South Asian Region
Growing Importance To US

By Karl Inderfurth

PRESIDENT Clinton’s visit to South Asia last March-the first such trip in over two decades-combined with other livel visits to and from the region, demonstrate the growing importance of South Asia to the United States This change is a significant part of redefining U.S. foreign policy for the 21st century, post-Cold War world. And because this change is so much in line with large U.S. national interests, and enjoys such broad support across the political spectrum, I am confident that it will endure long beyond the current Administration.

Important

Countries throughout South Asia are increasingly important potential partners for the United States on a whole range of crucial emerging issues: from global peace to global climate change, from cutting-edge technological cooperation to common cause against the age-old ills of disease and poverty or the new scourges in international terrorism and weapons of mass destruction.

As part of this broader engagement, our economic officials are working with regional partners to create better global regimes for e-commerce and biotechnology, while our technicians explore clean energy options to preserve our shared environment. Our doctors and scientists are collaborating in government-supported projects to fight HIV/AIDS and other killer diseases, with public health programs and research on new preventive vaccines. Our diplomats are working to narrow our differences on norproliferation issues, which will help make the whole world safer. And our experts are discussing greater cooperation in international peacekeeping, to keep today’s trouble spots from becoming tomorrow’s crises.

While some have misinterpreted our expanding regional ties as a desire to "tilt" our policy towards India, the reality is that our overall strategy is to improve relations with the South Asian region as a whole, according it higher prominence and priority in the overall U.S. approach to the world. The fact is that during the second Clinton Administration there has been an unprecedented series of high-level American visits to the region, and of return visits by South Asian leaders.

The list includes not just president and Prime Ministers, but also foreign ministers and ministers of commerce, finance, energy and senior officials dealing with public health, counter-narcotics, counter-terrorism, and many other common concerns.

What explains this new American tilt toward South Asia? The answer is simple. We recognize that , as an increasingly dynamic region that is home to more than one-fifth of humanity, the futures of South Asia and of the United States are inevitably linked. Ths is already true in more areas than ever before, from trade and commerce, to science and technology, to global environmental and medical progress-and also, to an ever greater extent, in terms of people-to-people ties of kinship and culture between our proudly diverse societies.

Looking ahead, we also recognize the enormous potential of the vast South Asian region, especially if it can forge a future free of the tragic elements of its past. I have in mind particularly the regional, ethnic, or religious conflicts that have cost far too many precious lives and resources.

We can also imagine a future in which the peoples and nations of this region move toward greater cooperation and better integration into the global political and economic mainstream, and are able as a result to focus more sharply on their own social and human needs. Part of this process, we believe, could be advanced through regional organisations, such as the South Asian Association for Regional Cooperation (SAARC).

Other promising prospects are offered by more specialized cooperative ventures like the South Asian Regional Initiative on Energy (SARI), wich could help in harnessing the region’s huge but untapped cross-border markets for hydropower, natural gas, and other resources highlighted during President Clinton’s visit. And another crucial part of South Asia’s upward trajectory, we are convinced, will be a stronger engagement and wherever possible a closer partnership with the United States.

Opportunities

With all this in mind, the United States will keep looking for new opportunities to strengthen our ties with every nation in the region, each on its own-merits-from Nepal in the north to Sri Lanka and the Maldives in the south, and everything in between. It used to be said that South Asia was on the backside of the U.S. diplomatic globe. No longer. That globe is beginning to turn. From here forward, we hope to have strong and growing relationship across South Asia, which promises to take its rightful place higher on the scale of American foreign policy priorities in the years ahead.

(Karl Inderfurth is the present US Assistant Secretary of State for South Asia)

POL Prices: Time For Realisation

By Mohan K.C.

POL PRODUCT prices are something which effect the whole economy of the country. In a country where only 15 per cent of the people have access to electricity which is renewable and sustainable, despite the huge investments required, the dependence on kerosene for cooking and lighting purposes and for powering the transportation system, the hikes effected recently has its own implications in the long rune.

