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Workshop on Limitation of Liability in Defence Contract January 14, 2011 0930 to 1400 hrs Workshop

PROGRAMME

Session-I (09.30-11.00 AM): Limitation of Liability: View Point of the Industry

Speakers:

  • Mr Jeffrey Breland, Boeing
  • Rep of EADS
  • Ms Swati Sharma, Counsel, BAE Systems India (Services) Pvt. Ltd.
  • Rep of CII
  • Ms Alina Arora, Law Officer, Luthra & Luthra, New Delhi

Session-II (11.00-12.30 PM): Limitation of Liability: View Point of the Services/Users

Speakers:

  • Shri Ranjan Kumar Ghose, Joint Secretary & Acquisition Manager (Air), Ministry of Defence, Govt. of India
  • Shri Vishvajit Sahay, Finance Manager (Land System) & JS, Ministry of Defence, Govt. of India
  • Rear Admiral B.R. Taneja, Technical Manager (Maritime & Systems), Ministry of Defence, Govt. of India
  • Rep of DCAS
  • Mr Inder Kumar, Legal Advisor (Defence), Ministry of Defence, Govt. of India
  • Mr R Joga Rao Kasibhatla, Department of Legal Affairs, Ministry of Law and Justice, Govt. of India

Session-III (12.30-2.00 PM): Panel Discussion

Participants: Sh VK Misra, Former Secretary, Defence Finance, MoD, Shri Vivek Rae, DG (Acq), Ministry of Defence, Govt. of India, Dr Vivek Lall, Boeing, VCNS/DCAS, Rep of Ministry of Law & Justice Specialising in Liability

Lunch: 2.00 PM

Defence Economics & Industry
Managing India’s Borders: Lessons from the US Experience January 28, 2011 Pushpita Das Fellows' Seminar

Chairperson: Shri Naveen Verma, National Security Council
Discussants: Professor Chintamani Mahapatra and Shri K Srinivasan

The paper focuses on how United States manages its borders through the concept of “smart borders”, enhanced cross border cooperation with neighbours and utilisation of technological solutions and how far these measures are relevant to India’s approach to border management. Smart Border concept encompasses safe and secure flow of people and goods and improvement of transit infrastructure and cross border cooperation. According to Dr. Das, border management entails facilitating cross border flows of people and goods while concurrently preventing the entry of persons or goods which pose threat to home territories or population. In this context, the paper summarizes the Indian approach to border management and American practices to conclude that India’s “security centric” approach should be replaced by “smart border” principle for more fluid borders and increased trade efficiency.

The major point of discussion and suggestions to the author:

  • The paper has given a new perspective on how traditionally borders are managed in India and the challenges posed by the same.
  • Excellent comparison of border management in two largest democracies in the world but respective countries have qualitatively/quantitatively different border issues that has to be borne in mind, for example drug trafficking and large scale illegal migration is a menace to the US while cross border terrorism is an issue for India.
  • India’s festering border issues with its neighbours and hostile relations pose security challenge to India’s borders and hence India has to keep “security approach” unlike US that has amiable relations with Canada and Mexico (main countries in focus in the paper).
  • Political economy of US and South Asia are unique by themselves, hence the fundamental flaw would be to compare how two countries manage their borders.
  • In Indian Context, “Smart Border” does not seems to be an ideal concept as long as an unstable region prevails. Basic political dilemmas have to be addressed in the region for further improvement in relations between the countries that will entail better border management in the longer run.
  • Greater importance to land border management negates the importance of coastal security, specially post 26/11 threats that emanate from the coasts. Hence, a new turf to explore in India’s security ambit.
  • Role of individual states in border management needs to be incorporated/ evaluated for a robust border security
  • Overall, a security approach complementary with cooperative approach is in India’s interest, and not smart border approach.

Report prepared by Anwesha Ray Chaudhuri, Research Assistant, IDSA

Terrorism & Internal Security
Changing Dynamics of China’s Relationship with Nepal: The post-monarchy period January 21, 2011 Nihar R. Nayak 1030 to 1300 hrs Fellows' Seminar

Chairperson: Prof. V P Dutt
Discussants: Amb. K V Rajan and Amb. T C A Rangachari

South Asia
Delegation of Shanghai Academy of Social Sciences visits IDSA December 29, 2010 Other

A four-member delegation of Shanghai Academy of Social Sciences (SASS) led by Prof. Pan Shiwei, Secretary of the CPC committee and Chairman of Academic Committee of SASS, visited IDSA on 29 December, for an interaction with the scholars. Other members of the delegation included Mr. Li Yihai, Prof. Mei Junjie and Keija Yan. The meeting was chaired by Prof. V.P. Dutt, distinguished fellow at IDSA.

