September 20, 2009 — drsubrotoroy
I have had slight experience with the so-called multilateral financial institutions — attending a conference and helping to produce a book on Asia & Latin America with the ADB back in Hawaii in the 1980s, and being a consultant for some months at the World Bank and the IMF in Washington DC in the 1990s. The institutions seemed to me gluttonous and incompetent though I did meet a dozen good economic bureaucrats and two or three who were excellent in Washington. The “Asian Development Bank” (under Japan’s sway as the Word Bank is under American sway and the IMF under European sway) was reputedly worst of the three, though the Big Daddy of wasteful intellectually corrupt international bureaucracies must be the UN itself, especially certain notorious UN-affiliates around the world.
Now there are newspapers reports the ADB has apparently voted, under Communist Chinese pressure, to prevent itself from
“formally acknowledging Arunachal Pradesh as part of India”.
This should be enough for any self-respecting Government of India to want to give notice to the ADB’s President that the Republic of India is moving out of its membership. Ongoing projects and any in the pipeline need not be affected as we would meet our debt obligations. There is no reason after all why a treaty-defined entity may not conclude deals with non-members or former members and vice versa.
But New Delhi’s bureaucrats may not find the guts to think on these lines as they would have to overcome their personal interests involved in taking up the highly lucrative non-jobs that these places offer. They will need some political kicking from the top. Thus in 1990-91 I had said to Rajiv Gandhi that “on foreign policy we should ‘go bilateral’ with good strong ties with individual countries, and drop all the multilateral hogwash”… “We do not ask for or accept public foreign aid from foreign Governments or international organizations at “concessional” terms. Requiring annual foreign aid is an indication of economic maladjustment, having to do with the structure of imports and exports and the international price of the Indian rupee. Receiving the so-called aid of others, e.g. the so-called Aid-India Consortium or the soft-loans of the World Bank, diminishes us drastically in the eyes of the donors, who naturally push their own agendas and gain leverage in the country in various ways in return. Self-reliance from so-called foreign aid would require making certain economic adjustments in commercial and exchange-rate policies, as well as austerity in foreign-exchange spending by the Government….”
Today, nineteen years later, I would say the problem has to do less with the structure of India’s balance of payments than with trying to normalise away from the rotten state of our government accounts and public finances. I have thus said “getting on properly with the mundane business of ordinary government and commerce… may call for a gradual withdrawal of India from all or most of the fancy, corrupt international bureaucracies in New York, Washington, Geneva etc, focussing calmly but determinedly instead on improved administration and governance at home.” We need those talented and well-experienced Indian staff-members in these international bureaucracies to return to work to improve our own civil services and public finances of the Union and our more than two dozen States.
As for India developing a Plan B (or a Plan A) in dealing with Communist China, my ten articles republished here yesterday provide an outline of both.
May 31, 2008 — drsubrotoroy
China’s force & diplomacy: The need for realism In India
First published in The Statesman, Editorial Page Special Article, May 31 2008,
It is almost as large an error to overestimate Chinese military aims and capabilities as it has been to underestimate them. On 8 May 2008 at Tokyo’s Waseda University, China’s President Hu Jintao declared in a speech broadcast live “China has taken a defensive military policy and will not engage in any arms race. We will not become a military threat to any country and we will never assert hegemony or be expansionistic”. This was as clear and authoritative a reply as possible to the June 2005 statement in Singapore of the then American defence minister Donald Rumsfeld: “China appears to be expanding its missile forces, allowing them to reach targets in many areas of the world, not just the Pacific region, while also expanding its missile capacities here in the region. Since no nation threatens China, one must wonder: why this growing investment?”
By 2006, Rumsfeld’s generals were saying China had “the greatest potential to compete militarily with the United States,” and could “field disruptive military technologies that could over time offset traditional US military advantages absent US counter strategies”. The “sizing” of China’s military by American and other Western analysts became a parlour game ~ one with major business implications since the threat perceived or misperceived from China affects American decisions on the size of its own military.
As recently as 13 May 2008, the Wall Street Journal carried opinion that China’s military expansion demanded America have a 1000-ship navy not a 280-ship one, 40 aircraft-carriers not 11, 1000 F-22 aircraft not 183. Exaggerating China’s military and the threat posed by it to the world can mean big business for militaries opposing it!
