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701. Potential Gains: Why Did India Exempt the Iranian Oil Payments from Taxes?

Author:
FARAS
Publication Date:
01-2019
Content Type:
Commentary and Analysis
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
India has recently exempted Iranian oil payments from taxes and fees, in a move aimed at fostering its relations with Tehran, in the wake of the US temporary waivers, in November, to India along with seven other countries from the sanctions on Iranian oil imports, in order to be able to develop the Iranian port of Chabahar. The US waivers have allowed India to resume trade and investment relations with Iran, albeit in a limited manner. However, despite the expected gains, economic relations between India and Iran will hinge on the extent to which the US administration will renew the waivers granted to the eight countries, to continue buying Iranian oil after the current grace period expires.
Topic:
International Relations, Oil, Sanctions, and Tax Systems
Political Geography:
Iran, South Asia, Middle East, India, North America, and United States of America

702. More than meets the eye in ROK ceding developing economy status

Author:
Dong Yan and Ma Tao
Publication Date:
11-2019
Content Type:
Policy Brief
Abstract:
A large number of farmers in the Republic of Korea took to the streets of Seoul on Wednesday, protesting the government's recent decision to give up its developing country status at the World Trade Organization in future trade negotiations and thus lose the benefits accruing out of it. The protesters were worried that the decision would eventually lead to a drastic cut in state agriculture subsidies and tariffs. …… Given that countries could experience uneven development, gaining undue advantages in some areas while being weak in others, the WTO has prevented some developing countries from enjoying some of the special and differential treatments in certain fields. For instance, it has restricted the ROK and India from using measures to promote balance of payment. Besides, the Agreement on Trade-Related Aspects of Intellectual Property Rights, revised in 2003, allows countries that lack production capability to import nonproprietary medicines, which is opposed by the developed countries－and 11 countries including China, the ROK, Mexico and Turkey have agreed to implement the agreement only in emergencies.
Topic:
International Trade and Finance, Treaties and Agreements, World Trade Organization, and Trade
Political Geography:
China, India, Asia, and Korea

703. Domestic Politics Force India's Withdrawal from RCEP and Broader Trade Disengagement

Author:
Amitendu Palit
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
The Regional Comprehensive Economic Partnership (RCEP) negotiations concluded at the ASEAN Summit in Bangkok on November 4, 2019. Fifteen RCEP members, including the ten-ASEAN countries, and Australia, China, Japan, Korea and New Zealand, agreed to commence preparation of the legal text of the agreement for signing in 2020. India was the only member to opt out, citing significant unresolved outstanding issues. India’s decision was surprising as it actively participated in the negotiations that lasted for 29 rounds and went on for more than six years since beginning in 2013. Domestic pressures forced Prime Minister Modi to withdraw India from RCEP at the last minute. It also points to disengagement becoming the prominent character of India’s trade policy as domestic protectionist interests successfully undermine outward-oriented economic visions.
Topic:
Politics, Treaties and Agreements, Economy, Trade, and ASEAN
Political Geography:
China, India, and Asia

704. New Delhi’s ‘Act East’ and the India-ASEAN Engagement: What They Mean for India-Korea Relations in the Indo-Pacific

Author:
Jagannath P. Panda
Publication Date:
05-2019
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
One of the principal objectives of New Delhi’s ‘Act East Policy’ (AEP) is to strengthen India’s contact with the ASEAN as well as with the countries in Southeast Asia. The pursuit is evolving and ever-growing, both institutionally and regionally. With a focus on ASEAN-centric cooperation, forging a closer multi-modal connectivity cooperation between India’s bordering states and the immediate Southeast Asian countries has been one of the guiding principles of this engagement. Also, this engagement is becoming deeper with India aiming to extend the connectivity cooperation to the interior parts of the ASEAN region from the immediate neighbouring region of India. A renewed focus on engagement through increased cooperation in areas such as economic, political and security realms offers a positive future graph to the India-ASEAN engagement at present which is becoming one of the defining features of Indo-Pacific. With the possible conclusion of the Regional Comprehensive Economic Partnership (RCEP) in 2019-20, the regional economic architecture will move to a new level of maturity in which India would like to factor in its engagement strongly with the other countries. More importantly, it is in India’s interests to further deeper cooperation with the ASEAN as an institution. The economic role of ASEAN’s dialogue partners, especially that of China, will test India’s relationship character with the ASEAN. How should India react to the evolving regional economic and security architecture around the ASEAN? Options for India are perhaps plenty. Yet, India needs to find strategic compatibility with most of the ASEAN dialogue partners – some of which are influential economic actors in the region – to position its strategic interests more coherently. South Korea (officially known as the Republic of Korea) is one of those prime actors with whom India must envision to have more policy convergence keeping the ASEAN framework in mind, and draw strategic compatibility in specific areas of cooperation and mutual benefit. This study examines India’s growing engagement with the ASEAN and factors how India-South Korea could possibly cooperate within and outside an ASEAN framework. The study tries to establish policy convergence between India’s Act East Policy (AEP) and South Korea’s New Southern Policy (NSP), bilaterally and regionally, factoring the ASEAN and the countries around as the central focus of this cooperation.
Topic:
International Trade and Finance, Regional Cooperation, Treaties and Agreements, and Economic Policy
Political Geography:
South Asia and India

705. An Unnatural Partnership? The Future of U.S.-India Strategic Cooperation

Author:
Samit Ganguly and M. Chris Mason
Publication Date:
05-2019
Content Type:
Special Report
Institution:
The Strategic Studies Institute of the U.S. Army War College
Abstract:
As global competition with an increasingly assertive Chinese Government expands, the strategic relationship between India and the United States is assuming ever-greater importance. From a superficial perspective, a strategic partnership seems to make a great deal of sense for both countries. Yet, enormous political, cultural, and structural obstacles remain between them, which continue to slow the progress in security cooperation to a crawl, relative to China’s economic and military advances. The authors explore these impediments frankly and suggest practical ways to build trust and establish confidence.
Topic:
Bilateral Relations, Armed Forces, Military Affairs, Partnerships, and Strategic Competition
Political Geography:
South Asia, India, North America, and United States of America

706. Parameters VOL. 48 NO. 3 Autumn 2018

Author:
Antulio J. Echevarria II, Eric B. Setzekorn, Richard G. Malish, Kelly A. Grieco, Vinay Kaura, Paul E. Vera Delzo, Richard Milburn, and Brandon T. Euhus
Publication Date:
01-2019
Content Type:
Special Report
Institution:
The Strategic Studies Institute of the U.S. Army War College
Abstract:
The Autumn issue of Parameters opens with a forum featuring two contributions that highlight some important Challenges for USCivil-Military Relations. The first contribution, “Policy Revolt: Army Opposition to the Korea Withdrawal Plan” by Eric Setzekorn, argues senior US Army leaders adopted a Fabian strategy of indirect resistance to Carter’s desire to reduce the number of troops stationed in Korea. The strategy worked. But the author leaves us wondering whether that success was a positive development for US civil-military relations. The second article, “The Walter Reed Scandal and the All-Volunteer Force” by Richard Malish, provides intriguing evidence that the American public might have put the AVF on a pedestal high enough that it harms civil-military relations. Our second forum, On Alliances and Coalitions, offers three essays addressing the importance of integrating disparate perspectives under a common strategy. The first article, “Fighting and Learning in the Great War: Four Lessons in Coalition Warfare” by Kelly Grieco, describes the key insights the United States and its allies drew, or ought to have drawn, during the First World War. All of these, as Grieco shows, have immediate relevance today. The second contribution to the forum, Vinay Kaura’s article “India-US Relations: From Distant Partners to an Alliance” suggests American and Indian interests are converging in a manner that makes an alliance between them, hitherto inconceivable, now a worthy objective. Paul Vera Delzo’s “Toward a Whole-of-Government Approach: Revamping Peru’s Strategy Process” describes how Peru can obtain greater efficiency and effectiveness from its strategies by integrating all government agencies. The final forum, On Clausewitz, presents two articles that challenge nontraditional interpretations of On War. Richard Milburn’s “Reclaiming Clausewitz’s Theory of Victory” takes on Emile Simpson’s “Clausewitz’s Theory of War and Victory in Contemporary Conflict” (Parameters Winter 2017–18). Milburn rejects Simpson’s view and maintains Clausewitz’s theory of victory remains relevant in the twenty-first century. Brandon Euhus’s “A Clausewitzian Response to ‘Hyperwarfare’ ” urges military planners to remember the human dimension of war, as expounded upon by military writers from Thucydides to Mao Zedong, is ultimately the decisive one.
Topic:
Security, International Affairs, Armed Forces, Military Affairs, and Army
Political Geography:
India, North America, Korea, and United States of America

