When in India, President Bush cited a range of initiatives for
U.S.-India cooperation and touched on ideals the two nations should
seek to work towards. Of course, the President has his own foreign
policy goals to pursue and the ideas he described were noble. But he
could have been talking about a different country. If we look at Indian
foreign policy, its nuclear industry and the weak link between freedom
and democracy, we can see how far India must go to match such lofty
rhetoric.
Nuclear energy is a state monopoly in India and helping this sector
strengthens the Government's hand in power generation. Indians are
plagued by power cuts as a result of state intervention in this
industry. Further, "safeguards" have little meaning in India where
there are no tort laws. If there were a nuclear accident, no Indian
would receive compensation. The Bhopal industrial disaster, for
example, occurred in the mid-80s. Until now, precious few have received
anything. Indians routinely die from building disasters, adulterated
food and medicine and the like — but rarely receive any relief from the
law of torts.
The President also spoke of cooperation on defense. Once again, this
is a fine idea in theory. The President spoke widely of multi-role
combat aircraft, helicopter gunships and other high-tech initiatives.
The truth is that India's defense establishment is hopelessly corrupt.
They continue wars where no wars are necessary. Rajiv Gandhi was
charged with receiving kickbacks when Swedish Bofors guns were
purchased for the Indian army. Recently, India's Defense Minister was
implicated in a shameful scandal, when it was discovered that kickbacks
were paid for purchases of U.S. coffins for soldiers killed in the
Kargil war.
As far as the senselessness of India's security establishment is
concerned, the 25-year-old war with Pakistan on the frozen wastes of
the Siachen glacier is a good example. I was close to Siachen once: it
was -40 degrees Celcius in the sun! If we auctioned off the entire
area, no one would offer a penny for it. But India has been spending
over 300 million rupees every day for over 25 years in this senseless
war. When the war began, we were informed that the 'strategic' goal was
to command the heights dominating the proposed Karakoram highway.
(William Dalrymple's In Xanadu recounts his travel from
Pakistan to China by bus over the Karakoram highway 10 years ago.)
India would do better to build its own highway in the region than fight
this war, but it may be that the defense establishment is merely
interested in budgets, rather than any serious security concerns.
After all, over a million Indians are killed every year on the
unsafe streets of India and millions more are seriously injured. Thus,
the 'security' concerns of the Indian citizen are very different from
those of the Indian state.
President Bush's speech in New Delhi spoke of the link between 'democracy' and 'freedom'. Again, these are laudable ideas. Yet, despite India being a democratic nation, the Economic Freedom of the World Index rates India close to the bottom and the U.S. close to the top. The title of Deepak Lal's book on India, A Repressed Economy, says it all. Indians were freer under feudal lords and even the colonial Brits than they are today. Feudal lords routinely fell in love with dancing girls; but dancing girls have been outlawed by legislative fiat today. Democracy and freedom doesn't always go hand in hand, and nowhere is this truer than in contemporary India.
Free trade between the people of India and the people of America is desperately important for average Indians. Indians would benefit from buying used cars, buses and trucks. Indeed, Indians would even buy insurance write-offs, which could be cheaply repaired in India. Americans would benefit from better prices for their old cars, and lower insurance costs as well. Taking the point further, Indians would also buy used refrigerators and television sets. Cheap American wine would also be a big hit, and yield public health benefits, for Indians are killing themselves with the hard liquor they are forced to drink today. There are a host of trading gains to be made, for the benefit of both ordinary Indians as well as ordinary Americans, which citizens on both sides are being denied. Instead, the corrupt and repressive socialist-communist Indian establishment — and its powerful bureaucratic elite — remain as strong as ever.