Communist China’s physical, political and psychological domination of independent India since the 1950s has been achieved more by diplomacy, subterfuge and threat of force than actual military conflict. In its first phase, the policy was expressed clearly by the Chinese Ambassador to New Delhi on 16 May 1959 when he told India’s Foreign Secretary: “Our Indian friends, what is your mind? Will you agree to our thinking regarding the view that China can only concentrate its main attention eastward of China but not south-westward of China, nor is it necessary for it to do so?…. Friends, it seems to us that you, too, cannot have two fronts. Is it not so? If it is, here then lies the meeting point of our two sides. Will you please think it over?” (BN Mullick, Chinese Betrayal, p. 229).
At the time, Pakistan was in military alliances with the USA through CENTO and SEATO, and the Pakistan-China alliance was still years away. The Chinese had used subterfuge to construct their road linking Tibet and Sinkiang through Aksai Chin, ignoring India’s sovereignty, and were now suggesting they had no interest in fighting India because their major military interests were to their east as India’s were towards Pakistan.
The second phase was the short border conflict itself in 1962-63, which consolidated China’s grip on occupied territory in Aksai Chin while establishing its threat to the Brahmaputra Valley that has been perpetuated to this day. The third phase is represented by the 27 November 1974 conversation between Henry Kissinger and Deng Xiaoping, recently made publicly available:
“Deng : There’s something very peculiar about Indian policy. For example, that little kingdom Sikkim. They had pretty good control of Sikkim. Why did they annex it?
Kissinger : It is a good thing India is pacifist, I hate to think (of what they would do) if they weren’t. (Laughs).
Deng : Sikkim was entirely under the military control of India.
Kissinger : I haven’t understood Sikkim. It is incomprehensible.
Deng : After the military annexation, their military position was in no way strengthened.
Kissinger : They had troops there already.
Deng : And they haven’t increased their troops since. We published a statement about it. We just spoke for the cause of justice.
Kissinger : Is it true that you set up loudspeakers to broadcast to the Indian troops on the border? It makes them very tense. (Laughs)
Deng : We have done nothing new along the borders, and frankly we don’t fear that India will attack our borders. We don’t think they have the capability to attack our borders. There was some very queer talk, some said that the reason why the Chinese issued that statement about Sikkim was that the Chinese were afraid after Sikkim that India would complete the encirclement of China. Well, in the first place we never feel things like isolation and encirclement can ever matter very much with us. And particularly with India, it is not possible that India can do any encirclement of China. The most they can do is enter Chinese territory as far as the Autonomous Republic of Tibet, Lhasa. And Lhasa can be of no strategic importance to India. The particular characteristic of Lhasa is that it has no air-because the altitude is more than 3,000 metres.
Kissinger : It’s a very dangerous area for drinking mao tai (a Chinese hard liquor).
Deng : Frankly, if Indian troops were able to reach Lhasa, we wouldn’t be able to supply them enough air! (Laughter)
Kissinger : I don’t think their intention is with respect to Tibet, their immediate intention is Nepal.
Deng : That is correct. They have been recently exercising pressure on Nepal, refusing to supply them oil. It is the dream of Nehru, inherited by his daughter, to have the whole subcontinent in their pocket.
Kissinger : And to have buffer zones around their border…. It is like British policy in the 19th Century. They always wanted Tibet demilitarized.
Deng : I believe even the British at that time didn’t make a good estimate of whether there was enough air. (Laughter)
Kissinger : I think an Indian attack on China would be a very serious matter that cannot be explained in terms of local conditions, but only in terms of a broader objective….”
The attitude that is revealed speaks for itself, and has been essentially continued by Deng’s successors in the next decades, especially Jiang Zemin and Hu Jintao. It is because China does not perceive a military threat from India that it has agreed to military exercises with us ~ exercises which, if anything, reinforce their psychological dominance by helping to spook our military’s morale. During this third phase also, China went about systematically creating a major military threat to India in its support of Pakistan’s military, exploiting our subcontinent’s communal conflicts fully to its own strategic advantage.
China has been engaged for more than a decade now in a massive exercise of modernisation of its armed forces, improving productivity, technology, organisation and discipline while trying to cut corruption. It has a right to do so, and such modernisation does not in and of itself signal aggressive intent. The last aggressive war China fought was almost 30 years ago against Vietnam. It is possible that what simply explains the military modernisation (besides conflict with Taiwan) is China’s awful history of being exploited by foreign powers over the centuries.
Indian analysts have expressed concern about nuclear submarines based in Hainan; but where else would China put them? We delude ourselves if we think we are the guardians of the Straits of Malacca. We may do better being concerned to try to modernise, improve productivity and reduce corruption in our own forces, as well as integrate them better with national goals as China has done instead of continuing to maintain them in a rather old-fashioned colonial / imperial manner.
February 21, 2008 — drsubrotoroy
This map accompanied my article Lessons from the 1962 War published in The Sunday Statesman of January 13 2008: