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Not guns vs butter

Not guns vs butter

Author: K Subrahmanyam
Publication: The Economic Times
Date: February 8, 2002

Indian economists, policy makers and media may not recognise it but India will be formulating its defence budget in a new international security paradigm.

It is now acknowledged all over the world that the main threat to international security is terrorism and all major powers, the US, EU, Russia, China, Japan and India have a mutuality of strategic interest in dealing with it and eliminating it.

The economic consequences that followed the terroristic attack of 9/11 highlighted that it is unrealistic to look at security and economic development in two separate compartments.

Security and economic development are symbiotically related especially when the threat arises from international terrorism driven by religious extremism.

Unfortunately part of the debate in this country on defence and development is still on the basis of conventional wisdom of guns vs butter.

For the first time in his State of the Union message the US President has talked of America working with Russia, China and India in ways the US had never before done to achieve peace and prosperity.

This declaration signals that cold war rivalries are over and secondly it also indicates that US is looking at India, not in terms of Indo-Pakistan equation but as a global player.

In the war against international terrorism India and the US are already co-operating in terms of security of sea lanes in the Malacca Straits, Bay of Bengal, Indian Ocean and the Arabian Sea.

Even as a high-powered Russian team headed by the Russian deputy prime minister is holding discussions on transfer of nuclear submarines, aircraft carrier and naval bombers, the US Seventh Fleet is conducting naval talks with the Indian Navy. The US and Russia do not look at India's defence co-operation with the other power in the old bi-polar rivalry terms.

The epicentre for the war against terrorism is Pakistan. After clearing up Afghanistan of Al Qaeda and Taliban the focus is now on Pakistan where a large proportion of Al Qaeda and Taliban cadres have slipped in.

They have very close interaction with the Pakistan army, Inter Services Intelligence and the jehadi groups. While the Americans hope to coerce Pakistani military leadership to reverse course and give up the decades-old culture of terrorism and extremism, it cannot be ruled out that the international war against terrorism centred in Pakistan may take a long time.

The war will have to be fought in novel ways using military, diplomatic, and economic containment and not conventional military occupation.

The war will continue till Pakistan undergoes a cultural revolution and becomes a moderate Islamic state and a responsible member of the international community. While the US may be using soft language vis-a-vis Pakistan at this stage, the massive US force deployment in this region after Afghanistan was cleared can leave no one in doubt for what purpose those forces are meant.

Therefore, the Indian defence planning has to take into account India's role in international security framework and be prepared to discharge that role in the new globalised security paradigm.

It so happens that the new international threat of terrorism originates from India's sibling adversary, Pakistan, and when the present international war on terrorism is brought to an end there should be a partial solution to the threat to Indian security arising out of 57 years of Pakistan's religious extremism and terrorism. However, India is also required to accept new global security responsibilities.

Of the major powers, the US, European Union and Japan are linked by military alliance even after the end of cold war. NATO and Russia are partners in peace and are within a common security framework of OSCE (Organisation of Security and Co-operation in Europe).

Therefore, Russia too is today a part of the global security framework sharing the common value system of democracy and market economy.

There is no doubt that the US is the sole super power and for at least the next 50 years there is no likelihood of US dominance in military, economic, and technological terms being challenged by any other power or combination of powers.

The Europeans, Russians and Chinese accept this imperative. They also recognise that if they are to influence the US in its global policies it has to be based on their building up their own respective autonomous defence capabilities and not on total reliance on the US. The European Union wants to build its own autonomous defence capability.

Foreign direct investment would flow into India only if it is seen as a global player and secure from terrorist threats. Deng Xiao Peng's China could not have had the higher economic growth and foreign investments except on the basis that China was seen as a partner in security terms by the US, Japan and EU in the '80s and '90s.

Since then, in the more recent years, China is no longer seen as much as a partner as it was then. Some of our difficulties with the Southeast Asian, West Asian and SAARC neighbours are due to their perception that in global security framework India is not with the main stream.

When that perception is rectified and India is seen playing such a global role that is bound to have its impact on the political and economic relations of these neighbours with India.

Therefore, the Indian defence capabilities need to be modernised and made adequate to enable this country to play such a role. It would take a change in mindset, adjustments in our foreign and defence policies and long range defence planning.

All this will take time and if Indian economy were to grow at around 6-7 per cent this can be achieved without the defence budget exceeding 3 per cent of GDP (At present the Indian defence expenditure is around 2.6 per cent of the GDP.) over the next 5-6 years and then stabilising it at around that level.

The political leadership is still to educate the country with an overall assessment of the new international security situation and India's place and role in it. Without such an education the forthcoming defence budget, with a significant increase, will come under the usual criticism of development being sacrificed for defence.
 


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