The Great Water Folly

Posted on December 12, 2016 by Chellaney

images The linkages between water stress, sharing disputes and environmental degradation threaten to trap Asia in a vicious cycle. In a continent where China’s unilateralism stands out as a destabilizing factor, only four of the 57 transnational river basins have a treaty on water sharing or institutionalized cooperation. Indeed, the only Asian treaties incorporating specific sharing formulas are between India and its downriver neighbours, Pakistan and Bangladesh.

When Pakistan was carved out of India as the first Islamic republic of the post-colonial era, the partition left the Indus headwaters in India, arming it with formidable water leverage over the newly-created country. Yet India ultimately agreed under World Bank and US pressure in 1960 to what still ranks as the world’s most generous (and lopsided) water-sharing pact.

The Indus Waters Treaty (IWT) reserved for Pakistan the largest three rivers that make up more than four-fifths of the Indus-system waters, leaving for India just 19.48% of the total waters. After gifting the lion’s share of the waters to the congenitally hostile Pakistan, India also contributed $173.63 million for dam and other projects there. The Great Water Folly — one of the major strategic problems bequeathed to future Indian generations by the Nehruvian era — began exacting serious costs within a few years.

Far from mollifying an implacable foe, the IWT whetted Pakistan’s territorial revisionism, prompting its 1965 military attack on India’s Jammu and Kashmir. The attack was aimed at gaining political control of the land through which the three largest rivers reserved for Pakistani use flowed, although only one of them originates in J&K. The 1965 attack was essentially a water war.

India’s naïve assumption that it traded water munificence for peace in 1960 has backfired, saddling it with an iniquitous treaty of indefinite duration and keeping water as a core issue in its relations with Pakistan. As for Pakistan, after failing to achieve its water designs militarily in 1965, it has continued to wage a water war against India by other means, including diplomacy and terrorism. Put simply, 56 years after the IWT was signed, Pakistan’s covetous, water-driven claim to India’s J&K remains intact.

Pakistan has cleverly employed the IWT to have its cake and eat it too. While receiving the largest quantum of waters reserved by any treaty for a downstream state, it uses the IWT to sustain its conflict and tensions with India. Worse still, this scofflaw nation repays the upper riparian’s unparalleled water largesse with blood by waging an undeclared, terrorism-centred war, with the Nagrota attack the latest example.

Pakistan has recently succeeded — for the second time in this decade — in persuading a partisan World Bank to initiate international arbitral proceedings against India. Seeking international intercession is part of Pakistan’s ‘water war’ strategy against India, yet it is the World Bank’s ugly role in the latest instance that sticks out. This should surprise few.

After all, it was the World Bank’s murky role that spawned the inherently unequal IWT. Whereas the British colonial government was the instrument in India’s 1947 land partition, the Bank served as the agent to partition the Indus-system rivers, floating the river-partitioning proposal and ramming it down India’s throat. India’s full sovereignty rights were limited to the smallest three of the six rivers, with the Bank uniquely signing a binational treaty as its guarantor.

Since then, World Bank support enabled Pakistan not only to complete mega-dams but also to sustain its ‘water war’ strategy against India by seeking to invoke international intercession repeatedly. Now, in response to Pakistan’s complaint over the design features of two midsized Indian hydropower projects, the World Bank has sought to initiate two concurrent processes that mock the IWT’s provisions for resolving any ‘questions’, ‘differences’ or ‘disputes’ between the parties: It is appointing both a court of arbitration (as sought by Pakistan) and a neutral expert (as suggested by India), while admitting that “pursuing two concurrent processes under the treaty could make it unworkable over time”.

India says it “cannot be party to actions” by the World Bank that breach the IWT’s terms, implying that it might not accept the arbitral tribunal. India’s bark, however, has always been worse than its bite. While protesting the Bank’s “legally untenable” move in the latest case, India has shown little inclination to respond through punitive counter-measures.

Had China been in India’s place, it would have sought to discipline the Bank and Pakistan. Indeed, it is unthinkable that China would have countenanced such an egregiously inequitable treaty. While mouthing empty rhetoric, India still allows Pakistan to draw the IWT’s full benefits even as Pakistan bleeds it by exporting terrorists.

The truth is this: The IWT symbolizes India’s enduring strategic naiveté and negligence. Despite water shortages triggering bitter feuds between Punjab and some other states, India has failed to tap even the allocated 19.48% share of the Indus Basin resources.

For example, the waters of the three India-earmarked rivers not utilized by India aggregate to 10.37 billion cubic metres (BCM) yearly according to Pakistan, and 11.1 BCM according to the UN. These bonus outflows to Pakistan alone amount to six times Mexico’s total water share under its treaty with the US, and are many times greater than the total volumes spelled out in the Israel-Jordan water arrangements. Although the IWT permits India to store 4.4 BCM of waters from the Pakistan-reserved rivers, a careless India has built no storage. And despite the treaty allowing India to build hydropower plants with no dam reservoir, its total installed generating capacity in J&K currently does not equal the size of a single new dam in Pakistan like the 4,500-megawatt Diamer-Bhasha, whose financing for construction was approved last week.

Brahma Chellaney is a geostrategist and author.

A Water War in Asia?

Posted on November 27, 2016 by Chellaney

BRAHMA CHELLANEY

A column internationally syndicated by Project Syndicate.

Tensions over water are rising in Asia — and not only because of conflicting maritime claims. While territorial disputes, such as in the South China Sea, attract the most attention — after all, they threaten the safety of sea lanes and freedom of navigation, which affects outside powers as well — the strategic ramifications of competition over transnationally shared freshwater resources are just as ominous.

Asia has less fresh water per capita than any other continent, and it is already facing a water crisis that, according to an MIT study, will continue to intensify, with severe water shortages expected by 2050. At a time of widespread geopolitical discord, competition over freshwater resources could emerge as a serious threat to long-term peace and stability in Asia.

Already, the battle is underway, with China as the main aggressor. Indeed, China’s territorial grab in the South China Sea has been accompanied by a quieter grab of resources in transnational river basins. Reengineering cross-border riparian flows is integral to China’s strategy to assert greater control and influence over Asia.

China is certainly in a strong position to carry out this strategy. The country enjoys unmatched riparian dominance, with 110 transnational rivers and lakes flowing into 18 downstream countries. China also has the world’s most dams, which it has never hesitated to use to curb cross-border flows. In fact, China’s dam builders are targeting most of the international rivers that flow out of Chinese territory.

Most of China’s internationally shared water resources are located on the Tibetan Plateau, which it annexed in the early 1950s. Unsurprisingly, the plateau is the new hub of Chinese dam building. Indeed, China’s 13th five-year plan, released this year, calls for a new wave of dam projects on the Plateau.

Moreover, China recently cut off the flow of a tributary of the Brahmaputra River, the lifeline of Bangladesh and northern India, to build a dam as part of a major hydroelectric project in Tibet. And the country is working to dam another Brahmaputra tributary, in order to create a series of artificial lakes.

China has also built six mega-dams on the Mekong River, which flows into Southeast Asia, where the downstream impact is already visible. Yet, instead of curbing its dam-building, China is hard at work building several more Mekong dams.

Likewise, water supplies in largely arid Central Asia are coming under further pressure as China appropriates a growing volume of water from the Illy River. Kazakhstan’s Lake Balkhash is now at risk of shrinking substantially, much like the Aral Sea — located on the border with Uzbekistan — which has virtually dried up in less than 40 years. China is also diverting water from the Irtysh, which supplies drinking water to Kazakhstan’s capital Astana and feeds Russia’s Ob River.

