The Indo-Pacific, which refers to the geographical area that includes the Indian and Pacific Oceans, makes up approximately 65% of all the world’s waters. This region also provides about half of the global GDP and is the second largest economic powerhouse in the entire global marketplace.
The Indo-Pacific region is also demographically strategic because more than half of the global population lives in this area, with 58% of the world’s youth residing here as well. It is envisioned that by the year 2030, slightly over 1.5 billion people in this region will belong to the middle class, making it even more economically and strategically significant globally.
Because of its central position in defining present and future trends in the global economy and geopolitics, the Indo-Pacific has attracted the increasing strategic interest of the United States, China, India, Australia, and ASEAN countries. These nations have close ties to the region, which frequently competes for power and resources.
Therefore, the Indo-Pacific not only brims with economic prospects but also has a vulnerability to conflicts among world powers seeking to control this critically important region.
The Indo-Pacific: U.S. Strategy
In 2011, when President Barack Obama advocated for what became known as the ‘Rebalancing’ or ‘Pivot to Asia’ strategy, the United States began focusing on the Indo-Pacific region. During his trip to Australia, he shifted U.S. attention from the Middle East to the Asia-Pacific, redirecting U.S. diplomatic, economic, and military assets toward the Indo-Pacific.
In response to China’s increasing footprint, the Obama administration created the Trans-Pacific Partnership (TPP) to encourage economic cooperation among countries in the region. However, in 2017, President Trump withdrew the U.S. from the TPP, which altered the region’s economic engagement in several ways.
Still, the U.S. has continued to enhance its role in modernizing China’s neighboring satellites by aiding them in upgrading their military, economic, and technological capabilities. Subsequent administrations, including Biden’s, have also adopted the guise of a ‘free and open Indo-Pacific’ to forge alliances like QUAD (USA, Japan, Australia, and India) and AUKUS to maintain order and contain Chinese influence.
Economic and Strategic Endeavors
The QUAD’s primary responsibilities include ensuring free passage through the Indian and Pacific Oceans without impediments and safeguarding commercial vessels on these vital trade routes. Additionally, programs such as the Indo-Pacific Economic Framework (IPEF) aim to attract high-quality investments and build economic resilience across the region. Economically, it is an extension of the Indo-Pacific region and thus connects with it. U.S.-Indo-Pacific trade totaled $1.75 trillion in 2020, supporting 5 million jobs and approximately $900 billion in foreign investment. Underscoring the region’s critical role in U.S. economic stability, this commerce also supports around 3 million American jobs.
Partnerships for Regional Equilibrium
To counter China’s growing influence and preserve U.S. supremacy, the United States collaborates closely with key allies like India, Japan, Australia, and ASEAN nations. The cultivation of robust alliances by the U.S. helps ensure a unified approach to addressing issues, meeting peace and security challenges, and fostering prosperity in the Indo-Pacific region.
Nonetheless, the Indo-Pacific remains a critical area for global geopolitics and economic trends, serving as a strategic focal point for world powers. As Donald Trump’s second term begins, it is anticipated that India will urge the U.S. to heighten the strategic value of QUAD. The reasons for India’s active participation in QUAD 2.0 are clear; this engagement not only strategically positions India but may also enhance security in Southeast Asia and the Western Pacific Ocean. Moreover, the U.S. is primarily seeking to balance China through what has been promoted as QUAD 2.0. QUAD 2.0 is a security bloc among member states designed to challenge China’s infrastructure and military expansion. This alliance is highly beneficial for India, which is believed to have received U.S. approval to make technological requests for the Indian Navy, especially concerning aircraft carriers. This includes the EMALS (Electromagnetic Launch System), an electromechanical system developed by General Atomics.
The future of the Indo-Pacific region hinges on the balancing and cooperative mindset of its transiting nations. For a robust framework of resource sharing and maritime rights, adherence to the United Nations Convention on the Law of the Sea (UNCLOS) is necessary. To achieve this equilibrium, the neighboring countries of the region must engage strongly in diplomacy. Without this collaboration, advancing prosperity in this global powerhouse will be impossible.