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About Chellaney

Professor, strategic thinker, author and commentator

Engage Burma, Don’t Isolate

Burma sanctions don’t work

By BRAHMA CHELLANEY
The Japan Times, March 14, 2008

Burma today ranks as one of the world’s most isolated and sanctioned nations — a situation unlikely to be changed by its ruling junta scheduling a May referendum on a draft constitution and facilitating U.N. special envoy Ibrahim Gambari’s third visit in six months.

The referendum and planned 2010 national elections are part of a touted road map to democracy. But the iconic opposition leader, Aung San Suu Kyi, may not be able to contest because the still-undisclosed, military-drawn constitution — in the making for 15 years — is likely to bar anyone who married a foreigner.

Burma is an important state. This is not a Bhutan or a Brunei but a country that boasts
the largest Indochina land area.
It is a resource-rich nation that can become an economic powerhouse if it can remedy its poisoned politics and ethnic divides and dispel international sanctions. And it is a land bridge between South and Southeast Asia. Such is its vantage location that Burma forms the strategic nucleus for India, China and Southeast Asia.

The military has run Burma, once the world’s leading rice exporter, for 46 long years. Indeed, Burma’s present problems and impoverishment can be tracked back to the defining events of 1962, when General Ne Win deposed elected Prime Minister U Nu, one of the founders of the nonaligned movement.

The callous Ne Win, a devotee of Marx and Stalin, virtually sealed off Burma, banning most external trade and investment, nationalizing companies, halting foreign projects and tourism, and kicking out the Indian business community.

It was not until nearly three decades later that a new generation of military leaders, motivated by Deng Xiaoping’s modernization program in China, attempted to ease Burma’s international isolation through tentative economic reforms without loosening political controls. Such attempts came much after the military’s brutal suppression of the 1988 student-led protests that left several thousand dead or injured — a bloodbath that coincided with the numerology-devoted Ne Win’s announcement of retirement on the "most auspicious" day of Aug. 8, 1988 (8.8.88).

While Western aid cutoffs and other penal actions began no sooner than the Burmese junta refused to honor the outcome of the 1990 elections, won by the detained Suu Kyi’s party, Burma became a key target of U.S. sanctions policy only in the Bush years.

The new missionary zeal in the U.S. approach, reflected in the 2003 Burma Freedom and Democracy Act banning all imports from that country and several subsequent punitive executive orders, has occurred because of the White House president’s wife. Laura Bush’s Burma fixation has put the policy establishment in a bind: The more the United States seeks to punish the regime, the more it undercuts its ability to promote political reforms in Burma, and the more its actions threaten to disrupt the lives of ordinary Burmese.

As then Deputy Assistant Secretary of State Matthew Daley told Congress in late 2003, many garment workers made jobless by U.S. sanctions "have entered the flourishing illegal sex and entertainment industries" in Burma or neighboring states.

While prohibiting new investment by American citizens or entities, Washington has protected the business interests of Chevron Corp., which acquired a stake in the Yadana natural-gas export project in Burma when it bought Unocal Corp. in 2005. Because Unocal’s investment in the project, in which France’s Total SA holds the biggest stake, predated the imposition of U.S. sanctions, Chevron has used a grandfather clause to stay put in Burma — one of the few large Western companies left there.

The junta, through its remarkable shortsightedness, has only aided Laura Bush’s activism. Its crackdown last September on monk-led protests — which, according to a U.N. special rapporteur’s report, left at least 31 dead — invited a new round of U.S.-inspired international sanctions. The regime not only continues to detain Suu Kyi, now 62, but also has isolated itself from the public by moving the national capital to remote Nay Pyi Taw, located between Rangoon and Mandalay.

The big losers have been Burma’s 58 million people, bearing the brunt of the sanctions, while the only winner is China, a friend of every pariah regime.

Democracy offers the only path to bringing enduring stability to diverse Burma. Genuine participatory processes are necessary to promote ethnic reconciliation in a country that has been at war with itself since its 1948 independence. While the ethnic Burmans, of Tibetan stock, constitute the majority, the non-Burman nationalities (including the Shan and the largely Christian Karen, the first to take up arms) make up one-third of the population.

The oversize Burmese military fancies itself as the builder of a united Burma. Given that ethnic warfare began no sooner than Japanese-trained General Aung San (Suu Kyi’s father) persuaded the smaller nationalities to join the union, the military has used the threat of Balkanization to justify its hold on politics.

It trumpets its successes between the late 1980s and early 1990s in crushing a four-decade-long communist insurgency and concluding ceasefire agreements with other underground groups, with just a few outfits left in active resistance. The period since has been viewed by the military as a time to begin state-building, while to the opposition it has been an unending phase of political repression.

Given Burma’s potent mix of ethnicity, religion and culture, democracy can serve as a unifying and integrating force, as in India. After all, Burma cannot be indefinitely held together through brute might. But make no mistake: The seeds of democracy will not take root in a stunted economy, battered by widening Western sanctions.

The junta restored the traditional name Myanmar for nationalistic reasons as a break from the colonial past. But Myanmar, meaning the Burman land, carries an ethnic connotation, and Suu Kyi’s party continues to use the name Burma. A name change ought to have the imprimatur of an elected government citing a national consensus in favor.

Sanctions have sent Burmese society into a downward spiral of poverty and discontent while strengthening the military’s political grip. Today, under the cumulative weight of sanctions, Burma has come full circle: Its 74-year-old senior general, the ailing and delusional Than Shwe, an astrology aficionado, has amassed powers to run a virtual one-man dictatorship in Ne Win-style.

Burma illustrates that sanctions can hurt those they are supposed to protect, especially when they are enforced for long and shut out engagement.

Such is Laura Bush’s ability not only to influence U.S. policy but also to orchestrate an international campaign in which she announced Dec. 10 that "India, one of Burma’s closest trading partners, has stopped selling arms to the junta."

New Delhi has neither confirmed or denied that. Who can contradict a first lady whose fury on Burma reputedly flows from a meeting with a Karen rape victim and information from a relative with an erstwhile connection to that country?

If the Burmese are to win political freedoms, they need to be first freed from sanctions that rob them of jobs, cripple their economic well-being and retard civil-society development. It is a growing civil society that usually sounds the death knell of a dictatorship.

Years of sanctions have left Burma bereft of an entrepreneurial class but saddled with the military as the only functioning institution — to the extent that the spokesperson for Suu Kyi’s party admits the military will have an important role to play in any future government.

To avert looming humanitarian catastrophes, the same international standard applicable to autocratic, no-less-ruthless regimes in next-door China, Bangladesh and Laos should apply to Burma — engage, don’t isolate.

Brahma Chellaney, a professor of strategic studies at the New Delhi-based Center for Policy Research, is the author, most recently, of "Asian Juggernaut: The Rise of China, India and Japan."

 

The Japan Times: Friday, March 14, 2008
(C) All rights reserved

Rudderless Rudd’s uranium-export decision throws a spanner in Indian goal

Rudd’s uranium reversal irks India

Bruce Loudon, New Delhi | March 03, 2008

The Australian

KEVIN Rudd was lashed yesterday by one of India’s most influential foreign affairs commentators over the Prime Minister’s ditching of his predecessor’s pledge to sell uranium to the emerging economic powerhouse.

Brahma Chellaney launched a searing denunciation of Mr Rudd’s "abstruse, retrograde ideology" over his reversal of a decision made last year by John Howard to sell uranium to India.

Mr Chellaney accused Mr Rudd in The Asian Age newspaper of striking "a jarring note amid a growing convergence of strategic interests" between the two countries.

Under the headline "Rudd’s rudderless reversal", Mr Chellaney noted that Mr Rudd was the free world’s first Mandarin-speaking head of government, saying he "has made plain his intent to cosy up to the world’s largest autocracy, China, while nullifying an important decision that his predecessor took to help build a closer rapport with the world’s largest democracy."

The stridency of Mr Chellaney’s attack reflects the widespread annoyance at high levels in New Delhi over the Rudd Government’s reversal on the uranium issue.

The Indian Government was irked when, in January, it sent special prime ministerial envoy Shyam Saran to see Foreign Minister Stephen Smith in Perth and found itself being bluntly told – even though it had not asked – there would be no sale of Australian uranium to India.