For Central Asia, the diminished transboundary flows are just one part of the problem. China’s energy, manufacturing, and agricultural activities in sprawling Xinjiang are having an even greater impact, as they contaminate the waters of the region’s transnational rivers with hazardous chemicals and fertilizers, just as China has done to the rivers in its Han heartland.

Of course, China is not the only country stoking conflict over water. As if to underscore that the festering territorial dispute in Kashmir is as much about water as it is about land, Pakistan has, for the second time this decade, initiated international arbitral tribunal proceedings against India under the terms of the 1960 Indus Waters Treaty. The paradox here is that downstream Pakistan has used that treaty — the world’s most generous water-sharing deal, reserving for Pakistan more than 80% of the waters of the six-river Indus system — to sustain its conflict with India.

Meanwhile, landlocked Laos — aiming to export hydropower, especially to China, the mainstay of its economy — has just notified its neighbors of its decision to move ahead with a third controversial project, the 912-megawatt Pak Beng dam. It previously brushed aside regional concerns about the alteration of natural-flow patterns to push ahead with the Xayaburi and Don Sahong dam projects. There is no reason to expect a different outcome this time.

The consequences of growing water competition in Asia will reverberate beyond the region. Already, some Asian states, concerned about their capacity to grow enough food, have leased large tracts of farmland in Sub-Saharan Africa, triggering a backlash in some areas. In 2009, when South Korea’s Daewoo Logistics Corporation negotiated a deal to lease as much as half of Madagascar’s arable land to produce cereals and palm oil for the South Korean market, the ensuing protests and military intervention toppled a democratically elected president.

The race to appropriate water resources in Asia is straining agriculture and fisheries, damaging ecosystems, and fostering dangerous distrust and discord across the region. It must be brought to an end. Asian countries need to clarify the region’s increasingly murky hydropolitics. The key will be effective dispute-resolution mechanisms and agreement on more transparent water-sharing arrangements.

Asia can build a harmonious, rules-based water management system. But it needs China to get on board. At least for now, that does not seem likely.

Brahma Chellaney, Professor of Strategic Studies at the New Delhi-based Center for Policy Research and Fellow at the Robert Bosch Academy in Berlin, is the author of nine books, including Asian Juggernaut, Water: Asia’s New Battleground, and Water, Peace, and War: Confronting the Global Water Crisis.

BRICS falls under China’s sway

Posted on November 25, 2016 by Chellaney

There’s a real risk that BRICS could unravel under the weight of the BRICS wall of China that Beijing is busy erecting

BY BRAHMA CHELLANEY, The Japan Times

Adding concrete content to a catchy acronym has become a pressing challenge for BRICS, which brings Brazil, Russia, India, China and South Africa together. BRICS presents itself meretriciously as a powerful grouping. After all, its member-states together represent more than a quarter of the Earth’s landmass, 42 percent of the global population, almost 25 percent of the world’s gross domestic product, and nearly half of the global foreign exchange and gold reserves.

However, as the October BRICS summit in Goa highlighted, there is little in common among its member-states. Although these five emerging economies pride themselves on forming the first important non-Western global initiative, the grouping is still searching to define a common identity and build institutionalized cooperation.

Six years after it expanded from a four-member BRIC to the five-nation BRICS by adding South Africa, it has yet to unveil a common action plan to help bring about fundamental changes in the architecture of global finance and governance or to accelerate the decline of the era of Atlantic dominance.

BRICS lacks the shared political and economic values that bind together the Group of Seven members, who are also tied by security arrangements with the United States. In BRICS, differences outweigh commonalities. As the Goa summit highlighted, China, which is milking BRICS for tangible benefits, represents the biggest challenge to the grouping’s future. Just as China dominates the other new institutions of which it is a founding member — from the Shanghai Cooperation Organization to the Asian Infrastructure Investment Bank (AIIB) — it is using BRICS to assertively push its own interests.

China also dominates the first tangible challenge to the Bretton Woods system, as symbolized by the BRICS-created New Development Bank (NDB) and China’s own initiative, the AIIB.

BRICS has fashioned two instruments — the New Development Bank, which has been given $50 billion in initial capital, and the $100-billion Contingent Reserve Arrangement, or CRA, meant to provide additional liquidity protection to member countries during balance-of-payments problems. Both these instruments have come under China’s sway.

For example, China outmaneuvered India to host the NDB at Shanghai, offering New Delhi a consolation prize — an Indian as the bank’s first president. The CRA — unlike the pool of initial capital to the BRICS bank, with each of the five signatories contributing $10 billion — is being funded 41 percent by China, 18 percent from Brazil, India, and Russia, and 5 percent from South Africa.

Today, China is in the happy situation of overseeing the NDB and the AIIB, not to mention the CRA. Leading two new multilateral banks fits well with Beijing’s strategy to create an “economic hub-and-spoke system” via energy pipelines, strategic highways and ports, and railroad networks. In this scheme, China, as the hub, seeks to draw in raw materials and other natural resources from the spokes, while exporting industrial and consumer goods to them.

China’s “economic hub-and-spoke system” is to parallel America’s military hub-and-spoke system. But it is an “economic hub-and-spoke system” with a strategic mission. China’s infrastructure development in other states is driven, as during the European colonial era, by a specific interest — to advance its own interests while saddling local communities and governments with heavy debt and human and environmental costs.

Against this background, it is not a surprise that China is a revisionist power with respect to the global financial architecture, but a status quo power in regard to the United Nations system. In other words, China supports international institutional reforms that give it a greater say but blocks measures that will dilute its existing status.

So it is an obstacle to restructuring and democratizing the Security Council. It wants to remain Asia’s sole permanent member of the Security Council. And as underscored by its 2016 presidency of the Group of 20, China values the G-20 as a vehicle to enlarge its role in global economic governance while seeking to retain those elements of the present trade and financial architecture that have facilitated its dramatic economic rise.

Meanwhile, it is using BRICS to expand the international role of its currency as part of its quest to build the yuan as a global currency that could one day rival the dollar or euro. So it is lending and trading in yuan with the other BRICS members.

China’s hidden export subsidies, for their part, are steadily undermining manufacturing in the other BRICS states, even as its adept use of tariff and non-tariff barriers shuts out, from its own market, goods and services in which they have a comparative advantage. For example, China’s trade surplus with India has doubled since 2014 alone to nearly $60 billion, threatening India’s domestic manufacturing base. An article last month in China’s state-run Global Times mockingly said: “Let the Indian authorities bark about the growing trade deficit with China. The fact of the matter is they cannot do anything about it.”

At the Goa summit, Chinese President Xi Jinping flexed his muscles to keep the South China Sea issue out of the Goa Declaration and to shield Pakistan from its sponsorship of terrorism, with the declaration citing U.N.-designated terrorist groups in the Middle East but not the ones based in Pakistan.

China’s “core leader” in Goa called for “political solutions” to “regional hotspots” even as his government adds fuel to regional fires through a relentless territorial creep in the South China Sea and by embarking on a $46 billion corridor to the Indian Ocean through Pakistan-held Jammu and Kashmir, a U.N.-recognized disputed region. How can BRICS create rules-based cooperation among its members if international norms of conduct are flouted in such a manner?

