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India’s neighbours drifting towards China: Has PM Modi’s “Neighbourhood First” policy failed?

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Syed Ahmed Uzair

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India’s neighbours drifting towards China: Has PM Modi’s “Neighbourhood First” policy failed?

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Global Views 360

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October 16, 2020

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Prime Minister Narendra Modi in a 2014 SAARC Meeting

Prime Minister Narendra Modi in a 2014 SAARC Meeting | Source: Wikimedia

Back in 2014, when BJP came to power in India under the leadership of Narendra Modi, he invited the heads of government from Nepal, Bangladesh, Pakistan, Afghanistan, the Maldives, Bhutan, and Sri Lanka to his swearing-in ceremony at the Rashtrapati Bhavan.­ The move set the tone nicely for Modi’s “Neighbourhood First” foreign policy and was hailed by experts and critics alike as a positive step towards bolstering regional connectivity and improving cross border relations. Cut to 2020, and the ongoing China-India conflict has exposed plenty of problems for New Delhi regarding its relations with its neighbouring countries, particularly, Pakistan, Bangladesh, Sri Lanka, and Nepal.

In recent days China has increased its investments in Asia and beyond even as India and the West have watched from close quarters. Most of the investments have revolved around Chinese President Xi Jinping’s Belt and Road (BRI) Initiative , which aims to create a Sino-centric global trading network and sphere of influence. The BRI initiative is a matter of concern particularly for India because of the China-Pakistan Economic Corridor (CPEC) that is perhaps the most important project under the BRI initiative.

India has, traditionally, played a dominant role in economic and political matters concerning most of its smaller neighbours. However, with the BRI initiative, China gradually built up its political ties with countries such as Nepal, Sri Lanka, and Pakistan, while India’s relations with these countries have become less cordial in recent years. Nepal, Sri Lanka, and Bangladesh, who were once considered allies to India appear to have tilted in favour of China.

The changing nature of India’s and China's relation with India’s neighbouring countries was evident in the silence of these countries when there was a serious flare-up on the India-China border. It is important to note that every South-Asian nation except Bhutan has signed on to China’s BRI. Bhutan is still following India’s lead in not joining BRI due to its own border dispute with China, for which India’s support is essential.

Nepalese Prime Minister KP Oli with PM Modi | Source: Wikimedia

Nepalese PM KP Oli had called Indian PM Narendra Modi, on 15th August, India’s seventy-third Independence anniversary. A statement by India’s Ministry of External Affairs stated, “‘The leaders expressed mutual solidarity in the context of the efforts being made to minimise the impact of the Covid-19 pandemic in both countries.” However, in June 2020, the Nepalese Armed Police Force fired upon a group of Indian citizens at the India-Nepal border, killing one person and injuring two others. A third Indian who had been detained was released later. The move came in the aftermath of the Nepalese Parliament declaring the Indian territories of Limpiyadhura, Lipulekh and Kalapani as a part of Nepal.

Historically, India and Bangladesh have maintained close ties with each other. Modi’s rise to power in 2014 had no effect as Bangladesh’s PM Sheikh Hasina continued to maintain relations with India. In June 2015, when Modi visited Bangladesh 22 bilateral agreements were signed, including the resolution to a border issue that had existed since 1947 through a successful land boundary agreement (LBA). India also pledged $5 billion worth of investments in Bangladesh. When Sheikh Hasina visited New Delhi in April 2017, a civil nuclear tripartite pact was signed between India, Russia, and Bangladesh. Under the pact India will play an important role in establishing a nuclear power plant in Bangladesh. Even as late as March 2019, Narendra Modi had launched four projects in Bangladesh.

PM Modi, during a meeting with Bangladeshi PM Sheikh Hasina donates the steering wheel of INS Vikrant (R11) to the Bangladesh War Museum | Source: Wikimedia

However, India’s relationship with Bangladesh turned sour post August 2019, when the BJP government implemented the NRC in Assam, a north-eastern Indian state. The process of NRC was meant to identify illegal immigrants from Bangladesh. The 1.9 million people left out in the Assam NRC were a cause of concern for Bangladesh owing to the fear of a sudden influx of people forced out of the Indian state. Bangladesh thus turned to China under its “look East” policy in a bid to reduce its dependence on India. China replaced India to become the top trade partner of Bangladesh in 2015 and has provided assistance to Bangladesh through the BRI via 27 agreements signed on Xi Jinping’s visit to the nation in 2016.

