Tag Archives: NAFAC

Asia-Pacific

A Balancing Act: U.S. and the Cross-Strait Relation

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NAFAC Week

By Jenny Chau Vuong

A growing China is shifting the balance of power in East Asia. The question remains: Should the U.S. engage or contain China’s rise? Containing a country of 1.3 billion people will be a costly option, economically and militarily. Joseph Nye at Harvard University warns that if the U.S. continues to treat China as the enemy, then they are certain to have an enemy.1 Thus, it is in the United States’ best interest to pursue positive relation with China.

One of the most pressing issues that stands between the U.S.-China relation is Taiwan. Reunification with Taiwan is deeply rooted within Chinese nationalism, and many see the island as stolen land that needs to be returned to China. On the other hand, with a growing national identity and political differences, Taiwan aims for independence. There are three most likely outcomes in this conflict: Taiwan declaring independence, maintaining the status quo, or reuniting with China. In order to maintain positive relation with China, the U.S. should not bolster Taiwan’s confidence to declare independence.

Cross-Strait Relation: War as a Last Resort

China is bent on reunification because it is essentially their unfinished civil war. Zhu Bang Zao, the spokesperson for the Chinese Foreign Ministry, made their stance very clear: “Taiwanese independence is equal to war.”2 Zhu reaffirms that China wants a peaceful solution to reunify with Taiwan. For that reason, they are patiently relying on the forces of economic integration.

At the same time, the survey conducted by National Chengchi University in Taiwan reports that 80 percent of the respondents prefer the “status quo”3 in relation with China; however, Taiwanese are not willing to pursue independence at all cost. When asked to choose either establishing formal independence or maintaining economic ties with China, 83 percent chose the latter. It is clear that although both parties articulated different futures for Taiwan, neither want an armed conflict. The commitment to a nonviolent solution forces both Taiwan and China to operate within a gray area of quasi-independence. It is not the U.S.’ job nor is it in the U.S.’ interests to define that gray area. U.S. military intervention could ignite a global conflict and push China to be more aggressive than it actually is.

The U.S. Role in the Cross-Strait Relation

Until now, the U.S.’ stance towards Taiwan is best described as a balance of optimism and realism. The United States accepted the One China policy but signed a treaty to defend against Chinese military aggression. Deputy Secretary of State Antony J. Blinken stated that Taiwan “showed the world what a mature, Chinese-speaking democracy looks likes.”4 The U.S. hopes that this beacon of democracy can influence China’s transformation. That is also the exact reason why China is fixed on reclaiming Taiwan – Taiwanese independence threatens the current regime. Despite the admiration, the U.S. is not committed to going to war with China over Taiwan, and for good reasons. Thus, the U.S. should not bolster Taiwan’s confidence by overpromising and underdelivering in the future.

In the foreseeable future, it will be difficult for Taiwan to obtain full independence based on recent trends. Taiwan’s economy has become deeply intertwined with China in the past 15 years. The British Office reported that in 2015, China absorbed around 30 percent of exports, making it the largest trading partner for Taiwan.5

Additionally, China is said to be capable of launching a military invasion by 20206, but that does not mean that they will. Furthermore, China’s actions are consistent with its commitment to a nonviolent solution in Taiwan by adopting the Nuclear No-First-Use policy and relying on the slow but steady economic integration. As Erik Eckholm, Beijing bureau chief for the New York Times states, “the number one principle – if you are a Chinese leader – is not that you have to regain Taiwan in the next five years. It’s that you can’t lose Taiwan.”

Currently, Taiwan spends less than 2 percent of their GDP on military spending.7 Thus, the small island will be relying on foreign powers to come to its defense. If Taiwan, convinced of U.S. support, declares independence, this will lead to war with China. There are two paths with one likely outcome. One, the U.S. fails to come to Taiwan’s defense, and China invades Taiwan, forcing reunification under Chinese terms. In this outcome, the U.S. will lose credibility among allies in the region, and it can cause China to become more belligerent. Two, the U.S. enters the fight to protect Taiwan, draws in the rest of the world, and starts another global conflict. No matter the victor of the war, Taiwan’s economy and infrastructure will be destroyed. It will break the U.S.-China relation, causing an economic slowdown in the global economy. Considering the consequences, the two countries are dedicated to peaceful solution, and the U.S. should follow suit.

