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Caretaking Democracy: Political Process in Bangladesh, 2006-08 by Sreeradha Datta September 10, 2009 1830 hrs Book Release

Book release by Salman Khurshid, Minister of State for Corporate Affairs & Minister of State for Minority Affairs (Independent Charge)
Followed by Panel Discussion: Leela K. Ponappa, Deputy National Security Advisor, Deb Mukharji, Former High Commissioner to Bangladesh, and Hiranmay Karlekar, Consulting Editor, The Pioneer.
Date & Time: September 10, 2009 at 1830 hrs
Venue: Lecture Hall, IIC, Annexe, 40, Max Mueller Marg, Lodhi Estate, New Delhi

The Afghan Maze and India's Options September 04, 2009 Vishal Chandra 1030 to 1300 hrs Fellows' Seminar

Chair: K C Singh
Discussants: Ravi Sawhney and B R Muthukuma

This paper is an attempt to assess options before India as insecurity and political uncertainty returns to Afghanistan. The author argues that with the re-emergence of the Taliban, some of the old issues that haunted Indian foreign policy makers in the 1990s have re-appeared in a more complex form. He notes that while the US has expanded the scope of its Afghan mission to the east of the Durand Line, it at the same time appears to be running out of time and strategy. The US-led ‘war on terror’ remains constrained by the ambivalence of its own allies, be it the NATO or Pakistan. Amidst these realties, he points out that India is often expected to play a ‘greater’ (or a different) role in the region, and yet exercise supreme restraint.

The main argument of the paper is that India as a politically non-interfering and a benign regional economic power holds a better chance of exercising influence within Afghanistan in the long-run. He cautions that any adventurous policy would be counter-productive. India is more likely to be exploited given the highly factional and externalized nature of Afghan politics and conflict. Emphasizing that there are multiple centres of power in a socially polarized Afghanistan, over-identification with one could lead to alienation and deep suspicion among others. The author argues that a lack of balance in engaging actors could further limit India’s leverage and work to the advantage of forces opposed to its engagement with Afghanistan. It is also important to take into account the multiplicity of extra-regional actors involved and the changed regional environment. The paper observes that lack of coordination among the regional countries on the Afghan issue has to an extent widened the space for big power rivalry around Afghanistan.

The paper raises some key questions. What kind of leverages India has within Afghanistan or in the region? How viable and achievable are India’s desired objectives in Afghanistan in the longer run? Moreover, before talking of options and counter-strategies, it is important to assess the nature and level of threat from the Taliban for India, and what exactly are India’s objectives in Afghanistan. Similarly, it is equally pertinent to recognise the relevance and perception of India’s actual and expected role across the political and social spectrum of Afghanistan. How far Afghans are willing to go with India’s interests and objectives?

The paper argues that Pakistan shall remain indispensable to the US’ regional agenda. Despite the new Af-Pak strategy, the US has been unable to push Pakistan beyond a point, for where are the options before the US if the latter simply refuses to cooperate on the Afghan issue. Similarly, the US cannot be sensitive to India’s security concerns beyond a point where it begins to impinge on its relationship with Pakistan. In fact, by ceding territories to the Taliban and other Islamist groups, Pakistan has increased its leverages and bargaining power. Today the US is dependent on Pakistan more than ever, right from intelligence sharing on al Qaeda, to ensuring regular supplies via the Khyber Pass for its growing number of troops, and checking Taliban and al Qaeda militants from crossing over into Afghanistan. In view of the above, India’s role and options vis-à-vis Afghanistan are likely to remain reactive and curtailed. The paper posits that patience, information, innovation and sustained focus are critical to strengthening India’s position within Afghanistan and the wider region.

The paper is broadly delineated into three sections. The first section brings out India’s engagement and objectives in Afghanistan; the second section evaluates the mutual perceptions of India and the Taliban; and the third section examines the implications of the US’ new Af-Pak strategy for India. The paper concludes with perspectives on India’s options in Afghanistan.

The author brings out the Indian involvement in Afghanistan. The overthrow of the Taliban regime and the subsequent involvement of the international community in re-building Afghanistan were in consonance with India’s perceived interests and objectives in Afghanistan. India felt vindicated. For the first time since the end of the Cold War, India also found its interests converging, and those of Pakistan conflicting, with US interests on a regional issue. He points out that in the Indian view a strong, unified and an independent democratic Afghan state capable of deterring the return of Taliban would be in its interest. India set out to assist in the reconstruction of Afghanistan and in strengthening the capacity of the central administration, through both bilateral and multi-lateral mechanisms. He points out that India has been conducting training programmes for Afghan government officials since 2003, and has also deputed Indian civil servants as mentors and guides developing training modules in Afghan ministries and departments since 2007. Since 2006, India has been extending nearly one thousand scholarships, both long-term and short-term, for Afghan students and young professionals in Indian institutions of their own choice on an annual basis.

India is the sixth largest bilateral donor and the largest regional donor country to Afghanistan with its reconstruction assistance totaling $1.2 billion till date. Around 2003-04, India announced the commencement of various huge projects in Afghanistan, such as, the construction of Zaranj-Delaram road in south-western Nimroz province (completed in 2008); the Salma Dam project in western Herat province (completion by 2011); construction of Afghan parliament building in Kabul (completion by 2011); construction of 220 KV transmission line from Pul-e-Khumri to Kabul and a sub-station at Chimtala to bring additional power from the northern grid to Kabul (completed); restoration of telecommunication infrastructure in 11 provinces; and expansion of national TV network by providing an uplink from Kabul and downlinks in all 34 provincial capitals (completed).

The construction of the 218-km long road linking Zaranj close to the Iranian border with Delaram on the Kandahar-Herat national highway was probably the largest and most challenging of all the Indian reconstruction projects. The Zaranj-Delaram road is supposed to link up Afghanistan’s national highway with the upcoming Iranian port of Chabahar on the Persian Gulf. The project was said to be crucial to improving India’s accessibility to Afghanistan in view of Pakistan’s refusal to provide overland transit facilities for Indian goods. Presently, India takes a long circuitous route via sea to the Iranian port of Bandar Abbas to transport goods to Afghanistan. This road is also supposed to improve landlocked Afghanistan’s access to the sea for commercial purposes. Similarly, India’s other huge projects were aimed at strengthening the authority of the Afghan state.

