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Diplomacy
Annie Raja General Secretary of National Federation of Indian Women protesting against the Taliban takeover of Afghanistan

India-Taliban relations: A careful balancing act, driven by pragmatism

by Vinay Kaura

An ongoing power struggle for the position of ambassador at the Afghan embassy in New Delhi underlines India’s diplomatic quandary about the nature of its engagement with the Taliban regime in Afghanistan. India’s Ministry of External Affairs (MEA) has not issued any public statement regarding the dispute between representatives of the previous Islamic Republic of Afghanistan and the Taliban’s Islamic Emirate of Afghanistan over who should occupy the post, but reports suggest India has conveyed to both sides that they need to settle their internal issue on their own. However, the fact that the visa of Qadir Shah, the person appointed by the Afghan Taliban as chargé d’affaires in New Delhi, has reportedly expired further complicates the power struggle. If the Indian government decides to extend Shah’s visa, it would interpreted as India’s willingness to accept a Taliban-appointed diplomat in the Afghan embassy in New Delhi. Following its seizure of power in August 2021 after overthrowing the U.S.-backed Ashraf Ghani government, the Taliban regime has been seeking international diplomatic recognition along with Afghanistan’s seat at the United Nations. The Taliban regime has so far taken control of more than a dozen missions abroad, but India is yet to have a Taliban-appointed ambassador. In March, the Taliban regime’s spokesman, Zabihullah Mujahid, revealed that “efforts are underway to take charge of other diplomatic missions abroad. [...] Diplomats of the former government are continuing their activities in coordination with the [Taliban] Foreign Ministry.” Afghan embassies in Pakistan, China, Russia, Iran, Turkey, Kazakhstan, and some other Arab and African countries are now working under Taliban-appointed diplomats. India’s involvement in Afghanistan The security, economic, and humanitarian vacuum left by the withdrawal of American troops has significant implications for India’s interests in Afghanistan. India has always required and worked for a relatively stable Afghanistan free from threats by terrorist groups. Without formally recognizing the Taliban regime, in its many recent official statements India has made clear that it recognizes the reality on the ground. While India has also underscored the need for the Taliban regime to reform its governance in terms of gender and ethnic inclusivity, such normative considerations are unlikely to influence the substance of the India-Taliban relationship insofar as they do not essentially affect regional stability. India has no history of military intervention or political interference in Afghanistan and New Delhi has focused on forging people-to-people connections and projecting soft power. That is why, despite setbacks due to the hasty exit of U.S. forces, India continues to maintain goodwill among ordinary Afghans and perhaps even a section of the Taliban leadership (such as Abbas Stanikzai, the Taliban’s deputy foreign minister, who is believed to have a soft spot for India). Next to the U.S., India was Afghanistan’s principal regional source of development assistance since the Taliban’s ouster in 2001. In fact, India’s engagement with Afghanistan offers a compelling example of the use of soft power. Beyond its geostrategic motives, New Delhi was determined to bolster Kabul to ensure that a radical Islamist regime beholden to Pakistan’s security establishment did not gain a foothold in the region. That India and the Taliban-led Afghanistan have gradually drawn together to the extent that they have is an example of pragmatism in foreign policy making at its best. For India, it makes sense to try to give some reason, in the form of diplomatic exchanges and developmental assistance, for the Taliban not to permit the export of terrorism from Afghan soil. For the Taliban, notwithstanding their ideological rigidity domestically, the dire need for development assistance means maintaining silence on India’s policies on the Kashmir Valley, which is predominantly Muslim.  The Taliban have sought India’s assistance in rebuilding their country. For a regime that has been diplomatically and financially isolated, its normal relationship with India also holds much pragmatic appeal, given New Delhi’s growing geopolitical influence and longstanding interest in accessing Central Asian markets via Afghanistan. New Delhi expands its presence and engagement In June last year, New Delhi decided to deploy a “technical team” at the Indian embassy in Kabul to re-establish its diplomatic presence in Afghanistan for the first time since the Taliban takeover. And soon after, when India delivered a consignment of medical supplies to Afghanistan as part of its humanitarian assistance, India’s external affairs minister, S. Jaishankar, characterized India as “a true first responder” in Afghanistan. India’s move to expand its diplomatic presence is also driven by a desire to coordinate humanitarian relief efforts. In order to avert a humanitarian crisis in Afghanistan, India supplied 40,000 metric tons (MT) of wheat overland via Pakistan in February 2022 and an additional 20,000 MT via Iran’s Chabahar port in March 2023 to be distributed through the U.N. World Food Programme (WFP), along with 45 tons of medical assistance in October 2022, including essential life-saving medicines, anti-TB medicines, 500,000 doses of COVID-19 vaccines, winter clothing, and tons of disaster relief material, among other supplies. In addition, India’s union budget for 2023-24 also made a special provision for a $25 million development aid package for Afghanistan, which has been welcomed by the Taliban. The Taliban have reportedly requested that India finish about 20 incomplete infrastructure development projects across the country. In April, during the signing of a memorandum of understanding with India for the dispatch of an additional 10,000 MT of wheat, the WFP assured India that it has the necessary infrastructure on the ground to quickly deliver the wheat to the most needy sections of the Afghan population. Recently, the MEA, under the aegis of the India Technical and Economic Cooperation Programme (ITEC), invited Afghan government officials to attend a four-day virtual course on Indian legislation and business climate. In principle, India’s outreach to the Taliban is also conducive to achieving its counterterrorism objectives. However, there is a risk of over-expectation on the part of New Delhi that the Taliban would crack down on anti-India terrorists, as well as indications that the Taliban regime continues to maintain its deep links with Pakistan’s security establishment. It has been suggested by National Defense University Professor Hassan Abbas in his recently published book, The Return of the Taliban, that the Taliban regime consulted the Pakistani military before allowing India to reestablish its diplomatic presence in Kabul in June 2022. The Taliban’s ideological constraints India-Taliban relations could be hampered by the Taliban’s internal ideological positions, which the group has clung to rigidly even at the expense of its efforts to secure international recognition. The Taliban regime banned girls from educational institutions and prevented women from working in most fields of employment, including at non-governmental organizations. Women have also been ordered to cover themselves in public and are barred from many entertainment and sports venues. External pressure, including the imposition of sanctions, has not done much to convince the rigid hardliners within the Taliban regime to change their direction on human rights, gender equality, or ethnic representation in governance. This suggests that there are limits to what India can achieve through its interactions with the Taliban. The risks for India are heightened because some Pakistan-based terrorist groups would likely criticize the Taliban regime for seeking closer ties with India. Moreover, were Kabul’s cooperation with New Delhi to pose a threat to the Taliban’s own internal ideological legitimacy, this would also serve as a check on efforts to normalize relations. Regional dynamics and prospects for cooperation The Taliban regime is enthusiastically courting other regional powers as well, such as China, Russia, and Iran, each of which has its own regional interests. For instance, in contrast to India’s passive role and limited footprint in Afghanistan, China has been expanding its diplomatic and economic presence in the country. Recently, China discussed with the Taliban regime how to bring Afghanistan into the Belt and Road Initiative (BRI) to boost investment in the crisis-hit country, while also pressing Kabul to deliver on its regional and international commitments to counter terror. In January of this year, Beijing signed a 25-year contract to extract oil from the Afghan Amu Darya Basin and is also negotiating other lucrative commercial deals with the Taliban regime. Central Asia has often been seen as a test case for Indian leadership. It is in Afghanistan that India has taken a notably more proactive approach to driving regional cooperation through connectivity initiatives. India has also used the Shanghai Cooperation Organization (SCO) platform for this purpose. With inclusion of Iran this year, membership in the Eurasian political, economic, and security organization now includes all of Afghanistan’s immediate neighbors with the exception of Turkmenistan. Early this month in Goa, India, the foreign ministers of SCO countries called for the establishment of a representative government in Afghanistan as well as the protection of women’s rights. Indian External Affairs Minister Jaishankar remarked, “Our immediate priorities include providing humanitarian assistance, ensuring a truly inclusive and representative government, combating terrorism and drug trafficking, and preserving the rights of women, children, and minorities.” While the SCO might appear a viable platform for regional cooperation, there are certain limits to its effectiveness in dealing with Afghanistan due to the divergent political and security interests of some SCO members, particularly India and Pakistan. Moreover, given Russia’s reduced international stature and Beijing’s growing leverage over Moscow due to its brutal war against Ukraine, the SCO is now a China-led organization. China is a key participant in many important regional forums where Afghanistan remains a core security concern. Since India has a very uneasy relationship with China and supports U.S.-led geopolitical initiatives, primarily the Quadrilateral Security Initiative or Quad (comprising India, the U.S., Japan, and Australia), to counter China, there are practical constraints to what India can achieve through the SCO.   While the Taliban have not yet shown the traits required for recognition as a legitimate political organization responsible for governing Afghanistan, the non-recognition of their regime should not worsen the suffering of the Afghan people. India has a clear interest in a stable and well-governed Afghanistan, not least to prevent spillover into Kashmir. For now, India’s policy toward Afghanistan remains focused on building pragmatic, if not cooperative, relations with the Taliban. India is engaging the regime on its own terms and continues to highlight its commitment to Afghanistan’s ethnic minorities and women. India is equally careful that its interactions should not be viewed as a diplomatic embrace of the Taliban or its acceptance of their repugnant governance model.

