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GROUP REPORTS

GROUP REPORTS


The daily group discussions by syndicates culminated in three group presentations on the last day of the workshop. Over the days of the workshop, each group deliberated on one of the following topics: 1. Regional and International Implications of the Indo-US Nuclear Deal, 2. Global War on Terror, 3. Expansion of SAARC.

Following are the group reports that comprise the issues raised during the course of the group discussions, and elaborate on the salient points made during the presentations:


                                                                                                            
Report of Group I

                                                                  Regional and International Implications of US-India Nuclear Deal

Members of the Group:
Shantanu Chakrabarti
Gao Qiqi
Ghulam Murtaza
Reshmi Kazi
Swapna Kona
Li Li
Peng Xiaojiang
Cyma Riaz
Navjot Bir Singh
Xie Daigang
Xue Chen

This report has been drafted on behalf of the group by Navjot Bir Singh.

I) A Note on Group Dynamics:

Comprising of scholars from India, Pakistan and China; three states with a history of differing positions on various issues; the group meetings did witness heated debates while discussing the group’s approach to the topic. However, as the interactions progressed it became easier to shed internalized state positions and to look at the issue more dispassionately.

Since the theme of the workshop was “Defence, Technology and Cooperative Security in South Asia”, we interpreted it as reflecting a neo-realist perspective. Therefore we have used neo-realism to inform our understanding of the issue at hand. In particular, insights from two important scholars helped us set our parameters. While Robert Jervis’ work on concept of security dilemma was used to see potential implications of the deal for other relevant state actors in the region, we borrowed Barry Buzan’s ideas to define what we meant by the region. As Buzan has argued that earlier regional security complexes such as South Asia have dissolved into a larger Asian Security Complex after end of Cold War, we have tried to analyze implications of the deal in terms of the Asian region as a whole rather than focusing merely on South Asia.

Finally, to analyze what the deal implies for the international system we decided to look at its impact on existing non-proliferation regimes. After some discussion it was decided that we would focus on Non-Proliferation Treaty (NPT) and in particular on its important associated institutions: the Nuclear Suppliers’ Group (NSG) and the International Atomic Energy Agency (IAEA).

II) What is the United States-India Nuclear Deal?

The US-India Nuclear Deal was signed on 18 July 2005 and follows up on the Next Steps in Strategic Partnership document of 2004 and the 10 year US-India Defence Framework Agreement of June 2005. This is important as it connotes the deal not merely marking civilian nuclear energy cooperation but also implying a larger strategic bargain between the sole super power (United States) keen on maintaining this status quo at the international level and a regional power (India) seeking to secure its status within South Asia while also trying to achieve what it believes is its long aspired rightful claim to being recognized as a great power in the near future.

However, the deal will only become effective after two sets of negotiations to determine its final terms are successfully concluded. The first set of negotiations are the 123 negotiations between India and US to synchronize terms of the two relevant drafts (already passed by the US Congress and the Indian Parliament) that lay out the contours of cooperation between the two states and spell out respective commitments and obligations. The 123 negotiations would in turn impinge upon parallel negotiations proceeding between India and the IAEA to finalize a safeguards agreement to govern India’s nuclear programme and also upon US efforts to secure support from individual member countries to exempt India from provisions of NSG guidelines.

Prima facie the deal is based on ‘a give and take’ arrangement where India ‘reciprocally agrees’ to accept certain responsibilities in exchange for civilian nuclear technology. However, when viewed in terms of the larger context in which it emerged, the civil nuclear energy cooperation agreement actually represents a step towards greater benefits for both signatory parties. From the perspective of India, the deal:

• Provides for US paving the way for a civilian nuclear exception for India in the NPT framework. It thereby enhances India’s energy security by ensuring access to uninterrupted supply of uranium to fuel its civilian nuclear energy reactors as well as to acquiring technical information and international finance to expand its civilian nuclear energy programme. Nuclear energy is seen as being both more cost-efficient as well as cleaner than the energy available from depleting hydrocarbon reserves
• Despite bringing India into the NPT framework provides it with a workaround to deal with the non-proliferation regime and still advance its interests in the international system. Thus, while India does not have to join the NPT or accept full scope safeguards it does get de facto recognition as a responsible nuclear weapon state with safeguards on its civilian facilities. This will be a critical exception as Indian political elite believes that the coveted great power status in the form of permanent membership of United Nations Security Council flows from nuclear weapons and the legal sanctity provided to select nuclear club by NPT.
• Also makes India a part of elite club developing the International Thermonuclear Experimental Reactor (ITER); a futuristic source of virtually unlimited energy
• Brings in its wake potential collateral benefits such as (a) increased collaboration in combating terrorism as well as its state sponsors (b) military joint training and infrastructure development (c) increased opportunities for economic development through greater investment and (d) significant improvement in diplomatic engagement in international fora.

Having noted benefits accruing to India, it is important to locate US stake in the deal too. For the US the deal:

• Facilitates a close strategic relationship with India that is viewed as being vital to its national interests in light of the emerging global balance of power where the primary US strategic aim is to contain growing challenge from China and to ensure its primacy in an economically and strategically indispensable yet volatile West Asia and Central Asia
• Promises more effective cooperation in US led global war on terrorism and its state sponsors. This would have particular salience in Iran and Afghanistan where India could be a great asset with its proximity
• Makes sound economic sense as it provides US nuclear energy firms lucrative benefits from selling of civilian nuclear power technology to India. It creates a potential US partnership in an Indian economy that is growing at a rate of over 8 per cent per annum
• Salvages some prestige in international institutions after diplomatic failures such as in US withdrawal from climate change negotiations and the Anti-Ballistic Missiles Treaty and in preventing undermining of nuclear non-proliferation order by non-signatories such as Pakistan and India as well as by signatories such as North Korea and possibly Iran. In such a backdrop the deal promises a limited success by bringing a hitherto recalcitrant India partly into the otherwise crumbling non-proliferation framework. It is an important step because existing non-proliferation regime has failed either to force India to give up its nuclear weapons or to make it accept international inspections and restrictions on its nuclear facilities. The bilateral deal thus recognizes that it is far better for the non-proliferation community if India works with it rather than against it.

