The Political Economy of China’s Defence Modernisation

World over, differences exist about the impact of military expenditure. While development economists consider excessive military expenditure as wastage, many defence economists have a different view. With the defence versus1 development debate unending, China makes a unique contribution. While China’s defence expenditure is not well known, the hinese experience shows that investments in development do provide an expanded economic base subsequently, which will take care of defence needs.

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Myanmar: America’s Next Rogue State?

There are embryonic signs that Washington is all set to turn the heat on Myanmar. In a marked departure, UN Security Council unanimously agreed on December 2, 2005 to a US request for a “one-off” briefing by Secretary-General on “the deteriorating situation” in Myanmar. The US request followed Tatmadow’s extension of Aung San Suu Kyi’s (ASSK) house arrest and General Assembly Committee’s recent approval of a resolution condemning human rights in Myanmar.

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India and the East Asian Summit

The inaugural East Asian Summit (EAS), touted as groundbreaking, commenced on December 14 in Kuala Lumpur comprising 16 nations— the 10 ASEAN countries, China, Japan, India, Australia and New Zealand with Russian President Vladimir Putin making a special appearance. The EAS Declaration, like many issued before in the region, is wide-ranging: from political and security cooperation, infrastructure development, financial issues, further liberalisation of regional trade and investment, poverty eradication to fighting epidemics. Nonetheless, inter alia, three points need underscoring.

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Railway to Lhasa: An Assessment

On October 12, 2005, China announced the completion of a railway line to Tibet—one of the world’s highest train routes. This railway line climbs 5,072m (16,640ft) above sea level and runs across Tibet’s snowcovered plateau—dubbed the roof of the world. China’s official Xinhua news agency while celebrating the achievement said that the equivalent of USD 3 billion had been spent on the challenging 1,118km (710-mile) section, after four years of construction.

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Delhi Blasts, Terror Networks and India’s Internal Security

A series of bomb blasts in Delhi on October 29, 2005, that left 66 dead and 220 injured has, once again, underlined the acute vulnerability of major Indian cities to international terrorism. The blasts in Sarojini Nagar, Paharganj and a Delhi Transport Corporation (DTC) bus in Govindpuri were well-orchestrated, nearly simultaneous, and targeted crowed markets and city centres.

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Partnership in a Balance of Power System

The popular perception in India is that with the end of the Cold War and the collapse of one of the two Superpowers, the bipolar international system has become unipolar. The United States is now assumed to be an unchallenged sole Superpower. Consequently, it is felt in some quarters that the Indo-US Joint Statement of July 18, 2005 is a case of US recruiting India as one of its allies for possible future containment of China. Such a perception nurtures suspicion about the US and its motivation about its attempts to befriend India.

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The Afghan Elections and the Bonn Process: Assessing India’s Options

The thrice postponed Afghan parliamentary and provincial council elections are finally over. But, is the Bonn-mandated political process over? With the US intent on cutting down its troop levels in Afghanistan this year, is the ‘war on terror’ in Afghanistan also over? It is being said that the Bonn process has concluded with the September 18, 2005 elections. If so, then it is pertinent to examine the end-result of the four-year political process and the recently concluded elections.

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Gaza Pullout: From Disengagement to Engagement

Israel has finally pulled out from the Gaza strip and parts of the West Bank marking an end to 38 years of illegal occupation of the territory. Israel occupied this land, known as the Occupied Territories, (OT) after winning the 1967 Arab-Israeli war. However, this pullout, under what is known as the unilateral disengagement plan, originally conceived by Israeli Prime Minister Ariel Sharon, has deeper implications and wider ramifications than simply returning the occupied land to the Palestinians.

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Equity Oil and India’s Energy Security

While the efforts of ONGC-Videsh and Indian Oil Corporation are laudable, there is still some distance our firms have to travel to catch up with global competition. I urge our oil and gas PSUs to think big, think creatively and think boldly in this context…They have to be more fleet-footed in making use of global opportunities, both on the supply and demand side, I find China ahead of us in planning for the future in the field of energy security. We can no longer be complacent and must learn to think strategically, to think ahead and to act swiftly and decisively.

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Nuclear Non-Proliferation and International Security

I welcome this opportunity to present to such a distinguished audience some views on issues relating to nuclear non-proliferation and international security. At the outset, I would like to thank the Institute for Defence Studies and Analyses (IDSA) for inviting me to deliver this address. The Institute has a well deserved reputation as our premier strategic think tank and quite appropriately, they have focused on a subject that not only has a strong contemporary relevance but represents a long term challenge for India and the international community.

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