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    South Asia
     Apr 20, 2007
All options open to India
By Zorawar Daulet Singh

The "post-post-Cold War" era has begun. In fact, it began in early 2006, by which time it was clear that the hyperpower of the 1990s, United States, had been checked in its tracks in one of the most vital theaters of our times, the Middle East.

The US debacle in Iraq, however, coincided with equally dramatic developments in Eurasia. The unprecedented resurgence of Russia, shortly after it was written off, has infused the international system with a balance of power that can only



suggest the multipolar order has arrived. The geopolitical arbitration by Russia on the Iran issue has been the watershed event.

As New Delhi gradually adjusts to an altered geopolitical environment, vestiges of an earlier era of foreign policy ineluctably continue to influence the strategic discourse. The discord and collaboration among the Great Powers over the past year can easily be misinterpreted and produce narrow policy choices. Thus, it is imperative to discern the pertinent variables in today's global politics before debating specific tactics.

A world restored
To be sure, tectonic shifts in the geoeconomic sphere over the past decade have underpinned the structural change that is visible today. At its core lies the well-documented economic renaissance of the Asian region in general and the Chinese economy in particular, a process that entailed a massive reallocation of productive capacities in favor of these economies that in turn supply the US and European Union primarily via China. In mid-2006, China surpassed the US as the world's second-largest exporter (third-largest importer).

The current phase of globalization must be contrasted with previous episodes. Unlike earlier eras where industrial structures were vertically integrated and thus nationally concentrated, today's system, with the exception of core strategic sectors, is characterized by horizontally integrated transnational production value-chains. This stems from technological innovations whereby physical and virtual connectivity has risen steeply. But in this "flattening" trend also lie the roots of systemic change - the relative ease and frequency of transfer of manufacturing industries from the US and the Organization for Economic Cooperation and Development to Asia, with China at the epicenter. Two significant trends may be noted. First, the Western monopoly over international capital flows has been broken. This is underscored by the fact that Asian economies account for the bulk of global foreign exchange reserves, a manifestation of the large trade surpluses that these economies run with the US and EU.

There are already indications that a portion of such reserves will be an important source of future investment flows. Second, the global energy order has witnessed seminal reconfigurations. The national oil companies of the Organization of Petroleum Exporting Countries and Russia, today, account for about 85% of hydrocarbon reserves. The cumulative surplus (2002-2007) of oil exporters is estimated at US$1.7 trillion. The structural effects of the concentration of supply and demand patterns suggest that high hydrocarbon prices may not be a temporary phenomenon.

Besides the obvious consequence that Western oil majors no longer dominate energy security issues, is the geoeconomic implication of the petrodollar (or petroeuro) economies now deploy a high portion of their surpluses toward internal rejuvenation, consumption and foreign direct investment (FDI) in Asia and Europe (by Russia), whereas previously revenues were recycled primarily to the US.

Gulf oil exporters, the seventh-largest "emerging market", are now actively promoting two-way linkages with Asia, supplying energy and redeploying their financial wealth in return for technology, inexpensive Chinese products, infrastructure and military hardware.

Suffice it to say, such developments have significantly reduced the leverage of the United States and made its economic instrument ineffective at best or self-defeating at worst, thus leaving few alternatives to multilateral solutions.

Military power is, undeniably, the ultima ratio in international politics, and the aforementioned geoeconomic patterns are insufficient to make the world multipolar. The United States continues to be the largest defense spender by far and has been relentless in its drive for innovations in high technology.

Additionally, the partial autonomy of action of the US's alliance partners - the EU through the North Atlantic Treaty Organization and Japan through the 1952 security treaty - in military affairs ensures that it has a favorable alignment externally to complement its internal military capabilities. Indeed, the US has sought to link these disparate bilateral military alliances into an integrated security system.

