India-ASEAN ties improving slowly

India-ASEAN ties improving slowly

By Ganganath Jha

NEW DELHI (JP): The annual meeting of ASEAN foreign ministers
is scheduled to be held in Brunei next month and important
matters to be deliberated are appraisal of the success of the
ASEAN Free Trade Area and other vital issues of economic
cooperation. Vietnam's inclusion in the ASEAN fold is also on the
agenda and subsequently they are to discuss security environment
under the auspices of ASEAN Regional Forum (ARF).

Naturally to be discussed is maritime developments on ASEAN's
western, southern and eastern frontiers. Thus strategic
developments in the South China Sea and Indian Ocean and
inadvertently the activities of important powers on Southeast
Asian frontiers will come under scrutiny.

India has been aspiring to closer ties with ASEAN because of
growing convergence of security and economic interests. It has
chosen liberalization and is seeking foreign investments for its
success. It is in search of vibrant new partners interested in
economic cooperation. Naturally it looks towards ASEAN with great
hopes.

However, this task is proving difficult. Though interactions
have increased ever since India became a "sectorial partner" in
January 1992, it is generally treated as a nation of little
significance. Whether it is a case of investment or the question
of inclusion in emerging regional groupings, India is the least
supported.

Though India has sizable investments in ASEAN countries, 89
out of 222 Indian joint ventures abroad, this is yet to be
appropriately reciprocated.

Presently ASEAN investors are negotiating more favorable terms
and more transparency in the investment laws, and sometimes
display their lack of confidence and understanding in India.

Singapore, Malaysia, Thailand and Indonesia have evinced
greater enthusiasm in establishing joint ventures in India.
Singapore is presently interested in information technology,
power projects and tourism. They have come forward to construct a
new airport in Bangalore and establish five-star hotels in New
Delhi.

Again, Malaysia is interested in joint ventures to produce
palm oil and some defense related products.

Thailand, on the other hand, is interested in tourism,
particularly in areas associated with Lord Buddha, like Bodh
Gaya, Sarnath, Lumbini and others.

Again Indonesia is interested in joint ventures to produce
paper and pulp.

Some agreements and Memorandums of Understanding have been
signed, but work on all those projects are at a standstill.

Some of the ASEAN investors have pessimistic projections and
are afraid of the emergence of sectarian and eccentric leaders
like Bal Thackeray in Maharashtra, Laloo Prasad Yadav in Bihar
and Kanshi Ram in Uttar Pradesh. When the Shiv-Sena-BJP combine
came to power in Maharashtra in March 1995, it deterred some
prospective investors because they felt insecure under the new
dispensation.

It is well known that foreign investors have no reason to feel
concerned about changes in the political leadership. There is a
broad consensus in India on the question of liberalization and
the process is irreversible. Ruling Communist Party in West
Bengal, Janata Dal in Bihar, BJP in Gujarat, and other recognized
opposition parties have expressed their support of economic
liberalization time and again. As India believes in democracy,
the change of the government in the Center and states are
possible, but reversal of liberalization is impossible.

However, ASEAN's impressions of India have yet to be
positively influenced. We do find that distant countries are
given regional importance but India is ignored. When Asia Pacific
Economic Cooperation was launched, India was kept out. Again,
India was not found worthwhile to be included in ARF.

The fact that India has conflict with Pakistan and it is not a
signatory of non-proliferation treaty are some of the reasons
that its membership is advocated against. ASEAN leaders ignore
that the conflict with Pakistan can be resolved when public
opinion of the two countries support it and in that endeavor the
role of international media and associations could play a pivotal
role.

Again the question of the non-proliferation treaty should not
be examined in isolation. There must be a universal application
of this principle and an objective assessment of the situation.
It is well known that India's two neighbors -- China and Pakistan
-- are in possession of nuclear bombs, but India has not
proliferated bombs. It is interested in nuclear technology for
peaceful purposes. In view of the tension in regional
environment, it is believed to be pragmatic in keeping nuclear
options open. This is aimed at deterrence vis-a-vis aggressors.
The deterrence is necessitated because India suffered humiliating
defeats in the 1962 war against China because it ignored defense
preparedness. India is unwilling to repeat the same mistakes.

The Kashmir dispute is a lively issue between India and
Pakistan. ASEAN has been categorical that the interference of one
country against another is unjustified. They have also condemned
transnational support of terrorism. Their united stand against
Vietnam vis-a-vis Cambodia during 1979-1989 influenced Vietnam to
withdraw. Kashmir offers a somewhat similar parallel and deserves
similar treatment. The frontiers of India and Pakistan are
clearly demarcated and conflicting partners are to be taught the
principles of non-interference. If the Kashmir problem is
resolved, the main raison d'etre of the Indo-Pak conflict would
be solved.

Some ASEAN diplomats do opine sarcastically that, having
failed in the SAARC, India pleads for inclusion in every regional
groupings like ASEAN, ARF, Asia Pacific Economic Cooperation and
others. This criticism, on the surface, seems to be correct. An
understanding of India, however, suggest that its voice of
concern about its omissions from such forums are not only to show
its willingness to cooperate, but also to express its
appreciation for those organizations. Again, it is keen to learn
from ASEAN experiences. Because of geographic contiguity and
similar concerns, ASEAN is important to India and vice versa.

India is keen to evolve consensus in security matters with
ASEAN and desires collective naval exercises. Though individual
ASEAN countries have gone for joint exercises, collective
exercises are yet to be held.

India perceives an emerging security vacuum in the region in
the event of American withdrawal. The Chinese are flexing their
naval prowess. It claims sovereignty over South China Sea and has
expanded its presence in the Indian Ocean by establishing bases
at Coco Island and Hanggyi. Such activities have generated
tension. But the most disturbing developments are witnessed in
the contest over the Spratly group of islands. The Philippines,
Vietnam, Malaysia and Taiwan are distressed at Chinese maneuvers
in the region. It is in this area where efforts for peace making
are required and our interests do converge with ASEAN. There is a
need of broader consensus and collective outlook on regional
issues to deter ambitious powers.

India identifies its interests with ASEAN in both economic and
security matters. As and when such gestures are reciprocated, it
would open its gates for broader regional prosperity.

Dr. Ganganath Jha is Associate Professor in Southeast Asian
Studies, Jawaharlal Nehru University, New Delhi.