Friday, April 06, 2007

India: Future Giant?


India is that enigmatic nation with growing economic muscle. The thing that usually follows economic muscle is a strong military. That is what makes India enigmatic. India’s greatest Asian competitor is close to Super Power status in more than name. That competitor is China.

China has seemed to find that successful formula that has modified its Communism to incorporate Capitalistic principles to make the Red Dragon’s economy explode. The economic explosion has enabled huge strides in militaristic upgrades.

India’s economy is exploding as well. India has chosen a Democratic form of government that leans on Capitalism but has an element of socialism. The enigma is this: I don’t hear anyone talking about India’s emerging military upgrade. Is there an Indian military upgrade?

To keep up with the Jones (China), India must develop a viable military. If India fails in this development no matter how strong the Indian economy is, China will be able to flex its regional hegemonic muscles.

Here is another enigma. Recently
India and America made what appeared to be great strides in getting over political differences. India – oddly enough – was a close friend of the old Soviet Union. Here is the thing. Shortly after India made nuclear deals with America it snuggled back to its old friend Russia. It is as if India does not know which path to follow to strengthen its National Interests.

Now India is pumping its muscles up with an old idea with greater ferocity: Special Economic Zone (SEZ).

SEZ is a concept in which the government utilizes what in America might be called immanent domain. The
SEZ plan takes huge swathes of land with or without compensation and definitely without appeal to develop for foreign investment to create greater tax revenue and create jobs. The problem is these huge swathes of land are ripping the livelihood from Indian farmers and protests have begun in the growing economic giant.

The enigma continues: Entice foreign investment for revenue and jobs, respect land ownership, mixed socialism and capitalism and who to plug into in alliance as a working model?


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