Prime Minister Manmohan Singh’s visit to Moscow from December 4-6, 2005 highlights the continued importance of Indo-Russian cooperation in a changing geopolitical scenario. Beginning with President Vladimir Putin’s first visit to India in October 2000, bilateral summits between the Indian Prime Minister and the Russian President, alternatively in each other’s capital, have become an annual feature. In contrast, President Putin’s predecessor, President Boris Yeltsin visited India only once, in January 1993.

The thrice postponed Afghan parliamentary and provincial council elections are finally over. But, is the Bonn-mandated political process over? With the US intent on cutting down its troop levels in Afghanistan this year, is the ‘war on terror’ in Afghanistan also over? It is being said that the Bonn process has concluded with the September 18, 2005 elections. If so, then it is pertinent to examine the end-result of the four-year political process and the recently concluded elections.

The inaugural East Asian Summit (EAS), touted as groundbreaking, commenced on December 14 in Kuala Lumpur comprising 16 nations— the 10 ASEAN countries, China, Japan, India, Australia and New Zealand with Russian President Vladimir Putin making a special appearance. The EAS Declaration, like many issued before in the region, is wide-ranging: from political and security cooperation, infrastructure development, financial issues, further liberalisation of regional trade and investment, poverty eradication to fighting epidemics. Nonetheless, inter alia, three points need underscoring.

In India, the defence budgeting system is incremental and input-based. Yearly allocations of funds are made without reference to the defence plans. In effect, the budget does not get linked to any established goals or outputs. Resource planning beyond a one-year period is not carried out. Some have even called it an archaic system. The five-year defence plans have lost their utility for resource planning. This article brings out the shortcomings in the present budgeting system and recommends some options for a goal-oriented budgeting system.

The 18 July Bush-Manmohan Agreement is currently being implemented, in bits and pieces. At the time of the signing of the agreement it was stated by different officials that both governments would proceed to unilaterally implement the provisions that pertained to them and there would be no expectations of reciprocity.

Much of the current debate on India’s decision to evolve a set of agreements with the United States and engage the international nuclear technology control regimes in order to promote civilian nuclear cooperation unfortunately has not focused on some of the key questions involved and the available options before the country. Clearly, the country needs to take decisions from a subset of options that are i) politically feasible and ii) most desirable/least undesirable from the viewpoint of national interests.

While the efforts of ONGC-Videsh and Indian Oil Corporation are laudable, there is still some distance our firms have to travel to catch up with global competition. I urge our oil and gas PSUs to think big, think creatively and think boldly in this context…They have to be more fleet-footed in making use of global opportunities, both on the supply and demand side, I find China ahead of us in planning for the future in the field of energy security. We can no longer be complacent and must learn to think strategically, to think ahead and to act swiftly and decisively.