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

By Zorawar Daulet Singh

manufacturing and technology sectors that have created their own captive sources of "public goods". But such corporate enclaves are yet insignificant in the larger economic story.

Revisiting Hu's trip
China views India as just another "middle-ranked" power, albeit one with great-power aspirations, and is no longer concerned



about balancing against it. Its true strategic competitor lies to its east - the US. And its engagement in South Asia is partially driven by its geopolitical competition with the United States in an emerging strategic region.

Despite that, China has sensibly sought not to antagonize India lest it completely turns to the Western orbit, which explains its magnanimity in at least rhetorically equating India with China in public statements, a hilarious proposition given the true geopolitical and geo-economic realities. It may also be reiterated that, except for Sri Lanka, China is contiguous to or geographically very near to all South Asian states. China therefore is extremely interested in regional stability lest it is drawn into a future conflict.

India's weakness stems from its internal political economy - lack of a cohesive polity and a consequent rise of regionalism over any notion of national interest - to a point where the Indian state is gradually losing its "infrastructural capacity".

This has severely impacted the trajectory of its economic development - where growth has occurred in small pockets where governance still prevails and has largely benefited from Western portfolio capital (as opposed to FDI, which as alluded to earlier would require state-driven macroeconomic direction and allocation effort), and a select group of Indian business houses.

The UN's Human Development Index, which looks beyond GDP to a broader definition of well-being, ranks India 126th out of 177 countries. The World Economic Forum's competitiveness report for 2005 ranked India as No 111 of 117 countries. The foremost issue then becomes transforming India into a "hard" industrial powerhouse, as opposed to a "soft" service-based trading economy, that would offer its South Asian neighbors an irresistible choice to integrate their economies with India, in a similar way that China has served as a "magnet" to Southeast and Northeast Asia and more recently even South Asia.

Therefore, until New Delhi eschews the traditional and now outdated zero-sum premise of national-security policy and recognizes the importance of economic relations as an integral component of foreign policy, its relative position in both the regional subsystem and the larger international system will continue to deteriorate.

Moreover, its reliance on primarily military instruments to ameliorate its relative position is likely to be in vain. On the other hand, a transformation in thinking would lead to new initiatives, not least of which is a complete reassessment of the country's economic development strategy, and gradually bring about subcontinental connectivity and integration of India's border states with the "home" economy.

But this vision of creating an Indian-led South Asian union would require an internal systemic socio-political-economic change, and not through foreign policy alone.

Zorawar Daulet Singh, who has a master's degree in international relations from the School of Advanced International Studies, Johns Hopkins University, is a strategic-affairs analyst with a focus on Eurasian geopolitics, India's energy security, and Indian foreign policy, based in New Delhi. Email zorawar.dauletsingh@gmail.com

Speaking Freely is an Asia Times Online feature that allows guest writers to have their say. Please click here if you are interested in contributing.

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