Showing posts with label Look East Policy. Show all posts
Showing posts with label Look East Policy. Show all posts

Wednesday, September 10, 2014

President’s Visit to Further Boost India-Vietnam Ties

Maj Gen (Retd.) 
P K Chakravorty

Introduction

India’s External Affairs Minister Sushma Swaraj recently completed a visit to Vietnam from 24 August to 26 August 2014. During the visit, she interacted with the top leaders of the country and candidly stated that our ‘Look East Policy’ should soon become ‘Act East Policy’. The visit witnessed discussions on the exploration of oil in the South China Sea and measures to deepen defence ties. As is known, Vietnam has offered India five new oil blocks for exploration in the South China Sea. India has to decide how she could exploit these assets as also assist Vietnam in freedom of navigation, maritime safety and security in the disputed South China Sea. During her visit, Swaraj also chaired a brainstorming session with 15 Indian Heads of Missions in South East Asia and East Asia in Hanoi to chart out foreign policy initiatives to be undertaken in the strategically important region by the Indian Government.

Indian President Pranab Mukherjee is due to visit Vietnam in mid September and preparing the grounds for a successful tour was another objective of the External Affairs Minister’s itinerary.

Issues of Importance

As is well known, Vietnam shares an acrimonious relationship with China following their recent standoff in the wake of China escorting a mobile deep sea oil rig with escort ships 20 miles off the Vietnamese coast in the South China Sea. India and Vietnam enjoy strong strategic relations which emerged with the first MoU on Defence being signed in 1994, the formal Defence Protocol in 2000 and the Strategic Partnership in 2007. Ever since we have an annual Strategic Defence Dialogue with the Defence Secretary representing India. Considering the intensity of our relations, the upgradation of these talks to the Ministerial levels would be more beneficial. The other issues which are currently important are elucidated in succeeding paragraphs.

The Cam Ranh Bay has been often described as one of the jewels of Vietnam. The long protective seaward peninsula and natural inner and outer harbours form what many believe to be possibly the best deep water sea port facility in the entire world. There is also an Air Force base with excellent runways for state of the art aircraft. The usage of these facilities by the Indian Navy and Indian Air Force would help us to strengthen our strategic partnership and enable us to undertake actions to protect our assets in the South China Sea. These issues are extremely sensitive and would not ever be expressed publicly.
Based on Vietnam’s requirements, India could provide Dornier surveillance aircrafts, mini Unmanned Aerial Vehicles (UAVs), upgraded T-72 tanks, few of the old ships of Indian Navy and indigenously manufactured Artillery equipment once the same has proved trials. Vietnam has been provided a US $ 100 million Line of Credit to possibly purchase four Offshore Patrol Vessels (OPVs) from Goa Shipyard Limited.

Vietnam is impressed with India’s Missile development and is keen to purchase the Supersonic Cruise Missile BrahMos which could be used on land and sea. The issue merits serious consideration as there are no objections from the foreign joint developer. Vietnam is also keen that opportunity be accorded to train their scientists in missile technology.

Training: Vietnam admires the professional training of India’s Armed Forces and looks forward to assistance in training in the following areas:-
  • Conversion training for SU-30 pilots of the Peoples Vietnam Air Force by the Indian Air Force.
  • Submarine crew training of the Peoples Vietnam Navy by the Indian Navy.
  • Training in Counter Insurgency and Jungle Warfare with the Indian Army.
  • Training in English language.
While the strategic field remains extremely important, a crucial issue which merits attention is the exploration of oil. During Sushma Swaraj’s visit, exploration in two oil blocks was extended for one year. Vietnam has offered five more blocks to India for oil exploration. India has to consider two factors before arriving at a decision. The first is the technical feasibility of ONGC to undertake the task. It is pertinent to note that it would be a worthwhile challenge to our private players undertaking the task with Government assistance. The second issue relates to the objection from China which should not affect us as we have made our stand clear that these explorations are being undertaken in international waters and therefore not violating international rules. Energy remains a major concern for India and we must seriously consider the Vietnamese offer and undertake exploration.

As regards other sectors, considerable efforts have been undertaken to make the two way trade between the countries to about $ 6 billion. This is indeed meagre considering that the two way trade between Vietnam and China is $ 50 billion. Efforts must be made to enhance the two way trade to $ 20 billion by 2020. Apart from economic activity, India is culturally very close to Vietnam. The Hindu temples at My Son in Vietnam bear testimony to the centuries old relationship between the two countries.

However, these temples need to be repaired by the Archaeological Survey of India. Further, as regards connectivity, despite a lot of discussions as on date there is no direct flight between India and Vietnam. Proposals exist of Jet Airways and Vietnam Airlines operating these flights but the same is yet to fructify.

Expectations from the President’s Visit

The President’s visit in a few days from now will provide a fillip to the close relations between the two countries. The President who has an excellent understanding of the country would do well to focus on the strategic relationship by formalising the $ 100 million Line of Credit to Vietnam to enable them to procure Off Shore Patrol Vessels from Goa Shipyard Limited. Further, the issue regarding sale of BrahMos Supersonic Cruise Missiles could be discussed. Training in the fields of Sukhoi pilots, submarine arm of the Navy and scientists in Missile Technology could be concluded.

The exploration of a total of seven oil blocks by India in the South China Sea could be considered. While exploration is currently on in three blocks, it would be in India’s interest to view the issue pragmatically. The two way trade needs to be enhanced and both sides need to identify measures to ensure that the same is stepped up to $ 20 billion by 2020. This would occur only if direct connectivity exists between the two countries. Direct flights must commence between the two countries at the earliest. Culturally it would be appropriate for India to repair the My Son temples by Archaeological Survey of India after working out the details. Overall relations will be strengthened if the Strategic Dialogue is held between the two Defence Ministers rather than the Defence Secretaries.

Conclusion

India and Vietnam are intense strategic partners and they perceive issues in the Asia Pacific region with tremendous convergence. The visit of President Mukherjee will further strengthen the existing relationship by looking into areas that merit importance.
(The author was India’s Defence Attache to Vietnam)

Published Date: 10th September 2014, Image source: http://carimg.sulekha.com
(Disclaimer: The views and opinions expressed in the articles published in the e-journal are those of the authors and do not necessarily reflect the official policy or position of the Vivekananda International Foundation)

Tuesday, February 12, 2013

The Evolving Indo-Myanmar Defence Relationship: an Analytical Perspective


Brig (retd) Vinod Anand 
(Senior Fellow, VIF)

It was only in early 1990’s that India realized that it was fast loosing strategic ground to China due to its lack of engagement with Myanmar. Not only security and stability in the border regions was crucial to India from internal security point of view but also constructive engagement with Myanmar and connectivity through it was very important for India to realize its ‘Look East Policy’ unveiled in early 1990s.