In the meantime, the U.S. should avoid instigating aggression from the Chinese towards Taiwan. The U.S. should honor the Taiwan Relation Act in 1979 and promote diplomatic, cultural, and economic exchange; however, the U.S. must not directly engage in armed conflict with China. The U.S. can continue helping Taiwan maintain the status quo by selling weapons and expanding trade treaties. Taiwan has some time to build up their defense and economy to stand on equal footing with China, giving Taiwan more power when negotiating with China about how to define the gray area.

This strategy allows the U.S. to maintain a salvageable relationship with China without completely abandoning Taiwan. The U.S. can rely on regional allies to develop a check against Chinese power by strengthening defense treaties and diplomatic ties. If China throws their weight around, it will naturally encourage check and balance behavior from their neighbors. But without U.S. presence in the region, they are likely to jump on the Chinese bandwagon.

Conclusion

As China grows stronger, it will be more difficult for Taiwan to gain independence. The cost of defending Taiwan will also increase for the United States. The best scenario for Taiwan would be to accept the one country, two systems policy, while negotiating for better terms. The United States’ presence plays a large role in helping Taiwan maintain the status quo. But recognizing that the island’s de facto rule will not last forever, the United States needs to be prepared to lose Taiwan or fight China. Both economies will suffer greatly in an armed conflict. Thus, maintaining good relations with China is a better outcome for everyone. However, losing Taiwan doesn’t mean the U.S. will lose their foo hold in East Asia. As long the U.S. focuses on strengthening ties with regional countries, the U.S. can still plant its feet firmly in East Asia.

Born to Chinese parents in Vietnam, Jenny Vuong naturally developed an interest for international affairs. At the University of California Irvine, Jenny is the student ambassador in the Dean’s Council for the School of Social Sciences. She is also the Resident Advisor to the freshmen Global Perspectives hall. During her second year, Jenny studied abroad in South Korea for a year, where she interned for People for Successful Corean Reunification Organization (PSCORE). In Fall 2017, Jenny will study abroad again in Yokohama, Japan. She is looking to pursue a Ph.D. in international relations with a focus in East Asia. In her free time, Jenny enjoys cooking, learning new languages, and playing tennis.

Bibliography

114th Congress, 2d sess. “Reaffirming the Taiwan Relations Act and the Six Assurances as Cornerstones of United States-Taiwan relations.” Congress. 17 May, 2016. Web. 28 Mar. 2017.

Bang-Zao, Zhu. ” Why the Taiwan Issue is so Dangerous.” Interview. PBS. September 2001.

Keck, Zachary. “China Can Attack Taiwan by 2020, Taipei Says.” The Diplomat. 9 Oct. 2013. Web. 29 Mar. 2017.

Lin, Adela, and Ting Shi. “Taiwan Plans Military Spending Surge to Counter Rising China.” Bloomberg. 16 Mar. 2017. Web. 29 Mar. 2017.

Nye, Joseph. “Only China Can Contain China.” Huffington Post, 2014.

Taiwan Economy: 2016 Q1. Report. British Office. May 24, 2016. Web. 28 Mar. 2017.

Wang, Austin Horng-en, Brian Hioe, Fang-Yu Chen, and Wei-ting Yen. “The Taiwanese see themselves as Taiwanese, not as Chinese.” The Washington Post. January 02, 2017. Web. 29 Mar. 2017.

1. Nye, Joseph. “Only China Can Contain China.” Huffington Post, 2014.

2. Bang-Zao, Zhu. ” Why the Taiwan Issue is so Dangerous.” Interview. PBS. September 2001.

3. Wang, Austin Horng-en, Brian Hioe, Fang-Yu Chen, and Wei-ting Yen. “The Taiwanese see themselves as Taiwanese, not as Chinese.” The Washington Post. January 02, 2017. Web. 29 Mar. 2017.

