Re: India-US Strategic News and Discussion
Posted: 26 May 2014 10:03
Modi’s existential challenge to Obama
Edward Luce, ft.com
If the US president is to retrieve the geopolitical initiative, he must win over India’s leader
Whatever you think of him, Narendra Modi’s victory is a global event. Nobody knows whether Mr Modi will embrace the US-India relationship or walk the multipolar walk. His swearing-in on Monday as India’s prime minister coincides with Vladimir Putin’s “pivot to Asia” with the 30-year China-Russia gas deal.
US President Barack Obama’s own pivot looks increasingly content-free. If the US president is to retrieve the geopolitical initiative, he will need to win over India’s new strongman. India, as they say, is the “global swing state” of the 21st century. Mr Obama must ensure it swings America’s way.
That looks like a bit of a stretch right now. Mr Modi is bristling with resentment at a US that denied him a visa in 2005 over his role in the 2002 Gujarat massacres and only lifted the ban recently. In contrast, Mr Modi visited Japan five times during that period and China on three occasions – always getting the red carpet treatment.
Normally Indian chief ministers meet one member of the Chinese politburo. On his most recent trip Mr Modi met four. Uniquely for a provincial leader, he was also received in the Great Hall of the People. President Xi Jinping clearly saw Mr Modi coming. Mr Obama denied him entry. That, at least, is how Mr Modi sees it.
Nor does he make a secret of his grievance. Mr Modi’s advisers have put it out that his first two trips are likely to be to Japan and China, both of which he admires for their ability to execute big projects and create manufacturing jobs – core planks in the Bharatiya Janata party’s election platform. After that, he is likely to visit the Brics summit in Brazil in July where he will get a photo opportunity with Mr Xi and Mr Putin. Only in September will Mr Modi touch down on US soil (visa in hand) for the UN summit in New York.
“There is no need for Mr Modi to go to Washington and beg for a lunch meeting with the US president,” wrote Kanwal Sibal, who is on the short list to be Mr Modi’s national security adviser.
Successive administrations – starting from Bill Clinton’s – might argue that the US has already bent over backwards to seduce India into its fold. George W Bush carved out a giant exception to his weapons of mass destruction policy by accepting India into the nuclear weapons club.
Mr Obama completed that deal and offered his first state dinner to Manmohan Singh, the then Indian prime minister, whom he described as his guru. Mr Obama even travelled to New Delhi in 2010 to declare that the US supported India’s permanent membership of the UN Security Council – again, a giant exception that was offered to no other country. But Mr Obama’s UN gesture had little impact on Indians.
To borrow a phrase from Mohandas Gandhi, they viewed it as a postdated cheque on a failing bank. Can Mr Obama write any cheques that do not bounce?
The answer is clearly yes – if he wants to. For all of Mr Modi’s resentment at the US, he has already shown his pragmatism. In addition to having laundered his image since 2002 by focusing on Gujarat’s development, Mr Modi has swallowed one genuine enmity before he is even sworn in.
By inviting Nawaz Sharif, Pakistan’s prime minister, to attend today’s oath-taking in New Delhi, Mr Modi signalled he is open for business. His mandate is to lift India’s growth rate and create jobs for the millions of young men roaming the countryside. War with Pakistan would derail that agenda. So too would friction with China.
It is difficult to imagine he would pick a fight with the US, which remains the world’s largest investor. This is where Mr Obama’s diplomatic skills will be tested. In the first instance, he needs to restore Mr Modi’s “face”.
India’s prime minister believes America has treated him as an untouchable. Only the royal treatment would atone. It is very hard to imagine Mr Obama taking anyone into the Oval Office and calling them “buddy”. That was Mr Bush’s speciality. But he will need to make a big gesture to break the ice.
The US must also show it is willing to help Mr Modi’s agenda. In the past few years India has treated foreign investors badly, including US companies, by imposing arbitrary and retroactive tax bills. Assuming Mr Modi puts India’s venal tax bureaucracy in its place, the door will be open for the country’s foreign investment boom to resume.
Whatever lift the US can give to Mr Modi’s development goals will be worth its weight in diplomatic gold.
US business leaders remain agitated by India’s failure to give them a liability waiver on nuclear power plant accidents. They should move past it. The world has changed since the meltdown in Fukushima.
The US is unlikely to reap the commercial dividends of its nuclear deal with India. Like China, India has a limitless appetite for cheap energy. Mr Modi is likely to take whatever pipelines are on offer, whether they originate in Russia or Iran. Sentiment is unlikely to pose any obstacles.
Without meaning to, Mr Modi has laid down a challenge to Mr Obama. The US president was never happier than when he was exchanging words with Manmohan Singh – another well-intentioned leader seemingly powerless to act.
Like him or not, Mr Modi is a man of action. At a time when most of the Bric countries are moving away from the US, Mr Modi’s ascent poses an existential question. Can Mr Obama be a statesman of action?
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