India in the world power ladder

Here's a short OpEd of mine on where India stands in the world power game, published by Bombay-based News Bharati on August 16, 2012.

India is an emerging great power but whether it will emerge successfully or not will depend on a range of challenges at the domestic and international levels. Of these, the domestic challenges are of far greater consequences. Internal challenges range from poor infrastructure to coalition politics and external challenges include managing great power relations and ensuring a stable South Asia.


Some of the serious economic challenges that India faces include its economic growth. India traditionally had the Hindu growth rate of 2-3 percent for decades where the economy was dominated by a strong state that remained closed to international interaction. It also had put serious restrictions on its private sector and the market-driven growth. Starting in the late 1980s, India did slowly liberalise its economy but it took the 1990s economic crisis for liberalization to pick up the pace. The liberalization process that followed led to much higher growth rate, reaching levels of 8-10 percent. In fact, over the last three years, this growth rate has begun to suffer. India did successfully deal with the global financial crisis but nevertheless its economic growth rate has begun to slow down, nevertheless high by global standards. However, India starting from a lower base, (even though its growth rate is higher than most other countries)and if India has to catch up to the more developed economies, it has to sustain its 8-10 percent growth rate annually but domestic politics is coming in the way of faster growth.

One of the factors for slow growth rate is India’s poor infrastructure. The recent double blackout is only one indicator of that. India’s power sector suffers from both lack of capacity and poor distribution. The US-India nuclear deal was supposed to help India in this regard by increasing the nuclear component in the energy basket but the nuclear liability bill is preventing progress in the nuclear energy sector. Additionally, the Fukushima nuclear disaster has led to greater concern in India about the nuclear safety, leading to further slow down.

Situation is not much better in another area of infrastructure – highways and transportation links. Land acquisition troubles, inadequate attention preventing highway and other transportation hub developments at a fast-enough pace are big enough issues but the more serious problem is politics!! Coalition governments and differences between the centre and state governments are preventing the much-needed market reforms as a number of international agencies have already pointed out. There is also increasing objection to faster economic growth because of the assumption that faster economic growth leads to greater economic inequality. While income inequalities are a problem, the assumption that GDP growth rates will lead to inequality is wrong. The GDP-led growth needs to lead to better distribution but the government has to push for greater economic growth as well. These are not mutually incompatible.

Maoist violence is another serious domestic issue. While India has always faced domestic rebellion, the Maoist violence is a qualitatively different problem. Lack of coordination between state and central forces, inadequate trained personnel available for combatting the violence has meant serious blows to India.

Yet another issue is corruption. Corruption is not only a political issue but also an economic issue. Unfortunately, none of the major political parties are paying any serious attention to it other than pointing fingers at each other. Corruption makes not only an incompetent economy but also makes it an unattractive option for foreign investors, affecting further India’s growth story.

A final domestic issue is the state of the intellectual infrastructure. India’s educational system, especially at the school level, is going from bad to worse. But since education at the school level is a responsibility of the state government rather than the central government, there are huge problems at that level. Some states do perform better than the other but the situation overall is quite abysmal. There is lot of tinkering going on at the higher education level, but unless the school education is taken seriously, reforming higher education is not going to matter much. The effect of the educational weakness can be seen already in the shortages in some sectors of the industry, in terms of quality manpower.

One of the major international challenges is managing the rise of China. While rise of China is a challenge to the whole world, India faces a particular challenge given the history of relations including the 1962 border war. In addition, China’s border infrastructure, its support to Pakistan in the military and non-military arena is of concern. For that matter, China’s South Asia relations areno different!

India has also problems with relationship with the United States. Although US-India relations have improved dramatically, India is afraid of being caught between the United States and China. Therefore, India has to play the complicated game of trying to balance its relations with these two powers.

Meanwhile, what affect us most are the developments in our neighbourhood and India’s position is nothing to envy about. We are faced with new challenges all around India, with many having serious issues of instability that has the potential to spill over. On our Western front, the situation in Pakistan and Afghanistan are sliding from bad to worse. With the US plan to exit Afghanistan in 2014, it opens up new challenges and opportunities for India and the region.

Meanwhile, Pakistan is going through serious internal turmoil although the geopolitical importance of Pakistan will come handy for Islamabad with neither the US nor China letting it slide to become a “failed state.” This may be the only hope we have of preventing the worst from happening in Pakistan. While a stable Pakistan may be in the interest of India and the region, an unstable Pakistan with nuclear weapons is going to be a greater concern for the West, particularly the US. For India, the issue has not been really the growing size of the Pakistani nuclear arsenal or its safety (this is important by all means) but Islamabad’s sponsorship of cross-border terrorism.