III) Regional Implications:

The US-India Nuclear Deal brings benefits for both parties. However, absence of measures in it to restrain India from continuing to produce nuclear weapons constitutes a loophole that along with strategic re-alignments induced by the new partnership portends major implications for the Asian region.

By ensuring uninterrupted supply of imported nuclear fuel for India’s civilian facilities the deal frees up all of its domestic sources of fuel to be solely dedicated to making many more nuclear weapons than would otherwise have been possible. This is not a mere case of oversight when one takes into consideration the larger US strategic goals informing its alignment with India and efforts at containment of China. The deal in its present form with US objective of making India a global or at least a regional military power to achieve its own perceived interests could force major stakeholders to re-evaluate their security interests thus leading to transformation of regional alliance structures.

Apart from not restraining India’s nuclear weapons programme based on its domestic resources of fissile material the legitimate transfers of dual use technology and nuclear fuel for civilian facilities also accentuates anxieties for China and Pakistan. Their anxieties arise from the fact that these would be vulnerable to being diverted for military purposes as was the case earlier leading up to India’s first ’peaceful’ nuclear explosion in 1974.

Pakistan has always had an India specific linear threat perception that identifies security and national interest as response to the perceived existential threat from its large eastern neighbour. To offset this threat it has invested in support of a superpower, mostly the United States. That is why it resents the deal as it aims at making India a global military power by providing it de facto acceptance as a nuclear weapons state while according a symbolic status of a Major Non NATO Ally to Pakistan. Pakistan regards the deal as ‘discriminatory’ and ‘unacceptable’.

Since Pakistan wants equal treatment it will go elsewhere for nuclear support, with China most likely to provide this assistance. China has already assisted Pakistan’s civilian nuclear programme in the past and was named by Central Investigative Agency as ‘principal supplier’ of Pakistani nuclear weapons programme. If Pakistan’s threat perception is compounded by the final shape of the deal it could exercise other options including a possible strategic alliance with other great powers such as China and Russia. Its enthusiasm for the Shanghai Cooperation Organization initiative points to such a possibility. Another grim option could be for Pakistan to seek parity with India not only through expanded nuclear ties with China, but also by a more aggressive pursuit of nuclear technology from the global nuclear bazaar.

China has in its pursuit for economic power sought to improve its relations with all its neighbours including India. Despite growing economic relations and on going diplomatic initiative to resolve the boundary dispute, it could also be drawn into a regional arms race. China’s rise is a critical factor prompting US to seek the deal as it sees India as the best bet to balance China’s improved capabilities. If the deal alters the nuclear balance between both neighbours China could go beyond supporting Pakistan, by also choosing to fortify its own nuclear arsenal.

These fears of the deal resulting in qualitative and quantitative improvement in India’s nuclear arsenal could weaken prevailing deterrence in the region and trigger nuclear arms competition involving Pakistan, India and China, thus destabilizing the entire region. Changes in their respective nuclear postures and arsenals will have impact beyond these three states as a vicious spiral of security-insecurity in the form of security dilemma could arise and engulf states from East Asia such as Japan, Taiwan, North Korea and South Korea and extend up to West Asia where Iran and Israel as it is have precarious thresholds for exercising possible nuclear options. In any such worst case scenario, which cannot be ruled out, Russia could inevitably also be drawn in with its shared boundaries and vital strategic interests in these regions.

Any analysis of regional implications must also take into consideration the economic dimension since it is one of the driving forces behind regional cooperation and integration.

In this context Iran is an important indicator of trends. India and Iran share many strategic interests and have sought to give form to their relationship by cooperating on the three state Iran-Pakistan-India Oil Pipeline project. It ensures economic benefits for all three parties and in particular promises India access to energy supplies that are both critical in short term (given that nuclear energy accounts for barely 3 per cent of its total energy requirements) and more cost efficient than any other form available including nuclear energy. In fact it has been argued by dissenting sections of Indian strategic community that meeting energy needs by importing nuclear reactors will only lead to energy insecurity and exorbitant costs.

However, the deal has already cast its shadow over India’s relations with Iran as India’s vote for US motion against Iran in the IAEA was a clear fallout of the deal. It is evident that successful realization and operation of the deal would be contingent upon continued Indian support for sanctioning and containing Iran and that in turn has meant additional complications for the already stuck Iran-Pakistan-India pipeline.

The deal has also slowed the process of regional economic integration of South Asia in form of the South Asian Free Trade Area (SAFTA) agreement reached by the South Asian Association for Regional Cooperation member states on 6 January 2004.

To become operational, SAFTA requires ratification of the agreement by the seven governments. Also, it requires India and Pakistan along with Sri Lanka to bring their duties down to 20 per cent in first phase of the two year period ending in 2007. The SAFTA has been plagued by problems after the US-India Nuclear Deal as Pakistan is already slowing its feet. For instance, its October 2006 move to include an additional 302 items in its positive list for trade with India, in clear violation of SAFTA pact, can be seen as a ploy to continue to deny the Most Favoured Nation status for India.

IV) International Implications-NPT Institutional Framework:

Any progress on actualization of the US-India Nuclear Deal necessitates changes in IAEA and NSG guidelines. These are the two vital institutions that govern the global non-proliferation order.

As part of the deal, India must negotiate a safeguards agreement with IAEA that would cover its entire civilian nuclear energy programme. It would also have to sign an Additional Protocol that allows more intrusive IAEA inspections on its civilian facilities. However, India is hesitant about reaching an agreement with the IAEA that places safeguards in perpetuity unless it is guaranteed access to nuclear fuel in perpetuity.

In this context, India’s negotiations with IAEA to implement the safeguards agreement for its civilian facilities are going nowhere as IAEA is a regulatory, and not a policy making, authority. It can, as such, provide no assurances of uninterrupted fuel supply in perpetuity. The only way out of this impasse is for US to prevail on IAEA to make an exception for India in regards to safeguards being imposed conditionally.

