what are the determinants of indian foreign policy with special reference to geography and economy

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  • 5/26/2018 What Are the Determinants of Indian Foreign Policy With Special Reference to Ge...

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    What are the determinants of Indian Foreign Policy with special reference to Geography and Economy

    NIRMALA

    Determinants and Compulsions of India's Foreign Policy:

    According to J.N. Dixit "Foreign policy of a country is a statement of what it stands for and the role that it takes upon itself and projects to the

    world at large". It is seldom static. Rather it remains in a state of constant flux. Nevertheless, there are crucial ingredients that remain

    significant for longer times.

    Factors Affecting India's Foreign Policy

    Geographical Location:

    Rightly remarked by Napoleon Bonaparte "Any country's foreign policy is determined by its geography." Indias location between middle-east,south-east Asia and far-east obliged her to engage in the events of the region. A natural frontier in the form of Himalayas in the north and

    Indian Ocean and Bay of Bengal on the three sides has considerably influenced its foreign policy. Historical Traditions

    India's commitment to peace from time immemorial has significantly influenced the foreign policy. Her experience of colonialism in the modern

    period promoted India to take a f irm stand on any form of imperialism. There has been constant emphasis on the aspect of world peace and

    spirit of brotherhood among nations because of the fact that Indians still p in faith in the dictum "Vasudhaiva Kutumbakam".

    Impact of Ideology:

    Gandhi's idea of peace and non-violence is crucially important. Nehru concretised the ideas of Gandhi into pragmatic form and channelled them

    into foreign policy. It was only because of rich intellectual heritage of Indian leadership that India chose to have an independent stance on her

    relations with other nations. Non-alignment, mixed economy etc. are outcome of ideological base provided by Indian leaders.

    Economic Condition:

    The stagnant economy at the time of independence profoundly affected India's foreign policy. The problems of poverty, health, scarcity that

    was outcome of British imperialism convinced the country of futility of alignments. Instead it chose to welcome assistance from all the

    countries.

    Security, Defence:

    After independence India inherited a weak defence system. Her military was organized on British pattern, geared to serve the interest of analien country. It was plagued by maladministration, lack of equipments and up to date technical knowhow. Lack of capital to modernize the

    army led India to pursue her economic interests at the cost of security issues. However, with the passage of time, India took cognizance of

    these lacunae in her security. Today Indian army is one of the ablest and strongest armies in the world.

    Cold War:

    The politics of cold war and the polarization of the world into two camps remained a dominant feature of international politics, when India

    became independent. Under such circumstances, India opted to remain outside the blocs and pursue a policy of non alignment. In fact, this

    stand was soon emulated by a large number of newly emerging independent countries from Asia and Africa. Though India remained outside

    bloc politics, it welcomed aid and assistance from both the blocs and helped in slackening tension between them.

    Main Principles and Objectives of India's Foreign Policy

    Principles:

    They are in the form of guidelines to the policy makers through which India carries out its foreign relations. In essence, they are the means

    through which national interest is sought to be protected and promoted.

    (i) Non-Aligusienc Ii is India's gift to the world and has been one of the main principles which have remained integral part of India's foreign

    policy even after the end of cold war. The vitality of non-alignment can be realized from the fact that it has not only helped in securing

    friendship and cooperation, promoting world peace, etc.; but ensured independence on foreign policy issues. India and NAM countries played a

    vital role in cold war politics by acting as a third force to reduce the tension.(ii) Opposition to Colonialism and Imperialism:

    Being subjected to colonial subjugation for about 200 years, India firmly stands in opposition to any form of colonialism and imperialism. It is

    with this line of thinking that India played a major role in liberating the newly independent countries of Asia and Africa from colonial shackles.

    (iii) Supporting U.N. in Achieving World Peace:

    India is one of the founding members of the UN (1945). She has played a major role in its instrumentality to achieve world peace. She has

    always advocated that resolution of international disputes be done under the purview of U.N.

    (iv) Fairness of Means:

    Inspired by the ideas of Gandhi, India has always emphasized that their means should be used in the resolution in international disputes. She

    has advocated of peaceful and non-violent methods are opposes war, aggression and power policies. Panchsheel is an outgrowth of this line of

    thinking.

    (v) Friendship with AH Countries:

    Without being committed to military alliances, India has opted for cultivating friendly relations with other countries. For this purpose she has

    concluded treaties and bilateral agreements in the fields of politics, economy, culture of science and technology.

    Objectives :

    Objectives of India's foreign policy are in the nature of goals that it seeks to promote. They are not state but are influenced by time and space.

    This protection and preservation of territorial integrity has been one of the foremost objectives of India's foreign policy. Priority assigned to this

    aspect was made clear as early as Bandung Conference (1947) said, "India and other countries had been used as a pawn by other nations in

    their international games; now that they went emerging into independence, it was a good reminder to those nations that the newly

    independent nations proposed to standing their own feet and must be free to decide the own policies and play their part in the maintenance of

    peace". The country does not want interference in the internal affairs of other country.

    CommunalismINDIASNATIONAL SECURITY

    India is a unique nation in itself. Since the time of the Harappan Civilization, people of different religions and races came over here, and the

    great soil of India sleltered them all. The bounteous Indian culture adopted all their customs and festivals to and soon they incorporated

    here. Thus India used to nourish all kinds of religions and races from the beginning of culture and civilization. Hindus, Muslims, Jains, Sikhs,

    Christians and many different religious communities resides in India, having businesses with each other. Everything is so simple and

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    satisfactory untill here. But now a problem named Communalism occurs and ruined their easy going life. So, now a question comes before

    us that what is Communalism ? Who gave it birth, and What for ?

    Communalism is originated from a French word Commune,which stands for a kind of independent state, and the national government a

    confederation of such states, having only limited powers. In fact, Communalism describes a broad range of social movements and social

    theories, which are in some way centered upon the community. It can take the form of communal living or communal property, among

    others. It is sometimes said to put the interests of the community above the interests of the individual, but this is usually only done on the

    principle that the community exists for the benefit of the individuals who participate in it. Very often, Communalism is associated with

    Anarchism, Socialism, and Communism, particularly with Primitive or Religious Communism. It is a practice of communal living and common

    ownership i.e. loyalty and commitment to the interests of onesown minority or ethnic group rather than to society as a whole.

    Communalism, in many parts of the world, is a modern term that describes a broad range of social movements and social theories which are

    in some way centered upon the community. But in South Asia, it is used to denote attempts to promote primarily religious stereotypes

    between groups of people identified as different communities and to stimulate violence between those groups.