The Goa summit indeed was a reminder of China’s lengthening shadow over BRICS. As China uses the grouping to push its own agenda, BRICS has been left carrying the can. The risk is real that the grouping could collapse under the weight of the BRICS wall of China that is being erected.

Brahma Chellaney is a geostrategist and author and a long-standing contributor to The Japan Times.

Trump could ‘pivot’ to Asia like Obama never did

Posted on November 20, 2016 by Chellaney

Trump may well launch his own ‘Asian pivot’ in the vacuum of Obama’s lackluster effort.

Brahma Chellaney, Nikkei Asian Review, November 21, 2016

20161120_southchinasea_article_main_image

U.S. President Barack Obama’s strategic “pivot” toward Asia, unveiled in 2012, attracted much international attention but did little to tame China’s muscular approach to territorial, maritime and trade disputes. Indeed, with the United States focused on the Islamic world, Obama’s much-touted Asian pivot seemed to lose its way somewhere in the arc between Iraq and Libya. Will President-elect Donald Trump’s approach to Asia be different?

In his first meeting with a foreign leader since his surprise Nov. 8 election triumph, Trump delivered a reassuring message to Japanese Prime Minister Shinzo Abe who, in turn, described him as a “trustworthy leader.” In a smart diplomatic move, Abe made a special stop in New York on Nov. 17, en route to the Asia-Pacific Economic Cooperation summit in Peru, to meet face-to-face with Trump, who shares his conservative, nationalistic outlook.

Today, Asia faces the specter of power disequilibrium. Concern that Trump could undo Obama’s pivot to Asia by exhibiting an isolationist streak ignores the fact that the pivot has remained more rhetorical than real. Even as Obama prepares to leave office, the pivot — rebranded as “rebalancing” — has not acquired any concrete strategic content.

If anything, the coining of a catchy term, “pivot,” has helped obscure the key challenge confronting the U.S.: To remain the principal security anchor in Asia in the face of a relentless push by a revisionist China to expand its frontiers and sphere of influence.

Trump indeed could face an early test of will from a China determined to pursue its “salami slicing” approach to gaining regional dominance. In contrast to Russia’s preference for full-fledged invasion, China has perfected the art of creeping, covert warfare through which it seeks to take one “slice” of territory at a time, by force.

With Obama having increasingly ceded ground to China in Asia during his tenure, Beijing feels emboldened, as evident in its incremental expansionism in the South China Sea and its dual Silk Road projects under the “One Belt, One Road” initiative. The Maritime Silk Road is just a new name for Beijing’s “string of pearls” strategy, aimed at increasing its influence in the Indian Ocean. Meanwhile, without incurring any international costs, China aggressively continues to push its borders far out into international waters in a way that no other power has done.

Indeed, boosting naval prowess and projecting power far from its shores are at the center of China’s ambition to fashion a strongly Sino-centric Asia. Boasting one of the world’s fastest-growing undersea fleets, China announced earlier in November that its first aircraft carrier, the Liaoning, is ready for combat. Such revanchist moves will inevitably test the new U.S. administration’s limits.

Tougher approach

In this light, it is difficult to see how Trump can afford to cut back on U.S. military deployments and assets in the Asia-Pacific region. What seems more likely is that Trump will live up to his election campaign promise to invest greater resources in the military. By relaxing some of the Obama-era constraints, Trump, in keeping with his “tough guy” image, could permit the U.S. navy and air force to initiate more aggressive reconnaissance and freedom-of-navigation operations in the South China Sea. He could also invite China’s wrath by getting Japan to join U.S. air and sea patrols in the disputed waters.

Trump is also expected to be more assertive diplomatically than Obama, who refused to speak up even when China occupied the Scarborough Shoal, located well within the Philippines’ exclusive economic zone. The 2012 takeover occurred despite a U.S.-brokered deal under which both Beijing and Manila agreed to withdraw their vessels from the area. Yet the U.S. did nothing in response to China’s move, despite its mutual-defense treaty with the Philippines. That inaction helped spur China’s frenzied creation of artificial islands in the South China Sea.

In late 2013, when China unilaterally declared an air defense identification zone covering territories it claims but does not control in the East China Sea, Obama again hesitated. Indeed, Washington, far from postponing Vice President Joe Biden’s trip to Beijing to express disapproval of the Chinese action, advised U.S. commercial airlines to respect the ADIZ — an action that ran counter to Japan’s advice to its carriers to ignore China’s demand for advance notice of flight plans through the zone. In effect, the U.S. condoned China’s move to establish the ADIZ.

Philippine President Rodrigo Duterte’s much-criticized action to cut his own deal with China, involving billions of dollars in Chinese investment pledges, should be seen in this context. The deal, however, is likely to hold only until the next major Chinese incursion.

The paradox here is that Beijing’s rising assertiveness helped the U.S. return to Asia’s center-stage — yet, even as China became more aggressive with its neighbors, the Obama administration dithered over how to rein in such expansionism or reassure America’s jittery Asian allies. In fact, the more assertive China has become in pressing its territorial and maritime claims, from the East China Sea to the Himalayas, the more reluctant the Obama administration has been to take sides in Asia’s territorial disputes — although they center on Beijing’s efforts to change the status quo with America’s strategic allies or partners.

No less significant is Obama’s failure to provide strategic heft to his Asia pivot. By studiously avoiding disputes with China while working to balance America’s relationships with key Asian states, his administration shied away from tough strategic choices. Indeed, no sooner had the pivot policy been unveiled than a course correction was effected, with the administration tamping down the pivot’s military aspects and laying emphasis instead on greater U.S. economic engagement with Asia. Even the modest measure to permanently rotate up to 2,500 U.S. marines through Darwin, Australia, is yet to be fully implemented.

To countries bearing the brunt of China’s recidivist policies, this lack of clarity has not only raised doubts about the U.S. commitment, but also left them effectively at the mercy of a regional predator. That, in turn, has forced several of them to tread with excessive caution around Chinese concerns and interests.

Shoring up alliances

Far from retreating from Asia, the U.S. under Trump is likely to bolster alliances and partnerships with states around China’s periphery. His administration may even support constitutional and national security reforms in Japan, on the assumption that a Japan that does more for its own defense will help to forestall the emergence of a destabilizing power imbalance in East Asia. Such support will also fit well with Trump’s top priority to halt the erosion of America’s relative power through comprehensive domestic renewal, including reining in the mounting U.S. budget deficit.

Trump’s election, however, has dimmed prospects for full implementation of the 12-nation, Trans-Pacific Partnership trade agreement. The TPP, which excludes not only China but also America’s close friends like India and South Korea, has been presented by Obama as the most important component of his unhinged pivot to Asia. In truth, the TPP is hardly a transformative initiative: With half its members already boasting bilateral free trade agreements with Washington, the TPP’s main effect would have been to create a free trade agreement between Japan and the U.S., which together account for about 80% of the gross domestic product of TPP signatories.

Trade is one area where Trump must deliver on his campaign promises or risk losing his credibility with the blue-collar constituency that helped propel him to victory. His administration not only will seek to renegotiate parts of the TPP — to the discomfit of Abe, who has made the trade deal a pillar of his economic reforms — but also is unlikely to give China a free pass on its trade manipulation. For this and many other reasons, U.S.-China ties could be in for a rough patch.

At a time when the very future of the Asian order looks uncertain, Trump could pivot to Asia in a way Obama did not. But today, no single power, not even the U.S., can shape developments on its own in Asia, including ensuring a rules-based order. His administration will have to work closely with likeminded states — from Japan and Australia to India and Vietnam — to build a stable balance of power in Asia.