The NSG is a group of 45 states that was established as a reaction to the Indian test of 1974. It seeks to regulate nuclear trade through export controls that preclude possibility of any future diversion of nuclear technology provided to a state for peaceful purposes to serve military needs. Further, NSG guidelines explicitly limit nuclear trade to members of either the NSG or the NPT.

This excludes possibility of any nuclear cooperation between India and US or any other nuclear supplier for as long as the NSG does not amend its rules or makes India specific exceptions through a unanimous decision. Towards this end, the US has already started approaching other NSG members to make such an exception without abandoning NSG consensus rules or the full scope safeguards condition of supply on all nuclear trade that can be of dual use.

While member states such as the UK, France Russia and Canada have been receptive to the initiative the view of hardliners like Sweden, Denmark and Norway as well as of China remains uncertain. The US efforts to convince NSG for an Indian exception is particularly difficult when US is simultaneously trying to prevent Iran and North Korea, both NPT signatories, from gaining access to nuclear fuel and technology.

At a geo-political level, by asking for India specific exceptions in IAEA and NSG, the US has adapted its anti-proliferation stance to remove a major obstacle to strong and reliable bilateral strategic relations with India. However, the deal is likely to weaken NPT at a time when there appears to be a renewed interest in nuclear weapons programmes in several states. And this is the most important implication of the deal for international security.

The basic spirit of NPT regime is enshrined in a grand bargain enshrined in Article 1 of the treaty whereby the five great powers keep their nuclear weapons to themselves and provide other states civilian nuclear technology in exchange for their refusal to produce nuclear weapons.

The deal undermines the NPT framework in two important ways. First, by seeking exceptions for India into the NPT the US creates a dangerous precedent and adapts its own anti-proliferation stance. Second, the deal represents double standards as it provides dual use nuclear technology to India but does not subject it to requirements of disarmament that NPT imposes upon other states.

As such the deal clearly undermines the present set of international nuclear rules and the NPT framework. However, it can be argued that the NPT was any ways crumbling and the deal actually marks a concrete and practical step towards universal application of IAEA and NSG safeguards.

V) Conclusion:

The US-India Nuclear Deal is still a work in progress and its implications for regional and international security will only be clear after the US Congress, Indian Parliament and the NSG and IAEA whet it. It will be further dependent on the direction of the on going India-Pakistan peace process and growing Sino-Indian relations.

What is still clear is that at a regional level it sets the tone for strategic re-alignment while at the international level it tries to incorporate India into the non-proliferation order through exceptions. Whether it actually resuscitates or damages the NPT framework will depend on its final shape. In essence, US has prioritized its interests in regional diplomacy over the NPT regime, a move that suits Indian interests too.





                                                                                                    
    Report of Group II

                                                                           Global War on Terror: South Asian Dimension


Members of the Group:
Syeda Nazoora Ali
Ajaya Kumar Das
Siddhartha Dave
Dilip Gogoi
Zafar Habib
Sheikh Humayun
Sankhya Krishnan
Vinod Kumar
Li Jiejun
Sitara Noor
Zhang Lijun

This report has been drafted on behalf of the group by Sankhya Krishnan.

I Introduction

The Global War on Terror (GWOT) launched in October 2001 has had a visibly profound impact on the states of South Asia—on Pakistan most directly and physically, of course, but in one way or another on the others as well. However, its impact on these states has been in certain key respects less traumatic—less politically and socially destabilizing, in other words—than in the case of countries in some other regions. This is in part because South Asia, so far at least, has not been a primary target in the war: it housed none of the so-called “rogue” states, none of the notorious “axis of evil.”

One school of thought believes that like the Cold War, the war against terrorism will be a very long struggle in which ideological, political, and socioeconomic campaigns will be as important as military campaigns. The spectre of transnational terrorism has risen from being a peripheral issue in the 1980s to one of the foremost security challenges facing the South Asian region collectively. Terrorism has ceased to be a domestic phenomenon, where a few disgruntled elements committed acts of violence that were primarily aimed at gaining publicity and showing the state in bad light. The aphorism that “terrorists want a lot of publicity and not a lot of people dead” exemplified the typical operating patterns of the past. Terrorist groups avoided targeting patterns that would earn them the hostility of the populace, and indeed did everything to ensure that the cause and objectives they espoused had a degree of legitimacy and sympathy among them.

By and large, terrorist groups had clear political ends, and operated within well-known and well-defined patterns. Terrorism thus was largely committed to serve political ends and evolved as a separate activity of violence distinct from war or conflict. Terrorism as we see it now has a specific organizational structure with extraordinary destructive capabilities and the readiness to sacrifice lives. The end of the Cold War saw the emergence of non-state actors, inflicting deadly damage to the civilian populace on a large scale. Although non-state actors like terrorist groups are weaker than the states they fight against, they have mastered the art of asymmetric warfare.

A trend that needs to be reflected upon is that of increasing linkages of regional terrorism with international terrorist outfits exemplified by the appearance of large numbers of foreign terrorists. What is making matters worse is that today the terrorists are not only operating at a more lethal level, causing far more indiscriminate damage and casualties, but are also organised on more structured lines, with transnational leverages in terms of sophisticated weapons, communication technologies and above all funding. In fact some refer to terrorist outfits as multinational corporations that have their operational bases all over the world with terrorist leaders acting as the CEOs of these corporations.

The GWOT has many theatres of operation including Southeast Asia, West Asia, Africa and Europe. However the 9/11 terror attacks in the United States had immediate repercussions in the extended South Asian neighbourhood. Afghanistan emerged as the initial battleground of the GWOT. Although the Taliban regime was swiftly removed, many high value Al Qaeda and Taliban targets remain at large even after five years, and the Taliban is currently. regrouping to fight the US forces and their NATO allies. Pakistan is a unique case; at one level it is a frontline ally in the GWOT, having changed its priorities in the wake of 9/11 and thrown its weight behind the US; on the other hand, Afghanistan and India are still not convinced by the efforts Pakistan has made in curbing cross-border infiltration from its soil. While terrorism in Kashmir predates the GWOT, it has since been incorporated into the GWOT because of the organic linkages between terrorist groups fighting India in Kashmir and those fighting the US. Though Sri Lanka and Nepal are also afflicted by the scourge of terrorism, both of home grown and transnational variety, this does not strictly come under the ambit of the GWOT.