Diplomacy
President Xi Jinping with Indian Prime Minister Narendra Modi

Here be dragons: India-China relations and their consequences for Europe

by Manisha Reuter , Dr. Frédéric Grare

The border standoff between China and India illustrates the growing rivalry between the two countries – and the part that other major powers play in it On 27 April, the defence minister of India, Rajnat Singh, met his Chinese counterpart, Li Shangfu, on the margins of the Shanghai Cooperation Organisation (SCO) Defence Ministers Meeting in Delhi. The meeting was yet another attempt to find a way out of the three-year-long standoff between thousands of soldiers along the disputed border, which began in May 2020 when Indian and Chinese forces clashed in the Galwan Valley, killing 20 Indian soldiers and an undisclosed number of Chinese ones. Since then, officials from both countries have met for 18 rounds of talks to try to agree on a disengagement of troops from the area with no success. India has blamed China for unilaterally trying to move the border by sending troops beyond the Line of Actual Control (LAC) between the countries. While it is in both China’s and India’s interest to settle the dispute, Beijing seems unwilling to engage in actual negotiations about the LAC, instead expressing hope that the two sides could move on from the issue and strengthen their mutual trust.   India’s and China’s dispute along the border is illustrative of the growing rivalry between the two countries, which is shaping the security landscape and strategic environment of South Asia. China is gaining power and influence in the Indo-Pacific – where India has long been the dominant power – and using it as yet another arena for its strategic rivalry with the United States. Given Europe’s trade with the region and the complex interplay of relations between China, the US, India, Russia, and the European Union, this dynamic will have severe consequences not just for the region, but for Europe as well. Beijing has tightened its grip over the entire Indian Ocean region in the past two decades. It has created a network of military and commercial facilities – the so-called string of pearls – and strengthened its economic relations with countries of the region. In 2022, Sri Lankan debt obligations to China rose to $7 billion, while the Maldives owes some 40 per cent of its GDP to China. These economic dependencies have eroded India’s influence in its immediate neighbourhood. New Delhi had built up strong diplomatic ties with other countries in the region through its “island diplomacy” and initiatives such as the Security and Growth for all in the Region maritime cooperation. China’s investment in the region has now pushed New Delhi into an economic competition which it may ultimately have difficulties sustaining. New Delhi still exerts a dominant role in South Asia and, specifically, the Indian Ocean, but as China consolidates its position in the region, its attitude towards India has become more assertive. India remains resolute about preventing Chinese hegemony in Asia, repeatedly stressing that a multipolar world starts with a multipolar Asia, and seeking partnerships with a variety of countries, including the US and the EU. Beijing is concerned about India’s growing military ties with the US and tends to consider India’s intentions through the lens of its own rivalry with the US. India’s inability to push back China at the border also further diminishes New Delhi’s influence over the smaller regional states, namely Bangladesh, Nepal, Bhutan, and even the Maldives, by absorbing the financial, military, and administrative resources that could be spent on expanding India’s footprint in the region. It also poses questions about India’s relative power and its ability to protect smaller neighbouring countries from Chinese coercion. This leaves New Delhi even more isolated in the region that includes its arch-rival Pakistan. Both India and China insist that they want to rebuild trust but they cannot agree on the process. Because it currently has the upper hand, China would like trust building to remain a strictly bilateral matter and does not want organisations such as the G20 and the SCO, the other three BRICS states – Brazil, Russia, and South Africa – or even the ASEAN-led institutions to play any role in the so far hypothetical normalisation process. In doing so, China challenges India’s multilateral aspirations and de facto reduces New Delhi’s capacity to manage collectively the consequences of China’s rise for itself and the region. The war in Ukraine makes this even easier as Russia, traditionally on India’s side in multilateral regional arrangements, seems distracted and neutralised by its new, albeit uneasy, proximity to China. The escalating tensions and aggression since 2013 are therefore no coincidence. Beijing’s coercion on the border and naval build-up in the Indian Ocean force India into a costly arms race and warn it against what Beijing considers excessive proximity to the US. In the ongoing great power competition between China and the US, every issue becomes a zero-sum game. This makes it harder for India to solve its border conflict with China and at the same time manage China’s rise and growing assertiveness in the Indo-Pacific region in a peaceful manner. Strengthening India’s position in South Asia and the Indian Ocean region is in line with Europe’s own interests in free trade and supply chain resilience, as well as sustaining a multipolar world order – one in which countries’ political decision-making is not restricted by their economic dependency on China. In this regard, India should play a crucial role in the EU’s diversification and de-risking strategy. The Indo-Pacific region accounts for 40 per cent of the bloc’s extra-EU imports and 27 per cent of its total exports, most of which are sea-borne. As such, the Indian Ocean is Europe’s primary gateway to the Indo-Pacific region. China and India may be slowly but effectively moving towards a new phase of antagonistic rivalry. While the prospect of open confrontation remains only a distant possibility, further polarisation of India-China relations in the Indian Ocean is a problem not only for India, but also for Europe. The EU declared India a priority partner in its 2021 Indo-Pacific strategy, but its relationship with New Delhi has long been characterised as not living up to its full potential. Europe’s growing disillusionment with China over the past two years has shown the need and prepared the ground to further strengthen relations with India. The EU should prioritise the establishment and implementation of  the EU strategy for cooperation in the Indo-Pacific, the EU-India free trade agreement, the Trade and Technology Council, and the Connectivity Partnership to demonstrate its commitment and effectively move beyond symbolic cooperation with India.