4. 114th Congress, 2d sess. “Reaffirming the Taiwan Relations Act and the Six Assurances as Cornerstones of United States-Taiwan relations.” Congress. 17 May, 2016. Web. 28 Mar. 2017.

5. Taiwan Economy: 2016 Q1. Report. British Office. May 24, 2016. Web. 28 Mar. 2017.

6. Keck, Zachary. “China Can Attack Taiwan by 2020, Taipei Says.” The Diplomat. 9 Oct. 2013. Web. 29 Mar. 2017.

7. Lin, Adela, and Ting Shi. “Taiwan Plans Military Spending Surge to Counter Rising China.” Bloomberg. 16 Mar. 2017. Web. 29 Mar. 2017.

Featured Image: Supporters of Taipei’s mayoral candidate from Taiwan’s ruling party, the KMT, wave flags during a campaign stop on Oct. 26, 2014. (SAM YEH/AFP/GETTY IMAGES)

Current Operations, Middle East

Multinational Corporations in the Oil Industry

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NAFAC Week

By Monica Sullivan 

Diplomacy is not only a function of the military and the federal government, but it is very much an integral facet of multinational corporations. The diplomatic agenda pushed by American multinational organizations is one focused on building trust between nations as a way by which to further national security aims. Additionally, the spread of American businesses overseas allows for the introduction of business ventures into areas otherwise untouched by basic capitalist ideas. Since American multinational corporations are predominantly apolitical forces, their primary purpose is not to force a political agenda, as seen in other diplomatic outlets. However, multinational corporations still have the abilities to introduce other countries to the basic tenets of American democracy through the business interactions that take place. Due to the extent of interactions between American multinational business and other countries, these businesses are one of the most important outlets when it comes to shaping the perception of America abroad. For the scope of this paper, the interactions of American multinational oil companies will be examined. As multinational corporations are involved in the development of foreign infrastructure, their relationships abroad should be considered as a viable alternative for diplomatic action when military and state actors fail.

Within the oil industry, the presence of American multinational corporations have allowed the growth of otherwise improbable relationships and the promotion of U.S. values abroad. The presence of U.S. oil companies in the Middle East have allowed a line of communication to bridge the gap between the starkly different Western and Islamic worlds. American involvement in the Middle Eastern oil prospects began in post-World War I period as American business was eventually permitted under the British mandate. It was evident that U.S. military and economic power would be beneficial as the Middle East was unstable and its future looked to be volatile.1 Since the U.S. became involved in the oil scene in the 1920s, it has only used this connection to strengthen bonds between itself and Saudi Arabia. Despite the inherent benefits attributed to the multinational nature of oil companies, there are some considerable downfalls that must be taken into account.

With the power of oil companies as influential multinational corporation comes the risk associated with such a unique diplomatic tool. Foremost, oil is a constantly dwindling natural resource that doubles as a crucial economic commodity. Since the United States is not a primary source of oil production, it must rely on other foreign oil producers. Any fluctuation in foreign industry can plunge the world into recession. The delicacy of oil dependence in the world is not as apparent as it was during the Arab Oil Embargo of 1973. The sanctions forced upon the U.S. by OPEC as retribution for allying with Israel crippled America’s supply of oil. In turn, this also drove up the price of oil and gasoline to quadruple the price prior to the sanction.2 This crisis demonstrated the power Saudi Arabia derived from its oil production and the United States’ lack of oil control. Although the United States reduced its dependency on Arab oil after this incident, it became apparent the importance of American corporations maintaining viable and open relationships with foreign countries. The economic and military relevance of oil was underscored once more in 2002, as Saddam Hussein used his control of oil processing as leverage during military campaigns. His threats to destroy oil platforms were met with the response of special warfare to ensure that his rogue actions would not cause an economic recession in the midst of the Iraqi conflict.3

Prior to the U.S. invasion of Iraq, American multinational oil corporations were involved in humanitarian aid efforts to try to quell the mistreatment of the civilian population. However, this initiative, known as the Oil for Food program, devolved into an international scandal in which American corporations like Chevron received illegal kickbacks which undermined the goal of transmitting food to a population crippled by United Nations’ sanctions.4 The fact that Chevron was manipulating this program to its benefit demonstrates the possible risks associated with using multinational corporations as means for diplomacy.5 Multinational corporations are subject to the whims of their executives, thereby allowing for their private ethical perspectives to drive the corporation’s representation of American ideals in foreign states. Despite the bad reputations evoked by some multinational corporations, the overall purpose of these businesses is grounded in their desire to spread American interests abroad.

