LOOK EAST POLICY (1992)

LOOK EAST POLICY (1992)
LEP was launched in 1992 just after the end of the Cold War, following the collapse of the Soviet Union. After the start of liberalization, it was a strategic policy decision taken by the government with regard to its foreign policy. In the words of Prime Minister Dr. Manmohan Singh "it was also a strategic shift in India's vision of the world and India's place in the evolving global economy".
Reasons for Indias past neglect of Southeast Asia:

1. Indias colonial links

2. Indias ruling elite had an essentially Western orientation and thinking in the post-1947 period.

3. Economically, due to the fact that this region was less developed than India until the 1970s Southeast Asia was not an attractive trading and economic partner.

4. Indias own economic policies were insular and protectionist.

5. India has since realized that its perceptions about this region were flawed.

6. India and the Southeast Asian countries were on opposing sides of the Cold War divide.
Why India launched LEP?
After the Sino-Indian War of 1962, China and India have been strategic competitors in South East Asia. China has cultivated close commercial and military relations with India's neighbor and rival Pakistan and competed for influence in Nepal and Bangladesh. When Deng Xiaoping's came to power in China in 1979, China began reducing threats of expansionism and in turn cultivated extensive trade and economic relations with Asian nations. China became the closest partner and supporter of the military junta of Burma, which had been ostracized from the International community following the violent suppression of pro-democracy activities in 1988.
India's "Look East" policy was developed and enacted during the governments of prime ministers P.V. Narasimha Rao (19911996) and Atal Bihari Vajpayee (19982004). Along with economic liberalisation and moving away from Cold War-era policies and activities, India's strategy has focused on forging close economic and commercial ties, increasing strategic and security cooperation and the emphasis of historic cultural and ideological links. India sought to create and expand regional markets for trade, investments and industrial development. It also began strategic and military cooperation with nations concerned by the expansion of China's economic and strategic influence.
Fundamental objective of Look East Policy (LEP):

1. During the cold war era all the South East Asian countries started to follow Americas cold war politics and military organistation.

2. Hence all the South East Asian counties form a regional organistation known as Association of South East Asian Nations (ASEAN) as China, Japan and Singapore raises its power individually.

3. As a result by 1990s China and America started to influence its development in the South East Asian countries. China involves in Burmese military, economic and political aspects.

4. As a result, South and South East Asian countries become globally central economic power.
Political objective of LEP:

5. As India wanted to play an active role in the emerging ASEAN politics as a great power to counter the China as a balance of power.

2. China factor is a major push factor for India to formulate LEP
Economic objective of LEP:
In the 1990s South East Asian region has been obtaining global economic reforms. Some of the market reforms that India started during that period are:

1. To increase economic growth rate

2. Liberalization of the economy polices in order to attract FDI more into the region

3. To sell more goods in other country

4. Active role in South East Asian region to cultivate or develop more economic relations in order to increase the Indias economic growth rate.
Have the objectives of LEP been achived?
Since the early nineties, there is a increase in the cooperation on all fronts between India and South East Asian region. When India became a nuclear power in 1998, major powers like United States, Japan and many other countries sat up and took note of this important development. ASEAN wanted closer ties with India to balance the influence of China. Singapore played a particularly important role in creating awareness of Indias strategic importance. Significant efforts are done to build good relations with the Southeast Asian countries, but the overall balance sheet during this period is satisfactory.
Why has India failed to utilize its diaspora in Southeast Asia when China has been very successful on this front?
Compared to the Indian diaspora, the Chinese diaspora in Southeast Asia is much larger, very prosperous and controls significant sections of the economy. It therefore carries considerable clout in Southeast Asia. Indian diaspora is different. Historically, the first Indian immigrants were from the lower strata of society, who were taken from British India to work mostly as plantation workers and agricultural laborers. Similarly, the Indian diaspora in Myanmar is also disadvantaged due to their historical collaboration with the British colonial rulers to rule over Burma. Therefore, India has benefited less than China has from their respective diasporas in Southeast Asia.
What is Chinas role in Southeast Asia and how is it affecting Indias Look East Policy?
China does not favour a strong Indian presence and influence in Southeast Asia. China is aware of the various cultural and spiritual ties that India shares with Southeast Asia, which could naturally attract the two regions to come closer. China knows that India is the only country that could possibly challenge its ascendancy and potential hegemony in Asia, and therefore it makes sense for China to try hard to keep India under pressure. Traditionally, China has been very dismissive of India, which it treats as a mere South Asian player. However, over the last decade or so, the Chinese have been puzzled and intrigued by the steady rate of Indias economic growth and its political stability. So they have no option but to take India more seriously.
Relationship with China:

