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Nepal Should get rid of Sino-India paranoia and must accept US MCC Aid

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The US has offered, under its MCC grant, 500 million US $ aid to Nepal which is reluctant to accept it due to Chinese concerns. Nepal should get rid of Sino-India paranoia and accept this aid. It should relinquish geopolitical adventures and its engagement with nations other than India and China will be a step further in the assertion of the country’s strategic autonomy. Nepal’s sovereign decision should be precipitated by its own concern for national interest and not of any third party’s imagined interest collision with it.

Among diverse political turbulences being seen in Nepal, one which is being less talked about is Nepal’s indecisiveness over US aid amounting to 500 million USD under Millennium Challenge Corporation (MCC). While the government is inclined to accept it – Finance Minister Yubaraj Khatiwada incorporated this in the new budget before its parliamentary endorsement – the grant is facing opposition, inter alia, from within the Nepali Communist Party (NCP).

The opponents are forwarding the arguments that accepting it may damage blossoming ties with China. There may be strong element of truthfulness, prima facie, in this argument but this advocacy is shorn of any understanding of Nepal’s national interest.

Nepal is sandwiched between two Asian Giants sharing great ambitions for future whose geo-political interests are colliding as they try to sell off their versions of worldview. Nepal is, of late, becoming hotbed for this bilateral competition. History is evidence to the fact that any great power rivalry has resulted unbearable consequences for playgrounds – where big power competes for their interests in other nations. Middle east and Afghanistan are two evergreen examples.

The obsession with fear of China’s reaction over a sovereign decision, essentially economic in nature, speaks volume about the intrusion of that country in Nepalese political landscape. Discussions in Nepalese media platforms and among policy makers are revolving more upon the US Indo-Pacific Agenda versus China’s Belt and Road Initiative, which should, in no way, be Nepal’s immediate priority. Surprisingly, absent in the discussions are cost-benefit ratio of these projects. A perusal of the MCC aid and geopolitical events of recent past shows that the cost-benefit scale skews in favour of economic advantage to the country.

Firstly, the MCC aid is a grant not a loan. Thus, it comes with benefit sans any obligation. There are no legal or political conditions attached to it and thus a claim that Nepal’s sovereignty will be promised by accepting the aid is wholly fallacious.

Secondly, these projects relate to ‘Electricity Transmission’ and ‘Road Maintenance’. As per MCC, the electricity projects include, inter alia, laying of 300 km of high voltage power lines, equivalent to one-third the length of Nepal; the addition of a second cross-border transmission line to facilitate greater electricity trade with India; and activities to improve sector governance to increase private investment. The road projects chiefly concerns maintaining ‘key roads’ admeasuring a length of 300 km which are vital for movement of goods and people. An aid amounting to nearly 1.5 % of GDP must not be rejected for imaginary fear of the Dragon.

Thirdly, China must not be expected to react negatively just because of the fact that the aid is coming from a rival nation. If it is not so, India should have acted in similar imaginary way in 2017 when Nepal became a party in BRI, an initiative India rejects as it passes though Pakistan Occupied Kashmir! Also, the sensitivity of India’s concern which relates to geopolitical issue is graver than that of China’s as it concerns an economic project.

Concerns relating to issue of provisions of MCC may be alleviated by having recourse to negotiation with US over it. For example, Nepal can negotiate that in place of US law it will be provisions of international law which will apply and there would be an independent international tribunal to settle any disputes, whatsoever arises pertaining to the project.

In past, we have seen Nepal’s compulsion as it has accepted the fate to play between India and China, letting itself more vulnerable to whims and caprices of these two countries. US aid under MCC is a golden opportunity for Nepal to look beyond India and China and seek greater engagement with other powers to derive economic benefit and relinquish meaningless geo-political adventures.

The best example in south Asia following ‘strategic autonomy’ is India which followed a non-aligned policy, although shaky one, throughout the cold war which enabled it to get benefits from both the superpower blocs and wrath of none. Now, of course, there has been a shift in strategic alignment of India – it is undertaking appropriate diplomatic manoeuvring– as China’s claim of peaceful rise seems rather flimsy in view of perennial projection of hard power against its neighbours and US under Donald Trump is more unstable now. The occasion has not come, till now, for Nepal to take any sides.