One of the most influential examples of the positive power of multinational corporations is direct advancement of African civilizations in Chad by ExxonMobil. American interests in Africa peaked following World War I, but were overshadowed in the years since, until 9/11. Africa was not of strategic interest to the U.S. until it was determined that it was a breeding ground for radicalized terrorists. Prior to the unfolding of 9/11, ExxonMobil explored Chad as an option for oil extraction. These plans for extraction detailed that how the country was to develop its infrastructure, education, and healthcare through the use of the money received from taxes and royalties from the oil produced.6 By investing in Chad, Exxon-Mobil was able to provide about $4.2 billion dollars of aid, whereas the United States was only providing about $3 million dollars of aid to the area.7 The United States’ positive presence in the area allowed for a smooth transition of American military and state presence in the years following 9/11, as the CIA established stations in the area to monitor and track terrorist cells thought to have been left over from Bin Laden’s time in Sudan during the 1990s. Whereas the military and state was primarily focused on missions regarding terrorist activity, Exxon was involved in turning their business aims into an opportunity for eliminating poverty in the region. The bonds forged between Exxon and the local population prior to the introduction of American operatives in the region made this transition much easier than if Chadians had no prior interactions with American people. This may be just one case study of the impact of the diplomatic power of an American multinational corporation, but it exhibits the mindset of the American business owners to further American ideals abroad. 

Multinational oil corporations do not only have to form relationships with other states, but they have to coordinate with each other. Looking to the future, American oil corporations will be faced with the challenge of competing with Saudi Aramco, the largest multinational corporation in the world. As this one entity has more power than any other American based company, it has the power to bend the U.S. to their will. The question that remains is: How will the American values modeled by multinational corporations abroad continue future diplomatic relations?

Monica Sullivan is a 3/C Midshipman at the United States Naval Academy. She majors in Political Science with a minor in Spanish language. In her free time, Monica enoys singing with the Protestant Chapel Choir.

Works Cited

Coll, Steve. Private empire: ExxonMobil and american power. London: Penguin, 2013.

“Q&A: Oil-for-food scandal.” BBC News. September 7, 2005. Accessed March 31, 2017. http://news.bbc.co.uk/2/hi/middle_east/4232629.stm.

“Chevron to Pay $30 Million to Settle Charges For Improper Payments to Iraq Under U.N. Oil For Food Program.” U.S. Securities and Exchange Commission. November 14, 2007. Accessed March 30, 2017. https://www.sec.gov/news/press/2007/2007-230.htm.

Myre, Greg. “The 1973 Arab Oil Embargo: The Old Rules No Longer Apply.” NPR. October 16, Accessed March 30, 2017. http://www.npr.org/sections/parallels/2013/10/15/234771573/the-1973-arab-oil-embargo-thE-old-rules-no-longer-apply.

Yergin, Daniel. The Prize: The Epic Quest for Oil, Money & Power. London: Simon & Schuster, 2012.

References

1. Daniel Yergin. The Prize: The Epic Quest for Oil, Money & Power. 196

2. “The 1973 Arab Oil Embargo: The Old Rules No Longer Apply.”

3. Steve Coll. Private Empire, 154-176.

4. “Chevron to Pay $30 Million to Settle Charges For Improper Payments to Iraq Under U.N. Oil For Food Program.”

5. “Q&A: Oil-for-food scandal.”

6. Steve Coll. Private Empire, 154-176.

7. Steve Coll. Private Empire, 154-176.

Featured Image: Ed Kashi/Corbis

Middle East

Iran and Saudi Arabia’s Proxy War in Yemen

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NAFAC Week

By Rose Cote

Iran and Saudi Arabia’s struggle for power in the Middle East and North Africa has led to many states becoming involved in their proxy wars. Some states have been left open to their intervention due to a power vacuum, and Yemen is no exception. Since the Houthi rebels’ overthrow of the Saudi allied leader Ali Abdullah Saleh in Yemen, both states have become involved (Malsin 2016). Since their revolution in 2011, the country has suffered from famine as well as airstrikes that have led to high casualty counts, particularly of civilians.

