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361. A US-India Trade Agenda for the Biden Administration

Author:
Aparna Pande and Husain Haqqani
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
The US ought to counteract the influence of Chinese authoritarianism early and often. One relatively low-cost way is to encourage India to engage more deeply as a competitor with China in the global economy. A democracy since its independence in 1947, with a population about the same as that of China, India is that country’s natural rival in Asia. Beginning with India’s decision in 1990-91 to liberalize its economy, the nation has gradually opened its vast market to global trade. Fueled by fresh access to foreign capital and technology, India’s economy grew over six percent during the first decade of the 21st century. In May 2014, this progress was further advanced by the election of Prime Minister Narendra Modi. For the first time in India’s history, a conservative administration had a clear parliamentary majority, making it possible to legislate foundational, market-positive reform. India has adopted a new insolvency and bankruptcy code and replaced multiple taxation regimes across its states with a federal goods and services tax, which is welcome. But India has done little to end its excessive protectionism. Its distrust of foreign corporations, a legacy of colonial rule, endures. Indian policy makers may believe that the US is so eager for Indian competition with China that Washington will grant them a pass on restrictive trade and investment policies. But there is a better choice. India is nowhere near its full economic potential, and the fix isn’t complicated. The Biden agenda for India should encourage India to lower tariffs, to remove barriers to foreign retail, to roll back unnecessarily restrictive data privacy rules, and to provide economic incentives for foreign investment.
Topic:
International Relations, Foreign Policy, Bilateral Relations, and Trade
Political Geography:
China, South Asia, India, and United States of America

362. Positive Visions, Powerful Partnerships: The Keys to Competing with China in a Post-Pandemic Indo-Pacific

Author:
Stephen Tankel, Lisa Curtis, and Coby Goldberg
Publication Date:
03-2021
Content Type:
Special Report
Institution:
Center for a New American Security (CNAS)
Abstract:
The United States was losing ground to China in the Indo-Pacific when the COVID-19 crisis began. China’s growing economic might, military modernization, and aggressive diplomatic efforts were already eroding America’s competitive advantage and shifting the regional balance of power. A year after the virus first spread, it is possible to identify where the pandemic is affecting diplomatic, economic, and defense trends in ways that could accelerate declines for the United States, but also might create opportunities to reverse or mitigate some of them. Restoring U.S. alliances and partnerships in the Indo-Pacific is critical to competing effectively against China, and President Joe Biden has made this a top foreign policy priority. In particular, his administration is making the Quadrilateral Security Dialogue—a strategic forum commonly known as the Quad, which is comprised of the United States, Japan, Australia, and India—a core component of its approach to the Indo-Pacific. Chinese post-outbreak behavior has driven increased cooperation among these four countries in the diplomatic, economic, and defense domains to address shared challenges from China. Seizing the opportunities this cooperation creates is critical for the United States. While expanding U.S. cooperation with Quad countries, the United States cannot neglect Southeast Asia, where competition with China for influence is fiercest. Southeast Asia is at the heart of U.S. and Japanese efforts to promote a free and open Indo-Pacific, and is a region where Australia has played a traditional leadership role. Competing effectively with China requires offering Southeast Asian countries a positive alternative vision to the one Beijing promotes. Whether the United States and its fellow Quad democracies can help Southeast Asian countries recover from the COVID-19 crisis will be a key litmus test of their ability to deliver on such an agenda. This report offers recommendations for the United States to take unilaterally and in close cooperation—bilaterally, trilaterally, and through the Quad—with Japan, Australia, and India to address challenges and seize opportunities created by the COVID-19 crisis along three lines of effort: diplomatic, economic, and defense.
Topic:
Diplomacy, Partnerships, Economy, Strategic Competition, and COVID-19
Political Geography:
Japan, China, India, Australia, United States of America, and Indo-Pacific

363. What the Quad Is, Is Not, and Should Not Be

Author:
Daniel Depetris
Publication Date:
09-2021
Content Type:
Commentary and Analysis
Institution:
Defense Priorities
Abstract:
Since its establishment in 2007, the Quadrilateral Security Dialogue (QSD or Quad) has transformed into a multilateral forum to enhance military coordination in the Indo-Pacific among the U.S., Japan, India, and Australia and to address issues of mutual concern—particularly the rise of China. The U.S. has pushed for this transformation. Quad members speak of the group as a forum for issues in the Indo-Pacific ranging from COVID-19 and climate change to emerging technologies. But China, Asia’s biggest power, is integral to addressing each issue. In early 2021, the group’s leaders signed a joint statement reiterating the importance of a rules-based order in the Indo-Pacific—a reference to what all four members regard as China’s illegitimate claims in the South and East China Seas. Indo-Pacific Quad members also have disputes with China: India over its shared border with China; Japan over China’s sovereignty claims over the Senkaku islands; and Australia over worsening ties, including onerous trade restrictions and tariffs.
Topic:
Security, Foreign Policy, Defense Policy, COVID-19, and Quad Alliance
Political Geography:
Japan, China, India, Australia, and United States of America