India later turned towards small development projects based on local needs and community participation. This was also done keeping in view the continuing limitations of the Afghan government in taking developmental activities to people in the provinces. These were projects with direct, immediate and visible impact on the lives of the Afghan people and enjoyed local support and ownership. Presently, 84 such projects mainly in the field of agriculture, rural development, education, health, vocational training, and solar electrification are in various stages of implementation in 19 provinces of Afghanistan. In fact, India’s reconstruction assistance has been multi-sectoral comprising education, health and services, transportation, telecommunications, civil aviation, agriculture, irrigation, power generation & transmission, industry, and rural development. India played a significant role in ensuring Afghanistan’s entry into SAARC as its eighth member in 2007 in order to integrate the Afghan economy with the South Asian region. India also hoisted the Second Regional Economic Cooperation Conference on Afghanistan in November 2006

Indian interests in Afghanistan are increasingly being threatened by rising violence and growing instability brought about by the growing influence of the Taliban on either side of the Durand Line. However, India remains steadfast in its commitment to Afghan rebuilding. Moreover, unlike projects executed by Western NGOs, Indian projects are highly appreciated by the Afghan people as they are carried out in full consultation with the concerned Afghan ministries and provincial/district administration, and are based on the specified requirements of the Afghan people. India thus engaged the people of Afghanistan, key to the success of any reconstruction or rebuilding policy especially in an in-conflict environment. The author asserts that the Indian commitment to Afghanistan against all odds shows the way forward in Afghanistan. It serves as an example for countries whose commitments to the Afghan mission have been floundering as they keep looking for a way out of Afghanistan. He concludes the section by flagging off the question- Is abandoning Afghanistan a solution?

The author notes that India’s stated policy towards the Taliban has been very clear since the beginning. In the Indian view, the Taliban regime was “obscurantist, bigoted, blinkered and sadistic” which took “Afghanistan to a dark age scarcely to be credited in the world today” and that “the Taliban should go, lock, stock and barrel.” India strongly believed that the Taliban “have to be extirpated from the roots, in the interest of not just Afghanistan but also the countries in its neighbourhood, as well as of the international community”, and that it is “a collective imperative and obligation” of the international community “no matter how long it takes or how demanding it may become.” By sponsoring the Taliban, Pakistan created a strategic space for itself inside Afghanistan from where it could carry out anti-India activities with ease, especially training and mentoring of militants for carrying out subversive activities in India, while maintaining a denial mode before the international community. India would often cite strong linkages between Pakistani terrorist outfits operating in Kashmir valley and the Taliban regime. It was in view of the above that India had supported the anti-Taliban coalition, the United Front (or the Northern Alliance), along with Russia and Iran.

In an attempt to gauge Taliban perceptions towards India, the author referred to articulations by the former Taliban Ambassador to Pakistan, Abdul Salaam Zaeef, and the former Taliban Foreign Minister, Wakil Ahmed Muttawakil. In an interview in February 2001, Zaeef had spoken of the Talib’s explicit desire to have “normal relations” with India based on a policy of “non-interference”. Zaeef was of the view that as neighbours both countries must have “diplomatic relations and commercial ties.” Zaeef had also asserted that Afghanistan’s close relations with Pakistan “is never an obstacle to have good relations with anyone else” and that adversarial relationship between India and Pakistan “will not have an impact on Indo-Afghan ties.”

Similarly, the former Taliban Foreign Minister Muttawakil, in an interview in July 2009, had argued that “India should look at Afghanistan through its own lens, not through the Pakistani lens.” He was of the opinion that “one of India’s biggest mistakes was to support the puppet Soviet regime in Kabul because the mujahideen were based in Pakistan” and “India’s second mistake was not to recognise the Taliban.” He further argued that “the Indian government should accept the presence of the Taliban in Afghanistan and support the peace process. After all, the Taliban are a part of Afghan society.”

The paper argues that while the Taliban are a mix of both ethnic and Islamist politics interspersed with geo-political aspirations of regional and extra-regional actors, it is at the same time neither a credible Islamist nor a wholly ethnic movement as is often projected. This is precisely where, the paper forewarns, India has to tread carefully while dealing with Afghanistan.

The author asserts that any attempt to expand the mandate of Af-Pak to India would prove counter-productive for the US. Merging Af-Pak with Pak-India, or mixing the two separate issues of Afghanistan and Kashmir, will only complicate the environment and work to the advantage of the Taliban, al Qaeda and pro-Taliban elements within the Pakistani establishment. Though the US has repeatedly ruled out any possibility of India being part of Richard Holbrooke’s mandate, the division of opinion within the Obama administration remains. In the given circumstances, the challenge before the Obama administration is to ensure that the Af-Pak strategy is spared from motivated efforts to divert its attention and resources.

The paper argues that the idea of engaging “non-ideologically committed” Taliban, especially “mid-to-low level” insurgents, is not likely to bear any concrete results. The white paper on interagency policy group’s report on US policy towards Af Pak warns that the “practical integration” of reconcilable Taliban “must not become a mechanism for instituting medieval social policies that give up the quest for gender equality and human rights.”

The new Af-Pak strategy appears to be very Pakistan-centered as well. The author asserts that the whole idea of setting benchmarks to ensure the effectiveness of the huge aid being doled out to Pakistan is not likely to work vis-à-vis the Afghan Taliban. Where are the options before the US if Pakistan simply refuses to adhere to the conditions attached or fails to meet the benchmarks? Remember how the ISI chief had refused to meet Admiral Mike Mullen and Richard Holbrooke when they had visited Islamabad. The author observes that a flip side of the new strategy is that it could make the US more dependent on Pakistan and thus more open to exploitation, which in turn could dilute the Af-Pak strategy over a period of time. Though Pakistan argues that targeting militant hideouts inside its territory through drone attacks is strengthening the hands of the Taliban, but not sending drones will not weaken them either.

The author refers to possible US pressure on India to ‘normalise’ its relations with Pakistan by resuming the composite dialogue in order to ensure that Pakistan is able to concentrate on its western tribal frontiers. Pakistan could use its India-specific threat perceptions to ensure sustained Western pressure on India while militants based in Pakistan carry on with their subversive activities against India. In such a scenario, the key question for India would be how to react in case of a repeat of a 26/11 Mumbai-style terrorist attack?