The Iran-Saudi Arabia conflict is often characterized as a religious divide between Shia and Sunni sects of Islam. However, when talking about the conflict in Yemen, it is most important to examine its location and strategic value to each of these states. Both states seek to gain ideological dominance and regional hegemony. This is due to many factors including their oil wealth, relative stability in the region as well as both of their religious sects and being seen as the leader of these sects. While religion is a factor for the conflict, particularly for Iran supporting the Shia Houthi rebels, this conflict is primarily centralized around Yemen’s strategic value for both Iran and Saudi Arabia.

Yemen is of particular strategic value for both states. For Saudi Arabia, Yemen’s proximity makes it concerned about border security. The Saudi-Yemen border is susceptible to infiltration from Al Qaeda in the Arabian Peninsula, a large terrorist group (Reardon 2015). This is one of the main reasons for their concern over the stability of the Yemeni government. This issue has led to their contribution toward propping up the government using ground support and airstrikes (Reardon 2015). But Yemen also sits along vital shipping lanes for Saudi Arabia in the Red Sea (“The Sunni…” 2016). Given that the Saudi economy relies heavily on oil and the safety of these routes, its interests rely heavily on the security of trade and its borders.

Additionally, they see Yemen as an easy target for Iran to take hold of in the Gulf region (Reardon 2015). Saudi Arabia currently holds hegemonic power in the Gulf region and it is concerned about the loss of this soft power given its intervention in states like Yemen and Bahrain. However, Yemen can be considered more easily controlled given its extreme instability. Iran has an easy path into the role of Yemen through common faith with the Houthi rebels. Iran seeks to find a solid foothold in the Gulf and Yemen is a good candidate because of the rebels’ strength. By propping up the rebels and joining with them based on their common sect of Islam they could potentially hold ground close to Saudi Arabia and use it as a bargaining chip in the future.

Religion certainly does still play a role in this conflict and is fuel for the fire but it is not the only source of tension. The Houthis are a Zaydi Shia militia and while this is not Iran’s brand of Shia Islam, they have chosen to align themselves with this group (“The Sunni…” 2016). Although this link is less strong than the Saudi’s pledge to the Yemeni government, both states have chosen opposing sides. Iran may be less involved in the conflict, financially and militarily, but more importantly, Saudi Arabia believes that Iran is backing the rebels to secure Shia hegemony and so prompts much of their involvement (“The Sunni…” 2016). While both countries are linked to the conflict by religion, they both have more stakes in the country than just these ties. Without other strategic value in Yemen, it is likely that these states would not be involved or less involved. Yemen’s location and strategic significance has likely prompted most of the conflict.

Due to Iran’s tenuous connection to the rebels, many have argued that their involvement is minimal and therefore Yemen’s conflict cannot be classified as a proxy war. Even though their connection is not heavily supported financially there is clear ideological support and since Iran’s involvement there has been more support for Iran in the region, threatening Saudi control and prompting their further involvement (“The Sunni…” 2016). Additionally, many have said that Yemen has primarily been a revolution of people given its beginning in 2011 during the Arab spring. Despite this, it was certainly a revolution against Saudi Arabia because of its support of the previous president and Saudi Arabia is keen on maintaining control over this strategic state. Iran saw this revolution as an opportunity to gain another ally in the Gulf and used their connection to the Shia rebels to gain access.

To the outside viewer religion may seem like the primary motivation for both states involvements. In the landscape next to Iran and Saudi Arabia’s various other conflicts, Yemen could be seen as another proxy war between the two rivals. However, Yemen is unique given its strategic location for trade and its vulnerable border shared with Saudi Arabia. Saudi Arabia’s involvement clearly lies in its interest in keeping the Yemeni allied government in power for these reasons while Iran saw the weak state as an opportunity to gain advantage over Saudi Arabia in yet another conflict and used its Shia ties to the revolutionaries to gain access. Therefore, while the religious divide has certainly fueled the desire of both states to be involved in the conflict, each has chosen to be a part of the conflict in Yemen because of its strategic geographic significance in the region.

Rose Cote attends Syracuse University, where she majors in International Relations and Economics. She did a semester abroad in Morocco to study Arabic, and will be joining the Peace Corps to work in Namibia after graduation.

Works Cited

Ighani, Helia. “Managing the Saudi-Iran Rivalry.” October 25, 2016. Council of Foreign Relations. Accessed March 31, 2017. file:///Users/rcote/Downloads/Workshop_Report_CPA_Saudi_Iran_Rivalry_OR.pdf

Malsin, Jared. “Yemen Is the Latest Victim of the Increase in Iran-Saudi Arabia Tension.” TIME. January 11, 2016. http://time.com/4174837/yemen-analysis/

Reardon, Martin. “Saudi Arabia, Iran and the ‘Great Game’ in Yemen.” Al Jazeera. March 26, 2015. http://www.aljazeera.com/indepth/opinion/2014/09/saudi-arabia-iran-great-game-ye-201492984846324440.html

“The Sunni Shia Divide.” February 2014. Council of Foreign Relations. Accessed March 31, 2017. http://www.cfr.org/peace-conflict-and-human-rights/sunni-shia-divide/p33176#!/?cid=otr-marketing_url-sunni_shia_infoguide

Yeranian, Edward. “Yemen Proxy War Adds to Tensions Among US, Iran, Saudi Arabia.” February 6, 2017. VOA News. Accessed March 31, 2017. http://www.voanews.com/a/proxy-war-in-yemen-adds-to-tensions-among-us-iran-saudi-arabia/3707893.html

Featured Image: Shi’ite Muslim rebels hold up their weapons during a rally against air strikes in Sanaa Shi’ite Muslim rebels hold up their weapons during a rally against air strikes in Sanaa, Yemen, March 26, 2015. (Reuters/Khaled Abdullah)

Asia-Pacific

India’s Bid for Global Power in a Multipolar System During Development

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Note: Original title of essay: “Rising in the Storm: India’s Bid for Global Power in a Multi-Polar System During Development.”

NAFAC Week

By Corey Bolyard

India is the most populous democracy in the world with 1.2 billion people and potential for intense economic growth.1 India seeks to protect its regional interests and become more involved in global power politics while balancing the needs of its economy and people. India must engage in economic reform to stimulate development and support an increasingly assertive foreign policy. By engaging in economic reform, India will have the opportunity to develop and exploit its large population and economic opportunity to become a global power in an increasingly multi-polar system, thereby allowing for an ambitious foreign policy permitting India to protect its interests in South Asia and act as the preeminent power in the region.

Economic development is key to India’s global status. Without a strong economy, India cannot provide for its citizens, much less engage in global affairs and find its place in a multi-polar system. India has a GDP of 2.2 trillion USD, but 30 percent of the population lives in poverty, hindering India’s continued growth.2 India’s Prime Minister, Narendra Modi, promised substantial economic reform and introduced the “Make in India,” program in 2014, but the democratic process is slow. “Make in India,” is a nationalistic program that would boost India’s growth from within and improve the manufacturing sector.3 Manufacturing would provide a low-education alternative to India’s waning agricultural industry, but current labor laws stunt this sector, leaving few options for this segment of the population.4 Internal manufacturing would advance domestic development, but requires foreign investment to propel economic growth to a competitive global rate. Part of Modi’s proposed reforms would allow increased foreign investment in sectors such as coal, construction, railways, and multi- and single-brand retail, which would allow India to boost development.5 Many promised reforms are either in progress or incomplete. A demonetization reform took high currency bills out of circulation in late 2016 to curb the black market economy.6 India is in the process of digitization, moving toward a cashless economy, which would help reform tax administration and enhance government revenue.7 Modi’s government has showed a willingness to engage in economic reform despite the difficult process, and must continue to push for economic development driven by external aid and internal growth to elevate India to global leadership in an increasingly competitive global political stage.

India’s vivid democracy plays a key role in its economic advance. India’s citizens are engaged in democracy, with a voter turnout of 66.4 percent in the 2014 parliamentary elections.8 Freedom House, a prominent NGO, denotes India as “Free,” with press and net freedoms as “partially free.”9 Transparency International ranked India 79 in the world in its 2016 Corruption Perceptions Index, with a final score of 40 that tied India with Brazil, Belarus, and China.10 However, there are some concerns for democracy in India. The Human Rights Watch World Report 2017 identifies a lack of accountability for police violence, treatment of religious and ethnic minorities, and the government’s use of sedition and defamation laws to persecute citizens.11 There is growing economic disparity in the country and a history of corruption, perceived and real. India is experiencing major demographic change, and the government’s ability to exploit this positively will determine future capabilities. India is ending a demographic transition and is almost at replacement-level fertility, which can become a great opportunity for India’s pursuit of global status. India’s working class will continue to grow over the next half-century, as the adult population will comprise 68 percent of India’s population in 2035.12 The demographic dividend is an opportunity for India, but does not guarantee growth, as economic opportunities must be available for this large population.13 Several factors India’s government must resolve include educational deficits, high unemployment, and a policy environment conducive to promoting competitive economic development globally.14 Due to India’s complex democracy at the state and federal level, reform and change is slow to proceed. India’s leadership must find a sustainable way to manage its population and economic goals regardless of their form. Through careful management, India’s democracy can succeed in implementing its domestic and economic policies, which will make it possible for India to focus on its foreign policy concerns.

India sees itself as the preeminent power in South Asia, but is dependent on economic growth for global success. India’s foreign policy focuses on improving relationships among South Asian countries with a “neighborhood first” policy through increased trade and aid.15 Economic integration in the neighborhood is low, as interregional trade makes up only five percent of the South Asian Association for Regional Cooperation’s (SAARC) economic activity.16 With higher integration there is less tension and increased trade, giving India more opportunities to enhance its global position. India and China both see South Asia as a sphere of influence, and India is investing in its neighbors as part of a counterbalancing strategy to China, increasing the Ministry of External Affairs 2017 budget by 200 million USD.17 India sees China’s ‘One Belt, One Road,’ initiative as a threat to its economic and political dominance in the region, particularly the creation of a Chinese-Pakistan Economic Corridor (CPEC).18 Tension between Pakistan and India has great potential for conflict. India is the status quo power of the two nations, since it controls most of the disputed territories, has a stronger military, and has greater diplomatic standing, but both nations possess nuclear weapons and high tensions lead to an elevated risk of conflict.19 India is expanding its military capabilities and is the largest defense importer in the world, buying 15 percent of total world exports of weapons in the past five years.20 India has always followed a strategy of non-alignment and openly eschews cooperative alliances, preferring cooperative or bilateral relations for security. India must balance China and Pakistan, as open conflict would be disastrous and Chinese investment can help the Indian economy grow. In the interest of protecting interests and finding a place in a multi-polar system, India must decide if non-alignment is a viable path going forward or if closer relations with nations such as the United States, Japan, and Australia are worth the risk. Reviving quadrilateral dialogue among these four nations may be the logical next step for India’s foreign policy. A “democratic quad” increases India’s soft and hard power capabilities, but could alienate other countries in the region.21 

India’s decisions on economic reform and foreign policy will determine if it remains a developing country or rises to a key place in global politics. The government must find a way to implement economic reform to benefit its demographic dividend. Attracting foreign investment, implementing economic reform, and providing opportunities for its growing population will give India the economic strength to engage in an assertive foreign policy that will help define India’s role as a global leader among competitive powers. India must engage in economic development to support an assertive foreign policy as India navigates changing global power balances to give its people a path forward.

Corey Bolyard attends University of Mary Washington in Fredericksburg, VA where she is majoring in Political Science with a focus in Asian Policy and Regional Security. She is currently working on a thesis concerning China’s “One Belt, One Road” initiative.  Upon graduation, she hopes to work in national security analysis. Her round table paper “Rising in the Storm: India’s Bid for Global Power in a Multi-Polar System During Development“ argues that by engaging in economic reform, India will be able to emerge as a global power, thereby allowing for an ambitious foreign policy to defend and develop its interests in the South Asia Region.