    In modern India, the term Communalism is related to the violent activities of religious extremists. Now it designates the conflicts not only

    between extremist religious communities and the people of the same religion, but also between the people of different religions, regions

    and states. There are historical evidences of the riots, caused by Communalism. Hindu-Muslim LatBhairoriots 1809-1811, HepHepriots

    1819, Hindu-Muslim Banarasand Kanpurriots 1931, Manzilgahand Sukkurriots 1940, KolkataHindu-Muslim riots 1946,

    Hindu,Sikhs-Muslim riots 1947 ( During the partition of India and Pakistan ), Sikh riots 1984, Mumbai riots 1992, Wandhamamassacre

    1998 ( 25 Hindu victims ), Chittisinghpura massacre 2000, Gujarat Hindu-Muslim riots 2002, Kuluchakand Maradmassacres 2002,

    Kherlangi massacre 2006, Indore Hindu-Muslim riots 2008, are some of the fatal examples of Communalism.

    Communalism is a potential threat to the sovereignty, democracy, integrity, and in short the very existence of India. Communalism is a

    modern day phenomenon a sectarian, restrictive, and negative response to the process of modern nation building. As Pandit Jawaharlal

    Nehru wrote, Onemust never forget that communalism is a later day phenomenon which has grown up before our eyes.In a multi-religious society like India the secular interests such as social, cultural, economic and political of one religion are dissimilar with the

    followers of other religions, and communalism raises its head when the interest of different religions are seen as mutually incompatible,

    hostile and antagonistic.

    It is said that the the foundation of communalism in India was laid by the British think tank, during the British rule over India. Communalism

    flourished in India and reached monstrous proportions in 1947 under British rule. But British did not create communalism. It only took

    advantage of socio-economic and cultural differences and amplified those differences to serve their political ends. Hence the British policy of

    divideand rulewas planted on an earth made very fertile by those existing differences. Post 1857, British shifted to a policy of concession,

    counterpoise and coercionto accommodate new rising class, to counterbalance strong class and to browbeat recalcitrant class. some of the

    certain innocuous political trends, though not communal in themselves, obliquely led to its growth. Some tactful reasons as the derision for

    Congress as Hindu body and fear of majority gobbling up the minority led to the growth of communalism. And the foundation of the

    communal organizations like All India Muslim League (1906) and Hindu Mahasabha (1915) provided the gory feast of hatred and mistrust

    from which communal forces drew their sustenance and balancing justification for each other.

    And now after Indiasindependence communal forces are so deeply indexed in our beliefs, that is is hard to recognize them. This particular

    manifestation of the contradictions set in motion after independence, lays the objective basis on which the present concerted offensive by

    the communal forces has been mounted. The discontent amongst the Indian people, as a result of the crisis of the system, accumulated over

    the years, is growing. Discontent is affecting also the expanded and vocal middle class, drawn more from the former exploiting classesrather than from the upward mobility of the exploited classes. The domination of the consciousness of the exploiter classes combined with

    discontent provides fertile soil for the growth of communal ideology. Exploiting this discontent and on the basis of the perpetuation of

    backward consciousness, the communal forces are able today to divert this discontent into communal channels in pursuit of their political

    objective. the communal forces have adopted a two pronged strategy. On the one hand, they seek to generate a sort of a monolithic unity

    amongst the vast diversity within the community of Indians embracing Hindu religion, and, on the other, they generate hate against

    enemies outside of the Hindu faith, i.e. the Muslims and the Christians. The entire propaganda mechanism based on fascist techniques

    unleashed by them is to achieve this dual strategy.

    As if we talk about the solution of this monsterous problem of communalism in India, we found no easy solution to it. For we have to put a

    redical change in mentality, and to respect all other religions. We have to try to create a faith in all minor religious communities, that their

    feelings, faiths, ways, and places of worship would not be tolerated anyway. Respect of their thoughts and customs would arouse it into

    them. Political parties should keep themselves away from the communal issues, or the issues that enthreat the communalism. This is the

    only easy way, we can keep our unity and integrity safe and secure.

    WTO and Its Impacts on Business

    Posted onAugust 10, 2013 bySanjay Singh

    World Trade Organization

    The World Trade Organization (WTO) is a global international organization dealing with the rules of trade between nations. The work of WTO

    moves around WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments.

    The goal is to help producers of goods and services, exporters, and importers conduct their business.

    Why Do We Need WTO?

    1.The main benefits of World Trade Organization are as follows: -

    2.The system helps to contribute towards international peace, by helping the trade to flow smoothly and dealing with disputes over trade

    issues.

    http://www.fusetrend.com/wto/http://www.fusetrend.com/author/Sanjay/http://www.fusetrend.com/author/Sanjay/http://www.fusetrend.com/wto/
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    3.The system allows disputes to be handled constructively. With Global boundaries evading, more and more trade is taking place, and hence,

    leading to more chances for disputes. To put forth to the claim, around 300 cases have been filed since inception of WTO, and without peaceful

    and harmonious way to resolve them, they could have led to a political crisis.

    4.It's a system, which is based on rules and has nothing to do with power of the nation.

    5.It gives consumers more choice and a broader range of qualities to choose from.

    6.The fact that there exists a forum to handle crisis, gives confidence to nations to do more and more trade, thereby increasing the income,

    and stimulating economic growth.

    WTO Stands for World Trade Organization. WTO is an international body that promotes and enforces the provisions of trade laws and

    regulations. The WTO has the authority to administer and police new and existing free trade agreements, to oversee world trade practices, and

    to settle trade disputes among member states. The WTO was established in 1994 when the members of the General Agreement on Tariffs and

    Trade (GATT), a treaty and international trade organization, signed a new trade pact. The WTO was created to replace GATT. All of the 128

    nations that were contracting parties to the new GATT pact at the end of 1994 became members of the WTO upon ratifying the GATT pact. A

    number of other nations have joined the WTO since then. The WTO began operation on January 1, 1995. GATT and the WTO coexisted until

    December 1995, when the members of GATT met for the last time. Although the WTO replaced GATT, the trade agreements established by

    GATT in 1994 are part of the WTO agreement. However, the WTO has a significantly broader scope than GATT. GATT regulated trade in

    merchandise goods. The WTO expanded the GATT agreement to include trade in services, such as international telephone service, and

    protections for intellectual propertythat is, creative works that can be protected legally, such as sound recordings and computer programs.