The author argues that the centrality of the core goal of disrupting, dismantling, and defeating al Qaeda in the new Af-Pak strategy makes the US approach relatively selective as far as anti-India terrorist outfits based in Pakistan are concerned. It also makes the US agenda narrow in terms of sparing resources and attention for institution-building in Afghanistan. The paper warns that there could be a point where the Indian view may start diverging from those of the US in the region.

The proposed Contact Group on Afghanistan and Pakistan (mainly comprising of US’ NATO and other allies, Central Asian states, the Gulf nations and Iran; Russia, India and China) in the Af Pak strategy is likely to run into rough weather. A West-initiated and dominated contact group on Afghanistan may not be acceptable especially to Russia in view of its known opposition to NATO’s eastward expansion and growing differences on the Georgian issue. While Russia has agreed to provide transit facilities for NATO supplies to Afghanistan, at the same time it has been re-asserting its influence in the former Soviet space. Same is the case with Iran given the ongoing standoff with the West on its nuclear programme. Not surprisingly, for China, the Afghan problem; problem between Afghanistan and Pakistan; and India and Pakistan, are all inter-related. In the Chinese view, the new Af-Pak strategy will not succeed until Pakistan is stabilized and India-Pakistan differences are resolved.

Interestingly, an Asian initiative too would not be an easy proposition. The special international conference on Afghanistan organized by the Shanghai Cooperation Organisation (SCO) at Moscow on the day the Obama administration announced its new Af-Pak strategy, and the subsequent UN special conference on Afghanistan at Hague on March 31, are reflective of the geo-political competition taking place around Afghanistan. The author is of the opinion that India is likely to remain marginalised in the regional processes on Afghanistan in view of the ongoing big power contest (the US, NATO, Russia and China) for control over vast Eurasian resources, unless it gears up for a strong regional diplomacy.

Perspectives

The author concludes by saying that the biggest challenge before India in Afghanistan is sustaining the momentum of its engagement with the government as well as the people of that country. The paper points out that given the highly externalized security architecture of Afghanistan, India’s involvement in reconstruction activities would remain entwined with the success and failure of the Western military strategy. In view of India’s stated interest in the stability and security of Afghanistan, he notes, India is often expected to ‘do more’, a veiled reference to India militarily contributing to the Western efforts.

In this regard, the author pointed out that it is important to grasp whether the Afghans (not only the Afghan government) want Indian boots on Afghan soil? How different sections of the Afghan population are going to perceive and respond to it? Would it not bring Indian forces in conflict with Pashtuns (even if Indian forces are positioned in a non-Pashtun area)? And, why India alone should do this? How many other Asian powers are willing to put their boots on the Afghan soil? Is there any support for India’s military involvement at the regional level? And, is India as a nation prepared to play the ‘game’?

It is clear that the Russians and Chinese are not willing to send their troops to Afghanistan. It is equally important to take into account how Sino-Pakistan relations are likely to play out. In the given circumstances, India could do much better in terms of training Afghan military officials and contingents at its own facilities within the country or in a third country.

Today India is the only country which singularly and vociferously argues for the need to extirpate the Taliban. India remains a lone voice against a chorus calling for reconciliation with the Taliban. Even Kabul and the former opponents of the Taliban, the National Front, are willing to reach out to the Taliban, who are now increasingly considered as part of the solution. Even the Russians to some extent appear to have accepted the idea of engaging the ‘moderate Taliban’. The Russian position is similar to that of Kabul and Washington.

There is no doubt that the Taliban should not be the future of Afghanistan, at the same time it is more than evident that they cannot be physically eliminated. They are Afghans and part of the Afghan polity. Whether Mullah Omar and Osama bin Laden are alive or dead, it is their legacy, their ideas which have to be fought in a patient and collective manner. If categorizing them as ‘moderate’ or ‘good’ and ‘bad’ helps in weakening them, splitting and splintering them, so be it. The US missed the opportunity of completely destroying Taliban as an organization, and to an extent as an ideology, between 2002 and 2006. An enemy, a force, or an ideology which can’t be destroyed, has to be engaged after a point. The West cannot stay on in perpetuity. This is what keeps the Taliban going and it shall remain so. The other option is to deny a fall back option to the Taliban which exists in Pakistan. But is Pakistan willing to completely de-Talibanise its Afghan policy? Pakistan too is waiting and buying time.

On the US policy which remains al Qaeda-centric, the author argues that it was clear from day one that Operation Enduring Freedom was not meant for fighting the Taliban in every nook and corner of Afghanistan. The US too seems to have kept the option of integrating them open. Meanwhile, reconciliation with the Taliban too will not easily come through. Where is the incentive for the Taliban to negotiate when they know that they may not be winning the battles but they are not losing the war either, and that kills the asymmetry.

The paper observes that India may have to deal with a ‘government’ in Afghanistan that includes Taliban members. Taliban are to be seen as a manifestation of various regressive tendencies resulting from the adversarial politics of the Cold War era. The author states that the Taliban too are not going to stay on in its current form for perpetuity. The dynamism of Afghan polity would sooner or later consume them or may even present them in a different form. The Indian obsession over the destruction of Taliban is only contributing to its re-hyphenation with Pakistan. Longer the hyphenation, lesser the chance for India’s candidacy, as far as regional mechanisms are concerned. Openly engaging Kabul-based former Taliban in New Delhi would send a stronger message to Islamabad than sending forces to Afghanistan. It has to be understood that terrorism is a non-conventional threat which cannot be countered with conventional means alone. At times it requires unconventional measures to address it. Could there be a regional strategy to make the Afghan Taliban relatively independent of Pakistan in order to gradually neutralize them?

As for the rising threat levels to India’s presence in Afghanistan, it is proof of its steadfast approach towards rebuilding of the Afghan state, something Western countries have been notably lacking. Afghan reconstruction is not about pumping billions of dollars, but working with and for the Afghans. Today, the need to protect the achievements of the Bonn Agreement and the political process that flowed from it, however flawed it may have been, is more than ever. Never before in the history of Afghan conflict, has the international community been involved in such a manner in rebuilding a modern Afghan state. The paper argues that there will be corruption, violence, short-sightedness, misunderstandings, dissatisfaction, repeated failures, but the process must go on.