If this were all, the system would still be unipolar. However, the addition of Russia, a state geographically placed to influence multiple theaters on the geopolitical chessboard, as an autonomous actor in foreign affairs, has altered the relative power of US-led alliances. The sophistication of Russia's military-industrial complex, a legacy of over 60 years of research and development, and the fact that it is the only Great Power that possesses a credible nuclear deterrent vis-a-vis the US, ensures that the current distribution of military power, albeit asymmetric, is enough to ensure that unrestrained US action is no longer possible. For such is the logic of nuclear weapons.

Indeed, American attempts at nuclear primacy (ie missile defense) are predicated on circumventing this logic, first explicitly demonstrated by US's unilateral exit from the Anti-Ballistic Missiles Treaty in 2001. The inadvertent result, however, is that the US-Russia nuclear status has been perpetuated and Russian innovations in the ballistic missile sphere will preserve its leverage in global geopolitics by its ability to offer its nuclear umbrella.

China, though a formidable military power, has yet to indigenously develop conventional and strategic capabilities to match the US-Russia duopoly. Nonetheless, China's military doctrine that lays emphasis on asymmetric acquisitions and strategies has ensured a balance of power in the theater most vital to it - the Strait of Taiwan.

Patterns of interaction
India, it can be stated unequivocally, today faces its most propitious environment, after almost 15 years of "unipolarity". Given a range of options hitherto unavailable, it would be unfortunate and extremely costly if New Delhi's external conduct was unable to exploit the present diplomatic revolution.

Some commentary, however, continues to be predicated on the operations of a system that no longer prevails. Such confusion partially stems from the complexities of current interactions, which if interpreted in narrow terms may indeed lead to fallacious assumptions and consequently influence the conduct of Indian foreign policy.

An example may be instructive. Strategic coordination between Russia and China as it manifested itself in the Iran issue, while not an irrelevant development, led to predictions of new blocs emerging to contain the US, with the corollary that India would need to choose between the US and its allies or Russia-China. The emergence of multilateral "blocs" such as the Russia-China-India trilateral format and the Shanghai Cooperation Organization (SCO) have lent currency to such views.

This is a false choice. While Russia and China have enunciated their desire to coordinate their actions on several issues, first expressed in their strategic partnership agreement of 2001, and have done so subsequently, they have simultaneously sought to deepen their interaction with the actors they seek to balance.

This stems from the geoeconomic patterns that were alluded to earlier. Today, China is a $1 trillion exporter (37% of gross domestic product) that is heavily immersed into the system, and in 2008 will become the world's biggest exporter. The economic realism underlying Russia's energy strategy in particular and the expansion of its natural resource complex in general implies it, too, is seeking to integrate into global economic processes. In sum, neither state is seeking to cultivate exclusive partnerships.

Multilateral endeavors, manifested in the trilateral format and the SCO, are but pragmatic attempts at collective diplomacy to manage regional interaction in a common geopolitical space and perhaps more importantly to exploit geoeconomic opportunities: given the dearth of effective pan-Asian institutions, hardly an unwelcome development.

To appreciate this phenomenon it is vital to distinguish today's multipolar system with its bipolar predecessor. One of the most important variables that differentiates the current plural order with the bipolar era is that in the latter, each bloc was almost entirely self-sufficient, with minimal economic interdependence.

Indeed, economic interdependence between the superpower blocs was so peripheral that it led Kenneth Waltz, the dean of contemporary realist thought, to dismiss the trend altogether. Of course, military interdependence between the US and Soviet Union was vital, and from that stemmed the strategic stability witnessed through the Cold War.

Today, however, the erstwhile "blocs" are much more engaged at an economic and thus political level. This is not to suggest that geoeconomic competition has ceased and that states will pursue an international division of labor over relative national gains. For that would be suicidal. But certainly the zero-sum premise has been tempered where opportunities for mutual benefit exist. US-China relations epitomize this phenomenon: the mutual dependence of the US economy whereby it is the largest importer from China, which in turn finances a major portion of the huge US current-account deficit. Note that the relationship has transformed from the asymmetry that existed in the 1990s when China was highly dependent on American markets and investment, toward the "common vulnerability" that currently prevails.

