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    India and the Crisis in Nepal: The Madhesi Option Alok Bansal November 19, 2005

    Nepal has been in turmoil ever since the king sacked the duly elected Prime Minister Sher Bahadur Deuba and took over the direct control of government on February 1, 2005. Since then Nepal has been engulfed by relentless violence as conflict between Royal Nepalese Army, which has always been the king’s army as opposed to a national army, and the Maoist rebels has intensified and resulted in a large number of deaths and destruction. Frequent violations of human rights by the two sides have been reported.

    Nepal has been in turmoil ever since the king sacked the duly elected Prime Minister Sher Bahadur Deuba and took over the direct control of government on February 1, 2005. Since then Nepal has been engulfed by relentless violence as conflict between Royal Nepalese Army, which has always been the king’s army as opposed to a national army, and the Maoist rebels has intensified and resulted in a large number of deaths and destruction. Frequent violations of human rights by the two sides have been reported. The escalating violence in Nepal has definitely created anxiety in India where many perceive that rising Maoists will not only provide moral but also material support to the radical left wing insurgency in India. These Cassandras see a Red Corridor emerging across the length of India all the way from Nepal to Tamil Nadu. Some feel India needs to fence its borders with Nepal, while others contend that under the circumstances India has no other option but to support the undemocratic and autocratic actions of King Gyanendra. Fencing, at a time when everyone is talking about a South Asian Economic Union, will only be a retrograde step and will drive a wedge between the Indian and Nepali populace which have long standing historical cultural and linguistic ties. Similarly, supporting the king would amount to condoning his undemocratic and reprehensible act. He has never hidden his anti-India feelings, and had also tried to use the China card to counter India in the immediate aftermath of the dismissal of the democratic dispensation in Nepal, as India along with other democratic nations was quick to criticise the King’s action. The Government of India has unambiguously stated that it would like to see the democratic setup restored in Nepal and blindly supporting the King at this juncture would not only result in ceding the moral high ground but also in losing the popular support in Nepal. Moreover, such an approach will definitely bring the Maoist insurgency across the open borders into India. Not only do we have an open border but also over seven million Nepalis are believed to be residing in India. We also have over 40,000 Nepalis serving in the Indian Armed Forces and have approximately 120,000 Indian exservicemen living in Nepal, and the disturbances in Nepal will definitely affect them.

    From India’s point of view the best option would be the return of the democratic forces to the centre stage but the mainstream political forces as represented by the Nepali Congress and Nepal Communist Party (UML) have been rendered irrelevant by the King’s actions and are unlikely to command the people’s support. Popular support appears to have been polarised between the Maoists and the Royalists, though there is a silver lining. There is a large section of people who have hitherto been denied their due political rights and have still not fallen prey to the Maoist propaganda — the Hindi speaking Nepalis inhabiting the Terai Region of Nepal, who number approximately ten million.

    To be honest, the democracy that existed in Nepal prior to the sacking of Prime Minister Deuba was highly flawed. Through gerrymandering, it gave disproportionately high representation to certain regions of the state while denying the people living in the Terai Region their rightful share in governance. As a result the governments that were constituted did not adequately represent the people inhabiting the Terai Region, derogatorily referred to as ‘Madheshis’. They are believed to constitute more than fifty per cent of the population of Nepal. If true representative elections were to be held in Nepal, these Madheshis would surely hold the levers of power. To deny them power, a large number of hill people have been systematically settled in this region and electoral constituencies have been drawn without any sense of geography, cultural affinity and uniformity. Whereas the hill constituencies with hardly six to eight thousand voters send one representative to the Parliament, almost seventy to eighty thousand voters elect one representative in the Terai region. On top of this some four million Madheshis have been denied citizenship certificates and are being termed as Indians.

    Present day Nepal is divided into 75 districts administratively. Out of these 55 districts are hilly and snow clad and despite being larger in size, are sparsely populated. The northern border of many of these districts touches the hills of Tibet. The 20 Southern districts have common borders with West Bengal, Bihar, Uttar Pradesh and Uttaranchal in India. The mother tongue of the sons of the soil in these 20 districts is Maithili, Bhojpuri, Avdhi, and other dialects of Hindi, but they interact with each other in Hindi and have Hindi as their common language of communication. These people not only speak Hindi but also are also culturally and ethnically closest to India. They physically resemble Indians and have relatives across the border. Unlike the elite inhabiting the Kathmandu Valley, who despite having migrated from India, like to denigrate things associated with India to project their separate identity, these Madheshi are proud of their language, customs and traditions and are keen to maintain close links with India. In order to prevent Madheshis from attaining their true potential, Hindi, which along with Nepali had been accorded the status of the official language in 1959, was abolished as a medium of instruction during the autocratic ‘partyless’ panchayat regime in 1965. After this the use of Hindi was banned in the Nepali parliament as well. Since 1990, some of the parliamentary representatives elected from this region have insisted on their right to speak in Hindi in parliament. Though after a lot of reluctance they have been permitted to speak in Hindi, it has not yet been recognised as the official language and as a result no record is maintained of statements made in Hindi in parliament.

    In addition, during the 1970’s, when the East West Highway was constructed, a number of labourers from hill districts were settled in Terai region and many of these are included in census as well as in the electoral roles in more than one place i.e. their original place of residence as well as their newly acquired place of residence in the Terai. Some own residences in Kathmandu Valley as well and are counted thrice in census. As a result the population of the hill people tends to be inflated.

    Nepal is culturally, ethnically and linguistically close to India and shares a special relationship with India. Most of the population of the Hindu Kingdom is friendly towards India but of late certain elements from the Kathmandu elite have been indulging in anti India propaganda, which has even resulted in anti India riots in the past. Peace and tranquillity in Nepal is in India’s interest. The ideal solution to Nepal’s problems would be the establishment of a truly representative parliamentary democracy with the King as purely a figurehead. For this the constituencies need to be redrawn based on population. The governments thus constituted would have fair representation of Madheshis who have relatively been less influenced by the Maoists. This government will not only be favourably disposed towards India but will also meet the aspirations of a large section of population and will be able to check the influence of the Maoists. In order to stabilise democracy in Nepal; it is also essential to transform the Royal Nepalese Army as a genuine national army with representation from each section of the population and must be made responsible to the people, parliament and the prime minister.

    India, Maoist, Nepal South Asia IDSA COMMENT
    Resumption of the National Convention in Myanmar Udai Bhanu Singh December 16, 2005

    On December 5, 2005, the National Convention reconvened to resume the process of drafting a new Constitution. Without doubt the process of framing a new Constitution for Myanmar has been a long drawn out one. The National Convention, with over 1,000 delegates from various national races and groups, and comparable to a constituent assembly, first began its task in 1993. It last held its meetings between February 17 and March 31, 2005.

    On December 5, 2005, the National Convention reconvened to resume the process of drafting a new Constitution. Without doubt the process of framing a new Constitution for Myanmar has been a long drawn out one. The National Convention, with over 1,000 delegates from various national races and groups, and comparable to a constituent assembly, first began its task in 1993. It last held its meetings between February 17 and March 31, 2005.

    The National Convention, which the military junta reconvened, faces opposition - both domestic and international. At the international level, the opposition was in the form of the Tutu-Havel Report and in the American proposal to the UN Security Council to discuss the problem of political transition in Myanmar. The latter proposal was accepted by the UN Security Council members who agreed to discuss the problem and have the UN Secretary General Kofi Annan brief them. This brings Myanmar once again on to the centre stage.

    At the domestic level, there was opposition from ethnic groups when some of its leaders were put under arrest. Eleven political parties issued a statement expressing distrust in the National Convention and sought the release of Aung San Suu Kyi. They reiterated their aspiration or:

    • The establishment of a federal union.
    • Equality among various ethnic groups.
    • The right to self-determination of all ethnic groups.

    Second was the public reaction when the SPDC undertook the relocation of its capital 400 kms north of Yangon to Pyinmana on November 6, almost exactly one month prior to the reconvening of the National Convention. It appears that the government's intention behind this move was to strengthen the military's hold. Meanwhile, the SPDC has declared that the government sponsored social organization, the Union Solidarity and Development Association (USDA) set up in 1993, may soon overtly transform itself into a political party. It claims a membership of 22 million (whereas Myanmar's total population itself is only a little over 50 million). Thus it would be logical to expect this group, modelled on Indonesia's Golkar party, to be a serious contender in any elections in the future.