II Definitions of Terrorism

According to the US Department of State’s Country Reports on Terrorism 2004, “the term “terrorism” means premeditated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine agents.”
UN Secretary General Kofi Annan endorsed the recommendation of the Secretary General’s High-level Panel on Threats, Challenges and Change: “For far too long the moral authority of the United Nations in confronting terrorism has been weakened by the spectacle of protracted negotiations. But the report of the High-Level Panel offers us a way to end these arguments. We do not need to argue whether States can be guilty of terrorism, because deliberate use of armed force by States against civilians is already clearly prohibited under international law. As for the right to resist occupation, it must be understood in its true meaning. It cannot include the right to deliberately kill or maim civilians.”
Annan added that “the Panel calls for a definition of terrorism which would make it clear that any action constitutes terrorism if it is intended to cause death or serious bodily harm to civilians and non-combatants, with the purpose of intimidating a population or compelling a Government or an international organization to do or abstain from any act. I believe this proposal has clear moral force, and I strongly urge world leaders to unite behind it.”
In September 2006, the United Nations Global Counter-Terrorism Strategy was adopted by its member states. According to the UN website, “this is the first time that all Member States have agreed to a common strategic approach to fight terrorism, not only sending a clear message that terrorism is unacceptable in all its forms and manifestation but also resolving to take practical steps individually and collectively to prevent and combat it.”
However the fact remains that there are only ‘definitions’ and not ‘a definition’ of terrorism. Some states are still unwilling to throw their weight behind the UN’s definition and the UN Global Counter-Terrorism Strategy admits that there are ‘outstanding issues’ yet to be resolved even as it reaffirmed “Member States' determination to make every effort to reach an agreement on and conclude a comprehensive convention on international terrorism, including by resolving the outstanding issues related to the legal definition and scope of the acts covered by the convention, so that it can serve as an effective instrument to counter terrorism.”
Winning or Losing the GWOT?

Almost five years after Operation Enduring Freedom was launched to wipe out the global terror phenomenon called Al Qaeda and oust the Taliban regime from Afghanistan, security planners in the US and other major capitals are struggling to find the answer to one question: are the US and its partners in the GWOT winning or losing? Being the flag-bearer of this campaign, Washington finds itself trapped in a handful of conflict zones where instead of eradicating the terror infrastructures, the GWOT has triggered a new wave of insurgencies adding not just to the collateral damage of civilians in this region, but also increasing US casualties every passing day.

Though the campaign started on a positive note by exterminating a major chunk of Al Qaeda infrastructure in Afghanistan and dethroning the Taliban from power, the decision to extend this campaign to Iraq turned out to be a catastrophe virtually pushing this country into civil strife and total anarchy. The initial years of GWOT were deemed successful when U.S. forces eliminated a sizable chunk of Al Qaeda commanders and cadre, leaving out its highest leaders like Osama bin Laden and Ayman al-Zawahiri. Al Qaeda lost its central organisational capacity, but in turn became a symbol and focal point around which like-minded people could rally around. As an idea, it continued to capture the thinking and indoctrination of thousands of Muslim youth around the world. Besides, the success in Afghanistan was not perpetual as the Taliban has recouped its cadre and logistics. Not only have the initial gains of the campaign been squandered, but the existence of the current Afghan government is also under threat.

On the other hand, Iraq has turned out to be a huge strategic blunder by the Bush administration as its plans of bringing democracy and structural reforms have failed to take root even as a bloody insurgency led by Iraqi Sunni groups, with declared affiliation to Al Qaeda, has pushed the state into total anarchy. The US and its allies are counting the body bags flowing in from various theatres in Afghanistan and Iraq even as the tentacles of global terror have spread to newer theatres in South Asia and Europe. At no time was the desperation more clear, when the US President pronounced the new wave as ‘Islamofascism’ - a statement which only helped alienate Islamic states from the GWOT. The return of violence in the volatile Middle East with the Hezbollah’s re-ascendancy and Israeli belligerence against the Lebanon-based group further divided the global community after bloody collateral damage was taken upon innocent civilians.

The ‘long war’, which has merely covered two of its declared phases so far, is already showing signs of irreparable fatigue. The US and its allies have suffered casualties of nearly 4000 dead and over 20,000 wounded in the GWOT campaigns in Afghanistan and Iraq. Yet, none of these fronts show any sign of stability with US-anointed governments struggling to hold the polity together. The mistake of attacking Iraq in the name of largely untraceable weapons of mass destruction (WMD) proved the ultimate nemesis for the campaign. Al Qaeda used the opportunity to establish a base in Iraq - which was largely secular during Saddam's regime – and recruit mercenaries from other nationalities to fight the US. As suicide attacks and misguided targeting of civilians become the norm in Iraq, Washington is caught in a quagmire from which it finds no room for escape. This, in turn, has led to a general sluggishness in its anti-terror campaign with a credible new plan eluding the administration.

This fatigue has affected the overall GWOT campaign, with many US analysts questioning the validity of continuing it. The realisation has also dawned on the security establishment that even as it eliminates each terrorist, more and more recruits are joining the cause. Thereby, the strategy of measuring success through the numbers game has proven to be counter-productive. The US has also lost its soft power capabilities with even friendly Muslim countries questioning the logic of invading Iraq. In the process, the war on terror itself has come under unprecedented criticism from even countries like Pakistan, which have been frontline allies in this campaign.

