| 
                   
                                    (Talk
                        delivered at the United Service Institute of India
                        on May 11, 2005)                  
                INTRODUCTORY REMARKS
 
                                  Several
                      millennia ago a renowned philosopher said: ‘The Unexamined Life
    is not Worth Living”. The subject of the talk this morning falls within
    the contextual ambit of that quotation from Socrates. Clairvoyance in this
    case does not amount to reading the tealeaves or crystal gazing. It is simply
    an attempt to analyze what is taking place in the world: some of it transparent,
    manifestly so, the larger portion hidden from the public gaze, under a cloud
    of media-abetted misrepresentation on a global scale.  
                 When
                      George W. Bush became the President at the beginning of
                      the new millennium the horrors of 9/11
                    had not yet taken place and nor had the world witnessed
      the retaliatory might of the U.S.A. Moreover, the 1972 ABM treaty had not
      been unilaterally abrogated, the Kyoto Protocol had not been definitively
      rejected
      by the remaining superpower and so many other negative, potentially planet
      destroying, actions had not been unleashed on the world. The world had
                    entered the new century with hope. In a handful of years – a little over five
      years of the younger Bush presidency – the world is beset with fears,
      of a type that had not even been conceived of at the turn of the millennium. 
                 While
                      the world may have put in place mechanisms for mitigating
                      the effects of natural calamities
                    visited on humankind, it has yet to find ways to
        deal with the disasters brought on by the policies of powerful individuals,
        be they
        at the helm of affairs in some of the most powerful countries or shadowy
        non-state actors. It hardly requires any clairvoyance to see that the
                    present great power
        policies are not conducive to peace in Asia, or the world. A continuance
        of these policies threatens to dismantle the existing global order and
        plunge
        the world into deepening distress – for human beings as well as
        for the health of the planet. That being the case the most important
        issue before the
        world is to put in place mechanisms that could act as a check on the
        untrammeled freedom enjoyed by the world leaders, more so, where they
        are not in consonance
        with the wishes of the vast majority of the people of the planet, including
        as well, in many cases, the opinion of people within the countries that
        flaunt world opinion.  
                The items selected for discussion
            in this paper are: 
            - The Hegemonic Decline 
       - The Global Economy 
       - Iran 
       - New Initiatives Toward Lasting Peace on the Subcontinent 
                Ideally the proposed
   expansion of the UN Security Council and the NPT Review Conference now under
   way should have found mention. Time and space
      considerations preclude their inclusion in a single presentation.  
            THE HEGEMONIC DECLINE 
                                      The
                      discussion starts with the US for the simple reason that
                      much of what that country
                        does impacts on the rest of the world, more so in the
                      regions where
      there is a sizeable US presence, economic, military or both, as is the
                      case in this part of the world. In like fashion the term ‘hegemon’ is
      not used as a pejorative. It is very simply a statement of fact. US super
      ascendance over the world is an established fact. Since there is no getting
      away from it, it becomes axiomatic that any attempt to look into the future
      has to take into account the US ability to shape or interfere with events.
      Here an analysis is being attempted of American propensity for strengthening
      their dominance of the world juxtaposed to weaknesses that may get exaggerated
      in the coming years. The weaknesses that could lead to a decline in US
      power would not have been brought about solely through adversarial action;
      the
      more glaring ones have resulted from shortsighted US policies. The ensuing
      paragraphs highlight some of the effects that could lead to a diminishment
      in US power. 
                 The
                    published items reproduced below have generally been gleaned
                    from Western commentators, mostly
            the U.S. press: 
                -
                      President Bush's "war
                    on terror" has
                    inflicted greater costs on America than that inflicted by
                    the terrorists themselves. - PAUL CRAIG
              ROBERTS 
                - The American presence
                    in Iraq is costing $4.5 billion a month and putting
              huge strains on the military. Although George W. Bush is comfortably
                          installed in
                his second term the political costs of the second term dominated
                    by a nightly accounting of continuing casualties might have
                          to be borne by his party,
         the
                Republicans, at some stage or the other. (Emphasis added).  
                (What
                      is being conveyed here? Not prognostication, merely looking
                      ahead, to make an assessment
   that many Republican senators and congressmen could
          increasingly
          start questioning President Bush’s more radical agenda within USA,
          as distinct from his policies in Iraq. Concerns are being voiced that
          George W.
          Bush’s persistence with his variety of social security reform
          could considerably debilitate the US middle class over a period of
          time. Therefore,
          unless the
          White House is able to push through the presidential agenda and the
          more controversial appointments within the next 12 to 18 months, the
          chances
          of success, thereafter,
          would be minimal. After 2006, Mr. Bush might end up becoming the lamest
          of the lame duck presidents). 
                - To finance their
                    spending, Americans are borrowing from foreigners at a rate
                    of more than six percent of GDP each year or to put it more
                 simply
       over $ 2
              billion every day. 
            -
                North Korea's public revelation that it possessed nuclear weapons
                represents a formidable
                        challenge for the Bush administration. At face value,
            the North Korean claim underlines the failure of President Bush's
                nonproliferation
            policies.  
                 -
                      The United States while denouncing Tehran’s
              development of nuclear weapons is quietly modernising its own arsenal.  