    The WTO is also a formally structured organization whose rules are legally binding on its member states. The organization provides a

    framework for international trade law. Members can refer trade disputes to the WTO where a dispute panel composed of WTO officials serves

    as arbitrator. Members can appeal this panels rulings to a WTO appellate body whose decisions are final. Disputes must be resolved within the

    time limits set by WTO rules. The WTO is based in Geneva, Switzerland, and is controlled by a General Council made up of member states

    ambassadors who also serve on various subsidiary and specialist committees. The ministerial conference, which meets every two years andappoints the WTOs director-general, oversees the General Council. Since its creation, the WTO has attracted criticism from those concerned

    about free trade and economic globalization. Opponents of the WTO argue that the organization is too powerful because it can declare the laws

    and regulations of sovereign nations in violation of trade rules, in effect pressuring nations to change these laws. Critics also charge that WTO

    trade rules do not sufficiently protect workers rights, the environment, or human health. Some groups charge that the WTO lacks democratic

    accountability because its hearings on trade disputes are closed to the public and press. WTO officials have dismissed arguments that the

    organization is undemocratic, noting that its member nations, most of which are democracies, wrote the WTO rules and selected its leadership.

    WTO supporters argue that it plays a critical role in helping expand world trade and raise living standards around the world. Criticism of the

    WTO reached an apex in late 1999, when more than 30,000 protesters disrupted a WTO summit in Seattle, Washington. The protesters called

    for reforms that would make the organization more responsive to consumers, workers, and environmentalists. The summit failed in its goal to

    set an agenda for a new round of global trade talks, largely because of disagreements between industrialized and developing nations. These

    disagreements focused on agricultural subsidies provided by the developed countries, particularly the European Union (EU) and the United

    States, to support their farmers. Developing countries objected to the extent of the subsidies, which amount to about $300 billion annually,

    arguing that such generous support artificially lowered world crop prices and made it difficult, if not impossible, for farmers in developing

    countries to compete. The failure of the richer nations to reach agreement on lowering agricultural subsidies continued to derail trade talks in

    the early 2000s.

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    IMPACT ON INDIAN BUSINESS

    The WTO has both favourable and non-favourable impact on the Indian economy.FAVOURABLE IMPACT

    1. Increase in export earnings: Increase in export earnings can be viewed from growth in merchandise exports and growth in service exports :

    Growth in merchandise exports : The establishment of the WTO has increased the exports of developing countries because of reduction in tariff

    and non-tariff trade barriers. Indias merchandise exports have increased from 32 billion us $ (1995) to 185 billion u $ (2008-09).

    Growth in service exports : The WTO introduced the GATS (general Agreement on Trade in Services ) that proved beneficial for countries like

    India. Indias service exports increased from 5 billion us $ (1995) to 102 billion us $ (2008-09) (software services accounted) for 45% of Indias

    service exports)

    2. Agricultural exports : Reduction of trade barriers and domestic subsidies raise the price of agricultural products in international market,

    India hopes to benefit from this in the form of higher export earnings from agriculture

    3. Textiles and Clothing : The phasing out of the MFA will largely benefit the textiles sector. It will help the developing countries like India to

    increase the export of textiles and clothing.

    4. Foreign Direct Investment : As per the TRIMs agreement, restrictions on foreign investment have been withdrawn by the member nations of

    the WTO. This has benefited developing countries by way of foreign direct investment, euro equities and portfolio investment. In 2008-09, the

    net foreign direct investment in India was 35 billion us $.

    5. Multi-lateral rules and discipline : It is expected that fair trade conditions will be created, due to rules and discipline related to practices like

    anti-dumping, subsidies and countervailing measure, safeguards and dispute settlements.

    Such conditions will benefit India in its attempt to globalise its economy.

    UNFAVOURABLE IMPACT

    1. TRIPs : Protection of intellectual property rights has been one of the major concerns of the WTO. As a member of the WTO, India has to

    comply with the TRIPs standards. However, the agreement on TRIPs goes against the Indian patent act, 1970, in the following ways:

    Pharmaceutical sector : Under the Indian Patent act, 1970, only process patents are granted to chemicals, drugs and medicines. Thus, a

    company can legally manufacture once it had the product patent. So Indian pharmaceutical companies could sell good quality products

    (medicines) at low prices. However under TRIPs agreement, product patents will also be granted that will raise the prices of medicines, thus

    keeping them out of reach of the poor people, fortunately, most of drugs manufactured in India are offpatents and so will be less affected.

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    Agriculture : Since the agreement on TRIPs extends to agriculture as well, it will have considerable implications on Indian agriculture. The MNG,

    with their huge financial resources, may also take over seed production and will eventually control food production. Since a large majority of

    Indian population depends on agriculture for their divelihood, these developments will have serious consequences.

    Micro-organisms : Under TRIPs Agreement, patenting has been extended to micro-organisms as well. This mill largely benefit MNCs and not

    developing countries like India.

    2. TRIMs : The Agreement on TRIMs also favours developed nations as there are no rules in the agreement to formulate international rules for

    controlling business practices of foreign investors. Also, complying with the TRIMs agreement will contradict our objective of self reliant

    growth based on locally available technology and resources.

    3. GATS: The Agreement on GATS will also favour the developed nations more. Thus, the rapidly growing service sector in India will now haveto compete with giant foreign firms. Moreover, since foreign firms are allowed to remit their profits, dividends and royalties to their parent

    company, it will cause foreign exchange burden for India.

    4. TARIFF Barriers and NON-TARIFF Barriers : Reduction of trade and non-tariff barriers has adversely affected the exports of various

    developing nations. Various Indian products have been hit by. Non- tariff barriers. These include textiles, marine products, floriculture,

    pharmaceuticals, basmati rice, carpets, leather goods etc.

    5. LDC exports : Many member nations have agreed to provide dutyfrce and quotafrce market access to all products originating from least

    developed countries. India will have to now bear the adverse effect of competing with cheap LDC exports internationally. Moreover, LDC

    exports will also come to the Indian market and thus compete with domestically produced goods

    The World Bank has made a significant contribution to India's planned economic development

    SIMRANJOT

    The World Bank has made a significant contribution to India's planned economic development through its direct as well as indirect assistance.

    Important aspects of the Bank's assistance are as follows:

    1. Founder-Member:

    India is a founder-member of the Bretten Woods twins, i.e., the IMF and the World Bank; it has a permanent place on the Bank's ExecutiveBoard

    2. Loans:

    India has been the largest recipient of development finance from the Bank. India's share in the Bank's total lending to all countries in 1988 was

    15%.

    3. Assistance from IDA:

    World Bank's subsidiary institution international development Association (IDA) provides loans from its soft window. In 1980-81, India received

    loans of Rs. 522 crore from IDA. This amount increased to Rs. 1198 crore in 1985-86 and to Rs. 3064 crore in 1997-98.