Brahma Chellaney is a geostrategist and the author of nine books, including “Water, Peace, and War” (Rowman & Littlefield).

China’s sole ally in Asia might get more than it wished for

Posted on November 7, 2016 by Chellaney

BY BRAHMA CHELLANEY, The Japan Times, November 8, 2016

sino-pak-image When China joined hands with the United States earlier this year at the United Nations Security Council to approve the toughest new international sanctions in two decades against North Korea, it implicitly highlighted that Beijing now is left with just one real ally in Asia — Pakistan. Indeed, China has forged with Pakistan one of the closest and most-enduring relationships in international diplomacy.

Mao Zedong famously said China and North Korea were as close as lips are to teeth. Similarly, Beijing now compares its strategic nexus with Pakistan to the closeness between lips and teeth, calling that country its “irreplaceable all-weather friend” and boasting of an “iron brotherhood” with it.

In reality, this is largely a one-sided relationship that is turning Pakistan into China’s client and guinea pig.

For example, Beijing has sold Pakistan outdated or untested nuclear power reactors and prototype weapon systems not deployed by the Chinese military. The two AC-1000 reactors currently under construction near the southern Pakistani port city of Karachi represent a model China has adapted from French designs but not built at home.

According to a recent Pentagon report, Pakistan is not just “China’s primary customer for conventional weapons,” but also is likely to host a Chinese naval hub geared toward power projection in the Indian Ocean region. It is well documented that China helped build Pakistan’s arsenal of nuclear weapons, with covert Chinese nuclear and missile assistance still persisting.

Pakistan is the linchpin of Chinese President Xi Jinping’s dual Silk Road projects, officially known as “One Belt, One Road.”

By launching work on a $46 billion “economic corridor” stretching from Xinjiang to Pakistan’s Chinese-built and-run Gwadar port, Xi has made that country the central link between the twin Silk Road initiatives, which aim to employ geoeconomic tools to create a “Sinosphere” of trade, communications, transportation and security links. The corridor will link up Beijing’s maritime and overland Silk Roads, thereby shortening China’s route to the Middle East by 12,000 km and giving it access to the Indian Ocean, where it would be able to challenge India in its own maritime backyard.

Not surprisingly, Xi has gone out of his way to shield Pakistan, including from accusations that its intelligence service was behind recent grisly terrorist attacks in Afghanistan, Bangladesh and India. For example, Xi ensured that the final communique issued at the end of the Oct. 14-15 summit of the five BRICS countries — Brazil, China, India, Russia and South Africa — omitted any reference to state sponsorship of terror or to any Pakistan-based terrorist group, even as it mentioned organizations like the Islamic State and al-Nusra.

A more potent reminder of such support was China’s action last month in blocking proposed U.N. sanctions on a Pakistan-based terrorist leader Masood Azhar, who heads Jaish-e-Mohammed, a covert front organization for Pakistani intelligence service. It was the sixth time since September 2014 that China singlehandedly thwarted sanctions against Azhar, despite support for the move by all other members of the Security Council’s Resolution 1267 committee, including the United States, Britain and France. Resolution 1267 mandates U.N. sanctions on the Islamic State, al-Qaida and associated individuals and entities.

The Security Council proscribed Jaish-e-Mohammed way back in 2001, yet the group operates openly from its base in Pakistan’s largest province of Punjab. The need for U.N. sanctions against the group’s chief has been underscored by evidence linking him and his group to two terrorist attacks this year on Indian military bases that killed 27 soldiers.

Despite repeatedly vetoing U.N. action against Azhar, China seems unconcerned that it could be seen as complicit in the killing of the Indian soldiers.

Previously, China also blocked U.N. action against some other Pakistan-based terrorist entities or individuals. For example, it came in the way of the U.N. proscribing United Jihad Council chief Syed Salahuddin and probing how U.N.-designated terrorist Hafiz Saeed is still able to raise funds and organize large public rallies in major Pakistani cities. With China’s help, Pakistan escaped U.N. censure for freeing on bail Zaki-ur Rehman Lakhvi, the mastermind of the 2008 Mumbai terrorist strikes.

In fact, with China boosting its strategic investments in Pakistan, Beijing is stepping up its diplomatic, economic and military support to that country. In the process, it is seeking to cement Pakistan’s status as its client.

For example, China has already secured exclusive rights for the next 40 years to run Gwadar, which could become a hub for Chinese naval operations in the Indian Ocean. The Shanghai Stock Exchange, for its part, is poised to take a 40 percent stake in Pakistan’s bourse.

Some analysts like the American author Gordon G. Chang believe that the tide of new Chinese strategic projects, including in divided and disputed Kashmir, is turning Pakistan into China’s “newest colony.”

Indeed, Beijing has persuaded internally torn Pakistan to set up special security forces, including a new 13,000-strong army division, to protect the Chinese projects. Still, the growing security costs of the “economic corridor” to the Indian Ocean prompted a Chinese state paper in September to warn that China “be prepared for potential setbacks,” adding that “it would be unwise to put all its eggs in one basket.”

The fact is that the corridor will cement Pakistan’s status as Beijing’s economic and security client. By tightening China’s grip over the country, it will preclude Pakistan from possibly emulating the example of Myanmar or North Korea to escape Beijing’s clutches.

Indeed, several years before China unveiled its plan to build the corridor, it started stationing its own troops in the Pakistan-held part of Kashmir, ostensibly to shield its ongoing highway, dam and other projects in the mountainous region.

The implications of China’s growing strategic penetration of Pakistan are ominous for the region and for Pakistan’s own future. Concern is increasing in Pakistan that, thanks to the Chinese projects, the country is slipping into a massive debt trap that could compromise its sovereignty and future.

Brahma Chellaney, a professor of strategic studies at the New Delhi-based Center for Policy Research and a fellow at the Robert Bosch Academy in Berlin, is the author of nine books, including “Asian Juggernaut,” “Water: Asia’s New Battleground,” and “Water, Peace, and War: Confronting the Global Water Crisis.” He is a long-standing contributor to The Japan Times.

Aung San Suu Kyi’s diplomatic balancing act

Posted on October 27, 2016 by Chellaney

Sustaining “neutrality” in foreign policy will likely prove a challenge for Myanmar’s de facto leader

Brahma Chellaney, Nikkei Asian Review

aung-san-suu-kyi In keeping with the untrammeled power she enjoys in her ruling National League for Democracy party, Myanmar’s de facto leader Aung San Suu Kyi is rapidly putting her imprint on her country’s international relations. She has shaken up Myanmar’s diffident foreign policy establishment by proactively seeking to build partnerships with multiple powers. But rather than pronouncing a “Suu Kyi doctrine” in foreign policy, she is allowing her actions to define her approach.

Suu Kyi’s approach is unmistakable — a nondoctrinaire vision with pragmatism as the hallmark, that aims to build equilibrium in relations with major powers and underscore Myanmar’s potential role as a bridge between different regions, cultures and powers. Myanmar’s geographic and geostrategic position makes it the natural bridge between South and Southeast Asia and between the demographic titans, China and India.

Myanmar is as large as Britain and France combined. Yet by coming under severe U.S.-led sanctions, Myanmar was strikingly left out of Asia’s economic boom of the past generation. Since 2011, its democratic transition — cemented by NLD’s landslide election victory nearly a year ago — has reversed its fortunes, with a number of countries jockeying to exploit the economic opportunities it offers.