Welcoming the delegation, Dr. Gupta, Lal Bahadur Shastri Chair, and Deputy Director General, said that IDSA has a long tradition of interaction and dialogue with a number of Chinese think tanks, including SASS. He recalled his fruitful interaction with Chinese think tanks during the recent visit of an IDSA delegation to China. Responding to this sentiment, Prof. Pan Shiwei said that SASS is following the developments in India and in Sino-Indian relations very closely. He added that cooperation between the two countries is of paramount importance, not only for India and China, but also for the world at large. Responding to the question relating to China’s policy towards Jammu and Kashmir, the member(s) of the delegation said that Beijing has been consistent in its approach towards Jammu and Kashmir, and that China has officially recognized Sikkim as an integral part of India.

Participating in the interactive discussion, Dr. Gupta agreed with Prof. Pan Shiwei’s observation that there should be calmness, and that we should not be carried away by media hype. He, however, felt that China should show sensitivity to India’s concern relating to Jammu and Kashmir, and that India has no problems with Sino-Pakistan relations as Sino-Indian relations stands on their own. He further said that it is not the stapled visa, but the larger issue, which is a matter of concern to India. The meeting concluded with a very fruitful, and productive discussion.

East Asia
Public Finance, Deficit Reduction, and the American Military in an Era of Diminished Resources January 21, 2011 Peter Maher 1030 to 1300 hrs Fellows' Seminar

Chairperson: Brig (Retd) Gurmeet Kanwal
Discussants: Professor K P Vijay Lakshmi and Brig (Retd) Rahul Bhonsle

Nuclear and Arms Control
The Making of Foreign Policy in Bhutan January 28, 2011 Medha Bisht Fellows' Seminar

Chairperson: Ambassador I P Khosla
Discussants: Ambassador Dalip Mehta and Professor Mathew Joseph C

Dr. Medha Bisht’s paper focused on Bhutan’s Policy shift over a period of time. In the process of explaining this broad aspect, she tried to answer questions such as: who are the actors in Bhutan driving foreign policy choices? What are the factors that determine Bhutan’s foreign policy choices?

The speaker presented the paper in three broad sections. The first section assessed the basic determinants responsible for influencing or making foreign policy decisions in Bhutan. In this section, she amplified the role of domestic factors in the making of Bhutan’s foreign policy. She argues that while, geo-strategic location, national security and economic engagement have shaped Bhutan’s foreign policy preferences, the political institutions in Bhutan, particularly, Monarchy, National Assembly, Royal Advisory Council and Monastic Order are also important attributes shaping its foreign policy decision making. According to the speaker, among the four political institutions mentioned above, Monarchy and National Assembly emerged as important institutions in shaping foreign policy decisions.

In the second section, the speaker isolated security, culture and economy as the factors which have predominantly shaped foreign policy preferences of Bhutan. According to her, while security had played an important role in shaping Bhutan’s relations with China, cultural factors had played a significant role in determining Bhutan’s position on negotiating the issue of refugees with Nepal. Economic benefits, on the other hand, have played an important role in defining Bhutan’s interaction with India. The speaker however argued that these categories were not distinct in relation to the three countries mentioned above. The thrust of the analysis she argued was to highlight the significance of these three factors as the primary determinants in Bhutan’s foreign policy.

The third section identified the possibilities of continuity and change in Bhutan’s foreign policy post 2008. Despite Bhutan’s shift to constitutional monarchy, the King still holds an important place in deciding Bhutan’s external engagements. While mapping out the pattern of change and continuity in Bhutan’s foreign policy engagement in terms of the determinants, speaker argued that economic engagements would govern Bhutan’s future foreign policy choices and interactions with China in near future could increase. Regarding the role of political institutions in Bhutan, National Assembly, National Council, Gross National Happiness Commission, Druk and holding Investments, Royal Service Commission and Anti Corruption Commission would be potential future players.