    4. Assistance from Aid India Club:

    In 1950, the World Bank founded Aid India Club to provide massive assistance to finance India's developmental plans. Aid India Club is a

    consortium of the major lending countries, such as, U.K., U.S A., Germany, France, Japan, Canada, etc.

    The Aid India Club provided financial assistance to India to the tune of Rs. 1999 crore in 1980-81, which increased to Rs. 2552 crore in 1985-86

    and to Rs. 9208 crore in 1997-98.

    5. Purpose of Loans:

    The World Bank's assistance to India has been mainly for development purposes. The major projects finance by the Bank are railway,

    generation of power, multi-purpose projects, port development, development of aviation, iron and steel industry, coal mining, agriculture,

    telecommunication, etc.Besides this, the World Bank has also extended loans to the financial institutions like Industrial Development Bank of India (IDBI) and Industrial

    Credit and Investment Corporation of India (ICICI).

    6. Technical Assistance:

    The World Bank has also provided useful technical assistance in India's development plans. It has sent a number of missions to India to evaluate

    the working and progress of her Five Year Plans and to asses the foreign exchange requirements of the country.

    New International Economic Order

    From Wikipedia, the free encyclopedia

    The New International Economic Order (NIEO) was a set of proposals put forward during the 1970s by some developing countries through

    theUnited Nations Conference on Trade and Developmentto promote their interests by improving theirterms of trade, increasing

    development assistance, developed-country tariff reductions, and other means. It was meant to be a revision of the international economic

    system in favour ofThird Worldcountries, replacing theBretton Woods system,which had benefited the leading states that had created it

    especially theUnited States.

    History[edit]

    The term was derived from the Declaration for the Establishment of a New International Economic Order, adopted by the United Nations

    General Assembly in 1974, and referred to a wide range of trade, financial, commodity, and debt-related issues (1 May 1974, A/RES/S-

    6/3201).[1]This followed an agenda for discussions between industrial and developing countries, focusing on restructuring of the world's

    economy to permit greater participation by and benefits todeveloping countries(also known as the "North-South Dialogue"). Along with the

    declaration, a Programme of Action and a Charter of Economic Rights and Duties of States (12 December 1974, A/RES/29/3281).[2]

    were also

    adopted.

    In the 1970s and 1980s, the developing countries pushed for NIEO and an accompanying set of documents to be adopted by the UN General

    Assembly. Subsequently, however, these norms became only ofrhetoricaland political value, except for some partly viable mechanisms, such

    as the non-legal,non-bindingRestrictive Business Practice Codeadopted in 1980 and theCommon Fund for Commoditieswhich came in force in

    1989.

    Tenets[edit]

    The main tenets of NIEO were:

    Developing countries must be entitled to regulate and control the activities ofmultinational corporationsoperating within their territory.

    http://en.wikipedia.org/wiki/United_Nations_Conference_on_Trade_and_Developmenthttp://en.wikipedia.org/wiki/United_Nations_Conference_on_Trade_and_Developmenthttp://en.wikipedia.org/wiki/United_Nations_Conference_on_Trade_and_Developmenthttp://en.wikipedia.org/wiki/Terms_of_tradehttp://en.wikipedia.org/wiki/Terms_of_tradehttp://en.wikipedia.org/wiki/Terms_of_tradehttp://en.wikipedia.org/wiki/Third_Worldhttp://en.wikipedia.org/wiki/Third_Worldhttp://en.wikipedia.org/wiki/Third_Worldhttp://en.wikipedia.org/wiki/Bretton_Woods_systemhttp://en.wikipedia.org/wiki/Bretton_Woods_systemhttp://en.wikipedia.org/wiki/Bretton_Woods_systemhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=1http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=1http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=1http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-1http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-1http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-1http://en.wikipedia.org/wiki/Developing_countryhttp://en.wikipedia.org/wiki/Developing_countryhttp://en.wikipedia.org/wiki/Developing_countryhttp://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-2http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-2http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-2http://en.wikipedia.org/wiki/Rhetorichttp://en.wikipedia.org/wiki/Rhetorichttp://en.wikipedia.org/wiki/Rhetorichttp://en.wikipedia.org/wiki/Non-bindinghttp://en.wikipedia.org/wiki/Non-bindinghttp://en.wikipedia.org/wiki/Non-bindinghttp://en.wikipedia.org/wiki/Common_Fund_for_Commoditieshttp://en.wikipedia.org/wiki/Common_Fund_for_Commoditieshttp://en.wikipedia.org/wiki/Common_Fund_for_Commoditieshttp://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=2http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=2http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=2http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=2http://en.wikipedia.org/wiki/Common_Fund_for_Commoditieshttp://en.wikipedia.org/wiki/Non-bindinghttp://en.wikipedia.org/wiki/Rhetorichttp://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-2http://en.wikipedia.org/wiki/Developing_countryhttp://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-1http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=1http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Bretton_Woods_systemhttp://en.wikipedia.org/wiki/Third_Worldhttp://en.wikipedia.org/wiki/Terms_of_tradehttp://en.wikipedia.org/wiki/United_Nations_Conference_on_Trade_and_Development
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    They must be free tonationalizeorexpropriateforeignpropertyon conditions favourable to them.

    They must be free to set upassociationsofprimary commoditiesproducers similar to theOPEC;all otherStatesmust recognize thisrightand

    refrain from takingeconomic,military,or politicalmeasures calculated to restrict it.

    International tradeshould be based on the need to ensure stable,equitable,andremunerativepricesforraw materials, generalizednon-

    reciprocalandnon-discriminatorytariffpreferences, as well astransfer of technologyto developing countries; and should provide economic

    andtechnical assistancewithout anystrings attached.

    Resource allocation mechanisms[edit]

    Haggard and Simmons claimed that:

    A number of social mechanisms are possible to affectresource allocationin any economic order. An authoritative allocation mechanisminvolves direct control of resources while, at the other end of the spectrum, more market-oriented private allocation mechanisms are possible.

    Most of the debates within the NIEO occurred over allocation mechanisms, with the southern hemisphere countries favoring authoritative

    solutions.

