September 8, 2008 ☼ arms control ☼ climate change ☼ Economy ☼ energy security ☼ Foreign Affairs ☼ India ☼ media ☼ non-proliferation ☼ nuclear proliferation ☼ nuclear weapons ☼ Security ☼ United States
This is an archived blog post from The Acorn.
Mira Kamdar is right about one thing: not “all opponents of the deal (or even those who dare question some of its provisions)” should be smeared as “nonproliferation ayatollahs” and “enemies of India”. Some are merely confused. Like Ms Kamdar herself, for instance.
In her diatribe in the Washington Post she is not even indulging in the flawed guns vs butter argument. Hers is a flawed butter vs butter argument, for “The US-India deal will divert billions of dollars away from India’s real development needs in sustainable agriculture, education, health care, housing, sanitation and roads.” Such a tall claim would have required some logical arguments using facts to connect claim to conclusion. She doesn’t offer any. But just look at some overall numbers and you’ll realise how ridiculous Ms Kamdar is. According to her own figures, the deal will result in US$100 billion of business for US companies over 20 years. That is, on an average, US$5 billion a year. India’s annual GDP is around US$1000 billion. Even if we ignore economic growth, the deal is worth a 0.5% of GDP per year. Even if all of that came from public funds, that still leaves a lot for agriculture, education, health, housing, sanitation and roads. When you consider that the Indian economy is expected to grow between 6-8% per annum and that India could well permit private investment in the power sector, it turns out that it’s not a big deal after all.
Now, money doesn’t mean much to Ms Kamdar. She sees it as a bad thing that the deal will enrich “deep-pocketed” US and Indian corporations. But then at the next moment, money goes from being a bad thing to an invisible thing. For she says “India gets unfettered access to nuclear fuel and technology, and it doesn’t have to do anything in return.” The US$100 billion over 20 years suddenly disappeared. So do “the tens of thousands of jobs”.
She also contends that the deal “will distract India from developing clean energy sources”, for even “under the rosiest of projections, (nuclear contributes) a mere 8 percent of India’s total energy needs—and won’t even do that until 2030.” Now, nuclear energy is clean energy, and it is available now. And it is too presumptive of Ms Kamdar to suggest that other sources will be ignored, not least when India ranks fourth in the world in wind power generation.
Ms Kamdar is even more confused about geopolitics. The deal “risks triggering a new arms race in Asia…a miffed and unstable Pakistan will seek nuclear parity with India, and China will fume at a transparent US ploy to balance Beijing’s rise by building up India as a counterweight next door.” No facts again, but here is one. Pakistan’s arsenal of warheads is estimated to be larger than India’s. It has an opaque deal with China which allows it to continue developing its arsenal. To seek nuclear parity then, Pakistan might have to give up some of its warheads. And why, what’s wrong with China fuming at being balanced? Perhaps Ms Kamdar truly believes narratives of China’s “peaceful rise”. Those who don’t—and India certainly shouldn’t—would do well to buy insurance.
Ms Kamdar’s piece is addressed to the US Congress. She is asking it to give up a lucrative commercial opportunity that could rekindle the United States’ moribund nuclear power industry. She is asking the US not to even attempt to balance the rise of China’s geopolitical power. And she is implicitly asking the US Congress to continue backing a flawed non-proliferation regime that didn’t prevent, apprehend nor punish acts of proliferation when they occurred. Well, that’s for the US Congress to chew on.
The rest of us still have to get back into our chairs, having fallen off after reading that the deal was responsible for corrupting Indian politics.
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