364. An Analysis of the Binding Constraints on Digital Financial Inclusion in India Using a Decision Tree Methodology

Author:
Nandini Harihareswara and Howard Miller
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
The past decade has seen significant innovation and growth in the volume and value of digital payments in India. However, we find that the associated gains have been heavily concentrated in favor of wealthier and urban customers and have had less impact on lower income and rural populations. While some customers now have a far greater selection of quick, cheap, and convenient digital payments methods, as much as 65 percent of the population remains effectively excluded. Using a decision tree framework, we test a range of factors on the supply and demand sides that could be binding constraints on further digital finance penetration. We find that an unlevel playing field in favor of the (primarily state-owned) banking sector results in a lack of effective competition that could be inhibiting greater innovation and outreach in favor of lower-income and marginalized people. This unlevel playing field is potentially a function of institutional weakness combined with the nexus of control of the government and the banking sector, which is reinforced by the position of the National Payments Corporation of India. This control may also be viewed by the government as necessary to protect economic stability in a very dynamic market. To the extent that institutional deficiencies are the root cause of regulatory barriers to the entry of new providers and the scope of digital financial services offered, they are a binding constraint on advancing digital financial inclusion. Under this market structure, the outreach and inherent business models of digital payments and transfers do not provide sufficient perceived benefits to attract large segments of the population. Further, a lack of trust in providers combines with the perception of low benefits to generate an additional binding constraint, preventing the market from reaching a critical mass at which the bulk of the population would have the means and the incentives to use the system. Therefore, the market remains at an equilibrium below its potential.
Topic:
Development, Governance, Finance, and Digitalization
Political Geography:
India and Asia

365. Civil Resistance Against 21st Century Authoritarianism: Defending Human Rights in the Global South

Author:
César Rodríguez-Garavito, Ezequiel A. Monsalve F., Ektaa Deochand, Slavenska Zec, and Kerem Çiftçioğlu
Publication Date:
04-2021
Content Type:
Book
Institution:
Dejusticia
Abstract:
This book — and Dejusticia’s initiative that originated it — seeks to promote answers to populist challenges to human rights. To do so, they propose a new thrust characterized by three features: reflective writing, narrative writing, and voices from the Global South. First, this book contains reflective writing. Its authors are activists who work directly within organizations in the field, who stop to think about the potential, the achievements, and the challenges of their knowledge and practice. In this sense, the book seeks to amplify the voices of human rights defenders in discussions about the future of the field, which tend to be dominated by research from academia. The texts combine the methodological and analytical strengths of academic research with the practical experience of the authors, organizations, and communities with which they work. The objective is to promote a hybrid genre that contributes to maintaining and widening the window of reflection and discussion in the field of human rights. Second, the genre proposed in this book, and in the series of which it is part, is narrative writing. In part because of the prevalence of legal language and knowledge of the world of human rights, the predominant writing in their field is that of technical reports and legal pleadings. While these genres have made notable achievements over the decades, this focus has prevented organizations and activists from effectively sharing their stories and experiences firsthand: those of the victims, the campaigns, the moral dilemmas, the injustices, the victories, and more. Opening the field of human rights to other actors, other knowledge, and other audiences means telling these stories and telling them well. To this end, the authors of these chapters are involved in the stories, relating them using techniques taken from fields such as narrative journalism. Third, the stories come from the Global South, from countries and regions that have more often been the object of study rather than the subject of knowledge, making their own decisions in the field of human rights. In this sense, these chapters attempt to respond to the challenges of a more multipolar world, to counter the organizational, economic, and epistemological asymmetries between South and North that have undermined the effectiveness and legitimacy of the global human rights movement. The authors of these studies are activists, researchers, and members of human rights organizations writing from this geographical and professional perspective to enrich the global debate on the future of the field.
Topic:
Civil Society, Human Rights, Food, Authoritarianism, Populism, Political Prisoners, and Healthcare System
Political Geography:
Turkey, India, Brazil, South America, Venezuela, Mexico, Chile, and Global South