                "In
                this arena of institutionalized cronyism, the living dead rise from
                          the Cold War graveyard to haunt the halls of Congress whenever
                the defense-appropriations subcommittees are in session. You might
                wonder how the military will employ,
                          say, an F/A-22 fighter, a B-2 bomber, or an SSN-774 attack
                submarine to protect you from a suitcase nuke or a vial of anthrax
                slipped into the country along
                          with the many shipments of contraband goods that enter
                unseen by government agents. But never mind; just keep repeating:
                there is a connection between the War on
                          Terrorism and the hundreds of billions being spent on useless
                Cold War weaponry. It's important to Congress, the Pentagon, and
                the big contractors that you make
                          this connection." ("The Iraq War -- A Catastrophic
                          Success" by
                          Robert Higgs). 
                 The most striking fact about American politics is the disjunction between
                            the opinions of ordinary Americans and the behavior of the political
                  elites (The Economist, April 9, 05).  
                Although Afghanistan is still beset by political disorder,
                  continuing insurgency and major drug trafficking, the Afghan
                  War is largely seen as a success – in
                    USA and perhaps elsewhere as well.  
                MILITARY ASPECTS
 
                 Not
                      long back Defense Secretary Donald H. Rumsfeld signed a
                      new National Defense Strategy paper
                    that said
                                the use
                              of space "enables us to project power anywhere in
                              the world from secure bases of operation." The Pentagon,
                              as is generally known is developing a sub-orbital space
                              capsule that could hit targets anywhere in the world
                              within two hours of being launched from U.S. bases. It
                              is also developing systems that could attack potential
                              enemy satellites, destroying them or temporarily preventing
                              them from sending signals. It would mean that the United
                              States is moving toward a national space doctrine that
                              is preemptive, proactive and potentially destabilizing.
                              Moscow and Beijing have for years promoted a new treaty
                              to govern arms in space, since the current international
                              agreement prohibits only nuclear or other weapons of
                              mass destruction in space. Hu Xiaodi, the Chinese ambassador
                              to the United Nations Disarmament Conference, at a U.N.
                              disarmament meeting last year criticized efforts to achieve "control
                              of outer space," as well as research into weapons
                              that can be used there. "It is no exaggeration to
                              say that outer space would become the fourth battlefield
                              after land, sea and air should we sit on our hands," he
            averred.  
                 Washington
                      sees gaining control of space as key to maintaining global
                      military dominance, and
                    missile
                                defence is part
                              of the strategy. The U.S. plans to eventually have
                                missile defence systems based in space (as well
                                as on land, air
                              and sea). This is part of the US attempt to achieving "space
                              superiority," a goal spelled out in the 2004 U.S.
                              Air Force document Counterspace Operations, which argues
                              that the U.S. must have "space control" and be
                              able to "deny an adversary freedom of action in space." The
                              prospect of the arms race moving into space may
                              give comfort to Washington strategic planners,
                              but dismays
                              the rest
                              of the world. In 1967, ninety-seven nations signed
                              the Outer Space Treaty banning weapons from space.
                              Since then,
                              there has been pressure for a tougher ban. Virtually
                              all nations now support a proposed new ban. The
                              U.S. does not.
                              It wants to take control of space to achieve lasting
            military dominance.  
                 Because
                      of the extensive US military involvement, which is not
                      limited to the Middle East, the
                    employment
                                of special
                                forces in military policing operations,
            under the guise of peace-keeping and training, is contemplated in
                    all major regions of the world. A significant portion
                                of this deployment would be undertaken
            by private mercenary companies on contract to the Pentagon, NATO
                    or even the United Nations. The growing profits of
                                defence
                                contractors and security agencies
            (mostly western) are undermining the morale and motivation of professional
            soldiers in these countries, notably USA and UK. In the longer term
                                they could adversely affect intake of good quality
                                new
                                recruits. For example, it has been
            reported, that retired professionals from Britain’s SAS are
            charging up to $ 1000 per day for specialized work in Iraq in the
            danger zones.
            It has led to many regular SAS personnel seeking premature release,
            because the differential
            between their emoluments and those of the employees of security agencies
            with equivalent capabilities is so vast as to put paid to the patriotism
            of most
            serving soldiers. Moreover, the occupation of Iraq, being a case
            of sheer capitalist exploitation of another country, would hardly
            fall in the
            category of national
            causes inspiring patriotism. 
                 At
                      this stage the role of the National Guard and the Reserves
                      (together, the Reserve Component)
                    needs to be understood. Beginning in the late
              1970s, U.S.
              military forces were designed to incorporate this Reserve Component
              as an essential element in any major military operation. The Guard
              and the
              Reserves were not
              set up, however, to fight a long and grueling counterinsurgency
                    war. The Iraq War has highlighted deficiencies in this regard.
                    Indeed,
              the Army Reserve is "rapidly
              degenerating into a broken force" in the words of its top commander in
              early 2005. The focus is on the Army Reserve and the Army National Guard, by
              far the largest of the reserve components (RC). They are experiencing the greatest
              difficulties. As of January 2005, the RC makes up some 40 percent of the military
              in Operation Iraqi Freedom. Among the Army dead in OIF, about a quarter have
              been from reserve components. Surveys and interview data have found large differences
              in the morale of the active duty versus the reserve components. These differences
              have been widely affirmed over a period of time. Reservists were seen to be
              markedly more dissatisfied than the active force. This was not thought to be
              on account of the mission, but rather due to the reservists' perception of
              inadequate training and poorer equipment compared to that of the active duty
              forces. The recurring theme was that reserve components were treated as "second-class" members
            of the Army. 