Suu Kyi seems to believe that, through a dynamic foreign policy, she not only can advance Myanmar’s economic and security interests but also play the role of a facilitator between rival powers, including between China and Japan. Myanmar’s economic and political vulnerability, however, crimps Suu Kyi’s ambitious diplomacy, forcing her to perform a delicate balancing act between major powers vying for influence.

Take China, with which Myanmar shares a 2,129km border: As if to signal that her country’s pro-China tilt and dependence on Beijing was an aberration fostered by crippling U.S.-led sanctions for nearly a quarter century, Suu Kyi committed, soon after coming to power, to revive the country’s tradition of pursuing a neutral foreign policy. Yet, her first visit to a major capital was to Beijing in August.

The plain fact is that even though China impeded the Suu Kyi-led democracy movement by siding with Myanmar’s military rulers, its aggressive pursuit of strategic and resource interests has left it with considerable clout in the country. It accounts for about half of Myanmar’s foreign investment and 40% of its trade, with new multibillion-dollar oil and gas pipelines leading from Myanmar’s western coast to southern China.

Pecking order

Four weeks after her China trip, Suu Kyi visited the U.S., leading her country’s delegation to the United Nations General Assembly in New York and then meeting with U.S. President Barack Obama at the White House. The White House meeting led to Obama’s Oct. 7 executive order lifting U.S. economic sanctions on Myanmar.

Now, after a recent tour of the world’s largest democracy — next-door India — Suu Kyi is set to visit Asia’s oldest, and richest, democracy, Japan, from Nov. 1. That Suu Kyi prioritized visits to Beijing and Washington over trips to New Delhi where she was educated, and Tokyo, Myanmar’s largest provider of debt relief, showed that she regards India and Japan as of lesser importance to her country’s interests than China and the U.S.

Yet the fact is that Japan and India, with traditionally close ties to Myanmar, have played key roles in helping to end the country’s pariah status and reintegrating it regionally. Myanmar indeed was a province of India until 1937 in the British Indian empire before it become a separate colony, only to be occupied during 1941-45 by Japan, which established the country’s first postcolonial state and army. After Myanmar gained independence from Britain in early 1948, Japan played a major role in Myanmar’s economic development by allocating war reparations and official development assistance.

Suu Kyi’s Oct. 16-19 India tour was part of New Delhi’s invitation to member states of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation for a joint summit in the beach resort of Goa with Brazil, Russia, India, China and South Africa, collectively known as BRICS. The Bay of Bengal Initiative, which brings together Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand, is seen as a better alternative than the China-proposed Bangladesh-China-India-Myanmar corridor because it is more inclusive and seeks to reintegrate the region along its historical axis.

Even before her party formed a new government on Mar. 31, Suu Kyi appealed for more aid from Japan, which, since the start of Myanmar’s democratic transition, has dramatically increased its official development assistance, besides forgiving large amounts of debt and investing in ambitious projects. Japanese Prime Minister Shinzo Abe’s government responded to Suu Kyi’s appeal through additional loans and grant assistance.

A huge debt write-off by Japan, totaling about $3.3 billion, has helped Myanmar to clear its arrears to the World Bank and Asian Development Bank, opening the path for aid donors to support the country’s reform process. By setting up the giant Thilawa special economic zone, southeast of Yangon, the largest city, Japan has made major investments to establish Myanmar as a regional manufacturing hub. It has also invested in infrastructure and urban-development projects, including in Yangon’s water, sewage and electricity facilities.

However, the sluggish pace of reforms in Myanmar, including liberalizing land rights, tightening fiscal management and opening the financial sector, has impeded the Abe government’s larger strategy to reduce the Mekong region’s dependence on China by strengthening intraregional trade links. Suu Kyi’s five-day Japan visit offers her an opportunity to allay Japanese concerns over Myanmar’s reform process and her own “neutral” foreign policy.

China, however, represents the biggest test of Suu Kyi’s diplomacy. How long will she be able to walk the tightrope on a country that poses the most complex challenge for Myanmar?

China, by strategically penetrating Myanmar, has not only armed itself with formidable leverage but also sought to turn the country into its corridor to the Indian Ocean. Having established a firm foothold in Myanmar’s Bay of Bengal port of Kyaukp hyu, Beijing is seeking to open a shorter, cheaper trade route to Europe via Myanmar’s River Irrawaddy, which flows south from near the Chinese border to the Andaman Sea.

China holds the keys to ending decades of ethnic conflict in Myanmar, including by cutting off the flow of arms to guerrilla groups and exercising its clout over several key insurgent leaders. But it is unclear whether Beijing, despite being invited by Suu Kyi to play mediator, will genuinely aid her effort to build ethnic peace or use its role as a broker between the government and guerrilla groups to merely underpin its own leverage. A crucial peace conference hosted by Suu Kyi in the capital Naypyitaw ended in early September without any tangible progress.

Meanwhile, to deflect Chinese pressure to resume the Beijing-sponsored Myitsone Dam project, Suu Kyi has appointed a 20-member commission to review the previous government’s decision to suspend it. The $3.6 billion project was designed to generate electricity largely for export to China while saddling Myanmar with human and environmental costs. But its 2011 suspension carried major strategic ramifications: While representing a slap in the face to China, it became a watershed moment for Myanmar, accelerating its democratic transition and ending the country’s international isolation.

Politically speaking, Suu Kyi can ill afford to revive a dam project that she slammed as the opposition leader. The project indeed is despised in Myanmar as an epitome of China’s neocolonial policies toward smaller countries. Through the commission, however, Suu Kyi can help China save face, if Myanmar agrees to pay compensation. Beijing could plow that compensation into new deals for smaller, environmentally friendly hydropower plants.

In concept, Suu Kyi’s “neutrality” in foreign policy seems attractive, potentially allowing her to carefully balance cooperation with all the major players in a way that advances Myanmar’s interest, without the country being forced to choose one power over another. Building such multidirectional collaboration can definitely help Myanmar to advance its development and security.

In reality, though, it might be difficult for an aid-dependent, internally torn Myanmar to sustain a neutral foreign policy. Despite her diplomatic balancing act, Suu Kyi’s approach faces major challenges, including an arc of insurgencies in Myanmar and the attempt by various powers to treat the country as a chessboard of geopolitics.

Brahma Chellaney is a geostrategist and the author of nine books.

Asia’s megacities are running out of water

Posted on October 18, 2016 by Chellaney

clipboard01 Brahma Chellaney, Nikkei Asian Review

Asia’s cities are ballooning, and the accompanying upsurge in the consumption of water and production of waste in urban areas is placing new pressures on the environment.

Home to 53% of the world’s urban population, Asia has the highest concentration of megacities, including Shanghai, Tokyo, Karachi and Beijing. Not only are Asia’s cities big and numerous, they are among the most polluted. The urban explosion has made providing safe water and sanitation a massive challenge for the region.

Historically, the availability of local water resources has determined not only where major cities have been established but how well they have fared. But in Asia, rapid — and often unplanned — urban growth in recent decades has overwhelmed water systems.

20161006freshwaterhoriz_article_main_image Asia’s per capita water availability is already the lowest of any continent. Fast economic growth, coupled with breakneck urbanization and changing lifestyles, has made a difficult situation worse. In 2012, slightly over half of the world’s population lived in urban areas. By 2050, that ratio is projected to jump to more than two-thirds, with much of that growth taking placing in Asia.

