[yt_dropcap type=”square” font=”” size=”14″ color=”#000″ background=”#fff” ] I [/yt_dropcap]ndia is believed to be one of the emerging economic powers of the world. This potential is attributed to several indicators such as demographic dividend, substantive economic growth, political stability, unity in diversity, a good pool of trained and skilled human resources, new strides in science and technology, mastery in information technology, well trained and adequately equipped army etc.
For the given of its size, location, economic potential, India has been holding an important and unique position in South Asia. In the terms of geography, demography, economy and military, it is the largest country in the South Asia. For the given of such factors, the countries of South Asia have always been remained skeptical of taking undue advantage of the weak bargaining capacity of neighbouring countries in a bilateral dialogue. India wanted to enhance bilateral relations with all the South Asian countries, but Bhashin (2008) has argued that its bilateralism took as an instrument of coercive diplomacy and Indian hegemony.
Conceptualization of India’s South Asia Policy
Michael (2013) has argued that the inspiration and philosophy of Indian foreign policy has been derived from Kautilya’s Arthashastra, that is believed to be as a manual of statecraft. In this manual, the incumbent or the potential king has been guided, how to rule a state or what rules are to be followed to gain geopolitical and geostrategic space in terms of power in the region.
India has been following good neighbourly policy even before its independence. This argument could be substantiated by the argument of Rajkumar (1952: 46), who quoted Jawaharlal Nehru’s first speech delivered in December 1927, wherein he said, “The people of India have no quarrel with their neighbours and desire to live at peace with them.” The Nehruvian foreign policy had been consistently followed by the successive governments of India.
In the post-Cold War era, India has emerged as an economic global player in the global arena. The former Indian foreign secretary Nirupama Rao (2009-2011), has argued and accepted that a ‘peaceful neighbourhood is mandatory for the realization of India’s vision of economic growth.’ Realizing the geopolitical and geostrategic imperatives, India has invoked all the neighbouring countries to be partners and contribute to the regional growth and prosperity (MEA, Annual Report 2005: 1).
Modifying the South Asian Policy
India has been pursuing good neighbourly policy vis-à-vis South Asian countries, however, it is failed to convince them of the same. The leadership of these countries is of the firm opinion that India has been pursuing hegemonic policy. Moreover, the relations with almost all countries have remained off the keel. Since India has been emerging as one of the economic powers, thus, it realized that peaceful neighbourhood is the prerequisite of its economic development and prosperity in general and for the region in particular.
Even before the formation of his government, Modi had outlined foreign policy priorities during a Network 18 TV Programme: ‘Think India, Dialogue Forum,’ in 2013 as:
•Improving relations with immediate neighbours, as peace and tranquility in South Asia is essential for realizing the development agenda.
•The introduction of para-diplomacy.
•Enhance of bilateral trade with all the countries.
In order to show his priority and interest towards South Asia, the first, and unique step was taken by inviting all the heads of the South Asian countries. Moreover, it was believed that it would undo the criticism of his being hardliner. The invited guests list included-Hamid Karzai (Afghanistan), Tshering Tobgay (Bhutan), Abdulla Yameen (Maldives), Sushil Koirala (Nepal), Nawaz Sharif (Pakistan), Mahinda Rajapaksa (Sri Lanka), Navin Ramgoolam (Mauritius), Parliamentary Speaker Shirin Sharmin Chaudhury (Bangladesh) respectively. The policy was christened as the Neighbourhood First Policy, later on, formalized and concretized by the first speech of Indian President Pranab Mukherji (2014, June 9) and PM Address to the 69th Session of the United Nations General Assembly. By highlighted the place of neighbours in Indian foreign policy PM Modi said, “A nation’s destiny is linked to its neighbourhood. That is why my government has placed the highest priority on advancing friendship and cooperation with its neighbours.”
The objective of the first step is to improve and enhance bilateral ties with the South Asian countries. PM also held talks with all the all the heads individually on the second day of swearing-in-ceremony. During these meetings, he strongly advocated for trade, connectivity, infrastructure, transit facility issues among the South Asian countries. On the eve of 18th SAARC Summit, Kathmandu (2014, November 26-27), he also exhorted his counterparts to give greater focus on the people to people contacts, better connectivity, commercial linkages among the South Asian region.
PM Modi visited almost all the South Asian countries in order to enhance multifaceted engagements with these countries. Bhutan was the maiden foreign visit of PM Modi. He had emphasized on building economic ties between both the countries. The other areas of cooperation included hydro-electric deal, the inauguration of the India-funded Supreme Court of Bhutan building. The bilateral relations between both countries were termed as “unique and special relationship.”