Putting up a brave face on his part, President Bush continues to declare that he would accept nothing less than complete victory – though that part is becoming undefinable. As support for the GWOT continues to erode, experts have called for reconsidering the goals and defining achievable goals. The GWOT has certainly failed on many counts and cannot be treated any more as a comprehensive campaign, especially when it has conveniently closed its eyes on terror movements in other conflict zones. John Mueller argued in a Foreign Affairs article that the fact that the US has suffered no terrorist attack on its soil since 9/11 suggests that the terror threat is massively exaggerated. However it would be equally wise not to underestimate the threat especially in the aftermath of the Iraq war, which has made the US less safe than it was before.


III Changing Dimensions of the GWOT

As the GWOT moves on with inherent ambiguities and lack of direction, terror groups have opened up more fronts in Europe and Asia, even as existing insurgent groups in the South Asian region have synchronised their terror campaigns in India and Pakistan with the global jihad led by Al Qaeda. As a result, major terror attacks were witnessed in both countries, as well as the infiltration of Pakistan based groups into Indian groups, as displayed by the Mumbai blasts.

The most notable shift in the global terror phenomena is the ascendancy of Al Qaeda and jihad as an inseparable brand and identification with it by Islamic insurgent groups across the world from Southeast Asia, South Asia, Africa, and Russia to Europe. As a result, terror campaigns under this brand have spread out to regions as far as Bali in Indonesia and in Europe, where terror cells have reportedly sprouted in the Asian community. In South Asia, more groups have emerged in recent years, especially in India, which have established identities with Pakistan-based groups. As for Pakistan, the increasing crackdown by the government has led to many of its groups changing attire and identities to evade detection, while enhancing cooperation with groups operating on the northern theatre and with Al Qaeda operations.

Responding to these changes, the GWOT waged by the US and individual counter-terror actions in South Asia have displayed new dimensions. In Afghanistan, the US is downsizing troop placements and has instead concentrated on the Afghan-Pakistan border. While the hunt for Osama and other Al Qaeda leaders is still on, the US momentum in this direction has toned down, and it has handed over security duties in southern Afghanistan to NATO. While Pakistan as a frontline state has raised many objections to the GWOT as enacted on its frontiers, Washington has initiated an enhanced level of cooperation with India on counter-terrorism strategies, though the latter is neither a military ally nor a frontline state. Such realignments in South Asia spell new direction for the regional war on terror. Though India continues to raise the status of terror groups operating in Pakistan, there is greater understanding in New Delhi and Washington to allow Pakistan its own time and space to uproot the infrastructure in its territory.

Another new dimension in the global terror campaign is the new improvisation in the resources used by terror groups across the globe. As surveillance has been increased, terror groups have improvised their own technology to avoid detection. The Mumbai blasts, where new chemical combinations were reportedly used, and the London conspiracy, where liquid chemicals were planned to be used for blasting many airliners, are cases in point. At the other end is the threat from WMD terrorism. Though no evidence has emerged on Al Qaeda or other groups acquiring chemical, biological or nuclear technology, there are reports of their intense attempts to attain such know-how. New initiatives have been launched at the global level to tackle this impending threat. South Asia, though not envisaging a WMD terror scenario in the immediate future, being known for as a WMD proliferation and terror hub, is seen anxiously by the rest of the world as a potential epicentre of WMD terrorism.

Lastly, another new feature of the GWOT is the restructuring of terror theatres. From concentrated hotspots in Afghanistan, Kashmir, Chechnya, the new scene of Islamic terror and counter-terror is spread across territorial thresholds like the Pakistan-Afghanistan border, European frontiers, Southeast Asian isles, Bangladesh and hitherto undisturbed destinations in India, Pakistan and elsewhere. Though traditional flashpoints like Delhi, Mumbai, Karachi, Srinagar and Kabul continues to be targeted, terror modules and operatives are now increasingly based out of safer bases like Aurangabad in India, Peshawar, Dhaka, the Northeast of India, Kathmandu and many spots in Southeast Asia.

South Asia and the GWOT

On the eve of 9/11, the peace process between India and Pakistan was back on track after having been derailed by the 1999 Kargil conflict, although it had suffered a setback at the Agra summit in 2001 when the two sides could not agree upon a joint declaration. But President Musharraf’s military regime was still out of favour with much of the outside world, especially the US. Afghanistan was also a ground for contending interests of India and Pakistan, as each country was supporting a different party in the civil war.

The events of 9/11 had major repercussions on South Asia. The strategic importance of the South Asian region in general and Pakistan in particular increased tremendously as the bordering region of the main battleground. The GWOT changed the strategic perceptions of the states in the region. Pakistan’s abandonment of the Taliban and its joining hands with the US as a frontline state in the GWOT did not go well with the strong religious community in the country. President Musharraf faced a backlash with increased acts of terrorism including several assassination attempts on his life. This created a growing realization in Pakistan that terrorism was a domestic problem as well that could potentially destabilize the state.

The jihadi groups based in Pakistan were forced to disappear from the scene and their activities were to a large extent halted by the changed circumstances. Pakistan arrested more than 400 most wanted terrorists fleeing from Afghanistan. Islamabad banned a number of jihadi groups like the Lashkar-e-Taiba and the Jaish-e-Mohammad, which were linked with anti-US activities and also operationally involved in Kashmir, though most of these groups continued to operate under new names. For example the Lashkar-e-Taiba, floated a political outfit called the Jamaat-ud-Dawa, besides reportedly cooperating with other groups like Jaish-e-Mohammad, to enhance operations in India.

India’s basic concern was cross-border infiltration from the Pakistani side. Though Pakistan had joined the US led GWOT, it still viewed India’s own ‘war on terror’ as a legitimate struggle for Kashmiri independence. In the wake of changed circumstances, the distinction between a freedom struggle and terrorism got increasingly blurred and Pakistan had to reconsider its policy of supporting the activities of non-state actors in Kashmir.

Despite Islamabad’s efforts to tackle cross border terrorist activities, violence continued in Kashmir. India repeatedly blamed Pakistan based militant groups for several attacks including the Srinagar state assembly attack in October 2001 and the New Delhi parliament attack in December 2001. India held Pakistan responsible for these attacks and amassed troops on the border, threatening Pakistan with war. The US got involved in brokering peace between the two countries and India backed off after getting assurances from President Musharraf that Pakistan will not allow its soil to be used for any terrorist activities. But the incident demonstrated how the activities of terrorists could take India and Pakistan to the brink of conflict.