Indian sources insist Mr Saran was taken aback by the minister’s forthright stance as he had gone to Perth only to brief Mr Smith on New Delhi’s negotiations with Washington over its civilian nuclear deal and specifically not to ask to buy Australian uranium.

"Chellaney is saying what many of us feel about the Rudd Government’s pathetic hypocrisy on this issue," one highly-placed official told The Australian yesterday.

The criticism of the Rudd Government is in sharp contrast to the significant strides made in Indo-Australian relations in the Howard years, which are praised by Mr Chellaney.

But in overturning the decision to sell uranium to India, Mr Chellaney says, Mr Rudd has been "notably regressive".

"Driven by misplaced non-proliferation zealotry, Rudd not only went ahead with cancelling Howard’s decision, but his Government also continues to parrot the same lame excuse, as if he has not read the Non-Proliferation Treaty text.

"In touting its ideological resolve to uphold the NPT, the Rudd Government wants to be more Catholic than the Pope. Far from the NPT forbidding civil exports to a non-signatory, the treaty indeed encourages the peaceful use of nuclear technology among all states.

"Rudd has no qualms about selling uranium to China but will not export to India, even though the latter is accepting what the former will not brook – stringent, internationally verifiable safeguards against diversion of material to weapons use."

Mr Rudd’s office would not be drawn on claims his Government had mishandled Australia’s relationship with India.

A spokesman for the Prime Minister said only that it remained government policy not to sell uranium to countries who had not signed the NPT.

Shadow foreign minister Andrew Robb said the Government’s handling of the relationship with India had been "clumsy".

Additional reporting: Paul Maley

http://www.theaustralian.news.com.au/story/0,25197,23308272-2702,00.html

The Butterfly Chase: Rearmament, not disarmament, looms large

Stop Chasing Illusions

 

Pursuing nuclear disarmament is a good pastime for retired men.

 

Brahma Chellaney

Times of India, March 11, 2008

 

Nearly a century after chemical arms were introduced in World War I and more than six decades following the nuclear incineration of Hiroshima and Nagasaki, the world is at the threshold of new lethal and precision weapons, as underlined by the ongoing research on lasers, information weapons, space-based platforms, anti-satellite weapons and directed energy systems. Technological forces are now shaping geopolitics and power equations in a way unforeseen before in history. 

 

We live in a Hobbesian world, with power coterminous with national security and success. The global power structure reflects this reality. Only countries armed with intercontinental-range weaponry are United Nations Security Council permanent members, while those seeking new permanent seats have regionally confined capabilities and thus are likely to stay condemned as mere aspirants. Japan, with one-tenth of the population, has a bigger economy than China, but the latter, because of its rising military prowess, gets more international respect.

 

The past century was the most momentous in history technologically, with innovations fostering not just rapid economic change, but bringing greater lethality to warfare. Consequently, the 20th century was the bloodiest. Weapons of mass destruction (WMD) and missiles came to occupy a central military role. In the new century, the advance of technology and the absence of relevant safeguards or regimes evoke possible scenarios of deadly information and space warfare.

 

Such are the challenges from the accelerated weaponization of science that instead of disarmament, rearmament today looms large on the horizon, with the arms race being extended to outer space. Take, for example, America’s February 20 destruction of a crippled satellite by missile strike. Having criticized China’s January 2007 anti-satellite (ASAT) weapon test — the first ASAT kill by any power in more than two decades — the US set out to be the first to knock out a space-based asset from a mobile platform at sea, in an operation that resembled shooting down an ICBM, except that the target was larger and easier to destroy.

 

In a Cold War-reminiscent tone, outgoing President Vladimir Putin last month vowed that Russia will field new strategic weapons because “a new arms race has been unleashed in the world”.  Alluding to the US pressing ahead with a missile shield in Eastern Europe and working on new warheads, Putin declared: “We didn’t start it … funnelling multibillions of dollars into developing weapon systems”. The same day, the Russian foreign minister raised the spectre of “hundreds of thousands of missile interceptors all over the world … in the foreseeable future”.

 

            Disarmament fell off the global agenda long ago, with the UN’s Conference on Disarmament (CD) bereft of real work for nearly 12 years now. Yet, some in India continue to chase illusions. More flattering attention has been paid in India than anywhere else to two newspaper articles written by four senior ex-US officials, who in office were votaries of unbridled nuclear might but who now, while peddling a nukes-free world as a distant goal akin to an invisible mountaintop, suggest modest steps for US forces (like changing the antediluvian Cold War posture), only to advocate more rigorous non-proliferation.

 

India has a rich history of floating disarmament proposals that come back and haunt it as non-proliferation pacts. It was India that put forth the ideas of an NPT and CTBT. Add to that its record of not acting when the time is right. Had it tested when it acquired a nuclear-explosive capability in the mid-1960s, it would have beaten the NPT trap. Had Indira Gandhi pressed ahead and not baulked after the May 1974 test, India would not have faced a rising tide of technology sanctions for the next quarter-century. No nation perhaps has paid a heavier price for indecision than India.

 

India’s priority today should its security, given that it still does not have a minimal, let alone credible, nuclear deterrent against China, which is rapidly modernizing its arsenal. Yet India has placed its future deterrent capability at risk by concluding a nuclear deal with the US whose touted energy benefits are dubious and dispensable. It is also unable to control its proverbial itch to win brownie points, as shown by its recent submission of a seven-point proposal to the deadlocked CD, calling for, among other things, the outlawing of nukes. Such ardour is baffling, given that India imports virtually all its conventional weapons and is in no position to deter China conventionally in the long run.

 

Pursuing disarmament is like chasing butterflies — enjoyable for some retired old men but never-ending and beyond the pale. Nuclear weapons, as the last US posture review stated, will continue to play a “critical role” because they possess “unique properties”. Until such time as nukes remain the premier mass-destruction technology, disarmament will stay a mirage. The Chemical Weapons Convention became possible only when chemical arms ceased to be militarily relevant for the major powers and instead threatened to become the poor state’s WMD. Considering the rapid pace of technological change, a new class of surgical-strike WMD could emerge, even as nuclear weapons, with their unparalleled destructive capacity, stay at the centre of international power and force.

 

The writer is a strategic affairs analyst.

 

© Times of India, 2008

A jarring note in fast-growing India-Australia ties

Rudd’s rudderless reversal

 

Australia’s new government needs to deal pragmatically with India after its ideologically driven policy reversal on uranium exports

 

Brahma Chellaney

Asian Age, March 1, 2008

The rapidly developing India-Australia relationship has been underscored by the various agreements reached in recent years — from a trade and economic framework to cooperation on defence and counterterrorism. India has emerged as Australia’s fastest-growing merchandise export market, even as an increasing number of Indian students enrol in Australian educational institutions (more than 65,000 last year alone).

 

Amid a growing convergence of strategic interests, however, new Australian Prime Minister Kevin Rudd has struck a jarring note. Rudd, the free world’s first Mandarin-speaking head of government, has made public his intent to cosy up to the world’s largest autocracy, China, while nullifying an important decision his predecessor took to help build a closer rapport with the world’s largest democracy.

 

Before he was voted out of office last November after 11 years as prime minister, John Howard had agreed to sell uranium ore to both China and India. Rudd has no problem with uranium exports to Beijing but, in one of his first actions in office, scrapped Howard’s decision to sell yellowcake to New Delhi, although such transfers (unlike to China) were to be covered by stringent international and bilateral safeguards.

Rudd’s reversal — egged on by the anti-uranium export lobby within his Labour Party — closes the door on India even if the 45-nation Nuclear Suppliers’ Group carves out an exemption for India from its rules. Considering that Australia holds the world’s largest uranium reserves and annually exports more than 10,000 metric tonnes of processed ore, the action undercuts India’s endeavour to prise open international civil nuclear trade. It thus represents a major setback to Indian diplomacy.

On some issues, Rudd has taken welcome steps — from ratifying the Kyoto Protocol on global warming (an action that leaves the United States isolated as the only industrialized country not to have done so) to seeking to open a new chapter in Australia’s troubled relations with its indigenous, still-marginalized peoples by offering a national apology for past wrongs, albeit without addressing the issue of compensation (which led one newspaper writer to say it meant, “Blackfellas get the words, the whitefellas keep the money”).