The military to military relations between the India and Myanmar gained traction with the goodwill visit of the then Chief of Army Staff, General B.C.Joshi to Myanmar (May 1994). Supply of some military hardware followed. Momentum to the defence relationship was further imparted when in January 2000 when a military delegation led by the then Indian Army Chief, Gen. VP Malik visited Myanmar and met Myanmar’s senior military elite to forge a military to military relationship which over the years has proved very fruitful. Since 2000, after the return visit of Gen. Maung Aye to India, bilateral annual border meetings between the two armies have been taking place regularly. India has also supplied a range of military hardware since then.

The Indian Prime Minster during his visit to Myanmar in April 2012 had also stressed on the need for maritime security cooperation and observed that both India and Myanmar need to “expand our security cooperation that is vital not only to maintain peace along our land borders but also to protect maritime trade which we hope will open up through the sea route between Kolkata and Sittwe.” In February, 2012 Myanmar Navy had taken part in joint naval exercises conducted by India with the participation of 14 nations’ navies (Milan series of naval exercises).

The recent visit of Mr. Antony to Myanmar (20-21 January, 2013) was a continuation of trend that has marked the growing defence cooperation between the two countries. After a degree of democratic reforms that were ushered in 2010, many military dignitaries from both sides have exchanged visits to enhance military to military cooperation and address mutual border security threats and challenges. In fact, in last two years or so the three Indian services chiefs have visited Myanmar to forge a closer defence relationship with Myanmar. This time the Defence Minster was accompanied by Army Commander of Kolkatta based Eastern Command and Vice Chief of Indian Navy which highlighted the fact that India was keen to further address its concerns regarding land and maritime security concerns in coordination with Myanmar armed forces.

It is important for India to build up capacities of the Myanmar’s armed forces especially in relation to developing its prowess in fighting the insurgents. Since the year 2000 there have been off and on coordinated operations along the borders to flush out the insurgents. The insurgents take advantage of the difficult terrain along the borders and lack of adequate controls along the borders to carry out attacks and then cross over to Myanmar.

The Defence Minister’s visit last month also came in the background of clashes between the Kachin insurgents and the Myanmar armed forces; Kachins remain the only group with which the Myanmar government has not been able to conclude a lasting ceasefire. Kachin Independent Organisation has been known to have cross-border linkages with Indian insurgents groups like ULFA in the shape of having provided shelter and advance military training to ULFA cadres. It was reported that there was a base of Indian insurgents in Kachin areas across the border. Last November, a high level 12-member team from Myanmar led by their Naga administration zone chairman U R Sanchyu and Pangsau sub-township representative had held a meeting with the Indian delegation at Jairampur in Arunachal Pradesh's Changlang district for discussions on cross-border crime, insurgent activities and other connected issues.

Further, NSCN is another active insurgent group which has trans- border affiliations with Myanmarese Nagas of Sagaing division opposite Indian states of Manipur and Nagaland. There were also reports early last year that a variety of North Eastern insurgents groups have joined together to coordinate their anti-India activities. ULFA, NSCN-K and PLA of Manipur seemed to have played key role in bringing these groups on a common platform. Sharing of information on operations and sources of weapons, facilitating training and providing mutual support and shelter along the Indo-Myanmar borders were some of the other objectives to be achieved by the so called “United Front’ composed of 14 anti-India insurgent groups.

In addition, the signing of a ceasefire agreement with Myanmarese Nagas of Sangaing division by the Myanmar government in May 2012 holds the prospects of the Indian Naga insurgent groups and their affiliates finding shelter and succor in their training bases. India was not informed about such an agreement and thus there was a certain degree of disappointment among the Indian security forces. With the Myanmar armed forces engaged in putting down the Kachin insurgency, it is quite possible that they were not willing to open another front that would have compounded their problems.

India has been providing training facilities to Myanmar armed forces in professional and technical courses; the vacancies in such courses for the Myanmar defence forces are being regularly enhanced. Maintenance of some Russian origin equipment is also being provided by the Indian defence forces. Building of defence infrastructure in the border areas has been another proposition which may fructify soon. This would facilitate quick movement and deployment of Myanmar forces to tackle insurgents and maintain law and order in border areas.

Even though the sector commanders on both sides are in touch with each other on a regular basis, India wants to intensify engagement so that insurgent groups are choked of arms supplies and cadre in the north-eastern states.

While for long Myanmar army has been pleading a lack of capacity in tackling the varied insurgent groups along the border, there is a view that Myanmar lacks the political will to act against some of these groups especially the Nagas’ insurgent outfits.
During his visit to Myanmar Mr. Antony met both the President of Myanmar and their Defence Minister. He conveyed the importance placed by India on enhancement of bilateral ties in all fields, including defence. He noted that the recent exchanges of visits between both countries at political and other levels had imparted a new momentum to the bilateral relationship.

Both the Defence Ministers deliberated on the following points:-

(a) Improvement of mechanisms for coordinating patrolling by the army along the land borders to prevent infiltration of insurgents

(b) Similar arrangements for patrolling maritime boundaries to curb activities of insurgent groups

(c) Ensuring that neither side allows the insurgents to use their territory for activities detrimental to each others’ security.

(d) Additional vacancies for training of Myanmar army personnel in Indian training academies

(e) Repair and training cover for Myanmar defence forces equipment of Russian origin

The visit also came at a time when China has expressed ‘grave concerns and dissatisfaction’ regarding some of the Myanmar army’s shells landing on their side of the border during the ongoing Kachin conflict. At the time of Indian Defence Minister to Naypidaw, a Chinese high level military delegation led by Lt-Gen Qi Jianguo, the deputy chief of general staff in the PLA met with Burma’s President Thein Sein in Yangon for strategic security consultations between the armed forces of China and Burma. However, the Indian and Chinese dignitaries’ visits seem to be unrelated.