Coming to Afghanistan, India has played a critical role in the development and reconstruction efforts despite the Pakistani effort to keep India out on a sustained basis. However, with the US exit plan being readied, India has to take the lead in formalizing a large coalition of nations including its immediate neighbours such as Pakistan, Iran, China, if Afghanistan is to witness any long-term peace and stability.

These are no easy challenges and how India manages all these will determine its position in Asia and the world.

China, the most significant threat to the United States, says DNI James Clapper

Director of US National Intelligence (DNI), James Clapper, making a testimony to the Senate Committee on Armed Services on worldwide threats (March 10, 2011) singled out China as the most significant threat, followed by Russia. He added saying that the Chinese nuclear weapons poses the most serious "mortal threat" to the United States among nation states. While Iran and North Korea have been highlighted by the Obama Administration as bigger threats, Clapper clarified by adding that Tehran and Pyongyang are not strategic threats like Beijing as they do not have forces or mechanisms yet to carry out a nuclear strike on the United States. In fact, to Senator Manchin's question as to ask which country was going to the US' greatest adversary, Clapper replied, "Probably China."

For the full testimony, click here.



Other important threats highlighted in his testimony included terrorism; WMD proliferation (Iran and North Korea), apart from regional challenges such as China and North Korea in East Asia; Pakistan and Afghanistan in South Asia; Iran and Iraq in the Middle East, among others. China again figured prominently as Clapper looked specifically at Intelligence Threats and Threats to US Technological and Economic Leadership.

India remains in S Asian bottle

Here's the link to an article of mine on Chinese Premier Wen Jiabao's visit that appeared in today's Pioneer.

The biggest success for China insofar India is to derive maximum advantage from her emerging economy status while at the same time keeping India tied down in sub-continental squabbling. The Wen visit achieved just that.



Premier Wen Jiabao’s three-day visit has produced mixed results, with the business community somewhat satisfied with Wen’s promise to open Chinese market for Indian products, although there was no progress on major political issues that were of critical importance to India. On the other hand, this visit was not expected to result in major breakthroughs. Rather, it seems to have been designed to cool temperatures after a series of face-offs between the two countries. But it may not have achieved even this limited objective because the visit appears to have led to even greater wariness in Delhi about China.

From the Chinese perspective, the focus was almost exclusively on economic and trade issues, evident in the 400-member business delegation that accompanied Wen. But contrary to what many have argued, strengthened economics ties have not contributed to better relations on the political front. If the last few years have seen a dramatic increase in trade, so has been the increase in tension on a range of political issues.

India’s focus, on the other hand, was on several political issues, on which the Indian leadership wanted some resolution from Beijing: the changing Chinese policy on Jammu & Kashmir, China-Pakistan nuclear cooperation and terrorism.

From a neutral approach on J&K in the 1980s through 1990s, China has in recent years adopted a more aggressive and partisan role, questioning even the territorial integrity of India. China’s attempt to carve out areas out of the western sector of the Line of Actual Control (LAC) is reflective of the Chinese intent in rewriting history and redrawing geographical boundaries. How far back would China go into history to make new territorial claims is something to be watched out for. While the recent deletion of about 1,500 km from the boundary is a new phenomenon, the Chinese questioning of Indian territorial integrity has been evident in a series of recent Chinese actions. The issuance of stapled visas to people from J&K, denial of travel permits to senior military officers commanding the region are but two instances. Chinese unwillingness to exchange maps of the western sector at least for a decade is reflective of the Chinese intent to question India’s territorial integrity on J&K. While these may be tactical and minor pricks, India should not lose sight of the strategic thinking behind these tactics.

Second, China-Pakistan nuclear and missile cooperation of the 1980s and 1990s has had lasting geopolitical effects on India. The recent Chinese proposal to sell additional nuclear reactors, grandfathering the agreement as it were in total defiance of the international regime, is a dangerous development. This has implications not just for the India-Pakistan military balance but for the global community. Pakistan is on the threshold of being a failed state, and breeding a dangerous cocktail of terrorism and WMD proliferation. The global non-proliferation regime and the US seem unable or unwilling to put the necessary pressure on China not to go ahead with the proposal.

Third, terrorism should have ideally formed an issue of commonality between India and China given that both countries have been victims of terror. But the Chinese selective approach to fight terrorism places New Delhi and Beijing at two ends of the spectrum. More importantly, Beijing refuses to come on board in acknowledging and putting the onus on Pakistan when the Pak-based terror groups have been actively promoting terrorism in India. The best evidence was the post-Mumbai terror attacks, when China refused to be party to UN action against Pakistan-based terror groups like let for their role in the Mumbai attacks. Selectively fighting terrorism in Xinjiang alone will hurt China in the long-term.