Defense & Security
Pakistan military personnels

Pakistan Army: Blighted by Politics, Driven by Ambitions

by Sushant Sareen

Late night on May 12, the official spokesperson of the Pakistan military, Major General Ahmed Sharif Chaudhry, came on Geo TV to dispel rumours about resignations and dismissals of officers of the Pakistan Army. Since the events of May 9—the large scale violence that broke out after the arrest of Imran Khan, much of it targeted against the Pakistan Army and its installations and establishments—there have been reports that the Corps Commander of IV Corps along with some other senior officers were removed from their posts. On May 12, a former army major who has been running a relentless campaign against the current army leadership from the United Kingdom, revealed names of officers who had been sacked for disobeying orders. There were also rumours that a number of other Corps Commanders who were believed to be part of the Imran Khan cult were on the firing line and would soon be sacked. It was amidst such sensational ‘news’ spreading like wild fire over the last few days that the Inter Services Public Relations (ISPR) chief came out with a somewhat perfunctory clarification that is really not going to silence the jungle telegraph that has gone into an overdrive. Clearly, all is not well within the Pakistan Army. That the Pakistan Army is a divided house is not breaking news. Over the last one year, there are straws in the wind, whispers in corridors of power, insinuations and inferences that suggest that the divisions in the rank and file, and even in the top brass, are not just personality driven but also ideologically and politically. Imran Khan appears to have achieved what was supposed to be impossible and unacceptable—dividing the Pakistan Army. If General Asim Munir is now trying to stamp his authority over the Army and restore the command and control system of the only somewhat functional institution in an otherwise dysfunctional country, then this is an exercise fraught with risk. Drastic steps to enforce discipline and reassert the authority of the Army Chief at this stage could either precipitate the crisis in the Army or consolidate it behind the chief. In case of the former, the crisis of the state in Pakistan will become deeper. The institutional integrity and coherence of the Pakistan Army will be irretrievably damaged. If a cabal of generals succeed in defying the Army Chief, then it will be a template that will be followed by others as well. Forget about coups against civilian governments, the new normal will be coups against the Army Chiefs. In the worst case scenario, Islamabad might even witness Khartoum like scenes. But even if General Munir manages to hold on, the discontent in the rank and file will be palpable and could hobble him and his command. In the past also, the much vaunted discipline and unity of Pakistan Army has come under tremendous strain with ambitious generals trying to grab power and middle ranking and junior officers questioning their superiors. After the 1971 debacle, the junior officers literally abused the top brass openly which forced them to not stay in office. In the 1970s, some young officers planned a coup against the army leadership. In the mid-1990s, a group of officers led by Major General Zaheerul Islam Abbasi plotted to wipe out the entire top rung of the military and grab power. In the early 2000s, there were arrests made of disgruntled officers who were linked with the Hizbut Tehrir. Among other officers, a brigadier was arrested. At that time, the then Director General of ISPR, Major General Athar Abbas, had said the Army cannot allow officers to become members of another group or cult, which is precisely what is happening today where officers appear more loyal to the Imran cult than to their own institution. There was also a conspiracy hatched by a cabal of generals, including the Inter-Services Intelligence chief and a couple of Corps Commanders, against Prime Minister Nawaz Sharif and General Raheel Sharif when they used Imran Khan’s 2014 ‘dharna’ to create conditions in which the PM would sack Raheel Sharif, and the Army would move in doing a double regime change—in the government and in the army. Although all these plots failed, they suggest a persistent problem in the Pakistan Army, of officers tempted to usurp power. Something similar is underway now. Only this time, things appear to be far more fraught than ever in the past.

Defense & Security
Chief of Naval Staff Admiral R Hari Kumar with Admiral John C Aquilino, commander of the US Indo-Pacific Command

India-Australia Defence Cooperation and Collaboration in the Indo-Pacific

by Dr Shubhamitra Das

The significant rise in defence and security ties between India and Australia has led to an ease in dealing with their responsibilities in multilateral regional forums. The institutionalisation of cooperation has also become more strategic.  The geostrategic positioning of India and Australia on the Indian and Pacific Oceans has helped with the convergence of interests, enabling relations to expand and steadily deepen. Unlike in earlier times when New Delhi and Canberra were searching for equal grounds for cooperation, the concept of the Indo-Pacific has made this easier, enhancing the conviction that greater engagement was an inevitability of their geographic circumstances. It made them partners to jointly take responsibility for maintaining a free, open, inclusive and peaceful Indo-Pacific, which demands a noticeable tilt towards defence and security cooperation. India has long aspired to be the key protagonist in the Indian Ocean; Australia has wanted to more naturally belong to the region. Moreover, Australia’s foreign policy over the years has emphasised playing a constructive role in the region with enhanced regional engagement. Though China looms large in each nation’s strategic calculation, the issues that unite both countries go beyond China and include the multifaceted challenges of maritime security, piracy, armed robbery, smuggling of small arms, protracted internal conflict, illegal, unprotected, and unregulated (IUU) fishing, cyber security, climate change, and ocean-born trade security. The India-Australia Comprehensive Strategic Partnership (2020), upgraded from the bilateral strategic partnership of 2009, is an effort to broaden the scope of their defence and security relationship by finding new initiatives, methods, and mechanisms to sustain mutual security interests. These have been bolstered to-date through cooperation in the AUSINDEX, Kakadu, Pitch Black, Milan, and Malabar military exercises, and with further collaboration in the Indian Ocean Naval Symposium, 2+2 ministerial dialogues, Joint Working Group for research on enhancing defence industry, mutual logistics, and intelligence support and sharing agreements. These have included, for example, the Mutual Logistics Support Agreement and officer exchange programs. In addition, Australia’s invitation to India to join Exercise Talisman Sabre, the most important military exercise between Australia and the United States, will set another milestone for cooperation. Both countries further engage in humanitarian matters, energy security, and marine and space research. Their commitment to Humanitarian Assistance and Disaster Relief in Afghanistan and within the Quadrilateral Security Dialogue in vaccine distribution, for example, highly has been successful. In energy security, both have agreed to focus on UN Sustainable Development Goals and work on new and renewable technology in solar and wind energy. One potential area for cooperation – being maritime powers – will be wave energy for sustainable and resilient energy sources. The Indo-Pacific Oceans Initiative, in which India and Australia are deeply involved, will work on a whole array of issues involving marine ecology; security of maritime borders; pollutants, like marine plastics; IUU fishing; and marine research for conservation purposes. In addition, India and Australia have updated the Memorandum of Understanding in space programs, technology advancement, and joint space programs. Australia will also be supporting India in tracking the Gaganyaan mission – India’s first space-manned mission – at Cocos Keeling Island. Currently, India and Australia are at a crucial juncture. The election of the new government in Australia in 2022 is likely to aid the strong relationship between the two nations. But the turn for India to head the G20 is also expected to facilitate greater cooperation, particularly in economic and trade liberalisation and potential reform of economic regimes such as the World Trade Organization. In April 2022, India and Australia signed their first Free Trade Agreement (FTA), the India-Australia Economic Cooperation and Trade Agreement. The fast pace at which their trade took off – from US$13.6 billion in 2007 to US$24.3 billion in 2020 – shows the many benefits of diversifying their trade. In addition, the elimination of tariffs for nearly 90 percent of Indian exports will further boost the Indian economy. The question is whether India will continue to engage its economy regionally in multilateral economic bodies. While it declined to join the Regional Comprehensive Economic Partnership, India has begun a process of seeking bilateral FTAs with most member countries. What Australia and India can achieve bilaterally to make the comprehensive strategic partnership effective is to engage in dialogue with regional littoral countries on defence and security. This engagement will help with confidence-building and familiarity among partners. However, the advantage of this type of institutionalisation of the Indo-Pacific depends upon the degree to which states seek interaction. The littoral states, in this sense, should be included within the Indo-Pacific complex as much as possible. The emerging paradigm of inclusivity and pluralism within a free, open, and peaceful Indo-Pacific will bring together the littoral and less powerful countries of the region and empower them to join and engage with others; that is, those who otherwise do not have a voice or clout in international political platforms. Along these lines, the Indian Security and Growth for all (SAGAR) initiative seeks to enhance cooperation through information sharing, capacity building, coastline surveillance, and infrastructure building. The India-Australia-Indonesia trilateral dialogue is another attempt to enhance cooperation in the same direction. Although it was presumed in India that the Labor government in Australia might be more inclined toward China, it was understood that this did not mean a policy and behavioral turnaround. Instead, Canberra’s focus will include a mix of continuity and change. Australia has come a long way in its institutionalisation of the Indo-Pacific, and its ability to diversify its interests by engaging with the littoral countries deserves special attention. To be sure, China’s increased aggression in the South China Sea and it’s diplomatic handling of Australia’s COVID-19 inquiry have been influential here. But the process has also been captive to such institutionalisation as mentioned above. Australia’s involvement with Quad and its participation in the military exercises with India and other Quad countries in the Indian Ocean will continue to strain its relations with China. In addition, the Russia-Ukraine war will likely continue to drive foreign policy activism and cooperation among like-minded countries, of which Australia figures prominently. The takeaway here is that regular interaction between the two countries on various defence-related activities has worked to enhance mutual respect and understanding of shared values. This interaction has broader implications. Both nations can support each other in addressing issues of mutual concern internationally. Their engagement in trilateral groupings like the India-Australia-Indonesia and India-Japan-Australia dialogues, as well as joint engagement in the Supply Chains Resilience Initiative and the Quad with the United States and Japan, represent successful examples of bilateral and multilateral trust and relationship-building. One significant outcome of these growing partnerships will be to revive and strengthen the Indian Ocean Rim Association in awareness generation, capacity-building, and consensus-building. Lastly, all the above initiatives are government efforts to enhance partnerships. The involvement and regular interaction of academia, think tanks, civil society, and the media have been equally important and will continue to play an important role in boosting these relationships.

