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Japan Focus
October 24, 2005

INDIA SUBORNED: THE GLOBAL SOUTH AND THE GEOPOLITICS OF INDIA'S VOTE 
AGAINST IRAN*

By Ravi Palat

Ironically, in the very year when the fiftieth anniversary of the 
Bandung Conference is being commemorated, the Manmohan Singh 
government unceremoniously dumped India's long espousal of 
independence in international affairs and voted with the United 
States and the European Union to censure Iran for allegedly violating 
its obligations under the Non-Proliferation Treaty (NPT) Safeguards 
Agreement. The vote, at a meeting of the Board of Governors of the 
International Atomic Energy Agency (IAEA) on 22 September 2005, was 
doubly incongruous as the Indian Ministry of External Affairs' 
website clearly recognizes that these allegations were "not 
justified" and that it would "not be accurate to characterize the 
current situation as a threat to international peace and 
stability"[1].

Moreover, as Praful Bidwai has noted, the Manmohan Singh government's 
position is hypocritical because India has been the most prominent 
'proliferator' of nuclear weapons: if India had not detonated a 
nuclear device in 1974 or nuclear weapons in 1998, it is unlikely 
that Pakistan would have followed suit. Moreover, since India has not 
signed the NPT-indeed had condemned it as 'nuclear apartheid,' the 
very phrase invoked by Iranian President Mahmoud Ahmadinejad in his 
speech to the UN General Assembly-the Indian government has no 
grounds to accuse Tehran of not living up to its NPT obligations [2].

New Delhi's abdication of its principle of non-alignment by 
supporting the US- and EU-sponsored resolution against Iran at a time 
when many smaller states abstained from voting-only Hugo Chavez's 
Venezuela opposed the resolution-despite considerable pressure 
brought to bear on them, must be located in a broader geopolitical 
context in which the US and its allies seek to contain China and more 
broadly, the Global South. In this context, Iran with its strategic 
oil reserves plays a key role, especially since China has emerged as 
the world's second largest consumer of oil and Iran is emerging as 
one of its most important suppliers [3].

In what follows, I first trace how a crisis over Iran's uranium 
enrichment policies was manufactured by the US and the EU, especially 
after the unexpected election of Mr. Ahmadinejad as president this 
summer and then examine the broader geopolitical context.

Manufacturing a Crisis

Concern about Iran's nuclear program heightened in December 2002 when 
David Albright and Corey Hinderstein of the Institute for Science and 
International Security published satellite imagery of the 
construction of a fuel fabrication facility in Natanz and a heavy 
water research reactor in Arak, while noting that under existing 
safeguard regulations, Iran was only required to allow IAEA 
inspections of new nuclear installations "six months before nuclear 
material is introduced into it" [4]. Iran was not even required to 
inform the IAEA of the construction and location of these facilities 
as the six months' clause was standard in safeguard agreements till 
the 1990s when the IAEA asked member states to accede to 'subsidiary 
agreements' mandating the transmission of designs of new facilities 
six months before construction. Iran signed these agreements only in 
February 2003 and was thus in full compliance with its international 
obligations at the time [5].

Nevertheless, the George W. Bush administration, which had listed 
Tehran in its "axis of evil" to be targeted for 'regime 
change,'played up allegations that Iran was covertly developing 
'weapons of mass destruction,' and seemed poised, after its invasion 
of Iraq in March 2003, to strike against the Islamic Republic. If we 
now know that the US was in no position to march on Tehran after 
Baghdad, the overwhelming military strength of the US and the 
proclivity towards military adventurism demonstrated by 
neo-conservatives in the Bush administration made the threat 
plausible. A year later, on May 6, 2004, the US House of 
Representatives passed a resolution calling on the Bush 
Administration "to use all appropriate means to deter, dissuade, and 
prevent Iran from acquiring nuclear weapons" by a margin of 376 to 3. 
This was widely interpreted as sanctioning a 'pre-emptive' strike 
against the Islamic Republic. The resolution also called upon 
Britain, France, and Germany-the EU-3-to take the lead in 
negotiations with Iran [6].