366. One Nation One Subscription

Author:
Usha Mujoo Munshi and Jagdish Arora
Publication Date:
01-2021
Content Type:
Special Report
Institution:
India International Centre (IIC)
Abstract:
One Nation, One Subscription (ONOS), an initiative proposed by the Government of India (GoI), aims to provide countrywide access to national and international scientific and academic content. ONOS is expected to sign national licenses with most of the prominent STEM publishers and database producers across the world in order to encourage easy access to highquality academic information, thus stimulating scientific research and innovation in the country. This initiative is expected to benefit research and educational institutions including universities, colleges, research organisations, as well as every citizen of the country through public libraries.
Topic:
Education, Government, Research, Academia, Publishing, and Information
Political Geography:
South Asia and India

367. The Era of Dis-and-Misinformation Volume XXII, Number 1

Author:
Nicole Kalczynski, Rebecca Blaser, Nicholas J. Cull, Peter J. Phillips, Gabriela Pohl, Michael Christensen, Leonie Holthaus, Bohdan Harasymiw, Feeza Vasudeva, Nicholas Barkdull, Arthur D. Soto-Vásquez, Nadra Hashim, and Vincent Chenzi
Publication Date:
08-2021
Content Type:
Journal Article
Journal:
The Journal of Diplomacy and International Relations
Institution:
School of Diplomacy and International Relations, Seton Hall University
Abstract:
As the world continues to recover from the devastating fallout of the COVID-19 pandemic, navigating the harms of misinformation and disinformation remain at the forefront of global conversations on paving the path forward. Preventing the dissemination of false information—particularly during a time where the ways in which we engage with information environments have fundamentally changed—is increasingly complex. Social media platforms have enabled users to not only engage with media but become distributors of it themselves. When coupled with bad actors, limited repercussions, and poor content regulation, social networks are easily weaponized. At all scales of governance misinformation and disinformation campaigns pose a multidimensional threat. In Myanmar and China, disinformation campaigns were leveraged to target minority groups, while in Central and Eastern Europe, they serve as the cornerstone of destabilizing operations between adversarial states. In yet another facet, countries like Turkey, China, Russia, and Iran have embraced digital authoritarianism and restrict policies on internet accessibility under the pretext of stemming the spread of “fake news.” This year’s issue seeks to shed light on the nature of these evolving threats from a variety of innovative and understudied perspectives. This issue explores the causes and effects of the spread of misinformation and disinformation throughout different parts of the world and will be timely for years to come given the ever-increasing role and breadth of new technologies infiltrating people’s everyday lives.
Topic:
Corruption, Human Rights, Science and Technology, Authoritarianism, Democracy, Media, Internet, Social Media, Surveillance, COVID-19, Disinformation, Misinformation, and Fake News
Political Geography:
Russia, China, Europe, Iran, Sudan, Eurasia, Turkey, Ukraine, Middle East, India, Eastern Europe, Asia, Myanmar, Central Europe, and United States of America

368. Tangled Wires: Preparing India’s Power Sector for the Clean Energy Transition

Author:
Jonathan Kay
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Almost none of the world’s largest polluters have enacted policies compatible with the Paris Agreement’s target of limiting global warming to within 2 degrees Celsius, a threshold past which climate disruption is projected to become even more frequent, severe, and unpredictable. Fortunately, despite the absence of adequate government support, renewable energy has grown at an astonishing pace in recent years thanks to its plummeting cost. India, for example, has more than doubled its stock of wind and solar power in the last five years, driven less by sustainability concerns than by clean energy’s potential for cost-effectively meeting citizens’ pressing development needs. However, the low prices of wind and solar projects disguise the structural costs renewable energy poses for grids when deployed at larger scales. The intermittent, unpredictable nature of the electricity generated by such technologies—in contrast to the stable, on-demand flow of power from traditional fossil fuel generation—requires fundamental changes to how countries invest in and operate their grids. For India, one of the most important steps for coping with the variability of these new sources of energy will be better coordination of the flow of power between the country’s disparate state-run grids. By increasing the volume of energy traded between state utilities, periods of surplus power in one region can compensate for deficits in others, making for a more stable and reliable supply of renewable energy—one that can better displace expensive and polluting fossil fuels. Yet, while such reforms would be difficult under the best of circumstances, they will be particularly challenging given the unique dysfunctions of India’s power sector. With its politically compromised, perennially loss-making electricity distribution companies already struggling to keep the lights on, bolder change appears unlikely. Deeper reforms to India’s power sector are therefore prerequisites to adopting solutions like regional coordination that can ensure the continued growth of renewable energy. The good news is that Prime Minister Narendra Modi’s national popularity and the dominance of his Bharatiya Janata Party (BJP) at the state level offer the country’s leaders an opportunity to reform the power sector where others have failed. But to take advantage of this opening, Modi must go beyond his modus operandi by investing in incremental institutional solutions rather than one-and-done technical fixes and by serving as a coordinator for India’s states rather than legislating by central fiat. Deeper reforms enabling India to maintain its rapid expansion of renewable energy not only would provide clean, low-cost power to its people but also would help the world offset the failings of more laggard countries, perhaps even putting back within reach the Paris Agreement’s more aggressive target of keeping global warming to within 1.5 degrees Celsius. But the hardest part of this ambitious task lies ahead—in ending the vicious cycles that have plagued India’s power sector for decades.
Topic:
Climate Change, Pollution, Fossil Fuels, and Energy
Political Geography:
South Asia and India