A significant spin-off of the GWOT was the impetus that was thrust on India and Pakistan to initiate a peace process and devise concerted actions to tackle issues of terrorism in the region. With the Musharraf government declaring its decision to stop all acts of cross-border terror from Pakistan territory and becoming a frontline state in the war on terror, the stage was set for greater reconciliation between the two nuclear neighbours. After a ceasefire agreement announced in December 2003 (which continues till date), a composite dialogue was launched at the secretary-level in January 2004, and a variety of CBMs were introduced as a means for creating the mutual trust necessary to progress towards a final settlement of the Kashmir dispute. Though Kashmir continues to be a major obstacle, the mutual understanding to take the process ahead and alternatively work on solutions for the dispute ensured sustained negotiations, though occasionally interrupted by terrorist attacks in India.

Thereby, the peace process should be seen as a by-product of the changing dimensions of the GWOT with both Pakistan and India understanding their mutual pains arising from this scourge. Yet, there are hiccups galore as India feels terror groups on the prowl are mostly still based in Pakistan, and that Pakistan is not doing enough to remove them. Though Pakistan has called for greater cooperation in this regard, it is a point that the GWOT has yet to make inroads in clearing the terror infrastructure which might be lingering in parts of Pakistan. In fact, the diminishing results of the GWOT are also due to its neglect of other major terror spots and groups operating in the South and Southeast Asian region. Also, by concentrating the GWOT on the Islamic groups, and ignoring other terror movements, the comprehensiveness of this campaign is lost which affects its credibility.

The peace process remains at the mercy of terrorists who act as spoilers. The most recent example was the Mumbai blasts in July 2006, which forced India to suspend the peace talks. India’s tendency to reflexively blame Pakistan after every incident may not be helpful for creating a conducive atmosphere between the two countries. However Pakistan’s refusal to cooperate with India in similar situations in the past has also contributed to the trust deficit between the two countries. Pakistan’s suggestion that both countries conduct a joint investigation of such incidents has been treated with skepticism by India. But if Pakistan is indeed serious about such a proposal it would be highly desirable for both sides to undertake such joint mechanisms which could act as an important CBM between the two countries.

IV Future Action Plan

There are several incremental steps that could be taken to build mutual trust and confidence and mitigate the possibility of future terrorist attacks holding India-Pakistan relations hostage:

• Joint monitoring/patrolling of the Line of Control.
• Joint investigation of terrorist attacks.
• Intelligence sharing on terrorist groups on either side of the border.
• Using SAARC as an active platform to discuss terror related issues.
• Promoting track two and people to people contacts.
• Promoting military to military contacts and exchanges.
• Greater restraint in the media and from government functionaries.
• Working out a mutually accepted disengagement formula from Siachen with verification mechanism.
• Resolution of other contentious issues between the two countries like Sir Creek, Wullar/Tulbul, Baglihar, Kishenganga etc to ‘narrow the conflict space’.
• Softer borders and greater autonomy for both sides of Kashmir with defense, currency, foreign affairs with respective central governments.




                                                                                                     
Report of Group III

                                                                                                      The Expansion of SAARC
                                                       Implications for Vitality, Coherence, and the Future Role of the Organization



Members of the Group:
Farah Arbab
Saira Bano
Azeema Cheema
Luo Dandan
Fanny Deng
Deepti Mahajan
Jiang Tao
Sadia Tasleem
Narendra Tripathi
Gao Ziping

This report has been drafted on behalf of the group by Azeema Cheema.

I Introduction

The South Asian Association for Regional Cooperation (SAARC) was established by the governments of India, Pakistan, Bangladesh, Sri Lanka, Bhutan, Nepal, and Maldives in December of 1985. The organization that has now completed over twenty one years of its life was created to encourage social progress and economic cooperation, specifically through enhanced levels of trade, among its member states. SAARC has been criticized on several fronts for the Associations’ inability to achieve significant progress in its primary objectives in two decades. Analysts have identified SAARC’s major failure as not being able to establish a definitive role for itself within the region, either as an integrative forum to assist member states in the resolution of their bilateral disputes or as a successful facilitator of regional trade. The status of SAARC as a regional player has therefore always remained peripheral.

There is growing concern among member states over the question of ‘reorienting’ SAARC. A number of proposals have been put forward to improve the effectiveness of SAARC. Relatively new among these is a proposal for the expansion of SAARC. Since its inception in 1985, the membership of SAARC has expanded to include Afghanistan, and observer status has been granted to China, the European Union, Japan, South Korea, and the USA. The purpose of this discussion paper is to analyze the possibilities for SAARC to expand. The team identified two specific tracks for expansion --- Widening and Deepening.

By ‘Widening’, we take the literal definition of expansion, which is extending the scope of SAARC beyond its original membership. ‘Deepening’, however, is an alternative concept to increasing the number of member states. It implies expanding the current mandate of SAARC to include a greater role in the international politics, economics, and cooperative initiatives among its existing member states. SAARC could potentially define a strategic niche for itself as a credible facilitator in the implementation of such initiatives among states in the region.

The future role of SAARC has been discussed in light of both widening the scope of membership, and deepening the mandate. One element, which was identified at the outset as both an enabler and an obstacle in the functioning of SAARC, is India-Pakistan relations. The state of bilateral relations between the two countries has a profound impact on the region and was a recurring theme in our discussions. The analysis presented here therefore takes into account the future of SAARC, not only in the case of improvement in India-Pakistan relations but also in terms of how SAARC can play a role in stabilizing the political environment in the region.


II Widening the Membership

The Group examined the potential for widening the membership of SAARC on a case by case basis. The individual cases studied in this context and discussed below are Afghanistan, China, Japan, the United States, South Korea, and EU/ASEAN.

