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    South Asia
     Aug 18, 2007
Page 2 of 2
South Asia's schizophrenic twins

By Chan Akya

states in the north, in turn fueling resentment elsewhere. Diametrically opposite to the experience in Pakistan, it was in the richest Indian states such as Punjab that separatist movements broke out. While that was quelled by the late 1980s, relatively prosperous Kashmir erupted with terrorists, many of them returning from successful exploits against the Soviet army in Afghanistan.

Away from sectarian lines of thinking, the experience of the social



strata has been much less favorable for India. As I wrote in the above-referenced article on jihadis in Pakistan, [1] the Maoist movement has attracted thousands of India's rural poor into battling the government after the failure of economic growth left them overly dependent on the rural rich for their sustenance. While owning their own plots of land gave Indian farmers some leeway, a combination of high birth rates that split land holdings into uneconomic sizes and indifferent irrigation systems pushed a number into debt, and in some cases even suicide. This is where Maoists draw their recruits from and, as I argued before, the pool is very similar economically and demographically to the one that feeds Islamic terrorist groups operating out of Pakistan.

But not everything is doom and gloom.

IT leads the way
Like eunuchs looking at erotic rock carvings in some Indian temples, trade-union and communist leaders can only gaze with awe at the salary hikes being bestowed on the information-technology (IT) sector, especially in India. The proof of how markets work and eventually reward the workers sits uncomfortably for anyone brought up on a steady diet of Nehruvian socialism, but it is here that Asian politicians can learn their most valuable lessons.

India's IT sector was created by all the "wrong" people - the sort who would have otherwise joined a dead-end government job or emigrated abroad to enrich North American companies. Attempting to avoid both rampant corruption and the expensive real estate of Mumbai, the sector was located in the southern city of Bangalore initially and has since expanded elsewhere in the region.

With unconstrained growth resulting in explosive demand for people, India's IT cities soon became a melting pot of the best talent from across the country and produced with it significant social changes. Southern cities are notably more cosmopolitan than their counterparts in the north and, as with cities elsewhere in India, have provided easy refuge for the rural poor.

In a previous article, [4] I characterized the battle for Delhi's road access as one for economic growth, necessitating the increased industrialization of the country. Similar pressures that are at the root of Pakistan's troubled regions can only be addressed by increased growth of the kind shown by the freeing up of India's IT sector.

There are of course negative consequences of India's IT sector. While its achievements are truly staggering, the sector can also be accused of distancing itself from its environment. Providing themselves with independent power plants, water facilities and self-contained townships, IT businesses avoided dealing with the worst examples of Indian government action and corruption. While that is a fix for the short term, it cannot be applied over the longer term.

The next 60 years
The easiest way to achieve the balance between increased economic growth and improved government services on water, health and education across India and Pakistan is the freeing up of the business sector. Selling down government stakes in state- (and military-) owned enterprises would inevitably increase overall economic growth for starters. Increased government revenues must be spent on improving physical and human infrastructure, including on roads, water and power as well as education, legal and medical services.

Keeping the two nuclear powers on the path to stronger economic growth will pave the way for improved relations, as increased wealth inevitably pushes people to reconcile differences. Many of the worries of the past few years have been fueled by feckless politicians unable to ignite any economic growth, and therefore resorting to empty rhetoric.

All of this, though, depends very much on the ability of governments to push through structural reforms. The outlook for that, however, remains far from encouraging. Inevitably, political and diplomatic evolution will have to wait on economic improvements.

India's corrupt elite will probably demolish democratic institutions progressively over the next 60 years, while Pakistan's elite will likely face upheavals similar to what has been observable in Saudi Arabia and other Middle Eastern states. The government of Pakistan doesn't enjoy the legitimacy required to push through the reforms it is attempting, while the government of India, which doesn't lack any legitimacy, seems intent on preserving the status quo. This dichotomy appears more like schizophrenia at the top level, hence my characterization of the two countries as the schizophrenic twins.

Notes
1. The jihadi ate my homework, Asia Times Online, February 24, 2007.
2. The wages of corruption, ATol, August 19, 2006.
3. The Punjab was split between Pakistan and India in 1947, prompting the worst sectarian riots in history. On the eastern front, East Pakistan was split from Bengal. Ironically enough, it was these two states that had contributed by most measures the most to the freedom struggle against the British.
4. Caste-away, ATol, June 15, 2007.

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