369. Understanding the Encryption Debate in India

Author:
Anirudh Burman and Prateek Jha
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Encryption has become a contentious instrument for protecting the security and confidentiality of online communication. Rapid digitalization in the past decade has led to the proliferation of domestic and foreign online communication services that use encryption and, consequently, pose challenges to national security bodies and law enforcement agencies (LEAs). To address these challenges, the Indian government introduced new regulations in February 2021. These regulations require large social media platforms to enable traceability, or the ability to provide information concerning the originator of online communications. Technology companies and privacy activists have opposed such a move on the grounds that traceability would require the breaking of the end-to-end encryption used by many online communication platforms like WhatsApp and therefore would compromise the security of online communications on such platforms. This traceability requirement, however, is only the latest development in a drawn-out, contentious debate over the use of encryption. The contestation between maintaining higher degrees of online security and issuing new rules to grant technological exceptions for security agencies and LEAs is not specific to India. One of the first serious discussions on the issue took place in the United States in the 1990s, when public opposition warded off an early government attempt to sidestep encryption protections with a court order. In the past decade, the use of encryption has only grown more pronounced. The revelations that the United States’ National Security Agency was collecting vast amounts of communications data led to the introduction and increased adoption of end-to-end encryption for online communications. End-to-end encryption is now used widely by online communication platforms like WhatsApp, Signal, and Threema. Its use presents law enforcement and national security agencies with new challenges. Even though these agencies today have greater and easier access to more information than ever before, the absolute confidentiality provided by encrypted online communication platforms makes it harder for these agencies to engage in real-time surveillance to investigate crimes and identity wrongdoers. While some policymakers from India and other countries argue that encryption must only be weakened to solve specific problems, most experts agree that, as of today, there is no technological solution that would weaken encryption for specific law enforcement and national security purposes, while managing to maintain preexisting levels of security and confidentiality for general use. The introduction of any mechanism for specific access would, it is claimed, introduce both known and unknown vulnerabilities into these communications platforms. Such a mechanism would have a systemic effect on all online communication dependent on encryption for ensuring security and confidentiality. In India, these developments create challenges in specific ways. For example, India reports the highest number of child pornography cases worldwide, and encrypted communications makes it difficult to identify culpable parties. Similarly, as India has digitized rapidly, there has been a surfeit of fake and offensive online news that has, in some cases, led to mob lynchings. In addition, terrorist networks have been found to be using encrypted communication channels while planning and carrying out terrorist attacks in India. Over the years, the Indian government’s approach to encryption has responded to these concerns in a variety of ways. Indian financial regulators mandated the use of encryption for banking and financial services as they realized the security of such transactions was best protected through encryption. At the same time, the Indian government prohibited telecom operators from implementing bulk or mass encryption in telecommunication services. Starting in 2015, the government introduced different regulatory proposals requiring that messaging platforms and other communication service providers provide plaintext copies of communications to Indian government agencies on request. These proposals, however, faced significant opposition and were withdrawn. Earlier in 2021, the Indian government’s new rules requiring traceability have been officially notified. The mechanisms through which they will be implemented are not yet clear. It is also unclear if these rules are the last demands the Indian government will make to weaken encryption, or whether further demands will arise in the future. To weigh the relative benefits and drawbacks of the Indian government’s proposal, analysts should consider relevant factors such as (but not limited to) whether such changes will offer law enforcement officials the access they desire, how the security of encrypted communications will be affected, and how citizens’ civil liberties will be impacted, among others.
Topic:
Security, National Security, Science and Technology, Law Enforcement, Digitalization, and Encryption
Political Geography:
South Asia and India