Despite the recent opening up to the U.S. and the West due to its nascent democratic and economic reforms China’s strategic influence in Myanmar is considerable. India’s engagement with Myanmar and the western interest in Myanmar would contribute to moderating China’s influence. However, China due to its proximity and nature of relationship with the dispensation in Myanmar is unlikely to give free run to others. The multimodal linkages from Yunnan to Indian Ocean are critical to its energy security and economic growth.

It is quite evident that Tatmadaw would continue to remain the most important element for quite some time to come due to the nature of power distribution in Myanmar despite the baby steps towards democracy. Strengthening of defence relationship with Myanmar should proceed in congruence with political and economic engagement. Strategic imperatives can be underscored by the fact that India can ill afford to have another Pakistan on our East.

Wednesday, January 9, 2013

2013 To Be a Busy Year for Diplomacy

Kanwal Sibal 
(Member, VIF Advisory Board)

The challenges to Indian foreign policy in 2013 will be largely those of 2012, as the year that has ended neither substantially added to nor subtracted from the gamut of issues facing the country.

The India-US relationship has entered the less exciting phase of implementing the voluminous cooperation agenda covering more than a score of political and economic dialogues on counter-terrorism, Afghanistan, China, global commons, energy, agriculture, science and technology, IT, health, education and the like. The two sides will remain occupied with this ambitious agenda in 2013.

US and Russia

To create an enabling environment for increased economic exchanges, the US will continue to advocate more economic reforms, increased liberalization of the financial sector, improved regulatory framework and a more predictable tax code. Progress on these issues, of interest to all our economic partners and not the US alone, will be determined largely by the dynamics of our domestic debate, not external expectations, and will therefore be slow. With president Obama’s re-election India’s concerns about outsourcing and the hike in fees for H1B and L1 visas for its professionals will persist in 2013.

In the larger backdrop of the stalled recovery of the US economy, the Eurozone crisis and lower growth rates in India itself, India’s image, which lost lustre in 2012, will not recover it in 2013 either. For India to play a role in reforming the global economic and financial architecture, geting back to the trajectory of 8 to 9% growth is required, but this is unlikely to be achieved soon.

This has a bearing on foreign policy as India has gathered external strength from its high growth rates and the rising attractiveness of its market. While the medium to longer term outlook on India remains positive, in the shorter term declining growth rates, coupled with poor governance, affect India’s image as an investment destination and weakens its hand in international dealings.

Beyond this, our western partners, especially the US, feel stultified by the lack of capacity on our side to handle our expanded engagement with them. India’s bureaucratic paraphernalia is seen as inadequate for the global role the country seeks. The problem is linked to the larger issue of improved governance and will not be remedied in 2013.

Our relations with Russia need more economic content, especially in the energy field. Some wrinkles have appeared in the relationship with Russia seeing its flagship investment in India’s telecom sector being jeopardized by the Supreme Court’s 2G judgment, some defence contracts being lost, nuclear cooperation has stalled and India is perceived to be tiliting towards the US. President Putin’s visit in December 2012 was an occasion to remove misapprehensions. Russia remains important for a better balance in global affairs, apart from providing a balance in India’s own foreign policy. 2013 should see mutual efforts to impart more dynamism to the bilateral relationship.

China

China continues to present a very complicated challenge, with our economic relationship expanding phenomenonally and the two finding common ground on climate change and WTO issues, even as China’s provocations on territorial issues have not ceased. India should find a way to respond firmly to Chinese needling while pragmatically exploring a better relationship.

This challenge will go well beyond 2013 as the new Chinese leadership is hardly likely to change course if its position on sovereignty over the South China Sea is any indicator. India should set the tone of exchanges with the new leadership more confidently at the earliest stages. As part of this India needs to intelligently leverage US’s pivot towards Asia to its advantage without losing its capacity to act autonomously.

The strategic impact of the India-US civilian nuclear deal and the subsequent NSG waiver for India has not been matched by commercial results. The main obstacle has been our nuclear liability act as US companies are opposed to accepting any supplier liability. The French are willing to work within the rules framed under our liability law. The Russians want Kudankulam 3 and 4 to be exempted from this law as the intergovernmental agreement on them preceded it. The issue has been further complicated by the Fukushima disaster that has fuelled the public agitation against the commissioning of Kudankulam 1and 2. We should try to finalize the agreement on Kudankulam 3 and 4 in 2013 and make some progress with France in the wake of president Hollande’s visit to india in February this year. Canada and Australia have been successfully engaged on nuclear matters by us. A nuclear agreement with Japan, with Shinzo Abe back in power, should be slated as an objective in 2013.

Other issues

The issue of terrorism will haunt India in 2013 even if no major terrorist attack has occurred in 2012. With the spread of terrorism in Pakistan, the source of jihadi attacks against us, our vulnerability has not ended. So long as religious extremism and accompanying terrorism are not controlled in our region, India remains under threat. The prospect of the Taliban sharing power in Afghanistan with Pakistan’s facilitatory role, as is being currently attempted by the west, will be to India’s discomfiture. Indian diplomacy will have to deal with this challenge in 2013. We will also need to find a balance between preserving our ties with Iran and adjusting to US policy of squeeezing it with sanctions and threats of military action, a prospect that would severely damage India’s multi-fold interests in the Gulf region.

With instability in Nepal, defiance in the Maldives, prevarication in Sri Lanka on the Tamilian issue, inability to deliver on Teesta to Bangladesh, monitoring Chinese moves in Bhutan and boosting our Look East policy after the recent India-Asean summit in New Delhi, 2013 will keep India’s diplomacy rather busy.

Friday, December 14, 2012

Obama's visit to Myanmar: Implications for India


President Barack Obama’s visit to Myanmar last month was recognition of measures taken by the current regime towards opening up of Myanmar. The visit has largely been viewed as a part of the Asia Pacific ‘pivot’ announced by the US President in November, 2011. Further, the US was also aware of significant inroads being made by the European countries particularly Germany, UK and France in Myanmar and therefore, did not want to be left behind especially in the era of economic downturn

The visit took place despite the fact there was a lack of consensus in Washington on the Myanmar policy with resistance from human rights groups as well as from nuclear non proliferation lobby given the revelations of North Korea supplying some missile related material to Myanmar.