On India, however, Rudd’s approach hasn’t been forward-looking. Indeed, his justification for disallowing uranium exports has been notably regressive. Consider the following:

Rudd has linked Australia’s U-turn on uranium exports to India’s non-membership in the Nuclear Non-Proliferation Treaty, although the NPT carries no prohibition on civil nuclear cooperation under safeguards with a state outside its fold.

While it is true the Labour Party had pledged to scrap uranium exports to India if voted to power, election rhetoric often gives way to sober judgement when in office. Given that the Labour’s hostility to exports was founded on a legally untenable argument — India’s staying out of the NPT — Rudd, as PM, ought to have reviewed that opposition in the context of Australia’s geopolitical interests.

Instead, driven by misplaced non-proliferation zealotry, Rudd not only went ahead with cancelling Howard’s decision, but his government also continues to parrot the same lame excuse, as if it has not read the NPT text. In the words of Foreign Minister Stephen Smith, “The current government … will not authorize the export of uranium to a country which is not a party to the NPT.”

 

In touting its ideological resolve to uphold the NPT, the Rudd government wants to be more Catholic than the Pope. Far from the NPT forbidding civil exports to a non-signatory, the treaty indeed encourages the peaceful use of nuclear technology among all states. All it requires is safeguards application, which its Article III (3) stipulates shall not hamper “international cooperation in the field of peaceful nuclear activities, including the international exchange of nuclear material and equipment for the processing, use of production of nuclear material for peaceful purposes in accordance with the provisions of this Article and the principle of safeguarding set forth in the Preamble of the Treaty.”

 

The NPT has no explicit or implicit injunction against civil cooperation with a non-signatory. Rather, it enjoins its parties to positively facilitate “the fullest possible exchange of equipment, materials and scientific and technological information for the peaceful uses of nuclear energy” (Article IV) so long as safeguards are in place on all peaceful nuclear activity.

 

Any restriction on civil cooperation with a country like India is not in the NPT but in the revised 1992 rules of a US-led cartel, the NSG. The NSG has amended its rules more than once since it was secretly formed in 1974, and today its founder, America, has come full circle by conditionally proposing that the group exempt India from its no-military-facility rule intended for non-nuclear-weapons states.

The Rudd government has opened itself to accusations of hypocrisy by deciding not to sell Australian uranium but at the same time saying it could back an NSG exemption that would allow other suppliers to export yellowcake to India.

 

Canberra has been at pains to clarify that its policy reversal does not mean it will oppose an NSG rule-change for India. On that issue, in Smith’s words, “the Australian government has not come to a concluded view on those matters. We will give consideration to those matters and will do that in an orderly way, having listened to the views of the Indian government … and the U.S. government.” Canberra, in fact, has hinted it won’t obstruct an NSG waiver.

 

However, in rushing to abandon uranium exports to India — that too on the pretext of wishing to defend the NPT — the Rudd government made no similar effort to go through “an orderly way” and solicit the views of others.

More significantly, how can Canberra justify its policy reversal and yet hold out the promise of backing an NSG waiver? Strange as it seems, Canberra won’t export uranium to India but may end up backing an NSG exemption that would encourage other potential suppliers to do business with New Delhi and “weaken” Rudd’s much-loved NPT.

While emphasizing an internationalist approach in foreign policy, Rudd has sought to plough a lonely furrow on India.

In promoting Australia’s greater participation in multilateral institutions and agreements, Rudd’s foreign-policy catchwords have been inclusion and internationalism. He moved quickly to ratify the Kyoto Protocol and announce the withdrawal of Australia’s 550 combat troops in Iraq by mid-2008.

Yet the policy reversal on India stresses exclusion and embargo as the key words. Worse, it puts Australia in the unenviable position of having taken the lead to isolate a rising India at a time when all other powers are courting New Delhi.

The Rudd government’s justification, inopportunely, comes out as a red herring to not reconcile with India’s decade-old status as a nuclear-armed state. Rudd sees no contradiction in keeping Australia ensconced under American nuclear and conventional deterrence while refusing to accept India’s sovereign right to build nuclear security in a highly troubled neighbourhood without any breach of its legal commitments. In that sense, he unflatteringly presents himself in holier-than-thou colours.

Australia has derived important security and other benefits from its alliance with Washington, and Australian public opinion strongly supports the so-called Anzus pact. Pragmatic considerations have prompted Rudd, despite his party’s left-wing support base, to affirm the centrality of the alliance with the US and to keep the roughly 1,000 Australian troops in Afghanistan. He could have taken an equally practical view of India’s security dynamics.

Rudd has no qualms about selling uranium to China but will not export to India, even though the latter is accepting what the former will not brook — stringent, internationally verifiable safeguards against diversion of material to weapons use.

Howard sought to boost uranium exports, declaring in 2006 that Australia, with its abundant natural resources, “had the makings of an energy superpower” — a point highlighted by the fact that it already is the world’s largest coal exporter and is set to become the second-largest supplier of liquefied natural gas. As Howard put it, “With close to 40 per cent of the world’s known low-cost uranium deposits, for Australia to bury its head in the sand on nuclear energy is akin to Saudi Arabia turning her back on global oil developments.” At present, uranium makes up two-fifths of Australia’s energy exports in thermal terms.

Before it decided to export yellowcake to India, the Howard government finalized its uranium deal with China through two accords in 2006 — one a civil nuclear cooperation agreement and the other setting out the transfer terms. The uranium deal with India would have involved similar accords but on far more stringent terms because New Delhi has pledged to accept a host of legally irrevocable obligations that Beijing will not consider, including permanent international inspections on all civilian nuclear facilities.

While in China the civilian and military nuclear programmes overlap, India has, under the nuclear deal with the US, announced a watertight segregation of its civil and military parts. For Washington, the deal indeed has been a means to try and build, in the words of Australian analyst Robert Ayson, “a de facto NPT around India,” with the Howard government conditioning exports to New Delhi’s implementation of the various elements of the Indo-US deal. By contrast, exports to China will carry “zero real controls,” as the Australian Financial Review put it.

Yet the Rudd government has reversed policy on India while displaying the same zealousness as its predecessor to sell uranium ore to China. Canberra has turned a blind eye to the fact that, in contrast to New Delhi’s squeaky-clean record in not proliferating nuclear technology to other states, Beijing for long has played proliferation as a strategic card, with US intelligence identifying it as the “most significant supplier” of items and technology related to weapons of mass destruction (WMD).

Given that Beijing is rapidly modernizing its nuclear arsenal and maintaining an opaque nuclear posture, Howard and now Rudd have overlooked concerns that uranium exports are likely to result in the diversion of more resources for China’s nuclear-weapons programme. Rather than insist that the International Atomic Energy Agency verifiably ensure that Australian uranium is used for nuclear-power generation, not for weapons purposes, Canberra has merely gone by the peaceful-use promise of a country that stands out for its egregious WMD record.

This is manifest from the two accords — one titled, “Agreement Between the Government of Australia and the Government of the People’s Republic of China on the Transfer of Nuclear Material,” and the other headlined, “Agreement Between the Government of Australia and the Government of the People’s Republic of China for Cooperation in the Peaceful Uses of Nuclear Energy.”

The accords do not require Beijing to go beyond the largely-symbolic inspections it accepts under a “voluntary safeguards” agreement with the IAEA. The facilities under “voluntary safeguards” can be withdrawn from inspection at any time of Beijing’s choosing. Also, Australian uranium will first go to Chinese fuel-fabrication facilities, which remain outside IAEA safeguards. As Annex B of the transfer accord states, it is only after “conversion to uranium hexafluoride” that China will use Australian-origin material in designated plants that may be subject to token IAEA inspections.

The new Rudd-introduced duality in export policy unfortunately signals that Canberra is more concerned about India’s rudimentary nuclear-weapons capability than with the growing sophistication and reach of China’s nuclear arsenal.

Indo-Australian cooperation can be elevated to close strategic bonds through forward-thinking pragmatism. Abstruse, retrograde ideology, as manifest in the uranium-exports reversal, can hardly aid Australian interests with a country that will remain a significant power in the Indian Ocean and a fast-growing market for Australian minerals and fuels. Rudd, with the China fixation he carries from his diplomatic career, needs to demonstrate a more-balanced appreciation of Australia’s long-term interests in an Asia that is unlikely to countenance any power’s hegemonic ambitions. Before long, he will have to deal pragmatically with the realities of Indian power without his NPT reflexes.

