December 16, 2022

Will WC final be remembered for 2 individuals or 2 teams?


The following article originally appeared in the Hindustan Times on December 16, 2022. An excerpt is below. 

Football is a team sport, but the exploits of individuals are often fondly recalled decades later in the popular consciousness. Mention Pele or Maradona, Eusebio or Cruyff and you’re far more likely to elicit a response from the casual fan than by recalling the West German team of 1990. At first glance, this week’s World Cup final poses an enticing contrast between an Argentina associated with the individual brilliance of Lionel Messi against a French squad defined by its collective competence. [Read More]

November 12, 2022

What Midterm Results Will Mean for the US and the World



The following article originally appeared on November 12, 2022 in The Hindustan Times.

This should have been a United States (US) midterm election for the Republican Party to win handily. There is widespread public dissatisfaction with President Joe Biden and his Democratic Party’s handling of the economy, including high inflation and supply chain disruptions. And yet, as votes continue to be counted, control of the US Congress remains uncertain. The Republicans generally performed well in Florida, Ohio, and Texas, fared poorly in other battleground states such as Pennsylvania, Wisconsin, and Michigan, and emerged with mixed results in Arizona and Georgia. It is likely that the Republicans will win a narrow majority in the lower chamber, the House of Representatives, while the Democrats may retain control in the Senate, especially were they to win a run-off election in Georgia next month.

Public opinion had pointed to a strong Republican showing. Seventy-five per cent of American voters believe the economy is doing poorly, 72% feel the country is going in the wrong direction, and 66% want to see substantial change in Washington. Voter turnout among younger voters was also low: Those aged under 45 comprised only about 30% of total midterm voters. Other factors proved mixed. Biden’s approval rating is only 44%, but almost half of the voters felt his presidency was not a factor influencing their vote. Although inflation topped the list of voter priorities (32%), it was followed closely by abortion (27%), and 60% of Americans favour legalising abortion in all or most cases. While Republicans performed well with White female voters (53%), they fared poorly among minorities.

The mixed results could have several, somewhat contradictory, political implications. Some of the blame among American conservatives has already focused on former President Donald Trump. Several candidates backed by Trump performed poorly or were perceived by unaffiliated voters as unsuitable.

At the same time, the result has strengthened the hand of some Republican governors and legislators who share Trump’s political positions on social issues, immigration, climate policy, trade, and foreign intervention. Florida governor Ron DeSantis, who won re-election by a sizeable margin, cements his position to potentially run for president in two years. In the House of Representatives, the conservative factions — the Freedom Caucus and Republican Study Committee — will have greater sway over the legislative agenda, given the Republicans’ slim majority.

US foreign policy and national security remain the primary preserve of the presidency and the executive branch of government. Congress, however, plays several important roles. First, it controls the purse strings and can facilitate or block foreign military or economic assistance. Second, it can provide oversight, potentially embarrassing the Biden administration, such as through public hearings. Speculation before the election, for example, concerned potential hearings on the disastrous US withdrawal from Afghanistan. Third, Congress needs to confirm senior officials. While much of the focus will be on federal judges — given the divisiveness of various social issues — this power has foreign implications as well, as indicated by the lack of Senate approval for a US ambassador to India.

While some foreign policy and national security issues — Ukraine, West Asia, trade, and treaties — might become more contentious, other areas enjoy greater bipartisan consensus. It is quite probable, for example, that a divided Congress will pass legislation to enable the US to better compete with China. Despite different priorities — industrial security, employment, human rights, military competition — both the Republicans and Democrats have their own reasons to adopt more competitive, even confrontational, policies towards Beijing.

India also remains an area of broadly bipartisan consensus, although again with different emphases. Both the Republicans and Democrats see the US partnership with India as integral to the balance of power in the Indo-Pacific. Both are conscious of appealing to Indian-American voters, and both want cooperative economic and trade relations with India, although naturally with a greater emphasis on Indian market access. While the Democrats recognised the need to partner with India on climate change and are often appreciative of steps being taken by New Delhi in that regard, the Republicans see growing Indian energy demand as a valuable opportunity for American oil and gas exports. Differences between the parties — as on social issues and on Russia — are unlikely to complicate relations with India significantly. However, the potential for immigration reform, which was already remote, may now be further set back by a legislative deadlock.

Overall, the midterm results will have two major implications for the US. For the next two years, Biden’s ability to pass legislation in support of his governance agenda will be compromised, although perhaps less than had been anticipated. Beyond the immediate economic relief associated with the coronavirus pandemic, Biden and his Democratic allies in Congress had managed to make some important legislative breakthroughs over the past two years, including on gun control, the climate crisis, semiconductor manufacturing, and infrastructure spending. In some cases, these laws received the backing of certain Republicans.