Economic cooperation should not be halted due to a geo-political competition wherein Nepal does not have any significant stakes. Nepal must catapult the entanglement of Sino-Indian paranoia and assert its strategic autonomy. Not only US, Nepal should seek greater engagement with other powers too. Rather than out rightly rejecting the MCC aid, it must undertake a negotiation to ward off its concerns relating to sovereignty. The message should go to both Asian giants that Nepal could not be taken for granted as it will follow a multi-aligned approach in contradiction to its hitherto Sino-Indian balancing approach. This will ensure more diplomatic leverage and clout to Nepal vis-à-vis India and China.

Pursuing LLM in International Law (2019-21), Faculty of Legal Studies, South Asian University (A University Established by 8 Member-States of SAARC Regional Grouping), New Delhi, 110021.

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S. Jaishankar’s ‘The India Way’, Is it a new vision of foreign policy?

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S. Jaishankar has had an illustrious Foreign Service career holding some of the highest and most prestigious positions such as ambassador to China and the US and as foreign secretary of India. Since 2019 he has served as India’s foreign minister. S. Jaishankar also has a Ph.D. in international relations from JNU and his academic background is reflected in this book.

His main argument is simplistic, yet the issues involved are complex. Jaishankar argues that the world is changing fundamentally, and the international environment is experiencing major shifts in power as well as processes. China is rising and western hegemony is declining. We are moving away from a unipolar system dominated by the US to a multipolar system. Globalization is waning and nationalism and polarization is on the rise (p. 29). The old order is going away but we cannot yet glimpse what the future will look like. This is the uncertain world that Dr. Jaishankar sees.

Dr. Jaishankar also argues that India too has changed, it is more capable and more assertive. The liberalization program that began in 1991 has made the Indian economy vibrant and globally competitive and it is well on track to becoming the third biggest economy in the world, after China and the US.  The war of 1971 that liberated Bangladesh, the liberalization of the economy after 1991, the nuclear tests in 1998 and the nuclear understanding with the US in 2005, Jaishankar argues are landmarks in India’s strategic evolution (p. 4). So given that both India and the system have changed, Jaishankar concludes, so should India’s foreign policy.

But his prescription for India’s foreign policy, in the grand scheme of things, is the same as before – India should remain nonaligned and not join the US in its efforts to contain China. India will try to play with both sides it seems in order to exploit the superpowers and maximize its own interests (p. 9). But he fails to highlight how India can find common ground with China other than to say the two nations must resolve things diplomatically. He also seems to think that the US has infinite tolerance for India’s coyness. In his imagination the US will keep making concessions and India will keep playing hard to get.

Jaishankar has a profound contradiction in his thinking. He argues that the future will be determined by what happens between the US and China. In a way he is postulating a bipolar future to global politics. But he then claims that the world is becoming multipolar and this he claims will increase the contests for regional hegemony. The world cannot be both bipolar and multipolar at the same time.

There is also a blind spot in Jaishankar’s book.  He is apparently unaware of the rise of Hindu nationalism and the demand for a Hindu state that is agitating and polarizing India’s domestic politics. The systematic marginalization and oppression of Muslim minorities at home and the growing awareness overseas of the dangers of Hindutva extremism do not exist in the world that he lives in. He misses all this even as he goes on to invoke the Mahabharata and argue how Krishna’s wisdom and the not so ethical choices during the war between Pandavas and Kauravas should be a guide for how India deals with this uncertain world – by balancing ethics with realism (p. 63). Methinks his little digression in discussing the ancient Hindu epic is more to signal his ideological predilections than to add any insights to understanding the world or India’s place in it.  

One aspect of his work that I found interesting is his awareness of the importance of democracy and pluralism. He states that India’s democracy garners respect and gives India a greater opportunity to be liked and admired by other nations in the world (p. 8). Yet recently when he was asked about the decline of India’s democratic credentials, his response was very defensive, and he showed visible signs of irritation. It is possible that he realizes India is losing ground internationally but is unwilling to acknowledge that his political party is responsible for the deterioration of India’s democracy.

This is also apparent when he talks about the importance of India improving its relations with its immediate neighbors. He calls the strategy as neighborhood first approach (pp. 9-10). What he does not explain is how an Islamophobic India will maintain good relations with Muslim majority neighbors like Bangladesh, Maldives, and Pakistan.