Political Gains

From the political perspective the visit has had a significant impact. Firstly, this has reinforced the commitment of President Thein Sein and the reformers who are flagging the benefits that have been received post opening up of polity and economy. The government was quick to release another set of political activists prior to the visit; such tools may be used again for greater concessions from the US and the West.

Secondly, the separate meetings that President Obama had with President Thein Sein, Aung Suu Kyi as well as the parliament speaker U Swe Mann is indicative of the broad based approach that the US is following to support the reforms.

A major advantage gained in Myanmar was for civil rights groups, political activists and human rights agencies given that the space for information and activism has considerably opened up by the Obama visit.

From Indian perspective, there is a hope that the course of reforms would be progressive even though they may occur at a relatively gradual pace. There is a general belief that the core of resistance from the military is likely to continue and they need to be pushed by the international community in the right direction. India has continued with a broad based and balanced relationship with political leadership as was evident from the highly successful visit of Aung Suu Kyi to the country in November. The military in Myanmar was also engaged through the visit of the Chairman Chiefs of Staff Committee Air Chief Marshal Norman Browne to Myanmar in November.

Moderating the Chinese Influence

Myanmar’s recent political and economic reforms seem to have been driven by Naypyidaw’s desire to reduce its overdependence on China.

With the U.S. and the Western nations engaging Myanmar, the strong influence of China in Myanmar is likely to be impacted. Due to China’s imposing presence and its exploitation of Myanmar’s resources against the popular will there has been considerable public opposition to the Chinese projects. Last year, construction of Myitstone dam was suspended by the President, Thein Sein. The opposition against the project brought together conservationists, environmentalists, Kachin activists and the political opposition. Popular opinion has been building up against some of the other Chinese sponsored projects in Myanmar. Recently, there have been protests against a copper mining project in Monywa, Sagaing Division, jointly undertaken by China and a military sponsored local company. An enquiry commission headed by Suu Kyi has been appointed to investigate the issue.
China’s larger interests are likely to be certainly affected, but to what degree and extent is not clear so far. Firstly, China may lose its sole beneficiary and benefactor role but only to become the most preferred one. The subsequent developments would also be dictated by what stand the next governing duo in China, Xi-Le take to ensure primacy in Myanmar.

Meanwhile, Myanmar’s leadership has been attempting to balance its emerging relationship with the U.S. and China. President Thein Sein visited a trade fair in China in September and Soe Win, the Deputy Commander of the Burmese army headed a military delegation to Beijing for strengthening military and cultural ties before the Obama visit.

Secondly, the links between Yunnan province of China and Myanmar are well established and are thus likely to be sustained.

Thirdly, the U.S. has not lifted sanctions on trade of jade and related items, a crucial component of trade with China; thus trade relations with Yunnan/China are not likely to be impacted.

Fourthly, entry of major global energy players in Myanmar may be a setback for Chinese companies as increased competition would prevent greater off-takes for Beijing.

In addition, the US offer to the Myanmar army to participate in the Cobra Gold Joint exercises in Thailand in 2013 is also being seen with much wariness in Beijing. These exercises have now expanded from a bilateral U.S.-Thai format to a multilateral one with many American allies such as South Korea participating in the same.

On the whole however Beijing is likely to remain wary of the US attempting to make an imprint in its backyard and in other parts of South East Asia. Additionally, increased engagement with the U.S. and the west could also be useful to Myanmar to extract more developmental and economic aid as well as trade and economic concessions from China. Beijing would have to tread cautiously to keep Myanmar under its sphere of influence by adjusting its policies to suit the new circumstances.
Security Concerns
From the security point of view, Indian concerns are mainly related to firstly the influence of PLA through military largesse to the Tatmadaw (Myanmar armed forces) and sanctuaries offered to the North East militant groups in Myanmar and the ongoing conflict in Kachin areas. The U.S. President was non prescriptive during his visit on the ethnic issues and only highlighted challenges faced by the country. India needs to further strengthen its own equation with Myanmar government in order to curtail anti India activities by some of the Myanmar based rebel groups.

In the military field, India is ramping up cooperation with high level visits by the Defence Minister Mr A K Antony in January, 2013 and the Chairman Chiefs of Staff Committee and Chief of the Air Staff, ACM Norman Browne who visited Myanmar last month. Myanmar army is looking for hardware and there is some scope for India to provide items such as transport aircraft, helicopters and so on as well as expand training and capacity building.

Balancing of Chinese influence off the Myanmar seaboard with the entry of the U.S. is also likely and could be seen to be beneficial from the perspective of maritime interests of the country. However, this will continue to be a contested zone in the long term as China is unlikely to give a free run to others in the area which it sees as critical to its energy security.

Opening of the Myanmar economy presents a good opportunity for India to strengthen its trade and economic relations besides increasing venues for Indian investments in resource rich Myanmar. Hopefully, Myanmar’s engagement with the west would lead to some progressive reforms in governance supported by the US and Western institutions including the non government sector, aid agencies and business. Entry of international agencies such as World Bank, IMF, ADB and others is likely to lead to expansion of the economy particularly in terms of effective regulations for investment and conduct of business. Moreover, unlocking of Myanmar’s resources particularly oil and gas could be seen as beneficial to India given its dependence on West Asia so far. These factors indicate that support to transformation by Mr. Obama during the visit may provide an indirect impetus to Indian plans of economic engagement in Myanmar particularly to boost bilateral trade planned to increase from the paltry US$ 1070.88 million in 2010-11 to over USD 5 billion by 2015.

Impact on India's Look East Policy

Myanmar being the land route to South East Asia is the lynchpin of India’s Look East Policy (LEP). In addition, the Chennai-Dawei sea corridor is seen to be another growth highway for the LEP. With the opening of Myanmar economy the LEP is likely to get a boost. This apart the overall development of infrastructure including the railway and road network, ports and transportation is seen to be beneficial for the LEP and the prospects are likely to be enhanced. In this it is India’s own inefficiencies in project implementation that is of concern for New Delhi and how it will be able to get its act together remains to be seen?

There is a need to explore the scope for joint India China infrastructure projects in Myanmar to include oil and gas, transportation both road and rail and construction of dams. Indian and Chinese companies are presently engaged in the Shwe gas and pipeline projects which may provide a model for the future. GAIL and ONGC Videsh Ltd. own a 30% share in the A1 fields and intend to acquire a share in the A 2 fields which could be jointly exploited along with other majors such as Daewoo Corporation.