These negotiations began on a promising note. Meeting in Paris in 
November 2004, Iran offered to voluntarily suspend its uranium 
enrichment-related activities as long as "negotiations proceed on a 
mutually acceptable agreement on long-term arrangements." In turn, 
the EU-3 undertook to provide "firm guarantees on nuclear, 
technological, and economic cooperation and firm commitments on 
security issues" [7].

Though the EU-3 recognized in the discussions at Paris that Iran's 
suspension of uranium-enrichment activities was a "voluntary 
confidence-building measure and not a legal obligation," soon after 
the election of Mr. Ahmadinejad-a "hardliner"-as Iran's president in 
June 2005, the EU-3 demanded that Iran permanently renounce its right 
to enrich uranium. This was a right accorded to Iran by the NPT it 
had signed in 1974 and by international law. The EU-3 also reneged on 
its "firm guarantees" of cooperation and promised only "not to impede 
participation in open competitive bidding" [8].

The Iranian government responded by notifying the IAEA of its 
decision to resume uranium-enrichment activities at its Esfahan 
facility, which remained under IAEA supervision. Indeed, almost a 
month after Iran's resumption of uranium enrichment, Director-General 
Mohamed el-Baradei certified that "all the declared nuclear material 
in Iran had been accounted for and, therefore, such material is not 
diverted to prohibited activities" [9]. Moreover, despite the 
manifest bad faith demonstrated by the EU-3, President Ahmadinejad 
offered in his speech at the United Nations last month, to enter into 
joint venture projects with foreign public and private sector 
enterprises for uranium enrichment in order to be as transparent as 
possible.

Yet, this offer was rejected by the EU-3 and the US on the grounds 
that once uranium enrichment technology is acquired, it could be used 
to produce weapons-grade uranium and hence represents a threat to 
world peace and regional stability. The resumption of enrichment 
activities at Esfahan was cited as a further reason for action 
despite all evidence to the contrary. It is instructive to recall 
that while the US and the EU-3 now argue that an oil-rich state like 
Iran has no need for nuclear energy, no similar argument was made in 
the mid-1970s when the Ford administration-which included the current 
Vice President Dick Cheney and Secretary of Defense Donald 
Rumsfeld-had approved the sale of up to eight nuclear reactors to the 
Shah of Iran [10]. This is all the more egregious when there is no 
condemnation of Israel's nuclear weapons even though it is now by far 
the strongest state in the Middle East and faces no military threats 
from other states-only resistance from the Palestinians whose land it 
occupies against international law and Security Council resolutions 
that the US supported.

In fact the only plausible charge that the IAEA has made is that Iran 
has not provided a comprehensive history of its centrifuge program so 
that the Agency could be satisfied that there is no "undeclared 
nuclear material." Yet, if this were a sufficient basis to require 
referral to the Security Council for the possible imposition of 
sanctions, the IAEA should also move against Egypt, South Korea, and 
Taiwan as it has also found discrepancies in their account of nuclear 
materials over the last few years. Referring to Iran, 
Director-General el-Baradei has stated that an exhaustive 
investigation to conclude that there are no undeclared nuclear 
material is a "time consuming process" which could even be longer 
than usual in Iran's case [11]. And it is the time required to 
conduct such an analysis that the resolution steam-rollered through 
the IAEA's Board of Governors by the US and the EU sought to deny the 
Agency.

Clearly the most precipitate cause for the US and the EU insisting 
that the IAEA Board of Governors jettison its policy of acting by 
consensus and decide by majority vote to censure Iran and thereby 
provide the Agency with the legal basis to refer the Islamic Republic 
to the Security Council for the imposition of sanctions was that in 
October 2005 a new set of members including Cuba and Syria will join 
the Board of Governors in place of Pakistan and Peru, making any such 
resolution more difficult to pass. But more importantly, the US and 
the EU were determined to prevent the re-emergence of strong links 
between Iran and other members of the Non-Aligned Movement. India was 
a lynchpin in this strategy.

