and in the con
cerned trade associations as also in a whole range of individual firms,
does not however provide any clue as to the structure and the implications
for both the countries. The account should also include the changes in the
structures of world economic relations which have, for instance, been
highly brought about by the collapse of the East Block which was hitherto a self
-sufficient economic zone. For India, especially the collapse of erstwhile
USSR, as an important trade partner, has been of far-reaching signifi
cance. Finally, it may be added that ever since the consolidation of the
European Market in 1993, India's endeavour has been to retain access to
the European Union and the Common Market especially via Germany.
These are some of the features of the bilateral and international scenario
which form the backdrop of Indo-German economic relations and which
must be accounted for in any assessment.
2. Economic cooperation between countries with different
levels of development
The analysis of bilateral economic relations is often confined to an
exchange of goods and services between two countries. Aside from that,
the bilateral capital transfer is also taken into account. These spheres of
economic relations are covered in the balance of payments in the current
account and capital account. It can thus be evaluated whether the short,
medium, and long - term foreign trade relations are developed in a
balanced or in a lop-sided manner. From here we can obtain the first clues
to the winner - loser syndrome.