    The National Convention had held its deliberations between May and July 2004 after a long gap since its suspension in March 1996. Its initial meetings were convened between 1993 and 1996. The National League for Democracy, whose leader Aung San Suu Kyi's house arrest was extended on November 27, continues to boycott the Convention.

    After the National Convention adjourned in July 2004, differences relating to a seven-point proposal presented by the 13 cease-fire groups participating in the Convention on June 9, 2004, surfaced. The proposal had suggested greater power to the states, including control over foreign policy for states sharing international boundaries with other countries, and the right to have separate armed forces. The National Convention Convening Commission rejected these suggestions, as they were not found to be in conformity with the six National Convention objectives and the 104 basic principles. A modus vivendi nonetheless appears to have been worked out under which the authorities agreed to put the proposal on record and the cease-fire groups agreed not to read the proposal at the plenary meeting.

    It may be recalled that Myanmar has had two Constitutions: one promulgated in 1947 and the other in 1974. The Constitution of the "Union of Burma" formulated by the Constituent Assembly in 1947 delineated a quasi-federal union with a centralized Union Government and constituent (ethnic based) States supervised by State Councils. Some States (Shan and Kayah) enjoyed the right to secede after ten years. When General Ne Win captured power in 1962, he demolished the parliamentary democratic structure, suspended the Constitution and installed in its place the Revolutionary Council. The 1974 Constitution, which he put in place, stipulated a unitary State (vide Article 11). Importantly, while Article 22 guarantees the basic rights of all citizens before the law, Article 153b takes away this right by stating that the exercise of such rights must not be "to the detriment of national solidarity and the socialist social order." Needless to add, these provisions are contrary to the provisions of Article 19 of the Universal Declaration of Human Rights, which provides for the right of freedom of opinion and expression. Following the 1988 uprising, the military reasserted itself, the Constitution was abrogated and the State Law and Order Restoration Council (SLORC) was established [subsequently replaced in 1997 by the State Peace and Development Council (SPDC)].

    The latest attempt to frame a new Constitution dates back to 1993 when the National Convention was first convened by SLORC. The National Convention's composition ensured that the military's voice would dominate its deliberations and the Constitution that would finally emerge would consequently ensure a significant place for it in the governance of the country. The NLD participated in the National Convention initially but walked out of it in December 1995. It did not wish to fritter away the legitimacy it had secured in 1990 by participating in a National Convention in which it was only a small constituent. The SLORC had annulled these election results - its contention being that these elections were meant to select representatives for a constitution-drafting body rather than a national assembly. Discussions in the National Convention led to specific chapter headings for the Constitution and the basic principles for each of the chapters. These principles were then approved by the National Convention Convening Commission. Now, based on this consensus, the elected representatives have to draft a new Constitution (with assistance and suggestions from the SPDC). The draft would then be put to a national referendum. In the meantime sovereign power would reside with the SPDC.

    The SPDC is under renewed pressure from the West and ASEAN. It will have to convince the world community about the seriousness with which it is implementing political reforms. It appears intent on going ahead with the seven-point road to democracy. The systematic manner in which the SPDC is proceeding with the National Convention would indicate that it has a set plan in mind. Is it willing to make fundamental changes to that plan to accommodate international pressures for the release of Aung San Suu Kyi? Would the international community and the neighbours especially be prepared to accept the consequences of any disturbance that may follow? Is the neighbourhood ready to accept an influx of refugees if a prolonged civil war ensues? Are there credible and capable institutions within the country which could ensure stability in a post-conflict Myanmar? Answers to these questions would indicate the likely manner in which the political transition might unfold. Be that as it may, the long years of rule by the military has drained other institutions within the country of their strength. To ensure a smooth process of regime transition, a step-by-step approach to democracy, rather than an externally imposed solution, would be a preferred alternative.

    Myanmar South East Asia and Oceania IDSA COMMENT
    34th Anniversary of Bangladesh Liberation - Cause for Concern C Uday Bhaskar December 14, 2005

    The 34th anniversary of the liberation of Dhaka and the creation of Bangladesh on December 16 is an occasion for concern and deep introspection about the nature of the internal turbulence in that country and the related implications for India.

    It may be recalled that prior to December 16, 1971, what is now known as Bangladesh was East Pakistan and for almost 24 years from August 1947, the military leadership of Pakistan treated the eastern part of the country as a poor relative.

    The 34th anniversary of the liberation of Dhaka and the creation of Bangladesh on December 16 is an occasion for concern and deep introspection about the nature of the internal turbulence in that country and the related implications for India.

    It may be recalled that prior to December 16, 1971, what is now known as Bangladesh was East Pakistan and for almost 24 years from August 1947, the military leadership of Pakistan treated the eastern part of the country as a poor relative.

    Years of neglect and exploitation peaked in 1970 when the late Sheikh Mujibur Rehman emerged as a credible political alternative to the West Pakistan political elite but the then Pakistan Foreign Minister Zulfiqar Ali Bhutto stoked the flames of sectarian identity pitting the Bengali Pakistani against his peers in West Pakistan.

    Under normal circumstances, Sheikh Mujib, who had won the national elections, ought to have been nominated as the Prime Minister of Pakistan but the Western part of the country was determined not to let power slip from its fingers and thus began a gory cycle of repression and killing of the citizens of East Pakistan by their own military. Local resistance to such oppression and political intimidation grew under Mujib and the Mukti Bahini and while it was potent, it could not prevent the genocide that followed.

    By the time of the liberation of Dhaka in December 1971, almost three million citizens of East Pakistan were victims of mass killing and rape. The global community, led by the US, alas, chose to be silent spectators and this will remain one of the more shameful chapters of the Cold War decades.

    India was drawn into the developments and had to deal with a challenge of 10 million refugees from East Pakistan seeking shelter in the country. It was a daunting task by any stretch of imagination. And with no help from the global community, India was able to provide succour and moral support that later led to Delhi being drawn into the war that followed.

    The 1971 Indo-Pak war finally led to the surrender ceremony in Dhaka where the Pakistani military leadership accepted defeat, which resulted in the birth of Bangladesh. The political geography of the sub-continent was re-drawn after August 1947 and it was irrevocably established that religion alone could not be the basis for national identity and that in this case, ethnicity, language and a deeper socio-cultural preference had to be acknowledged. Pakistan was dismembered in two and its military had the dubious distinction of the blood of three million of its own citizenry on its hands.

    India may have scored an emphatic military victory in late 1971 but the political gains that should have normally accrued seem to be more elusive now 34 years after the birth of Bangladesh. Friday, December 16, will be suitably commemorated in India as the first Vijay Diwas (the second was Kargil in the summer of 1999) and hopefully the Unknown Soldier who symbolises all those Indian 'faujis' who laid down their lives for country and flag will be remembered. This is also an opportune moment to take stock of the trajectory that the new nation- Bangladesh - has taken in the last four decades.

    Today, Bangladesh stands at a crucial fork. It has a population of almost 140 million and in the last two decades, an assertive and militant constituency in the country has sought to define itself more as an Islamic state with the liberal Bengali identity being relegated to the background. Internecine political rivalry has seen the military and the mullah being co-opted for short-term opportunistic gains and this trend has been further exacerbated by the prevailing post 9/11 international undercurrent which unfortunately pits Islam against the US-led West.

    With its large population base and impoverished socio-economic profile, Bangladesh has become a safe haven for nurturing religious extremism and jihad by groups whose origins lie in Pakistan-Afghanistan and parts of West Asia. The ambivalent attitude of the ruling party-the BNP led by Begum Khalida Zia – appears to be emboldening the local terrorist groups.

    Consequently, the country has been subjected to a series of terrorist-related events this year, the most dramatic being the 434 simultaneous bomb blasts across the entire country on August 17. The months that followed witnessed concerted attempts to attack the judiciary and the symbols of state, such as police stations and courts, and the most recent was the suicide attack on December 8 in two towns that resulted in the death of six people with almost 50 injured including policemen. The banned Jamatul Mujahedin Bangladesh (JMB) has claimed responsibility and the group has also distributed literature demanding that the government introduce the Islamic code and has warned women not to be seen without veils.