© Asian Age, 2008

Australia-India-Japan-U.S. Quadrilateral Initiative: An idea that will survive the current vicissitudes

Obstacles to overcome in the development of a concert of Asia-Pacific democracies
By BRAHMA CHELLANEY

The Japan Times, February 20, 2008

The new Australian government is signaling a wish to turn its back on an initiative bringing four major democracies of the Asia-Pacific together, even as U.S. Sen. John McCain, the presumptive Republican presidential nominee, has vowed to institutionalize that venture.

Whatever its future, the nascent Australia-India-Japan-U.S. “Quadrilateral Initiative” symbolizes the likely geopolitical lineup in the coming years.

At a time when a qualitative reordering of power is reshaping international equations, major players in the Asia-Pacific are playing down the risk that contrasting political systems could come to constitute the main geopolitical dividing line, potentially pitting a China-led axis of autocracies against a constellation of democracies. The refrain of the players is that pragmatism, not political values, would guide their foreign-policy strategy. Yet the new Great Game under way plays up regime character as a key driver.

Ordinarily, the readiness to play by international rules ought to matter more than regime form. But regime character often makes playing by the rules difficult.

For example, as revealed by a new book, “China’s Great Leap,” edited by Minky Worden, China won the right to host the 2008 Olympics on the plea that awarding the Games would help it improve its human-rights record. Instead, Beijing has let loose new political repression in the runup to the Games. But just as the 1936 Berlin Olympics set the stage for Nazi Germany’s collapse, the 2008 Games could help trigger radical change in China.

It is established that democracies rarely go to war with each other, even though democratic governments may not be more wedded to peace than autocracies.

Today, China’s best friends are fellow autocracies, including pariah states, while those seeking to forestall power disequilibrium in the Asia-Pacific happen to be on the other side of the values-based divide. In that light, political values could easily come to define a new geopolitical divide.

What may seem implausible globally, given America’s lingering tradition of propping up dictators in the Muslim world, is thus conceivable in the Asia-Pacific theater as a natural corollary to the present geopolitics. But for the divergent geopolitical interests at play, the differing political values would not matter so much.

After all, a major challenge in Asia is to banish the threat of hegemony by any single power (as Europe has done) so that greater political understanding and trust could be built. This challenge pits two competing visions.

On one side is the mythical “Middle Kingdom” whose foreign policy seeks to make real the legend that drives its official history — China’s centrality in the world. Its autocrats believe that in their calculus to make China a “world power second to none,” gaining pre-eminence in Asia is an essential step. On the other side is the interest of many Asian nations and outside powers in a cooperative order founded on power equilibrium.

It was China that took the lead in 2001 to form the Shanghai Cooperation Organization (SCO) to help unite it with Eurasian strongmen in a geopolitical alliance. Designed originally to bring the Central Asian nations — the so-called Stans — under the Chinese sphere of influence, the SCO is today shaping up as a potential “NATO of the East.”

Yet, when Australia, India, Japan and the United States last year started the Quadrilateral Initiative, Beijing was quick to cry foul and see the apparition of an “Asian NATO.” A Chinese diplomatic protest to each Quad nation followed.

Through sustained diplomatic pressure, mounted on the back of growing economic clout, Beijing has sought to wilt the Quad. A new opening has come with the Mandarin-speaking Kevin Rudd being elected Australia’s prime minister.

Rudd is so mesmerized by his Mandarin fluency that he feels an inexorable itch to cozy up to Beijing.

In a strange spectacle, the Rudd administration has proclaimed it will sell uranium to Beijing (without adequate safeguards against diversion to weapons use) but not to New Delhi, even if the Nuclear Suppliers’ Group (NSG) carves out an exemption for India. The previous John Howard government, which was in office for 11 years, had concluded uranium deals with both China and India.

Rudd’s reason for overturning the decision to export uranium to India is that New Delhi has not signed the Nuclear Nonproliferation Treaty. As Australian Foreign Minister Stephen Smith explained at a Feb. 1 news conference in Tokyo, “The current government will not authorize the export of uranium to a country which is not a party to the NPT.”

That rationale is seriously flawed: The NPT has no explicit or implicit injunction against civil cooperation with a non-signatory. The treaty actually encourages the peaceful use of nuclear technology among all states. All it requires is safeguards application, which its Article III (3) stipulates shall not hamper “international cooperation in the field of peaceful nuclear activities, including the international exchange of nuclear material and equipment for the processing, use of production of nuclear material for peaceful purposes in accordance with the provisions of this Article and the principle of safeguarding set forth in the Preamble of the Treaty.”

Any restriction on civil cooperation with a country like India is not in the NPT, but it is in the revised 1992 rules of the U.S.-led NSG, a cartel that was formed outside the framework of international law and the United Nations. The Rudd government, interestingly, has not come out against the proposed NSG exemption for India. On that issue, in Smith’s words, “the Australian government has not come to a concluded view on those matters. We will give consideration to those matters and will do that in an orderly way, having listened to the views of the Indian government and the U.S. government.”

In rushing to abandon uranium exports to India — that too on the pretext of wishing to uphold the NPT — Rudd, however, made no similar effort to go through “an orderly way” and solicit the views of others. Indeed, underscoring a holier-than-thou attitude, Rudd, despite his leftwing political base, sees no contradiction in pledging to keep Australia ensconced under American nuclear and conventional deterrence, yet refusing to accept India’s sovereign right to build nuclear security in a highly troubled neighborhood without any breach of its legal commitments.

With the Australian economic boom being driven by Beijing’s ravenous resource imports — which helped China to overtake Japan and the U.S. as Australia’s largest trading partner in 2007 — the Howard government wasn’t exactly enthused by the Quad proposal when it was first floated. Beijing had already taken a dim view of Canberra’s U.S.-backed bilateral and trilateral defense tie-ups with Tokyo. But Howard was persuaded by the U.S. to take part in the initiative.

Now the Quad’s future has come under a cloud following the Rudd administration’s statements. With the visiting Chinese foreign minister by his side, Smith said in Canberra on Feb. 5: “One of the things which caused China concern last year was a meeting of that strategic dialogue plus India, which China expressed some concern with. And I indicated when I was in Japan that Australia would not be proposing to have a dialogue of that nature.” Smith later called the Quad meeting of last May, held on the sidelines of the ASEAN Regional Forum (ARF) gathering in Manila, “a one-off” affair.

Australia’s growing wariness, admittedly, may be no different from India’s. After having called liberal democracy “the natural order of social and political organization in today’s world,” Indian Prime Minister Manmohan Singh said on the eve of his China visit last month that the Quad “never got going.” Even the U.S. has publicly downplayed the initiative, whose real architect, Japanese Prime Minister Shinzo Abe, who had spoken of an “arc of freedom and prosperity” stretching across Asia, was driven out of office last fall.

Yet, it is significant that the Quad staged weeklong war games in the Bay of Bengal five months ago, roping in Singapore. Those war games came close on the heels of major military exercises involving practically all SCO members in Russia’s Chelyabinsk region. The Quad was not intended to be a formal institution. McCain, however, in a recent article published in Foreign Affairs, said: “As president, I will seek to institutionalize the new quadrilateral security partnership among the major Asia-Pacific democracies: Australia, India, Japan and the United States.” McCain also has larger ambitions: “A ‘worldwide League of Democracies’ that could be a “unique handmaiden of freedom.”

The more modest Quad, founded on the historically valid hypothesis of democratic peace, is supposed to serve as an initial framework to promote security dialogue and interlinked partnerships among major Pacific Rim democracies. Such collaboration is already being built.

As an idea, the Quad will not only survive the current vicissitudes, but it also foreshadows what is likely to come. With the Asia-Pacific region becoming more divided in the face of conflicting strategic cultures, major democracies are likely to be increasingly drawn together to help advance political cooperation and stability through a community of values.

Brahma Chellaney, a professor of strategic studies at the privately funded Center for Policy Research in New Delhi, is the author, most recently, of “Asian Juggernaut: The Rise of China, India and Japan” (HarperCollins).
The Japan Times: Wednesday, Feb. 20, 2008
(C) All rights reserved

U.S.-India nuclear deal’s future cloudy

Rice does not Hyde the truth

The US secretary of state has laid bare the centrality of the controversial Hyde Act. The Nuclear Suppliers’ Group, like the U.S., is likely to grant India, at best, only a narrow, conditional waiver from its rules.