After the long hiatus of 17 years, PM Modi had visited Nepal. This visit has created an unprecedented enthusiasm among the Nepali public and politicians. He became the first foreign leader to address the constituent assembly of Nepal. PM Modi has also declared a long list of gifts to Nepal. He advocated that borders must be bridges, not barriers.” But Nepal’s constitutional crisis 2015 and Indian stand on it, distanced both the countries from each other despite India’s neighbourhood first policy.
The bilateral relationship between India and Bangladesh has also improved a lot under the Neighbourhood first policy. The controversial issues between both the countries have been sorted out like boundary issue through the land boundary agreement (LBA) and the Teesta water-sharing pact. Bangladesh has also been cooperating in eliminating the extremist groups from North-East. Similarly, good relations have been developed with Sri Lanka under the stewardship of PM despite reservation about the Hambantota port and stationing of Chinese submarines at the same port. Maldives is a very important country for India’s maritime security architecture. Due to this, Maldives has been figuring very prominently in Indian neighbourhood policy.
Pakistan is a country which is difficult to deal with despite having neighbourhood first policy. The hardliner perception of PM Modi has substantially changed when on the swearing-in-ceremony, PM Nawaz Sharif was invited. During the talk between both the leaders, they looked forwarded to improve the relations by starting the dialogue at various levels which have been suspended even before taking over the governments by both the leaders. But despite India’s number of efforts like visiting by PM Modi to Pakistan during the marriage of grand-daughter of PM Nawaz Sharif, conveying best wishes for the birthday and surgery of PM Nawaz Sharif, the dialogues at all levels have remained suspended. Intermittently, gun-firing on the line control distancing both the countries from each other. The Kashmir issue has been time and again raised in the international forum such as UNSC and GCC etc. Notwithstanding of India’s good neighbourly policy, the bilateral relations between both the countries have not been improved.
Similarly, Afghanistan has figured very prominently. It is called as the first strategic partner of India. India became the fifth largest donor to Afghanistan. India has made substantial FDI of US$ 2 billion. Very recently, parliament building built by India handed over to Afghanistan. Afghanistan people hold India in a very high esteem. However, neighbourhood first policy, did not show any substantive results in respect of Pakistan and Nepal.
India pursuing it neighbourhood policy since its independence which is consistently being followed by the successive government. This policy has been derived from the Kautilya’s Arthsashtra. After taking over the reign of the Indian government, PM Modi has revived and renovated the policy into neighbourhood first. Though this policy has been remained a bit successful in improving relations with some of the countries but it has been failed in respect of Pakistan and Nepal. It is, therefore, recommended that neighbourhood policy is required to be remodeled and refashioned, in order to not only improve relations bilaterally rather creating the peace and stability for the entire South Asian region.
India’s Military Spending and South Asian Security
Over the past several years, unprecedented military modernization in Pakistan’s immediate neighbour, India, has worsened South Asia’s security environment. India’s heavy military spending and its unstoppable quest for the acquisition of sophisticated weapons have threatened regional stability. Indian desire to acquire global power status through military means has further been intensified as a result of US assistance particularly in former’s defence sector. Within quick span of time, defence trade between India and the US has shot from $1 billion to over $15 billion leaving other regional powers in the state of security consciousness.
India’s obsession with its military build-up doesn’t end here. According to the Stockholm International peace Research Institute (SIPRI) a prestigious international institute dedicated to research into conflict, armaments, arms control and disarmament, India, once again tops the list as world’s largest weapons importer. This is not a new development as previously, India also topped the list for the same reason.
As per SIPRI estimates, Russia remains top arms supplier to India. However, surprisingly arms deliveries from the US increased more than six-fold in the five-year period to the India. This trend in long run will definitely reduce market space for Russian arms and ammunition to India.
Despite the fact that, India’s unbridled military modernization is the primary impetus behind South Asian instability, global power’s economic expediencies in South Asia also undermines delicate conventional parity between India and Pakistan. For instance, Indo-US strategic partnership, which apparently touted as US’ China containment policy, seems more of a Pakistan containment policy. Much of the US provided weapon-tech to India is more useful against Pakistan in a conventional warfare. Almost 70% of Indian military troops and weapon system are deployed against Line of Control, (LOC). Interestingly, peaceful settlement of Docklam issue between China and India as well as sky-rocketing bilateral trade between both countries, which has reached to $84.44 billion last year, makes prospects of conflict almost impossible.
However, in contrast to aforementioned facts, the influx of massive military hardware from western capitals to India continues and in certain cases the flow of arms has gained momentum. There are two primary motives behind India’s overwhelming spending in defence industry.