    In the past, right wing groups have threatened to convert Bangladesh with its liberal, tolerant ethos into a Taliban clone and this has led to considerable internal dissonance. The socio-cultural ethos of Bengal which predates its modern political history beginning with the early 20th century is now being challenged and much of the future course of events will depend on the degree to which the major political parties are able to join hands in strengthening the liberal spectrum in Bangladesh civil society.

    The fork that Bangladesh is poised at and the direction it will take will have significant implications for the internal stability of its own society and for regional stability as well. Currently it has a GDP of US $ 57 billion and a growth rate of 5.5 per cent. It has shown encouraging signs by way of increasing its share of services and manufactured goods towards GDP growth while agriculture has reduced.

    Its work force has shown commendable empathy for trade in areas like textiles and IT and, most importantly, Bangladesh has visibly demonstrated that it can be a tolerant Islamic society in the main. The country's development indicators including family planning and female literacy are impressive by South Asian standards and its NGO sector is robust-though it is ranked among the most corrupt states by way of the governance index.

    In short, despite certain constraints, the country is well positioned to consolidate its advantages against the backdrop of globalisation and its resources such as natural gas could be harnessed in a positive manner. But none of this will fructify if the polity is internally fractured over religion and 'adversary' and what constitutes the abiding national interest. The experience of Pakistan and its own tragic trajectory where the military and the mullahs entered into an unholy alliance to stoke a distorted version of Islam and the interpretation of 'jihad' are case in point.

    It is obvious that a stable, prosperous and moderate Bangladesh would be in India's long-term interest. The anxiety about illegal immigration into India is real but it can only be meaningfully addressed when the internal situation in that country is conducive to the retention of its people. As the 34th anniversary of the Liberation War approaches, both state and civil society in India and Bangladesh would be well advised to ponder over these complex linkages and evolve an appropriate long term strategy that would advance their respective national interest in a complementary and consensual manner.

    Bangladesh, Terrorism South Asia IDSA COMMENT
    India’s Balancing Role in the Central Asian Power Game P. Stobdan December 14, 2005

    In 2001, Uzbekistan opted to become the linchpin of US policy goals in Central Asia. It was then argued that Washington would guarantee the nurturing of geo-political pluralism in the region. This was viewed against the backdrop of the historical ascendancy of China and the imperial decline of Russia. Much has happened since then. Today the US is facing a deadline to quit its airbase in Karshi-Khanabad (K-2), set up in the immediate aftermath of 9/11, because of Tashkent’s suspicion that Washington had plotted the revolt in Andijan on May 13, which led to a bloody massacre.

    In 2001, Uzbekistan opted to become the linchpin of US policy goals in Central Asia. It was then argued that Washington would guarantee the nurturing of geo-political pluralism in the region. This was viewed against the backdrop of the historical ascendancy of China and the imperial decline of Russia. Much has happened since then. Today the US is facing a deadline to quit its airbase in Karshi-Khanabad (K-2), set up in the immediate aftermath of 9/11, because of Tashkent’s suspicion that Washington had plotted the revolt in Andijan on May 13, which led to a bloody massacre. Following protracted information warfare, the US helped airlift 439 Uzbek refugees from Kyrgyzstan to Romania on 29 July in the garb of a UN operation. Hours later, an infuriated Karimov gave the US 180 days to quit. Karimov finally discovered America’s opportunistic aspect and feared that a plot was aimed at regime change a la Georgia, Ukraine, and Kyrgyzstan.

    In Central Asia, things are likely to get worse before they get better. In a recent conference at Tashkent, Russian strategic pundits displayed utmost self-confidence in predicting a triumphant Russian re-entry into the region. The Andijan crisis may have triggered the current Uzbek-US rift, but political pressure from Moscow has probably played a part in exacerbating it further. Moscow, it seems, has taken full advantage of US entanglement in Iraq to re-claim Central Asia within its sphere of influence. Signs of an Uzbek rapprochement with Russia were visible from last year when Karimov favoured Russia’s Gazprom and LUKoil rather than US firms for long-term investments in Uzbekistan’s gas fields. Gossip doing the rounds is that Karimov’s daughter, Gulnara, who is facing an arrest warrant for contempt of court over a divorce case, managed to cut a major business deal with a Russian oligarch. This was a vital factor for the change in Uzbek foreign policy orientation.

    In the current balance of advantage, Islam Karimov has hopped off the fence to embrace Russia and is using the China-driven SCO to contain American presence in the region. The Tashkent conference was sponsored by the Moscow based think tank Fund Politika led by Vyacheslav Nikonov, who inter alia was in Tashkent in June to spin-doctor the Uzbek counterattack against Western media.

    The Uzbeks appear to have run out of options in their initial approach of playing a ‘multi-strategic’ game, which they thought would serve several objectives ranging from curbing terrorism, WMD, fundamentalism and drug trafficking. They perceive the US as not reciprocating their support for the war against terror, and instead, see it playing the old game. Tashkent’s accusation that a joint US, NATO, and EU resolution seeking investigation into the Andijan killings was prepared prior to the unrest, cannot be verified. By giving 180 days deadline for the US to leave, Tashkent seems to have left no room for a diplomatic settlement of the imbroglio. The US says it is prepared to vacate K-2. Some Uzbeks probably still feel that moderation is required if there is to be any hope of bridging the rift.

    The turning point for Washington was the July 5 SCO summit in Astana, when Central Asian states, guided by China and Russia, set a deadline for ending US military presence in the region. The Chinese perceive the US motivation for seeking regime change in Central Asia as a stepping-stone for pursuing its policy goals in Xinjiang, where a movement for independent Uighuristan is gaining momentum. Uzbekistan might have given the US six months to leave, but Kyrgyzstan and Tajikistan, following Rumsfeld’s visit on July 25, continue to favour the US presence until stability returns to Afghanistan. Bishkek is seeking amendments in the air base agreement to allow for more payments by US. Perhaps, more alarming to Washington was Peace Mission 2005 – the first ever Sino-Russian military manoeuvres in August, which made Rumsfeld rush to East Asia to ascertain the seriousness of the situation firsthand.

    Unable to match Russian and Chinese localized strengths, the US is relying on its strategy of promoting democracy and human rights to bring about democratic change in Central Asia. Assistant Secretary Daniel Fried and Secretary of State Condoleezza Rice toured the region last month to boost the morale of opposition and democratic forces and did not hide their support for pro-democracy and civil society groups. Last month, Congressman Christopher Smith (Republican) announced legislation to halt both military and humanitarian aid to Central Asian governments that fail to democratise or respect human rights.

    Meanwhile, rumours about the US seeking alternative bases elsewhere and a new air base in Turkmenistan have been immediately addressed by Moscow. Russian Foreign Minister Sergei Lavrov dashed to Ashghabat on October 21, where he was assured by Turkmanbashi that such a move was not on the cards. This fear arose when Turkmenistan recently renounced its membership of the CIS.

    The overwhelming impression one is left with is that Andijan has led to paranoia among Uzbeks. They admit committing certain mistakes but are willing to seek support and ideas to overcome the tragedy. The Taliban’s resurgence, neighbours armed with nuclear weapons and the infiltration of terrorists belonging to Islamic Movement of Uzbekistan, Hizb-ut-Tahrir and Akramiya trained in Pakistan, remain Uzbekistan’s real concerns. Tashkent perceives contrasting policies being pursued by Turkmenistan and Kyrgyzstan; while the former is trying to distance itself from the region, the latter has become a member of the WTO and is actively engaged in opening itself up to the world. In Tashkent’s view, these contrasting policies create more problems rather than addressing issues concerning regional integration.

    Moscow sees Central Asia as its natural domain and as such cautions the US against over-stretching itself. Russians fear US involvement might end up orienting Central Asia towards the Middle Eastern political culture and envisage the Iraq situation sparking up sectarian conflict across the region from Pakistan to Uzbekistan. Russian thinkers prefer the region orienting itself to the North East Asian dynamic as part of its second phase integration programme for Central Asia. Moreover, Russians pin much hope on the time-tested long history of a harmonious relationship between Central Asian Islam and Orthodox Christianity. The fact that for over a hundred years, Muslims of Central Asia were closer to Russia than even many Russians living in Russia brings optimism for the new Russian plan to be successful. However, for Uzbeks, reintegration with Russia could be possible only if Moscow realizes and overcomes past Soviet mistakes in dealing with the region. A Russia-centric economic plan for Central Asia is certainly not something the Uzbeks want. Uzbek preconditions are many including their desire to develop transportation links to the Indian Ocean and also Russia’s ability to resolve difficult Uzbek-Kazakh relations.