The book is interesting, it has its limitations and both, what is addressed and what is left out, are clearly political choices and provide insights into how New Delhi thinks about foreign policy. So, coming to the question with which we started, does India have a new foreign policy vision? The answer is no. Dr. Jaishankar is right, there is indeed an India way, but it is the same old way, and it entails remaining nonaligned with some minor attitudinal adjustments.  

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India’s open invitation to a nuclear Armageddon

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Army chief General Manoj Mukund Naravane said that “India was not averse to the possible demilitarisation of the Siachen glacier ,  the world’s highest battleground and an old sore in India-Pakistan ties , provided the neighbour accepted the 110-km Actual Ground Position Line (AGPL) that separates Indian and Pakistani positions. Acceptance of AGPL is the first step towards demilitarisation but the Pakistan side loathes doing that”. He said, ‘The Siachen situation occurred because of unilateral attempts by Pakistan to change status quo and countermeasures taken by the Indian Army’ (Not averse to demilitarisation of Siachen if Pak meets pre-condition: Army chief, Hindustan Times January 13, 2022).

Reacting to the Indian army chief’s statement, Pakistan’s former foreign secretary Riaz Mohammad Khan reminisced that the Siachen could not fructify into a written agreement because India wanted Siachen and Kashmir to be settled together. India’s approach ‘nothing is agreed until everything is agreed’ scuttled the agreement. As for Kashmir, “a simultaneous effort was made through the backchannel …in what is commonly known as the Four-Point Formula” (Siachen recollections, Dawn January 16, 2022). Riaz laments Indi’s distrust that hindered a solution.

Shyam Saran, a voice in the wilderness

Shyam Saran, in his book How India Sees the World (pp. 88-93) makes startling revelations about how this issue eluded solution at last minute. India itself created the Siachen problem.  Saran reminisces, in the 1970s, US maps began to show 23000 kilometers of Siachen area under Pakistan’s control. Thereupon, Indian forces were sent to occupy the glacier in a pre-emptive strike, named Operation Meghdoot. Pakistani attempts to dislodge them did not succeed. But they did manage to occupy and fortify the lower reaches’.

He recalls how Siachen Glacier and Sir Creek agreements could not fructify for lack of political will or foot dragging. He says ‘NN Vohra, who was the defence secretary at the time, confirmed in a newspaper interview that an agreement on Siachen had been reached. At the last moment, however, a political decision was taken by the Narasimha Rao government to defer its signing to the next round of talks scheduled for January the following year. But, this did not happen…My defence of the deal became a voice in the wilderness’.

Saran says, `Kautliyan template would say the options for India are sandhi, conciliation; asana, neutrality; and yana, victory through war. One could add dana, buying allegiance through gifts; and bheda, sowing discord. The option of yana, of course would be the last in today’s world’ (p. 64, ibid.).

India’s current first option

It appears that Kautliya’s last-advised option,yana, as visualised by Shyam Saran, is India’s first option nowadays. Kautlya also talks about koota yuddha (no holds barred warfare), and maya yuddha (war by tricks) that India is engaged in.

Cartographic annexation

By unilaterally declaring the disputed Jammu and Kashmir its territory does not solve the Kashmir problem. This step reflects that India has embarked upon the policy “might is right”. In Kotliyan parlance it would be “matsy nyaya, or mach nyaya”, that is big fish eats the small one. What if China also annexes disputed borders with India?  India annexed Kashmir presuming that Pakistan is not currently in a position to respond militarily, nor could it agitate the matter at international forums for fear of US ennui.  

India’s annexation smacks of acceptance of quasi-Dixon Plan, barring mention of plebiscite and division of Jammu. . Dixon proposed: Ladakh should be awarded to India. Pakistan Occupied Kashmir (including Gilgit and Baltistan) should remain with Pakistan. Whole Kashmir valley should have a plebiscite with no option to independence. Jammu should be divided on religious basis. The river Chmab should be the dividing line. Northern Jammu (Muslims dominated) should go to Pakistan and Hindu majority parts of Jammu to remain with India.

In short Muslim areas should have gone with Pakistan and Hindu-Buddhist majority areas should have remained with India.

India’s annexation has no legal sanctity. But, it could have bbeen sanctified in a mutually agreed Kashmir solution.

India’s propaganda

India portrays the freedom movement in Kashmir as `terrorism’. What about India’s terrorism in neighbouring countries?