The Geopolitics of India's Vote Against Iran

Critics of India's vote in favor of the US- and EU-sponsored 
resolution of the IAEA's Board of Directors when many smaller 
states-Algeria, Brazil, Mexico, Nigeria, Pakistan. South Africa, 
Tunisia. Vietnam, and Yemen-abstained, have attributed it to a desire 
to maintain its July18, 2005, nuclear agreement with the United 
States, an agreement that India hopes will pave the way for 
technological transfer and weapons sales. While there is substantial 
force to this contention, it needs to be contextualized within a 
broader geo-political context.

These changes center on containing China and the Global South more 
generally. In the rhetoric on the 'war on terror,' after the 11 
September, 2001, it is often forgotten that the Bush Administration 
came to office branding China as a "strategic competitor." Indeed, 
the 'war on terrorism' gave the US the cover to penetrate the one 
world region hitherto closed to it militarily-Central Asia. New US 
military bases in the Central Asian republics, and the resumption of 
military ties with the Philippines and Indonesia meant that a 
by-product of the 'war on terror' was that China was surrounded by an 
expanded arc of US bases [12]. Soon after George W. Bush began his 
second term, in a joint statement, the US and Japan called for "the 
peaceful resolution of issues concerning the Taiwan Strait through 
dialogue"-a call calculated to raise Beijing's ire.

The largest gap in the arc of US bases surrounding China was India. 
Though the Clinton Administration had courted India, the exigencies 
of the campaign against al-Qaida had vastly elevated the strategic 
importance of Pakistan as its president and its intelligence services 
abandoned the Taliban and Islamabad was accorded the status of a 
'major non-NATO ally' of the US. But as China and India move closer 
to each other-China is already India's second largest trading partner 
after the United States, and the two are jointly developing oil and 
gas fields in Iran and Sudan[13]-the Bush Administration has sought 
to woo India away from its northern neighbor.

Thus, just before Chinese premier Wen Jiabao's visit to India in 
April 2005, the US announced that it would allow India to buy 
advanced jet fighters. Though the US also opened sales of fighter 
jets to Pakistan, the smaller South Asian state was dependent on $3 
billion in aid to buy these jets, while India was expected to 
purchase up to 126 planes-with price tags beginning at $35 million 
each-over several years. If the US decision to sell advanced fighter 
planes enables New Delhi to replace its aging fleet and develop its 
aviation technology, it also gives the Bush Administration a new 
lever to influence India as well as to save jobs in the US [14]. 
Moreover, an increase in conventional weaponry does not change the 
balance of power in the subcontinent as nuclear weapons tend to 
negate India's overwhelming lead in such weaponry.

And just as the EU-3 were hardening their stance after Mr. 
Ahmadinejad's election, the US offered India a nuclear deal during 
Prime Minister Singh's July 2005 visit to Washington. The United 
States offered to provide India with dual-use nuclear technologies 
and to forge closer relations in space exploration, and in satellite 
launches and navigation as well as to urge its partners in the 
Nuclear Suppliers Group to establish full civil nuclear cooperation 
and trade. This was quickly followed by Britain and France, which 
also announced their intentions to water down their sanctions against 
India [15]. By facilitating the purchase of uranium in the world 
market, this agreement allows India to divert its domestic uranium 
supplies to weapons production. Some estimates suggest that this 
would allow India to manufacture about a thousand warheads and have 
the third largest nuclear arsenal after the United States and Russia 
[16].

US cooperation in dual use nuclear and space technologies with India 
provides the Bush administration with an appealing carrot to block 
the Iran-Pakistan-India gas pipeline that it has long opposed. Now, 
apart from threatening to invoke the sanctions mandated by the 
Iran-Libya Sanctions Act, the US Administration is likely to 
intensify pressure for India to vote against Iran at the IAEA Board 
of Governors as the price for ratification of the nuclear deal by 
Congress. At the same time, Iranian resentment at India's actions 
could jeopardize the gas pipeline, providing a self-serving Indian 
justification of the nuclear pact with Washington [17].

The US and the EU were particularly concerned about the gas pipeline 
because it symbolized a growing tendency among states of the Global 
South to cooperate amongst themselves. Though the leaders of 
liberation movements in Asia and Africa sought to forge themselves 
into an independent force on the world stage at Bandung in 1955, 
their economies were so disarticulated internally and linked so 
closely to their former colonizers and the economic and social ties 
among African and Asian states so weak, that this effort was 
stillborn.

