[yt_dropcap type=”square” font=”” size=”14″ color=”#000″ background=”#fff” ] W [/yt_dropcap] hat is the meaning of REALPOLITIK? The Oxford Dictionary defines it as a system of politics or principles based on practical rather than moral or ideological considerations. Rulers, diplomats and intellectuals/scholars who have spoken about or/and practiced it include Thucydides, Kautilya, Machiavelli, Thomas Hobbes, Otto von Bismark, Henry Kissinger and many more.
The list just gets too long. If the list itself is this long, then one can imagine what it would take to read the works/lives of all these people and understand them.
However, nature has been kind. The world churns up circumstances from which some realpolitik lessons can be extracted. Of late, by studying simply the political lives of two politicians namely Donald Trump and Sasikala Natarajan, a few lessons can be learnt. Before that a brief introduction about the two personalities is necessary. For Sasikala Natarajan, it might be valid. However, if someone thinks that it is difficult to believe that someone would not have heard of Donald Trump, then he/she can be looked upon with empathy!!! Still an introduction ought to be given.
Donald Trump was the fourth child of New York real estate tycoon Fred Trump. While assisting his father, he realised that there were aspects that he did not like about his father’s job like rent-collection, physical labour. It was at this point of time that he decided to get involved in real-estate, but at a much higher scale than his father had ever been. He studied at the Wharton School at the University of Pennsylvania. Gradually, he became a real estate tycoon and his assets include the famous Trump towers on Manhattan’s fifth Avenue, 555 California Street (which is San Fransisco’s second tallest building), Trump Building which is a 71 storey skyscraper in New York etc. After a failed attempt to run for the US presidency for the 2000 elections, on June 16 2015, Donald J Trump announced that he would be running for the Presidency on a Republican ticket. The rest, as they say, is history.
Sasikala Natarajan, on the other hand, hails from Mannargudi which is a town in Tiruvarur district of the South Indian state of Tamil Nadu. She was a video shop owner in the 1980s. She was introduced to Jayalalitha by her husband Natarajan through Chandralekha, the then District Collector of Cuddalore. Immediately she caught the attention of Jayalalitha. Consequently, she moved in to the Jayalalitha residence at Poes Garden. She had been living with Jayalalitha ever since. When Jayalalitha first became the Chief Minister of Tamil Nadu in 1991, she ruled the roost from the background. Subsequently, this led to more controversies than rewards. After Jayalalitha passed away on December 5, she was instrumental in installing O Paneer Selvam (OPS) as the Chief Minister of the state.
Lesson # 1 – The perils of Secrecy
Donald Trump’s biggest asset, many believe, is he speaks his mind. He does not have one thing in the mind and speak an entirely different thing. That is the reason why even his objectionable remarks about Mexicans, Muslims, Women etc which would have been labelled ‘atrocious’ and the person would have been censured heavily were they uttered by any other person, were tolerated. In spite of these and many other highly controversial remarks, people voted for him. Many who voted for Trump believed that when compared to the Washington establishment which forever had masks up on their faces, Trump was a welcome change.
In contrast, Sasikala Natarajan is said to be extremely secretive. No one in the public domain has even heard her speak. However, she possessed an enormous clout in the party affairs of the AIADMK. Party men lined up in queues to meet her and get her support in order to get the election tickets. As a result of this secrecy, she found the going to be really tough. When Jayalalitha was admitted in the hospital, no proper updates were given about her health for most of the time. No videos or photographs were released which would have gone a long way in stabilising the chaos that prevailed. This might create some obstacles in her political career.
Hence Lesson # 1 – ‘It does not pay to be too secretive in politics’
Lesson # 2 – The three laws of earning money
Everyone wants to become rich. The only people who do not want to become rich are the people who are lying about it by saying that they are happily poor. There are three ways to earn money. The first law to make money is to flex the government rules and regulations and thus make/save the hard-earned buck. The second is to become utterly dishonest, corrupt and earn the money without caring about the means by which it is earned. Taking the example of Donald Trump, there are rumours that he has not paid taxes. Donald Trump has done nothing refute this. But there is also a theory that he might have taken advantage of tax-code provisions that allow him to report negative incomes. If he has done that, legal experts say that there is nothing illegal about that. But whether he has done that or not can only be known by looking at his income tax returns which he has not done till date.