The region’s urbanization is fueling demand for water not just for municipal use but also for manufacturing and agriculture. And changing diets, especially an increased preference for meat — the production of which is notoriously water-intensive — are compounding water challenges. Asia needs to make substantial water savings in agriculture to quench the thirst of its expanding cities. Some of the largest urban centers — from Beijing and Manila to Jakarta and Dhaka — are already at risk of running out of water.

The challenge of providing safe drinking water is compounded by the growing incidence of floods and droughts in Asia. According to the Asian Development Bank, people living in the Asia-Pacific region are “four times more likely to be affected by natural disasters than those living in Africa, and 25 times more likely than those living in Europe or North America.” Most Asian megacities are in coastal areas, making them vulnerable to global warming-induced rises in ocean levels.

As cities across the region struggle to access adequate water supplies, many of their residents are beginning to rely on bottled water. This practice, however, has fueled a serious waste-management problem. Due to very low recycling rates, billions of plastic bottles end up as garbage every year, taking up increasing space in landfills or even littering the landscape. Some cities are running out of places to put those bottles.

The environmental problems do not end there: The retreat of megadeltas due to China’s upstream damming of rivers originating on the Tibetan Plateau has become a serious issue. According to several scientific studies, heavy upstream damming, which can obstruct the flow of silt to plains and estuaries, is contributing to the retreat and subsidence of Asia’s big deltas, which are home to such megacities as Tianjin, Shanghai, Guangzhou, Bangkok, Kolkata and Dhaka. This development, in turn, is causing seawater to flow into coastal freshwater aquifers, affecting municipal supplies.

UNCOVENTIONAL SOLUTIONS

Yet despite this deepening crisis, a water-stressed Asia continues to live beyond its means environmentally, overexploiting water resources while hoping to postpone the day of reckoning. Some countries have responded to these challenges by implementing grand but environmentally questionable projects, from China’s South-North Water Transfer Project (the world’s biggest hydraulic initiative) to India’s now-stalled proposal to link up its most important rivers.

With the first two of its three legs already operational, the $62 billion Chinese undertaking is aimed at moving water from the south to the parched north, all the way to Beijing and Tianjin. But the environmental costs are mounting: Energy-hogging treatment plants along the transfer routes seek to tackle water degradation and pollution, even as water quality deteriorates in the source river, the Yangtze. Given the project’s energy intensity, swelling costs and environmental impact, a better alternative for China would have been desalination, wastewater treatment and recycling, and reduced irrigated farming in its arid north.

Asian cities have little choice but to tap unconventional sources for their water supply. One such option is recycled — or “reclaimed” — water. Singapore has embraced, on a commercial scale, the use of chemical processes to turn wastewater into clean water. The water-scarce city-state has found this option to be less expensive than desalinating seawater.

The toilet-to-tap concept has long been in use in manned spacecraft. Still, the public is far less keen on recycled water than on desalinated water. To help ease the “yuck factor” among reluctant citizens, Singapore — like London and San Diego — mixes treated wastewater with conventional water in the city’s supply system.

Even if the reclaimed water is channeled strictly for nonportable uses, such as gardening, flushing toilets and doing laundry, it can help alleviate a city’s water crisis. Reclaimed water can also be used to artificially replenish aquifers, rivers and reservoirs and for ecological purposes, such as restoring or enhancing wetlands and riparian habitats. With many Asian cities increasingly desperate for additional water resources, more metropolises will likely be forced to recycle wastewater to augment their supplies.

Another option for Asian cities is rainwater harvesting, a relatively low-cost technique invented in Asia in the 9th or 10th centuries. Some cities are already trying it. For example, new apartment complexes and commercial buildings in the southern Indian metropolises of Bangalore and Chennai are required to have rainwater-harvesting systems. In much of Asia, heavy rains in the monsoon season make it easier to trap and store rainwater for dry-season use.

Most Asian cities also need greater public and private investment to upgrade and maintain water-distribution networks so as to plug leakages and prevent contamination. In Asia, losses of treated water from leaky distribution were conservatively estimated at $9 billion in 2011, according to the Asian Development bank.

Water scarcity is set to become Asia’s defining crisis, creating an obstacle in the continent’s path toward continued economic growth. Competition between cities, industries and farms over limited water resources is already intensifying. Addressing these challenges demands new skills, technologies, management practices and approaches, including building demand-side efficiency and tapping nontraditional water sources.

Brahma Chellaney is a geostrategist and the author of “Water, Peace, and War,” and the award-winning “Water: Asia’s New Battleground,” among other books.

Why Japan and India must be partners in Myanmar

Posted on October 18, 2016 by Chellaney

A Japan-India partnership on major projects in Myanmar can help reduce the salience of Chinese influence there.

BY BRAHMA CHELLANEY, The Japan Times, October 19, 2016

Myanmar’s de factor leader, Aung San Suu Kyi, is seeking to carefully balance relations with major powers as part of her commitment to revive the country’s tradition of employing a neutral foreign policy. Suu Kyi’s India visit this week follows trips to Beijing and Washington.

Myanmar’s geographic, cultural and geostrategic positioning between India and China makes it critical to the long-term interests of both these powers.

Crippling U.S.-led sanctions since the late 1980s pushed resource-rich Myanmar into China’s strategic lap. Sanctions without engagement have never worked. During his 2010 Indian tour, U.S. President Barack Obama criticized India’s policy of constructive engagement with Myanmar, only to return home and pursue, within months, a virtually similar policy. The shift in U.S. policy helped to spur Myanmar’s reform process, thereby ending half a century of military-dominated rule.

Yet today the Obama White House is ignoring that lesson by pursuing a sanctions-only approach toward North Korea, which recently carried out its fifth and most-powerful nuclear test and then conducted a failed missile test launch last weekend.

On her first visit to a major capital since her National League for Democracy (NLD) party came to power almost seven months ago, Suu Kyi in August visited Beijing, not New Delhi where she was educated. Her aim was to smooth over the frayed relationship with China. Ties with China have been roiled by Myanmar’s 2011 suspension of the $3.6 billion, Chinese-financed Myitsone Dam project. The suspension on the eve of China’s national day constituted a slap in the face to Beijing — a loss of face made worse by the fact that the action became a turning point for Myanmar’s democratization and reintegration with the outside world.

The bold move, by demonstrating to Washington that Myanmar was no client state of China and by helping to both change U.S. policy and accelerate the country’s own transition to democracy, set in motion an easing of Western sanctions and ending Myanmar’s international isolation — best symbolized by Obama’s 2012 visit.

After work on the Myitsone Dam was halted midway, China’s relations with Myanmar perceptibly cooled, with several energy and other dam projects also put on hold. Beijing, however, managed to complete multibillion-dollar oil and gas pipelines from Myanmar’s western coast to southern China.

With the rise of a democratically governed Myanmar that is being wooed by all powers and by international investors, China can no longer push its strategic and resource interests by brushing aside questions about the environmental and human costs of its mining and other projects there.

But with China still wielding more leverage over Myanmar than any other power, President Xi Jinping is pushing for the Myitsone project’s revival — or the undoing of the 2011 humiliation. To deflect Chinese pressure, Suu Kyi, before visiting Beijing, appointed a 20-member commission to review Myitsone and other dam projects on River Irrawaddy, the country’s lifeline.