The other big implication will concern the 2024 US presidential election. Neither Biden, who will be almost 82 years old, nor Trump, who will be 78, have ruled out the possibility of running for president again. But should either or both choose not to contest, the field will be open. On the Republican side, DeSantis enjoys the biggest national profile, but others potentially in the mix include former vice president Mike Pence, ex-secretary of state Mike Pompeo, former South Carolina governor Nikki Haley, and Texas senator Ted Cruz. The Democratic nomination would be even more uncertain, with vice president Kamala Harris hampered by low approval ratings, and several Democratic governors and cabinet members potentially waiting in the wings.

A divided Congress, a divided Republican Party, and a divided America may still be able to get some things done in the next two years. Although some trends do point to greater turmoil and gridlock, others suggest areas of potential compromise and change, with inevitable implications for the rest of the world.


October 18, 2022

India Plays a Crucial Role in US Semiconductor Plans


 The following article originally appeared on October 18, 2022 in The Hindustan Times.

In February 2021, just five weeks into his presidency, United States (US) President Joe Biden held up a tiny semiconductor chip in the White House. “This semiconductor is smaller than a postage stamp, but it has more than eight billion transistors,” he said. “These chips are a wonder of innovation and design that…enables so much of our modern lives to go on — not just our cars, but our smartphones, televisions, radios, medical diagnostic equipment, and so much more. We need to make sure these supply chains are secure and reliable.”

More than a year later, and after considerable political wrangling, the US Congress passed the CHIPS Act. This legislation will channel billions of dollars in subsidies to the US semiconductor industry to secure a vital component for future manufacturing, compete with China, and ride the next big wave of economic growth. There is one major problem with this plan: The US doesn’t have the people to do the job.

Even today, when the US produces only about 12% of global semiconductors, the sector faces a shortfall of about 90,000 workers, including technicians, scientists, and engineers. Conservative estimates suggest that the workforce required to take full advantage of the CHIPS Act could include another 350,000 professionals over the next decade.

The US education system does not create enough skilled workers for emerging technologies, including semiconductors. The variation in education policies between states inhibits a national human resource strategy. Younger Americans are less drawn than their counterparts in many other countries to science, technology, engineering, and mathematics (STEM) education, even though the resulting careers are lucrative. Furthermore, investments made today in primary and secondary STEM education will take at least a decade to reflect in the workforce.

This is where India comes in. India is the second largest producer of STEM graduates after China, churning out about five times as many as the US each year. Indians are also the world’s most mobile tech workers.

While the quality of graduates’ skills is variable, Indian-trained scientists and engineers play a major role in tech research. On Artificial Intelligence (AI), for example, Indian university graduates — almost all working abroad — account for one in 11 leading researchers globally, the fourth most after the US, China, and Europe, according to MacroPolo’s Global AI Talent Tracker. Among the best of the best AI researchers, Indian university graduates account for the second largest number, after only US graduates.

A similar story can be told about Indian-born innovators. Approximately one in nine billion-dollar start-ups in the US was founded by an Indian immigrant, the most by immigrants from anywhere, according to the National Foundation for American Policy. Overall, immigrants to the US accounted for 20% of the US high-tech workforce a decade ago, and that proportion has undoubtedly increased. But for the US, sourcing Indian talent is no longer easy. For one thing, America is no longer the sole destination. Already, for every three top Indian tech researchers based in America, one is working in Canada, Australia, or Europe. While language remains a barrier, even Taiwan and Japan are looking to Indian talent to fill specific roles.

A further development involves India’s own semiconductor ambitions. Recent steps represent the third attempt by India — after the 1980s and mid-2000s — to develop a semiconductor industry. The Indian government has now pledged about $16.7 billion in financial support, and early steps include a proposal from the Taiwan Semiconductor Manufacturing Company (TSMC), a Tata assembly and test unit, and a joint venture between Vedanta and Foxconn. As India makes early moves towards manufacturing chips, it will contribute further to the already heated global competition for tech workers.

But the biggest challenges the US faces in attracting Indian talent may be self-imposed, and relate to outdated immigration policies. High skill H-1B visas are limited to 85,000 per year. Just 140,000 annual employment-based green cards (of which less than half go to principal workers) have resulted in a years-long backlog, although there was an uptick after Covid-19.

Since comprehensive US immigration reform is unlikely, given the politically fraught question of undocumented migrants, some partial solutions have been pursued. Workers with “extraordinary talent” have been encouraged to apply for O-1 visas. Innovators who can afford it are eligible for EB-5 investor visas.

Reports commissioned by Congress have recommended new special visa categories, increased job portability for O-1 and H-1B visa holders, and larger quotas for skill-based green cards. While industry and policy professionals can make a strong case for these and further steps, politics gets in the way. A Republican-led Congress and a Republican presidency are less likely to entertain such proposals.

