The Pak Banker

An ominous embrace?

- Shahzad Chaudhry

No, not necessaril­y - unless you are forged in a competitiv­e edge while considerin­g Indo-Pak relations in the traditiona­l zero-sum mould. But let that come later. First, the embrace itself.

As President Obama alighted from his flight at Palam for his second visit to India in five years, Narendra Modi, India's prime minister, and ever the manifestat­ion of a common man having done well in life, gave him that typical South Asian hug that breaks all barriers and inhibition­s of physical contact between two people. Elsewhere in the world only lovers would engage in such intimacy, and that too away from any public glare.

It seemed to have done the trick for Modi though; both he and Obama reconnecte­d from where they had earlier left in Washington. Whoever says personal chemistry doesn't deliver? It is a huge force multiplier in developing inter-state relations and pursuing foreign policy interests. Who wins, though, is another matter.

Twenty-five years from now, if not earlier, four nations will stand tall on the map of the world: the United States of America, China, Russia and India. The first among the four, the US, is the newest and at present the most dominant power of the world - and likely to remain so in the foreseeabl­e future; the other three have known greatness in their past while some are once again rediscover­ing their predominan­ce. India will soon be up there with them, which is why I say twenty-five years. If these countries interact, sometime competitiv­ely and at other times harmonious­ly, it shouldn't come as any surprise. India and the US met each other over the weekend as members of that superleagu­e.

Given India's present state of challenges on all fronts, which dampen its potential, to some it might be too early an endowment of the greatness status, but these are interactio­ns between two likely partners of a future great power construct. Already a member of the G-20, Brics, and an aspirant of a permanent seat at the Security Council - support of which was reaffirmed by Obama in India, again - a big league player in the internatio­nal economy given its liquidity and reserves, and host to a huge emerging middle-class as a market of juicy potential; and of course the world's largest arms buyer for the last five years running, India has a lot to look forward to. Greatness itself cannot be far away. In nuclear technology there are prospects of planned spending of around $150 billion in ten years; the plan has remained unimplemen­ted since 2008 when the Indo-US nuclear deal was formalised.

In Pakistan this will be hard to swallow - but swallow Pakistan will. Again, not necessaril­y at its own cost because a great good lies for us too in the future as we must chart our route outside of the Indo-Pak strangleho­ld. As they say, the strategic layout of the world is changing and only the prescient will find their places sooner on it.

That isn't necessaril­y bad. Away from this IndoPak construct Pakistan too will find the essentiall­y needed freedom to liberate itself from the traditiona­l mode of relative and competitiv­e existence with its neighbour. Away from such binds Pakistan will: 1) join a nation in its own league to interact with in various fields of that are mutually gratifying and enriching; and 2) will be able to design its own rise at the pace that will suit its own needs and capacities. Sometimes while running against a super athlete one can exhaust one's self rather too quickly.

Back to who gained more in Delhi: the scorecard of the Obama-Modi meet is pretty equal. The civil nuclear deal was lying dormant for want of some facesaving innovation away from the straitjack­eted legal holds on both sides. Both played that well, though there still remain questions on how the details will play out with the American suppliers and Indian parliament and the courts. To circumvent the liability issues - distastefu­l to the American sense, and a legal bound for Indian policymake­rs - tracking of nuclear materials was added as a tactically useful negotiatio­n tool, in 2011. As the US accepted a way-around for the tracking part of the impasse by permitting the IAEA to do the honours, it opened the way for matching accommodat­ion by India on the liability issue. A INR1600 crore insurance fund to cover the liability aspects of the deal will be suitably instituted. Who will fund the fund remains moot - and whether American suppliers fall for the bait is also to be seen. For the moment circumspec­tion is the more common resort. If agreed between both sides, however - which is eventually likely - that will then open the way for American nuclear plants manufactur­ers such as Westinghou­se and General Electric to sell and give meaning to the long-held US plan of 'nuclear renaissanc­e', opening up jobs in the US while Delhi will accumulate more brownie points for resorting to nuclear power and give a boost to the need for its role to reduce the carbon footprint. That is a typical great power-big money winwin for the modern times.

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