• Afghanistan

Afghanistan is the latest entrant in the existing pool of SAARC members, being accepted as the eighth member on November 13, 2005. Though there are many conflicting interpretations of the geographical status, as being part of Central as opposed to South Asia, Afghanistan’s long border with Pakistan gives it significant potential to have an impact on the political and economic environment of the South Asia region. The Afghan government’s enthusiasm for inclusion in SAARC stems mainly from their optimism about cooperation required from the South Asia region for reconstruction and peace building. Conversely for the original SAARC member, the incentive is that Afghanistan could provide a big margin for business, once peace is restored. However, these incentives are highly questionable, given the fact that the existing scenario offers rare possibilities for peace, both within Afghanistan and for good relations with Pakistan.

There are many analysts who support the argument that at this time, Afghanistan presents more challenges than opportunities. It seems that this entry is strongly driven by the political interests of the larger powers. India’s support has been largely motivated by the desire to “redefine regional boundaries”. Also for India, added political support is going to be a big advantage, particularly the opportunity to encircle Pakistan.

Pakistan’s continuing struggle in maintaining good relations with the Afghan government has driven apprehensions of these developments. Consequently Pakistan began to push China’s case forward.

• China

China’s interests in SAARC are driven by a natural inclination towards South Asia mainly due to geographical contiguity, and a strong desire to increase potential influence far beyond its own borders to counter any potential threat from the West. SAARC provides a great prospect for China to exert its influence at the political and strategic level, through a more direct and legitimate framework. China sees a chance for diversification of relations, mainly with both India and Pakistan, and peripherally with the smaller states aimed at the broader goal of multilateralism to minimize US unilateralism.

Although, China already holds observer status, the issue of full membership is highly contested. The implications are both positive and negative. While China’s economy is a point of strength and could be of great advantage (broadly speaking), its political presence is an issue of serious concern, particularly for India. There is also a somewhat diluted hope that China’s entry will stabilize SAARC by taking away from Indo-Pak hostility that has derailed the efficiency of SAARC for so many years.

• Japan

Japan is also an observer in SAARC. India is strongly supportive of the case of Japan in order to minimize the influence of China. The entry of Japan was attractive to the other members as it has the potential to bring in huge economic benefits, as well as technical assistance.

• United States of America & South Korea

In April 2006, the United States and South Korea made formal requests for observer status, which was granted on August 2nd, 2006 by the foreign ministers of SAARC countries.

For the US, the motivation was the opportunity to maintain its strategic interests in South Asia and also to observe the India- Pakistan dynamic.

Of these two cases, the entry of US can have serious implications. Members fear that the presence of the US will make SAARC a chess-board of power-politics eroding the geographical identity of SAARC, and granting more influence to a global hegemony. In this case, challenges are more obvious than advantages.

South Korea is perhaps the only individual country case discussed up till now whose interests are mainly driven by the desire to generate greater economic activity and the question of observer status is not tainted by the spillover of alliances.




• EU & ASEAN

The EU expressed similar interest in SAARC as the US and South Korea, however in a less formal manner. Nonetheless, observer status was granted to the EU at the same time as the US and South Korea.

Observer status of EU or ASEAN can be advantageous at certain levels. For instance, SAARC (a weaker organization) can benefit from the experiences of these regional organizations that are far more integrative, mature, and successful. Furthermore the presence of these organizations might generate good-will for SAARC, as an organization, driving serious interest of the member countries of both EU and ASEAN. Both the EU and ASEAN are well-placed to help SAARC evolve more efficient mechanisms to improve its performance especially in terms of economic activity.

• Analysis of the Overall ‘Widening’ Scenario

Given the cases discussed above, there are both pros and cons regarding the question of widening the scope of SAARC. Each individual case presents a varied set of pros and cons for every existing member -- and a complicated picture for SAARC as an organization. On the one hand there are strong prospects for high level economic activity in among SAARC countries, which serve the primary goal for which the organization was established. And the presence of such opportunities is thought to be a potent factor to divert SAARC’s focus from Indo-Pak bilateral hostilities to other serious issues of concern for the whole region.

However, critics believe that South Asia’s trade potential is not vast enough to benefit from the opportunities that are going to come up as a result of expansion. There are also serious apprehensions; e.g. increased membership has the potential to push SAARC away from its simple objectives to the more complicated scenario of power politics. In discussing the individual cases, it was clear that each membership instigates a domino effect in terms of states grappling for alliances, which catalyses the case for the next member. Considering this trend, ‘over-widening’ will probably push SAARC beyond regionalism to extra-regionalism that will overshadow its real cause.

While the interests of major powers can jeopardize the basic agenda of SAARC, the presence of China and the US is also likely to hasten inter-state rivalry that can possibly have extremely serious repercussions on the overall working atmosphere of SAARC. However, this analysis does not imply that the possibility of expansion be entirely ruled out.


III Deepening the Mandate and Role

While examining its deepening (that is, increasing the mandate and role of SAARC to maximize effectiveness on current issues) four broad rubrics were discussed – politics, economics, culture, and structure.

• Politics:

a. Bilateral issues:

As the recurring theme in our discussions, it is considered an established fact that the functioning of SAARC has been held hostage to bilateral issues – mainly the Indo-Pak conflict. There is currently no mechanism in SAARC to address bilateral issues as the charter does not provide such latitude, and voices are divided over whether such a provision should be brought into effect.

While some contend that regional facilitation, mediation, or arbitration may prove to be an effective instrument for resolution of bilateral problems, others argue that bilateral issues will hijack the agenda of SAARC and become an impediment to regional cooperation. Practically speaking however, the latter point is moot as most analysts agree that it is simply impossible to expect SAARC to function in a cooperative manner unless existing members are willing to cooperate with each other. In short, SAARC will not improve unless relations between members improve.