India also has a large number of projects in the pipeline in Myanmar many of which are languishing due to lack of impetus and tardy implementation. These include upgradation and resurfacing of Tamu-Kalewa-Kalemyo road; construction and upgradation of the Rhi-Tiddim Road; Kaladan Multimodal Transport Project and high speed data link in 32 Myanmar cities. ONGC Videsh Ltd. (OVL), GAIL and ESSAR are also working in the energy sector in Myanmar. M/s RITES is developing the rail transportation system and is supplying railway coaches and locos. Tamanthi and Shwezaye Hydro-Electric Power projects are also in the pipeline.
How much progress can be achieved in this direction will depend on the trust that each country, India and China can repose on each other and a favourable equation that can be worked out by the enterprises in what Chinese term as, “win-win,” agreements.

India- West joint projects also have major prospects in the fields indicated above. Some initiative will have to be taken by the Indian industry as well as such bodies as the CII which has a programme of cooperation Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). Indo-US/EU Business Councils and similar organizations may act as a catalyst for this purpose. A joint initiative will pay rich dividends in this direction.
Further, with Myanmar slated to chair the ASEAN Summit of 2014 it would also make efforts to move positively on the path of democracy and further political and economic reforms.

Finally, the domestic reform in Myanmar and its reconciliation with the U.S. and the West is expected to open up many economic and strategic opportunities for Myanmar. India is well positioned to cement its growing economic and strategic engagement with Myanmar both on bilateral and multilateral basis. Myanmar’s steps in balancing its relationship with China need to be supported. For India, Myanmar will remain a strategic land bridge for engagement of South East Asian nations. Improving regional connectivity and integration of regional economies would serve the interests of both Myanmar and India well.

Monday, November 19, 2012

India and The South Asian Neighbourhood



Kanwal Sibal 
(Advisory Board, VIF)


India’s relations with its neighbours need to be analysed frankly and unsentimentally, without recourse to the usual platitudes when pronouncing on the subject. It is fashionable to assume that there is some larger moral imperative that governs relations between neighbours, with the bigger country obliged to show a level of generosity and tolerance towards a smaller neighbour that would not be applicable to attitudes and policies towards a more distant country. The compulsions of “good neighbourliness” between countries are, however, not the same as between neighbours in the same building or the same street. In the case of the latter the rights, obligations and duties of citizenship are the same, all live under the authority of the same state and conflicts are mediated through the instruments of law. We should not commit the mistake of transposing to international relations the codes of conduct between citizens of the same country. The commandment “Love thy neighbour as thyself” elicits no obedience from the chancelleries of the world.

Before talking of India and its neighbours we should have a clearer idea of what, in India’s eyes, constitutes its neighbourhood. Should we look at India’s neighbourhood strategically or geographically? If the first, then a case can be made out that India’s neighbourhood encompasses the entire region from the Straits of Hormuz to the Straits of Malacca. This is India’s security parameter. Developments in this region have a major impact on India. On the western side, six million Indians are employed in the Gulf, sending back almost $35 billion as remittances. This region is the largest supplier of oil and gas to India. This area is the heart of Islam and influences and ideologies emanating from there impact on our immediate external environment and indeed, to an extent, the domestic scene. In any case, if India had not been divided in 1947, its western frontier would have extended to the Persian Gulf.

In the east, India’s possession of the Andaman and Nicobar islands stretches our frontiers to the other choke-point, the Malacca Straits. The Bay of Bengal has Bangladesh, Myanmar and Thailand as littoral countries. This stretch of the sea is our link to Southeast Asia and beyond. For buttressing our Look East policy this area is of vital importance. Apart from India forging bilateral ties with these countries, the security of the sea lanes of communication in an area where the only regional blue water navy is Indian devolves some special responsibilities on India.

If geography alone were to determine who our neighbours are, then Pakistan, Nepal, Bhutan, Bangladesh, Sri Lanka and Maldives constitute the core of our neighbourhood. Myanmar is a contiguous neighbour, but as we have conditioned ourselves over the years to view essentially the SAARC countries as our neighbours, Myanmar is lost sight of, despite its critical geograhical location adjacent to our north-eastern states. Myanmar, which applied for full membership in May 2008, has yet to consummate it. However, with the rapid changes in the country, its opening up and the progressive removal of sanctions it has been subject to, its profile as India’s neighbour will keep rising.

Aghanistan may not be a direct geographic neighbour today, but given the fact that we consider Pakistan’s occupation of the northern areas in Jammu and Kashmir as illegal, we can in a sense treat it as one. In any case, with the inclusion of Afghanistan as a full member of SAARC, the political case for treating Afghanistan as an integral part of our neighbourhood stands reinforced.

With China’s occupation of Tibet, that country has become our direct neighbour. The outstanding border issue between India and China constitutes a major Indian foreign policy problem, colouring our relationship with the world’s foremost rising power. Moreover, in India’s perception, China has adversely influenced India’s relations with its South Asian neighbours. China therefore qualifies as India’s most formidable neighbour, affecting India’s role not only in the South Asian region, but in Asia as a whole, and even at the global level.

The management of relations with neighbours is always a declared priority of any country’s foreign policy. The assumption is that a stable neighbourhood strengthens a country’s foreign policy posture, whereas an unstable and troubled neighbourhood saps its ability to act fully effectively on the international stage. The credibility of a country’s regional and global posture, it is believed, is also undermined if it is seen as embroiled in disputes and conflicts with neighbours. The accepted view is that the time and energy spent in controlling events in the immediate neighbourhood is at the cost of pursuing wider interests at the regional and global level.

In actual fact, most countries have very problematic relations with neighbours, and yet many are not held back because of this. Historically, Britain rose to global power status despite almost ceaseless conflicts with its neighbours. France became a world power despite being embroiled in wars with neighbours. China has huge problems with its neighbours, without this affecting its inexorable rise today as a global power. Turkey has problems with virtually all its neighbours, without this materially affecting its rise to regional power status. It is, therefore, open to question whether a stable neighbourhood is a pre-requisite for a country’s rise to regional or global status. There are many other factors at play that allow countries to rise and flourish even if their neighbourhood is not peaceful.