The world is listless to accounts of former diplomats and RAW officers about executing insurgencies in neighbouring countries. B. Raman, in his book The Kaoboys of R&AW: Down Memory Lane makes no bones about India’s involvement up to the level of prime minister in Bangladesh’s insurgency.

 Will the world take notice of confessions by Indi’s former intelligence officers and diplomats?B. Raman reminds `Indian parliament passed resolution on March 31, 1971 to support insurgency. Indira Gandhi had then confided with Kao that in case Mujib was prevented from ruling Pakistan, she would liberate East Pakistan from the clutches of the military junta. Kao, through one RAW agent, hijacked a Fokker Friendship, the Ganga, of Indian Airlines hijacked from Srinagar to Lahore.

India’s ambassador Bharath Raj Muthu Kumar, with the consent of then foreign minister Jaswant Singh, `coordinated military and medical assistance that India was secretly giving to Massoud and his forces’… `helicopters, uniforms, ordnance, mortars, small armaments, refurbished Kalashnikovs seized in Kashmir, combat and winter clothes, packaged food, medicines, and funds through his brother in London, Wali Massoud’, delivered circuitously with the help of other countries who helped this outreach’. When New Delhi queried about the benefit of costly support to Northern Alliance chief Massoud, Kumar explained, “He is battling someone we should be battling. When Massoud fights the Taliban, he fights Pakistan.”

Death of back-channel

In his memoirs In the line of fire (pp.302-303), president Musharraf had proposed a personal solution of the Kashmir issue.  This solution, in essence, envisioned self-rule in demilitarised regions of Kashmir under a joint-management mechanism.   The solution pre-supposed* reciprocal flexibility.

Death of dialogue and diplomacy

Riaz warns of “incalculable” risks as the result of abrogation of Kashmir statehood (Aug 5, 2019). Both India and Pakistan are nuclear powers. In the absence of a dialogue on outstanding issues, war, perhaps a nuclear one,  comes up as the only option.

Concluding remark

Sans sincerity, the only Kashmir solution is a nuclear Armageddon. Or, perhaps divine intervention.

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Major Challenges for Pakistan in 2022

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Pakistan has been facing sever challenges since 1980s, after the former USSR’s invasion of Afghanistan. The history is full of challenges, but, being a most resilient nation, Pakistan has faced some of them bravely and overcome successfully. Yet, few are rather too big for Pakistan and still struggling to overcome in the near future.

Some of the challenges are domestic or internal, which can be addressed conveniently. But, some of them are part of geopolitics and rather beyond control of Pakistan itself. Such challenges need to pay more attention and need to be smarter and address them wisely.

Few key areas will be the main focus of Pakistan in the year ahead. Relations with China and the US while navigating the Sino-US confrontation, dealing with Afghanistan’s uncertainties, managing the adversarial relationship with India and balancing ties between strategic ally Saudi Arabia and neighbor Iran.

Pakistan has to pursue its diplomatic goals in an unsettled global and regional environment marked by several key features. They include rising East-West tensions, increasing preoccupation of big powers with domestic challenges, ongoing trade and technology wars overlying the strategic competition between China and the US, a fraying rules-based international order and attempts by regional and other powers to reshape the rules of the game in their neighborhood.

Understanding the dynamics of an unpredictable world is important especially as unilateral actions by big powers and populist leaders, which mark their foreign policy, have implications for Pakistan’s diplomacy. In evolving its foreign policy strategy Pakistan has to match its goals to its diplomatic resources and capital. No strategy is effective unless ends and means are aligned.

Pakistan’s relations with China will remain its overriding priority. While a solid economic dimension has been added to long-standing strategic ties, it needs sustained high-level engagement and consultation to keep relations on a positive trajectory. CPEC is on track, timely and smoothly progress is crucial to reinforce Beijing’s interest in strengthening Pakistan, economically and strategically. Close coordination with Beijing on key issues remains important.

Pakistan wants to improve ties with the US. But relations will inevitably be affected by Washington’s ongoing confrontation with Beijing, which American officials declare has an adversarial dimension while China attributes a cold war mindset to the US. Islamabad seeks to avoid being sucked into this big power rivalry. But this is easier said than done. So long as US-China relations remain unsteady it will have a direct bearing on Pakistan’s effort to reset ties with the US especially as containing China is a top American priority. Pakistan desires to keep good relations with the US, but, not at the cost of China. In past, Pakistan was keeping excellent relations with US, while simultaneously very close with China. When the US imposed economic blockade against China and launched anti-communism drive during the cold war, Pakistan was close ally with the US and yet, keeping excellent relations with China. Pakistan played vital role in bring China and the US to establish diplomatic relations in 1970s. Yet, Pakistan possesses the capability to narrow down the hostility between China and the US.