First, India aspires for greater role in global environment and in certain ways it has been demonstrating its will and capability to influence global dynamics. India’s successful test of Agni-5, a long-range ballistic missile, capable of carrying nuclear weapons with a strike range of more than 3,000 miles, is a practical demonstration of its military capabilities to influence other powers around the globe. For hawkish policy makers in New Delhi, a strong military power can extend India’s global influence.
Secondly, India is following a policy of coercion at regional level primarily, against Pakistan which shares history of hostility and violence due to longstanding territorial disputes such as Kashmir. There is growing perception in New Delhi that militarily strong India can dictate South Asian affairs. That’s why India has been consistently opposing diplomacy and dialogue for peaceful resolution of disputes. Therefore, to meet its foreign policy goals, which are based on coercion and usage of hard power, India spends massive in military build-up.
Ironically, South Asia is called as nuclear flashpoint due to history of animosity and violent conflicts between India and Pakistan. With its mighty military power, India has emerged as the most potent threat for not just Pakistan but also a security challenge for other powers in the region.
Given the advantage it has in terms of nuclear missiles, military hardware and submarine fleet, India has been trying to create an environment conducive to wage limited war against Pakistan. For that, India has not just developed its military doctrine, Cold Start Doctrine, but also initiated and sponsored sub conventional war in Pakistan’s chaotic province, Balochistan.
In such circumstances, Pakistan needs to maintain delicate conventional military balance vis-à-vis India. Despite the fact, Pakistan has been facing number of issues at national, regional and international levels which include on-going military operation in tribal areas to hostile border skirmishes; a robust military modernization plan has become inevitable. A militarily strong Pakistan will be able to maintain its territorial integrity against aggressive yet militarily mighty India.
It’s an open fact that Pakistan has consistently called for peaceful resolution of all outstanding disputes and it has offered to resume diplomacy and dialogue over Kashmir dispute. Unfortunately, India’s cold response has not only restricted Pakistan’s peaceful overtures but also refused to accept third-party mediation in peaceful settlement of Kashmir issue. This clearly shows that, current ruling regime in India is not serious for peaceful settlement, rather more inclined to use of force and coercion. Under such circumstances, Pakistan needs to strengthen its force posture to pre-empt any kind of misadventure from its adversary. However, Pakistan, as it has done in past, must embrace peaceful overtures to bring stability in the region.
US Call for a New Relationship
‘Trust, but verify’ an Old Russian proverb that President Reagan liked to repeat often. Trump is neither the first President nor he is going to be the last to criticize Pakistan of deceit and threaten to cut off American assistance. Notwithstanding, the last six decades of the US support, the US has failed completely in cultivating an ally in Pakistan nor has it meaningfully changed the nature of its relationship with Pakistan, which can be best described as ‘transactional’. A quid-pro-quo relationship between the two has never been established with regards to the assistance they both offered to each other. In truth, United States has never really trusted Pakistan.
President Trump avowed in his New Afghan Strategy that the US has been paying Pakistan ‘billions of billions of dollars at the same time they are housing the very terrorists that we are fighting for’ but the mantra should be put to a halt. Likewise, the US must be conveyed boldly to stop continuing its false claims that Pakistan shelters the ‘agents of chaos’ and be reminded that friends don’t put each other on notices.
Similarly, statements and avowals that India now is a strongest ally to the US, disturbs Pakistan, chiefly because of the irony at Trump administration’s part which only sees the glittering Indian market but pay no heed to the growing Indian cease fire violations across the LoC and the atrocities India commits against the unarmed civilians of the Indian held Kashmir.
The recent visits and statements however by the senior US officials and Trump’s aides reflect the US call for a new relationship between the US and Pakistan, which once used to be close allies in the US led ‘Global War on Terror’.
Pakistan’s foreign policy makers at this point in time must be mindful of the fact that the US is a major trading partner and should adhere to a relationship more than ‘transactional’. Moreover, the risks and fears at the US part of ‘rampant destabilization and civil war in Afghanistan’ increments further the region already devoid of trust. For, nobody actually knows whether the US will stay or eventually leave Afghanistan.
The Afghan war has now become a war of logistics, in words of Sun Tzu ‘the line between order and disorder lies in logistics’, Pakistani supply lines thus provide Islamabad with a leverage in absence of shorter, cheaper and acceptable alternative routes. Given these circumstances, Pakistan should make best use of the US call towards a more robust bilateral relationship.