While in theory the need to have a peaceful, stable and friendly neighbourhood may appear self-evident, what would that mean in practical terms? Can one have good relations with neighbours simply because that would be desirable in itself? Can one build such relations unilaterally? To what extent should one be willing to make concessions? Should one look for reciprocity or not? How far is it the responsibility primarily of the bigger country to make the requisite effort in forging positive relationships? Is a smaller country always right in its demands? Can a country demand or plead for extra consideration simply because it is smaller? Should it on that basis be entitled to a more sensitive treatment of its fears, vulnerabilities and even paranoia?

These are not the only issues that arise in any examination of the conditions in which neighbouring countries relate to each other. What about the role of third parties, of external actors? During the Cold War period, the competing powers had an incentive to extend their political and ideological reach to all corners of the globe. In that process relations between neighbours, who were pulled at times in different ideological directions, were distorted, adding to already exisiting tensions or misunderstandings. Today, in the age of globalisation, different pulls and pressures operate, and these could be helpful or harmful depending on circumstances.

The short point is that countries cannot always act in their neighbourhood as they please depending on local advantages in power equations. Outside forces will be there to provide a counterbalance, either because a particular country might want to bring an external power into the neighbourhood to reduce the weight of a perceived regional hegemon, or external powers themselves, pushed by balance of power considerations, or policies of containment, may intrude into the region on their own and manipulate their local partners for larger strategic purposes.

Sections of Indian public opinion are acutely conscious of India’s failure to stabilize its own neighbourhood. It is argued that India as the biggest country in the region has the primary responsibility for managing the regional environment. Often India is criticized for not being sufficiently generous to its neighbours, of hesitating to make unilateral concessions to them, which it is believed it can well afford to do. Such concessions are advocated especially on the economic side, the argument being that India as a huge economy can easily absorb the limited sacrifice that is expected of it, and in the process can attach the neighbouring economies to itself in a mutually beneficial manner. The stakes which develop because of this interdependence would theoretically make it difficult for other governments to pursue adversarial policies beyond a certain point. Poor border management, failure to create proper border posts and customs infrastructure is viewed as another example of insensitivity to the need to facilitate relations with neighbours.

Such criticism overlooks many complexities. For one, India’s capacity to order its neighbourhood in a manner congenial to its requirements is exaggerated. India did intervene in Sri Lanka in agreement with its government, but the experience left it chastened to the point that it rejected an intrusive role in Sri Lanka later as the ethnic conflict grew, even when other countries prompted it to take greater responsibility for steering the course of events there in the right direction. It abdicated playing the central role in the developments leading to the defeat of the LTTE, and it is to be seen how much constructive influence it can bring to bear in ensuring that the present opportunity to settle the Tamil question equitably is not lost. India’s intervention in the Maldives at the request of its government was more successful, but this cannot be construed as an attempt by India to shape its immediate environment to suit its needs, or a model for future interventions.
India has been sensitive in handling the issue of democracy in its neighbourhood. Even as western democracies seek to impose democratic values on others and use instruments of moral reprobation and boycotts to coerce select non-democratic countries to reform their political systems, India has abjured such thinking. Its basic approach is to do business with whichever government is in power. Even as there is awareness that a truly democratic system in Pakistan, that limits the power of both the armed forces and extremist groups, would be beneficial to India-Pakistan ties, India has not sought to interfere in Pakistan’s internal politics. On the contrary, it has willingly done serious business with Pakistan’s military regimes, especially that of General Musharraf. Likewise in Bangladesh, India has never rejected serious engagement with the military regimes there. In the case of Myanmar, even at the cost of earning some diplomatic flak, India has sought to build close ties with it irrespective of the country’s regime for reasons of overriding national interest. India will of course abide by legalities and UN sanctions against any country for transgression of norms, but participating in a crusade for democracy because of a sense of superior political values is not part of India’s thinking about its neighbourhood and beyond. For India this is practical politics, shorn of the hypocrisy of those who promote democracy selectively and at lowest political and business cost to themselves.

India, despite its size and power, is, ironically, the country most targetted by terrorism from its own neighbourhood. Although terrorism is now considered a global threat and the consensus that it should be fought collectively by the international community has been largely forged, India is still threatened by this menace as Pakistan, where the epicenter of terrorism lies, has not yet been summoned by the international community, acting through the UN, to eradicate it. The US and its allies want Pakistan to control terrorist activity directed at them in Afghanistan, and deal as well with domestic terrorism that threatens to impair Pakistan’s capacity to support them. Terrorism directed at India remains a secondary western concern. Even US pressure, however, has not compelled Pakistan to break its links with the Haqqani group. The rise of religious extremism within Pakistan and the surrounding Islamic world, extending now to North Africa, is creating conditions for more jihadi violence. Pakistan’s failure to take any substantive step in the last four years to try those responsible for the Mumbai terrorist attack and the unwillingness of its leadership to accept that terrorism remains a crucial outstanding issue in India-Pakistan relations indicates that the nexus between the jihadi groups and political and military power centres in Pakistan will not be easily broken. India by itself lacks the capacity to coerce Pakistan to abjure terrorism as an instrument of state policy, especially as Pakistan now has the nuclear cover for its lawless activities. Pakistan sees the extremist religious forces that resort to terrorism as allies against India and potentially in the takeover of Afghanistan after the western forces depart.

Within the SAARC region, apart from the recognition by the Karzai government of Pakistan’s sponsorship of terror, the other countries keep their political distance from the problem. Each of them, barring Bhutan, has interest in maintaining good ties with Pakistan for a mixture of motives that include leveraging Pakistan’s hostility towards India to their own advantage, combining forces against the threat of Indian domination, putting constraints on India’s freedom of action within the region, not to mention the need to politically manage their own Muslim communities. Pakistan of course has always had interest in undermining India’s leadership role in South Asia. SAARC conventions on combatting terrorism have little meaning given Pakistan’s complicity with terrorist groups. Pakistan in fact uses Nepal and Bangladesh as bases for infiltrating terrorists into India, or in the case of Bangladesh, using local extremists for targetting India, though with Sheikh Hasina’s government in Bangladesh this activity has been greatly curtailed.
The debate about unilateral concessions versus reciprocity is somewhat besides the point in international relations. A big country has no less responsibility than a small one to legitimately maximize its own interests. No country can sustain a policy of making unilateral concessions. If the logic is accepted that it is for the bigger country to make concessions, then it could be argued that the US should base its international policies on making unilateral concessions to all. And so should China. India has tried a policy of unilateral concessions in the late 1980s and the early 1990s, but the results have been meagre. It is ultimately a question of pragmatism. If making a concession in one area can yield a return in another area, it should be made. In any case, reciprocity need not be confined to balanced exchanges in specified areas. If Nepal, for instance, had been more sensitive to India’s security interests because of the open border, India could have been generous in areas of Nepal’s interest. If Bangladesh, as is the case now, is more cooperative in dealing with anti-Indian insurgents seeking shelter on its territory, it would certainly make India more receptive to some of its demands on the commercial side. In fact this has already happened. What does India do in a situation in which Nepal has for years blocked any progress in implementing joint water resources projects, or Bangladesh has until now even refused to talk about according transit rights through its territory to north-eastern India or make a joint effort to promote energy security along with Myanmar?