370. India’s Fog of Misunderstanding Surrounding Nepal–China Relations

Author:
Vijay Gokhale
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
India’s postindependence ties with Nepal were predicated on the intimate cultural and historical links between the two countries. As India’s first prime minister, Jawaharlal Nehru, noted, “though Nepal was an independent country, it was very closely allied to India in culture and tradition and we did not look upon it as a foreign country.” New Delhi also regarded China as an “interloper” in Nepal in 1950 who threatened India’s security and interests in the region, ignoring at least a century of Sino-Nepali history centering around Tibet. This paper argues that New Delhi’s close relationship with Nepal, bound in history and culture, and the misperception about China’s relations with Nepal before 1950 have contributed to a skewed understanding of Sino-Nepali relations. The Working Paper looks at the impact that New Delhi’s misperceptions of Sino-Nepali relations, termed the “fog of misunderstanding,” has had in the context of the triangular relations between China, India, and Nepal. The paper is divided into four sections arranged chronologically. The first section looks at the historical Sino-Nepali relationship from the mid-eighteenth to the mid-twentieth centuries. It establishes that this early relationship was centered on Tibet. While the Gorkha kings of Nepal sought to preserve their trade privileges in the region, the Chinese were concerned about the security of their southwestern frontier. Notably though, Beijing’s concern with security does not appear to have extended into any desire to conquer Nepal. This section also touches upon British India’s policy toward Nepal in the nineteenth century, and the subsequent approach that the government of independent India took in the first few years, without an adequate appreciation of Kathmandu’s history with China. As a consequence, India developed a suspicious attitude toward Beijing’s desire to re-establish ties with Kathmandu after the Chinese Civil War, and shaped its policy toward Nepal with this factor in mind. The second section delves into Indian and Chinese policies toward Nepal in the period from 1955 until the end of the monarchy in 2008. It showcases how, during this long period, the three kings of Nepal sought to leverage their ties with China in order to maintain some semblance of balance and how China, in turn, followed a limited but strategic approach that was centered on the kings. The fog of misunderstanding continued to shroud India’s attitude to Nepal-China relations during this period and, consequently, India’s Nepal policy lacked a working template to manage relations with a smaller neighbor sandwiched between India and China in a way that would preserve New Delhi’s influence in a positive way. In contrast to China’s political approach, New Delhi fluctuated between the monarchy and an assortment of democratic political parties, suggestive of a provincial approach in New Delhi’s dealing with Kathmandu. As a result, China’s approach ensured that its main objective in Nepal, namely the security of its southwestern frontier, was secured with a relatively low-risk and low-cost strategy. The third section deals with the aftermath of the fall of the Nepali monarchy, 2008 to 2016. During this important period, New Delhi had a fresh opportunity to reset ties by providing the support to democratic forces in Nepal, that could have resulted in a transformation of the Indo-Nepali ties. However, India appeared to hew to its traditional policy. China, on the other hand, quickly built new ties with the post-monarchical dispensation. India’s perceived actions as a result of the adoption of the new constitution of Nepal plunged Indo-Nepali ties to a nadir. It seems to have pushed Kathmandu to strengthen its relationship with China. This section of the paper also outlines the changing nature of China’s policy and objectives in Nepal, especially in the second decade of the twenty-first century, and its possible implications on the future course of the triangular relationship, as well as for India-Nepal relations. It postulates that under President Xi Jinping, China’s policy toward Nepal has shifted from protecting its periphery to a broader goal of bringing Nepal under its strategic control. This section highlights the political and economic levers that Beijing is using to build a preeminent position in Nepal. The paper concludes with an assessment of options available to all three countries going forward, and India’s options in Nepal in the face of China’s new policy in the region. It suggests that a decisive reset in policy toward Nepal is required to restore healthy relations that are based on mutual respect and mutual sensitivity. New Delhi may need to re-orient its thinking toward Nepal in the context of triangular relations, including on the boundary issue and the 1950 Treaty of Peace and Friendship that have been long-standing irritants in the India-Nepal relationship. Nepal, for its part, should also reflect carefully on whether its leveraging of China might become counterproductive in the light of changing strategic balance in its vicinity, and the implications of giving up the policy of balance for one that tilts decisively toward Beijing. The paper concludes that there is sufficient scope and opportunity for course correction by India, and that through sustained efforts India may be able to preserve its influence and security in Nepal and counter China’s expanding footprint.
Topic:
Security, Foreign Policy, Bilateral Relations, and Geopolitics
Political Geography:
China, South Asia, India, Asia, and Nepal