Energy & Economics
Tourist exchange rates at a streetside booth as the Thai Baht falls for the 7th week on June 9, 2013 in Bangkok, Thailand

Strong dollar snowballs across Asia

by Brad W. Setser

The dollar’s strength is placing pressure on economies around the world, including in developing Asia. What makes this bout of dollar strength unique is that the stress is not limited to Asia’s developing economies. Asian economies are diverse and the direct financial impact of dollar strength varies. Some regional economies have significant foreign currency debts and limited foreign currency reserves. Unsurprisingly, these economies are in financial trouble. Sri Lanka defaulted on its bonds earlier in the year and is now trying to restructure its external debt. Pakistan has had to seek an emergency financing package from the International Monetary Fund, backstopped with pledges of additional support from both China and the Gulf. Bangladesh has proactively sought out IMF financing in the face of a terms of trade shock. Laos is, in all probability, relying on the continued forbearance of China’s policy banks to manage its unsustainable debt loads. All these countries are struggling to pay for imports of oil and natural gas. A broader set of Asian economies have relatively strong foreign currency balance sheets and are not at risk of immediate financial distress. Many have been able to rely on their local currency bond markets to finance fiscal deficits, limiting their direct financial vulnerability to swings in the dollar. India is in a much stronger position than during the 2013–14 ‘taper’ tantrum. It started 2022 with US$650 billion in foreign reserves, more than double the US$250 billion it held in 2012. The Indian government’s external debt, primarily to the multilateral development banks, only totalled US$125 billion. Thailand’s government started 2022 with over US$250 billion in foreign exchange reserves — or over 50 per cent of its GDP — while owing a bit over US$30 billion to external creditors. Other countries have more subtle strengths. For example, a substantial share of Indonesia’s US$80 billion in international sovereign bonds are denominated in yen. At the same time, balance sheet resilience is not sufficient to insulate a country’s broader economy from the impacts of a strong dollar. Even countries that have little to fear financially worry about the impact of currency weakness on households’ costs of living. There has been little correlation to date between the extent of currency depreciation across the main Asian currencies and the underlying strength of countries’ foreign currency balance sheets. The currencies of advanced Asian economies have actually depreciated more than the currencies of developing Asian economies. Japan — with plenty of reserves, significant foreign assets in its government pension fund and insurance companies that are structurally ‘long’ dollars — has experienced the largest depreciation. Taiwan and South Korea have followed. Meanwhile India, Indonesia, Malaysia and Thailand have experienced smaller depreciations. The reason for this is simple. Up until Japan’s heavy intervention in late September 2022, lower income Asian economies had been more willing to defend their currencies through a combination of rate increases and foreign reserve sales. There are signs that this is changing. Japan intervened heavily in September and October. South Korea is now worried that the won  has become too weak and is seeking to join Japan in obtaining a standing Federal Reserve swap line to meet dollar liquidity needs in its financial sector — potentially freeing up more of its existing reserves for intervention. Even though the dollar is now off its October peak, developing Asian economies continue to face several risks. The first is that certain economies may overestimate their balance sheet strength and sell foreign exchange for longer than is prudent. The basic principle is that temporary shocks can be financed with borrowed or reserve sales while permanent shocks require adjustment. The longer global energy prices remain high and the dollar remains strong, the more difficult it will be for countries to avoid adjustment. The second risk is the possibility of an additional shock from Japan. Japan’s efforts to limit the yen’s depreciation through intervention may fail, as it is harder for Japan to defend its currency through intervention than it is for smaller economies, whose financial markets remain less integrated into global markets. There is the additional risk that yen weakness and imported inflation could lead the Bank of Japan to abandon its policy of ‘yield curve control’ and that the associated rise in long-term Japanese government bond rates could push up interest rates globally. Many emerging economies would likely need to raise their domestic interest rates to avoid importing additional inflation, and to limit popular pressure for fiscal subsidies to offset higher fuel prices. This would be the Asian version of what is now called a reverse currency war. The third risk is a currency shock from China. China has long relied primarily on the signal sent by the People’s Bank of China’s daily fix — the central reference point for daily trading — to manage the yuan with only limited direct intervention by its central bank. To date, the pressure on China appears manageable. News reports suggest that the PBoC has leaned on China’s large state banks to use their balance sheets to help maintain the trading band around the yuan, but there is little evidence of pressure on the central bank’s reserves. However, if its economy remains weak, China may choose to allow more depreciation — both against the dollar and against the currencies of its trading partners to restart its economy. This would be an admission that China’s ability to avoid a prolonged stall through internal demand is limited and that exports are again required for growth. A yuan that is as weak as the yen could easily trigger a race down across the currencies of developing Asia. Many, though not all, developing Asian economies are less vulnerable to a repeat of the 1997 crisis. But few countries will be able to escape the fallout from the dollar’s current strength. A broader overshoot of many currencies that amplifies concentrated pockets of debt difficulties and complicates the fight against inflation globally remains a real risk.

Diplomacy
Mumbai, India. Migrant workers sit in the queue at a train terminus to board on a train for their journey back home during a nationwide lockdown