Brahma Chellaney

Asian Age, February 18, 2008

However inadvertently, US Secretary of State Condoleezza Rice, in one stroke, has deflated New Delhi’s public claims through her unequivocal assurance to Congress that any exemption for India from the Nuclear Suppliers’ Group rules will be “completely consistent with the obligations of the Hyde Act.” As Rice put it, “We will support nothing with India in the NSG that is in contradiction to the Hyde Act.”

The reality is that no administration in Washington can ignore the Hyde Act, a 41-page omnibus of assorted India-specific conditions, several of them unrelated to civil nuclear matters. Even the bilateral 123 Agreement India has concluded with the U.S. complies with the provisions of the Hyde Act, with Undersecretary Nicholas Burns publicly complimenting New Delhi for being “good enough to negotiate on this basis — that anything we did had to fall within and respect the legal guidelines that Congress had set forth”.

Yet, to deflect rising criticism at home, New Delhi resourcefully came up with a variety of explanations — from the assertion that Hyde Act has binding and non-binding sections to the claim that the 123 Agreement, once ratified, will override all other laws. It was beguilingly stated that the Hyde Act, as an American law, cannot bind India, leaving out the more-relevant point that it binds the supplier-state to enforce tough, legislatively decreed conditions on the recipient.

What Rice has stated is just a reiteration of what the Hyde Act obligates Washington to do in the NSG — to ensure that the 45-nation, US-led cartel does not in any way dilute the India-directed conditions prescribed by the Act. But because few have read that long, intricate legislation, her words serve as a much-needed reality check for India.

Long before the Hyde Act was passed, the Bush administration submitted to the NSG in March 2006 a draft “pre-decisional” proposal to carve out an India-related exemption. Even that draft, mirroring the terms of the official bill the administration had submitted days earlier to Congress for an India waiver, sought to subject New Delhi to a lasting test ban.

Section 4 of the US draft to the NSG proposed that civil trade with New Delhi be allowed “as long as the participating government intending to make the transfer is satisfied that India continues to fully meet all of the aforementioned non-proliferation and safeguards commitments, and all other requirements of the NSG guidelines.” One of the commitments specified was for India to indefinitely “continue its moratorium on nuclear testing.” Another commitment was for India to embrace international inspections “in perpetuity,” leaving no room for corrective measures if India was faced with a Tarapur-style fuel cut-off.

Once the Hyde Act was enacted, the US draft to the NSG, of course, got overtaken by that legislation and its grating stipulations, including a clear prohibition on the transfer of enrichment, reprocessing and heavy-water equipment or technology even under safeguards, an immediate termination of all nuclear trade with India if it tested, and the US enforcement of additional “end-use” and “fallback” safeguards.

As a result, Washington is now obliged to ensure that any NSG rule-change for India is consistent with those congressionally mandated conditions. One of the Hyde Act prerequisites for the nuclear deal to win congressional ratification is that any NSG rule-change mirror the scope and rigour of the India-specific standards of compliance the legislation has set. The law indeed demands that an NSG exemption for India neither be less stringent than what it has prescribed nor take effect before the US Congress has given its final consent to the deal.

The legislation’s clause-by-clause explanatory notes state that no NSG decision should “disadvantage US industry by setting less strict conditions … than those embodied in the conditions and requirements of this Act.” The concern is that if the NSG fails to set US-style conditions for civil nuclear commerce with India, New Delhi could do an end-run around Washington and buy reactors from Russia and France, which are overly eager to bag lucrative contracts. The Act asserts the US “possesses the necessary leverage” in the NSG to “ensure a favourable outcome.”

So, as and when the NSG takes up the India case, the US is certain to back an exemption soaked in Hyde Act-style conditions. As Rice acknowledged, “We’ll have to be consistent with the Hyde Act or I don’t believe we can count on the Congress to make the next step.” But it will be virtually impossible for an NSG exemption to replicate all the Hyde Act stipulations. That Act, a unique, country-specific nuclear law, comes not only with preconditions but also post-conditions.

The Act mandates that after the deal passes congressional muster and takes effect, the post-implementation conditions will become operational — from an annual presidential certification to ensuring India’s “full compliance” with a non-nuclear cartel like the Missile Technology Control Regime. The president, besides having to submit a comprehensive “implementation and compliance report” within 180 days of the deal’s entry-into-force, is required to cyclically certify that India is continuing to meet all the stipulated conditions.

As a large, unwieldy association that meets behind closed doors, the NSG is in no position to emulate the procedures set by the Hyde Act, whose intent is to keep India on good behaviour by subjecting continued civil commerce to congressional oversight and overtly hanging the Damocles’ sword of cessation of cooperation. But the NSG, under American persuasion, is likely to grant New Delhi an exemption that, like the US waiver, is conditional and partial, meeting the supplier-states’ commercial interest to win multibillion-dollar reactor contracts, yet without giving India access to civil fuel-cycle technology or equipment.

If New Delhi presses ahead with the deal, the poorly-negotiated 123 Agreement is going to come to haunt it. The outcome of the NSG deliberations would be influenced by the several conditions India has willingly embraced in that accord.

These include: (i) the supplier’s right to seek the return of transferred material and items if it determines the recipient is in breach of any non-proliferation commitment; (ii) New Delhi’s grant of an open-ended right to the supplier to suspend supplies forthwith simply by issuing a one-year termination notice; (iii) India’s agreement to route not just spent fuel of US-origin but all “foreign nuclear material” through a new dedicated reprocessing facility that will take years to complete; (iv) instead of securing the right to reprocess upfront, India is to negotiate a separate agreement with the US on reprocessing-related “arrangements and procedures” after the new facility has been built; (v) in the absence of an enforceable link between perpetual international inspections and perpetual fuel supply, India’s much-touted right to “corrective measures” has been rendered cosmetic, with the accord forbidding the lifting of safeguards in any situation, even if the supplier cut off fuel supply; and (vi) the recipient placing itself at the mercy of the supplier also by not insisting on a provision, as in the Japan-US 123 Agreement, for an international arbitral tribunal to deal with any dispute.

It is because of the flawed 123 Agreement that India finds itself on the back-foot in the negotiations with the International Atomic Energy Agency. Having failed in the 123 Agreement to secure a binding fuel-supply assurance or a spelled-out right to corrective steps, New Delhi has sought ornamental concessions from the IAEA in the safeguards accord so as to be able to play to the public gallery at home. These include a cosmetic reference to assured fuel supply in the preamble and a dubious right to take corrective measures short of withdrawal from safeguards.

The pressure now is to get India to speedily conclude a perpetual safeguards accord with the IAEA on the terms the Agency is seeking to dictate. Once that happens, India will have little role, other than as a bystander, in the NSG and congressional processes.

© Asian Age, 2008

Australia reverses its decision to export uranium ore to India

Uranium woes

Australia’s U-turn on uranium exports to India represents a serious setback to the Indian drive to open up international civil nuclear trade.

Brahma Chellaney

Asian Age, February 16, 2008

New Delhi has cited a pressing need to source natural uranium from overseas as a key driver of its nuclear deal with the United States. Yet, when the new Labour Party-led government in Australia conveyed its decision last month not to export uranium to India, New Delhi did not react. Indeed, even as Australian Prime Minister Kevin Rudd’s administration publicly defends its reversal of the previous Liberal-led government’s agreement to sell uranium to India, mum is the word from New Delhi.

The uranium deal was to involve a separate safeguards accord between Canberra and New Delhi, along with a civil nuclear cooperation agreement.

            How significant a setback for India this reversal constitutes can be seen from the fact that Australia, with 38 per cent of the world’s lowest-cost uranium reserves, currently accounts for 22 per cent of the global exports. “A doubling of uranium exports by 2015 is realistic,” according to an official Australian report released in late 2006, a decade after Canberra changed policy and approved new uranium-mining projects, two in South Australia state and a third in the Northern Territory.

Australia exports virtually all its production of processed uranium ore — also called U3O8, or yellowcake — because it has no real domestic needs in the absence of a single commercial nuclear power plant. Its U-turn eliminates a key potential supplier for India in a tight international uranium market, where demand is outstripping supply.