    Ideology[edit]

    Mercantilist Ideas[edit]

    NIEO is based on the (French)mercantilistidea that international trade would be azero-sum game(i.e., causes no net benefits), and on the

    view that it benefits the rich at the expense of the poor. Some American economists challenge the idea of trade as a zero-sum game

    transaction.[3]

    Central planning vs. free markets[edit]

    NIEO also proposescentral planning,as opposed tofree markets.[4]

    Legacy[edit]

    In Matsushita et al.'s World Trade Organization, the authors explained part of the legacy of the NIEO:

    ... tensions and disagreements between developed and developing countries continue: the latter expect a greater degree of special treatment

    than industrialized countries have afforded them. This demand was expressed comprehensively in the New International Economic Order and

    the Charter of Economic Rights and Duties of States promoted by UNCTAD in the 1970s. Although the Charter was never accepted bydeveloping [sic] countries and is now dead, the political, economic, and social concerns that inspired it are still present. The Charter called for

    restitution for the economic and social costs of colonialism, racial discrimination, and foreign domination. It would have imposed a duty on all

    states to adjust the prices of exports to their imports. The realization of the New International Economic Order was an impetus for developing

    country support for theTokyo Roundof trade negotiations. Critics of theWTOcontinue to state that little of substance for developing countries

    came out of either the Tokyo orUruguay Rounds.

    Criticism[edit]

    Price regulation is inefficient[edit]

    The powerful countries of North America and Western Europe felt threatened by the NIEO and continuously tried to criticize and minimize it;

    according to economist Professor Harry Johnson, the most efficient way to help the poor is to transfer resources from those most able to pay to

    those most in need. Instead of this, NIEO proposes that those poor countries that have monopoly power should be able to extort these

    transfers. In practice such power has caused most harm to other poor countries.[5]

    Commanding prices above theirnatural levelusually reduces consumption and thus causes unemployment among producers. Moreover,price

    regulationtypically gives the extra income to those in control of who is allowed to produce, e.g., to governments or land-owners.[6]

    New International Economic Order-NIEO

    Aditya Panda/Blog/ 7 yrs ago/

    6

    AA+A++

    The concept of non-alignment is directly related to the Cold War.The world was divided into two powe blocs by the time the process of

    decolonisation commenced.When India became independent in 1947 ,the existence of American Bloc & Soviet Bloc had already become a

    prominent feature of international system.

    The Cold War began to decline as Soviet and its alliance system also began to disintegrate.So,the focus has shifted from political to economic

    aspect of the Third World movement.So long as the world remains divided between North and South in the context of economic prosperity and

    poverty,the need for seeking economic justice will remain relevant.

    The demand for a just and fair economic order was first made in 1973.It was later formally resolved by the sixth special session of the United

    Nations General Assembly,in1974,to call for the establishment of New International Economic Order(NIEO). As the existing order favoured the

    developed countries of the North, the Third World countries realised its discriminatory nature.

    The demand for a new international economic order is being made to correct the global economic imbalance and establish equality.Global

    inequality expresses itself in terms of unequal trade, inequalities in levels of development and unequal consumption of energy and possesion of

    technology.During the colonial period colonised countries were blatantly exploited. but,even after the colonies got their independence, economic

    exploitation did not stop. It has taken a new form.The third world countries are being subjected to neo-colonialism which is the current

    manifestation of exploitation.

    Three important financial institutions were established ,which constitute the Economic Order of Post-Second World War period.These were:

    1.International Monetary Fund(IMF)

    2.International Bank for Reconstruction and Development(IBRD)