                 The morale issues that have come
                    to public attention in OIF have revolved around reserve units;
                    the most notable being the prison
                abuse scandal
                of the 372nd
                Military Police Company (based in Maryland) in Abu Ghraib. There
                was also the case (October 2004) of the reservists in the 343rd
                Quartermaster Company (based
                in South Carolina) who refused orders to deliver fuel on the
                    grounds that their vehicles were inadequately armored and
                    the fuel to be
                delivered
                was contaminated.
                On December 8, 2004, Specialist Thomas Wilson of the 278th Regimental
                Combat Team (Tennessee) asked a pointed question about insufficient
                vehicle armor
                of Defense Secretary Rumsfeld that became a national story. In
                addition, significant numbers of persons called up for IRR duty
                have sought
                to avoid being activated
            and made their cases public by taking legal action. 
                 In
                      describing the twin components of the emerging US military
                      strategy – i.e.,
                  the projected domination of space at astronomical outlays and the declining
                  motivation of the soldiers on the ground - it is intended to show that while
                  the heads of the US establishment may remain euphorically in the clouds the
                  situation on the ground could become more complicated with each passing day.
                  It could ultimately cause setbacks, which the highest technologies might not
                  be able to retrieve. The creeping infirmity referred to above has a bearing – or
                  should have a bearing – on US plans for the subjugation of Iran - dealt
                  with later on in the paper. (The aspect of demoralization and psychological
                  disorientation of US forces has been dealt with extensively in the author’s
                  books Dealing with Global Terrorism: The Way Forward (Sterling-2003) and Global
            Security Paradoxes: 2000-2020 – MANAS - 2004). 
                 Before moving on to other issues
                    it is worth pondering over an excerpt from a book published
                    barely two months ago in the
            USA: 
                “In physical economy, the fixing of the technology of practice to some
                    existing level, defines the physical trend in the economy as entropic. Empires
                    and the like forms of exploitation of foreigners, compensate, if only temporarily,
                    for the decadence of the mother country by parasitism against the foreigner’s
                    physical wealth and human bodies. As the factor of entropy in the combined system
                    of native and foreign operations closes in on the combined elements of that imperial
                    or quasi-imperial system, as upon the U.S.A. and increasingly “outsourced” Europe
                    today, the logic of the decline and fall of the Roman Empire in the West, and
                    then in the East, is expressed as the doom of the system, as the U.S. is threatened
                    by destruction by its own hand today. (Earth’s Next
            Fifty Years by Lyndon H. LaRouche, Jr.) 
                 These are not speculative forebodings.
                    They are pointers to a likely decline in US power unless
                    the US government
                      decides
                      to
                      harmonize
                      its policies with
                        the other major world powers in a joint effort for promoting
            global stability.  
                                  THE GLOBAL ECONOMY 
                                  The
                    West is facing the twin strains of declining fertility and
                    loss of manufacturing
                            and office jobs to Asia. Whether its economic security
                    could continue through its present dominance of the financial
                    and the knowledge industries alone remains
                            a moot point. Even the question of whether the nation
                    state is eroding in the era of globalization needs going
                    into. Undoubtedly, there may be facets of
                            national sovereignty under considerable strain due
                    to globalization and the spread of MNCs. Nevertheless, there
                    are contra-indications showing that for
                            that very reason an opposite if not an equal reaction
                    might be building up. WTO and other protocols demanding international
                    adherence might tend to undermine
                            national sovereignty. As a consequence thereof many
                    nations have decided to strengthen national controls in areas
                    that do not come under the purview of
                            global protocols. The xenophobic sentiment is likely
                    to get more pronounced in the coming years. Similarly, post-9/11,
                    in the face of threats of terrorism,
                            global or local, more and more countries are enacting
                    legislations that put greater curbs on individual liberty.
                    Ironically, this tendency is the strongest
                            in the countries that are in the forefront for the
                    promotion of democracy around the world, notably USA and
            UK. 
                 Taking all these aspects together
                    some of the leading economists from around the world have
                    been drawing attention with increasing
                      frequency to the coming
                              economic collapse of the global economy unless
                    urgent remedial measures are put in place. Here is a sampling
                    of
            some of the comments: 
                -
                      The US economy is growing at a “reasonably good pace,” said
                        the Federal Reserve Chairman Alan Greenspan, but he warned
                        that dangerous budget
                                        deficits must be fixed, preferably through
                        spending cuts. “You cannot
                                        continuously introduce legislation which
                        tends to expand budget deficit because down the road the
                        impact of an ever-rising deficit, especially as a percent
                                        of the GDP, creates some significant weakness
                        in the structure of the economy,” Greenspan
                                        told the House of Representatives Budget
                        Committee. “Addressing the government’s
                                        own imbalances will require scrutiny of both
                        spending and taxes. However, tax increases of sufficient
                        dimension to deal with our looming fiscal problems
                                        arguably pose significant risks to economic
                        growth and the revenue base,” he
                                        stated. (The Economic Times, Friday
                4 March 2005). 
                 -
                      Every week of the deployment of troops in Iraq costs US
                      taxpayers $1
                        billion. The overall
                        spending on the military
                        operation
                        and reconstruction may top $280
                                        billion. The Iraqi campaign is becoming
                        the most expensive in US history. The trouble is that
                      the US
                        army cannot pull out of Iraq now or in the future. It
                                        would be construed as a defeat for Washington’s
                    Middle Eastern policy. 
                 -
                      As a nation we are consuming and investing about 6 percent
                          more than we are producing. What holds it all together
                          is a massive and growing flow of capital
                                          from abroad, running to more than $2
                          billion every working day, and growing. There is no
                      sense of strain. I don’t
                                          know of any country that has managed
                                          to consume and invest 6 percent more
                                          than it produces for long. The United
                                          States is absorbing about 80 percent
                    of the net flow of international capital. 
                 (US
                    economy skating on thin ice by Paul A. Volcker, The Tribune,
            April 13, 2005) 
                 Although
                      there would be many contributory factors to a global economic
                      decline,
                                              the main ones are
                                              being linked to US profligacy and
                      fiscal indiscipline. In
                                              the opinion of this writer the
                    looming crisis before the global economy
                      can be artificially
                                              kept at
                                              bay for a considerable period of
                      time by the powers that be. The reason is
                                              that
                                              any sudden
                                              decline
                                              in the US power could adversely
                                              affect many other nations, if not
                      the globe as a whole. So, therefore, at
                                              this point
                                              in time,
                                              regardless of the US economic overextension,
                                              a catastrophic
                                              - as distinct from a gradual -
                    decline in US power might generally not be
            in the world’s interest.  
                 Currently,
                      the United States is hugely indebted to the nations
                                                that hold the
                                                largest foreign
                                                exchange reserves: China, Japan
                                                and Saudi Arabia, among
                                                others.
                                                These countries know that the
                    reserves they hold – collectively reaching
                                                a figure of approximately 2 trillion
                    dollars, if not more - are intrinsically perhaps not worth
                    the paper they're written on. Japan and China know it? Saudi
                                                Arabia knows it? But, they are
                    all part of the global system. The governing
                                                elites of China, Japan, Saudi
                    Arabia, have been co-opted into the system. So, they're not
                    in a position to pull the rug from under the feet of the
                    United
                                                States, and bring in that collapse,
                    because a collapse of the United States ipso facto translates
                    into a collapse of China's ambition to be a global power
                                                by about 2025. China, therefore,
                    is not going to pull the rug. Although the U.S. Treasury
                    receipts may be devalued paper, China is using those assets
                    to
                                                transform itself into a global
            power. 
                 The
                      powers that control the U.S. establishment today are aware
                                                  that their economic
                                                  policies are pushing the United
                                                  States into a
                                                  headlong decline?
                                                  Not only are
                                                  they alive to the possible
                    outcome, having access to some of the
                                                  best economic advice
                                                  in the world,
                                                  there appears to be some deliberateness
                                                  to it. They are
                                                  positioning themselves to benefit
                                                  from a global collapse. In
                    the United States,
                                                  the people allowing
                                                  the decline to set in are putting
                                                  their own money into
                                                  an area that is already defunct.
                                                  They know it. The National
                    Missile Defense
                                                  (NMD)
                                                  effort alone,
                                                  over the period of its lifespan
                                                  of 25 years or so, is going
                                                  to cost America $1.2 trillion.
                                                  The identity of the people
                    who have bought
                                                  into and
                                                  control the
                                                  firms and entities that are
                    going to support the NMD and allied
                                                  space domination systems is
            revealing. 
                 As
                      stated earlier, the challenge before the world is not so
                                                    much to diminish
                                                    U.S. power, a catastrophic
                                                    decline at this juncture
                    not being a solution, but
                                                    to change U.S. mindsets and
                                                    channel America's amazing
                    vitality toward
                                                    productive ends;
                                                    ends that will
                                                    allow for the speedy revitalization
                                                    of the planet. There
                                                    is an urgent need for a global
                                                    financial regulatory agency – an independent
                                                    body – for putting curbs on financial speculations that could distort
                                                    the global economy or that of a country by outside forces. The regulatory body
                                                    should strive to first restore economic equilibrium on a regional basis and
                                                    prescribe limits to speculative and windfall profits. Market forces no longer
                                                    control global markets, if they ever did. The oft – used capitalist homily
                                                    of ‘leaving it to market forces’ is
                                                    not only routinely misapplied
                                                    it is perhaps one of the
                                                    biggest myths to have been
                                                    propagated since the advent
                                                    of Adam Smith. Hardly any
                                                    economist can reasonably
                                                    claim to understand the subterranean
                                                    capital flows that buffet
                                                    the global markets practically
                                                    on a
            daily basis.   
                IRAN 
                                      There
                    is not much doubt that US preparations for action against
                    Iran are
                    going ahead. What form the action might
                          take or when remains a matter for conjecture. It could
                          be any of the following: outright invasion, regime
                    change, or intensive high-tech bombardment. Although a full-scale
                          invasion in the manner of Iraq appears to be unlikely,
                          it cannot, however, be ruled out. Iraq itself was to
                          have been an important base for the projection of US
                          force against Iran. The latest developments in Iraq
                    would
                          have relegated this jump off point to a lower priority.
                          US forces in Iraq would, nevertheless, attempt to effectively
                          seal the border with Iran. The other launch pads that
                          have been developed are the bases in Afghanistan, Central
                          Asia and Pakistan. The last named country has become
                          the most important, with sizeable tracts in Balochistan
            reportedly being acquired by the US. 