Global uranium demand now runs at about 80,000 metric tonnes per year, while mined output is roughly 60,000 tonnes, leaving a shortfall of around 20,000 tonnes, which has been met from utility stockpiles or from decommissioned nuclear warheads in Russia. Although Australia and Canada are the world’s main uranium producers, Russia became a major exporter by tapping the inventories it built up by down-blending highly enriched uranium extracted from retired Soviet-era weapons.

Today, in addition to the 439 nuclear power reactors operating around the world, a further 29 plants are under construction. France, a large uranium importer, has taken the lead to aggressively export power reactors, with President Nicolas Sarkozy turning into a nuclear salesman during a recent Middle Eastern tour, seeking to dispense reactors like charity.

Most commercial nuclear plants in operation or under construction are Light Water Reactors (LWRs), which are fuelled by low-enriched uranium (LEU), with a first fill normally demanding around 600 tonnes of natural uranium and each subsequent refuelling consuming about 200 tonnes.

The price for uranium ore in the world market has come under pressure due to several factors, including a drying up of the excess uranium supply from dismantled Soviet-era weapons, inventory constraints among power companies and rising international demand, which is projected to grow annually by about 5 per cent. Yellowcake sold for less than $12 a pound in 2003. Today its international price for immediate delivery — the so-called spot price — is $75 a pound. Uranium had actually raced to a record spot price of US$135 in 2007, on speculative pressure built up by hedge funds and other institutional investors. Although the price has fallen back, it is still far above long-term averages.

Add to this picture another element: The world’s proven uranium reserves are limited and unless breeder technology is embraced in a big way or the higher-grade ores reserved for military programmes are freed, the known uranium stocks are likely to last barely 85 years, according to estimates in the Red Book, jointly published by the Organization for Economic Cooperation and Development and International Atomic Energy Agency.

 

It is possible, however, as is happening in the oil-and-gas sector, that sustained high prices would spur more exploration, mining and supply. The IAEA believes high prices could help raise production by 10 per cent a year. But if the new supply takes years to enter the market, the price of uranium is bound to climb steeply, adding to the cost of nuclear-generated electricity, whose commercial attraction has already taken a beating through escalating equipment costs and manufacturing bottlenecks.

 

This has been highlighted by the Franco-German Areva’s time and cost overruns to complete Finland’s much-touted Olkiluoto 3 — the first nuclear plant to be built in Europe since 1991. With the $4 billion original price tag facing a $2.1 billion cost escalation, Olkiluoto 3 is set to become the most-expensive nuclear plant in history — a point missing from Sarkozy’s feverish sales pitch in India and elsewhere.

 

The significance of Australia’s withdrawal as an agreed supplier to India is also underscored by another fact: Uranium, unlike other commodities, does not trade on an open world market. Rather, in keeping with political controls, buyers and sellers negotiate contracts privately, with the spot price published every Friday by two market consultants, Ux Consulting and TradeTech. The spot market actually is very small, with most trading occurring through governmental intervention under long-term contracts, where prices typically are marked down. 

 

Nuclear trade indeed constitutes the world’s most politically-regulated and monopolized commerce, with a tiny cartel of state-guided firms controlling all reactor, fuel and component sales.

 

Against that background, the government-to-government deal that New Delhi had with the previous John Howard administration in Canberra was the only way to secure Indian access to the vast uranium resources of a country where BHP Billiton and Rio Tinto, two of the world’s largest and diversified mining companies, are involved in uranium extraction. A new Canadian-run project at Honeymoon, South Australia, is scheduled to start annually producing 400 tonnes of U3O8 later this year, while $81 million is being spent to assess the possible doubling of production at the BHP Billiton-owned Olympic Dam — the world’s largest-known uranium deposit.

 

The Australian deal was also important because the world’s other major uranium producer, Canada, while agreeing to “pursue further opportunities for the development of the peaceful uses of atomic energy” with New Delhi, has yet to decide whether it would allow its mining firms to export yellowcake to India. Ottawa may be leaning toward a position to not come in the way of a Nuclear Suppliers’ Group exemption for India. The opening of its uranium exports, however, is a separate matter demanding a Cabinet decision to lift a 33-year-old ban on nuclear trade with India. Canada’s Cameco Corporation alone holds almost 20 per cent of the global uranium market.

 

Another supplier-state, Russia, is committed to meeting the LEU needs of reactors it is building or intends to construct in India. But beyond such fuel arrangements to underpin reactor exports, Moscow has little capacity to meet the supply needs of India’s indigenous, natural uranium-fuelled Pressurized Heavy Water Reactors (PHWRs). In fact, with its own nuclear-power industry beset with problems, Russia’s first two reactors in India are running far behind the agreed construction schedule.

 

Owing to its rising domestic demand, Russia’s uranium exports are set to peter out. Moscow is seeking not only to expand its nuclear-power programme, but also to build a new generation of nuclear warheads in response to the U.S. pressing ahead with a missile defence system in Eastern Europe and designing a new warhead for the D5 missiles, carried on Trident submarines. Two decades after the Berlin Wall’s fall, Russia and the U.S. together still retain some 25,000 nuclear weapons, including 6,000 long-range weapons deployed on hair-trigger alert.

 

Outgoing President Vladimir Putin last week vowed that Russia would field new strategic weapons because “a new arms race has been unleashed in the world.” Putin declared: “We didn’t start it … funnelling multibillions of dollars into developing weapon systems.” With rearmament looking certain, Russia has been aggressively seeking uranium imports.

 

Last September, Canberra signed an agreement with Moscow allowing Australian mining companies to export uranium ore for use in Russian power reactors. Moscow is also tapping the uranium resources of Kazakhstan, which has larger recoverable reserves than Canada but lags significantly in production and export. Foreign investment and technical assistance, however, helped expand uranium production in Kazakhstan by 25.3 per cent last year.

 

Kazakhstan’s state-owned agency, Kazatomprom, which controls all uranium exploration and mining, has roped in several foreign partners, including companies from Russia, France, Canada, China, the US, Japan and South Korea. Two joint mining ventures with Kazatomprom are to give Moscow access to 6,000 tonnes of U3O8 every year. Kazatomprom is also set to become the main uranium supplier to China, having agreed to export 2,000 tonnes per year from two mines in which Chinese state companies hold a 49 per cent stake. India, in contrast, figures nowhere in the Kazakh picture.

 

While America, France and Japan will remain the world’s three largest uranium importers, the yellowcake needs of China, Russia and India are set to expand.

 

India’s uranium crunch is self-made. Despite new deposits having been discovered in Andhra Pradesh, Meghalaya and elsewhere, the central governments between 1991 and 1998 starved the nuclear programme of necessary funds, crippling uranium projects and other expansion plans. As nuclear chief Anil Kakodkar publicly admitted last October, “The present fuel demand and supply mismatch would not have arisen had these projects been pursued in the same spirit with which Dr. Homi Bhabha started activities at Jaduguda” — the site of India’s first uranium mine and mill.

According to the Red Book, India has 64,000 tonnes of reasonably assured uranium reserves and an estimated additional 30,000 tonnes in situ — sufficient to meet the current modest demand for long.  At present, all mining and milling is done in Jharkhand state, at Jaduguda and Bhatin (since 1967), Narwapahar (since 1995) and Turamdih (since 2002).  Last year, India’s first open-cut mine was commissioned at Banduhurang (Jharkhand), along with a new mill at Turamdih. Two new Jharkhand mines are coming up at Bagjata and Mohuldih.

Despite environmental clearances, however, the opening of new mines in Andhra Pradesh and Meghalaya has been held up by grassroots activism over land-acquisition and rehabilitation issues and other concerns. In Andhra, the Lambapur-Peddagattu project in Nalgonda district is building one open-cut and three small underground mines, while an underground mine and a mill are to be developed at Tummalapalle in Kadapa district. In Meghalaya, uranium is to be mined at Domiasiat-Mawthabah and Nongstin.

Australia, unlike distant Canada or landlocked Kazakhstan with no freight corridor to India, would have been New Delhi’s preferred uranium supplier.

Canberra’s policy reversal leaves India on shaky ground. In the absence of a single committed long-term supplier of yellowcake, can New Delhi proceed to permanently place eight indigenous power reactors under external inspection or begin to import plants of a type that are going to be perpetually dependent on foreign fuel? And will it still be ready to assume international obligations of a kind that no nuclear-weapons state has accepted thus far?