    http://en.wikipedia.org/wiki/Nationalizehttp://en.wikipedia.org/wiki/Nationalizehttp://en.wikipedia.org/wiki/Nationalizehttp://en.wikipedia.org/wiki/Expropriatehttp://en.wikipedia.org/wiki/Expropriatehttp://en.wikipedia.org/wiki/Expropriatehttp://en.wikipedia.org/wiki/Propertyhttp://en.wikipedia.org/wiki/Propertyhttp://en.wikipedia.org/wiki/Propertyhttp://en.wikipedia.org/wiki/Voluntary_associationhttp://en.wikipedia.org/wiki/Voluntary_associationhttp://en.wikipedia.org/wiki/Voluntary_associationhttp://en.wikipedia.org/wiki/Primary_commoditieshttp://en.wikipedia.org/wiki/Primary_commoditieshttp://en.wikipedia.org/wiki/Primary_commoditieshttp://en.wikipedia.org/wiki/OPEChttp://en.wikipedia.org/wiki/OPEChttp://en.wikipedia.org/wiki/OPEChttp://en.wikipedia.org/wiki/Sovereign_statehttp://en.wikipedia.org/wiki/Sovereign_statehttp://en.wikipedia.org/wiki/Sovereign_statehttp://en.wikipedia.org/wiki/Righthttp://en.wikipedia.org/wiki/Righthttp://en.wikipedia.org/wiki/Righthttp://en.wikipedia.org/wiki/Economichttp://en.wikipedia.org/wiki/Economichttp://en.wikipedia.org/wiki/Militaryhttp://en.wikipedia.org/wiki/Militaryhttp://en.wikipedia.org/wiki/Militaryhttp://en.wikipedia.org/wiki/Politicalhttp://en.wikipedia.org/wiki/Politicalhttp://en.wikipedia.org/wiki/Politicalhttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/Equity_(economics)http://en.wikipedia.org/wiki/Equity_(economics)http://en.wikipedia.org/wiki/Equity_(economics)http://en.wikipedia.org/wiki/Remunerativehttp://en.wikipedia.org/wiki/Remunerativehttp://en.wikipedia.org/wiki/Priceshttp://en.wikipedia.org/wiki/Priceshttp://en.wikipedia.org/wiki/Priceshttp://en.wikipedia.org/wiki/Raw_materialhttp://en.wikipedia.org/wiki/Raw_materialhttp://en.wikipedia.org/wiki/Raw_materialhttp://en.wikipedia.org/wiki/Reciprocity_(international_relations)http://en.wikipedia.org/wiki/Reciprocity_(international_relations)http://en.wikipedia.org/wiki/Reciprocity_(international_relations)http://en.wikipedia.org/wiki/Reciprocity_(international_relations)http://en.wikipedia.org/wiki/Non-discriminatoryhttp://en.wikipedia.org/wiki/Non-discriminatoryhttp://en.wikipedia.org/wiki/Non-discriminatoryhttp://en.wikipedia.org/wiki/Transfer_of_technologyhttp://en.wikipedia.org/wiki/Transfer_of_technologyhttp://en.wikipedia.org/wiki/Transfer_of_technologyhttp://en.wikipedia.org/wiki/Technical_assistancehttp://en.wikipedia.org/wiki/Technical_assistancehttp://en.wikipedia.org/wiki/Technical_assistancehttp://en.wikipedia.org/wiki/Conditionalityhttp://en.wikipedia.org/wiki/Conditionalityhttp://en.wikipedia.org/wiki/Conditionalityhttp://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=3http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=3http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=3http://en.wikipedia.org/wiki/Resource_allocationhttp://en.wikipedia.org/wiki/Resource_allocationhttp://en.wikipedia.org/wiki/Resource_allocationhttp://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=4http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=4http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=4http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=5http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=5http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=5http://en.wikipedia.org/wiki/Mercantilisthttp://en.wikipedia.org/wiki/Mercantilisthttp://en.wikipedia.org/wiki/Mercantilisthttp://en.wikipedia.org/wiki/Zero-sum_gamehttp://en.wikipedia.org/wiki/Zero-sum_gamehttp://en.wikipedia.org/wiki/Zero-sum_gamehttp://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-3http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-3http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-3http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=6http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=6http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=6http://en.wikipedia.org/wiki/Central_planninghttp://en.wikipedia.org/wiki/Central_planninghttp://en.wikipedia.org/wiki/Central_planninghttp://en.wikipedia.org/wiki/Free_marketshttp://en.wikipedia.org/wiki/Free_marketshttp://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-4http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-4http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-4http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=7http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=7http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=7http://en.wikipedia.org/wiki/Tokyo_Roundhttp://en.wikipedia.org/wiki/Tokyo_Roundhttp://en.wikipedia.org/wiki/Tokyo_Roundhttp://en.wikipedia.org/wiki/World_Trade_Organizationhttp://en.wikipedia.org/wiki/World_Trade_Organizationhttp://en.wikipedia.org/wiki/World_Trade_Organizationhttp://en.wikipedia.org/wiki/Uruguay_Roundhttp://en.wikipedia.org/wiki/Uruguay_Roundhttp://en.wikipedia.org/wiki/Uruguay_Roundhttp://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=8http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=8http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=8http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=9http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=9http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=9http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-5http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-5http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-5http://en.wikipedia.org/wiki/Market_pricehttp://en.wikipedia.org/wiki/Market_pricehttp://en.wikipedia.org/wiki/Market_pricehttp://en.wikipedia.org/w/index.php?title=Price_regulation&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Price_regulation&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Price_regulation&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Price_regulation&action=edit&redlink=1http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-6http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-6http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-6http://rivr.sulekha.com/aditya-panda_1264218http://rivr.sulekha.com/aditya-panda_1264218http://creative.sulekha.com/blogshttp://creative.sulekha.com/blogshttp://creative.sulekha.com/blogshttp://creative.sulekha.com/new-international-economic-order-nieo_227040_blog#respondhttp://creative.sulekha.com/new-international-economic-order-nieo_227040_blog#respondhttp://void%280%29/http://rivr.sulekha.com/aditya-panda_1264218http://void%280%29/http://void%280%29/http://void%280%29/http://creative.sulekha.com/new-international-economic-order-nieo_227040_blog#respondhttp://creative.sulekha.com/blogshttp://rivr.sulekha.com/aditya-panda_1264218http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-6http://en.wikipedia.org/w/index.php?title=Price_regulation&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Price_regulation&action=edit&redlink=1http://en.wikipedia.org/wiki/Market_pricehttp://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-5http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=9http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=8http://en.wikipedia.org/wiki/Uruguay_Roundhttp://en.wikipedia.org/wiki/World_Trade_Organizationhttp://en.wikipedia.org/wiki/Tokyo_Roundhttp://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=7http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-4http://en.wikipedia.org/wiki/Free_marketshttp://en.wikipedia.org/wiki/Central_planninghttp://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=6http://en.wikipedia.org/wiki/New_International_Economic_Order#cite_note-3http://en.wikipedia.org/wiki/Zero-sum_gamehttp://en.wikipedia.org/wiki/Mercantilisthttp://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=5http://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=4http://en.wikipedia.org/wiki/Resource_allocationhttp://en.wikipedia.org/w/index.php?title=New_International_Economic_Order&action=edit&section=3http://en.wikipedia.org/wiki/Conditionalityhttp://en.wikipedia.org/wiki/Technical_assistancehttp://en.wikipedia.org/wiki/Transfer_of_technologyhttp://en.wikipedia.org/wiki/Non-discriminatoryhttp://en.wikipedia.org/wiki/Non-discriminatoryhttp://en.wikipedia.org/wiki/Reciprocity_(international_relations)http://en.wikipedia.org/wiki/Reciprocity_(international_relations)http://en.wikipedia.org/wiki/Raw_materialhttp://en.wikipedia.org/wiki/Priceshttp://en.wikipedia.org/wiki/Remunerativehttp://en.wikipedia.org/wiki/Equity_(economics)http://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/Politicalhttp://en.wikipedia.org/wiki/Militaryhttp://en.wikipedia.org/wiki/Economichttp://en.wikipedia.org/wiki/Righthttp://en.wikipedia.org/wiki/Sovereign_statehttp://en.wikipedia.org/wiki/OPEChttp://en.wikipedia.org/wiki/Primary_commoditieshttp://en.wikipedia.org/wiki/Voluntary_associationhttp://en.wikipedia.org/wiki/Propertyhttp://en.wikipedia.org/wiki/Expropriatehttp://en.wikipedia.org/wiki/Nationalize
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    3.General Agreement on Tariffs and Trade(GATT)

    These were based on the principle of free trade and non-discrimination in international trade.But,most of the benefits of this system were

    enjoyed by developed countries.

    So,in theAlgiers Summit of NAM(1973) emphasis was laid on the unlimited rights of the developing countries to regulate their natural resources

    and,if necessary, to nationalise them.

    The concept of NIEO is not based on donor-donee relationship.It does not seek charity from the developed countries.There is a growing

    realisation that economic problems of developing states cannot be solved only through aid and assistance.North-South relations have to be

    transformed into a nutually beneficial relationship.NIEO seeks a new relationship between the developed and the developing countries on the

    basis of mutual reciprocity, give and take, in which ultimately the developed countries will also stand to gain.It seeks to create a futuristic and

    forward lookin scenario.

    The aim of NIEO will be to create a restructured system based on cooperation rather than confrontation.The NIEO looks at the resources of the

    world as common heritage of mankind.Finally,NIEO believes that peace and prosperity go together.So long as the developing coutries continue

    to be deprived,there can be no real and lasting peace in the world.Thus NIEO is essential for international peace and security.It is a message for

    a world based on social justice and free from exploitation.It will ensure adequate transsfer of technology to the developing countries to ensure

    all-round development.It will discoyrage Brain-Drain by providing opportunities within the country to young intellectuals,scientists,doctors etc.

    NIEO seeks more favourable conditions of trade for the developing countries.It wants a system in which buffer stocks would be ensured and the

    South-South cooperation will include economic and technological cooperation.The Third World countries are trying,under NIEO,for the IMF and

    World Bank decision-making to be fair and just and pro-developing countries.