External Discussants:

The external discussants complimented the presenter for a comprehensive and well researched paper. The first external discussant suggested that the paper would benefit if a background mentioning Bhutan’s opening up to the world through Young Husbands expedition was included. The same discussant also felt that the paper should include a discussion on Bhutan –Britain relationship, future of Indo-Bhutan relations in the context of China-Bhutan relations, Bhutan shifting from closed medieval society to a modern society, opening up of Bhutan to the globalised world, Bhutan’s relations with P5 and some of the important events such as: Nehru’s visit in 1958. According to the discussant, the paper gave too much importance on National Assembly, but during 3rd and 4th King National Assembly was basically a rubber stamp. The same view was also echoed by the second external discussant. According to the second external discussant, political culture required elaboration. He also suggested the speaker to re-look at her argument that economy determines Indo-Bhutan engagement.

Internal Discussants:

The first internal discussant pointed out that the three determinants isolated by the speaker, i.e. security, culture and economy could not be compartmentalized in real sense. Political culture, mentioned by the speaker was more about citizenship issue than of foreign policy. According to the first internal discussant Bhutan’s Trade relations with Assam needed to be substantiated. The discussant also suggested the presenter to address Bhutan’s reaction to the Chinese presence and recommendation for India. The second internal discussant suggested the speaker to elaborate Bhutan Nepal relations.

General discussion focused on the following issues:

  • India’s Development Assistance to Bhutan
  • Manifesto of the ruling and opposition parties on Bhutan’s policy towards China and India
  • Presence of religious puzzle in Bhutan
  • Indian Army’s OP Task in Bhutan
  • Attitude of local people of Bhutan towards India
  • Bhutanese Diaspora
  • Climate Change,
  • Binding factor that keeps Bhutan together

Chair’s Comments

According to the chair, the speaker had made an excellent effort to put the narratives into analytical framework. However, he felt that the title and contents of the paper did not match. He suggested the speaker to incorporate the comments by the discussants and substantiate them with the application of the Small State theory.

Report prepared by Gulbin Sultana, Research Assistant, IDSA.

South Asia
Negotiating with Maoists January 25, 2011 P. V. Ramana 1030 to 1300 hrs Fellows' Seminar

Moderator: Dr Arpita Anant
Discussants: Shri Prakash Singh and Shri J N Roy

Terrorism & Internal Security
China’s Military Diplomacy: Investigating PLA’s Participation in UN Peace Keeping Operations January 14, 2011 Prashant Kumar Singh 1030 to 1300 hrs Fellows' Seminar

Chairperson: Prof. V P Dutt
Discussants: Prof Madhu Bhalla and Prof Swaran Singh

In sharp contrast to its reticence till the 1990s, the past few years have witnessed a notable increase in the Chinese People’s Liberation Army’s (PLA) engagement with the international armies. At present, China has military contacts with more than 150 countries. It has set up military attaché offices in 112 countries; and 102 countries have opened military attaché offices in China. During the 11th Five-Year Plan, the PLA has dispatched, on average, more than 170 military delegations to foreign countries and hosted more than 200 military delegations per year. It is in this background, China’s peaceful military activism in the global arena has attracted considerable academic attention.

Dr Prashant Kumar Singh, in his presentation, tried to explore the issue further. At the outset, he made it clear that the paper was neither meant to derive any sensation from the term “military diplomacy” nor did it intend to produce any sensational research. Instead, Dr Singh attempted to demystify and simplify the term “military diplomacy”. He attempted to pick up and discuss with the audience, one of the many functions performed by the PLA.

Dr Singh tried to answer nine broad questions in the paper, including the rationale, objectives, and resources consulted, the meaning of military diplomacy and its relation with China’s foreign policy, instruments of China’s military diplomacy and the general trends in China’s participation in UN Peace Keeping (UNPK).

Dr Singh said that China’s actual footprint in UNPK in terms of troop as well as financial contribution is widely considered miniscule. In countering the argument, he pointed out that China’s participation in UNPK is not an isolated and ignorable feature. It is very much moving in sync with the larger agenda set by the government and its foreign ministry and serving China’s national interests in different ways.