Pakistan was close ally with the US during cold war, anti-communism threat, war against USSR’s invasion of Afghanistan in 1980s, and war on terror, etc. Pakistan might be a small country, but, possesses strategic importance. As long as, the US was cooperating with Pakistan, Pakistan looked after the US interest in the whole region. In fact, Pakistan ensured that the US has achieved its all strategic goals in the region. Since, the US kept distance from Pakistan, is facing failure after another failure consecutively. The importance of Pakistan is well recognized by the deep state in the US.

US thinks that withdrawal from Afghanistan has diminished Pakistan’s importance for now. For almost two decades Afghanistan was the principal basis for engagement in their frequently turbulent ties, marked by both cooperation and mistrust. As Pakistan tries to turn a new page with the US the challenge is to find a new basis for a relationship largely shorn of substantive bilateral content. Islamabad’s desire to expand trade ties is in any case contingent on building a stronger export base.

Complicating this is Washington’s growing strategic and economic relations with India, its partner of choice in the region in its strategy to project India as a counterweight to China. The implications for Pakistan of US-India entente are more than evident from Washington turning a blind eye to the grim situation in occupied Kashmir and its strengthening of India’s military and strategic capabilities. Closer US-India ties will intensify the strategic imbalance in the region magnifying Pakistan’s security challenge.

Multiple dimensions of Pakistan’s relations with Afghanistan will preoccupy Islamabad, which spent much of 2021 engaged with tumultuous developments there. While Pakistan will continue to help Afghanistan avert a humanitarian and economic collapse it should not underestimate the problems that may arise with an erstwhile ally. For one, the TTP continues to be based in Afghanistan and conduct attacks from there. The border fencing issue is another source of unsettled discord. Careful calibration of ties will be needed — assisting Afghanistan but avoiding overstretch, and acknowledging that the interests of the Taliban and Pakistan are far from identical. Moreover, in efforts to mobilize international help for Afghanistan, Islamabad must not exhaust its diplomatic capital, which is finite and Pakistan has other foreign policy goals to pursue.

Managing relations with India will be a difficult challenge especially as the Modi government is continuing its repressive policy in occupied Kashmir and pressing ahead with demographic changes there, rejecting Pakistan’s protests. The hope in establishment circles that last year’s backchannel between the two countries would yield a thaw or even rapprochement, turned to disappointment when no headway was made on any front beyond the re-commitment by both neighbors to observe a ceasefire on the Line of Control.

Working level diplomatic engagement will continue on practical issues such as release of civilian prisoners. But prospects of formal dialogue resuming are slim in view of Delhi’s refusal to discuss Kashmir. This is unlikely to change unless Islamabad raises the diplomatic costs for Delhi of its intransigent policy. Islamabad’s focus on Afghanistan last year meant its diplomatic campaign on Kashmir sagged and was limited to issuing tough statements. Unless Islamabad renews and sustains its international efforts with commitment and imagination, India will feel no pressure on an issue that remains among Pakistan’s core foreign policy goals.

With normalization of ties a remote possibility, quiet diplomacy by the two countries is expected to focus on managing tensions to prevent them from spinning out of control. Given the impasse on Kashmir, an uneasy state of no war, no peace is likely to continue warranting Pakistan’s sustained attention.

In balancing ties with Saudi Arabia and Iran, Pakistan should consider how to leverage possible easing of tensions between the long-standing rivals — of which there are some tentative signs. With Crown Prince Mohammed bin Salman keen to use economic power to expand his country’s diplomatic clout by making strategic overseas investments, Pakistan should use its political ties with Riyadh to attract Saudi investment through a coherent strategy. Relations with Iran too should be strengthened with close consultation on regional issues especially Afghanistan. The recent barter agreement is a step in the right direction.

In an increasingly multipolar world, Pakistan also needs to raise its diplomatic efforts by vigorous outreach to other key countries and actors beyond governments to secure its national interests and goals.

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