Today, however, rapid economic growth and 'out-sourcing' of 
production and producer services has led to a multiplicity of ties 
between and among states in Asia, Africa, Latin America, and the 
Middle East, most notably China and India. In particular, the 
spectacular growth of industrialization has led to a drive among the 
larger economies in the Global South to secure reliable supplies of 
strategic raw materials and energy. In 2002, China alone accounted 
for 17 percent of the copper traded on the world market, 21 percent 
of aluminium, 23 percent of stainless steel, 24 percent of zinc, and 
a whopping 28 percent of iron ore [18]. India is China's second 
largest supplier of iron ore after Australia while China is also 
importing large and ever increasing quantities of agricultural 
products from Brazil and other Latin American states [19]. Chinese 
investments in turn have been on so large a scale that China has been 
accepted into the Inter-American Development Bank [20].

These inter-relations among the growing economies of the Global South 
has forged political alliances such as the Group of 20 (G-20)-with 
Brazil, China, India, and South Africa as the nucleus-which demanded 
concessions from high-income states during the World Trade 
Organization (WTO) Ministerial Conference at Cancun in 2003 and 
leading eventually to the collapse of negotiations. Brazilian 
President Luiz Inacio Lula da Silva has also won important victories 
against the US and the EU over agricultural subsidies in the WTO [21].

Along another axis, Venezuelan President Chavez and Cuba's Fidel 
Castro have combined to use their resources in oil wealth and medical 
expertise to advance their mutual interests in the Caribbean. 
Venezuela's PetroCaribe Fund, for instance, provides resources for 
Cuban doctors to examine patients in the Caribbean, and fly suitable 
patients for operations in Cuba along with a companion and provide 
them accommodation and treatment free of charge. Similarly, Venezuela 
is providing low-interest loans to many states to cover the bulk of 
their oil purchases in a scheme that casts US free trade agreements 
in an unfavorable light [22].

When relatively small countries like Cuba and Venezuela can mount 
such effective strategies against the US, the possibility of large 
and richly-endowed states like Brazil, China, India, Iran, and South 
Africa combining to advance their mutual interests threatens to 
undermine EuroNorthAmerican dominance. Notably these countries have 
all the natural resources, labor, and technology they need. The US, 
in contrast, is dependent not only on cash inflows from China, India, 
and other Asian states to balance its large and growing current 
account deficit but is also dependent on low-cost imports to hold 
down inflation. Despite the complementarity of their interests, the 
sheer novelty of economic and political relations between large 
states of the Global South and their ties to smaller cash-rich 
states-especially in Asia, like Taiwan and South Korea-which depend 
on the US for military protection gives Washington considerable 
leverage. Nevertheless, growing intra-South commercial linkages and 
political alliances have the potential to fundamentally transform the 
world order over the next quarter century.

It is true that many East and Southeast Asian states-and China in 
particular-are dependent on exports for their economic growth. 
However, their governments also recognize the importance of 
developing domestic and regional markets, to reduce their dependence 
on high-income states. While the institutional changes to effect such 
orientations will take time to implement, several states are taking 
steps in this direction. At the same time, states in Latin America, 
Africa, and the Middle East are also forging mutually beneficial 
alliances with Asian states which reduce their joint dependence on 
EuroNorth America regarding flows of capital, technology, and 
resources.

This is the context that explains both why the US and the EU 
manufactured a nuclear crisis on Iran and why they cajoled India into 
supporting the resolution censuring the Islamic Republic. It also 
suggests that in the months and years ahead India will have important 
opportunities to return to some of its finest national traditions 
that go back five decades to Bandung and the origins of the 
non-aligned movement, but now placed on firmer economic foundations. 
If the IAEA were allowed time to conduct its investigations about 
Iran's "undeclared nuclear material," and were to come up with a 
report that failed to document Iranian deception, there would be no 
legal basis to insist on continuing sanctions against Tehran 
especially since the regime there had signed-but not yet ratified-an 
extremely intrusive Additional Protocol allowing IAEA inspections 
with less than two hours' notice in some cases. President Ahmadinejad 
could be expected to join leaders of other states of the Global South 
in trade negotiations and his control over strategic oil reserves 
makes him at least as formidable an opponent of the US as Venezuela's 
Chavez. By luring India with promises to make it a global power and 
offering military hardware and cooperation in nuclear and space 
technologies, the US and the EU seek to create antagonisms among the 
Global South. Notably, it has simultaneously pushed the 
Iran-Pakistan-India gas pipeline to the back burner and deepened 
India's dependence on the West.