Ultimately, the success of the US semiconductor industry — deemed a topmost economic and national security priority by the government — will depend on acquiring the requisite human capital almost overnight. Investments in a domestic American STEM education ecosystem will take years to reap results. Finding creative solutions to the high-skill immigration dilemma may, therefore, be the only solution. If properly designed and implemented, it could help both the US and India meet their economic and supply chain security objectives.


September 24, 2022

Post-Abe, the Contours of India-Japan Relations



The following article originally appeared on September 24, 2022 in The Hindustan Times.

Former Japanese Prime Minister (PM) Shinzo Abe, who was assassinated in July, was unusual in having made relations with India a topmost priority. His long tenure as Japan’s leader — almost nine years in two stints between 2006 and 2020 — witnessed a transformation in Tokyo’s ties with New Delhi, including accelerated defence and security cooperation, strategic Japanese investments in India, multilateral coordination (such as Quad), and a $75-billion bilateral currency swap agreement.  

Naturally, Abe’s impact on Japan was much broader, and his efforts with India should be placed in context. On foreign policy, he consolidated the United States (US) -Japan alliance, repaired Tokyo’s ties with Australia and Southeast Asia, and made unprecedented outreach efforts to Africa and West Asia. At the same time, he failed to make much headway on territorial disputes with Russia and historical differences with South Korea. Perhaps more significantly, Abe also transformed Japan’s security profile, upgrading the defence ministry, establishing a National Security Council, accelerating the development of a defence-industrial ecosystem, and reinterpreting the Constitution to give Japanese forces more leeway in supporting allies and partners.  

Economically, Abe gave an initial jolt to Japan’s monetary and fiscal policies and tried to promote women in the workforce, but his attempts at structural reforms proved incremental. Politically, he ensured the continuing primacy of his Liberal Democratic Party (LDP). Abe’s assassination less than two years after stepping down as PM leaves a political vacuum that may affect the pace – if not necessarily the direction – of Japan’s future trajectory. This, in turn, has implications for Japan’s partnership with India.  

Japan’s current PM Fumio Kishida, who is supported by Abe’s faction, has strongly emphasised economic security, the new buzzword in Tokyo. This has involved the passage of related legislation and the appointment of a minister to oversee economic security. In practice, this means lessening Japan’s dependence on China through smarter decoupling, strengthening cybersecurity and access to critical minerals, tightening export controls on sensitive technologies, and guarding intellectual property. On national security, Kishida is likely to continue Abe’s approach of strengthening the US alliance, building up Japan’s independent strategic capabilities, increasing the defence budget, and planning seriously for Taiwan-related contingencies.  

However, differences appear in Kishida and Abe’s attitudes to international diplomacy. Kishida is keen, for example, on better managing relations with China, including through high-level meetings with senior Chinese officials. Such a thaw was contemplated earlier by Abe, who had invited China’s leader Xi Jinping for a State visit, but the distinction lies in Kishida’s relative emphasis on coexistence over competition.  

Another difference has emerged in attitudes towards the developed and developing worlds. Kishida has proved eager to stand by Europe and the US on the Ukraine war, and swiftly condemned Russian aggression and supported sanctions on Moscow. While this has won him plaudits in Washington and Brussels, it comes at the risk of Japanese influence in much of the developing world, where Abe had previously made significant headway.  

Further political complications have arisen due to the association of certain LDP politicians with the Unification Church, a religious movement. A grudge against the Unification Church was reportedly the motivation behind Abe’s assassination. In the aftermath of those revelations, Kishida reshuffled his cabinet to sideline politicians tainted by association with the movement. The controversy had resulted in a slide in Kishida’s popularity ratings, but also marginalised some politicians seen as capable executors of Abe and Kishida’s policy agenda.  

Japan’s relations with India are currently healthy but, in some respects, the proverbial glass appears only half full. On the economic front, trade between India and Japan has grown and diversified, the currency swap has proved effective, and Japanese investment is flowing to India both directly and through intermediaries such as Singapore and London. Newer aspects of economic engagement have also emerged, which is encouraging. These include green technology and the establishment of Japanese research centres in India.  

At the same time, Japanese technology transfers have become more restrictive. This is motivated primarily by concerns about intellectual property theft and reverse engineering in China, but also potentially affects emerging partner countries such as India. Rather than diversifying to other foreign markets from mainland China, many Japanese companies have opted for reshoring back to Japan. Infrastructure investment also presents a mixed picture. While there has been progress on rail systems (especially metros) and highways in northeast India, Japanese companies do not play a particularly big role in India’s port and airport development.  