Given the current limitations, the author recommends that India will have to do some strong diplomacy at the regional level to be able to craft new options in Afghanistan. As part of a regional approach, India can explore possibilities of forging consensus with countries like Russia, Iran, and Turkey to train the Afghan National Army. India can contribute military instructors and trainers, and the Russians can equip the Army. Turkey’s presence could be significant from NATO’s viewpoint. This can go a long way in taking the load off the US and the NATO so that both could concentrate on fighting the Taliban and al Qaeda. However, this option is open so far as Western troops are deployed in Afghanistan.

The paper concludes stating that India may not presently have great options in the Afghanistan-Pakistan region. But there is one option which India should practice and always protect: the option of not going terribly wrong, of not over-hyping itself, in Afghanistan.

Points raised during the discussion:

  • Need to explore options of engaging Iran on Afghanistan.
  • In the regional approach dealing with Iranians and Russians will have its own set of problems.
  • Taliban ideology is what we have to combat not the Taliban. Education and economic development need to be strengthened on this front.
  • There is no short term strategy for Afghanistan.
  • Options for India require greater analysis.
  • We need to examine socio-economic, political and military options separately.
  • Military training, military supplies and providing military infrastructure as options should be explored
  • One needs to look at the alternatives clearly and military options need to be explored in greater detail.
  • There is a need to fight the Taliban on the basis of ideas.

Prepared by Medha Bisht, Research Assistant at the Institute for Defence Studies and Analyses, New Delhi.

South Asia
Vertical interaction course for IPS Officers August 31, 2009 to September 04, 2009 Training Capsules
India's Nuclear Command and Control: Perspectives from Organization Theory August 28, 2009 S Sasikumar 1030 to 1300 hrs Fellows' Seminar

Chair: K Santhanam
Discussants: Gurmeet Kanwal and Manpreet Sethi

Nuclear and Arms Control
Revitalising the Ordnance Factories August 28, 2009 Laxman Kumar Behera 1030 to 1300 hrs Fellows' Seminar

Chair: Vinod Kumar Misra
Discussants: V. K Chopra and G Balachandran

The aim of this paper is to analyse the reasons behind the poor performance of the ordnance factories (OFs) and recommend measures to revitalize them. To achieve this, the author, Laxman Kumar Behera, identifies six core areas pertaining to OFs. After identifying the problems in these areas he goes on to suggest measures so that the functioning of the Ordnance Factories can be improved.

Structure and Functioning of Ordnance Factories

The author is of the view that the structure of Ordnance factories has several weaknesses, impacting the functioning of the Board, and the performance of the factories.

Under the current dispensation, the Ordnance Factory Board (OFB) has limited functional autonomy. Unlike the Defence Public Sector Undertakings (DPSUs), the OFB is mostly controlled by the Ministry of Defence (MoD) in critical areas such as product development, research and development (R&D), formation of Joint Ventures and in making commercial decisions. These restrictions have not allowed the OFB to graduate into an independent industrial enterprise.

Second, the Board Members, especially those responsible for the operating divisions and staff functions, are not geared to take full responsibility in their areas of functioning. It is primarily because the members have neither time nor power under the current setup. Members of the Board are appointed at the verge of their retirement, providing them very little time to oversee their job.

Third, members are considered ‘rubber-heads’, since most of the production related decisions are taken in the Board meeting and executed through the heads of the concerned factories, with little central monitoring by the Members who are supposed to head a certain group of factories.

Various committees have been constituted from time to time to recommend measures to energize the management of these factories. Despite repeated recommendations by various committees to corporatize the OFB, the government has not done so, apparently because of strong opposition from labour unions associated with these factories. The author recommends making these factories autonomous so as to make them independent in their areas of operations. However, he notes that this autonomy should come with greater responsibility on the part of OFB. And as for making OFB more efficient the MoD needs to outline a time frame by which all the contracts are awarded to OFs on a competitive basis.

Range and Depth of Ordnance Factories’ Production

According to the author, OFs have a wide range of products. But these are not enough to meet the requirements of the armed forces, thus forcing the government to resort to direct import from others. These imports are from various countries such as Israel (towed gun and mortar), Italy (naval gun), USSR/Russia (naval gun, towed gun, SSM launcher and MRL, Mobile AD system, tank, APC, IFV), Sweden (towed gun), Poland (ARV), Slovakia (ARV), South Africa (APC/ISV) and UK (AEW). In addition to direct imports, some of the items are also license-produced or assembled from SKDs and CKDs, based on technical assistance from importing countries.

The author ascribes the lack of an advanced defence R & D base in India and within the organization in particular as the reason for the import of such a wide range of products. He stresses that the government needs to strengthen the in-house R&D facility of the ordnance factories to overcome this problem.

Execution of Orders

The author views the timely execution of orders by the ordnance factories is often a source of acrimony between the OFB and the Armed Forces. The armed forces officials say that the factories are ‘simply unable’ to meet the production requirements, affecting their operational readiness. They further say that the shortfall in OF production is often behind schedule, even after the target for production is lowered from the original requirements. On the other hand, OFs officials maintain that the shortfall is on account of factors remotely related to their production capabilities. They accuse the army of late finalization and placement of orders, resulting in delay in the production programme.

To resolve this problem the author suggests that since the production could not be augmented in a short span of one year, the armed forces could consider giving firm orders for 2 to 3 years. It would also be appropriate for the armed forces to engage the OFB more proactively during the stage of the finalization of services’ long-term perspective plan (LTPP), especially the part which pertains to factories.

Pricing of OF Products

The OFs operate on ‘no loss no profit’ basis. That is to say that the products are supplied to the Armed Forces at a price, taking into account only the actual cost of production, which include the costs of material and labour consumed and the overhead charges. However, according to the author, this cost plus mechanism of pricing is widely believed to be inefficient on three counts

First, the new system of determining and fixing the price of major items supplied to the defence forces is not working optimally because of delays in finalising and reporting the cost estimates at the time of price negotiations.

The second reason is related to efficiency in the usage of both labour and materials. Officials conversant with the functioning of factories state that the organization has a very high input usage rate, due to lack of process improvement and skill up-gradation of the labour force.