About Sasikala, one of the cases that are still pending against her is the disproportionate assets case that took 18 years to complete. The contents of the case state that Jayalalitha, as Chief Minister between 1991 and 1996, acquired over Rs 63 crore in wealth disproportionate to her known sources of income. Sasikala and her family members Ilavarasi and Sudhakaran, were accused of being part of the conspiracy. While Jayalalitha has passed away, the law is very much applicable to the other three. The accusations against Sasikala belong to the second route to earn money.
Hence Lesson # 2 – ‘If you want to earn money, do it through the first law of earning money rather than the second law of earning money’
By the way, since the third law of earning money has not been mentioned, here it is ‘Stick to being honest and stay poor’. After all, honesty comes about only because one lacks the opportunity to be dishonest…..
Lesson # 3 – The speed of action
Trump’s pace in filling up his cabinet has been impressive. He made his first cabinet appointment Alabama Sen. Jeff Sessions for Attorney General on November 18, earlier than most recent ex-presidents. President Obama’s first pick was officially announced on November 24. Bill Clinton’s first appointment came 37 days later. According to a count by the Washington Post, since 1980, only two of the 70 cabinet announcements by five newly elected presidents had been made by November 17. Both these picks were by George H W Bush. Donald Trump has impressed many with his speed in filling up his cabinet till now.
Here Sasikala too comes up to the mark? When the news of Jayalalitha passing away at around 23.30 hrs was announced, Sasikala proved that she was an able mediator and ensured that a consensus was reached among all the Members of Legislative Assemblies (MLAs). Thus O Paneerselvam took oath as Chief Minister at around 01.15 hrs on December 6. She also ensured that by continuing the status quo in regards to the appointments of ministers, there was no scope for fresh rounds of confusion.
Thus comes Lesson # 3 – “At times, it is important to act quickly and decisively”
Can India Balance Between Beijing and Washington?
On October 10, 2018, a Senior Chinese Diplomat in India underscored the need for New Delhi and Beijing to work jointly, in order to counter the policy of trade protectionism, being promoted by US President, Donald Trump.
It would be pertinent to point out, that US had imposed tariffs estimated at 200 Billion USD in September 2018, Beijing imposed tariffs on 60 Billion USD of US imports as a retaliatory measure, and US threatened to impose further tariffs. Interestingly, US trade deficit vis-à-vis China reached 34.1 Billion USD for the month of September (in August 2018, it was 31 Billion USD). Critics of Trump point to this increasing trade deficit vis-à-vis China as a reiteration of the fact, that Trump’s economic policies are not working.
Ji Rong, Spokesperson of the Chinese Embassy in India said that tariffs will be detrimental for both India and China and given the fact that both are engines of economic growth it is important for both to work together.
The Chinese diplomat’s statement came at an interesting time. US President, Donald Trump on October 2, also referred to India as ‘tariff king’. Even though the India-US strategic relationship has witnessed a significant upswing, yet the US President has repeatedly referred to India imposing high tariffs on US exports to India (specifically Harley Davidson motorcyles).
It also came days after, after India signed a deal with Russia (October 5, 2018) for the purchase of 5 S-400 Air Defence system, during the visit of Russian President Vladimir Putin. The Chinese envoy’s statement also came days before India attended the China dominated Shanghai Cooperation Organization (SCO). Significantly, India and China also began a joint training programme for Afghan Diplomats on October 15, 2018 (which would last till October 26, 2018).
Trilateral cooperation between India, China and Afghanistan was one of the main thrust areas of the Wuhan Summit, between Chinese President, Xi Jinping, and Indian PM, Narendra Modi, and this is one of the key initiatives in this direction.
There are a number of factors, which have resulted in New Delhi and Beijing seeking to reset their relationship. The first is difference between New Delhi and Washington on economic ties between the former and Iran and Russia. Washington has given mixed signals with regard to granting India exemptions from Countering America Through Sanctions Act (CAATSA).
