Economic clout spells respect: embrace free trade to sell nationalism.

The diplomatic disaster surrounding last week's visit of the British monarch has added a sour note to India's dealings with the West. Though much of the bitterness was man-made and not issue-related, similar tensions look like being recreated during the visit of Thomas Pickering, the US under secretary of state for political affairs. At the heart of the problem is international concern over Indo-Pakistani tensions on Kashmir and India's continuing reluctance to oblige the West on non-proliferation. India feels that Kashmir is an internal matter of the subcontinent that can, at best, be resolved through bilateral negotiations with Pakistan, without any larger international involvement. Since bilateralism has become one of the holy cows of foreign policy, alternative perspectives are perceived as arrogant intrusions upon national sovereignty. The patriotic credentials of any political leader willing to negotiate this principle are automatically called into question.

Responsible opinion in the country knows that this state of affairs cannot continue indefinitely. If India is not to appear obdurate in western eyes, it must either be seen to be flexible or far too important for niggling local conflicts to mar its international role. Unfortunately, neither is the case today. The globalisation of the vast Indian market that could have deterred the West from pressing too hard with strategic issues has proceeded imperfectly. Despite having signed up for the World Trade Organisation, India constantly gives the impression of being a difficult member. Its approach to international trade remains wedded to doctrines of non-reciprocity. Perhaps it is time to learn a lesson or two from China. Beijing too is resolute in its defence of national sovereignty in strategic matters. However, the West can stomach this show of nationalism because it is accompanied by China's unflinching commitment to free trade. When people trade, they gloss over politics. India should realise this.

Marxist Myopia

In pandering to the farmers' lobby, the Left is serving populism--not India.

For a fringe group essentially limited to three states, the Indian left is extraordinarily self-important. This phenomenon would perhaps evoke satire were it not currently undermining economic reform. In sum, the CPI(M) and CPI are holding to ransom the United Front (UF) government by a cussed refusal to allow further streamlining of economic policy. Ministerial trade unionism led to an unprecedented increment in the government's wage bill. The bill designed to liberalise the insurance sector lies a dead letter. More recently, the CPI(M) criticised the UF regime for not fulfilling populist promises. Almost simultaneously, Chaturanan Mishra of the CPI flew off the handle when the agriculture Ministry he heads was pulled up for administrative laxity. He accused P. Chidambaram, the finance minister, of an "anti-farmer policy" and threatened resignation. There is little new or credible in Mishra's arguments. Yet, the damage that irresponsible rhetoric is causing seems to be of no concern to the leftist segment of the ruling coalition.

It is politicians such as Mishra who serve to destabilise the fiscal system. The ongoing farmers' agitation in Haryana which has taken its toll of human lives and public property, is an inevitable corollary. Being demanded are free electricity and other facilities. Unfortunately, the Akali Dal and Telugu Desam have come to power in other states by promising such benefits. That there is a rich farmers' lobby which operates across party lines -- Balram Jakhar is its leading advocate in the Congress -- and grants itself undue tax and tariff concessions is clear. What is mystifying is that even the Marxists are voicing similar sentiments. That power brings responsibility is an old adage in politics. Impetuous Mishra and his fellow communists -- and crypto-communists in other parties -- realised its verity.

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