 

© Asian Age, 2008

Why the Australia-India-Japan-U.S. Quadrilateral Initiative makes sense


The contours of a new geopolitical line-up in the
Asia-Pacific are becoming clearer

Differential
equations

The Hindustan Times, February 13, 2008

By Brahma Chellaney

At a time
when a
qualitative
reordering of power is reshaping international equations, major players in the
Asia-Pacific are playing down the risk that contrasting political systems could
come to constitute the main geopolitical dividing line, potentially pitting a
China-led axis of autocracies against a constellation of democracies. The
refrain of the players is that pragmatism, not political values, would guide
their foreign-policy strategy. Yet the new Great Game under way plays up regime
character as a key element.

India has already faced such a values-based
geopolitical divide in its region, but singly. The Sino-Pakistan nexus against India is unique:
Never before in history has one country armed another with nuclear weapons and
missiles so as to contain a third nation with which the two share common
frontiers. Authoritarian bonds have also been employed in more recent years to
try and open a new Chinese flank against India
via Burma.

Indeed, the stated aim of the 1962 Chinese invasion — “to teach India
a lesson” — was rooted in a geopolitical divide centred on incompatible political
values. For Mao Zedong, that war was a means to humiliate and demolish India as an alternative democratic model to
totalitarian China.
The 32-day aggression, which Harvard professor Roderick MacFarquhar has dubbed "Mao’s India War",
helped boost China’s image
at India’s
expense.

More
than 45 years later, the speed and scale of Asia’s economic rise is bringing
new players, including India,
into the world’s geopolitical marketplace. The eastward movement of power and
influence, once concentrated in the West, has been accompanied by a high-stakes
competition for new strategic tie-ups and greater access to resources, making
strategic stability a key concern in Asia.

In the absence of a common identity or institutional structures, one
challenge Asia faces is to develop shared
norms and values, without which no community can be built. Yet, with only 16 of
the 39 Asian countries free, according to Freedom House, creating common norms is a daunting
task, especially when some states still flout near-universal values.

A bigger Asian challenge is to banish the threat of hegemony by any single power (as Europe
has done) so that greater political understanding
and trust could be built. This challenge pits two competing
visions. On one side is the mythical ‘Middle Kingdom’
whose foreign policy seeks to make real the legend
that drives its official history — China’s
centrality in the world. Its
autocrats believe that in their calculus to make China
a “world power second to none”, gaining pre-eminence in
Asia is vital.
 On the other side
is the interest of many Asian nations and outside powers in a cooperative order
founded on power equilibrium. 

Ordinarily, the readiness to play by international rules
ought to matter more than regime form. But regime character often makes playing
by the rules difficult. As a new book, China’s
Great Leap
, edited by Minky Worden, reveals, China won the right to host the
2008 Olympics on the plea that awarding the Games would help improve its human-rights
record. Instead, it has let loose new repression. But just as the 1936 Berlin
Olympics set the stage for Nazi Germany’s collapse, the 2008 Games could help
trigger radical change in China.

Today, Beijing’s
best friends are fellow autocracies while those seeking to forestall power
disequilibrium happen to be on the other side of the value divide. Political
values thus could easily come to define a new geopolitical divide. What may
seem implausible globally, given America’s lingering tradition of
propping up dictators in the Muslim world, is conceivable in the Asia-Pacific
theatre as a natural corollary to the present geopolitics. But for the
divergent geopolitical interests at play, the differing political values would
not matter so much. 

It was China
that took the lead in 2001 to form the Shanghai Cooperation Organization to
help unite it with the Eurasian strongmen in a geopolitical alliance. Designed
originally to bring the Central Asian nations — the so-called Stans — under the
Chinese sphere of influence, the SCO is shaping up as a potential ‘NATO of the
East’. Yet, when Australia, India, Japan
and the US last year started
the exploratory ‘Quadrilateral Initiative’, Beijing was quick to cry foul and see the
apparition of an ‘Asian NATO’. A Chinese demarche
to each Quad member followed.

Through sustained diplomatic pressure, mounted on the back of growing
economic clout, Beijing
has sought to wilt the Quad. A new opening has come with the Mandarin-speaking
Kevin Rudd being elected Australia’s
prime minister. With the Australian economic boom being driven by China’s ravenous resource imports, the previous
John Howard government wasn’t exactly enthused by the Quadrilateral Initiative,
as Beijing had already taken a dim view of Canberra’s US-backed bilateral and trilateral defence
tie-ups with Tokyo.
But the new Rudd government, as reflected in its foreign minister’s remarks
last week, is signalling a wish to turn its back on the Quad. 

Australia’s growing wariness is no different
than India’s.
After having called liberal democracy
“the natural order of social and
political organization in today’s world”, Prime Minister Manmohan Singh now says the Quad “never got going”. Even the
US
has downplayed the initiative, whose real architect, Japanese Prime Minister Shinzo
Abe, was driven out of office last fall. Yet, the Quad staged week-long war games
in the Bay of Bengal, roping in Singapore.

Rudd, though, is so mesmerized by his Mandarin fluency that he feels an inexorable
itch to cosy up to Beijing.
In a strange spectacle, Canberra has proclaimed
it will sell uranium to Beijing (without fail-safe
safeguards against diversion to weapons use) but not to New
Delhi, even if the Nuclear Suppliers’ Group were to carve out an
exemption for India.
The reason proffered for overturning the Howard government’s decision is that “India has not
signed the NPT”. That rationale is flawed: While the NPT carries an Article I
prohibition on transfer of nuclear military technology outside the club of five
recognized nuclear powers, its state-parties are actually enjoined by Article
IV to pursue peaceful nuclear cooperation with all countries. 

If Rudd has read the NPT, it probably was a Chinese translation, because
there is nothing in its official text that forbids civil cooperation under
safeguards with a non-signatory. But why blame Canberra for trotting out an indefensible
excuse when the Indian foreign minister is smitten by the same myth? Pranab
Mukherjee told Parliament in December that the Hyde Act was passed because “the
US
cannot enter into any civilian
nuclear cooperation with any country which is not a signatory to the NPT”.
Unknown to the minister, US
law does not condition cooperation to NPT membership.

The Quad was never intended to be a formal institution, although John
McCain has vowed to institutionalize it as US president. Founded on the
historically valid hypothesis of democratic peace, it is supposed to serve as
an initial framework to promote security dialogue and interlinked partnerships
among an expanding group of Pacific Rim
democracies. Such collaboration is already being built. As an idea, the Quad will
not only survive the current vicissitudes, but it also foreshadows the likely
geopolitical line-up in the years ahead. For India,
close strategic cooperation with Quad members plus Russia holds the key to Asian peace
and stability.                                                                 

© Hindustan Times, 2008
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=2fb04386-d250-4d29-802c-1bc1f82c0ab5

Global Power Shifts: The Larger Implications

Geopolitical risks on the rise
By BRAHMA CHELLANEY
The Japan Times, February 4, 2008

DAVOS, Switzerland — At the recent World Economic Forum meeting of top political, business, intellectual and civil-society leaders, the discussions centered on a range of major international challenges — from new threats to the growing strain on water and other resources.

The discussions brought home the point that at a time of ongoing shifts in economic and political power, greater international divisiveness is making it more difficult to build a consensual approach on the pressing challenges.

Indeed, new fault lines are emerging. The changing global equations are reflected in new realities: the eastward movement of power and influence; the lesser relevance of international structures the United States helped established after World War II; and Asia’s rise as the world’s main creditor and economic locomotive. While the world is not yet multipolar, it is no longer unipolar, as it had been after the end of the Cold War.

Tectonic power shifts, as history testifies, are rarely quiet. They usually create volatility in the international system, even if the instability is relatively short-lived. The new international divisiveness may reflect such a reality.

But unlike in past history, the qualitative reordering of power now under way is due not to battlefield victories or military realignments but to a peaceful factor unique to the modern world: rapid economic growth.

The power shifts are linked to Asia’s phenomenal economic rise, the speed and scale of which has no parallel in world history. After making up 60 percent of the world’s GDP in 1820, Asia went into sharp decline over the next 125 years. Now, it is bouncing back and already accounts for 40 percent of global production — a figure likely to rise to 60 percent well within the next quarter-century. This development is helping alter international equations, with the International Monetary Fund in perceptible decline and troubled U.S. and European financial institutions turning to sovereign wealth funds in Asia and the Middle East for bailouts.