South Asian Migration to Western Europe: Origins, Trends, Perspectives

by Andrey Volodin

Migration flows from South Asia to Western Europe have a long history, the origins of which can be traced in the colonial development of the states of this region.  The end of British colonial rule in India in 1947 was accompanied by the split of the once unified territorial space of Hindustan into two national entities - India and Pakistan. During the first decades after independence, there were intense migratory movements from the former colony to the former metropolis. British migration policy determined the direction and intensity of migration flows from the Hindustan Peninsula to the United Kingdom. The first post-colonial migration flows were based on the following reasons: Britain's interest in the influx of additional labor force, mostly of low qualification; the practice (which existed before 1947) of free human movements from the colonies to the mother country; features of the immigration policy of the United Kingdom, which allowed citizens of the countries of the British Commonwealth to choose their country of residence and even have their own companies in the UK. The vast majority of migrants from India were Sikhs, people from a peasant environment (mainly middle-class farms), who served in the colonial army and police units, as well as their relatives, who did not fail to take advantage of the opportunity to leave. Prior to the adoption of The British Commonwealth Immigration Acts 1962 and 1968 by the Parliament of the United Kingdom, indians, as Commonwealth citizens, had unlimited rights to enter the territory of the former metropolis. Many of the new arrivals settled in industrial centers such as Leicester or Birmingham. Newly arrived migrants were employed in the textile and service industries. A significant part of them were employed in the services of Heathrow Airport in west London. The 1962 Act, which restricted the freedom of migration to the British Isles from the Commonwealth countries, actually already encouraged immigrants from India and other South Asian countries to settle on British territory. Soon their family members joined them. By the mid-1960s, most Indians arriving in the UK were listed as "dependants", as British government statistics described them. Dependents made up 75% of immigrants in 1965 and 80% in 1966. Migration flows from India to the former metropolis peaked in 1968, when the number of arrivals in the United Kingdom exceeded 23 thousand people. Migration flows from India intensified sharply between 1995 and 2005. Data from population censuses shows that the number of Indian migrants actually tripled between 1961 and 2001, from 166,000 to 470,000. To be fair, we note that the British, who were born in India, were also immigrants. In 2001, the Indian community in the United Kingdom numbered about 1 million people, with about a fifth of its composition coming from South Africa and former East African colonies. In 2007, the number of Indians in the UK increased to 1.3 million people. Until the early 1990s, the former metropolis remained the main haven for Indian migrants, but gradually their influx began to spread to Western and, to an increasing extent, Eastern Europe. For the period 1995–2005 about half of the migrants from India heading for Europe ended up in the UK. The rest preferred other EU countries, primarily Germany and Italy, which accounted for 18 and 12% of Indian migrants respectively. During the period under review, there was an increase, albeit slowly, in the number of Indians moving to Belgium and Sweden. Approximately 1,000 settlers per year settled in France, where the Indian community, which by the mid-2000s was about 65,000 people, largely consisted of ethnic Indians from Madagascar, the Seychelles, Reunion and Mauritius. For a better understanding of the reasons for the intensification of migration flows from India and other countries culturally related to this country, it is worth recalling the policy deliberately pursued by a number of European governments, the meaning of which was to invite skilled and relatively inexpensive labor from the “largest democracy in the world”. Thus, the temporary “green card” migration initiative that operated in Germany from 2000 to 2005 was initially focused on attracting Indian information technology specialists. In Italy, the Indian community was formed from those who initially entered the Apennines illegally, and subsequently received legal grounds for staying in the country. The vast majority of Indian migrants in Italy are from Punjab, working on dairy farms and other agricultural sectors. The development of information technology and related industrial clusters in India, the high-quality professional training of graduates from Indian institutes of technology - these and other factors predetermined the interest of the United States, Western Europe, and Australia in attracting skilled labor from India. Already in 2000, at least one third of migrants in the field of information technology in the UK represented India. In 2000–2004 more than 245 thousand migrants of this profession settled in the USA. In this kind of "migration competition" India was second only to Mexico, China and the Philippines. In the UK, in October 2004, a program was adopted to "naturalize" successful Indian students (as well as representatives of other Commonwealth countries) in the specialties: physical sciences, mathematics and engineering. The naturalization program has become an additional source of attraction to the United Kingdom of future specialists in the field of natural sciences and exact sciences from India, Pakistan, Bangladesh, Sri Lanka and Nepal. At the same time, this program has become a tool for managed migration to the UK. This practice is followed by the United States, Canada, Australia, New Zealand, Ireland, as well as France, Germany and the Netherlands. Demand for foreign labor with a high share of added intellectual value is ultimately determined by the characteristics of the socio-demographic structure of the population of Western European countries. The rapid “aging” of the workforce in the countries of the historical “core” of the current EU encourages the governing bodies of this organization to use such tools to attract future workers in the “knowledge economy” as educational fairs. At the same time, the use of foreign “intellectual production proletarians” is conceived as the provision of appropriate services without staying in a Western European country on a permanent basis. The movement of human capital from India and South Asian countries to Western Europe, in the understanding of local elites, has a twofold goal: 1) to increase the competitiveness of Western European economies in the world economy and at the same time 2) to deprive the countries of the South Asian region of independence in choosing national models for the development of the information technology industry. There are also restrictions even for this type of migration: the EU authorities are seriously afraid that the massive import of labor from India and other (not only South Asian) countries with a high share of added intellectual value may in the future undermine the reproduction of national scientific schools in Western European countries employed by developments in the field of information technology and their application in the economy. Finally, a group of political factors is of no small importance in the formation of the migration policy of the EU countries, in particular, dissatisfaction with the “substratum of other civilizations” in the Western European cultural environment on the part of forces supporting national populism. A significant proportion of Pakistani migrants to the UK originate from the Mirpur district in Azad Kashmir (area now under Pakistani control). The county has a long history of emigration. So, people from Mirpur worked as stokers on British ships, whose home ports were Bombay and Karachi. Subsequently, in the late 19th and early 20th centuries, some of them settled in the United Kingdom. Post-war Pakistani migrants in the British Isles took jobs in the textile factories of Lancashire, Yorkshire, Manchester and Bradford, in the car factories of the West Midlands and its largest city of Birmingham, filled the light industry development zones in cities such as Luton and Slough. Among other groups of migrants from Pakistan, it is customary to single out Punjabis who settled mainly in Glasgow, Birmingham and Southall, an area of west London that is often called “little Punjab”. The main migration flows from Bangladesh to the British Isles occurred in the first half of the 1970s. They were a reaction to civil unrest in the newly formed state and affected primarily the Sylhet region in the north-east of the country, located directly near the Bangladeshi-Indian border. Initially, Bangladeshi migrants were employed in steel mills and textile mills throughout the UK, but after the closure of these enterprises due to the economic crisis, Bangladeshi migrants rushed into small businesses, primarily in tailoring and catering, including restaurant business. Many people from Bangladesh actively joined the network of Indian restaurants, which was rapidly developing in those years, and subsequently took over a significant part of it. The first migration flow from the relatively developed Sri Lanka (before 1972 - Ceylon) to the UK, modest in size, falls on the 1960s-1970s. Migrants arriving from the former colony were employed in the UK National Health Service, as well as in other areas of the economy where white-collar workers work, becoming employees, administrators, managers, etc. For the most part, the migrants who arrived in the British Isles were from wealthy families and well-educated. They quickly found a use for their abilities in the United Kingdom. The second wave of Sri Lankan migration to the UK occurred in the 80s and was a product of the civil war that swept the island at that time. A significant number of wealthy Sri Lankan Tamils sought refuge in the former metropolis. The migrants of the second wave were not as well-born as their predecessors, however, like many refugees to the West, they did not belong to the "lower classes" of society. Sri Lankans are employed in the traditional segment of the service sector: in shops and restaurants, and some of them even managed to open their own business. CONSEQUENCES OF THE MIGRATION CRISIS OF 2015 Significant adjustments to the intensity of the movement of people from the territories of the “global South” to the space of the “historical North” were introduced by “truncated globalization” (which further exacerbated the contradictions between the leaders of the world economy, primarily the United States, Western Europe, Japan, with on the one hand, and the rest on the other). It gave rise to both active (“passionary” anti-globalization movements and projects) and passive (intensification of migration flows towards the original “core” of the EU) response of transitional societies – the main part of the ecumene. It is believed that the main migration “corridors” from transitional societies to industrialized countries will retain their main direction in the future, especially since demographic processes in the “global South” will continue to exert migration pressure on future generations in the coming decades. India (and South Asia in a broad sense) remains the territory of origin of the largest number of international migrants: 17.5 million Indians live abroad. For the countries of South Asia, a region with significant labor surpluses, migration eases labor market strains while contributing to poverty alleviation through remittances. It is therefore not surprising that the countries of the South Asian region remain the largest recipients of remittances in the world: in 2018, in countries such as Pakistan, Sri Lanka and Bangladesh, remittances from abroad exceeded 5% of the GDP of these states. It is also worth noting the factor of internal migration in the countries of South Asia: for the period 2001–2011 the urban population of these countries increased by 130 million people, which became an additional incentive for external migration. The most desirable destination regions for illegal migrants from South Asia are Western Europe, North America and Oceania. Demographers note that South Asian migrants bound for Western Europe are smuggled to their destination mainly through Central Asia and the Russian Federation, but also through the Middle East towards the Western Balkans. Finally, South Asians are driven to move to Western Europe and the Gulf region by the constant risk of natural disasters, which primarily affect Bangladesh, India and Pakistan. Obviously, the most socialized and adapted groups of the urban population of South Asia are ready to change their way of life. As of 2019, the largest migrant groups in the United Kingdom were immigrants from India, Poland and Pakistan. In the UK, France and Germany, there is a positive correlation between the high quality of human capital among migrants and their innovative activity. Migration flows are expected to influence the activation of the forces of national populism in Western Europe. Thus, after the migration crisis of 2015, the influence of the respective parties is rapidly growing, winning back positions from the centrists and social democrats. “People's parties” are becoming more and more successful, uniting various segments of the population, including those who are dissatisfied with the growing influx of “other civilizational substrate” into the countries of Western Europe. Thus, the policy of "traditional" parties contributes to the growth of the influence