US ambiguity on providing waivers to India
While sections of the US establishment, especially Jim Mattis, Defence Secretary and Secretary of State, Michael Pompeo have been fervently backing a waiver to India, there are those who oppose any sort of waiver even to India. NSA John Bolton has been warning US allies like India, that there will be no exemption or waiver from US sanctions targeting Iran’s oil sector. On October 4th, Bolton while briefing the press said:
“This is not the Obama administration … is my message to them (the importers),
Trump himself has not been clear on providing India a waiver, when asked about this issue, he said India would know soon about the US decision (Trump has the authority to provide a Presidential waiver to India from the deal with Russia). A State Department Spokesperson also stated, that the US was carefully watching S-400 agreement with Russia, as well as India’s decision to import oil from Iran, and such steps were ‘not helpful’. With the US President being excessively transactionalist, it is tough to predict his final decision, and with growing differences between him and Mattis, one of the ardent advocates of waivers for India, it remains to be seen as to which camp will prevail.
US protectionism and New Delhi’s discomfort
Differences between Washington and New Delhi don’t end on the latter’s economic ties with Tehran and Moscow. India has on numerous occasions stated, that while strengthening strategic ties with the US, it was concerned about the Trump administration’s economic policies. This was clearly evident from the Indian Foreign Minister Sushma Swaraj’s speech at the SCO Meet (October 12, 2018) held at Dushanbe, Tajikistan where she pitched for an open global trading order. Said Swaraj:
“We have all benefited from globalization. We must further develop our trade and investment cooperation. We support an open, stable international trade regime based on centrality of the World Trade Organization,”
Even if one to look beyond Trump’s unpredictability, there is scope for synergies between New Delhi and Beijing in terms of economic sphere and some crucial connectivity projects.
For long, trade has been skewed in favour of China, and this is a growing concern for India. Trade deficit between India and China has risen from 51.1 Billion USD in 2016-2017 to 62.9 Billion in 2017-2018 (a rise of over 20 percent).
The imposition of US tariffs has opened up opportunities for China importing certain commodities from India. This includes commodities like soybeans and rapeseed meal. In a seminar held at the Indian embassy in Beijing in September 2018, this issue was discussed and one on one meetings between potential importers (China) and sellers (India) was held. India urged China to remove the ban which had imposed on the import of rape meal seeds in 2011.
Connectivity and Afghanistan
Another area where there is immense scope for cooperation between India and China is big ticket connectivity projects. During his India visit, Uzbekistan President, Shavkat Mirziyoyev invited India to participate in a rail project connecting Uzbekistan and Afghanistan.
Afghanistan has welcomed this proposal, saying that this would strengthen cooperation between China and India in Afghanistan. India-China cooperation on this project is very much in sync with the China-India Plus Model proposed by China at the BRICS Summit in July 2018.
India and China can also work jointly for capacity building in Afghanistan. New Delhi has already been involved in providing assistance to Afghanistan in institution building and disaster management, and if Beijing and New Delhi join hands this could make for a fruitful partnership. The India-China joint training program for Afghan diplomats is a significant move in this direction. India and China can also look at joint scholarships to Afghan students where they can spend part of their time in China and the remaining time in India.
Both India and New Delhi for any meaningful cooperation in Afghanistan can not be risk averse, and will have to shed their hesitation. Beijing for instance has opted for a very limited ‘capacity building’ , where it will work with India in Afghanistan. While Kabul had expected that both sides will invest in a significant infrastructure project, Beijing with an eye on its ally Islamabad’s sensitivities opted for a low profile project.
New Delhi should not be too predictable in it’s dealings with Washington DC, and has to do a fine balancing act between Beijing and Washington DC. While on certain strategic issues are synergies between India and the US, on crucial economic and geo-political issues, there are serious differences, and India’s ties with Beijing are crucial in this context. New Delhi and Beijing should seek to expand economic ties, and the latter should give more market access to Indian goods. Apart from this, both countries should work closely on connectivity projects. If both sides build trust, the sky is the limit but it will require pragmatism from both sides. Beijing should not allow the Pakistani deep state to dictate it’s links with India (especially in the context of cooperation in Afghanistan). New Delhi on its part, should not make any one issue a sticking point in its complex but very important relationship with Beijing.
The “Neo-Cold War” in the Indian Ocean Region
Addressing an event last week at London’s Oxford University, Sri Lankan Prime Minister Ranil Wickremesinghe said some people are seeing “imaginary Chinese Naval bases in Sri Lanka. Whereas the Hambantota Port (in southern Sri Lanka) is a commercial joint venture between our Ports Authority and China Merchants – a company listed in the Hong Kong Stock Exchange.”