After her China trip, Suu Kyi, as part of her balancing act, visited Washington, where she was warmly received Sept. 14 at the White House. But it was only on Oct. 7 — about 11 months after the NLD won a landslide election victory — that Obama lifted U.S. economic sanctions on Myanmar through an executive order terminating an emergency directive that deemed the policies of its former military government a threat to U.S. national security. Military-related sanctions, however, have been retained.

Suu Kyi, accompanied by key ministers, traveled to India to attend a weekend multinational summit in Goa and then hold bilateral meetings with Prime Minister Narendra Modi and other top officials in New Delhi.

Her visit was part of India’s invitation to member states of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) for a joint summit with the five-nation BRICS (Brazil, Russia, India, China and South Africa) in Goa. Suu Kyi thus met with a host of world leaders in Goa, including Russian President Vladimir Putin and China’s Xi.

Bringing together Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand, BIMSTEC holds more promise than the South Asian Association for Regional Cooperation (SAARC), which is likely to remain a stunted organization, largely because of regional concerns over terrorism emanating from one of its members, Pakistan. A SAARC summit scheduled for next month in Islamabad collapsed after India, Afghanistan and Bangladesh accused Pakistan’s Inter-Services Intelligence agency of orchestrating recent terrorist attacks within their borders.

Myanmar is India’s gateway to the east. It was at the India-ASEAN summit in Myanmar’s capital Naypyitaw in late 2014 that Modi launched India’s U.S.-backed “Act East” policy.

When Suu Kyi was in the opposition, India supported Suu Kyi’s democracy movement and sheltered many Myanmar refugees and dissidents, despite engaging with Myanmar’s military government in a carefully calibrated manner to promote political reconciliation and to stem China’s growing clout there.

Today, a key challenge for both Myanmar and India is to manage a difficult and complex relationship with China. Just as India’s northern neighbor historically was Tibet, not China, Myanmar’s neighbor for much of its early history was the independent kingdom of Yunnan, with Tibet also sharing a border with Myanmar until 1950.

Myanmar, like India, has long complained about the flow of Chinese arms to local guerrilla groups, accusing Beijing of backing several of them in its north as levers against it. Still, recognizing that Beijing holds the keys to ending decades of armed conflict in Myanmar, Suu Kyi has given China an important role in her new initiative to promote ethnic reconciliation. Yet, despite China playing mediator, a Suu Kyi-sponsored peacemaking gathering attended by ethnic warlords in Naypyitaw ended in early September without any headway.

China values Myanmar as a strategic asset, viewing its long shoreline as a gateway to the Indian Ocean, where it is seeking to chip away at India’s natural-geographic advantage. Having established a foothold in Myanmar’s Bay of Bengal port of Kyaukpyu, from where new energy pipelines lead to southern China, Beijing is now seeking to open a shorter, cheaper trade route to Europe via Myanmar’s River Irrawaddy, which flows in a southerly direction from near the Chinese border to the Andaman Sea.

Against this backdrop, India can ill afford to neglect Myanmar or persist with its sluggish implementation of projects there. It must actively involve itself in Myanmar, including by collaborating with Japan, with which it enjoys fast-growing strategic cooperation. The giant Thilawa industrial zone southeast of Yangon symbolizes Japan’s investment campaign in Myanmar to gain access to a new market and counterbalance China.

Greater Indian investment in and counterinsurgency cooperation with Myanmar, coupled with an India-Japan partnership on major projects in that country, can help reduce the salience of Chinese influence there and further Suu Kyi’s agenda for a balanced, neutral and pragmatic foreign policy.

Brahma Chellaney is a Richard von Weizsacker Fellow at the Robert Bosch Academy in Berlin and a professor of strategic studies at the Center for Policy Research in New Delhi.

BRICS reduced to a “talk shop”?

Posted on October 17, 2016 by Chellaney

The real winner from the two BRICS-initiated financial ventures is China, with BRICS left carrying the can.

Brahma Chellaney, Nikkei Asian Review

20161017_brics_leaders_article_main_image

On paper, the five BRICS countries — Brazil, China, India, Russia and South Africa — look like a powerful grouping: the member states combined represent more than a quarter of the earth’s landmass, over 42% of the global population, almost 25% of the world’s gross domestic product, and nearly half of the global foreign exchange and gold reserves. In reality, though, BRICS is still struggling to define a common identity and build institutionalized cooperation among its members. Their just-concluded summit, held in the Indian beach resort of Goa on Oct. 14-15, underscored inherent challenges.

As the first important non-Western global initiative of the post-Cold War world, BRICS reflects ongoing global power shifts, including the slow retreat of Atlantic dominance.

If BRICS can get its act together, it will be able to exercise significant geoeconomic and geopolitical clout and evolve into a major instrument to bring about fundamental changes in the architecture of global finance and governance. By serving as the building blocks of overhauled financial and governance systems, the BRICS economies would be a catalyst in the qualitative reordering of power and in reshaping the entire international order.

After all, in a spectacular reversal of fortunes, the developing economies, with their large foreign reserves, now finance the mounting deficits of the wealthy economies. More importantly, the BRICS economies are likely to remain the world’s most important source for future growth.

However, given that BRICS is just an extension of the BRIC concept conceived by Goldman Sachs economist Jim O’Neill in 2001, it is surprising that the grouping has stuck to an alien acronym. BRIC (Brazil, Russia, India and China) became BRICS with the addition of South Africa in late 2010. Had the grouping pursued a more forward-looking approach, it could have simply called itself the “R-5” after the names of its members’ currencies — the real, rand, ruble, renminbi and rupee — and presented itself, in contrast to the obsolescent Group of Seven (G-7), as the face of the future.

The plain fact is that the challenges BRICS faces today are fundamental, making its future uncertain. These disparate countries have starkly varying political systems, economies, and national goals, and are located in different corners of the globe. There is little in common among the BRICS states.

For example, what is common between the world’s largest democracy, India, and the largest autocracy, China? The biggest real estate claimed by a revanchist China is an Indian state almost three times larger than Taiwan — Arunachal Pradesh, an ecological paradise of virgin forests, orchids and soaring mountain ranges. How can BRICS create rules-based cooperation among its members if international norms of behavior are flouted, as by China’s territorial creep in the South China Sea and its shielding of Pakistani terrorism at the United Nations Security Council and by Russia’s annexation of Crimea?

To compound BRICS’ challenges, the Brazilian, Russian and South African economies have nose-dived in recent years, even as China’s faltering growth and downside deflationary risks have unsettled global markets. Only India has defied the BRICS’ slump, priding itself as the world’s fastest-growing major economy.

Almost six years after it expanded from four to five member-states, BRICS has yet to evolve into a coherent grouping with defined goals and an institutional structure. Of course, it has created the Shanghai-based New Development Bank and set up, as a shield against global liquidity pressures, the $100-billion, China-dominated Contingent Reserve Arrangement. The real winner from both these initiatives is China, with BRICS left carrying the can.

Despite its utility as a non-Western grouping, BRICS cannot remain just a “talk shop.” The Goa summit was a reminder that it has yet to devise a common action plan to go forward.

To be sure, the annual BRICS summit provides a useful platform for bilateral discussions on the sidelines, as between the Chinese president and Indian prime minister on a host of issues that bedevil their countries’ bilateral relationship. Some member states, by piggybacking on the BRICS summit, hold their own bilateral summits before or after the event. For example, the annual India-Russia summit was held in Goa just before the start of the BRICS summit.