                 In the face of the likelihood of
                    US action against Iran what should the world do? If it were
                    to supinely sit back as in the case of Iraq and simply twiddle
      its thumbs, clearly it would stretch the existing world order to near breaking
      point. More importantly, it would make the US military-industrial complex
                      even more intractable. The world cannot shut its eyes and
                      allow Iran to go under
      in the manner of Iraq. Standing up for Iran does not in any way indicate
                      support for its nuclear policies or for the religious dispensation
            running that country.  
                 Since mere condemnatory noises have
                    seldom deterred the Americans, concerted global action must
                    be put in place
                        before further madness engulfs the region.
        These actions could include, inter alia: 
            - Resolution to be
                      passed by the European parliament warning USA not to undertake
                      military action against Iran without UN Security Council
            Resolution. 
                 - Similar resolutions
                        in respective national parliaments by Germany, France,
                        Spain, and all other countries that could be deemed to
                        be against the projected
                  US action. 
                 - Russia, China
                        and India to make an unequivocal statement that military
                  action against Iran by the USA would invite non-cooperation with
                        USA by these countries
                    in designated areas. 
                 - Russia to consider
                        extending more efficacious defensive military help to Iran
                        to withstand
                        US military action. It is high time that Russia too starts
                    drawing
                      its red lines or les lignes jaunes as the French would say
                        because should Iran
                      go under in the pattern of Iraq, Russia would be further
                        diminished to a considerable extent. German and French
                        commercial interests would also be adversely affected,
                      as happened in the case of Iraq. Perhaps there is a method
                      to the American madness. 
                 On the part of Iran, as a measure
                        of abundant caution, it could even consider inviting
                    Russia to establish one air
                        and one
                        naval base in
                        Iran for a period
                        of 5 years. Iran would defray the expenses of the two
                    bases on Iranian territory at mutually worked out locations.
                        Whether Russia
                        would agree
                        is a matter that
                        can be explored by the two countries. The reasons for
                    the
                  choice of Russia in this regard would be fairly evident. 
                 The
                      US and its allies must be watching with dismay the spread
                      of Shiite influence in the Middle
                    East. With most
                          of Iraq
                          already under their
                          sway, the Iranians
                          would be looking covetously at Lebanon. The Americans
                      might have succeeded in booting out the Syrians. The vacuum
                      thus
                          created
                          is most likely
                          to be filled by the Iranian protégé, the Hizballah. It is perhaps the only
                          well-organized, well-funded and well-backed force remaining in Lebanon after
                          the Israeli withdrawal and the projected Syrian withdrawal. The Iranians and
                          the Shiite heads have become politically savvy. They sense that US policies
                          could pave the way for Shiite dominance of the Middle East. To further these
                          aims, Hizballah’s Sheikh Hassan Nasrullah will most likely mould his
                          followers into a political party in order to capture political power in Lebanon.
                          Not only would the US be unhappy with this turn of events, Sunni Islam would
                          be more shaken with these developments. It is with this anticipated backlash
                          from Sunni Islam in mind – at whatever stage – that Iran is pursuing
                          its nuclear weapons programme. The Iranian nuclear capability is not exclusively
                          designed to counter USA and Israel. There are longer-term compulsions for Iran,
                          much after the Americans decide – again at whatever stage – to
                  leave the Middle East. 
                 Regardless of the present situation
                    in Iran and the current turmoil around Iran, the world including
                    civilized
                            people
                            in the USA,
                            must appreciate
                            that Iran is an ancient civilization with a very
                    refined culture that pre-dates Islam by several millennia.
                            The destruction of that country
                            in the manner
                            of
                            Iraq would deprive the world of another unique heritage.
                            It
                            is too steep a price to pay for gratifying the expansionist
                            urge
                            of vested
                            financial
                            and military
                  interests from another part of the world. 
                                  TOWARDS A LASTING PEACE ON THE SUBCONTINENT 
                                  Lasting
                    Peace usually turns out to be a chimera. Nevertheless, it
                    is the general
                                belief that the visits to India in April 2005
                    by the Chinese premier Wen Jiabao and President Musharraf
                    were an important step toward this end with the majority
                                of the writers opining that they were harbingers
                    of peace. What are the prospects of the recent agreements
                    resulting in long-term stability in the region? 
                 Beginning
                      with China the agreements were essentially re-iteration
                      of the framework agreed upon
                    during the visit of Prime Minister
                      Vajpayee a few years earlier.
                                  Even when (and there is a big If to it) the
                    boundary dispute is finally settled between China and India,
                    the latter
                      would be displaying extreme naiveté if
                                  it were to take Chinese assurances at face
                      value. For lasting peace between China and India, the following
                      conditions must obtain, absolutely and irreversibly: 
            - Demilitralisation
                      of Tibet followed by the demilitarization of the Himalayas
                      between the two
                        countries. At the very least there should be no offensive
                        military
            forces in the Tibet Autonomous Region. 
                 - Stoppage of transfer
                        of nuclear and missile technologies to Pakistan. 
                 - Hands off policy
                          in Bangladesh and Nepal.  
                 - No further attempts
                        to establish a military presence of any type in the Bay
                        of Bengal. 
                Right
                          from the time of China’s first intrusion into Tibet,
                          Indian leaders have been yielding ground to China – literally
                          and figuratively. First, on account of a hazy grasp of
                          realpolitic and, after the 1962 debacle, on account
                                                  of a perceived military inferiority,
                          more so after the break-up of the Soviet Union. Apparently,
                          their study of Chinese history did not familiarize them
                                                  sufficiently with the general thrust
                          of Chinese policies over the millennia
                                                  for the nations on the periphery
                          of the Middle Kingdom. By the 1950s China had attained
                          its objective by occupying Tibet. At the same time it was
                          facing
                                                  a difficult situation in Korea.