According to current practice, bilateral issues are the topic of informal discussions among leaders at SAARC summits during a one day long retreat. Whereas these sessions are useful for policy makers to develop a better understanding of their counterparts, they achieve little in practical terms as representatives have no legitimate authority to commit to any cooperative initiatives.

b. Responding to terrorism:

SAARC approved a Convention on Terrorism in 1987. However, there has been no work on its implementation. One pitfall in dealing with terrorism globally is the lack of consensus on its definition. Even within SAARC terrorism has no mutually acceptable definition, even in broad terms. The countries need to agree on a common understanding of the issue, share intelligence, and cooperate on sharing leads on terrorist activities, narcotics trade and money laundering. However, given the overall political scenario cooperation even on petty crimes is not possible.

c. Coordination and cooperation:

Countries in SAARC fall into the same category of developing nations and face similar socio-economic problems. It would be greatly beneficial to development practitioners in all fields, if SAARC countries had mechanisms for regular exchange of information on successful policies and programs so that success stories of development projects may be replicated across the region. NGOs in different SAARC countries may work together and network for knowledge and skill-sharing. However, this is one potential area of cooperation that has not been looked into very much and currently there are no existing mechanisms that can support this. Particularly countries that have signed the Paris Declaration should cooperate on its implementation and share their strategies for achieving MDG targets. Although these are economic initiatives, considering the structure of SAARC, and the volatility that sometimes faces governments in this region, they require political support and must be carried out through these points have been discussed as part of political cooperation as most group members agreed that for such initiatives to last for a sustained period of time they must be carried out through political channels.

d. Representation:

There needs to be a mechanism for ensuring genuine representation of peoples within the organization. Even though elections on the lines of the EU framework may seem implausible, some steps need to be taken in this regard. SAARC has a long way to go in terms of developing an integrated structure. In the meantime at least minimum standards for democratic representation need to be specified.

• Economics:

a. Free Trade:

There is already a consensus on the need for free trade in SAARC. Concrete steps need to be taken to bring tariff barriers down to zero. Currently, only 4 per cent of the global trade is carried out amongst SAARC countries. There is a great deal of debate regarding the maximum potential of free trade even in the face of zero tariff barriers. The potential for free trade is severely compromised in the face of unstable political relations.

The Group also considered the possibility of devolved trade blocs under the umbrella of SAARC. A good example of the potential of these sub-organizations is existing trade cooperation between eastern states of India and Bangladesh. While it was argued that regional sectors have greater affinity due to geographical contiguity and greater cultural similarities, it was eventually agreed that an effective sub-organization would have to be supported by a strong parent organization in order to be remain effective over a sustained period of time. Otherwise the sub-organization may undermine the purpose of the parent organization and weaken it further. SAARC is not yet a strong enough parent organization to be able to replicate a successful regional bloc in all other sectors of the region.

b. Development Fund:

The SAARC countries need to put in place a fund – raised both internally and externally – that may be used for regional development programs. Many IFI’s are already implementing regional technical assistance programs. If SAARC could establish a legitimate role for itself in the development practice of the region, it could prove to be an invaluable modem for South Asians to take ownership of their own development agenda.

c. United policy stance at international fora:

SAARC countries are largely dependent on agriculture for trade and revenue generation. The countries must therefore arrive at a consensus and speak in one voice at fora such as the World Trade Organization summit, etc. SAARC should provide a buffer for member countries to resolve their common issues before participating in international fora, as having a divided stance further weakens their bargaining position.

• Culture and Communication:

a. Academic exchange:

There should be opportunities for students from one SAARC country to pursue studies in another. Scholarships should be provided for exchange programs and such initiatives among countries in conflict with each other should especially be encouraged. Academics and scholars should be supported in the pursuit of joint research projects (which bring together individuals/groups from different SAARC countries). There are various mechanisms through which to set up these exchanges – RCSS is one such contributor.

b. Arts and culture:

There should be an attempt to facilitate exchange of arts and culture amongst SAARC countries. Artists, performers, and those working to preserve dying arts should be allowed to travel easily.

c. Increased airline and train activity:

The Group noted that currently there are no direct flights between many of the major capitals in SAARC countries. Where SAARC has negotiated visa exemptions for parliamentarians of member countries, it would also be beneficial for the region if SAARC played a role in enhancing communication channels through direct flights and an improved railway network.

• Structure:

a. Secretariat:

The current role of the secretariat is to coordinate and monitor the implementation of SAARC activities, service the meetings of the association, and serve as channel of communication between SAARC and other international organizations. The administration within SAARC needs to be strengthened so that it can gain a certain amount of credibility with the bureaucracies of member countries. A stronger secretariat should then attempt to minimize the involvement of national bureaucracies.

b. Decision-making:

Even though the ‘unanimity principle’ in which all countries have equal vote and veto power makes it difficult to reach consensus, this has generally been seen as a fair and equitable arrangement. Continuing difficulties to reach consensus have fuelled a certain level of frustration regarding the effectiveness of the unanimity principle and the discourse on whether it should be changed is deeply divided.

c. Institutionalizing research initiative:

A SAARC research centre must be established where issues are identified and researched on, and feasibility reports are prepared. It will form a common pool of resources for academic learning and policy-making.


In addition to the recommendations based on the analysis above, the Group also had the following suggestions:

• Some countries currently not full members of SAARC should be allowed ‘Dialogue Partner’ status which implies a position in-between being a full member and observer. There is scope for extra-regional powers to get involved in the workings of SAARC, but the pace of their integration needs to be moderated. Introducing ‘Dialogue Partner’ status will serve this purpose. Dialogue partners should be allowed to participate in discussions at SAARC summits but not vote on issues. They should be integrated into economic arrangements in a manner that they are able to contribute to the funds available for development in the region and offer technical assistance, while at the same time SAARC countries get to retain ownership of the agenda. The terms of engagement with all “extra-regional powers” should be clearly defined so that there is no space for coercion by economically stronger countries.

• There should be regular, institutionalized contact with the Shanghai Cooperation Organization, Economic Cooperation Organization, and Iran. Even though expanding membership at this stage does not seem plausible, avenues for future expansion should remain open.

• Like all SAARC member countries, SAARC itself also suffers from weak implementation of policies and programs. Policy implementation mechanisms within SAARC need to be strengthened.
 

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