* While India and China remain strategic rivals, India's "Look East" policy has included significant rapprochement with China.

* Since 1993, India began holding high-level talks with Chinese leaders and established confidence-building measures.

* In 2006, China and India opened the Nathu La pass for cross-border trade for the first time since the 1962 war.

* China's close relations with Pakistan, skepticism about India's annexation of Sikkim, and Chinese claim over Arunachal Pradesh have threatened the improvement in bilateral relations.

* The recent signing of Border Defense Cooperation Agreement would help India to boost ties with China and also it would help each other to country to solve the long standing border issues.

* The conflict between India and China over the South China Sea has been building for almost two years. In October 2011, India signed an agreement with Vietnam to expand and promote oil exploration in the South China Sea. Vietnam, meanwhile, relied upon the 1982 UN Convention on the Law of the Sea to claim its sovereign rights over the two blocks.
What is the role of NER (North Eastern Region) in Indias LEP:

* Before the launch of LEP India never had a concrete strategy to create an economic hub in its North Eastern Region by exploring the trade and commerce prospects with its ASEAN neighbors.

* Initially, when India launched this policy, the thrust was not set toward the geographical proximity between its NER and Southeast Asia.

* Due to the lack of adequate physical connectivity between Indias Northeast and Southeast Asia is one of the most important factors that hindered the possibilities of developing the regional economic development in this region.

* Myanmar was admitted into ASEAN as full member in 1997, so the development of physical connectivity between NER and Southeast Asia is a prerequisite to utilize the opportunities provided by LEP.

* For the development of NER it is necessary to enhance connectivity infrastructural development like land routes, railways, air connectivity, waterways, energy infrastructure development both in field of hydroelectric and hydrocarbon and telecommunication linkages.

* The important ongoing and potential infrastructure projects in this regard are Moreh-Tamu-Kalewa Road, India-Myanmar-Thailand Trilateral Highway, Trans Asian Highway, India-Myanmar rail linkages, Kaladan Multimodal project, the Stilwell road, Myanmar-India-Bangladesh gas and/or oil pipeline, Tamanthi Hydroelectricity project and optical fiber network between Northeast India and Southeast Asia.
Indias defence ties with ASEAN:
India is steadily increasing the defence ties with South East Asian region through the following ways:

1. regional confidence-building and cooperation mechanisms like

1. the ASEAN Regional Forum (ARF),

2. the Regional Cooperation Agreement on Combating Piracy and Armed Rpbbery against Ships in Asia (ReCAAP) and

3. the MILAN exercises that India holds every alternate year.

2. India is also bilaterally engaged with the ASEAN countries, as well as Japan and South Korea. Areas of cooperation include

4. joint or coordinated naval patrolling,

5. fighting piracy and other maritime security threats, and

6. military, air and naval exercises.