                          To ensure that India did not question its occupation of
                          Tibet it fell back on its time-tested strategy of yore.
                          It projected maximalist
                                                  demands - well beyond the limits
                          of its geo-strategic imperatives of the 1950s – by
                                      laying claim to Indian territories. 
                 This
                      stratagem was resorted to, to ensure that India’s
                            focus remained forever thereafter only on the boundary
                            between Tibet and India and on those portions of territory
                            disputed by China. Tibet,
                                                    thereby, was cleverly placed outside
                            the ambit of any territorial adjustments that, at some
                            later date, might have caused China considerable discomfort,
                                                    if pursued vigorously by India.
                            Had the Indian statesmen seen through China’s
                                                    strategy they could straightaway
                            have countered by at least questioning China’s
                                                    annexation of Tibet or its rapid
                            demographic swamping. It should be recalled that Chairman
                            Mao had given assurances to the Dalai Lama during the latter’s
                                                    visit to Beijing in the mid-1950s
                            that Tibetan autonomy would be fully respected.  
                 It
                      is pointless dwelling on the past, however. Having yielded
                              ground to
                                                      China on almost
                                                      every count, India has
                    to ensure that it never again
                                                      underestimates
                                                      Chinese capabilities, regardless
                                                      of the harmonizing of relations
                                                      that may
                                                      ensue in the coming
                                                      decades. It is the US presence
                                                      and India’s growing
                                                      economic strength, which
                                                      have brought about a change
                                                      in Chinese attitude towards
                                                      India.
                                                      It would be premature and
                                                      highly incautious to mistake
                                          it for a change of heart. 
                 Turning
                      to Pakistan it will be seen that Gen.
                                                        Musharraf’s credentials
                                                        for running Pakistan
                                                        may appear increasingly
                                                        attractive to the Western
                                                        world and China, more
                                                        recently, perhaps to
                                                        India as well. The General
                                                        was forced
                                                        to do a U – turn
                                                        after 9/11 with a gun
                                                        to his head. He capitulated.
                                                        Publicly he has been
                                                        making all the right
                                                        noises. These have been
                                                        music to US ears.
                                                        Even his liberal leanings
                                                        may flow from genuine
                                                        conviction. What is the
                                                        reality on the ground,
                                                        however? The Jihadi elements,
                                                        no matter how vociferously
                                                        denounced
                                                        by him in public proclamations
                                                        from time to time, are
                                                        flourishing as heretofore.
                                                        The madrasas – many
                                                        still spawning venom-spewing
                                                        pupils – continue
                                                        to mushroom. What is
                                                        more, the political reach
                                                        of the radical elements
                                                        has been extended beyond
                                                        their wildest expectations
                                                        under his dispensation
                                                        at the
                                                        cost of the mainstream
                                            political parties. 
                Now
                                                          they are unshakably
                    entrenched politically in several
                                              provinces. 
                 Evidently
                                                          there is a
                                                          contradiction working
                                                          here. How does
                                                          one explain the yawning
                                                          gap
                                                          between the perceptions
                                                          of the western elites
                                                          and the
                                                          equally
                                                          incontrovertible
                                                          signs of the strengthening
                                                          of the radical elements
                                                          in Pakistan
                                                          who
                                                          have during
                                                          the
                                                          same dispensation,
                                                          established a strong
                                              presence in Bangladesh. 
                 The
                      undeniable hiatus between the two perspectives
                                                            can
                                                            be put down
                                                            to General
                                                            Musharraf’s subtle revenge on the Americans for having forced him to
                                                            betray the very people who had given a leg up to his military career from the
                                                            time that he was chosen by General Zia-ul-Haq for a delicate mission. It seems
                                                            to be forgotten that it was Pervez Musharraf whom General Zia had selected
                                                            to deal with the restive Northern Areas. To impress General Zia, Brig. Musharraf
                                                            took a leaf out of a former Army Chief, Gen. Tikka Khan’s book. The latter
                                                            had earned the sobriquet ‘Butcher of Balochistan’. Musharraf’s
                                                            handling of the unrest in Gilgit - Baltistan was no less severe. The question
                                                            then arises “has Musharraf turned over a new leaf or is he playing along
                                                with the Americans to the extent that he can manage the differences”? 
                 This
                      point becomes clearer if a rhetorical
                                                              counter
                                                              question is
                                                              posed in the
                                                              same vein to his
                                                              American and
                                                              Western interlocutors.
                                                              To whit, “hypothetically,
                                                              if someone had obliged the famous Senator McCarthy with a gun to his head to
                                                              do a U-turn on communism would it be fair to assume that in case he had gone
                                                              along to save his skin he would have actually gone soft on communism”?
                                                              Nearer our time we can pose another question, this time to those who orchestrated
                                                              the invasion of Iraq, “were the neocons to be made to do a U – turn
                                                              in their policies, under duress, would it signify a final rejection of their
                                                              cherished beliefs”? Should the answer to these posers be in the negative,
                                                              Musharraf’s policies will become clearer – retrospectively
                                                  and prospectively. 