    The key question remains whether Moscow, before going ahead, would trust Karimov since he proved quite deceitful in the past. Karimov severed all ties with Russia, opted out of the Collective Security Treaty and played on anti-Russian rhetoric that led to over 2 million ethnic Russians being forced to leave Uzbekistan. What kind of prize would Tashkent be willing to pay for Russian and Chinese support? The Russian Foreign Minister was in Tashkent on 21 October to chart a future roadmap. Moscow would prefer to first let US forces leave K-2 before talking about Tashkent’s re-entry into CSTO. It is only then that Moscow will seek to install in Tashkent a leader of its choice.

    For the time being, both the US and Uzbekistan are hoping to gain something by demonising the Andijan event. It is quite possible that the adept Karimov finds it necessary to balance off big-country interests at this point of time. I carried home the impression that Uzbeks themselves are somewhat unsure about the implications of fully going along with Russia once again. Prominent Uzbek experts like Farkhad Tolipov, who criticised Karimov’s miscalculation in denouncing the US, seemed to have been purged, as he was conspicuously absent in the conference.

    There appears to be a near-unanimity about India’s potential role of playing the role of a balancer in the regional power game in Central Asia. Analysts (within and outside the region) wonder about India’s reluctance to play the great game on the Central Asian chessboard, considering the undeniable geo-political significance of the region with its huge energy resources. India enjoys a ready psychological acceptance in the region, as compared to the utter distrust felt towards China and Pakistan. Most outside experts noted India’s potential ability to contribute to the stability of Central Asia, in contrast to what it is doing now. It must be underlined that in Central Asia the Soviet legacy of thinking and operating through a structured framework continues to dominate people’s mindset. India, as an emerging power, ought to be interested in defining its own geopolitical goal in Central Asia, instead of moving in a piecemeal ‘bilateral’ fashion. India’s bidding for PetroKazakhstan Company is being seen as symptomatic of its inclination to play the Central Asian game.

    In this reconfiguration and regional power game, which is as yet, at a nascent stage, a point that worries everyone, including the US, Russia and Central Asians themselves, is the new factor of China’s growing influence. China is clearly seeking interests beyond Central Asia.

    Shanghai Cooperation Organization (SCO), Russia, Uzbekistan, United States of America (USA), China Europe and Eurasia IDSA COMMENT
    Sharon’s Disengagement Tanya Mohan December 14, 2005

    The resignation of Prime Minister Ariel Sharon from the ruling Likud party in Israel has set off reverberations not only within Israel but at the regional level as well. Many Israelis and Palestinians, both politicians and scholars, believe that Sharon’s decision to leave the Likud has brought about a political earthquake that could realign not just the political configuration within Israel but also have a significant effect on the peace process.

    The resignation of Prime Minister Ariel Sharon from the ruling Likud party in Israel has set off reverberations not only within Israel but at the regional level as well. Many Israelis and Palestinians, both politicians and scholars, believe that Sharon’s decision to leave the Likud has brought about a political earthquake that could realign not just the political configuration within Israel but also have a significant effect on the peace process. His decision to leave the party ensued following intense opposition from fellow Likud members over the unilateral disengagement plan, which he had originally conceived. The plan witnessed the evacuation of over 8,000 Israelis from 21 settlements in the Gaza Strip and hundreds more from four settlements in North West Bank in mid-August, leaving the Gaza Strip under the limited authority of the Palestinians for the first time since 1948. In addition, the decision of the new Labour leader Amir Peretz to withdraw his party from the National Unity government also acted as a catalyst, thus hastening the next parliamentary election to March 2006.

    The domestic political turbulence in Israel, coupled with suicide bombings, violence, and pandemonium within the Palestinian political arena, has left the peace process, or what is left of it, in shambles. The result of the next Parliamentary elections should, however, provide an indication as to the contours of any future peace deal between the Israelis and Palestinians. Thus, Sharon’s political manoeuvring calls for a deeper understanding of Israeli politics, leaders and trends as well as a relook at some of his past actions. He was responsible for the establishment of the settlements, was a co-founder of the right-wing Likud party, was the mastermind behind Lebanon’s invasion, and was also held indirectly responsible for Christian militiamen massacring Palestinians in two refugee camps. However, by tempering his extremist policies in the past few years, he has tried to cater to national as well as international interests, thus validating the contention that the reasons for disengagement go beyond merely security concerns. Sharon’s domestic compulsions include demographic concerns about the emergence of an Arab majority within Israel, which would undermine the very essence of the Jewish state. In addition to this was the high cost of sustaining the settlers and maintaining the military presence in Gaza.

    As expected by Sharon and his supporters, the security situation has not been very stable after the August disengagement. September saw increased hostilities between Hamas and the Israeli Defence Forces, confirming the fears and reservations of those sceptical of the plan’s success. These reservations eventually culminated in intra-Likud dissent and to Benjamin Netanyahu challenging Sharon’s leadership of the party. Though Sharon emerged the winner in this contest, continued opposition eventually forced him to leave the party and form a new one of his own.

    Kadima: The March Forward

    The name of this nascent party, Kadima (forward), itself suggests that Sharon has defined its objectives very differently from those of the Likud. His centrist party aims to move away from the original Likud right wing extremist thinking, which includes blocking any further future withdrawals. And though Sharon himself has reiterated that there will be no further withdrawals, there is a sense that there could be some form of territorial compromise in the future in the process of striving for his goal to “lay the foundation” towards the “final borders of the state.”

    Sharon’s decision to quit the Likud could also be interpreted as sending a signal that he has transformed himself from an extremist to a moderate politician. In other words, he quit the party because its policies and beliefs were constraining his ability to work towards a peace process as envisaged by him, through which he wishes to emerge as the leader who at last defined Israel’s borders. Additionally, Sharon was unhappy about leading a party that was ridden by dissent and constant struggle. His continued stay in the Likud would have made him a hostage to the policies of either the Left or the Right.

    A public opinion poll conducted subsequent to his resignation by the Israeli newspaper Haaretz suggested that Kadima would win about 37 seats and the Likud Party reduced to a mere nine seats in the next parliament. This highlights the shift in Israeli public opinion: from considering the idea of a Palestinian state as a taboo initially, to understanding the risks and dilemmas involved in occupying Palestinian territories, and finally accepting the ‘two-state’ option. Israelis believe that Sharon is one leader who could forge a deal with the Palestinians without at the same time compromising on Israel’s security.

    However, Sharon’s political agenda of territorial compensation does not imply that a future peace agreement will involve Palestinians and their interests. The ongoing construction of the fence, building of new houses in settlements like Maale Adumim (in West Bank), and the E1 corridor connecting this settlement to East Jerusalem and eventually encircling it, controlling Gaza's borders, coastline, and airspace and retaining the right to re-enter the Palestinian territory anytime at will clearly highlights the unilateral character and maximalist nature of Sharon’s political agenda. By sidelining core issues like borders, the status of Jerusalem, right of return, settlements, etc., which are the main bone of contention, Sharon’s purpose seems to be, to place the peace process in “formaldehyde.” Even the latest effort in peacemaking i.e. the Road Map has been consigned to oblivion by incessant violence and the exclusion of core issues from the negotiations.

    Sharon’s Challenges: Securing Insecurities?

    But Sharon faces a difficult path to tread upon, as some of the challenges he faces include garnering enough support from other parties to form a coalition government led by Kadima, while at the same time attempting to change the trend of Centrist parties not performing too well in Israeli politics. In addition, he has to deal with his Palestinian counterpart Mahmud Abbas along with the ever-looming threat of Islamic fundamentalist groups like Hamas and their decision to enter the political fray. As an Israeli political commentator has stated, Sharon will have to “successfully use the Palestinian Authority’s inability to dismantle the infrastructure of terrorist organizations and the rising political power of Hamas to resist pressure that may develop for a rapid and unsatisfactorily deal.”