of the forces of national populism. Traditional parties justify their policy of accepting migrants by the need to integrate the labor market in the face of a growing shortage of skilled labor. According to traditionalists, the integration of the labor market has an inevitable consequence of strengthening the economic viability of society and increasing the viability of its political institutions, as well as the feeling of new arrivals of their belonging to the host society. The problem of socio-economic (as well as cultural) adaptation of migrants in the societies of Western Europe remains acute: in 2017 in the EU, the unemployment rate among migrants was 13.3%, while among the autochthonous population it did not exceed 6.9%. The coronavirus pandemic has made significant adjustments to the intensity of migration flows. As a result of the pandemic, the IMF blog writes, “migration flows suddenly stopped. The Great Lockdown is temporary, but the pandemic could reinforce general sentiments of insularity and disbelief in opening up to the outside world and have a more lasting effect on countries' propensity to accept migrants. Decline in immigration and high unemployment in destination countries will have a negative impact on the situation in its origin countries, especially the poorer ones, which are heavily dependent on the remittances that migrant workers send home”. The costs of migration also include the need to overcome geographical and linguistic barriers. Integration into the economic system of the host country implies a thorough mastery of its language, which is a precondition for the adaptation of migrants in a different cultural and social environment. So, immigrants from Bangladesh adapted well to the Apennine Peninsula because they were able to master the Italian language, which is difficult for the inhabitants of South Asia. As the Italians believe, people from Bangladesh are more industrious and less pretentious than Indians, and are ready to work in the most adverse conditions. Finally, migration from Bangladesh is economically beneficial for Italians: migrants with skills in light industry are welcome “guests” in the Apennines, since they make up a significant part of the staff of textile enterprises that manufacture products with the “Made in Italy” identification label especially valued by foreigners. Other dangers await the settlers. It is worth remembering that migrants to the West often find themselves in a “poverty trap” due to insufficient funds to pay the costs associated with migration. Nevertheless, experts believe that a one percentage point increase in migrant influx relative to total employment increases output by almost 1% by the fifth year of the resettlement in a new place. The desire of South Asians to move to Western Europe may be due to the fact that in the case of immigration to countries with emerging markets and transition societies, such a positive impact of labor productivity growth is not observed, primarily due to the difficulties of adapting to the conditions of local markets of underdeveloped countries. Migration can also create problems in the area of income distribution in the host society, since in some segments of the labor market, local workers (or people from Eastern and Central Europe who have already settled down in Western Europe) may suffer material damage, at least temporarily. Modern migration and migration policy in Western European countries continue to be influenced by the experience of previous decades. Thus, post-war migration to Western Europe from the former colonies was structured both by centuries of experience in moving along the route of the colony-mother country, and by a significant demand for relatively inexpensive labor for the needs of modernizing the economies of Western European countries after World War II. And some former colonial powers, such as the Kingdom of the Netherlands, were engaged in the movement of labor from their eastern possessions (Indonesia) to South America (Suriname). Historical memory is also invisibly present in the migration policy of France. So, in the 30s, almost a third of the population of this country was in the status of migrants, mainly they were immigrants from the countries of Southern Europe. Memories of the past, coupled with the migratory consequences of imperial existence, gave rise to the phenomenon of anti-immigrant political parties. The growth of the influence of the forces of anti-migrant populism was already observed in the 90s. Then the “National Front” quickly gained influence. As if responding to the challenge of anti-migrant populism, the right-wing government headed by E. Balladur is taking tough measures to limit the migration flow to the maximum and minimize emigration for political reasons. Subsequently, migration reforms were somewhat relaxed, but entry into France was strictly controlled, and the labor market was tightly regulated. The authorities of another colonial empire, Great Britain, acted in approximately the same way, pursuing a liberal line in relation to highly qualified migrants and implementing strict restrictive measures against refugees for political reasons. When assessing the prospects for resettlement of immigrants from India and other South Asian countries to Western European countries, it is necessary to take into account the EU factor, which has become a central element in building a new migration space in the unity of institutional rules for the movement of migrants and patterns of movement of peoples in the vastness of this integration association. It is important to keep in mind that migration is not a long-term solution to the demographic problems of the developed countries of Europe. It is assumed that most EU members, with the exception of France, Ireland and the United Kingdom, are doomed to a serious reduction in working-age populations in the coming decades. In addition, according to experts, labor markets in the EU countries are more inert and less flexible in relation to changing circumstances than in the US. Potential resettlers have to reckon with growing migration concerns in the EU's leading countries. At the same time, the attitude of receiving countries towards migration varies from country to country. Thus, in the countries of Southern Europe (Spain, Greece, Portugal), a “permissive” political culture that does not condemn migration is still influential. It is no coincidence that almost half of the migrants who have arrived in the EU since 2000 began their journey to Europe from Spain. However, even in Spain, new arrivals are viewed by public opinion not only as a socio-economic challenge, but also as a threat to cultural and ethnic identity. Since the early 1990s, the UK has been implementing a policy aimed at limiting the number of refugees and migrants as much as possible. Sometimes the authorities of the United Kingdom resort to frankly everyday motivation for their anti-migration actions, referring to the aggravation of the housing problem and the growth of social tension in London and southeast England. Nevertheless, the UK remains one of the preferred destinations for migration to Western Europe. Moreover, the very policy of the Western European states remains contradictory. On the one hand, the desire to appease public opinion results in uncompromising rhetoric against irregular migration. On the other hand, the desire to attract the skilled labor force necessary for the economy dictates an emphasis on the temporary nature of migration, which does not imply the granting of citizenship or residence permits. Nevertheless, since 2002, the number of people entering the EU has been an impressive figure - from 1.5 million to 2 million people. In other words, the conflict between the principles of the functioning of the nation-state and the guiding principles of multiculturalism defended by the settlers (as a method of managing interethnic relations in the host society) is becoming an integral part of the political development of many European countries. From now on, the confrontation between the principles of assimilation and multiculturalism becomes the axis of the entire socio-political development of the West. Until recently, multiculturalism had a strong influence on the attitude towards migrants in the Scandinavian countries, while assimilation has become clear in Greece, Austria, Poland, and Hungary. However, within the EU, the “multicultural consensus” is being increasingly tested for strength, in particular in Sweden. Similar trends are observed in the UK, France and the Netherlands. The sheer number of migrants can sometimes be misleading. Thus, the largest number of immigrants is recorded in large countries (Germany, France, Spain and the United Kingdom), while their highest proportions are noted in small states (Austria, Denmark, the Netherlands and Switzerland), which has an inevitable projection on the sphere of political relations. In addition, many countries do not keep statistics on the religious affiliation of the population, which is done in the name of the sacred principles of secularism. However, the situation is starting to change. Thus, in the UK in 2001, they began to take into account the confessional identity of the population, primarily to control migration flows from India and South Asia. At the same time, in the censuses in France and Germany, religious affiliation is not yet recorded. By the ratio of the principles of multiculturalism and assimilation, it is customary to single out several groups of European states. States that do not officially recognize the fact of multiculturalism (Germany, France, Greece, Denmark, Austria, Portugal, Finland, Ireland). At the same time, Italy, Finland, Germany, and Ireland practice bilingualism in relation to compact national minorities that have been living in these countries since ancient times. This principle does not apply to migrants. States that have delegated “linguistic powers” to several languages (Spain, Switzerland, Belgium). The envisaged status for French and Flemish in Belgium and the similar legal status for Catalan and Basque in Spain are intended to stop separatist tendencies in these societies and do not apply to the linguistic means of communication of migrants. States where multiculturalism has historically existed (United Kingdom, comprising England, Scotland, Wales and Northern Ireland), but its principles do not apply to migrants. States with a detailed policy towards migrants on a secular basis (Sweden, Norway), which is subjected to extensive criticism by various socio-political forces. States that initially accepted multiculturalism but subsequently rejected it (Netherlands). On the one hand, in Amsterdam and Rotterdam, the largest centers of multiculturalism, special services for helping migrants have been preserved. On the other hand, the main socio-political forces of the country and the parties expressing their interests are strongly opposed to further external migration, and not only from the “global South”. The attitude towards the principles of assimilation and multiculturalism is also manifested in the life attitudes and practical activities of various social forces. Thus, liberals and social democrats prefer the discourse of multiculturalism, while conservatives present themselves as the guardians of the values of the nation-state, Christian ethics and national culture. However, the above dichotomy acquires important clarifying characteristics and nuances when the analysis program includes the contradictory position of trade unions, on the one hand, belonging to the left side of the political spectrum, and on the other hand, forced by the logic of internal political development to counteract the migration of foreign labor and the adaptation of migrants in the host country. The attitude towards migration of the business community, conservative in its cultural orientations and attitudes, and at the same time interested in the import of foreign labor as a factor in “compensating” the insufficient demographic potential of an “aging society” and an instrument of economic growth within a particular Western European country, is also distinguished by a considerable originality. The initial unfriendly reaction of the local population to the new arrivals was dictated by fears of an exclusively economic nature, that is, the unwillingness to financially support migrants. Settlers were not then seen as a threat to national culture and national identity. However, as refugees settled in a new place, their families increased, religious buildings were built, and European politics were actively involved, the attitude of Europeans towards migrants began to change. The “clash of civilizations” (SP Huntington) in Europe intensified. The “racial riots” of 1958 in Great Britain can be considered the historical starting point for the escalation of conflicts on a civilizational basis. In this country, most migrants had the status of subjects of the British Empire, which definitely facilitated their entry into the arena of political life. Race remained at the heart of the issue of multiculturalism in the UK until at least the late 1990s. At first, no serious significance was attached to the factor of religion as a fundamentally different model of behavior in Western Europe. The spread of Islamist radicalism and terrorism, rooted, as some politicians now argue, in the Islamic value system, has become a kind of watershed. The essence of their ideas boils down to the fact that Islam is allegedly in a state of “permanent war” with the West in general and with Christianity and democracy in particular. This kind of sentiment is supported by a part of the Western European press, which regularly publishes anti-Islamic stories coming from the Middle East and Central Asia. Shifts in the positions of political parties in Western European countries on migration issues can be summarized as follows:  - there is a strengthening of the motives of national culture, the principles of assimilation and loyalty to European political values; - control over migration processes is being tightened, including increased attention to political refugees;  - the “horizontal” interaction of the migration authorities of the interested European countries in the field of control over the movement of foreigners to the EU countries is being strengthened;  - there is an actual refusal of the political elites of Western Europe from the principles of multiculturalism, as well as from the concept of "universal values";  - attempts are being made to introduce “rational” (that is, deliberately complicated) concepts of migration policy into the life of the EU countries;  - organizational resources and political powers of organizations supervising migration processes are increasing.  