Energy linkages between Russia-EU - originally with and via Germany, but now extended to an array of direct bilateral gas deals between Gazprom and EU members, ranging across Ukraine to Portugal - is another example of mutual dependence. This is since supply security for the EU is as vital as the demand security for Russian hydrocarbons, especially gas, where buyers-sellers are entwined by rigid delivery infrastructure (ie pipelines).

The implication is that traditional alliance-based relationships are being affected and states are adopting a relatively multidimensional foreign policy. Of course, states that are already integrated within US-led alliances are finding it relatively harder to chart an autonomous course, given their overwhelming military dependence on the US - especially the EU and Japan. Yet, even for such states or groupings there is unlikely to be an inevitable consensus with the alliance leader. Russian Foreign Minister Sergei Lavrov has expressed it succinctly: "Any attempts to restore the bygone trans-Atlantic unity as an isolated aspect of international life can have only partial success."

For New Delhi, the implications of the current patterns of interaction must be clear. Bluntly put, neither Beijing nor Washington will sacrifice their bilateral relationship over India, despite US efforts to cultivate India as a potential alliance partner. This, arguably, has more to do with enhancing US leverage on India rather than solely containing China. Similarly, in China-Japan relations, the bilateral economic interaction is too high for Japan to seek exclusive relations with India. Thus, exploiting the interstices in today's balance of power requires far more sophistication than in the bipolar world, where neither bloc had economic leverage on the other.

Even Russia, which is economically the most self-sufficient actor in the system, an autonomy that stems from its possession of every major natural resource in its frontiers, would be unwilling to forgo its privileged nuclear duopoly with the US. And given the dual-use of the atom, it would thus be unwilling to unilaterally overturn the nuclear Non-Proliferation Treaty (NPT) order, as Iran has discovered. However, considering the US has already accepted India as a unique case in the NPT, there is no good reason to assume that Russia will not follow suit.

Finally, it can be opined that the global architecture of international relations, constructed in the aftermath of World War II, and perhaps illegitimate to some, still retains a measure of durability.

Two reasons can be put forward: first, the US, Russia and China as joint managers of the international system are, in the final analysis, status-quo powers that can advance their foreign-policy objectives (including balancing the US or each other) within prevailing institutional arrangements. This despite the redistribution of comprehensive power in favor of the latter two.

A balanced US would prefer bargaining in the United Nations Security Council to the alternative - "multipolar chaos", a system without rules. Similarly, the incentive for Russia and China to rewrite rules would be limited. What is likely to evolve is that the US unilateralism of the 1990s will be replaced by multilateral bargaining on major international issues.

Second, since the advent of the nuclear age, diplomacy among the Great Powers has occurred against the backdrop of the unprecedented destructive power of contemporary military technology, which is perhaps the strongest argument for peaceful systemic change going forward. Suffice it to say, the overlapping bilateral linkages that involve all the major centers of power imply that a "friend" or "foe" choice for India can no longer be pursued without high costs. Rather, India must adopt a multi-vector philosophy - a multi-dimensional principle will facilitate greater maneuvering space within the dynamic web of international alignments, and enable New Delhi to wholly exploit the geoeconomic and geopolitical options that may become available at any given moment.

One can classify such a foreign policy as "neutral", "independent", "autonomous" or even a contemporary "active non-alignment" purged of its ideological baggage.

Zorawar Daulet Singh, who holds a master's degree in international relations from the School of Advanced International Studies, Johns Hopkins University, is an international relations and strategic-affairs analyst based in New Delhi zorawar.dauletsingh@gmail.com

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India as a nuclear pariah - or partner (Apr 13, '07)

India straddles Middle East divide (Mar 31, '07)

 
 



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