    These challenges have definitely been made a little easier by the support offered by Shimon Peres, the grand old man of Israeli politics and the former Labour leader, who joined Sharon and is backing him in his political endeavours. Thus, the next parliamentary elections will see three parties contesting i.e. the Likud, the Labour and the Kadima, in which the Labour party under Amir Peretz will stress on socio-economic issues, the Likud on an equal trade-off deal of land for peace with the Palestinians, and Kadima on preserving the Jewish majority within a democratic Israel. Here it would be pertinent to note that the difference between the Likud and Kadima is not over ideology but about the manner in which Israel’s security concerns have to be addressed; in effect, they advocate similar goals but through different means.

    On the Palestinian side, Sharon’s resignation was perceived, in the words of the chief Palestinian negotiator Saeb Erekat, as “a volcano erupting.” But for the Palestinian man on the street, it matters less at this point of time whether the Likud or the Labour rules. What is more important is the time frame for, and the nature of, a future Palestinian state. The recent suicide bombings by the Islamic Jihad only reaffirms the fact that the peace process will continue to witness violence even as political negotiations carry on simultaneously.

    The disengagement, Sharon’s decision to resign, formation of Kadima, Likud’s projected bleak future simply revisits the debate over politics continuing to dominate security and will have an adverse effect in the region. If Sharon were re-elected as the Prime Minister then one would witness the continuation of his policies. If the Labour comes to power under Peretz then security concerns would take a backseat to socio-economic issues. And Netanyahu as Prime Minister would definitely rule out any territorial compensation in the West Bank and adopt more stringent means towards the Palestinians. However, the result of the elections in March 2006 cannot be accurately predicted despite Sharon’s prevailing popularity, since three months are a long time for opinions, perceptions and leaders to change in Israel. One can only hope that the ongoing violence and political turmoil does not portend more tumultuous times ahead for the Israelis as well as Palestinians.

    Israel, Palestine Eurasia & West Asia IDSA COMMENT
    Myanmar: America’s Next Rogue State P. Stobdan December 14, 2005

    There are embryonic signs that Washington is all set to turn the heat on Myanmar next. The UN Security Council finally agreed unanimously on December 2 to a US request for a “one-off briefing” by the Secretary-General on “the deteriorating situation” in Myanmar. The US request followed the Tatmadow’s extension of Aung San Suu Kyi’s house arrest and a UN Committee resolution condemning Myanmar’s human rights abuse.

    There are embryonic signs that Washington is all set to turn the heat on Myanmar next. The UN Security Council finally agreed unanimously on December 2 to a US request for a “one-off briefing” by the Secretary-General on “the deteriorating situation” in Myanmar. The US request followed the Tatmadow’s extension of Aung San Suu Kyi’s house arrest and a UN Committee resolution condemning Myanmar’s human rights abuse.

    Washington raised Myanmar’s growing threat to international peace and security, citing problems caused by illicit narcotics, human rights abuses, internal repression – destroying villages, targeting minorities, and forcing people to flee the country. The US also cited the junta seeking nuclear capabilities.

    At the recent APEC meeting in Busan, President Bush pledged to help restore democracy in Myanmar, while Secretary of State Condoleezza Rice described the junta as “one of the worst regimes in the world.” In July 2003, Bush had signed the Burma Freedom and Democracy Act that banned imports from Myanmar.

    What came on the heels of the recent US assertion was a 124-page report by the Assistance Association for Political Prisoners (AAPP) revealing shocking details of the junta’s ‘brutal and systematic’ abuse of political prisoners (1,100 prisoners are still under detention). President Bush’s recent 50-minute meeting with a Shan human rights campaigner, Charm Tong, indicates the gravity with which the United States views the situation in that country. The junta’s move to a new capital, Pyinmana, triggered by its fear of a possible US attack – reinforced by the invasion of Iraq – has led to the displacement of thousands of people.

    The campaign to introduce the Myanmar issue into the agenda of the UNSC has been underway for some time. A report by Nobel laureates Vaclav Havel and Desmond Tutu – Threat to the Peace: A Call for the UN Security Council to Act in Burma – has had considerable impact on the world body. Their success in blocking Myanmar from taking over the chairmanship of ASEAN for 2006 seems to have also encouraged the West to push for change. The UN remains critical of Suu Kyi’s detention. But China, Russia and other Council members reject the notion that Myanmar’s situation poses a threat to international peace and security. Despite the ouster of Beijing favourite Khin Nuynt, China supports the junta, with Wen Jiabao asserting in July that China will not change its Myanmar policy “no matter how the international situation fluctuates.”

    The Bush administration’s ringing of the alarm bell about Myanmar acquiring WMD capabilities is significant. Yangon acquiring ballistic missiles and its announcement on developing a nuclear facility with Russian Minatom’s assistance since 2002 have raised many eyebrows. The project, stalled earlier due to financial reasons, seems to have been revived now. Minatom is to construct a 10 mega-watt pool-type reactor in Kyaukse near Mandalay. But an IAEA team, which visited Myanmar in 2001, expressed doubts about the country’s preparedness to maintain safety standards. There were reports suggesting that North Korea may take over the project from Russia. Moreover, Pakistani nuclear experts too have been visiting Myanmar since 2001, including a recent delegation led by Zaifullah to Pyinmana. These developments, along with the junta’s plans to acquire an additional squadron of Russian MIG-25s, have led to growing suspicions about Myanmar becoming the next problem state for America.

    The junta’s reconvening on December 5 of the National Convention (NC) to draft a new constitution as part of its 7-step Roadmap to form a “genuine and disciplined democratic system” lacks a specific time frame or itinerary; and is also vague on important details of the “transition process”. The chart (a better word than map) shows the junta effectively controlling all the procedures and processes of “democratization”. The Tatmadow wants to exercise complete control over both the road and the map. Its new law No. 5/96 severely restricts open debate, which could be enforced against those opposing the new format. The opposition remains equally steadfast on restricting the Tatmadow’s future role in politics. The ceasefire with insurgents appears fragile; more so with those still outside the legal fold and therefore seek greater protection for their rights. These factors, along with the power struggle within the junta which became intense after Khin Nyunt’s departure, could derail the NC process. The NC’s lack of credibility is another issue, as Western powers threw their weight behind the opposition. But the junta considers the recovening of the NC as a delicate juncture in the democratisation process and as such, the release of SUU KYI and Tin Oo could disrupt the process. Their release is therefore unlikely to come about until the main principles of the Constitution are ready and the way is clear for a referendum. SUU KYI’s popularity undoubtedly remains intact but some of the pro-democracy groups and ranks within NLD are not happy with her leadership style.

    The blocking of Yangon’s chairmanship has exposed ASEAN’s own credibility, and so far, neither the ASEAN engagement strategy nor the punitive sanction policy used by USA and EU has produced any positive results. A section in the US thinks that sanctions would not work against Myanmar because it is a pre-industrial state and can limp along on its own, even if placed under sanctions. There is merit in this argument because the limits and effectiveness of sanctions have been explored, both theoretically and empirically.

    Tatmadow cannot be wished away easily. But the junta’s rationalization that it exercises power to protect the country’s sovereignty and territorial integrity appears to be both an exaggeration and an illusion. Given the failure of the West and ASEAN to break the impasse, there is an increasing need for the UN along with China, India and Thailand to start a trilateral process under the “1+3 framework” to map out an Action Plan as a starting point for an agreed, workable (not theoretical or dogmatic) approach to breaking the vicious cycle of exaggerated expectations and ground realities. After securing the confidence of all concerned parties, the group could work out phased procedures and mechanisms to assist the reconciliation process. The group should guarantee Myanmar’s security interests. A coordinated EU, US, Japan and ASEAN approaches by way of economic measures in support of the 1+3 is necessary. Once the Action Plan is accepted, the West could lift sanctions. Meanwhile, the UN should consider mollifying Tatmadow by engaging its professional military in international peace keeping and peace building missions.