Such steps by the Western European elites, which do not formally abolish the principles of racial equality and the practice of religious rites by migrants, actually exclude the further development of the principles of multiculturalism. The situation of migrants is also complicated by the unwillingness of orthodox Muslim activists to compromise with the authorities of the host country in the sphere of religious rites, which undermines the position of supporters of multiculturalism in Western Europe. In the current conditions, militant opponents of multiculturalism are turning for support not only to Western European lumpen and outcasts, but also to a significant part of the middle class and anti-migrant parties that advocate Christian values. For their part, members of the Muslim community believe that the "war against terror" in the West, started in 2001, has escalated into a "war against Islam." In the smaller EU countries, fears of being “absorbed” by a foreign culture are constantly fueling radical, anti-immigrant sentiments.  It can be assumed that the events of the beginning of this century (September 11, 2001, the wars in Afghanistan and Iraq, terrorist attacks in the countries of Western and Southern Europe, etc.), as well as the European migration crisis of 2015–2016 laid the foundation for shifts in the public consciousness of the population of the EU leaders that are unfavorable for migrants. The dominance of multiculturalism was replaced by the idea of the nation-state as a community bound by the unity of interests and the norms of Christian culture. At present, in the broad sections of the population of Western Europe, the idea of the ongoing erosion of the fundamental principles of the life of society, which undermines its integrity, is being strengthened. In the current reality, even highly educated migrants are beginning to be seen as a threat to the national unity of society. Such mindsets are constantly fueled by the systemic economic crisis, which calls into question the once stable notions of multiculturalism as a force capable of simultaneously ensuring the prosperity and security of Western society. CURRENT TRENDS IN MIGRATION FROM SOUTH ASIA TO THE EU The migration crisis of 2015–2016 turned the problem of migration into a central political issue in the internal life of the leading Western European countries. In the new conditions, socio-political forces and parties that advocate tough restrictive measures against the influx of migrants of other cultures into the EU receive more and more significant support in the new conditions. However, the resettlement of immigrants from South Asian countries to Western Europe continues, which is confirmed by the example of the Netherlands and Italy. Migration from India and other South Asian countries to these two countries is mostly “productive” in nature: for the Netherlands, an influx of quality labor in the information technology sector is important, while Italy needs a “demographic dividend” in the agro-industrial complex. In the Netherlands, where there is a need for qualified personnel for a rapidly growing information technology cluster, educated migrants from India have benefited from the liberalization of migration policy in important segments of the economy. True, in this country, a kind of Damocles sword is suspended over the problem of migration: the murder of film director Theo van Gogh in 2004 by a native of North Africa stimulated the growth of anti-migrant sentiment in the Netherlands, which traditionally had a reputation as a “home of tolerance”. Note that the need for skilled workers in the Netherlands is higher than the EU average (by 10%). Here, as in other countries of Western Europe (primarily in the UK), expat Indians represent the most dynamically growing group of migrants. In the Netherlands, this community includes workers with the necessary professional training in the fields of information technology, consulting services, engineering, and enterprise personnel management. Significant Indian migration to the Netherlands began in the 1980s. By the beginning of the 2010s, about 22 thousand Indians lived in the country (compared to 9 thousand in 1996). The Kingdom attracts Indian migrants, first of all, with a favorable living environment, a high standard of living, the widespread use of the English language in the country, a tolerant attitude towards foreigners, etc.  Young educated Indians find themselves in the Netherlands in several ways. In addition to the traditional recruitment practices of Dutch companies, the factor of expanding the activities of Indian companies in the kingdom is becoming increasingly important. Thus, currently more than 200 companies from India, mainly from the information technology sector, are active in this country. It should be taken into account that the information technology sector, on the one hand, is a powerful driving force for economic growth in India, and on the other hand, this segment of the national economy accounts for more than 45% of all exports of services from India. Another way of delivering Indian labor to the Netherlands is the activity of transnational companies (TNCs) operating in the country, interested in attracting from India the profile workforce of the required quality. The reluctance of some Dutch people to perform certain types of activities in the information technology segment also plays a role. In this case, English-speaking and law-abiding Indians are perhaps the best candidates for high-paying positions in this sector. In other words, the Netherlands attracts skilled, expensive labor to the country, the price of which (as of the beginning of 2019) starts at 4.5 thousand euros per month and 3.2 thousand euros per month for people under 30 years old. In turn, the Italian economy is experiencing a need to increase the volume of dairy production, which opens up opportunities for the Indian labor force, primarily from the northern state of Punjab. Many migrants from India arrived in the Apennine peninsula without an accurate understanding of the nature of the Italian labor market and the peculiarities of Italian society. Some migrants have joined families of relatives who have already arrived in the EU. Arriving in the Apennines, Indian settlers from the Punjab countryside quickly adapted to northern Italy, an industrial zone that lacks quality labor for the agricultural sector. However, this was more a happy coincidence than the result of the successful functioning of the labor market due to the competent intervention of Italian government departments. Indian migrants have recently turned their attention to Italy. Thus, in 2003, the total number of Indian migrants to the Apennine Peninsula was fixed at around 35.5 thousand people, while by 2018 it had more than quadrupled to 151.7 thousand peoplef. As a result, India has now moved from 10th to 6th place in the list of the main “suppliers” of migrants to the EU countries (and to 5th place among non-EU countries). The configuration of the main concentrations of Indian immigrants to Italy has also become somewhat different. If in 2003 the Indians settled unevenly in the central subregions of northern Italy and in Rome, then at present the contours of settlement have become more dispersed: the Indians live mainly in ten provinces, and their largest concentration is in Brescia (14 thousand people per 200 thousand of the local population). Unlike the Netherlands, migration to Italy is often carried out on an unplanned basis - as a result of a situational shortage of labor in a particular segment of the labor market or as a situational reaction of the Italian migration system to migration flows from non-Western societies. It should be noted that in Italy the majority of Indians are engaged in low-skilled labor outside the agro-industrial complex, in particular in industry. In terms of the share of employment in this segment of the national economy, immigrants from India do not stand out among migrants who came from non-Western societies. The agricultural sector, being the area of activity of 28.6% (2016) of migrants, remains the main area for the application of labor skills for Indian migrants (24.1% of the total labor force from outside the EU countries). Even among self-employed workers who came from countries outside the EU, the share of Indians (7% in 2016) has increased almost sixfold since 2007. It should be noted that agriculture is a relatively small and ever-shrinking segment of the Italian economy, accounting for no more than 2% of the country's GDP and in which wages are only half of the total level in the national economy. However, when assessing the potential of the agro-industrial complex, nuances are important. Thus, with the declining role of agriculture, agricultural production in Lombardy, Emilia-Romagna and Veneto tends to increase - not least due to the hard work of Indian immigrants. The dynamic dynamics of development in these regions is shown by dairy production. An illustrative example is Cremona (population - about 75 thousand people), the administrative center of the Italian province of the same name. The resettlement of Indians began in the first half of the 90s with the use of tourist visas. Dairy production in the region was affected by the technological modernization of this sector, which began in the 60s and sharply reduced the demand for labor in Italian agriculture. However, the reduction in the supply of labor in the dairy sector was so significant that it was necessary to attract skilled labor from abroad, and this was a historic opportunity for hardworking Punjabis. A particularly significant contribution of Indian migrants was to the preservation of the cheese industry in the province of Cremona. In other words, the traditions of working on the ground were in demand in the north of Italy, where climatic conditions and temperature conditions almost perfectly match those of the Punjabi. Finally, the hard work of the Indians, their willingness to work on weekends and holidays, as well as overtime, are invariably noted by Italian employers. However, the interest of Indians to work in Italy has its own practical reasons. On the one hand, overtime work allows you to earn up to 3 thousand euros per month, receiving part of the payment “in an envelope” (a procedure common in Italy). Thus, the total income increases, which allows not only to send part of the proceeds to Punjab, but also to invest in the future - to invest savings in various sectors of the Italian economy. On the other hand, living on farms at work allows Indians to avoid the vicissitudes of the housing market in Italy, including discrimination against newcomers. In addition, employers highly appreciate the role of family ties among Indians as a stimulant of productive work. It is significant that employers have a positive attitude towards such qualities of Indians as internal balance, punctuality in the performance of official duties, enthusiasm for work, and note their lower predisposition to conflicts (both with the employer and with colleagues), which favorably distinguishes Indians from, for example, Egyptians and Moroccans. However, it should be taken into account that the Punjabis are a historically formed community of high-quality labor force. Their qualifications are highly valued far beyond the borders of India, whose national economy clearly lacks professionally trained workers capable of performing modern production operations. European migration crisis in 2015–2016 made significant adjustments both to the routes of movement of immigrants, and to the intensity of the human flows themselves from the “global South” to the “historical North”. India and other countries of South Asia remain one of the main sources of migration activity in the world. The examples of the Netherlands and Italy show that there is a “demographic dividend” in the South Asia region that can be used to benefit economic growth and development in industrialized countries. Both the Dutch and the Italians use the services of India's competitive populations. This experience, perhaps, should be used by Russia, which is in need of importing a “demographic dividend”. However, it is advisable to remember that the Indian authorities, conducting relevant negotiations with the Russian leadership, offer labor with low qualification characteristics for export. Defending national interests in such a specific area of bilateral relations will contribute to a better understanding by the Indian side of our real needs in the import of human capital and will confirm Russia's serious attitude towards multidisciplinary cooperation with the "largest democracy in the world." 