    The United Nations,in Nov 1977,appointed an Independent Commission on Internation Development Issues called the Willy Brandt

    Commission.The Commission submitted a long term "Program for Survival" involving drastic changes in the global economic structure.The plan

    envisaged a large international energy study,a global food programme and reforms in the international monetary system.It dealt with the

    problems of disarmament ,refugees,environment,ecology,food,population,energy etc.The principal theme of the Brandt report was mutality of

    North-South interest,and called for joint efforts for a common goal.

    To conclude,NIEO was initially made by NAM in 1973 and formally endorsed by UN in 1974.Dialogues between North and South were initiated

    and continued for better monetary regulation and improved trade relations.The developing countries realised that they could not be full

    partners in international trade,and could not achieve their proper development until donor-donee relationship was completely

    changed.Economic assistance from North is important,yet nothing would be achieved without a self reliant approach.The South-South

    cooperation has been initiated and is being encouraged.

    The efforts of NIEO have made valuable contribution in making the world "a large global village",yet the economic order is still far from being

    just and non-discriminatory.What is needed is that the process of structural changes should be speeded up and efforts should be made for a

    genuine,just and fair New International Economic Order. (NIEO is a topic that ive been researching for a Paper Presentation in Hindu

    College,Delhi University.This is a summary of my paper...Reader's views are welcome on this issue.)Pakistan and Kashmir Issue

    Q.4. Write a detailed note on Pakistan and Kashmir Issue

    Introduction

    Kashmir, the last of the defiant states, was the reverse of Hyderabad. It had a Hindu Ruler, Maharaja Hari Singh, but his subjects were mostly

    Muslims, accounting to 77 percent of the total population. The Maharaja was reluctant to join either India or Pakistan. But Lord Mountbatten

    urged him to take a decision to join either of the states before August 15, 1947. The Maharaja asked for more time to consider his decision. In

    the meantime he asked the Indian and the Pakistani government to sign a standstill agreement with him. Pakistan consented but India

    refused.

    War of Kashmir 1947

    The local population of Poonch began to press the Maharaja to accede to Pakistan. In August 1947, they held a massive demonstration to

    protest against the Maharajas indecisiveness. The Maharaja panicked. He asked his Hindu paratroopers to open fire and withina matter of

    seconds, several hundred Muslims were killed. Rising up against this brutal action, a local barrister called Sardar Mohammad Ibrahim

    immediately set up the Azad Kashmir government and began to wage guerrilla warfare against the Maharaja. By October 1947, the war of

    Kashmir had begun in earnest. The Pathan tribesmen from the Noth West Frontier Province, wanting to avenge the deaths of their brothers,

    invaded the valley. On reaching the valley of Kashmir, they defeated the Maharajas troops and reached the gates of Srinagar,the capital.

    Maharajas Coalition with India

    The Maharaja sensing his defeat took refuge in Jammu whence he appealed to India to send troops to halt the onslaught of the tribesmen. India

    agreed on the condition that Kashmir would accede to India. On October 26, 1947, the Maharaja acceded to India. Lord Mountbatten accepted

    the accession on behalf of India. On October 26, 1947, India began to airlift her troops to Srinagar and launched a full-scale attack on the

    tribesmen. Pakistan was stunned. Despite her scant military resources, Pakistan was prepared to send in her troops but the Bri tish General

    Gracey, Commander-in-Chief of the Pakistan Army, was against it. Jinnah proposed an immediate ceasefire and later on a fair and free

    plebiscite in Jammu and Kashmir.

    Kashmir Dispute and United Nations

    In January 1948, India took the dispute to the Security Council. There it accused Pakistan of aggression and demanded that Pakistan withdraw

    her tribesmen. But Pakistan held that the accession of Kashmir had been brought about by force. The government requested the Security

    http://www.guesspapers.net/2359/pakistan-and-kashmir-issue/http://www.guesspapers.net/2359/pakistan-and-kashmir-issue/http://www.guesspapers.net/2359/pakistan-and-kashmir-issue/
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    Council to arrange a cease-fire and asked both the tribesmen and the Indian troops to withdraw so that a free impartial plebiscite could be held

    to ascertain the wishes of the people of Kashmir.

    Indo-Pakistan War 1948 and United Nations Involvement

    While the Kashmir issue was still on the table, the Indian troops launched a full-scale attack and drove the tribesmen right back to the Pakistani

    border. Pakistan rushed her regular troops into Kashmir and a full-scale war with India ensued. She took control of the Azad Kashmir Army. But

    the Security Council on August 13, 1948 called for an immediate ceasefire the withdrawal of all Pakistani and Indian troops and holding of

    plebiscite under United Nations supervision. Both the Indian and Paksitani government accepted the resolution.

    In January 1949, the resolution began to be implemented. In July 1949, the ceasefire line was demarcated. Pakistans side of Kashmir consisted

    of some parts of Jammu, Poonch, some areas of Western Kashmir, Gilgit and a great chunk of Ladakh territory near the Chinese border in theNorth. India kept the valley of Kashmir, Jammu and the remainder of Ladakh territory near the Tiber border. The cease-fire has remained in

    existence since 1949. No plebiscite has been held and thus the Kashmir issue still remains disputed and unresolved.

    The 1965 War

    In April 1965, a clash between border patrols erupted into fighting in the Rann of Kutch, a sparsely inhabited region along the south-western

    Indo-Pakistan border. When the Indians withdrew, Pakistan claimed victory. Later full-scale hostilites erupted in September 1965, when India

    alleged that insurgents trained and supplied by Pakistan were operating in India-controlled Kashmir. Hostilities ceased three weaks later,

    following mediation efforts by the UN and interested countries. In January 1966, Indian and Pakistani representatives met in Tashkent, U.S.S.R.,

    and agreed to attempt a peaceful settlement of Kashmir and their other differences.

    The 1971 War

    Indo-Pakistani relations deteriorated again when civil war erupted in Pakistan, pitting the West Pakistan army against East Pakistanis

    demanding autonomy and independence. In December India invaded East Pakistan in support of the East Pakistani people. The Pakistani army

    surrendered at Dhaka and its army of more than 90,000 became India prisoners of war. East Pakistan became the independent country of

    Bangladesh on 6th December 1971. Following the 1971 Indo-Pakistan conflict, President Zulfiqar Ali Bhutto and Indian Prime Minister Indira

    Gandhi met in the mountain town of Shimla, India in July 1972. They agreed to a line of control in Kashmir resulting from the December 17,

    1971 cease-fire, and endorsed the principle of settlement of bilateral disputes through peaceful means.Indian Troops and Siachen Glacier 1984

    Indias nuclear test in 1974 generated great uncertainty in Pakistan and is generally acknowledged to have been the impetus for Pakistans

    nuclear weapons development program. In 1983, the Pakistani and Indian governments accused each other of aiding separatists in their

    respective countries, i.e., Sikhs in Indias Punjab state and Sindhis in Pakistans Sindh province. In April 1984, tensions erupted after troops were

    deployed to the Siachen Glacier, a high-altitude desolate area close to the China border left undemarcated by the cease-fire agreement (Karachi

    Agreement) signed by Pakistan and India in 1949.

