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India � In a Global Role (Unofficial translation) - Handelsblatt

20-04-2006


With the oncoming visit of the Indian PM, a new economic power is coming into the limelight. And this is a test for Germany's will to recognise changes in geopolitical paradigms and to co-shape it. Manmohan Singh is a Head of Government, who as finance minister enforced comprehensive liberalisation in the Indian economy since 1991. It became a grand success story. German companies did not recognise it for a long time.

But the guest from India is not only an economic reformer. His greatest achievement since assumption of office two years ago lies in the foreign policy: In March the USA conferred on India the title of "world power", accepted the country into the "empire of the good�. And this, despite the fact that India's nuclear arsenal was a thorn in the flesh of Washington, a reason why it imposed sanctions. "Together we can change the world", celebrated the US President Bush recently the new alliance between the most powerful and the largest democracies in the world.

For India's basic values tally with those of the West and thus there is a convergence of many interests. The USA has realised that the international economics and with it the international political centre of gravity in the 21st century is shifting to Asia. And a peaceful power, the USA is determined to co-shape this development. That is why a bilateral nuclear agreement was signed, although India still refuses to sign the nuclear non-proliferation treaty.

The deal is susceptible to criticism at the most for its timing in view of the nuclear dispute with Iran. However, unlike Pakistan, no one could ever accuse India of having promoted proliferation of nuclear weapons. This creates confidence.

This gives the country with the second largest population in the world a key role in the shaping of a global security architecture: as a hinge between an economically prospering, but politically divided South and East Asian region and a volatile Muslim world. India is aware of its potential as exporter of democratic values and stabilily in a troubled region. And it wants also to be treated by its partners accordingly.

But the German politics has till now looked at the subcontinent mainly through the economic perspective alone. The agenda of Singh�s visit reflects this: the visit focuses on the so-called "soft" issues like the deepening of cooperation in the areas of renewab1e energies and clean coal power plants.

Indians have, of course, a vital interest in intensifying the economic and research co- operation. The same is applicab1e also to the areas of security, arms and nuclear technology. And in these fields they expect more than what Germany is offering till now. One is working on a bilateral security agreement, but the German side is less ambitious here than the Indian side.

So long as Germany finds it difficult to define its national interests in dealing with India free from historical and ideological ballast, the much-lauded strategic character of the relationship will remain lifeless in important points. This will lead to a setback for Germany compared to Delhi�s other partners. France, Great Britain, Canada and Russia support actively an amendment of the rules of the �Nuclear Supplier�s Group�, which would give India access to civil nuclear technology. Berlin will only stand in the way of a consensus.

Increasing number of countries from USA to Japan are pressing ahead with security policy cooperation with India. This is true even of China. Peking, wants to prevent that the Indian neighbour becomes a cornerstone in an American strategy of "containment" of the Peoples Republic. And China knows that this does not in any way contradict India's interests.

The relations with India is a litmus test to see whether Germany realizes the far reaching implications of the epochal changes in Asia and correspondingly reacts both politically and economically. American and Japanese companies have since long recognised the strategic and economic significance of India. They increase their investments in the most important future market along with China. So long as Germany sends weaker political signals in the direction of India, the risk that German companies will discover the country only when the competitors have achieved a decisive advantage there, will increase. Volkswagen has already experienced it on account of its one-sided China-euphoria.