Endnotes

1. “South Asia: India,” Central Intelligence Agency: The World Factbook, Dec. 12, 2016, https://www.cia.gov/library/publications/the-world-factbook/geos/in.html.

2. “South Asia: India,” Central Intelligence Agency: The World Factbook.

3. About Us,” Make In India, accessed March 27, 2017, http://www.makeinindia.com/about.

4. “The Difficulties of Retooling the Indian Economy,” Stratfor, 2016, accessed March 28, 2017, https://www.stratfor.com/analysis/difficulties-retooling-indian-economy.

5. “The Modi Government’s Reform Program: A Scorecard,” Center for Strategic & International Studies, accessed March 28, 2017, http://indiareforms.csis.org/.

6. Mukesh Butani, “State election results: Strong mandate for bold economic reforms,” Forbes India, March 18, 2017, accessed March 28, 2017, http://www.forbesindia.com/article/special/state-election-results-strong-mandate-for-bold-economic-reforms/46329/1.

7. Wade Shepard, “A Cashless Future Is The Real Goal Of India’s Demonetization Move,” Forbes, December 14, 2016, accessed March 30, 2017, https://www.forbes.com/sites/wadeshepard/2016/12/14/inside-indias-cashless-revolution/.

8. “India Voter Turnout,” International Institute for Democracy and Electoral Assistance, accessed March 27, 2017, http://www.idea.int/data-tools/country-view/146/40.

9. “India,” Freedom House, accessed March 27, 2017, https://freedomhouse.org/report/freedom-world/2016/india.

10. “Corruption Perceptions Index 2016,” Transparency International, January 25, 2017, accessed March 27, 2017, http://www.transparency.org/news/feature/corruption_perceptions_index_2016#table. Of all the countries listed in TI’s Corruption Perception’s Index, India is listed in the upper half by rank. With a perfect score of 100, India’s score of 40 is lower than its rank.    

11. “Human Rights Watch World Report 2016: India,” Human Rights Watch, January 12, 2017, accessed March 27, 2017, https://www.hrw.org/world-report/2017/country-chapters/india.

12. KS James, “India’s Demographic Change: Opportunities and Challenges,” Science 333, no. 6042 (July 29, 2011):578, accessed March 29, 2017, doi:10.1126/science.1207969.

13. KS James, “India’s Demographic Change: Opportunities and Challenges,” Science, 578.

14. Ibid., 578-579.

15. “A Defining Rivalry in South Asia,” Stratfor, February 24, 2017, accessed March 28, 2017, https://www.stratfor.com/analysis/defining-rivalry-south-asia.

16. “A Defining Rivalry in South Asia,” Stratfor.

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18. Ananth Krishnan, “India cannot stop Silk Road plan, warns Chinese media,” India Today, March 20, 2017, accessed March 28, 2017, http://indiatoday.intoday.in/story/china-warns-india-cannot-stop-silk-road-plan/1/908010.html.

19. “In India, a Military Strategy Guided by Precision,” Stratfor, October 6, 2016, accessed March 28, 2017, https://www.stratfor.com/analysis/india-military-strategy-guided-precision.

20. “How Losing India’s Business Could Ruin Russia’s Defense Industry,” Stratfor, January 27, 2017, accessed March 28, 2017, https://www.stratfor.com/analysis/how-losing-indias-business-could-ruin-russias-defense-industry.

21. Rohan Mukherjee, “A democratic quadrilateral in Asia?,” Gateway House: Indian Council on Global Relations, March 27, 2017, accessed March 28, 2017, http://www.gatewayhouse.in/a-democratic-quadrilateral-in-asia/. “Democratic Quad” is a colloquial term for quadrilateral dialogue between the United States, Australia, Japan, and India, since all four nations are democracies and share similar security interests in Asia. 

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Featured Image: School children arrive to watch the proceedings of Indian parliament in New Delhi December 7, 2012. (Reuters/Stringer)