Rather than look at such issues within the framework of bilateral relations between India and its neighbours, they should be looked at within the framework of SAARC. The problem of unilateralism or reciprocity disappears once the SAARC countries as a whole agree on terms of trade and economic exchanges. Unfortunately, Pakistan right from the start worked to limit progress within SAARC so that its own policy of linking trade exchanges with India to a resolution of the Kashmir problem did not get undermined. For this reason, it did not adhere to its obligations to India under SAFTA. Indeed, because of Pakistan’s obstructive policies economic integration in the SAARC area is poor. This situation is beginning to change with fruitful talks between India and Pakistan to enhance trade with each other. Pakistan has agreed in principle agreed to grant by the year-end MFN treatment that it has long denied to India. With the just concluded Commerce Secretary level talks substantive steps on the trade and investment front have been listed in the joint statement. This change in Pakistan’s attitude has occurred not because of India’s prodding but because of an internal assessment Pakistan has itself made on the advantages to it from expanded economic ties with India, given the dire economic straits Pakistan is in. Pakistan has not yet felt the same compulsions on terrorism and other differences with India and hence it clings still to its negative political postures. Now that Afghanistan has joined SAARC, common sense would dictate that Pakistan accord transit rights through its territory to facilitate Afghanistan’s trade with India as part of the process of stabilizing Afghanistan and giving its people economic opportunities so that they can, amongst other benefits, expand their legitimate economy and conditions are created for the reduction in size of the illegitimate drug based economy.

India, of course, physically dominates its neighbourhood. Most of its neighbours are very small in comparison, geographically, demographically and economically. Even Pakistan, the second largest country in South Asia, is less than 15% of India’s size demographically and economically and is not too much more geographically. Beyond the disparity in size, India’s neighbours share with it strong civilizational, cultural, linguistic and ethnic ties that are deeply rooted in history. Normally these bonds should have brought the countries of the India sub-continent closer together, being theoretically the building blocks of an enduring people to people relationship. But this has not happened for various reasons. For one, India’s overwhelming civilizational influence makes the neighbouring countries feel insecure in their separate identities. As identity is a core constituent of a sense of nationhood, these countries want to foster it by consciously asserting their separate identity.

The ethnic links, such as those of the Madhesis in the Terai in southern Nepal and the Sri Lankan Tamils with the Tamils in Tamilnadu, instead of being a human link between India and these countries, as is the case with the Indian diaspora abroad and their country of origin, is a source of tensions. These sections of the population are not as yet fully integrated into the societies in which they live and suffer from disabilities. They are either suspected for their extra-territorial loyalties or are seen as instruments of Indian influence, or the sympathy and support they receive from groups in India create an atmosphere of distrust in bilateral relations.

From the viewpoint of India’s South Asian neighbours realpolitik would demand that they try to balance India’s weight by bringing into play external powers. This with the objective of giving themselves greater margin of manoeuvre vis-a-vis India, extorting more concessions from it than would be the case otherwise, not to mention making themselves more eligible for economic and military assistance from powers wanting to check-mate India’s rise or imposing costs on India for not following policies congenial to their interests.

Pakistan has, of course, in its obsessive pursuit of “parity” with India and a pathological refusal to accept any status of inferiority vis-a-vis it, has been most instrumental in facilitating the entry of outside powers in the sub-continent. Today China is Pakistan’s biggest defence supplier. The US too has not stopped supplying advanced arms to Pakistan as part of its policy to obtain the cooperation of the country’s military to help combat the insurgency in Afghanistan. With the US more and more cognizant of Pakistan’s duplicity on the terrorism front, tensions in US-Pakistan relations are palpable and Pakistan’s support for the US in Afghanistan now a question mark.

The US policy of hyphenating India and Pakistan was decisively abandoned by the Bush Administration in its approach to the nuclear equation in South Asia, though the US thought it necessary to balance its leaning towards India by elevating Pakistan to the status of a “non-NATO ally”. With the change of Administration in the US and the Afghanistan morass in which it is caught, Pakistan had found more room to leverage US dependence on it for its operations in Afghanistan to question the legitimacy of India’s presence and policies in Afghanistan, not to mention press it to extract some concessions from India on making progress on outstanding India-Pakistan issues without Pakistan being required to move credibly on the issue of terrorism directed against India from its soil. This has now changed, with the US openly supporting a stronger Indian political and economic role in Afghanistan, as well as in military training. India was the first country with which Afghanistan signed a Strategic Partnership Agreement. In Nepal, Bangladesh and Sri Lanka, Indian and US policies have converged far more than was the case in the past, with the result that the governments of these countries are no longer able to leverage India- US differences as before to counter the Indian weight.

China, with its increased political, economic and military weight, continues its policies to counter what one of its commentators described as India’s hegemonic policies vis-a-vis its neighbours. It continues to deepen its strategic relations with Pakistan, with current activity in the nuclear field, major road and power projects in POK and the development of Gwadar port. In Afghanistan China is investing heavily in the mineral sector. Geopolitics seem to dictate close China-Pakistan cooperation in Afghanistan, despite current uncertainties about Pakistan’s ability to contain its own internal failures.

In Nepal, China is becoming more assertive in demanding that it be given equal treatment with India, one example of which is to ask for its Friendship Treaty with Nepal to match the one with India. With the Maoists now a powerful political force in Nepal, and given their ideological compulsion to be seen as drawing Nepal closer to China, coupled with their periodic rantings calculated to inflame public opinion against India, the political terrain has become more favourable for China to expand and deepen its presence and influence in Nepal. This can only make India’s task in handling Nepal more difficult.