The move for a ‘new relationship’ and improved ties began last week with senior Trump aide’s visit to Islamabad to hold talks with Pakistani leaders. Earlier also the impressions that Pakistan and the US were on a collision course were dispelled by a top US general. Likewise, US department’s acting Assistant Secretary for South and Central Asia Alice Wells asserted that the US was not thinking of cutting its ties rather assured that the US still cogitate Pakistan indispensable to the resolve in Afghanistan.
The aforesaid developments clearly indicate that the strained US-Pakistan relations would improve soon and that the suspension in the military aid is also not permanent.
To conclude, achieving long term stability and defeating the insurgency in the region will be difficult without Pakistan’s support and assistance.
Special Economic Zones and CPEC
Economic Expansion, high prices and inflation are the issues on which one can talk for hours. The scarcity of resources, energy crises and lack of industrial modernization are the challenges which Pakistan has been facing for past many decades. Despite the advantages of geographical setting, the country could not sufficiently expand its economy until 20thcentury. However, the China-Pakistan Economic Corridor (CPEC) has brought with it various infrastructural, energy, and industrial projects that show smooth progress in these sectors. One of the most significant developments is the establishment of Special Economic Zones (SEZs) under the Long Term Plan (LTP) of CPEC.SEZ is a physically protected area with definite geographic boundaries under which the investors and the developers enjoy duty free benefits and streamlined procedures, set up by the government. After the successful completion of the Early Harvest Program (EHP), the governments of China and Pakistan aspire to complete the Long Term Plan (LTP) of CPEC. As a key route to success, the LTP has been divided into three phases and the work on the first phase has already started. SEZs are on the first priority list of the first Phase of LTP. While utilizing the strategic location of Pakistan and the rich resources, the SEZ will contribute a framework for Pakistan’s domestic industries, and local economy.
The government has planned to establish nine Special Economic Zones (SEZs) in all the four provinces, federal areas and Gilgit-Baltistan under the framework of CPEC, which would be completed in a period of three years. Pakistan has conducted feasibilities of 5 SEZs which focuses only on the infrastructure. The three prioritized SEZs to be completed in the first phase of LTP are M3 Industrial City in Faisalabad, Punjab, Chinese SEZ Dhabeji, Sindh and Hattar SEZ in KP province. While the remaining six sites include Rashakai Economic Zone, M-1 Noshera, Bostan Industrial Zone District Pishin, AllamaIqbal Industrial City, Moqpondass SEZ in Gilgit-Baltistan, ICT Model Industrial Zone Islamabad, Development of Industrial Park on Pakistan Steel Mills Land at port Qasim near Karachi, Special Economic Zone at Mirpur AJK, Mohmand Marble city.
Although, there are general misunderstandings regarding the industrial ramifications of the SEZ’s under CPEC due to large number of Chinese firms and the exemption in the tax rates offered to them. However, the LTP of CPEC shows that these SEZ’s will offer the country with a great opportunity to accelerate industrialization because they are beneficial for all the international and domestic investors. So far in the history, SEZs have been the reason of economic boost in countries around the globe. Now this is a matter of concern that either these SEZs will make Pakistan a center of economic modernization and trade ventures or not. The economist and financial experts are optimistic about Pakistan’s emergence as one of the fast growing and promising global economy.
While stepping towards the era of industrialization, Pakistan faces a number of issues that have so far refrain the industries to understand their growth potential. Some of the chief hindrances to investment in Pakistan include poor security; non-availability of infrastructure and power crises, rent-seeking regulators, and cumbersome tax administration, etc. among many others.
Likewise the entrepreneurs in Pakistan have certain reservation with the incentives proposed by the government and SEZs for the investors and enterprises including ten-year exemption from all taxes on imported capital goods and exemption from tax on income accruable from development and operations in SEZs for a period of ten years. Although these incentives will be beneficial for the foreign investors at large but at the same time it will provide Pakistani enterprises with the opportunity to collaborate with the Chinese firms and launch joint ventures of mutual interests and benefits. This will be further beneficial for the annual Gross Domestic Product (GDP) growth of Pakistan. Moreover it will bring Foreign Direct Investment (FDI) in the country thus generating the foreign revenue.
Subsequently it is significant to keep in mind that in Pakistan there are certain security and political factors due to which the SEZ’s may face challenges. Hence forth to conquer these challenges provincial harmony among all the provinces and mutual consensus between the public sector and private sector is needed. SEZs under CPEC will be a life-time opportunity for Pakistani companies to work together with Chinese companies for the development of export-oriented manufacturing industries. Therefore, Pakistan should increase its products in the Chinese market and raise the ratio of its export while decreasing the trade deficit by lowering the imports.
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