707. Reforming Indian Agriculture

Author:
Ashok Gulati, Devesh Kapur, and Marshall M. Bouton
Publication Date:
08-2019
Content Type:
Working Paper
Institution:
Center for the Advanced Study of India
Abstract:
Following an overwhelming election victory, Prime Minister Narendra Modi’s new government has a golden opportunity to bring about historic reforms in the agricultural sector to improve farmer livelihoods and national food security. The sector affects the economic well-being of half the Indian population and the access to affordable and nutritious food for all Indians. Fundamental reforms can achieve sustainable and broadly distributed agricultural growth that will add to India’s GDP, increase export earnings, help conserve increasingly scarce resources of land and water, and enable the more orderly movement out of agriculture and into other productive sectors. Reforms in four areas should be the priority if Prime Minister Modi’s bold goal of doubling farmer incomes is to be accomplished in the coming years. First, the focus of agricultural policies must shift from production per se to farmers’ livelihoods. Second, policies to improve the allocation and efficiency of land and water are essential if the critical resources of water and land are to be conserved. Third, reforms are needed to help farmers cope with the growing risks of weather and price volatility. Fourth, agricultural markets must be opened to greater competition and provided with better infrastructure if farmers are to realize better returns for produce while ensuring nutritional security for low-income consumers. Agriculture is a state subject but where the Central government has had—and will continue to have—a large role. Reforms can only succeed if the Central and state governments work closely together in a spirit of “cooperative federalism.” Many of the important levers of change—water, power, irrigation, extension, agri-markets, etc.—are controlled by the states. Going forward, it would be helpful if the government created an Agri-Reforms Council on the lines of GST Council for a somewhat longer term than is currently done (for two months). The focus for the Government of India will need to be twofold: actions that it can unilaterally take to raise agricultural incomes; and second, actions to influence state government efforts to improve agriculture with its sustainability at the core. The steps listed should be thought of as a package, which will have an impact if most are implemented and not one or two in isolation.  Reduce cereal procurement and keep MSP price increases for rice and wheat below inflation, and not exceeding border prices, while encouraging the private sector to develop robust markets in less water intensive crops like pulses and oilseeds by removing controls on stocking, trading, exports, etc. This will also have a beneficial impact on depleting water tables in certain regions, notably in north-west and southern India.  Implement income transfers scheme for farmers in tandem with reductions in the subsidies for power, water, and fertilizer that distort incentives and hinder change. This will have large positive environmental effects and help toward better natural resource management. Keep the real prices of subsidized grains under the National Food Security Act, 2013 and link them to the MSP to incentivize the production and consumption of non-cereals.  Scrap the Essential Commodities Act and other laws designed fifty years ago for conditions of scarcity. Those conditions of scarcity have long since disappeared. India is trying to cope more with the problems of surfeit than scarcity.  Focus on income from livestock to help marginal farmers (<1 ha). Change laws and more importantly the political and social climate that have been so detrimental to the livestock sector lately.  Eliminate or reduce dramatically export restrictions and export taxes on agricultural products. Trade policies that have been arbitrarily and pro-cyclically imposed (increasing tariffs and import restrictions when world prices come down, and imposing export bans and taxes when domestic prices rise)—must become stable and predictable by setting “trigger levels” well in advance.  Accelerate the effort to create a single agricultural market by introducing assaying, grading, setting standards, bringing “Uber-type” logistical players on e-platforms to move goods from one region to another, and setting dispute settlement mechanisms so that farmers and farm organizations can transact with any buyer, anywhere in India, and at any time of their choosing.  Support the creation of public mandis as a viable alternative to private trade. Most importantly, across the board, increase marketing options available to farmers while subsidizing market infrastructure improvements.  End support for the rehabilitation of inefficient urea plants and create a plan for closing the most inefficient plants.  Incentivize the passing of state laws to allow easy leasing/renting of agricultural land and relax restrictions on conversion of agricultural land for other purposes. At present, these restrictions keep the value of agricultural land low and raise the barriers to exit from agriculture. Finally, even as these reforms are undertaken, it needs to be recognized that growth and employment opportunities outside agriculture are critical for long-term improvements in farmers’ incomes. Relentless population pressures have meant that most Indian farms are too small to provide viable incomes. The long-term future of Indian farmers fundamentally depends on getting many people out of farming. Ironically, that future will come about more reliably if policies to improve agricultural production and incomes are pursued today.
Topic:
Agriculture, Reform, Elections, and GDP
Political Geography:
South Asia, India, and Asia

708. State-led Responses to the Indian Energy Challenge: Infrastructure Expenditure, Central Public Sector Enterprises and Electrification