China’s position in Bangladesh is entrenched. Even the friendly government of Sheikh Hasina would see it in its interest to maintain close ties with China for the many benefits it can derive from that, including giving India an incentive to woo Bangladesh more. China has earned the gratitude of the Sri Lankan government by supplying it arms that helped in defeating the LTTE militarily. Sri Lanka, along with Myanmar, Bangladesh and Maldives, are, in India’s eyes, targets for the naval ambitions of China in the Indian Ocean area to protect its vital lines of communication through these waters. The so-called “string of pearls” strategy involving construction of new port facilities in these countries may have commercial goals in view in the short term but is likely to have military goals in the longer term perspective, To promote these objectives China is bound to step up further its engagement with these countries, especially with increasing material means at its disposal, posing further challenges to India’s equities in its neighbourhood. India follows closely China’s initiatives in Sri Lanka on the political, economic and military front, including the visit in September of the Chinese Defence Minister to Sri Lanka, the first such visit ever. He seems to have emphasized that the Chinese Army’s efforts in conducting friendly exchanges and cooperation with its counterparts in the region are intended for maintaining regional security and stability and do not target any third party.

China has, of course, every right to take dispositions in the Indian Ocean area to protect its trade and energy flows. The countries with which China is cooperating are independent, sovereign countries and have economic and investment plans of their own to which China with its vast financial resources can contribute. Ultimately, for India’s neighbours, it is a question of political judgment how far they should be cognizant of India’s concerns and how to balance sometimes different pulls so that they do not become platforms for tensions because of the divergent interests of external partners.

One can broadly conclude that India will not be able to shape its immediate environment optimally for itself in the foreseeable future. Unless Pakistan is ready to genuinely end its politics of confrontation with India, an integral part of which is the over-assertion of its Islamic identity, its propagation of the jihadi mentality, its nurturing of extremist religious groups involved in terrorism, and the political domination of the military in the governance of the country, the SAARC region will remain under stress.

Afghanistan presents potential problems of a grave nature. If the extremist religious forces ultimately win there, the strategic space for these obscurantist elements will expand enormously, with the risk of a seriously adverse fall-out in the region that has either other Islamic countries or large populations of Muslim faith living in non-Muslim countries. A triumphant radical Islamic ideology can be destabilizing for the religiously composite societies of South Asia. Pressure on India from these forces would grow. The increasing Talibanisation of Pakistan would be most deleterious for the South Asian environment.

The prospects for a border settlement with China remain distant. China has, on the contrary, added to tensions by making aggressive claims on Arunachal Pradesh. India has been compelled to begin upgrading its military infrastructure in the north in the face of mounting Chinese intransigence on the border issue. With Chinese actions in the East China Sea and South China Sea, India has to be even more on the alert. The tactical alliance between India and China on climate change and WTO issues should not obscure the deeper sources of India-China problems. It must be said though that both sides have managed to prevent their differences from erupting into military confrontation. No bullet has actually been fired on the India-China border since 1967. China has become India’s biggest trade partner in goods, which is a remarkable development.

The political drift in Nepal portends continuing instability there with all its deleterious consequences for the economy. India has to play its role without getting embroiled in domestic controversies to the extent possible, though traditionally anti-Indian forces there would continue to propagate the canard of overbearing Indian interference in Nepal’s internal affairs. With the Sheikh Hasina government in power in Bangladesh India’s relations with that country seem set to improve. Bangladesh is showing an unprecedented willingness to deny safe havens to anti-India insurgents and discuss transit issues. If it opens up doors for Indian investments in the country the economic issues in the bilateral relationship can be addressed to mutual advantage. Bangladesh can play a positive part in linking the eastern region of South Asia to Myanmar, Thailand and beyond. A solution has to be found, however, to the problem of illegal Bangladeshi migration into India.
The commencement of a dialogue between the US and the Myanmar junta validates India’s policy towards that country. If the US has woken up to the danger of leaving China to consolidate its hold over Myanmar, it is all to the good. Here again, India cannot prevent Myanmar from developing close links with its neighbour China. How far it should move in that direction and lose its capacity to manoeuvre is for the Myanmar government to decide. So long as India-China relations are not normalized, India will always have concerns about strategic encirclement.

India’s very cordial relations with the Maldives need to be nurtured, especial in view of the attention it is receiving from China at the highest level. The spreading piracy in the South Eastern Indian Ocean also makes Maldives more central in combatting this menace. Maldives is gripped with domestic political turmoil, placing India in a delicate position of being invited to intervene in favour of a duly elected government and hesitating to get embroiled in internal political rivalries.

Bhutan has been the only real success story in terms of India’s relations with its neighbours. Bhutan has border differences with China. It has kept its distance from Pakistan and the great powers as well, giving them little scope for interfering in its relations with India. This underscores the point that good relations between India and its neighbours depend not only on wise policies on our side, but, equally, the pursuit of wise policies by our partners.
Our relationship with Sri Lanka has been burdened in recent years by the Tamilian issue. We have handled it as well as we could from at our end. Despite the sensitivities in some quarters in Tamilnadu, we have supported Sri Lanka on the issue of terrorism. We have been both principled and practical.
As a neighbouring country we cannot ignore what is happening in Sri Lanka if developments here have a political impact in India. On the one hand, India must not intervene in Sri Lanka’s internal affairs; on the other, if they impact on India’s internal affairs, a case for a dialogue opens up with a view to helping find constructive solutions.

The nearly three-decade long armed conflict between Sri Lankan forces and the LTTE came to an end in May 2009. The armed conflict created a major humanitarian challenge, with nearly 300,000 Tamil civilians housed in camps for Internally Displaced Persons (IDPs). India has put in place a robust programme of assistance to help these IDPs return to normal life as quickly as possible.

India does reiterate at the highest levels the need for national reconciliation through a political settlement of the ethnic issue. The element of time is important. With three and a half years having elapsed since the military conflict issues got resolved, a solution to the political issues remains pending. Whether the level of statesmanship required to deal with complex issues in a longer term perspective will be forthcoming or whether shorter term calculations of political advantage will dictate policy remains to be seen. Democratic governments are always generous with their own people, and no polity can be stable without mutual trust between its various sections. This is the challenge Sri Lanka faces.