Friday, 12 April 2013 | G Parthasarathy | in Edit
The prestige and credibility of India is at its lowest in recent years. Whether on Sri Lanka or Bangladesh or the Maldives, our foreign policy is floundering. The Prime Minister received shoddy treatment in Durban recently
Nations lose international influence and power when they are either militarily unprepared or floundering economically. We are still to recover psychologically from the humiliating military defeat inflicted by China in 1962. The 1962 conflict led to an adventurist, Field Marshal Ayub Khan, seeking to seize Kashmir and failing to do so, in a largely inconclusive conflict in 1965. This conflict had disastrous diplomatic consequences, with the once friendly Soviet Union seeking the role of a mediator, while readying to supply weapons to Pakistan. India became a classical basket case, dependent on the Soviet Union for arms and on the US for International Monetary Fund assistance, to deal with a balance of payments crisis. With a begging bowl in hand, India sought American food aid, as chronic food shortages led people to the verge of starvation.
Things turned for the better when agriculture revived, through a ‘Green Revolution’ spearheaded by then Union Agriculture Minister C Subramaniam. The Soviet Union came out in support of an economically self-reliant, rhetorically Left-leaning Government of India. The dark shadows of 1962 receded when, backed by the Soviet Union, India emerged victorious, when it was pitted against a Nixon-Mao-Yahya Axis, in the 1971 Bangladesh conflict. By the early 1990s, however, the Soviet Union collapsed and we had to mortgage our gold reserves to stay afloat. A malevolent Clinton Administration was prepared to go to any length to pressure the Russian Federation to end cooperation — even in space science — with India, in a relentless effort to “cap, roll-back and eliminate”, India’s nuclear weapons programme. Our prestige sank so low that we were trounced and humiliated in an ill-advised contest against Japan for a seat in the UN Security Council in 1997.
It was only when economic reforms and liberalisation initiated by Prime Minister Narasimha Rao took effect, that India’s economy recovered for the country to withstand global economic sanctions, which India faced after the nuclear tests of 1998. A chastened Bill Clinton visited India once he realised that it was pointless to sanction an economically vibrant India. The NDA Government under Atal Bihar Vajpayee accelerated the growth rate and observed the fiscal prudence required, to not let runaway inflation break the backbone of people. The UPA1 built on all these developments. Global nuclear apartheid against India ended, with India assuming a larger global profile by its participation in forums like G8, G20 and BRICS. But, the UPA political dispensation remains dominated by powerful elements that are still wedded to populism and fiscal irresponsibility. The much-touted loan waiver to farmers and a series of so called ‘entitlements’ orchestrated by the extra-constitutional National Advisory Council, led to an era of fiscal profligacy. Few remembered that the economic disaster in 1991 followed a populist loan waiver for farmers by former Prime Minister VP Singh.
This unbridled populism saw the deficit of the Union Government — net of asset sales — rise to 6.6 per cent of GDP by March 2011, from 3.9 per cent in a brief span of time. Growth in the last quarter plummeted to 4.5 per cent. A populist Environment Minister brought in regulations destined to inordinately delay project clearances. The lack of transparency in decision-making has led to a situation where, despite vast indigenous reserves of coal, imports of the product are rising alarmingly. With prices of imported coal going up, power shortages are becoming endemic even in traditionally well-administered States like Andhra Pradesh and Tamil Nadu. Industrial growth is slowing nationwide. New investments are becoming scarce, as Indian entrepreneurs seek greener pastures abroad. Every rating agency, foreign investor and foreign Government knows that India has become a difficult investment destination.
It is now commonly mentioned that BRICS would be better served if India is replaced by Indonesia, where economic management is prudent and sound and the investment climate free of delays investors experience in India. The current joke is that, while corruption is present everywhere in emerging markets, one sees ‘efficient corruption’ in China, and ‘inefficient corruption’ in India. While the Union Minister for Finance has promised to reduce the fiscal deficit, India faces an equally serious problem of a burgeoning current account deficit, recently estimated at 6.7 per cent of GDP, larger in percentage terms than it was during the crisis of 1991. In these circumstances, it was somewhat ludicrous for New Delhi to be advocating a BRICS Investment Bank, in which India will be a relatively minor player, given China’s vast reserves and potential. This at a time, when observers believe that we may have to seek a bailout from the West-dominated IMF, whose influence the BRICS Bank is designed to erode.
The shocking reports from Durban that South Africa’s President Jacob Zuma did not bother to meet our Prime Minister, while he was busy feting President Xi Jinping and President Vladimir Putin, are disturbing. Moreover, while other Heads of Government were housed comfortably in Durban, Mr Manmohan Singh was made to stay 40 km away from the conference venue. Lack of due courtesy and consideration to an Indian Prime Minister are not issues we should ignore.