Ravi Palat is Associate Professor of Sociology at Binghamton 
University and author of Capitalist Restructuring and the Pacific 
Rim. He wrote this article for Japan Focus. Posted October 24, 2005.

Notes
* I gratefully acknowledge the comments of Mark Selden, Faruk Tabak, 
and an anonymous reviewer on earlier drafts of this article.
[1] Government of India, Ministry of External Affairs, "Explanation 
of Vote on Draft Resolution on the Iran Nuclear issue at the IAEA 
Govering Body Meeting," 24 September, 2005
[2] Praful Bidwai, "India Diminishes Itself," The News International, 
1 October, 2005.
[3] Michael T. Klare, "Revving Up the China Threat: New Stage in 
US-China Policy".
[4] David Albright & Corey Hinderstein, "Iran Building Nuclear Fuel 
Facilities: International Transparency Needed,' ISIS Issue Brief, 
ISIS Issue Brief 12 December, 2002.
[5] Siddharth Varadarajan, "Iran and the Invention of a Nuclear 
Crisis,' The Hindu, 21 September, 2005.
[6] "108th Congress, 2nd Session, H.CON.RES.398, Concurrent 
Resolution) May 6, 2004.
[7] http://www.iaea.org/Publications/Documents/infcircs/2004/infcirc637.pdf
[8] Siddharth Varadarajan, "The World Must Stand Firm on Diplomacy," 
The Hindu, 23 September, 2005.
[9] Varadarajan, "Iran and the Invention of a Nuclear Crisis."
[10] Aijaz Ahmad, "Iran: Imperialism's Second Strike," Frontline, 
XXII, 21, 8 October, 2005.
[11] Siddharth Varadarajan, "What the IAEA Really Found in Iran." The 
Hindu, 22 September, 2005.
[12] Ravi Arvind Palat, "On New Rules for Destroying Old Countries," 
Critical Asian Studies, XXXVII, 1, March 2005, pp. 86-87.
[13] Andy Mukherjee, "China and India May Put Commerce Above 
Conflict," International Herald Tribune, 6 April 2005. Elsewhere-in 
Bangladesh and Myanmar-the two Asian giants compete against each 
other in energy projects, Tarique Niazi, "China, India, and the 
Future of South Asia.".
[14] Leslie Wayne, "A Deal for Jet Fighters Opens the Door to India," 
New York Times, 16 April, 2005.
[15] Lora Saalman, "Redrawing India's Strategic Maps With China and 
the United States."
[16] Conn Hallian, "Sleight of Hand: India, Iran & the United 
States," Foreign Policy in Focus, 19 October, 2005.
[17] Bidwai, "India Diminishes Itself." Immediately after India's 
vote against Iran at the IAEA, an irate Iranian ambassador announced 
that a $21 billion deal to supply India with 5 million tonnes of 
liquefied natural gas annually for a twenty-five year period is off. 
Through some deft diplomacy, Indian officials were soon able to 
announce that the deal was revived. This does not refer to the 
pipeline deal that is still being negotiated.
[18] James Kynge, "Chronic Over-Investment, Excess Supply, and 
Endemic Corruption: Can China Keep Its Booming Economy?" Financial 
Times, 23 September, 2003.
[19] Randeep Ramesh."Chindia, Where the World's Workshop Meets Its 
Office," Guardian, 30 September, 2005.
[20] Jerry Harris, "Emerging Third World Powers: China, India, and 
Brazil," Race & Class, XLVI, 3, pp. 23-24.I am grateful to Bill 
Martin for bringing this article to my attention.
[21] Ibid., p. 21.
[22] Marc Frank, "Eye Surgeons Bring Ray of Hope to the Caribbean." 
Financial Times, 21 October, 2005.

ISSN: 1557-4660



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