It is also in the institutional interests of the PLA that it asks for stronger mandates in UNPK. In times to come, it may emerge as leader of the UN-commanded peacekeeping missions.

Points of discussion:

  1. China’s position on human rights and humanitarian intervention is in contrast with the ethos of UNPK. How is China addressing the contradiction?
  2. How is PLA achieving China’s foreign policy goals through UNPK?
  3. China’s is a unique case where three segment; the party, PLA and the State itself are trying to run their own sets of foreign policy. In that regard, how is PLA competing with other two segments in promoting its own agenda?
  4. How is the world community, especially the US and India responding to PLAs UNPK operations?

Report prepared by Rahul Mishra, Research Assistant, IDSA

East Asia
Sudan in Transition: Implications for India January 07, 2011 Ruchita Beri Fellows' Seminar

Chairperson: Ambassador Shashank
Discussants: Ambassador Rajeev Bhatia and Professor S N Malakar

Ms. Beri’s paper focuses on the upcoming referendum that brings forth the complexities of energy politics in Sudan. The referendum is important for both North and South Sudan. The deep historical and commercial ties between Sudan and India mean that the developments in Sudan pose India with numerous challenges. India’s strategy of engaging with Southern Sudan in recent years, however, may reduce any adverse impacts of events. Within Sudan itself, North Sudan mainly views the possible secession of the South as a disaster due to the extensive oil production in the South - around 90 percent of oil revenues in Sudan come from the southern region of the country. Ms. Beri’s paper aims to investigate the complexities of Sudan in this transition period and its implications for India.

Talks on post-referendum scenarios began in July 2010 between members of the National Congress Party and the Sudan People’s Liberation movement. The discussion agenda includes issues such as security, citizenship, economic and natural resources, international treaties and legal issues. A crucial issue confronting the government is citizenship owing to the unclear status of Southerners living permanently in Northern Sudan and of Northerners settled in South Sudan. There is also the issue of management of natural resources – Sudan’s discovered reserves are estimated at five million barrels with the majority of these being in the South. Although the Comprehensive Peace Agreement (CPA) between the North and South restored peace beginning in 2005, Sudan’s main oil producing region, Abyei, is situated on the North-South border (Abyei accounts for around 13 percent of the country’s total income from oil exports). This has exacerbated the situation to spill into a boundary dispute over Abyei and the presence of other oil fields in these frontier areas.

Sharing of oil revenue is another area of contention. The CPA mandated equal sharing of oil wealth generated from the oilfields located in the South; however, here have been doubts about transparency in allocations of generated revenues. The North is heavily dependent on oil revenues generated in the South for the developmental progress of the Northern region. Also, a large number of Northerners are employed in the Southern oil fields. The failure of both sides to reach an agreement would likely lead to these opportunities vanishing for the North. (Reports indicate that the North has been seeking alternate sources of energy, particularly hydroelectricity, to meet this challenge). On the other hand, the dilemma for the South is about access to oil infrastructure. Facilities such as pipelines, refineries and storage and export terminals are in the North. A split would mean disruption in the South’s continued usage of this infrastructure. Ms. Beri points out that in the short term, both the North and South will continue to be dependent on each other for the utilization of oil wealth. Apart from these, there is also the question of sharing of water resources in the Nile river basin.

There are a number of scenarios predicted for Sudan – complete separation into two independent states, two independent states with an open border, the confederalist option, and a unified Sudan.

Although India’s relations with Sudan date back to ancient times, India had established minimal contact with the South until recently. Ms. Beri observes that the Indian government has supported Sudan on many occasions – India’s Election Commission helped organize Sudan’s first general elections in the late 1950s; Indian engineers played a major role in setting up Sudan’s sugar industry and railways. Politically, there is mutual support – Sudan has supported India’s aspirations for a permanent seat on the United Nations Security Council; the Indian government agreed to assist Sudan in entering the World Trade Organisation (WTO); India was given observer status at the March 2006 Summit of the League of Arab States in Khartoum; India also extended it support for the sovereignty, unity ad territorial integrity of Sudan, and affirmed that Darfur is an internal crisis that should be resolved by the government of Sudan in consultation with the African Union; India has also sent peacekeepers to the UN Peacekeeping Mission in Sudan.

