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India-RI ties: From estrangement to cooperation

India-RI ties: From estrangement to cooperation

Dipankar Banerjee sketches some emerging trends in the
relations between India and Southeast Asia through the rubric of
Indonesia.

"Estranged neighbors", is how one would describe India and
Indonesia. For three long decades both countries had little to do
with each other. Yet, these two large, adjacent countries, second
and fourth largest respectively in the world by population, were
bound in the past by deep and strong ties.

History, geography and culture have linked the Indian
subcontinent with Southeast Asia, including Indonesia, for
centuries. Trade flourished since the 5th century. Inevitably the
flag followed, and kingdoms such as Sri Kshetra, Pagan, Khmer,
Sriwijaya, Syailendra and Majapahit were established.

Architectural monuments like Angkor, Borobudur, Pagan and Lara
Djonggrang symbolized the cultural fusion. But recent centuries
of colonialism and the foreign powers' maritime dominance, kept
the two neighbors separate, and tied them instead to their
colonial masters half way across the globe.

Independence movements in both countries again drew them
together in the 1920s. An emerging India strongly opposed the
reimposition of Dutch rule in Indonesia after 1945. An
international conference was convened in January 1949 in New
Delhi to demonstrate Indian solidarity with the Indonesian
people. The 1950s saw a convergence of interests. There was
cooperation between the armed forces of both nations. India
closely interacted with Indonesia in holding the Afro-Asian
Conference in Bandung in 1955.

But the three decades of the 1960s, 1970s and 1980s were
barren, with a palpable degree of tension. Yet, this did not
prevent the signing of two major agreements in the 1970s: The
Aug. 8, 1972, treaty demarcated the seabed covering the 90 miles
between Sumatra and the Nicobar group of islands and the Jan. 14,
1977, treaty setting out the continental shelf boundary between
Sumatra and the Nicobar islands in the Andaman Sea and the Indian
Ocean. With these treaties there remained no outstanding issues
between the two nations. But estrangement continued.

The end of the Cold War has brought to a close a chapter of
history. New forces, new ideas and new concepts of security are
now vying for a place in today's world. The emphasis is on
regionalism and globalization. Market forces dominate economic
planning. The emphasis is on internationalization and
interdependence, from confrontation to searching for ways to
develop cooperative security.

This was the backdrop to the Fifth India-Indonesia bilateral
colloquium held in Delhi in mid-January this year. The nodal
institutes involved were the Institute for Defense Studies and
Analyses in New Delhi and the Center for Strategic and
International Studies in Jakarta. Both sides attempted to
understand the dynamics of regional developments and explore
possibilities for future cooperation.

Much has happened to Southeast Asia in the last three decades.
The Association of Southeast Asian Nations (ASEAN) has
established itself as the most successful regional organization
in the developing world and is set for expansion. Its Free Trade
Agreement will allow greater regional trade. The East Asian
Economic Caucus, if it takes off, will intensify regional
economic dialogue. The Asian Pacific Economic Cooperation will do
more across the Pacific. The ASEAN Regional Forum will address
security issues by adopting cooperative mechanisms. The
Singapore, Malaysian and Thai economies have been booming for
some years and Indonesia, too, is on a path of high growth.
National and regional resilience have been strengthened.

India has consolidated itself and has developed strong
democratic traditions that provide it with both stability and
continuity. Its inner resilience is enduring, notwithstanding the
many Cassandras who would like to sound the end of the Republic.
Since 1991, India's new economic policies have liberated it from
its earlier shackles. Today, India is an uncaged tiger.

Delhi has adopted a "Look East" policy for some time now. It
is not merely a managerial approach but is a concept of total
engagement. It encompasses political, economic and strategic
aspects. It is also rooted in India's past engagement with the
region and is an expression of its Asian-ness. Prime Minister
Narasimha Rao referred to this in his Singapore lecture last
September. He drew attention to "the many interwoven religious,
ethnic, racial, linguistic and professional strands that bind
India to the Asia-Pacific. Only a superstructure needed to be
erected over the very sound and solid foundation that already
exists." One should dwell a little on the economic element of
these strands.

The Indian economy is swiftly internationalizing. Tariff
barriers are projected to be reduced at the same pace as those in
Asean. Foreign investments have taken a quantum leap and a much
larger inflow is likely in the coming years. A group of
businessmen of the Keidandaren visited India in January and
promised to make Japan the largest investor in India by the year
2000.

Meanwhile more changes are needed in the banking and
infrastructure areas. Many regulatory mechanisms will need to go.
These are now under serious consideration. In 1993, trade between
India and Indonesia rose by over 50 percent, even though in
overall terms it is still negligible. Other ASEAN states are also
making strenuous efforts to make their presence felt in India.

While there is enormous promise and prospects, there are also
questions of possible region wide instabilities and uncertainties
to take note of, as they could upset economic calculations. One
issue is China and the likelihood that its political transition
might be difficult. Territorial disputes are also sources of
instability. But there are reasons to suggest a more stable
environment. First, economic interdependence has enormously
enhanced the stake to maintain stability. Second, dialogue and
networking have increased substantially between countries and
regions.

Here, Track 2 diplomacy has a major role. The India-Indonesia
seminar was a step in this direction. But a more structured
process is the Council for Security and Cooperation in the Asia-
Pacific. As a non-official process that includes policy studies
and networking, the council can complement the ASEAN Regional
Forum.

India has now become much more involved in the interactive
process in Southeast Asia. The emerging challenge is to
accelerate this process.

Maj. Gen. Dipankar Banerjee is the Deputy Director of the
Institute for Defence Studies and Analyses, New Delhi.

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