Prime Minister Wickremesinghe has denied US’ claims that China might build a “forward military base” at Sri Lanka’s Hambantota port which has been leased out to Beijing by Colombo. Sri Lanka failed to pay a Chinese loan of $1.4 billion and had to lease the China-developed port to Beijing for 99 years. Both New Delhi and Washington had in the past expressed concerns that Beijing could use the harbor for military purposes.
The USA, China, and India are the major powers playing their key role in the “Neo-Cold War” in Central Asian landmass and the strategic sea lanes of the world in the Indian Ocean where 90% of the world trade is being transported everyday including oil. It is this extension of the shadowy Cold War race that can be viewed as the reason for the recent comment made by the US Vice President Mike Pence that China is using “debt diplomacy” to expand its global footprint and Hambantota “may soon become a forward military base for China’s expanding navy”.
According to some analysts, the deep-water port, which is near a main shipping route between Asia and Europe, is likely to play a major role in China’s Belt and Road Initiative.
In his book “Monsoon” Robert D. Kaplan (2010), a senior fellow at the Centre for a New American Security notes the following:
[…] the Indian Ocean will turn into the heart of a new geopolitical map, shifting from a unilateral world power to multilateral power cooperation. This transition is caused by the changing economic and military conditions of the USA, China and India. The Indian Ocean will play a big role in the 21st century’s confrontation for geopolitical power. The greater Indian Ocean region covers an arc of Islam, from the Sahara Desert to the Indonesian archipelago. Its western reaches include Somalia, Yemen, Iran, and Pakistan — constituting a network of dynamic trade as well as a network of global terrorism, piracy, and drug trafficking […]
Two third of the global maritime trade passes through a handful of relatively narrow shipping lanes, among which five geographic “chokepoints” or narrow channels that are gateway to and from Indian ocean: (1) Strait of Hormuz (2) Bab el-Mandab Passage (3) Palk Strait (4) Malacca and Singapore Straits and (5) Sunda Strait.
While Lutz Kleveman (2003), argues that the Central Asia is increasingly becoming the most important geostrategic region for the future commodities, Michael Richardson (2004) on the other hand explains that the global economy depends on the free flow of shipping through the strategic international straits, waterways, and canals in the Indian Ocean.
According to the US Energy Information Administration (EIA) report published in 2017, “world chokepoints for maritime transit of oil are a critical part of global energy security. About 63% of the world’s oil production moves on maritime routes. The Strait of Hormuz and the Strait of Malacca are the world’s most important strategic chokepoints by volume of oil transit” (p.1). These channels are critically important to the world trade because so much of it passes through them. For instance, half of the world’s oil production is moved by tankers through these maritime routes. The blockage of a chokepoint, even for a day, can lead to substantial increases in total energy costs and thus these chokepoints are critical part of global energy security. Hence, whoever control these chockpoints, waterways, and sea routes in the Indian Ocean maritime domain will reshape the region as an emerging global power.
In a recent analysis of globalization and its impact on Central Asia and Indian Ocean region, researcher Daniel Alphonsus (2015), notes that the twists and turns of political, economic and military turbulence were significant to all great players’ grand strategies:
(1) the One Belt, One Road (OBOR), China’s anticipated strategy to increase connectivity and trade between Eurasian nations, a part of which is the future Maritime Silk Road (MSR), aimed at furthering collaboration between south east Asia, Oceania and East Africa; (2) Project Mausam, India’s struggle to reconnect with its ancient trading partners along the Indian Ocean, broadly viewed as its answer to the MSR; and (3) the Indo-Pacific Economic Corridor, the USA’s effort to better connect south and south east Asian nations. (p.3)
India the superpower of the subcontinent, has long feared China’s role in building outposts around its periphery. In a recent essay, an Indian commentator Brahma Chellaney wrote that the fusion of China’s economic and military interests “risk turning Sri Lanka into India’s Cuba” – a reference to how the Soviet Union courted Fidel Castro’s Cuba right on the United States’ doorstep. Located at the Indian Ocean’s crossroads gives Sri Lanka the strategic and economic weight in both MSR and Project Mausam plans. MSR highlights Sri Lanka’s position on the east-west sea route, while Project Mausam’s aim to create an “Indian Ocean World” places Sri Lanka at the center of the twenty-first century’s defining economic, strategic and institutional frameworks. Furthermore, alongside the MSR, China is building an energy pipeline through Pakistan to secure Arabian petroleum, which is a measure intended to bypass the Indian Ocean and the Strait of Malacca altogether.