    India being Myanmar’s neighbour cannot ignore China’s changing Myanmar policy. Beijing could be making conciliatory gestures towards the opposition leader without antagonizing the junta in the belief that without the NLD’s participation the process could be long and difficult. India has quietly supported the democratic process in many neighbouring countries, including Myanmar. If we are not careful, the democratic agenda supported by India for many, many years could be usurped by China. India's interest also lies in preventing the US fomenting crisis in our strategic neighbourhood.

    Myanmar, United Nations, United States of America (USA), US-Myanmar Relations South East Asia and Oceania IDSA COMMENT
    Dhaka SAARC Summit: Political Compulsions Blunt Economic Progress C Uday Bhaskar December 08, 2005

    The 13th SAARC summit concluded in Dhaka on November 13 with a declaration, which notwithstanding its rhetorical flourish and ambitious objectives, reflected the structural constraints that have hobbled the organization for two decades and are likely to do so for the near future.

    The 13th SAARC summit concluded in Dhaka on November 13 with a declaration, which notwithstanding its rhetorical flourish and ambitious objectives, reflected the structural constraints that have hobbled the organization for two decades and are likely to do so for the near future. SAARC which was conceived in Dhaka in 1985 returned to the Bangladesh capital after 20 years but the primary objective of strengthening regional co-operation with a focus on accelerating economic growth, such that the human security indicators and welfare of the people are visibly improved remains as elusive as it was two decades ago.

    Much of this stasis emanates from the distinctive characteristics of SAARC as an entity and the existential reality that India is both the link to all the other members in a geographic sense and overwhelms the rest of the group in more ways than one. Consequently there is a deep-seated anxiety and historical animosity among countries such as Pakistan, Bangladesh and Nepal whose elite have nurtured a socio–politico and security discourse for decades, that casts India in the role of the historical 'enemy' or potential adversary as the case may be. Sri Lanka, Maldives and Bhutan represent a more positive texture vis-à-vis India and they have individually strengthened their bi-lateral ties with Delhi and benefited in the process.

    Hence the domestic discourse and perception in one spectrum of SAARC is that trade and economic co-operation can only follow the political orientation towards Delhi and this was much the tenor of Pakistani PM Shaukat Aziz's response when at the end of the Dhaka summit he noted that unless Kashmir is resolved, there could be no meaningful movement on other forms of regional co-operation envisaged by SAARC. The historical irony is that in 1947, when the sub-continent was acquiring a new political identity post partition, the prevailing international global trade arrangement – GATT – noted that given the economic and trade complementarities that existed and the natural rhythms of commerce that had been embedded for centuries, a separate provision was made for India and Pakistan – which then had two wings – West and East Pakistan (later Bangladesh after 1971). Article XXIV of GATT noted at the time that: "Taking into account the exceptional circumstances arising out of the establishment of India and Pakistan as independent states and recognizing the fact that they have long constituted an economic unit, the contracting parties agree that the provisions of this agreement (GATT) shall not prevent the two countries from entering into special arrangements with respect to trade between them, pending the establishment of their mutual trade relations on a definitive basis."

    The historical record suggests that the ruling elite in Pakistan and later Bangladesh have worked towards the opposite objective – which is to steadfastly reject any form of mutually beneficial bi-lateral or multilateral trade arrangement with India and hence both SAPTA and SAFTA remained congenitally stillborn or effete. The blunting of economic opportunities on the political anvil and the converse example are reflected in the trajectories of SAARC and ASEAN respectively in the period 1980 to 2003. Total merchandise exports within the block – US $664 million (1980) and $4,773 m (2003) for SAARC and $13, 350 m and $104, 872 m for ASEAN. These export figures represented 5.2 per cent of total block exports in 1980 and declined for the next two decades to 4 per cent and is now 5.6 per cent in 2003 for SAARC. Intra block exports for ASEAN on the other hand moved from 18.7 per cent to 23 per cent in the same period. With ASEAN poised to engage with the East Asian bloc in a more structured manner, it is axiomatic that there will be greater economic impetus and vitality to that entire region and the tenet that sound economics can be separated from contested politics is best exemplified in the case of the strong Sino-Japanese trade and investment links and in the even more remarkable China-Taiwan relationship.

    Regional trade arrangements (RTA) have grown six fold the world over, in the last quarter century to the mutual benefit of all the constituent members and in many ways SAARC is the stubborn exception to the rule. However the silver lining in the SAARC experience is the nature of the bi-lateral trade arrangement among some states. The best illustration is that of the India-Sri Lanka Free Trade Agreement that was signed in late 1998 and brought into force in early 2000. Despite the turbulent political context relating to the IPKF experience when Delhi and Colombo were at cross-purposes, the political leadership in Sri Lanka arrived at a consensus that the island's economic future would be better served by closer links with giant India.

    The trade and economic figures of the last 15 years more than substantiate this conviction. Sri Lanka's exports increased from US $2.3 billion in 1990 to $6.5 billion in 2003 and currently Sri Lanka has the highest per capita GNP within SAARC at US $930. (India, Pakistan and Bangladesh have per capita of $540, 520 and 400 respectively). The tangible benefits for a smaller economy which enters into a RTA with a larger partner are discernible in the disaggregated figures of GDP in the case of Sri Lanka. While GDP moved from $8.03 b in 1990 to $18.23 b in 2003, the share of agriculture dropped from 26 per cent to 19 per cent while that of services increased from 48 to 55 per cent. (All figures from World Bank WDI Report 2005.)

    On current evidence despite the Dhaka Summit determination to bring SAFTA into force by 01 January 2006 – which is less than two months away – it is more likely that SAARC will be weighed down in reaching procedural consensus since there is little or no political will among the major states to engage with India. The only significant movement in Dhaka has been in expanding SAARC to admit Afghanistan and this has not been devoid of deeper political considerations. Nepal ensured that the admission of the new member was linked to the observer status of China (and Japan) in SAARC. However the impact of the two Asian economic heavyweights on the SAARC bloc will be a function of the manner in which the bi-lateral relations that obtain between Delhi and Beijing develop.

    Thus despite pious and earnest hope, the irrefutable logic of regional economic co-operation will be stunted by the glass ceiling of domestic political discourse in SAARC and the troubled legacy of revisionist colonial history that is still burdened by the cross of 1947.

    Bangladesh, South Asian Association for Regional Cooperation (SAARC), Regional Trade Arrangements (RTA) South Asia IDSA COMMENT
    India-China Energy Cooperation: Attaining New Heights Nandakumar Janardhanan November 28, 2005

    Last week witnessed a major development on the India-China energy front with the joint bidding plan for Petro-Canada's Syrian assets by India’s Oil and Natural Gas Corporation (ONGC) and the China National Petroleum Corporation (CNPC). In September this year Petro-Canada expressed interest to sell off its 38 per cent stake in the Al Furat field, which produces about 70,000 barrels of oil daily accounting for 50 per cent of Syria's total output. This is the first time that Indian and Chinese firms have joined together to secure stakes in an overseas energy facility.

    Last week witnessed a major development on the India-China energy front with the joint bidding plan for Petro-Canada's Syrian assets by India’s Oil and Natural Gas Corporation (ONGC) and the China National Petroleum Corporation (CNPC). In September this year Petro-Canada expressed interest to sell off its 38 per cent stake in the Al Furat field, which produces about 70,000 barrels of oil daily accounting for 50 per cent of Syria's total output. This is the first time that Indian and Chinese firms have joined together to secure stakes in an overseas energy facility. In overseas bidding efforts since 2004, Indian firms have faced competition from Chinese firms and in three different instances India lost to China in the race to secure overseas hydrocarbon assets. Angola was the first instance, where India bid for 50 per cent stake of Shell in Angola's Block 18 field. In the $600 million offer, India had promised to include $200 million to support Angola's ongoing railway construction project. This was outbid by China with a $2 billion offer. The bidding competition again surfaced when India wanted to buy the stake of Petrokazakhstan — a Canadian oil firm operating in Kazakhstan. In this case as well, China won the deal by offering $4.2 billion to Petrokhazakhstan against India's offer of $3.9 billion. The third incident was in the case of India's energy interest in Ecuador, where India and China competed for Encana's stakes. China proved to be the winner in this race as well.