The prestige and credibility of India is at its lowest in recent years. In the Maldives, we have been outmanoeuvred by a wily President, Mr Mohamed Waheed, who skilfully bought insurance from China and Pakistan. On Sri Lanka, we have vacillated in the United Nations Human Rights Council, between sticking to a principled position of opposing intrusive, country specific resolutions and the compulsions of coalition in Tamil Nadu. In the process, we have gratuitously offended a friendly neighbour and not persuaded public opinion in Tamil Nadu of the merits of our stand. We should ask ourselves whether our diplomacy has really helped a friendly Prime Minister, facing serious challenges from Islamic extremists in Bangladesh.
There are serious challenges we will confront approaching the conclusion of the American ‘end game’ in Afghanistan in December 2014. Are we clear on what needs to be done to meet the challenge of an ISI-backed Taliban and its affiliates? Moreover, we could well see the Pakistan Peoples Party-led coalition replaced in Pakistan, by a Nawaz Sharif-led coalition, which includes rabidly anti-Indian elements from the Islamic parties. With the defence budget reduced to 1.79 per cent of the GDP and essential acquisitions delayed or postponed, do we have the capabilities to deter adventurism and terrorism from across our borders? These issues will, hopefully, receive attention, when the Budget Session of Parliament resumes.
http://www.dailypioneer.com/columnists/edit/stature-falling-like-ninepins-all-around.html
NS RAJARAM • 21 hours ago −
India's real humiliation was when Sonia Gandhi effortlessly took control of the Congress-led UPA Government. I was in U.K. shortly after that and I was repeatedly told that Indians had reverted to their old habit of asking foreigners to run the country for them and pointed to Mir Jafar and Clive. Beyond that my British friends pointed out that they sent their best-- aristocrats like Lord Curzon, Mountbatten and the like and not a street cafe waitress of no education and culture like Sonia Gandhi.
Hard to rebut-- for Indians seem to have surrendered body and and sould and country to this woman of no qualifications to run the country but surrounded by people looting India like never before.
Harry Haran NS RAJARAM • 12 hours ago
So well said Mr. Rajaram. All Indians can only pray - that our rural folks - who comprise the 60% of our vote bank have some common sense to believe, if & when Modiji addresses them. The Urban voters are never going to vote for this govt. This pathetic & most disgusting party called "Khangress" by right thinking people - should be eliminated FOREVER and never allowed to contest elections. So should its many alllies like SP, BSP, NCP, TMC, NC etc. etc.
We all can only pray to the Supreme one that may HE deliver us from this evil party.
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Joseph Chacko • a day ago
A must read for all right thinking Indians.
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Singh Ishtpreet • 16 hours ago −
UPA II has led down the image of India in every aspect. Whether foreign affairs, corruption, murders of police officers, rapes, robberies etc, no field is left unturned to violate the society. Judiciary is not allowed to work independently. Money and Political pressure is above all, fear of law and punishment is in murky. Faith of people is in drain. Union government is least bother about the foreign affairs. The countries either weak or strong does not regard us anymore, the example we have seen in the recent BRICS meeting happened in Durban. Our prime minister Dr Manmohan Singh was given least consideration. Our internal stability is declining day by day, so we cannot expect much about foreign affairs. Talking about corruption, it is there all over the world. Eradicating corruption is not possible but it should not violate the society and people of nation.
Vikram Venkatesh • 5 hours ago
Status and stature are difficult to maintain, and we have had to win it forcibly. Unlike individual politics, which can be based upon people, national politics is based wholly on perception, and the fact we have turned ourselves into a country, not a civilization, have limited ourselves to one country whereas other cultures have diversified themselves, and our politics internal and civilizational have been vitiated by all sorts of inimical elements, are hindrances. We need to recapture that cultural hegemony, which will surely come fast once we realize what is going on, and then stature will re-establish itself.
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Vikram Venkatesh Vikram Venkatesh • 5 hours ago
Please see my posts on Sri Swapan's recent essay.
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Fact • 10 hours ago
India is again at the crossroads like in 1947. Will it choose Narendra Modi or Sonia Gandhi? A re-run of the Sardar Patel and Pandit Nehru saga.
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Hardcore capitalist • 11 hours ago −
Excellent article. Waiting for Mr. Modi to bury the con party deep into the earth's core never to see the light again for a minimum of hundred years
Ramakant Tiwari • 14 hours ago −
It is extremely unfortunate. When this Italian woman wins election, herd of fools in Rae Bareli dance on roads. Ancient Sanatan Hindu Rashtra....Ishvara must be playing a cruel joke on this country.
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sardindukurup • 9 hours ago
This is no wise a slippery slope which i think cannot be climbed.'"L