                 In
                      this regard, just a few days
                                                                earlier
                                                                the Editor
                                                                of
                                                                the Friday
                                                                Times, Najam
                                                                Sethi in
                                                                an interview
                    in Chennai (reproduced
                                                                in The
                                                                Hindu May 6,
                    2005) states, inter alia: “Al Qaeda, sectarian Islam, political Islam that seeks to
                                                                capture state power and jihadi Islam are also elements of the same paradigm”.
                                                                More ominously he adds, “ The fact that Al Qaeda and political Islam
                                                    are hovering in the region meant that they could lay their hands on these weapons”. 
                 General
                      Musharraf and the Military-ISI
                                                                  combine
                                                                  continue
                                                                  to sedulously
                                                                  nurture this
                                                                  constituency,
                                                                  notwithstanding
                                                                  the capture
                    of top Al
                                                                  Qaeda leaders
                                                                  every now and
                                                                  then. What
                    is more,
                                                                  in
                                                                  a devilishly
                                                                  clever subterfuge,
                                                                  they
                                                                  have provided
                                                                  them with a
                    politically legitimate window
                                                                  to democratically
                                                                  reach
                                                                  for the levers
                                                                  of power and,
                                                                  by extension,
                                                                  at some
                                                                  stage, with
                                                                  their sympathizers
                                                                  in
                                                                  the military,
                                                                  total control
                                                                  over the nuclear
                                                                  assets of Pakistan.
                                                                  The political
                                                                  door
                                                                  for them might
                                                                  have been
                                                                  opened just
                                                                  a crack. They
                                                                  have been quick
                                                                  to
                                                                  firmly
                                                                  wedge their
                    foot into
                                                                  the crack.
                    The door cannot be
                                                                  shut on
                                                                  them now -
                                                                  by Pervez
                                                                  Musharraf
                                                                  or his successors.
                                                                  All this while
                                                                  the US was
                                                                  physically
                    present in Pakistan                                     
                     with their                                                      hand
                                                                  on the General’s
                                                      shoulder. 
                 Both
                                                                    in the
                                                                    case of China
                                                                    and
                                                                    Pakistan
                    these are
                                                                    the hard
                    realities that
                                                                    must temper
                                                                    the enthusiasm
                                                                    generated
                                                                    by the media
                                                                    in relation
                                                                    to the
                                                                    two visits
                                                                    that were
                    dubbed as
                                                                    the harbingers
                                                                    to lasting
                                                                    peace. The
                                                                    divide
                                                                    between India
                                                                    and
                                                                    Pakistan
                    is more fundamental
                                                                    than
                                                                    imagined.
                    The very basis
                                                                    of
                                                                    their
                                                                    separation
                                                                    militates
                    against an easy return
                                                                    to normalcy.
                                                                    Whatever
                                                                    the outcome
                                                                    of negotiations
                                                                    it has
                                                                    to be kept
                                                                    in
                                                                    mind that
                                                                    the two strongest
                                                                    entities
                    in Pakistan
                                                                    today
                                                                    remain the
                                                                    military
                    and the mullahs,
                                                                    both viscerally
                                                                    opposed to
                                                                    the
                                                                    very thought
                                                                    of a prosperous
                                                                    India. Therefore,
                                                                    till the
                                                                    time that
                    these entities suffer
                                                                    significant
                    diminishment
                                                                    in their
                    power and
                                                                    are replaced
                                                                    by
                                                                    a deeply
                    entrenched democratic
                                                                    dispensation,
                                                                    fully committed
                                                                    to the rule
                                                                    of law,
                                                                    freedom of
                                                                    the press,
                                                                    abolition
                                                                    of
                                                                    medieval
                    religious laws, independence
                                                                    of the judiciary
                                                                    and the freedom
                                                                    for all religions
                                                                    to co-exist
                                                                    as equals
                    in Pakistan,
                                                                    lasting peace
                                                                    is
                                                                    not
                                                                    likely to
                    come about any time
                                                                    soon.
                                                                    At best it
                                                                    would be
                    an uneasy
                                                                    accommodation.  
                  The case
                                                                    of China
                                                                    is somewhat
                                                                    different.
                                                                    A realization
                                                                    may be dawning
                                                                    on Indian
                                                                    and
                                                                    Chinese leaders
                                                                    as well
                                                                    as
                                                                    the people
                                                                    of these
                                                                    two countries
                                                                    that
                                                                    genuine peace
                                                                    between
                                                                    China and
                                                                    India,
                                                                    should it
                                                                    come about,
                                                                    could
                                                                    make a monumental
                                                                    difference
                                                                    to
                                                                    peace in
                                                                    Asia. It
                                                                    could
                                                                    change the
                                                                    very dynamic
                                                                    of world
                                                                    peace. More
                                                                    importantly,
                                                                    it would
                                                                    allow the
                                                                    peoples
                                                                    of these
                                                                    two
                                                                    countries
                                                                    to re-discover
                                                                    the
                                                                    phenomenal
                                                                    goodwill
                                                                    that
                                                                    marked their
                                                                    relations
                                                                    for the best
                                                                    part
                                                                    of two
                                                                    millennia.
                                                                    The
                                                                    gains accruing
                                                                    there from would
                                                                    go well beyond
                                                                    the
                                                                    ushering
                                                                    of peace
                                                                    and prosperity
                                                                    for nearly
                                                                    40 per cent
                                                                    of humanity
                                                                    in the
                                                        21st century. 