It must be borne that these are rather tactical issues in the bilateral relations to keep India embroiled in the Indian neighborhood. The larger question is whether Beijing recognizes the fact that India is also a rising power that needs its strategic space.

The new policy approach towards India is part of a well-considered, clearly articulated and well-orchestrated policy to deny India the space and potential to move beyond South Asia. In 2005, the Chinese leadership had got an internal study done on India, written by the top South Asia specialists including Prof Ma Jiali, who used to frequent India in the late 1990s and early 2000s. The study recommended, among other things, that China take steps to maintain its strategic advantages over India and try to keep India bottled within South Asia. While the study may be a bit dated, the conclusion of the study appears to have been taken to heart by the Chinese policy elites.

India has been admirably careful and diplomatic in handling Chinese provocations so far. India has little need to open up a northern front while it continues to have trouble from Pakistan. But New Delhi also has limitations, especially in justifying its passive policies domestically. Thus, its forbearance may not last. Hopefully, Beijing will realize that its hardline policies towards Delhi will be counter-productive and that India and China have complementary goals that require cooperation rather than confrontation.

Wen Jiabao Visit -- Expectations and Deliverables

Here's the link to an article of mine on the recent visit of Chinese Premier Wen Jiabao, looking at the potential areas that the Indian leadership is likely to take up with the visiting leader. For the full article, click here.

Chinese Premier Wen Jiabao is on a three-day visit to India against the backdrop of both increasing rivalry between the two Asian giants as well as opportunities for greater cooperation. This is manifested from time to time as both tension and cooperation, both at the bilateral and multilateral levels. Whether tension or cooperation predominates this visit will reveal a lot about the long-term prospect of this important bilateral relationship.



The two sides have improved their relations to a great extent in the last few years, particularly in the economic domain. The trade ties have grown from just US $ 1.99 billion in 1999 to nearly US $ 60 billion this year, but without seeming to have any positive impact on the political relationship. This article outlines the major concerns that New Delhi has. How they are addressed by the two sides will decide how this visit is judged.

For the Indian side, there are four key issues that Prime Minister Manmohan Singh will likely take up with Wen Jiabao. These are the opening of Chinese market for Indian goods; Chinese policy approach on Jammu & Kashmir, including that of the issuance of stapled visas; nuclear cooperation with Pakistan; and terrorism.

Opening up of the Chinese Market

India-China economic and commercial relations have improved tremendously in the last few years. Even while there is imbalance in the trade, this is one area that has continued to flourish without major hurdles. The trade deficit is hugely in favour of China. Another area of concern is that India continues to export mostly raw materials while we import manufactured products. This imbalance is an issue that needs to be addressed.

One major demand from the Indian side has been the opening up of the Chinese market for India. India has demanded opening of the market in three key sectors – pharmaceuticals, IT and agriculture. In spite of efforts by the Indian government and the private sector, there has been hardly any movement. India has a sizeable R&D and technological base in the area of pharmaceuticals and India has produced a variety of cheap and effective drugs for a number of diseases including AIDS. However, India has not been allowed to operate in the Chinese market. Similar has been the case in the areas of IT and agricultural products. This is another issue that the Indian leadership has to take up with China.

Chinese Policy on Jammu & Kashmir

China’s policy on Jammu and Kashmir has oscillated from one end of the spectrum to the other. From a policy of neutrality in the 1980s and 1990s, China has adopted a more active and partisan role today. China’s policy on J&K today represents a mix of aggressiveness and determination, emboldened by the rising politico, economic and military might of the nation. This change in its stance is partly contributed to by the fact that the US is a declining power and there are other power centres in the making, including that of New Delhi and Beijing. The Obama Administration, particularly in the first year of its administration, followed an extremely pro-China policy, adding to the confidence of Beijing. Because of this, China began to sense that it was an important power to reckon with, not just in the region, but even in global terms. Such confidence on the part of Beijing led to more aggressive behaviour in China’s dealing with all of its neighbours and even the United States. The number of maritime issues between the PLAN (PLA Navy) and the US Navy and conflicts involving Vietnam and Indonesia, and India on the land border, are reflective of China’s growing muscle and its willingness to flex its muscles. This new more interventionist policy on J&K appears to be an outgrowth of the US-China joint plan of action vis-a-vis South Asia. It appears to be an after-effect of the US-China Joint Statement in November 2009 for the two countries to jointly manage South Asia. While the issuance of stapled visas may not be directly linked to the changed policy on J&K, China has begun to make serious assertions that the Indian-controlled part of Kashmir is a disputed territory.