    Different perceptions exist regarding India-China bilateral relations, but most analysts overwhelmingly reject any scope for cooperation between the two countries on the energy front. Many scholars see energy resources as a common interest of both the countries and contend that the search for energy would lead to competition and eventually to conflict. But these perceptions have to be studied in a broader framework to understand the possibility of any such unhealthy competition. First, most such conclusions are made on the basis of the historical experience of the 1962 conflict as well as China's military inclination towards Pakistan. These perceptions play a major role while defining and dealing with any major issue between the two countries. However, the bidding and outbidding instances have to be seen purely in a commercial sense and not as political competition between the two countries.

    After the Angola incident itself both sides realized that there is a greater scope and necessity for cooperation in their future search for overseas energy. This thought has crystallized into bilateral meetings and exchanges of visits. In August 2005, a high level team led by Mr Talmiz Ahmed visited China, and another high-level visit is expected to happen in mid-January 2006 primarily to study the scope for cooperation. Cooperation between the two countries would have far reaching implications on the global energy market. First, by pooling financial and technological resources, such a joint venture would become one of the largest state-owned bilateral joint energy efforts to address the energy security issues of two major energy consumers of the world. Secondly, in the coming years, more joint ventures may emerge from other import dependent countries or an Asian regional effort may form under the leadership of India and China. Third, this might adversely affect energy producers who are waiting to encash on the competition between India and China. Many energy watchers have pointed out that Russia and Bangladesh have been trying to gain advantage from India-China competition. Both India and China have shown interest in buying a 20 per cent share in Yuganskneftgaz (a Yukos subsidiary expropriated by the Russian government). Bangladesh is also angling to benefit from the India-China competition for natural gas. Although India is geographically closer, Bangladesh has been showing interest in exporting natural gas to China, in an attempt to increase its bargaining value. These kinds of producer politics would be hard to play if India and China decide to go ahead with their joint search for energy. Fourth, joint efforts would also help to bring down the stake values, as it has been seen that in the name of competition China has paid considerably higher value for its overseas equity purchases.

    Taking the relevance of energy security in the current global sense and the growing energy demand of India and China, it would be mutually beneficial for the two countries to cooperate and work together in their quest for energy. The primary areas of possible cooperation are:

    • Most energy exploration and development projects around the world require large-scale investment and technology. Joint efforts by the two countries in pooling their investments and technology would yield better resource outputs.
    • Hydrocarbon transportation route — oil and gas pipelines — is another area of possible cooperation, where they can bring energy through the shortest possible routes with minimum investment cost.
    • As China gets most of its hydrocarbon supply through the Indian Ocean SLOCs, it would give considerable importance to cooperating with India to ensure the security of is supplies.
    • India's Sakhalin gas production shares can be swapped with Chinese supplies from the Middle East, which would enable both countries to reduce the transportation distance and cost.
    • India and China would be able to bring together other imported energy dependent Asia-Pacific countries, which can act as a peer group to harness the growing energy price, and demand the removal of Asian Premium charged on every barrel of oil exported to the Asia-Pacific.
    • As suggested by India's Petroleum Minister, Mani Shankar Aiyar, cooperation between India and China would be able to bring in a pipeline network to tap the Russian, Central Asian and Middle Eastern energy sources. In future this pipeline network can form a hub of energy supply to the other Asia-Pacific countries.
    • As investments in renewable and nuclear energy in the region are expected to increase in the coming years, efforts to build up an 'Asia-Pacific cooperation' in this regard would help member countries address their growing energy demand.
    • India and China can consider cooperating in the field of 'tar sand' exploration or gas hydrate exploration, as these would gain considerable importance as tomorrow’s major energy sources.

    The scope for cooperation between India and China has to be explored further as there would be more mutually beneficial areas. The perceived competition between the two countries would not take off for many reasons. They have been working together for many decades to eliminate their past differences on political and territorial issues. Hence, neither side can afford to encourage the emergence of further differences or the persistence of extant irritants in the coming years. Moreover there are other challenges like the threat of US sanctions — regarding investments in Iran, where it is essential for both countries to cooperate politically and economically to ensure energy supply. The benefits that would accrue as a result of cooperation on the energy front between the two Asian giants are much larger than that of competition.

    India, Energy Cooperation, India-China Relations, China Non-Traditional Security IDSA COMMENT
    Vote at IAEA Not Anti-Iranian But Pro-India C Uday Bhaskar October 06, 2005

    The Indian vote at the IAEA in Vienna last week has attracted considerable domestic attention and the fact that New Delhi went along with the US-EU position is being interpreted as a case of being anti-Iranian and furthermore, as a betrayal of the non-aligned block and Third World solidarity. This is invalid and the facts as they have emerged need to be carefully analyzed.

    The Indian vote at the IAEA in Vienna last week has attracted considerable domestic attention and the fact that New Delhi went along with the US-EU position is being interpreted as a case of being anti-Iranian and furthermore, as a betrayal of the non-aligned block and Third World solidarity. This is invalid and the facts as they have emerged need to be carefully analyzed.

    Iran is a signatory to the Nuclear Non-Proliferation Treaty which it has voluntarily signed as a non-nuclear weapon state. As per this treaty Iran has certain rights and obligations as regards its domestic nuclear activities and the regulation and monitoring of the latter is the responsibility of the International Atomic Energy Agency (IAEA). Over the years Iran has embarked upon some nuclear programmes and has been adhering to the safeguards mandated by the IAEA. However in 2002, a group of Iranian dissidents revealed that Tehran was pursuing a covert nuclear weapon programme and this matter caused predictable concern in the global community – particularly the USA – which had prioritized the WMD issue after the tragedy of September 11, 2001.

    While India is not a signatory to the NPT, it is a member of the IAEA board and thus the point of relevance for India vis-à-vis Iran is the boardroom in Vienna. Commencing March 2003, the IAEA has been in consultation with Iran over its nuclear programmes and sought clarification regarding its compliance with the various technical provisions that Tehran was required to conform to. These discussions continued for months and in November 2003, the IAEA issued a detailed report in which it noted that Iran had concealed many aspects of its nuclear programme for 18 years. The IAEA concluded that as of end 2003, the Iranian nuclear programme "consists of a practically complete front end of a nuclear fuel cycle" and the various technical features were listed. More importantly the Agency opined that based on the information made available by Teheran, "it is clear that Iran has failed in a number of instances over an extended period of time to meet its obligations under its Safeguards Agreement with respect to the reporting of nuclear material and its processing and use; as well as the declaration of facilities where such material has been processed and stored."

    This is the basis on which the Iran issue has been deliberated upon in the IAEA and from November 2003 to the present time, the circumstantial evidence appears to suggest that Iran has been engaging in nuclear activities that it has not declared such as enrichment of fissile material and re-processing of fuel. These are complex technical matters and the IAEA has sought both time and co-operation from Iran to come to an informed assessment about whether or not Iran is pursuing a clandestine nuclear weapon programme – which is the US perception. One cannot deny that while there is a technical angle to the whole Iran issue, there is also embedded a clear political and strategic dimension to the entire debate and the current Bush administration has already identified Iran as a supporter of terrorism and part of the 'axis of evil' nations that are seeking nuclear weapons.

    Iran however, has steadfastly maintained that it is not seeking to acquire nuclear weapons and that it is only seeking to exercise its rights as a non-nuclear weapon state to whom the peaceful use of nuclear energy cannot be denied. Furthermore Iran avers that it needs nuclear energy since its current reserves of hydrocarbons will seen be exhausted, and that in any case, merely since it has oil reserves, it cannot be denied the right to acquire the expertise in the production of civilian nuclear energy. This is a valid position but the exercise of these rights will logically have to be within the framework of the existing regulatory mechanisms – such as the NPT and the IAEA – that Iran has accepted.

    From the Indian perspective, the strategic and security logic will indicate that a nuclear weapon Iran would not be in the interests of regional stability and peace. India has also been steadfastly opposed to any nuclear proliferation even though it is not part of the NPT in a formal sense. Critics point out that this is a hypocritical position for India since New Delhi, citing security compulsions, has become a nuclear weapon state after May 1998. It is true that India acquired the nuclear capability and every nation has the inalienable right to defend its core security interests as it deems fit – and Iran is no exception. But in such a case, Iran would have to cite security reasons for its change of position and exercise the right to withdraw from the NPT – as North Korea had done a few years ago – and then the ball-game changes. But for its own reasons, Iran has hidden some aspects of its nuclear activities from the IAEA for 18 years and even now maintains that it is NOT seeking nuclear weapons. If this be the case, the onus lies on Iran to prove its own credibility and profile as a responsible state that abides by its treaty obligations – and the demand the rights that are due to it. India has never questioned Teheran's track record and does not subscribe to the US view that Iran currently constitutes a threat to regional and global security due to its nuclear activities.