The referendum can also impact India’s substantial investments in Sudan’s energy sector, largely in the South. Sudan was the first African country that India sought equity assets with. As of January 2010, Sudan has sought fresh investments by India particularly in the offshore natural gas blocks; India on the other hand has offered its assistance in modernizing Sudan’s oil refineries in addition to providing training for its technicians. One of the biggest challenges for India would be the possibility of a new government in South Sudan undertaking policy changes in the energy sector and canceling standing contracts. The fate of India’s investments in Sudan depends on the outcome of the upcoming referendum in the South. Ms. Beri points out that it is most likely that the South will split and declare itself independent. But taking into account the extent of interdependence between the North and South, a resumption of hostilities and disruption of oil exports would only cut the cash lifeline that is indispensable to both governments. India’s strategy of engaging with the Government of Southern Sudan beyond oil, in the recent years, may reduce the adverse impacts of a split between the North and South. On India’s stance on the issue, the paper concludes that India should stand with the international community in assisting with a peaceful and stable transition in Sudan.

Discussion

Ambassador Bhatia stressed the importance for India to play a larger political role in this issue, in addition to having already established a good economic presence in Sudan. The possibility of Ms. Beri’s analysis being shared and discussed with the Indian Ministry of External Affairs (MEA) was also discussed. Professor Malakar laid out the possible impacts of this referendum including on the ethnic, religious and social compositions of Sudan. India has in common with Sudan the aspects of cultural divisions and a colonial legacy, and hence holds the hope that the referendum will be successful. Brig. Dahiya suggested that the paper would benefit from being divided into current and likely developments, the present state of India’s relations with Sudan, the present and likely state for Sudan, and the challenges and opportunities for India. He also observed that inter-Sudan dynamics need to be studied further. Another aspect to consider would be the question of which side the African Union and the Arab League would take on the issue; India might want to take a balanced position and not a very proactive approach so as not to act as an irritant to any side. Brig. Dahiya also pointed out that the possible separation of Sudan would have a great deal of impact on the Darfur issue. Ms. Meena Singh Roy noted that the paper can go further than foreseeing a split, and lay out options for possible policies that the Indian government can adopt on energy security. She also suggested that the role of non-state actors in a post-referendum Sudan be explored.

Ambassador Shashank concluded the session by emphasizing that the internal dimension of Sudan (with nine neighboring countries that landlock the country, each holding its own views on the referendum) has to be brought into the paper, even though the focus is on the referendum itself and its impact on India. He also suggested that IDSA can follow up on this presentation with a smaller meeting with members working on this issue in the Indian government.

Report by prepared by Princy Marin George, Research Assistant, IDSA.

Africa, Latin America, Caribbean & UN
International Procedures and Systems of Export Controls of Materials, Equipments and Technology related to Biological Weapons January 07, 2011 Monalisa Joshi Fellows' Seminar

Chairperson: Shri P R Chari
Discussants: Dr B M Gandhi and Dr Moushumi Basu

The paper describes the existing procedures and systems of international export controls of materials, equipments and technology related to biological weapons. The author states that Export controls “are tools to ensure that trade flows consistently with treaty obligations embodied in the relevant control regimes, which is to stay away from states with weapons programs and toward those with commercial, peaceful interests”. Exports include agents, equipments and expertise and intangible transfer of knowledge. The major conclusions of the author were that export control of materials and technology related to biological weapons, in place of being an appropriate response to the advances in biological sciences, has been a function of security perceptions of states. Secondly, policy decision regarding export controls must take inputs from the relevant stakeholders; most importantly the biological scientific enterprise and finally export controls remain the most essential element in an overall strategy to limit the spread of biological weapons.

The major points of discussions and suggestions to the author:

  • Study the impact of these treaties on other countries,
  • Introduce the other systems and treaties in the introduction,
  • Discuss the export controls in India with other developed countries and compare them,
  • Further discuss dual use of Biological Weapons and their use by state as well as non-state actors,
  • States are conscious about their commercial interests,
  • Verification is the major problem area,
  • Biological items are inherently dual use in nature and thus there is a need for a more effective control mechanism,
  • Need to add some discussion on UNSC Resolution 1540,
  • Export controls affect development of R&D in Developing countries,
  • Globalization will lead to loosening of state controls.

Report prepared by Gunjan Singh, Research Assistant, IDSA

North America & Strategic Technologies

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