3. Maritime security has become an important priority for India in the light of the frequent terrorist attacks all over the India.
Why Bangladesh and Myanmar is important to India from LEP point of view:

Unfortunately both Bangladesh and Myanmar share the Indias border with the North Eastern Region of India. Since the time of independence India has shown its negelence towards the infrastructural development in the North Eastern Region (NER) of India. But for the overall development of NER India has to maintain good relations with both the neighbors Bangladesh and Myanmar. So India should invest more money in Bangladesh and Myanmar. If India can give US$1.2 billion to Afghanistan, which isnt even one of our immediate neighbors, Myanmar and Bangladesh, which are much larger countries, should each get at least the same amount. There is a need to cooperate with both countries on water, energy, transport, drug trafficking, illegal migration and infrastructure and also Regional economic integration. In fact, the Northeast Region, Bangladesh and Myanmar form an integrated whole. Before 1947, the area was thriving but it has now fallen behind and is one of the most undeveloped parts of South Asia. There needs to be more Indian investment in projects in Bangladesh and Myanmar, but this investment should be in projects that are seen as bringing primarily local benefits.
Political relationship between India and ASEAN:

1. The Vision 2020 document makes it clear that the long-term economic development of the Northeast will be achieved through private sector investment.

2. ASEAN admitted India in 1993. Politically, today India is treated as a great and equal power in ASEAN in its associated group.
Example:

1. ARF (ASEAN Regional Form)

2. ASEAN+1
ARF (ASEAN Regional From):

3. Established in 1994

2. Key forum for security dialogue in Asia.

3. It draws together 27 countries [10 ASEAN member states (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam), the 10 ASEAN dialogue partners (Australia, Canada, China, the EU, India, Japan, New Zealand, ROK, Russia and the United States), one ASEAN observer (PNG) as well as the DPRK, Mongolia, Pakistan, Timor-Leste, Bangladesh and Sri Lanka] which have a bearing on the security of the Asia Pacific region.

4. It is an intergovernmental forum to discuss all security issues.

5. India along with ARF organized joint naval exercise
ASEAN+1:

3. Annunal summit held by ASEAN

2. Every year ASEAN will invest in one country if it thinks that country is important to it in all aspects

3. China and Japan are also allowed in this summit.

4. India is allowed in this summit in 2001.
Indias relationship with East Asian Countries:
Singapore:

* Called as mother hen of Asia

* Described as hub of ASEAN economy

* INA (India National Army) headquarter was also based in Singapore. During postcolonial period large number of INA volunteers from India preferred to stay back in Thailand and Singapore.

* Singapore is economically forward because of economic reforms imitated by the former Prime Minister Lee Quttien.

* Port infrastructure is a key for foreign investment in Singapore.

* Political relationship:

* From 1992, till now Singapore is a supporter of Indias involvement in ASEAN in all the sectors like economic, cultural and even in military level also.

* Singapore is the first country to support India to join ARF.

* Singapore also supported India to join ASEAN+1 even though China and Indonesia are against India to join ASEAN+1.

* Economic relationship:
Indias trade with Singapore, which accounted for nearly $ 44 million in the past rose to $ 1.5billion in 1992 and is increasing at the rate of 10 per cent per year. India imports engineering goods, oil rigs, palm oil, organic chemicals, glass and telecommunication equipments and exports textiles, spices, fodders, inorganic chemicals, jute, fruits and vegetables.

* Comprehensive Economic Cooperation Agreement (CECA):

* Concluded in June 2005

* The CECA with Singapore was the first such agreement to be signed by India with any country.

* It integrates agreements on trade in goods and services, investment protection, and economic cooperation in fields like education, intellectual property and science & technology.

* It also provides Mutual Recognition Agreements (MRAs) that eliminates duplicative testing and certification of products in sectors where there are mandatory technical requirements.

* Reason for mutual support:

* Because of its size

* It is surrounded by China and Japan

* Geo strategic importance on India

* In real estate and IT Singapore and ASEAN countries are interested in investment and development of infrastructure in India.

* Singapore is the only country which India has given its naval base port

* Singapore is also given vizag port for its air facility
Japan:

* It is also called as pacific/ East Asian Country/ far-East country.