“China is behaving how emerging superpowers generally tend to behave—they try to flex muscles and project power—all of which China is trying to do at the moment," says Happymon Jacob, associate professor of disarmament studies at Jawaharlal Nehru University (JNU). “When that happens, states around that emerging power will either stand up against it (like India) or jump on the bandwagon (like other smaller south Asian countries)."

While China continues to make rapid strides, India is left to wonder as to how to deal with this apparent crisis surrounding its neighbouring countries. Modi’s neighbourhood first policy has certainly failed to deliver the promises it made and relations with most neighbouring countries have worsened over the past six years. New Delhi has missed out on several economic gains that would have strengthened ties with neighbouring countries and thereby would have helped to counter the growing Chinese influence in the region. It remains to be seen as to how India decides to get over this tricky situation and improves its ties with its neighbouring countries.

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February 4, 2021 4:39 PM

US Sanctions versus Iran’s fight against COVID-19 pandemic

Iran is the hardest-hit country by the coronavirus pandemic in the middle east. The contagion was first detected on 19 February 2020 in the holy city of Qom, and thereafter spread quickly across the country. As of 18th June 2020, it had over 9000 coronavirus related fatalities. The virus attacked all the 31 provinces of the country not discriminating between the common man and the people at high places including the members of the Parliament, religious leaders and senior ministers. The crisis touched most parts of the country, but it most severely impacted working and the poor class. 

The Iranian government has been criticized for its response towards the pandemic. The health care policy, which has been politicized, has preferred denial and misinformation as a response to the crisis the pandemic brought with it. Questions have also been raised about the role of US sanctions in crippling Iran’s economy, public health facilities and public health facilities. All these factors, when combined, have disabled Tehran (the capital of Iran) from providing the best response to the pandemic. 

What do the sanction laws say?

According to the Office of Foreign Assets Control, the US has “consistently maintained broad exceptions and authorizations to support humanitarian transactions with Iran.” The first significant sanctions were imposed in 1995 by Bill Clinton, and in 2001 exemptions for medical goods and medicine first came into effect. These sanctions have periodically widened the scope of products for exemption, and by 2012, the exclusions included agricultural products and most foods. After the world powers, including the US, reached a deal with Iran on its nuclear programme in 2015, the sanctions were lowered against Iran. This approach was abandoned after Trump withdrew the US from the deal and sought to force Iran’s leaders to change their anti-US policy. .

The US sanctions are enforced through a wide array of instruments. Financial sanctions prohibit US banks from transacting with Iran, which limits Iran’s access to dollar-denominated transactions. Secondary sanctions measures also target non-US entities that have dealings with Iran, thus at a risk of facing prosecution in the US. These sanctions make transactions with Iran lengthy and complicated, and even impossible in some cases

There are some exemptions from sanctions for humanitarian assistance (sale of agricultural commodities, food, medicine and agricultural services). Despite these exemptions, sanctions have severely impaired Iran’s ability to be able to finance humanitarian imports. Given the volume of complexity and due diligence involved, most banks are reluctant to deal with Iran. This makes it difficult to find a way to pay for purchases difficult for Iran. Also many items require additional authorization because the US considers them as “dual-use” (the things might also be used for defence- for example, the sort of oxygen generators that are needed in life support machines used to treat coronavirus cases). Lastly, the sanctions on Iran’s oil exports led to a decline in revenue, further weakening Iran’s currency, which has left the country vulnerable and with fewer resources to pay for non-sanctioned items as well. 

All these put together have directly caused shortages of medical equipment and impacted Iran’s health sector negatively. This has also impacted the capability of Iranian healthcare sector to effectively manage the COVID-19 situation.

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