Observation

It may not be an incorrect observation that the economy of the country is not doing very well despite the various measures that have been taken and more in the offing. But the vulnerability is quite obvious. It may be worthwhile noting that most of the people in the country still depend on fuel wood as a source for running the hearth. This is all the more so as the majority of the population live in the rural parts of the country. The easiest way is to collect wood from the forests which, unfortunately, is dwindling at a fast rate.

Though there are annual and other programmes aimed at afforestation to offset the amount of deforestation that is taking place they have not been successful to the desired level. This is a cause of worry because how much effort is made the dependence on wood as fuel will not diminish in the years to come. This fact is all the more borne because the alternate sources of energy are not easy to develop. We may talk of renewable energy but there has to be adequate investment forthcoming if it is to make the dent that is significant.

The increase in the prices of petrol or cooking gas may not have the serious impact as has been the case made by some sections of the society. But the diesel price hike is definitely going to effect the majority if not all. Land or surface transport is what is important for a country like Nepal. And once the diesel prices goes up it has a commensurate effect on the prices of all commodities transported.

The talks of developing hydro-electricity projects to the envisaged level cannot materialise just because of the terrain of the country and also the high investment required. Having the capacity does not necessarily mean that the returns will be automatic. Though, at present, micro hydel projects holds promises but there is a need for the private sector to go all out for it. Moreover, the Nepal Electricity Authority has provisions to buy what is produced by the private sector projects.

In fact, the comparatively low investment hydro projects that work on the principle of run-of -the-mill has gained some amount of popularity. But they have the disadvantage that during the lean season or when there is more demand for power they cannot meet it.

All this is not to suggest that we go more for imported fossil fuels as the present and previous increases in prices have shown how the economy can suffer. The alternatives must be searched though that will take some time. For the present the dependence on imported fuels cannot be done away with altogether. But serious thoughts must be given to alternate sources of energy so that the country be somewhat self-reliant.

The international prices of petroleum products has its own way and sudden increases can have long term repercussions. If only last year diesel prices increased by 48 per cent and kerosene by 23 per cent, the increase is all the more dramatic for kerosene standing at 100 per cent. The justification, to some extent, is valid that the government cannot endure the huge amount of subsidy that is being provided. The case can be looked from a different angel too. Kerosene as such is used in most parts of the rural areas for lighting purposes only while for cooking purposes it is mainly the urban centres. But it must not be forgotten that the urban areas too have a significant population who use kerosene for cooking purposes so the obvious demand for it.

The restaurants, hotels and those who can afford heaters fired by kerosene are the major consumers and they are concentrated in the urban centres and not in the villages. The hefty increase in kerosene prices is definitely going to affect them. But it must be remembered that there are many families living in cities who cannot afford electricity or gas for cooking purposes and so have to depend on kerosene. For such people the price increase crease a big dent in their pockets.

That may be a worry somewhat lesser degree compared to the increase in the prices of goods which have to be transported by road. Already there has been in the increase of commodity prices including the fares charged by buses. trucks and minibuses. That is going to add to the erstwhile expenses of any family. It is not only the urbanites who will have to bear the extra burden but the rural folks too will have to meet it.

The international petroleum prices may further increase or decrease, only time can tell. As a country wholly dependent on imports the burden is already quite unbearable. This necessarily means that there is an urgent need to search for alternative sources of energy which can be met within the country itself. For this purpose solar energy, biogas, wind energy and others offer a way out. But the need is to lay priority to them in the form of extra funds for development and research.

Right policies

Some thrusts have been made in the country as far as tapping solar energy and biogas is concerned but it is far from adequate. Realisations must dawn that dependent on fuels whose prices are ever increasing cannot be in the interest of the country which does not have good economic track record. Maybe a few rupees more could help in harnessing energy that nature has so generously provided to the country. It is a matter of the right policies and programmes to come from the government.