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    South Asia
     Dec 21, 2006
Page 2 of 4
SPEAKING FREELY
Security: India loses its grip

By Zorawar Daulet Singh

deter adversaries. This is achieved by integrating other states with the "home" economy, through economic aid or trade or investment, thereby gaining varying degrees of influence on their actions.

To be sure, military power is the ultima ratio in international politics. This is because unlike domestic political systems, where



a well-defined hierarchy exists and a state enjoys a monopoly of power, the international system has no comparable political arrangement. And in the absence of an authoritative supranational government to preserve order, states are driven to meet their security needs by building their military capabilities.

But it is meant to serve as the last resort in the entire gamut of national instruments available to a state to serve its interests. This is particularly so in the nuclear dimension. Geopolitical competition between two nuclear-weapons states ensures that the economic instrument assumes an even greater role in foreign policy. India's own historical experience is instructive here.

Despite being a nuclear-weapons-capable state since 1998, India has achieved almost nothing to advance its core national interests. Again, this is not to imply that nuclear weapons are not relevant to national security - they are. But their utility is limited and lies primarily in serving as a form of deterrent vis-a-vis other adversaries with similar capabilities. But below the nuclear threshold, or more generally below conventional military power, India's weakness becomes all the more glaring. And it is because of deficiencies at these lower thresholds of comprehensive national power that India is unable to exercise meaningful influence in its own back yard.

That Indian strategists have been defining security in such narrow terms rather than through a multi-faceted paradigm is affirmed by their failure to distinguish between the core and peripheral aspects of Indian interests. The distinction between these interests is driven by the scarcity of resources available to a state. To blur distinctions between them is a failure of strategic perception - an inability to relate short-term to long-term considerations. Arguably, the core of Indian security should be premised on developing strong interdependent relations with all regional actors in the form of umbilical links rather than on the periphery - naval expansion and a blue-water navy - since it has an almost negligible effect on comprehensive Indian security.

According to the Asian Development Bank, South Asia's intraregional trade accounts for just 5% of its total trade or just $6 billion, while for East Asia the ratio is 55%, indicating the high level of regional integration in the latter region. This statistic reveals the pivotal role of the Chinese economy for its East Asian neighbors, while India is economically almost irrelevant to its region.

While the share of South Asia in foreign-direct-investment inflows of developing countries is about 3%, its share in the global FDI inflows is almost negligible at 1.08%. In 2004, according to the World Investment Report, FDI stocks as percent of gross domestic product (GDP), a ratio adjusting for economic size, ranks India below Sri Lanka, Pakistan and Bangladesh. In the past five years, only 17% of foreign inflows into India have taken the shape of FDI, the remainder being foreign-institutional-investor inflows. The equivalent ratio for other emerging economies was 68%.

That India today has limited capacity for influencing events in its own neighborhood is as much a reflection of its own economic weakness as it is to the new geopolitical pluralism in South Asia. Consequently, outside actors, particularly the United States and China, are increasingly reorienting their policies to engage economically with all South Asian states, which have been consistently ignored and isolated from India's economic expansion.

The reasons for such a foreign-policy failure on India's part are manifold: unwillingness to reshape its external economic relations with key states on its border, increasingly leaving such relationships hostage to domestic political factors, but most important, its own economic-development strategy, which has failed to exploit the country's comparative advantage - its vast labor surplus.

For instance, at a time when Nepal and Myanmar could play pivotal roles as transit states in a quest for inter-regional integration between China and India, sections of New Delhi's security elites continue to uphold obsolete notions such as "buffer zones", in the process driving both the regional neighbors and India's own border areas deeper into penury.

Today, relations with Sri Lanka, Nepal, Bangladesh and Myanmar are examples of Indian ambivalence, where the foreign-policy establishment has been unable to transcend internal socio-political constraints to integrate these economies with India's.

The result: the United States and China have effortlessly established bilateral relations with most of these states, which are themselves seeking external investment and trade relations to fulfill the needs of their economies. Indian strategists are now gradually realizing that India's neighbors are increasingly in a position to make their own geopolitical choices in establishing bilateral links with outside states.

Sinews of power
There is no such thing as "soft" power, a term often employed by some commentators when alluding to India's rise. Today, it has become a euphemism for Indian weakness. There is only "hard" power, which stems from a sound economic base and by extension an autonomous technological and military capability.

To be sure, soft power, if defined as ideological or cultural appeal, would matter, but only if it represented a manifestation of hard

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