On defence and security, military exercises such as Dharma Guardian and Malabar have become more frequent, port calls are now routine, and a logistics agreement has been operationalised. The recent JIMEX bilateral naval exercises broke new ground, and several strategic initiatives — such as on maritime domain awareness — have been subsumed under the Quad framework. Yet defence industrial cooperation, such as on unmanned ground vehicles, has been slow. Today, both sides are exploring more modest cooperation over major initiatives where their demands and capabilities do not necessarily align.  

Irritants have also emerged. There was mutual finger-pointing earlier this year after India denied a Japanese military aircraft clearance to access a United Nations depot. There was also some disgruntlement in Japan concerning India’s involvement in the Vostok military exercises with Russia, given the proximity to the sensitive disputed territory.  

While economic ties can be accelerated and some security frictions can be overcome, a major structural impediment in India-Japan ties remains people-to-people engagement. The pandemic has not helped, but the fact remains that Japan’s immigration system is rigid. A special programme for skilled workers is restricted to certain regions of India, such as the northeast, and a handful of sectors, such as nursing. Such restrictions inhibit the kind of broad-based partnership that India has been able to forge with countries in North America, Europe, and West Asia.  

If India-Japan relations have achieved much, it is largely due to Abe’s efforts and the enthusiasm reciprocated by his Indian counterparts, Manmohan Singh and Narendra Modi. Not long ago — after India’s 1998 nuclear tests — Japan called upon the rest of the world to condemn India’s actions. Bilateral ties started to brighten after 2000, but only accelerated in fits and starts. The fact that relations with Japan enjoyed broad political support in India helped.  

Today, the India-Japan relationship is on a qualitatively different plane. But as structural challenges make themselves felt in the relations, the biggest tribute to Abe’s legacy would be to find ways to surmount some of these hurdles. 


September 22, 2022

Democracy in Indian Foreign Policy

The following report, co-authored with Ammar Nainar, was originally published by ORF America in September 2022.

Introduction

India has often branded itself as the ‘world’s largest democracy.’ Its very existence as a large, diverse, developing democracy is an extraordinary feat. Yet the conventional wisdom articulated by both Indian commentators and foreign observers is that democracy has rarely played a role in India’s foreign relations.

This reading is somewhat questionable. It is true that for much of India’s independent history its relationships with the United States and other developed democracies in the West were marked by differences and irritants. Like many other countries, New Delhi often prioritized short-term interests over values in its regional diplomacy. Moreover, India was often hesitant about employing the rhetoric of democracy promotion or coalition-building.

At the same time, for decades, India supported decolonization movements in Asia and Africa, both rhetorically and through material means. It was a vociferous proponent of boycotting South Africa for its discriminatory Apartheid policies. India also assisted countries in the developing world in establishing governing institutions and in the conduct of elections.

Recent developments – most notably the rise and assertiveness of the People’s Republic of China – have led to a rethink about the role of democracy in Indian foreign policy. In 2005, former Indian prime minister Manmohan Singh joined then-U.S. president George W. Bush in promoting the United Nations Democracy Fund. More recently, current prime minister Narendra Modi participated in the inaugural Summit for Democracies organized by President Joe Biden’s administration. At the same time, and to much less fanfare, India has increased support for democratic institutions in its nascent development assistance programs focused on South Asia and Africa and in its international training and capacity building efforts.

Between December 2021 and March 2022, the Observer Research Foundation America (ORF America) and Observer Research Foundation (ORF) co-hosted a series of five virtual round- tables on the role of democracy in Indian foreign policy. The roundtables, held under the Chatham House Rule, involved participants from the Indian strategic community, including the Indian government, as well as 17 subject matter experts.

This report provides a summary of those discussions as well as broader conclusions; as such, they do not necessarily reflect the views of the authors.

The major conclusions were:

• Democracy is an important aspect of India’s foreign policy outlook, even if it is not – and is unlikely to become – the leading determinant.

• The alignment of values and interests is most pronounced in India’s near neighborhood, as weak institutions compounded by growing Chinese influence have adversely affected Indian interests.

• The primary tools of Indian democratic support for other countries include development assistance and capacity building, but also aspects of diplomatic and military support.

• Sharper geopolitical alignments create opportunities for deeper democratic cooperation involving India. This has been reinforced by the Russia-Ukraine war, growing ties between Moscow and Beijing, and the development of the Quad.

• India has often had to balance short-term interests with longer-term values, as is most evident in recent policy towards Russia, Myanmar, and Afghanistan. In this respect, India is hardly alone among major powers.

• There is a strong generational divide in India’s strategic community on the role of democracy in foreign policy; by and large, an older generation adheres to a more values-neutral approach to international affairs while younger professionals place greater emphasis on the importance of democracy.