Nuclear Cooperation with Pakistan

Nuclear and missile cooperation in India’s neighbourhood has had long-lasting impact in the geopolitics of South Asia. China’s proliferation of nuclear weapons/technology along with its delivery vehicles has clearly altered the India-Pakistan military balance. While some analysts suggest that this is a thing of the past, the recent Chinese proposal to build additional nuclear plants in Pakistan indicates otherwise, in addition to being a clear violation of the international agreements that China is party to. China is seeking to ‘grandfather’ the current agreement into an earlier agreement for the supply of the nuclear reactors. The international community, including the UN and its associated bodies, appears to be unable to persuade China to desist from supplying these reactors. The US appears unable or unwilling to put the kind of pressure needed to stop Beijing from carrying out this arrangement.

Pakistan’s nuclear weapons and the issue of nuclear proliferation have continued to be major issues of concern for US, India and the global community at large. Earlier revelations about AQ Khan having assisted Libya, North Korea and Iran with materials related to uranium enrichment is neither forgotten nor can it be ruled out in the future. The US’s overlooking of Pakistan’s nuclear activities in the 1980s to achieve its Cold War objectives has led to these dangers in Pakistan today. If the US is unwilling to take strong measures against the latest Chinese proposal, the effects could be much more damaging not only for India, but for Pakistan, China and the US.

Terrorism

While India and China are “victims” of terror, the two countries differ drastically on the definitional aspects of terror. For India, terror has originated and continues to originate from Pakistan while China has refused to put the responsibility on Pakistan. The best illustration was the post-Mumbai terror attacks when the UN was to take action against the Pakistan-based terror groups for their role in the Mumbai attacks. China refused to see India’s or even the larger global community’s point of view on fixing the responsibility on Pakistan. China has to recognise that it cannot selectively fight Islamic terrorism only in Xinjiang.

While these are some of the issues that India should take up with the Chinese leadership, it will be naive to expect that China will give in on any of these issues. Wen Jiabao’s visit to India is more of a good will visit or a CBM (Confidence Building Measures) measure to cool the temperatures after the recent tensions on the border as well as the J&K issues. This visit is not expected to be a foreign policy success for either of the governments, from that limited perspective. However, the two countries will continue to be on an “engage” mode, since engagement is the mantra.

As far as China is concerned, Wen Jiabao’s trip is almost singularly driven by economic objectives, evident from the 400-member business delegation that is accompanying Wen Jiabao. China, particularly after the global financial crisis, is on a look-out for markets in Asia, and India offers the largest market. Therefore, China’s singular focus on economic issues is understandable, but India should not give into the Chinese demands without a quid pro quo.

Randon Thoughts on China Factor in Indo-US Relations

State of US-China relations will affect Indo-US relations. Neither do we want to see very close relations between the two countries like during the Clinton administration, where they “want to jointly manage south Asia” just as they did post-1998 n-tests. On the other hand, we do not want to see them hostile to each other and get into conflict situations, where India being a neighbor, may be forced to take sides. That could prove dangerous for India. While the two extremes should be avoided, there are increasing concerns about China, its rise, particularly on the military side. The rising profile actually translates into hardline postures adopted by china in various decision-making foras and those decisions are more taking care of china’s national interests reasons than for regional and global issues. Every country will pursue its national interests, but if they are pursued in a short-sighted manner without any regard for other country could be harmful. Here, China’s repeated attempts at curtailing India’s rise could prove a limiting factor in improving the atmospherics of this important bilateral relationship.



China’s hardlining positions in the last few years, clearly a result of its increasing international profile, is creating difficulties for India and other regional players. It has toughened positions on the border issues, Arunachal Pradesh, Tibet issue. China adopted a less than constructive role in the last few years, evident at the September 2008 NSG meeting, post-Mumbai attacks at the UNSC, and most recently at the ADB where it vetoed and withheld its approval on a development loan for India’s northeast Arunachal Pradesh. Such behaviour on the part of china is going to create increasing frictions on the bilateral relations as well as on the emerging Asian strategic framework.

Such concerns on the part of US and India had become the basis for closer indo-US relations in the last few years. In fact, indo-US nuclear deal was the result of such a line of thinking. The more sec concerns with china, the more we will look at the US for closer relationship. How and whether the US reciprocates in another matter. So far it has. But how the Obama administration will look at the China and india is extremely important. Especially under the current circumstances where china and the US are caught in a symbiotic relationship. Their closer ties are bound to have effect on Indo-US relations. However, this is not to suggest that this is a zero sum game, that improvement in one relationship will necessarily lead to complete downturn in the other relationship. It might be correct to say that it will be a negative sum, where a strengthened US-China relationship could slowdown in certain aspects. An improved Indo-US relationship will have negative effect on Sino-India ties as well as a slowdown in US-China relations. Similarly, an improved US-China relations will raise the antenna in New Delhi and could affect both US-India as well as Sino-India relations.