* Year 2007 is declared as year of India in Japan by Japanese government.

* Japan is the third largest economy in the world

* Japan attacked British India in 1942 and occupied North Eastern Region

* It is insecure country as it has no standing army (meaning: only civilian police to maintain law and order and there is no battalion force)

* Partnership is based on five pillars of cooperation viz., Political, Defence and Security Cooperation; Comprehensive Economic Partnership; Science & Technology Initiative; People-to-People exchanges and cooperation in Regional/Multilateral fora.

* Strategic partnership agreement:

* Signed in 2000

* Reason for signing the agreement:

1. The growing economic and military power of China

2. Regional instability due to the growth of international piracy

3. The North Korean threat (nuclear testing, ballistic missile launches, technology transfers to Pakistan with whom India has a tense relationship).

* A very important step in strengthening bilateral relations was the introduction of the 2 +2 mechanism for strategic cooperation (involving the ministers of foreign affairs and defense), and regular meetings of senior staff of these ministries.

* The rapprochement of the two countries has also been aided to a large extent by a policy initiated by Indian Prime Minister Manmohan Singh, focused on the development of relations with the countries of East Asia (Look East Policy). This convergence acquired particular significance when India and Japan joined together with Brazil and Germany to form the G 4 a union of four countries wishing to obtain a permanent seat on the UN Security Council.

* Civil nuclear agreement

* India is interested in Japanese civil nuclear technology and plans to build 18 nuclear power plants by 2020, counting on Japanese companies to assist in this endeavour.

* At present, negotiations are actively proceeding to conclude an agreement between the two countries on cooperation in peaceful uses of nuclear energy and joint action in the field of nuclear safety.

* Given the fact that India has not joined the Treaty on Non-Proliferation of Nuclear Weapons, has not stopped its nuclear testing program and possesses nuclear weapons, the prospects for further cooperation between the two countries in nuclear energy depend to a large extent on India soon signing and ratifying the Comprehensive Nuclear Test Ban Treaty.

* India has been insisting that its non-proliferation record is impeccable enough to warrant an agreement, but Japan wants India to honour its promise - to impose a ban on further nuclear tests - made in the run-up to the waiver the Nuclear Suppliers Group (NSG) granted it for doing trade in atomic energy.

* For the energy-starved India, an agreement with Japan is important because Japanese companies have a virtual monopoly over the supply of reactor vessels, a critical component of civil nuclear plants.

* Economic relationship

* CEPA (Comprehensive Economic Partnership Agreement)

* A type of Free Trade Agreement (FTA)

* Signed in February 2011 and entered into force in August 2012

* This agreement will allow for bilateral trade to reach $25 billion by 2014, up from $4 billion in 2002 and $15 billion in 2011.

Indonesia:

* India with its Look East policy decided to substantially enhance its presence in the region, while Indonesia took the lead in bringing India closer to the ASEAN. The changing strategic landscape of Asia during the post-Cold War era has broadened the canvas of Indias engagement with Indonesia.

* Indonesia is an important source of energy and raw materials for India. Bilateral trade is expected to breach the $20 billion benchmark by 2015.

* Indian investment is spread across a range of areas including banking, mining, oil and gas, iron and steel, aluminium, IT, textiles and telecommunications.

* In 2005 two countries signed the strategic partnership agreement and in 2006 a defence cooperation agreement was announced.
Vietnam:

* Bilateral ties between India and Vietnam have strengthened in recent years with a focus on regional security issues and trade.

* Bilateral trade has also grown since the liberalisation of the Indian and Vietnamese economies, with the trade volume exceeding US $2 billion in 2012, present around $2.7billion and it is targeted to reach $7 billion by 2015.

* Vietnam has sought Indian help in the modernization of its military hardware.