Another factor has also contributed to the divisiveness: While we know the world is in transition, we still do not know what the new order will look like. The ongoing shifts signify not only a world characterized by greater distribution of power, but also new uncertainties. Technological forces today are playing a greater role in shaping geopolitics than at any other time in history.

The more the world changes, however, the more it remains the same in some critical aspects. The information age and globalization, despite spurring profound changes in polity, economy and security, have not altered the nature of international relations. In fact, the rapid pace of technological and economic change is itself a consequence of nations competing fiercely and seeking relative advantage in an international system based largely on national security.

The fact is that we live in a Hobbesian world, with power coterminous with national security and success. The present global power structure reflects this reality: Only countries armed with intercontinental-range weaponry, for example, are permanent members of the United Nations Security Council. However, once the economic power structure changes internationally, shifts in military power will follow, even if slowly.

At present, however, the new fault lines signal rising geopolitical risks.

The tensions between internationalism and nationalism in an era of the supposed single "global village," for instance, raise troubling questions about international peace and stability. With greater public awareness from advances in information and communications technologies encouraging individuals and even some states to more clearly define their identity in terms of religion and ethnicity, a divide is emerging between multiculturalism and artificially enforced monoculturalism. The rise of international terrorism indeed shows that the information age is both an integrating and dividing force. The emerging political, economic and security divides are no less invidious.

The world is moving beyond the North-South divide to a four-tier economic division: The prosperous West; rapidly growing economies like those in Asia; countries that have run into stagnation after reaching middle-income nation status; and a forgotten billion people living on the margins of globalization in sub-Saharan Africa.

There is also a resource divide, with the resource-hungry employing aid and arms exports as a diplomatic instrument for commodity outreach. As the specter of resource conflict has grown, the contours of a 21st-century version of the Great Game have emerged in Asia, Africa and Latin America.

In modern history, the fault line between democrats and autocrats has at times been papered over through a common geopolitical interest. But today the failure to build greater political homogeneity by defining shared international objectives carries the risk that, in the years ahead, political values could become the main geopolitical dividing line.

Also, with the rise of unconventional transnational challenges, a new security divide is mirrored both in the failure to fashion a concerted and effective international response to such threats, including transnational terrorism, and the divisiveness on issues like climate change.

There is clearly a need to improve global geopolitics by building cooperative political approaches that transcend institutions whose structure is rooted in a world that no longer exists. The reality is that just as the Group of Eight, to stay relevant, has initiated the so-called Outreach for dialogue with the emerging powers, the five unelected yet permanent members of the U.N. Security Council can no longer dictate terms to the rest of the world and need to share executive authority with new powers.

It was a mistake to believe that greater economic interdependence by itself would improve geopolitics. In today’s market-driven world, trade is not constrained by political differences, nor is booming trade a guarantee of moderation and restraint between states.

Better politics is as important as better economics. That in turn calls for several major steps whose initiation so far has been frustrated: institutional reforms; greater transparency in strategic doctrines and military expenditures; and cooperative approaches on shared concerns. No international mission today can yield enduring results unless it comes with consistency and credibility and is backed by consensus — the three crucial Cs.

Seen against the significant shifts in power and influence, the world order of the past 60 years will have to give way to a truly international order. The new order, unlike the current one founded on the ruins of a world war, will have to be established in an era of international peace and thus be designed to reinforce that peace. That means it will need to be more reflective of the consensual needs of today and have a democratic decision-making structure.

With Davos attracting 27 heads of state, 113 Cabinet ministers, 74 of the top 100 global companies’ CEOs and 2,300 other delegates, this unique forum seems best placed to promote innovative, out-of-box thinking. The central message from Davos is that silo thinking can only increase global geopolitical risks at a time of greater international fluidity and financial volatility.

Brahma Chellaney was on the faculty of the recent World Economic Forum meeting.

The Japan Times: Monday, Feb. 4, 2008

(C) All rights reserved

Need for India to Reclaim Leverage Against China

Mixed Signals

Brahma Chellaney

DNA newspaper, February 6, 2008

http://www.dnaindia.com/report.asp?newsid=1149345 

The periodic summit meetings between India and China are deceptively all sweetness
and light. During Prime Minister Manmohan Singh’s recent visit, there was no
forward meeting on any contentious issue, but the accent was on the positive.
That should surprise no one. Although
the underlying wariness and suspicions remain, the two giants, for
different reasons, feel the need to publicly
play down the competitive dynamics of their
relationship and emphasize cooperation.

           Yet, the
conciliatory words that come out from the bilateral summitry are a poor
substitute to the glaring lack of progress on the issues that divide IndiaChina, like the territorial
disputes. If anything, the rhetoric at times is a painful reminder of the empty
slogans of the 1950s that helped blind India
to China’s furtive
territorial encroachments and subsequent surprise invasion in 1962, which Jawaharlal
Nehru characterized as Beijing’s
return of “evil for good”.

   The wounds of that 32-day war have
been kept open by Beijing’s assertive claims to Indian
areas, even as it holds on to the territorial gains
of that conflict. China’s
unwillingness to settle the border
dispute on the basis of the status quo has drawn further strength from then Prime
Minister Atal Bihari Vajpayee’s 2003 recognition of Tibet
as “part of the territory of the People’s Republic of China”.
Emboldened by that recognition, which stripped India
of diplomatic leverage, Beijing has become
publicly assertive on its claim to Arunachal Pradesh, a state more than twice
the size of Taiwan.
Now it insists that India
cede at least the Tawang valley
— a critical corridor between Lhasa and Assam of immense military import because it
overlooks the chicken-neck that connects India with its northeast.

            In that
light, Dr. Singh has done well to visit Arunachal, becoming the first PM in 12 years to tour that isolated but strategically located state. But he would
have strengthened his hands had he visited Arunachal, “the land of the rising
sun”, before going to Beijing,
rather than upon his return. Also, instead of having omitted Tawang from his
tour of Arunachal, the PM ought to have made a stop there to send out a needed
signal to Beijing. 

            Employing
the doctrine of incremental territorial annexation, Beijing
has laid claim to Tawang on the basis of that area’s putative historical ties
to Tibet.
By 1951, China had fully
occupied the Tibetan plateau, yet no Chinese
set foot in Tawang until the invading Chinese
army in 1962 poured through the NamkhaValley,
close to the tri-junction of Tibet,
India and Bhutan. In pouring forces into Tawang, China
scoffed at India’s
contention that, in conformity with
the McMahon Line, the border in that region ran along the high Thagla Ridge.
Still, after halting its aggression, Beijing
withdrew from Tawang, as it did from the rest of Arunachal (then NEFA), while
keeping its territorial gains in Ladakh. That was in line with the punitive aim
of its aggression, which Premier
Zhou Enlai had admitted was “to teach India a lesson”.

Significantly, Dr. Singh is the
first Indian PM to return from Beijing without
making any unwarranted reference to Tibet to please his hosts. The ‘T’
word is conspicuously missing from the joint communiqué — a key point the media
failed to catch. Contrast that with the last joint communiqué issued when
President Hu Jintao visited New Delhi: “The Indian side
reiterates that it has recognized the Tibet Autonomous Region as part of the
territory of the People’s Republic of China, and that it does not
allow Tibetans to engage in anti-China political activities in
India.
The Chinese side expresses its
appreciation for the Indian position”.

The only way India can build counter-leverage against Beijing
is to gently shine a spotlight on the Tibet
issue and China’s
failure to grant promised autonomy to the Tibetans. This can be done by India in a way that is neither provocative nor
confrontational. New Delhi ought to make the point
that China’s security will be
enhanced if it reached out to Tibetans and concluded a deal that helped bring back the Dalai Lama from his long exile in India.

          A first step for India to help reclaim leverage and stop being
overtly defensive is to cease gratuitously referring to Tibet as part of China. In doing just that, Dr.
Singh has shown good judgement. He even sent the foreign secretary to
Dharamsala last Sunday to brief the Dalai Lama on his Beijing discussions. That the Dalai Lama
remains an invaluable asset for India
can be seen from his public repudiation of China’s
claim that Arunachal, including Tawang, were traditionally part of Tibet. 

The writer is a strategic affairs expert.

© DNA, 2008