Still, BRICS faces nagging questions about whether its members, with their different priorities and interests, can unite on key international issues. If BRICS is to build collective clout, its members must frame common objectives and approaches to tackling the pressing international issues. Take the scourge of terrorism: The Goa Declaration omitted any reference to cross-border terrorism or state sponsorship of terror or even to any Pakistan-based terrorist group at the instance of China, which sought to protect its close ally Pakistan from charges that its intelligence service was behind recent grisly attacks in Afghanistan, Bangladesh and India.

The G-7 began as a discussion platform like BRICS but, by defining its members’ common interests, it advanced within years to joint coordination on key international issues. BRICS, lacking the shared political and economic values that bind the G-7 members together, cannot stay relevant if it does little more than bring together its leaders and various stakeholders for discussions. Indeed, the most important bilateral relationship for each BRICS country is not with another BRICS member but with the United States.

Worse still, an overly ambitious China, seeking to dominate the grouping and emerge as America’s peer rival, has cast a lengthening shadow over BRICS. For example, as part of its quest to build the yuan, or renminbi, as a global currency that could eventually rival the dollar or euro, a cash-rich China is using BRICS as an important vehicle to expand the renminbi’s international role, including by offering renminbi loans to other BRICS members. Lending and trading in renminbi helps China to boost its exports and international clout.

China’s hidden export subsidies, however, have been systematically undermining manufacturing in the other BRICS states. Chinese dumping is blighting Indian and Brazilian manufacturing in particular. Consequently, China’s rapidly growing trade surplus, for example, with India has doubled since Narendra Modi became prime minister two-and-a-half years ago. This has armed Beijing with greater leverage over New Delhi.

For Brazil, India, Russia and South Africa, BRICS offers largely symbolic benefits, including underscoring their growing international role and their desire to pluralize the global order. By contrast, China, which needs no recognition of its rise as a world power, is milking BRICS for tangible benefits, including to advance its economic and political benefits.

Even on international institutional reforms, China is hardly on the same page as the other BRICS members. The present international order emerged in the post-1945 period as a U.S.-led hierarchical order involving a group of likeminded countries, largely in the West. Since then, the global institutional structure has remained largely static, even as the world has changed dramatically. As a result, the global financial and governance systems, ranging from the International Monetary Fund and the World Bank to the United Nations Security Council, no longer look truly global in terms of representation. This has made fundamental reforms to international institutions and rules imperative.

China is a revisionist power with respect to the global financial architecture, seeking an overhaul of the Bretton Woods system that emerged in the mid-1940s. It also seeks to dominate the first tangible challenge to the Bretton Woods institutions, as symbolized by the BRICS’ New Development Bank and the China-created Asian Infrastructure Investment Bank, headquartered in Beijing.

China, however, is a status quo power in regard to the U.N. system and wishes to remain Asia’s sole country with a permanent seat in the Security Council, which means keeping fellow BRICS member India (and Japan) out. China’s strategy, by extension, also seeks to shut out India from other political institutions, including the Nuclear Suppliers Group, where it has almost singlehandedly blocked a U.S.-led push for India’s entry.

Against this backdrop, if BRICS remains just a “talk shop,” it will not only fail to fulfill its true potential but will also wither away under the weight of its contradictions. The Goa summit did little to belie the contention of cynics that BRICS is just an acronym with little substance.

Brahma Chellaney, a geostrategist and author, is Richard von Weizsäcker Fellow at the Robert Bosch Academy in Berlin and professor of strategic studies at the Center for Policy Research in New Delhi.

Why India must not neglect Myanmar

Posted on October 15, 2016 by Chellaney

Brahma Chellaney, The Times of India, October 15, 2016

download The visit of Aung San Suu Kyi, Myanmar’s de factor leader, to India is significant. Myanmar’s geographic, cultural and geostrategic positioning between India and China makes it critical to long-term Indian interests. Yet it took 25 years for an Indian prime minister to visit Myanmar, India’s gateway to the east.

Since that visit in 2012 by Manmohan Singh, India has upgraded its Myanmar policy from constructive engagement to comprehensive interconnection. It was at the India-ASEAN Summit in Myanmar’s capital Naypyidaw in late 2014 that Narendra Modi launched India’s “Act East” policy. Yet, for his own inauguration in office, Modi invited leaders of all regional states, including Mauritius, but not next-door Myanmar, in a reminder of how India episodically neglects an important neighbour.

Suu Kyi’s visit is part of India’s invitation to member-states of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) for a joint summit with BRICS at Goa. Bringing together Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand, BIMSTEC is a better alternative for India than the South Asian Association for Regional Cooperation (SAARC), which is likely to remain a stunted organization. Indeed, SAARC boxes India in an artificial regional framework; India’s natural strategic compass is broader.

Suu Kyi, committed to reviving her country’s old tradition of a neutral foreign policy, is seeking to carefully balance relations with major powers. On her first visit to a major capital since her party won a landslide election victory less than a year ago, Suu Kyi in August visited Beijing, not New Delhi where she was educated. Her aim was to smooth over the frayed relationship with China. Ties with China have been roiled by Myanmar’s 2011 suspension of the $3.6-billion, Chinese-financed Myitsone Dam project.

The suspension on the eve of China’s national day constituted a slap in the face to Beijing — a loss of face made worse by the fact that the action became a turning point for Myanmar’s democratization and reintegration with the outside world. The bold move, by demonstrating that Myanmar was no client state of China and by helping to accelerate the country’s transition to democracy, set in motion an easing of Western sanctions and ending Myanmar’s international isolation — best symbolized by Barack Obama’s 2012 visit, the first ever by a U.S. president.

But with China still wielding more leverage over Myanmar than any other power, President Xi Jinping is now pushing for the Myitsone project’s revival — or the undoing of the 2011 humiliation. To blunt Chinese pressure, Suu Kyi, before visiting Beijing, appointed a 20-member commission to review the project.

After her China trip, Suu Kyi, as part of her balancing act, visited Washington, where she was warmly received. But it was just last weekend that Obama lifted U.S. economic sanctions on Myanmar, while retaining military-related sanctions.

Myanmar, like India, has long complained about the flow of Chinese arms to guerrilla groups, accusing Beijing of backing several of them in its north as levers against it. Still, recognizing that Beijing holds the keys to ending decades of armed conflict in Myanmar, Suu Kyi has given China an important role in her new initiative to promote ethnic reconciliation. Yet, despite China playing mediator, a Suu Kyi-sponsored peacemaking gathering attended by ethnic warlords in Naypyidaw ended early last month without any headway.

China values Myanmar as a strategic asset, viewing its long shoreline as a gateway to the Indian Ocean, where it is seeking to chip away at India’s natural-geographic advantage. Having established a foothold in Myanmar’s Kyaukpyu port, from where the new energy pipelines lead to southern China, Beijing is seeking to open a shorter, cheaper trade route to Europe via Myanmar’s River Irrawaddy.

Against this backdrop, India can ill afford to neglect Myanmar, or persist with its sluggish implementation of projects there, or unilaterally conduct cross-border military strikes on Naga guerrillas. While being sensitive to Myanmarese concerns, India must actively involve itself in Myanmar through greater trade, investment and counterinsurgency cooperation to help reduce the salience of Chinese influence and to further Suu Kyi’s agenda for a balanced, neutral and pragmatic foreign policy.

Brahma Chellaney is a geostrategist and the author, most recently, of “Water, Peace, and War.”