The third factor is the issue of ‘surge capacity’. The surge capacity carries a minimum cost in terms of overhead charges. The only way the cost on this account could be reduced is through better utilisation of labour, plants, machinery and stores. Although the factories as a whole have been able to reduce the percentage of overhead charges to total cost of production over the years, the reduction is hardly due to any efficiency gain. Moreover, the reduction in overhead charges is not uniform across the group of factories, which suggests an absence of systematic efforts to curb overhead charges.

Quality of OFB Products

The poor quality of products is yet another area for concern for OFBs. It has been confirmed both in the Parliament and in the Comptroller and Auditor General of India (CAG) Report. Army officials, both present and retired, interviewed by the author said that most of the OF products are below mark, and often the cause of loss of life to service personnel. To make the quality better the MoD of late has asked OFBs to move towards the process of self-certification, a norm widely practiced globally. Though OFB has started self-certification of their products, the items as of now are restricted to low-tech items like clothing and general stores. At present there is no time-frame for covering the entire product range. The author asserts that the MoD in consultation with the OFB should lay down the precise time frame, by which all the items supplied, including those overhauled by them, would be self-certified.

Exports

Despite giving OFBs some incentives exports have not really gone up over the years. At present, only a fraction of their sales come from exports. Besides, not all the factories are in the export business. There are several factors behind OFB’s poor export performance, some of which are not in its direct control. For instance, the OFB’s exports are limited to only those countries which do not figure in the ‘negative-list’, as maintained and conveyed by the Ministry of External Affairs. Similarly, the OFB cannot export some of its high-value systems such as tanks, some ammunition and infantry fighting vehicles because they are based on foreign technology, and require permission from its overseas collaborator for sale to third parties. The export potential is further constrained due to some of the OFB products’ non-compatibility with NATO specifications.

Although the OFB of late has taken a few measures - such as procedural simplification, hosting an “international generic” and product demonstration in major arms exhibitions – they have not resulted in any significant dividend. The author states that the lack of enthusiasm of customers is primarily because of two factors. First, international customers are not yet convinced about the competitiveness of OFB products, in terms of both quality and price. Second, the OFB has so far not taken a corporate approach in establishing a brand image for its products.

The author concludes by saying that unless the foregoing aspects are taken care of, there is little hope of revitalizing the ordnance factories.

Points raised during discussion

  • Instead of increasing the range and depth of existing products there is a need to improve existing products.
  • Is corporatisation the only viable solution to end deficiencies of OFs?
  • OFs should give importance to core areas of specialisation and leave other parts to the corporate sector.
  • Delays take place in the delivery of new products as it takes some time to prepare prototypes.
  • To increase the efficiency of OFBs the lead time of 42 months can be reduced to 24 months.
  • The credibility of Self Certification needs to be ascertained.
  • There should be a mechanism of Checks and Balances so as to increase the productivity of OFs.
  • Technological absorption is extremely low in OFs.
  • There is no reliable system to access the performance of OFs.
  • The export targets in OFs are set without estimating capacity and hence targets are never met.
  • OFs should be run like businesses and should be incentivised.
  • Studying OFs and OFBs is considered “unglamorous”. So very few studies are conducted on their way of functioning.
  • There exists a structural problem in the very set up in which OFs operate so the synergy among the Armed Forces, DRDO and OFs is not present.
  • There is a lack of transparency, accountability and inadequacy in terms of Information Technology in OFs.

Prepared by Sandeep Anand, Research Assistant at the Institute for Defence Studies and Analyses, New Delhi.

Defence Economics & Industry
Engaging Iran: Opportunities and Challenges for India August 06, 2009 Round Table

A round table on “Engaging Iran: Opportunities and Challenges for India” was organized by the Institute for Defence Studies and Analyses on August 6, 2009 against the background of the recent visit by an IDSA delegation to Tehran. The main focus of the discussion was on recent developments in Iran, and how the new government under re-elected President Ahmadinejad will open opportunities and challenges for India. The discussion also looked at how much of substance India and Iran have been able to put into their strategic partnership launched in 2003. Director General IDSA initiated the talk with a brief description of the Iranian perception of India’s policy towards Iran. The round table discussed the following questions:

  • What are the political trends in post-election Iran?
  • Where does India figure in Iran’s foreign policy priority?
  • What is the current status of India-Iran relations?
  • What are the problem areas between India and Iran?
  • How should India meet Iran’s concerns?
  • What should be India’s policy towards Iran?

There was a common consensus that Iran is an important regional player and that India needs to engage it. However, views differed on the question of how to engage Iran.

The observations and comments during the round table can be summarized as under:

Iranian Perspective about India-Iran Relations

  • The IDSA delegation noted that Iranians gave adequate signals that though bilateral relations are normal, they cannot be termed as excellent. India should spell out its foreign policy aims and objectives towards Iran. For excellent relations the Iranians expect India to come out with a clear stand on Iran. It was pointed out that the Indian Prime Minister ignored Iran during his visit to Qatar.
  • Cooperation in defence and security issues is insignificant. Most of the MoUs signed are not implemented. Iran wants to cooperate in high-technology areas with India. Though economic ties are continuing between the two countries, this does not reflect the real potential of both countries.
  • If both countries can define a new mechanism of cooperation then relations can improve. It was suggested that bilateral relations can be taken from the normal to the strategic level. India is missing the bus while the Chinese are at the forefront.
  • Iranian officials were of the view that the deadlock in international relations is because of the unilateral approach of one particular country, and that ‘Asian Integration’ was the way to solve these problems. ‘Collective regionalism’ could be a possibility. In fact, the formation of the ‘Asian and Regional Security Structure’ would help solve security issues and will help enhance cooperation in energy and transportation sectors, thus creating a favourable environment for regional economic cooperation.
  • The IDSA delegation was informed that there is a need for more dialogue between the two countries. It was suggested that there should be two bilateral dialogues in a year to fill the communication gap between India and Iran and to evolve new mechanisms of cooperation to take bilateral relations to new levels.
  • Iranians think that the West, particularly the US, is influencing India’s Iran policy. They are of the view that the Indian government does not follow an independent foreign policy. Most of the time it appears to be working at the behest of the US. This is even visible in private companies’ behviours. For instance, Tata and Reliance are not doing fairly enough in building the two countries’ economic relations.
  • Four factors were identified for strengthening Indo-Iran cooperation – introduction of new ideas, focus on Asian identity, intention for future cooperation, and implementation of various agreements signed between the two countries.