US partnership with China on a range of issues on global governorship, is understandable, from North Korea to Afghanistan and Central Asia to the current economic crisis, but if this relationship is strengthened at the cost of India, it could lead to a slowdown of Indo-US relations. It will also have its ramifications on the emerging Asian security order.
This is not to say that the US does not have any concerns. At least until early this year, these concerns were pretty loud and clear.

At the same time, closer Indo-US partnership – concern for china. India’s rising profile of which Indo-US relations is one aspect, continues to worry China. Although India has never been formally listed as one of the challenges that China faces, it certainly irks them to see a more powerful India in its neighbourhood. As India continues to re-define and modify its foreign and security policies, given its increasing stature in the international arena, it calls for a dynamic debate on how Beijing views this emerging pole.

There have been several analyses pointing out to Chinese concern on a rising India –talking about India’s democratic and capitalist orientations, India’s territorial disputes with China, talking about India having a militaristic and religion-based strategic culture. Similarly, China views India as a “future strategic competitor” that would join any anti-China grouping in the future. In fact, one of the well-known scholars, Mohan Malik brings to the fore an internal study undertaken in 2005 that recommended China to undertake measures to keep the current strategic leverage in terms of territory, P-5 membership, and the Nuclear Club, hold on to diplomatic advantages through its special relationship particularly with India’s neighbouring countries and as also maintain the economic lead over India. This has become evident several times in the recent past, which all is an evidence that China does not willingly accept India's rise on the world stage, nor the prospect of closer US-India ties. However, India’s rising stature is a reality and China has to live with that reality.

Another issue. India’s role and stand on Tibet may be irksome to the Chinese leadership.
China has continued to reiterate its claims on Tibet and thereby Arunachal Pradesh through a series of statements as well as action on the ground by the PLA forces. Chinese leadership’s assertion to choose the next Dalai Lama is another way of pressuring India and Tibet on its claims, because such a step would essentially mean India conceding its access to the Tawang monastery. Article 2 of the Shimla Agreement was categorical to state that China recognizing the autonomous nature of Tibet shall “abstain from interference in the administration of Outer Tibet (including the selection and installation of the Dalai Lama),” which was totally left to the Tibetan government in Lhasa. The recent Chinese interest in the selection of Dalai Lama go against the principles of this treaty. However, China will continue to maintain the stand that it does not recognise this treaty as any valid instrument.
China has unleashed huge economic and infrastructural development programmes in Tibet as part of this larger politico-military objective of systematically killing the spirit of Tibetan nationalism. The new railway line – Qinghai-Tibet line – is being further extended, linking Lhasa with Shigatse and Yadong, near the Sikkim border. Hence, if China has some concerns of India’s strengthening relations with the US and other major powers, India too has concerns of a rising China whose ambitions are not very clear.

Arms control issues: FMCT, CTBT. These are issues that are going to be taken up by the Obama administration before too long. Obama’s renewed interest in getting the Comprehensive Test Ban Treaty (CTBT) ratified by the US Senate and thereafter by other countries, including India and Pakistan could become a sore point in bilateral relations. India remains opposed to signing CTBT and this was clarified recently again by India’s envoy on nuclear issues, Ambassador Shyam Saran. He stated that India remained opposed to CTBT because it “was not explicitly linked to the goal of nuclear disarmament.” Additionally, he said, “this was crucial since it was not acceptable to legitimize, in any way, a permanent division between nuclear weapons states and non-nuclear weapons states.” Shyam Saran in fact suggested that if abolition of nuclear weapons was an agenda, then both India and the US should establish a working group at the Conference on Disarmament in Geneva to chart a future direction, which could possibly be a positive and constructive link in the bilateral relations. If Obama administration is willing to look at strengthening Indo-US ties, this could be a positive agenda on the table. Otherwise, this is an area where the US and China will arrive at a common position and that could prove harmful for Indo-US relations. US and China already have similar positions on FMCT.

Terrorism: South Asia is the other area. In fact, the AfPak strategy that has come about, linking Kashmir to the security of Afghanistan, it is not a very palatable situation to India. This is exactly what Pakistan has always sought and it could possibly an area that China too agrees. There again, you have China, US and Pakistan on the same side and this could create setbacks in Indo-US relations.