A recent study done by a panel of experts and reported by the New York Times reveal that how the power has increasingly shifted towards China from the traditional US led world order in the past five years among small nation states in the region. The critical role played by the strategic sea ports China has been building in the rims of Indian Ocean including Port of Gwadar in Pakistan, Port of Hambantota in Sri Lanka, Port of Kyaukpyu in Myanmar and Port of Chittagong in Bangladesh clearly validates the argument that how these small states are being used as proxies in this power projection.
This ongoing political, economic and military rivalry between these global powers who are seeking sphere of influence in one of the world’s most important geostrategic regions is the beginning of a “Neo-Cold War” that Joseph Troupe refers as the post-Soviet era geopolitical conflict resulting from the multipolar New world order.
IMF bail-out Package and Pakistan
Pakistan may approach IMF to bail-out the current economic crisis. It is not the first time that Pakistan will knock the doors of IMF. Since 1965, Pakistan has been to IMF 17 times. Almost all of the governments has availed IMF packages. Usually, IMF is a temporary relief and provide oxygen for short time so that the patient may recover and try to be self-sustained. The major role of IMF is to improve the governance or reforms, how the ill-economy of a country may recover quickly and become self-sustained. After having oxygen cylinder for 17 times within 5 decades, Pakistan’s economy could not recover to a stage, where we can be self-sustained and no more looking for IMF again and again. This is a question asked by the common man in Pakistan to their leadership. People are worried that for how long do we have to run after IMF package? The nation has enjoyed 70 decades of independence and expects to be mature enough to survive under all circumstances without depending on a ventilator.
The immediate impact of decision to approach IMF, is the devaluation of Pakistani Rupees. By depreciating only one rupee to US dollar, our foreign debt increases 95 billion rupees. Today we witness a depreciation of rupee by 15 approximately (fluctuating), means the increase in foreign debt by 1425 billion rupees. Yet, we have not negotiated with IMF regarding depreciation of Rupees. Usually IMF demand major depreciation but all government understands the implications of sharp devaluation, always try to bargain with IMF to the best of their capacity. I am sure, Government of Pakistan will also negotiate and get the best bargain.
IMF always imposes conditions to generate more revenue and the easiest way to create more income is imposing tax on major commodities including Gas, Electricity and Fuel. Pakistan has already increased the prices of Gas, Electricity and Fuel. It has had direct impact on basic necessities and commodities of life. We can witness a price hike of basic food, consumer items and so on. Except salaries, everything has gone up. While negotiating with IMF formally, we do not know how much tax will be increased and how much burden will be put on the common man.
We believe, our rulers know our capacity and will keep in mind the life of a common man and may not exceed the limit of burden to common man beyond its capacity. We are optimistic that all decisions will be taken in the best interest of the nation.
It is true, that Pakistan has been to IMF so many times, so this might be a justification for the PTI Government to avail IMF package. But, there are people with different approach. They have voted for change and for “Naya” (new) Pakistan. They do not expect from PTI to behave like previous several governments. If PTI uses the logic of previous governments, may not satisfy many people in Pakistan.
Especially, when Pakistan was in a position to take-off economically, we surrendered half way, may not be accepted by many people in Pakistan.
The government has explained that other options like economic assistance from friendly countries was also very expensive, so that they have preferred IMF as more competitive package. I wish, Government may educate public on the comparison of available options, their terms and conditions, their interest rate, their political conditions, etc. There might be something confidential, Government may avoid or hide, one may not mind and understand the sensitivity of some of the issues. But all permissible information on the terms and conditions of all options in comparison, may be placed on Ministry of Finance’s website or any other mode of dissemination of knowledge to its public.
Against the tradition, people of Pakistan have voted Imran Khan, who so ever was given ticket of PTI, public has voted him or her blindly in trust to Imran Khan. A few of his candidates might not be having very high capabilities or very good reputation, but, public has trusted Imran Khan blindly. Imran Khan is the third most popular leader in Pakistan, after Jinnah the father of nation, and Zulfiqar Ali Bhutto, the Former Prime Minister of Pakistan in 1970s.
People of Pakistan have blindly trusted in Imran Khan and possess very high expectations from him. I know, Imran Khan understands it very well. He is honest, brave and visionary leader and I believe he will not disappoint his voters.
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