Internal situation in Iran

  • On the surface the political situation looks very normal, though there seems to be a clear divide within the Establishment. The recent election has clearly revealed the growing opposition to the Ulema in Iran. There were several modes and forms of resentment against the leaders. Iranian society is passing through a phase of obvious dissent.
  • The dissent against the election result was there, but it was limited in terms of class and section of population as well as areas too. It was elitist in nature, led by the middle class, students and women. The protests were confined mainly to select urban areas, though there were exceptions like Tabriz, Mashad, etc. There was no evidence of resistance in rural areas. Only some Western media are telecasting and writing about this.
  • Ahmednejad has taken care of the basic needs of the people, particularly in the rural areas. Hence, this has also worked as a breakwater for the movement against the newly elected government.
  • The Urban educated youth have become restive; they are interested in exploring career opportunities in Western countries. Good employment opportunities seem to be lacking and this might be the effect of Western sanctions. This section does not want Iran to be misrepresented in the US, the West and the world.
  • While Iran puts up a face that its economy is doing better, it is evident that sanctions are having an adverse impact.

Iran’s foreign policy priority and India

  • It was articulated that Iran will perhaps continue its past foreign policy where the priority would be to enhance relations with Islamic countries and countries in the region. India would figure as an important country with which Iran would like to have close relations because of India’s past relations with Iran and its regional power status and potential to play an important role in the region.
  • The physical presence of China is noticeable in the Iranian metro, hotels, and in the oil and gas sector. The Chinese have shown a lot of interest in Iran. One of the countries which has pursued a long term policy vis-à-vis Iran is China. Even the Russians seem to be pursuing a short term policy approach towards Iran, and sometimes Russian policy becomes ambiguous.
  • It is quite visible that the Chinese are receiving high priority in the Iranian foreign policy agenda. The reasons are perhaps, that China is a member of the UN Security Council, and the Chinese presence in the region is obvious be it in Afghanistan, Pakistan or other Middle Eastern countries.
  • Iran’s relations with the US are expected to be mixed. One does not see a very robust Iranian response to Obama’s offer. It is visible that despite sanctions, Iran has persisted with its nuclear programme, particularly the Heavy Water Reactor at Arrakk, and human resources are being trained in Germany. The upper Middle class hopes to replace the present regime and alter its policy with respect to the US, though Iran wants all these to happen on its own terms.
  • Iran notes that growing stability in Iraq and Afghanistan is because of its cooperation. Iran hosts one million Afghanis as refugees. This has created a major law and order problem in the region; the menace of drug trafficking and arms proliferation are other related issues with Afghan refugees. These are Iran’s priority in dealing with the situation among its immediate neighbours.

Engaging Iran: Problems and prospects

  • Some participants in the Round Table were of the opinion that Iran has been neglected by India and that India lacks an independent and intelligent policy towards Iran. Iran is quite missing in India’s diplomatic maneuverings. There exists a huge “trust deficit” between the two countries. President Khatami’s 2003 visit to India as Chief Guest was the high point in India’s diplomatic relations with Iran. Today it is important to examine the fault lines of India’s policy towards Iran.
  • Other speakers were of the view that bilateral relations cannot be a one way traffic, with India supporting Iran all the time. Iran will also have to take into account India’s concerns and act accordingly. The question whether Iran has given even token support to India on the Kashmir issue against Pakistan was posed. It was pointed out that Iran has never supported India in OIC. It has always supported Pakistan. Thus, there is a need for reciprocity.
  • Iran views India’s lukewarm response in defence cooperation as caused by the Israeli factor. It was pointed out that these two issues could be treated separately.
  • Another issue that was deliberated upon was Iranian views on the Indian Prime Minister’s visit to Oman and Qatar, the signing of defence pacts as well as the general coming closer of India and GCC at Iran’s cost. Iran does not accept the view that its nuclear programme is threatening to Saudi Arabia and Qatar, and views increasing Indo-GCC relations as having a negative effect on Indo-Iranian relations.
  • The ambiguity of the power hierarchy in Iran’s political structure makes it difficult to judge which is the nodal agency when it comes to addressing various issues and mutually acceptable solutions to bilateral matters.
  • India does not have regular and stable source of information agencies in the Gulf countries including Iran. Therefore it has to mostly depend on third country’s news agencies. Sometime it takes help from London-based agencies to understand Iran. This creates a communication gap between the two countries.
  • It was reiterated that Iran’s resurgence cannot be taken lightly. Its rise and growth as a regional power is certain, and thus it is high time India develops a pragmatic, long term and balanced foreign policy towards Iran.
  • Iran is important for India in a number of fields such as energy, trade, transport corridor, containing Taliban in Afghanistan, as well gaining some leverage vis-à-vis the Shia population within India as well as where they are in sizeable number, including in Pakistan.