* Naval cooperation between Vietnam and India remains a focus, with Vietnam granting India access to the port of Nha Trang, situated close to the strategically significant naval base at Cam Ranh Bay.
Malaysia:

* Malaysia has supported an Indian presence in ASEAN, and in 2001 also accepted Indias position that the Kashmir issue should be resolved only through bilateral negotiations between India and Pakistan.

* Both the sides have decided to work together to secure the Malacca Straits, and Malaysia has requested Indian help in protecting the Straits from emerging non-traditional security threats in the region.

* Chinas claims over the Spratly Islands remain a source of anxiety for Malaysia.
BIMSTEC:

* Established in 1998

* BIMSTEC is a sub-regional economic grouping involving Bangladesh, India, Myanmar, Sri Lanka and Thailand.

* This is the first grouping of its kind in which two ASEAN partners have come together with three South Asian Countries for economic cooperation.

* Important areas of cooperation: communications, infrastructure, energy, trade and investment, tourism and fisheries

* Important projects under consideration: Asian Highway Link, Asian Railway Network and a Natural Gas Pipeline Grid. Constituted on the Bay of Bengal Rim,

* Aims at tapping the vast potential of resources, both natural and human in this sub region.

* The primary emphasis is on the exchange of views on sectors such as textiles and clothing, drugs and pharmaceuticals, gems and jewelleries, horticultural and floricultural products and information technology.

* A BIMSTEC chamber of commerce and industry was established and decided that there would be annual meetings of BIMSTEC Economic and Trade ministers to follow up on the implementation of economic cooperation initiatives.

* A BIMSTEC Senior Economic Officials Committee (SEOC) was also established.

* The responsibilities for the various sectors identified for cooperation were delegated amongst the five countries, as follows:
Bangladesh - Trade and investment
India - Technology
Thailand - Transport and Communication
Myanmar - Energy
Sri Lanka - Tourism and Fisheries.

* Five sectors for future cooperation and they were the following:

1. Commodities such as rubber, tea, coffee, coconut and spices.

2. Automotive industries and parts thereof.

3. Processed food.

* The BIMSTEC meeting in Myanmar in December 2001 emphasised the desirability of strengthening linkages among the think tanks of the member countries. They also agreed to explore external financing of Mekong-Ganga Co-operation (MGC), a programme of action involving India and Indo-China states.

* MGC involves India with five ASEAN countries, namely Cambodia, Laos, Myanmar, Vietnam and Thailand. It is endeavoured to build a road linking Thailand to India through Myanmar.

* MGC wants to go a long way in developing the infrastructure for transnational trade involving Indias northeast border, Myanmar, Mekong region and beyond. Located between India and China, Mekong region is very important for Indias security, peace and trading with East Asian countries.

* The first India-ASEAN Summit, which took place at Phnom Penh in November 2002, had focused attention on relations with the countries in the Mekong region. India extended $ 10 million credit to Cambodia and signed three agreements in the areas of trade, technical education and maintenance of the 1000-year-old Tam Pram Temple.

* India also accorded/ granted greater tariff concessions to Myanmar, Laos, Vietnam and Cambodia. It was considered as an important gesture towards the ASEAN.
by Sushant Kumar Sinha
List of references:

* http://www.ipcs.org/pdf_file/issue/SR85-SEARPInterview-Sikri1.pdf

* http://carnegieendowment.org/2013/02/26/six-reasons-for-india-to-look-east/fktk

* http://pmindia.nic.in/press-details.php?nodeid=271

* en.wikipedia.org/wiki/Look_East_policy

* http://www.dfat.gov.au/arf/

* http://journal-neo.org/2013/08/26/rus-strategicheskoe-partnerstvo-mezhdu-indiej-i-yaponiej/

* http://www.idsa.in/idsacomments/IndiaJapanStrategicPartnership_rnayan_110613

* http://www.thehindu.com/news/international/south-asia/several-issues-hold-up-civil-nuclear-deal japan/article5122154.ece

* http://www.aii.unimelb.edu.au/sites/default/files/China%20Nadia.pdf