Author:
José Eduardo Cassiolato, Maria Gabriela von Bochkor Podcameni, Elisa Possas Gomes, and Manuel Gonzalo
Publication Date:
03-2019
Content Type:
Research Paper
Institution:
BRICS Policy Center
Abstract:
In the 21st century, economic growth, increasing urbanization, demographic expansion, and advances in electrification as important drivers of energy demand have put significant pressure on the Indian energy landscape. Indeed, energy infrastructure problems are a major hindrance to India’s economic growth. The central objective of this paper is to present and analyze some of the main State-led policy efforts that have been put in place to address India’s energy challenge. In particular, we examine three main types of state-led energy policy in India: a) infrastructure expenditure, b) Central Public Sector Enterprises (CPSEs) investments and Research and Development (R&D) strategies, and c) electrification. Firstly, we present and examine current data on the role of the state in the development of India’s energy sector. Secondly, we provide a nuanced examination of the role of public-private relations in India’s energy sector, especially in contrast to the widespread advancement of the neoliberal agenda in the country recent years. We conclude that the Indian State has fostered an increasing participation of the private sector in infrastructure, especially in renewable energies in which PPPs type of procurement have been more relevant. CPSEs’ expenditure in R&D has been of main importance in oil as well as in power. However, most of them tend to adapt foreign technologies instead of balancing foreign technologies with domestic technological efforts. Therefore, a main contemporary challenge for the Indian CPSEs performing in the energy sector is to deepen their connections and interaction with the other Indian NSI actors. Through the electrification process, the State has created markets for the private sector. Finally, we recommend further energy-related questions to be addressed in future research projects.
Topic:
Climate Change, Energy Policy, Environment, United Nations, Public Sector, Renewable Energy, Private Sector, and Sustainability
Political Geography:
India

709. The Arms Trade Treaty (ATT) and Asia’s major power defiance

Author:
Marc Finaud and Gaurav Sharma
Publication Date:
05-2019
Content Type:
Commentary and Analysis
Institution:
The Geneva Centre for Security Policy
Abstract:
Despite worldwide support of 130 states, the Arms Trade Treaty (ATT) has failed to attract membership from countries in Asia, one of the largest arms importing regions. One set of explanations for this reluctance to join an international regime of conventional arms trade regulation is related to the fear of restrictions on the imports of weapons seen as necessary in a context of protracted conflicts and rising tensions among key states in Asia. Another argument is the interpretation of the ATT as not directly prohibiting arms transfers to non-state actors, such as terrorist groups. Another reason is the efforts of some Asian states to develop their own arms industry and exports to reduce dependency on external suppliers and project influence in the region. One of the main criticisms from the Asian states about the ATT relates to the criteria of export risk assessment (Article 7), which, in their view, gives undue advantages to exporting countries. It would be desirable to promote some dialogue between State Parties and Asian non-parties and signatories to assess the benefits from and the difficulties in implementing the Treaty and address the objections of nonparties. Amending the Treaty will be easier if Asian countries accede to it.
Topic:
Security, Arms Control and Proliferation, Treaties and Agreements, Weapons, and Arms Trade
Political Geography:
Pakistan, China, South Asia, Indonesia, India, Asia, and Southeast Asia

710. France's “Indo-Pacific” Strategy: Regional Projection

Author:
David Scott
Publication Date:
08-2019
Content Type:
Journal Article
Journal:
Journal of Military and Strategic Studies
Institution:
Centre for Military, Security and Strategic Studies
Abstract:
President Macron talks of France’s ‘Indo-Pacific strategy’ (une stratégie indo-pacifique). This article analyzes French strategic discourse and strategy adopted for the Indo-Pacific by France. It finds that French strategy has three main elements. Firstly it has seeks legitimacy, politically seeking to move from a colonial possessions position to democratic integration with France, and has sought to achieve regional integration and legitimacy of this. Secondly, geographically France has moved up northwards from its possessions in the Southern Indian Ocean and Southern Pacific to active maritime involvement in the northern Indian Ocean, South China Sea and Western Pacific. Thirdly, French strategy is to actively secure security partnerships with other countries in the region. Naval projection is a prominent feature of French strategy, which is a strategy which is significantly driven by China’s maritime expansion across the Indo-Pacific. The article thus seeks to analyze, explain and evaluate the effectiveness of France’s Indo-Pacific strategy.
Topic:
Foreign Policy, Regional Cooperation, Military Strategy, Democracy, and Maritime
Political Geography:
Europe, Indonesia, India, France, Indo-Pacific, and South China Sea