Defense & Security
Several automatic rifles raised up on the background of the Pakistani flag

Is terrorism returning to Pakistan?

by Zahid Shahab Ahmed

Earlier this week, a suicide blast ruptured the relative calm that had returned to Pakistan in recent years. The attack at a mosque in the northwestern city of Peshawar killed more than 100 people and stunned many Pakistanis who thought the days of such horrific suicide bombings were long behind them. While Monday’s attack was among the worst in the country in a decade, the blast doesn’t necessarily signal a return of terrorism so much as an escalation of a problem that never really went away. The Pakistan Taliban, also known as Tehreek-e-Taliban Pakistan (TTP), denied responsibility for Monday’s blast. Instead, a TTP faction, Jamaat-ul-Ahrar, claimed to be behind it. But in many ways, Pakistan’s deteriorating security situation is directly linked to a resurgent TTP and the increasing fragility in neighbouring Afghanistan since the Taliban’s takeover in August 2021. The Pakistani government had supported the Afghan Taliban for years, but the relationship began to break down after the Afghan Taliban offered shelter to TTP fighters and released thousands of terrorists from prison after taking power. The TTP not only appeared to be strengthened and energised by the Taliban’s return to power in Afghanistan, it also drew closer to the group. Last year, the Afghan Taliban facilitated dialogue between the Pakistani government and the TTP that led to a ceasefire deal. But by November, the TTP ended the five-month truce, claiming the government had not complied with all its requests, most notably the freeing of important TTP members. The result has been a slow but steady uptick in terrorist attacks. Documented acts of terrorism hit a high of 3,923 in Pakistan in 2013, with more than 2,000 deaths. The number of fatalities plunged to 267 in 2021, but last year, started to climb again to 365. Pakistan also only registered four suicide attacks in 2021, but there were 13 last year and four already this year. The TTP has claimed responsibility for most attacks. Decade-long war on extremismPakistan had achieved enormous strides against terrorism over the past 15 years, in large part because of its significant “Rah-e-Rast” military operation in 2009 and the “Zarb-e-Azb” operation in 2014. The TTP retaliated to the latter with an attack on an army public school in Peshawar in 2014, killing more than 130 children. This prompted the army to intensify its activities, and by 2017, it had largely routed the TTP. These security operations, however, only addressed the symptoms of the problem by pushing most TTP fighters across the border into Afghanistan. Terrorist attacks in Pakistan declined, but the problem didn’t go away. Despite the development of a counter-terrorism blueprint called the National Action Plan in 2014, the government’s security operations have been too limited in scope. They do not focus on all terrorist groups, but selectively target a few, such as the TTP. The National Counter Terrorism Authority has registered 78 terrorist organisations in Pakistan, but little is known what the government is doing to counter them. The National Action Plan also does not focus much attention on preventative measures like education. Addressing the root causes of extremismNonetheless, there is growing interest in Pakistan to invest more in promoting a stronger national counter-narrative against extremist ideologies, such as the Paigham-e-Pakistan, which the government developed with the help of hundreds of Islamic scholars. Moreover, there is a growing desire in policymaking circles to address the root causes of extremism, including the grievances of locals in the region previously known as the Federally Administered Tribal Areas on the Afghan border and Balochistan in southwestern Pakistan. The growing insecurity in Balochistan, for instance, is in part driven by Chinese investment, which is opposed by the militant Baloch Liberation Army. The group believes the government has exploited the region’s resources and ignored its development needs. It has targeted Chinese citizens in numerous attacks. The stakes here are very high for Pakistan, which is desperate for foreign investment. As such, Planning Minister Ahsan Iqbal has urged the government to focus on addressing the socio-economic concerns of locals, in particular young people, so they don’t turn toward extremism. The same grievances exist in the former tribal areas, where millions have suffered due to the government’s neglect. Until 2018, this region was governed under the notorious, colonial-era Frontier Crimes Regulation. This meant Pakistani laws did not apply and there were no local courts or political parties, allowing armed groups to thrive. The first time residents participated in any election was in 2019, more than 70 years after independence. When the government merged the tribal areas with a neighbouring province in 2018, residents believed their lives would improve. But this coincided with the resurgence of the TTP in the region, bringing new concerns about security and stability. What the state should do nowFor now, Pakistan’s counter-terrorism efforts are largely focused on TTP, but the country needs a broader approach. First, Pakistan needs to have its own house in order by addressing the ongoing governance challenges in the former tribal areas and Balochistan. Second, the government can no longer limit counter-terrorism operations to only a few areas. This will only increase the grievances of locals, who continue to suffer due to displacement and disempowerment. As terrorist groups are spread across the country, it is time the state tries a more holistic approach. With the TTP, it is already clear that attempting dialogue has not worked. It only provided the group more legitimacy and time for recruitment and fundraising. Instead of playing into the hands of terrorist groups, the government needs to address the structural causes of extremism, such as the marginalisation of millions living in peripheral areas, in particular highly vulnerable young people.