Recommendations

  • This is the right time for India to clearly spell out its bilateral issues and policies particularly on Afghanistan, transport corridor and gas pipeline. Iran is important particularly in dealing with the large Shia population within India, and with the Muslim world. India has some domestic leverage which it can use as inputs to improve and revitalize its relations with Iran. The presence of the second largest Shia population (25 million) in India can be a factor to take further this relationship.
  • There is need to explain what India’s national interests are and that India’s increasing relations with the West and particularly with the US is not at the cost of its relations with Iran. New Delhi needs to evolve a policy to engage Iran without antagonizing the US.
  • India-Iran relations should be articulated and viewed in a historical perspective. One cannot always speak the language of the market, energy, trade, corridor, etc., but should take into account relations on the civilizational plane. Both countries have very deep and longstanding relations right from Indus and Persian times. It was argued that the moment the Cold War ended India lost its sense of balance vis-à-vis Muslim countries.
  • The international and regional situations have changed and therefore it is desirable to change policies accordingly. One should not carry through the Cold War mentality but judge issues on the basis of expediency and national interest under the prevailing situation, keeping long term interests in view.
  • India can take the initiative and host a dialogue of regional powers including Iran, Israel, GCC, Pakistan, US, Afghanistan, and discuss and deliberate upon sensitive issues. It is high time for such a diplomatic overture.
  • It was argued that there is no conflict on the nuclear issue. India needs to downplay this issue and engage Iran rather than being hawkish. Overemphasis of the nuclear issue provides an opportunity to various factions within Iran to develop different policy perspective with regards to India.
  • Measures which could be helpful in mending as well as enhancing India-Iran relations are:
    • Reciprocal visits are needed at a high level and the frequency should be increased.
    • A clear message should go to the private sector about policy with respect to Iran. Iran should clearly spell out its foreign investment policy for Indian companies. It must understand that Indian companies do business based on purely economic considerations.
    • Ensure a well developed staff in the Indian embassy with knowledge of regional languages. This will serve as an advantage when it comes to dealing with empathy with Iran’s culture and ethos.
    • Progress on IPI pipeline should be made. Some concrete steps are needed in this direction.
    • India can take a cue from how Japan and Italy have managed and built close relations with Iran despite being US allies.
    • Create Indian information agencies in West Asian countries. This will enable India to formulate its foreign policy on the basis of regular information and news.

Prepared by Dr. Meena Singh Roy with inputs from Dr. Zakir Hussain and Dr. Mahtab Alam Rizvi.

Africa, Latin America, Caribbean & UN
Defence & Security Module for BSF (DIGs Course Series I) August 20, 2009 to August 26, 2009 Training Capsules
Revisiting Comprehensive Test Ban Treaty August 25, 2009 Arundhati Ghose, K. Santhanam, Satish Chandra, Bharat Karnad 1030 to 1330 hrs Workshop

Venue: India International Centre, Conference Room 1, Main Building, Max Mueller Marg, New Delhi.

PROGRAMME

Welcome : Shri. N.S. Sisodia, Director General, IDSA
     
Chair’s Opening remarks : Dr. M.R. Srinivasan
     
Speakers : Amb. Satish Chandra

Amb. Arundhati Ghose

Shri. K. Santhanam

Prof. Bharat Karnad
     
Q&A/Discussions    
     
Lunch    

PREVIOUS WORKSHOP IN THIS SERIES

Nuclear and Arms Control
Visit of UAE Military Delegation August 13, 2009 Round Table

On 13 August, 2009 a 10 member delegation from the UAE headed by Major General Mohammed Saeed Bin Maran Al Dhaheri, Commander Supply & Transport Arms, visited IDSA for an interaction.

In his opening remarks, the Director General of IDSA briefed the delegation about the IDSA and its activities. DG, IDSA spoke on the overall relationship between India and the UAE. He clarified India’s stand on the Iranian nuclear issue and said that India had voted against Iran at the IAEA based on India’s position on nuclear proliferation. He said that the menace of terrorism, drug trafficking, rise of LeT, Al-Qaida and the Taliban is posing a great challenge to regional security.

Prof. P. Stobdan gave a brief presentation on the regional security environment in West Asia as well as on linkages between India and the Gulf region. He talked about the security issues in Pakistan, Afghanistan and Iran and the challenges faced by regional countries. He said that current political developments in Iran could have implications for stability in the Middle East, South Asia and Afghanistan. He said that in South Asia Pakistan had traditionally mishandled terrorism leading to radicalization of societies in the region.

Deputy Director General, Dr. Thomas Mathew, emphasized the contribution of the huge Indian expatriate workers in the UAE and said that India has benefited from the remittances flowing from the Gulf region. He also stressed the need to improve defence cooperation between the two countries.

The delegation also raised issues like India’s relationship with Iran, India’s stand on the Iranian nuclear issue and India’ position on the UAE’s conflict with Iran over three islands in the Gulf - Abu Musa, Greater and Lesser Tumbs - which are occupied by Iran. The discussion also included issues like piracy, defence cooperation between the two countries and the need to develop people to people contacts.

The UAE delegation appreciated the research activities conducted at the IDSA. The head of the delegation proposed to work together with IDSA in terms of exchanging expertise and undertaking joint research work relating to regional security issues.

Report prepared by West Asia Cluster, IDSA.

Africa, Latin America, Caribbean & UN
Evaluating EU’s role in the Af-Pak Region August 07, 2009 Alok Rashmi Mukhopadhyay 1030 to 1300 hrs Fellows' Seminar

Chair: Shantanu Chowdhury
Discussants: Gulshan Sachdeva and Peter Garretson

The paper attempts to analyse the role of European Union in the Afghan-Pak region. Strategy in Af-Pak region has been widely debated since the U.S. President Barack Obama outlined a new strategy for Afghanistan and Pakistan on March 27, 2009. European Union is a significant player in Afghanistan and the major member countries of the EU have been engaged in various programs in Afghanistan relating to security, police training, democratic institution-building, counter-narcotics, judicial reform apart from making their combined military contribution to International Security Assistance Force (ISAF). However it is to be highlighted that the numbers do not actually reflect the combat-readiness, interoperability, stating power and the mandate dictated by national parliaments of the contributing member countries of the European Union.

Mukhopadhyay attempts to curve the role of EU in the Pak-Afghan region as a security actor. Initially the paper deals with the present European perception of the Pakistan-Afghanistan region and how it evolved since 2001. Instances from the major EU member countries e.g. Germany and the UK have been taken into account. According to the author, it is a widespread belief in Europe that the EU always plays a secondary role to the US in conflict zones and in particular the success of their forces in Afghanistan would solely depend on the success of the ISAF. The EU aspiration is however apparent when the ‘low-profile’ Union wants to come out from the shadow of the US and attempts to project itself as a ‘credible’ global actor. The author points out that there has been a silent surge of European forces in Afghanistan while the total number of European troops in November 2006 was approximately 17, 400, it reached almost 27, 400 in March 2009. As in July 2009 the number of European forces is approximately 29,100 which is almost 45 per cent of the 64,500-strong ISAF. On the eve of the Afghan presidential election on August 20th, it is likely that the additional European forces would also be provided to conduct the elections.