                 The
                      concluding remark
                    of this presentation
                                                                      coming
                                                                      at the
                    mid-point of the
                                                                      first decade
                                                                      of the
                    21st century is
                                                                      by
                                                                      way of
                    an item
                                                                      that appeared
                                                                      in
                                                                      a little
                                                                      known newssheet,
                                                                      which encompasses
                                                                      the
                                                                      very
                                                                      real concerns
                                                                      of a large
                                                                      portion
                                                                      of
                                                                      humanity
                                                                      for
                                                                      whom geopolitics
                                                                      and
                                                                      geo-strategy
                                                                      are obfuscating
                                                                      terms
                                                                      used
                                                                      by leaders
                                                                      to camouflage
                                                                      their
                                                                      inability
                                                                      to
                                                                      achieve
                                                                      equitable
                                                                      growth
                    and harmony
                                                                      within
                    their countries
                                                          and without. 
                “
                  It has been the biggest ever travesty of human development
                      that today we have more poor people on earth than before.
                      On the face of all the glitter and glamour
                                                                        that
                      goes for human progress poverty hangs as a shameful spectre.
                      With all the economic development achieved so far the gap
                      between the rich and poor
                                                                        has been
                      increasingly growing over the years and the poor are becoming
                      poorer day by day. The violation of nature has cost us
                      dear. For all the proud achievements
                                                                        of our
                      materialistic age, we are inhaling poisonous air, drinking
                      polluted water, eating pesticide-infested food and absorbing
                      all sorts of harmful chemicals
                                                                        or other
                      synthetic products”.
                                                                        (Purity,
                                                                        April
                                                            2005). 
                 People
                                                                          living
                                                                          in
                    overcrowded metropolitan
                                                                          cities
                                                                          are
                    aware of these
                                                                          ill-effects
                                                                          resulting
                                                                          in
                                                                          the
                    early onset
                                                                          of
                    Cancer, Diabetes
                                                                          and
                    other life-threatening
                                                                          diseases
                                                                          in
                                                                          growing
                                                                          numbers
                                                                          of
                                                                          young
                                                                          people.
                                                                          The
                                                                          frenetic
                                                                          pace
                                                                          of
                                                                          unplanned,
                                                                          uncoordinated
                                                                          over-development
                                                                          has
                    already made
                                                                          large
                                                                          swaths
                                                                          of
                                                                          territory
                                                                          in
                    China, Thailand,
                                                                          Russia
                                                                          and
                    so many
                                                                          other
                                                                          places
                                                                          practically
                                                                          uninhabitable.
                                                                          National
                                                                          elites
                                                                          are
                                                                          expending
                                                                          too
                                                                          much
                                                                          of
                    their energies
                                                                          and
                    time on
                                                                          geopolitical
                                                                          and
                    geo-strategic
                                                                          considerations.
                                                                          If
                    the planet
                                                                          has
                                                                          to
                                                                          remain
                                                                          habitable
                                                                          for
                    the coming
                                                                          generations
                                                                          it
                    is necessary
                                                                          to
                                                                          re-focus
                                                                          on
                    issues related
                                                                          to
                                                                          geo-economy
                                                                          for
                    amelioration of the
                                                                          human
                                                                          condition
                                                                          for
                    the vast
                                                                          majority
                                                                          of
                                                                          human
                                                                          beings.
                                                                          Instead
                                                                          of
                    pushing for
                                                                          their
                                                                          place
                                                                          in
                    an expanded
                                                                          Security
                                                                          Council
                                                                          these
                                                                          countries
                                                                          should
                                                                          press
                                                                          for
                    reform of
                                                                          the
                    global monetary
                                                                          and
                                                                          financial
                                                                          systems
                                                                          and
                    the Bretton
                                                                          Woods
                                                                          instrumentalities.
                                                                          There
                                                                          is
                                                                          a crying
                                                                          need
                                                                          for
                                                                          reducing
                                                                          the
                    indebtedness of developing
                                                                          countries
                                                                          groaning
                                                                          under
                                                                          the
                                                                          weight
                                                                          of
                                                                          payouts
                                                                          for
                    servicing national
                                                                          debts.
                                                                          As
                    a first
                                                                          step
                                                                          a global
                                                                          conclave
                                                                          on
                    the lines
                                                                          of
                                                                          the
                    Afro-Asian summit
                                                                          held
                                                                          recently
                                                                          in
                                                                          Jakarta
                                                                          should
                                                                          jointly
                                                                          work
                                                                          on
                    proposals whereby
                                                                          a
                                                                          nation’s
                                                                          debt
                                                                          would
                                                                          automatically
                                                                          start
                                                                          declining
                                                                          by
                                                                          a given
                                                                          percentage
                                                                          annually
                                                                          after
                                                                          the
                                                                          principal
                                                                          amount
                                                                          of
                                                                          the
                                                                          debt
                                                                          has
                                                                          been
                                                                          serviced
                                                                          twice
                                                                          or
                                                                          a maximum
                                                                          of
                                                                          thrice
                                                                          over
                                                                          through
                                                                          interest
                                                                          payments.
                                                                          Similarly,
                                                                          currency
                                                                          fluctuations
                                                                          should
                                                                          not
                                                                          be
                                                                          permitted
                                                                          to
                                                                          adversely – and
                                                                          artificially
                                                                          - affect
                                                                          the
                                                                          indebtedness
                                                                          of
                                                                          nations.
                                                                          Under
                                                                          no
                                                                          circumstances
                                                                          should
                                                                          the
                                                                          burden
                                                                          be
                                                                          allowed
            to accumulate oppressively and indefinitely. 
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