    But in terms of the prevailing perception about proliferation, doubts linger. The current evidence about Iran suggests that the AQ Khan network was instrumental in providing certain centrifuges and other nuclear know-how to Iran and that this covert traffic had begun as far back as 1987. This was also confirmed by General Musharraf in New York in early September though he denies any state complicity in the matter. Be that as it may, the fact of the matter is that today, after 9-11 and the revelation about the AQ Khan network, the primary global challenge is the degree to which the clandestine nuclear network has encouraged nuclear proliferation. This determination is of crucial importance to countries like India and it is the duty of the IAEA – as the global nuclear watchdog to get to the bottom of the issue. And this is precisely what the IAEA as a collective ought to objectively pursue before taking the matter to the UN Security Council where punitive action may be recommended by some of the permanent members such as the USA. India's current intervention in the IAEA was effective in shaping the draft in such a manner so that the Iran issue was not immediately referred to the UNSC and more time has been made available to all parties. Hence a breakdown was averted – which would have been the more likely exigency if the US-EU position had been adopted. And having worked towards a compromise – which was accepted by the EU – India could not have abstained, for such an action would have negatively impacted New Delhi's credibility in the global community.

    Thus it merits repetition that the Indian vote in Vienna was not a vote against Iran but one that was consistent with the principles that India has supported – namely against nuclear proliferation – and about the need to maintain the sanctity of international treaties and regimes. Simultaneously India has managed to avert any escalation of the Iran issue and has encouraged both Iran and the IAEA to arrive at a modus-vivendi in the current impasse. This initiative has ensured that the Iran issue has remained at the diplomatic level with no adverse impact on the oil market and regional stability. All these elements are consistent with India's abiding values and interests and the vote on Iran needs to be viewed in this context and not in a simplistic emotional manner that interprets the vote as an Iran versus India issue. Hopefully if the matter is resolved satisfactorily before the IAEA meets again in November, even Iran may acknowledge that the contribution made by India was in Teheran's long term interests.

    India, Iran, Nuclear Non-Proliferation Treaty (NPT), International Atomic Energy Agency (IAEA), A Q Khan Nuclear and Arms Control IDSA COMMENT
    Resolution of North Korean Imbroglio C Uday Bhaskar September 21, 2005

    The breakthrough achieved on September 19 at the six-party (US, North Korea, South Korea, China, Russia and Japan) talks in Beijing has the potential to satisfactorily resolve the North Korean nuclear imbroglio that has been festering since 2002 when Pyongyang unilaterally withdrew from the international agreements that it had entered into over its domestic nuclear programme.

    The breakthrough achieved on September 19 at the six-party (US, North Korea, South Korea, China, Russia and Japan) talks in Beijing has the potential to satisfactorily resolve the North Korean nuclear imbroglio that has been festering since 2002 when Pyongyang unilaterally withdrew from the international agreements that it had entered into over its domestic nuclear programme.

    In the intervening three years, North Korea had been identified as part of the 'axis of evil' and the Bush administration has held a series of talks under the six party banner – in vain – till the breakthrough of September 19.

    Paradoxically, this encouraging development has come about at a time when the major nuclear powers are grappling with the Iranian nuclear issue and the perceived violations of treaty commitments by Tehran – an issue that is now being deliberated upon at the IAEA in Vienna.

    At the heart of both the issues lies the purported clandestine nuclear weapon programme being pursued by North Korea and Iran – which is a transgression of their non-nuclear weapon status as per the Nuclear Non Proliferation Treaty (NPT) that both states had voluntarily entered into.

    North Korea had withdrawn from the NPT in January 2003 – which is legally permissible – since it believed that its supreme national interest was being threatened by what it has often described as US hegemony in the region. Intelligence reports have referred to Pyongyang seeking to extract weapon grade fissile material from the spent fuel in its nuclear reactors and inspections by the IAEA have been suspended by North Korea which has taken recourse to self-imposed isolation.

    In the interim, Pyongyang had also declared that it has acquired nuclear weapons and this exigency can have tectonic implications in the tenuously maintained strategic balance of North East Asia with the possibility of Japan deciding to break its nuclear taboo – which would have a cascading effect in terms of the reaction from Beijing and Seoul.

    The nuclear issue itself has become more animated since 9/11 and the US determination about Iraq and its quest for weapons of mass destruction. Hence the urgent import accorded to North Korea and innumerable talks over the last three years have finally led to the current breakthrough – though it needs to be reiterated that these are a set of principles that have to be implemented by all concerned.

    This is not the first time that such a modus vivendi has been attempted and the Clinton administration tried in all sincerity – but failed with its energy cum security package.

    It may be premature to conclude that the North Korean issue has been resolved in a permanent manner and that NE Asia will finally find its own strategic equipoise. What have been agreed to are a set of principles and the phased manner of the implementation includes assuaging of the security anxieties of all the interlocutors – principally North Korea, US and Japan – and at a remove South Korea.

    In turn, North Korea will be offered an energy package enabled by South Korea and the culmination will be a verifiable dismantling of Pyongyang's nuclear weapon programme – and its final re-entry into the NPT as a non-nuclear weapon state. Past experience would suggest that there can be mini obstacles and major hurdles to cross before the September 19 agreement is seen as a done deed. Certain differences have already cropped up over the light water reactors to be provided to North Korea and more banana peels will surface when the US Congress deals with the matter.

    However, what emerges from the North Korean success is the increasing relevance of China in playing the role of an effective peace-broker in matters nuclear. China's role in tacitly enabling North Korea in its nuclear-missile programmes is one of the more complex post-Cold war challenges and it is evident that Beijing is now demonstrating its ability to play the role of a 'responsible' power when it so desires. From the sequence of meetings held with North Korea over the last three years, one may infer that the US and its allies, including Russia, were not in a position to prevail upon Pyongyang – and Beijing's intervention was necessary. The related extrapolation is that just as China's economic and trade relevance is now acknowledged within the region – and beyond – its strategic footprint is also being enhanced in a calibrated manner.

    With North Korea moving towards a putative, consensual resolution, global attention will now shift to Iran, which is of more immediate and proximate relevance to India. Unlike the North Korean case, there are many divergences as far as Iran is concerned. While being an NPT signatory as a non-nuclear weapon state, Tehran has never claimed that it is seeking nuclear weapons or threatened to leave the NPT fold - actions that Pyongyang took. Most intelligence estimates suggest that Iran has been pursuing a covert programme for about 15 years as regards enrichment that goes beyond the rubric of peaceful use of nuclear energy and Pakistan President General Pervez Musharraf recently admitted that the AQ Khan network had indeed enabled Iran in its covert nuclear programme.

    Thus there is a great deal of opacity about the Iranian nuclear profile and Tehran has refused to accept greater intrusive inspections in its domestic nuclear facilities. Consequently, the global community led by the US is seeking to have the matter referred to the UN Security Council for a more robust and muscular response to contain nuclear proliferation and the matter is still being deliberated upon within the IAEA. Interestingly, while the US and the EU states have taken a certain position apropos the Iranian nuclear programme and Russia is veering around to the same, China has been very circumspect – till now. Whether China will enable Iran to acquire rudimentary nuclear weapon capability or join the other declared nuclear weapon powers in persuading Tehran to emulate Pyongyang will perhaps be the swing factor in the Iranian impasse. The deeper contestation is one between the US and China about whose influence will prevail in the volatile southern Asian region, which, apart from its hydrocarbon index, is emerging as the new theatre of strategic relevance. It is currently animated by the triad of critical global determinants – namely terrorism and religious radicalism, nuclear proliferation and energy stability. India is still a tangential player in these deliberations but it will have to monitor them with the utmost care. North Korea may yet be the lull before a still brewing tempest.

    Nuclear Non-Proliferation Treaty (NPT), International Atomic Energy Agency (IAEA), North Korea East Asia IDSA COMMENT

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