The author discusses the outcome of the recently held first EU-Pakistan summit on June 17, 2009 in Brussels. He emphasizes that by taking the decision to hold the summit with Pakistan, the EU has accepted the obvious that Pakistan is no more the solution as a frontline state against terror but on the contrary the growing threat emanating from there is severally threatening the European security. The author suggests that the summit should be seen as a collective recognition by the European states that Pakistan is crucial to tackle the quick phenomenon of Islamic radicalisation process in the EU as whole.

Mukhopadhyay critically analyses the role of European media in augmenting the general awareness but also exaggeration of threats linked with Pakistan. A recent British instance in this regard has been analysed where a Sunday Times (July 4, 2009) news report warned of an imminent overthrow of Pakistani state by British militants specifically the radical Islamist group, Hizb ut-Tahrir (HuT) by adopting means such as infiltrating the Pakistani Army as well as to persuade students in Pakistani institutes of higher education to establish a Caliphate based on stringent Sharia Laws. The author suggests that the British media should be more circumspect to publish such sensational reports which rather help the Radical Islamists of different hue to get more media coverage for which they always attempt hard.

In the subsequent section, Mukhopadhyay analyses the divergence of approach which is observable between the US and its European counterparts particularly the United Kingdom. The US approach is an archetypal pillar-based counter-terrorism concept where President Obama underlines that the American aim stands on three Ds, Disrupt, Dismantle and Defeat Al Qaeda in the region in order to ‘prevent’ their return. According to the author, it is apparent from the text where the US objective is to provide and preserve ‘international security, on the other hand the European objective is more to secure their homeland as it is apparent in European policy documents. As a matter of fact, following the US instance the UK also came out with its own policy document titled as “UK policy in Afghanistan and Pakistan: The way forward”. The author points out that divergence in approach may also be identified in a post-9/11 scenario where most of the European countries have honed their counter-terrorism skills, revamped their own security apparatus, put in place a stricter visa regime and finally enhanced pan-European and even international intelligence cooperation, rather than solely depending on combating Taliban forces in Afghanistan for which their forces are neither equipped nor ready.

Mukhopadhyay concludes his presentation by pointing out that initially the European forces were sent to Afghanistan mainly as a gesture of solidarity since NATO for the first time had invoked the Article 5 of collective self-defence. It should be noted that both the EU and NATO primarily worked on consensus and member countries were at liberty to undertake individual, bilateral or an exclusive group-based approach. However repeated reminders by the NATO leadership have not been able to increase the European force level required to have a decisive turn to stabilise Afghanistan in a post-Taliban scenario. The European analysts have been emphasising on a coherent EU approach, however still individual and bilateral approaches are continued as rules of the day. According to the author as the developments gets murkier in Afghanistan which is evident in insurgency reaching the Punjabi heartland of Pakistan, terrorist attacks claiming lives of European nationals as well as diplomats and security at European homeland is threatened from the Afghan-Pak region, it is high time to have a careful evaluation of European Union’s approach towards Af-Pak region.

Points raised during discussions

  • In fact Durand line is the real genesis of Af-Pak. Afghanistan is not prepared to renew it.
  • Because of 9/11, there has been complete paradigm shift in international relations.
  • Security contributions by European Union members are essential. Without it the US forces may be suffering fatigue factor.
  • Pakistan’s role has been very diabolical while dealing with the Taliban. Till 2001 they were openly supporting Taliban. After 9/11, they tactically changed their role. In a statement Special envoy for Afghanistan and Pakistan Richard Holbrooke said that Pakistan is concerned about eliminating Taliban in Pakistan but not in Afghanistan.
  • It should be understood that United States and NATO forces are fighting a war for us. Taliban is injurious to India.
  • It needs to be analysed what relevance Europeans have for India. Europeans are capable of shaping the forces in Afghanistan. The European number of troops have gone up from 17, 000 to 29,000.
  • Europeans are over represented in many institutions in Afghanistan.
  • It can be observed that in last two years, Europe is now focusing on Pakistan simultaneously with Afghanistan.
  • Discussing about ‘European Union’ is confusing. It is better to discuss ‘Europe’ and its role in the Af-Pak Region.
  • While analyzing the role of EU in the Af-Pak region, it should be analysed that what is the overall utility of this analysis for the Indian policy makers and also what can Indian policy makers do to shape EU’s actions.
  • It should also be analyzed in the paper that what are the population size, GDP and actual size of European forces and how much contributions these EU member countries have made to ISAF.
  • The paper should also discuss why is it important to have an extra- regional actor in the Af-Pak region.
  • European Union supports war but simultaneously they facilitate Islamic organizations as well.
  • The paper appears to be focusing more on Pakistan than Afghanistan.
  • The paper should also highlight how the Af-Pak region is a threat to European multiculturalism.
  • Europe has an important role to play in counter narcotics operations in Afghanistan.
  • Pan-European proposition is problematic in nature.
  • The author should mention the relevance and importance of this subject. For that purpose a backgrounder would be worth incorporating. The focus of this paper needs to be sharper.
  • To deal with the crisis in the Af-Pak region, regional approach would not be proper. Instead collective approach would be helpful.
  • There are roughly 10,000 to 15,000 thousand insurgents fighting in Afghanistan. A RAND study of all the insurgency in last 45 years around the world reveals that every insurgency takes on an average 14-15 years to die. But Afghanistan insurgency may take longer time, about 15-20 years, because of its topography and natural location.
  • In history insurgents have never negotiated. At this time it is not possible to have negotiated settlement because at present, insurgents are having upper hand. It may happen two-three years later but not now. Taliban is loosing the battle but not the war.
  • If European forces withdraw form the region, it will have direct implications for Afghanistan. It will have implications for India as well.
  • India can not intervene in Afghanistan because it will not be acceptable to Pakistan.
  • The main question to be examined is what can lead to strategic success in Afghanistan.
  • United States can not talk to Taliban without the help of India.
  • European counter terrorism structures are very recent. To resolve the Afghanistan problem, support of Pakistan in essential.
  • It is interesting to observe that post Xinxiang riots whether China will start rethinking about its role in Af-Pak region.
  • Iran has a major role to play in stabilizing Afghanistan.

Prepared by Sanjeev Kumar Shrivastav, Research Assistant at the Institute for Defence Studies and Analyses, New Delhi.

Nuclear and Arms Control Af-Pak strategy, European Union

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