    Tensions diminished after Rajiv Gandhi became Prime Minister in November 1984 and after a group of Sikh hijackers was brought to trial by

    Pakistan in March 1985. In December 1985, President Zia and Prime Minister Gandhi pledged not to attack each others nuclear facilities. In

    early 1986, the Indian and Pakistani governments began high-level talks to resolve the Siachen Glacier border dispute and to improve trade.

    Kashmir Insurgency 1990

    Bilateral tensions increased in early 1990, when Kashmiri militants began a compaign of violence against Indian Government authority in

    Jammu and Kashmir. Subsequent high- level bilateral meetings relieved the tensions between India and Pakistan, but relations worsened again

    after the destruction of the Ayodhya Masjid by Hindu extremists in December 1992 and terrorists bombings in Bombay in March 1993. Talks

    between the Foreign Secretaries of both countries in January 1994 resulted in deadlock.

    Diplomatic Push 1996-97

    In the last several years, the Indo-Pakistani relationship has veered sharply between rapprochement and conflict. After taking office in February1997, Prime Minister Nawaz Sharif moved to resume official dialogue with India. A number of meetings at the foreign secretary and Prime

    Ministerial level took place with positive atmospherics but little concrete progress. In a speech at the UN, Pakistani Prime Minister Nawaz Sharif

    offered to open talks on a non-aggression pact with India, proposing that both nations strike a deal to restrain their nuclear and missile

    capabilities.

    Effects of 9/11 on Kashmir

    If the world and the United States changed after September 11, the center of that change is the region where Pakistan is located. When it came

    to begin the war against terrorism Pakistan did not hesitate to do whatever it takes to fight against terrorism. United States of America

    appreciated the efforts of Pakistan which did not please India. So, India blamed Pakistan-based groups for the December 13, 2001 attack on the

    Indian Parliament. In reply, General Parvez Musharrafs speech of January 12, 2002 which even Indias hawkish Home Minister Lal Krishna

    Advani termed four days later as path-breaking, India was caught on the back foot.

    National Kashmir Committee

    It is in this context that Pakistan launched a new political initiative on Kashmir to reaffirm its long standing policy of supporting the right of self-

    determination for the people of kashmir that is enshrined in United Nations resolutions, initially accepted even by India. Musharraf announced

    the formation of a National Kashmir Committee headed by a veteran Kashmiri politician, and its charter made clear the purposes behind the

    initiative. The challenge before the government is to promote confidence among the people in Pakistan and Kashmir regarding Pakistans

    efforts to project the Kashmir cause as a popular and indigenous struggle internationally.

    Having addressed international concerns regarding terrorism and extremism in Musharrafs January 12 speech, the United States is now more

    receptive to Pakistans plea and is anxious to see a dialogue on all the issues of Kashmir.

    Peace in South Asia and the Kashmir Dispute

    Pakistan believes that the establishment of durable peace in South Asia hinges on the resolution of the Kashmir Dispute in light of the security

    Council resolutions and the wishes of the Kashmiri people. On March 17, 2004 Prime Minister Mir Zafarullah Khan Jamali said the Kashmir

    dispute remains the core issue between India and Pakistan. The two South Asian nations have fought three wars, two of which were over the

    disputed kashmir region. In January this year, the two leaderships made a decision to open the dialogue process in a bid to resolve all disputes

    between the two sides.

    The Dialogue Process

    Pakistan always showed seriousness and sincerity towards resolution of the core issue of Kashmir by adopting several Confidence Building

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    Measures (CBMs). World community. time and again has advised India to decrease the number of its force in Occupied Kashmir and release

    illegally detained Kashmiri Leadership. India never hesitated from leveling baseless allegations against Pakistan of infiltration and also did not

    stop massive human rights violations in Kashmir. The need is to initiate vigorous efforts from both sides in resolving the Kashmir issue. The

    basic important dispute between the two countries is Kashmir issue and with its resolution all the other outstanding issues would be settled

    very easity. Prime Minister Mir Zafarullah Khan Jamali said that

    Kashmir dispute should be resolved according to the United Nations resolution and with active participation of the Kashmiris.

    Year 2005Road to Peace

    The Prime Minister said that there wre many difficulties on road to peace but emphasized the need to take measures to promote mutual trust

    and find new avenues for a peaceful resolution of the lingering Kashmir dispute. The first formal visit of a faction of the separatist All PartiesHurriyat Conference (APHC) and the Jammu and Kashmir Liberation Front (JKLF) to Pakistan occupied Kashmir (PoK) and subsequently, though

    unsanctioned by Indian authorities to Pakistan between June 2-16, 2005 was thus projected as a major event and development in the process

    of solving the Kashmir Issue. Indeed the visit strongly reiterated the fact that the APHC continues to be a faithful Pakistani proxy. After his

    meeting with the President Musharraf, Mirwaiz Umer Farooq declared that

    We want Kashmir to be divided on geographical grounds. We dont wand Kashmir to lose its identity. we support his [President Musharraf]

    approach.

    During their meeting with President Musharraf, the APHC leaders once again were assured full political, diplomatic and moral support.

    This tour has been helpful in understanding the viewpoint of the Kashmiri leaders. Their quest for a free hand to decide their future is valid.

    They have been living under brutal Indian occupation since 1948. Despite promised justice by the UN 57 years ago, they have been denied their

    right of self-determination. It was in fact the denial of justice and unabated Indian State-terrorism perpetrated against Kashmir.

    The recent visit of the APHC leaders was a significant development, which can be termed as a milestone in the process of resolving the core

    dispute of Kashmir between Pakistan and India peacefully. We wish both the governments to show courage, boldness and flexibility in settling

    the issue

    - See more at:http://www.guesspapers.net/2359/pakistan-and-kashmir-issue/#sthash.1rH5zLr7.dpuf

    The Kashmir conflict (Hindi:, Urdu: Masala- Kamr) is aterritorial disputebetween theGovernment of India,Kashmiri insurgent groups and theGovernment of Pakistanover control of theKashmir region.Although an interstate dispute over Kashmir has

    existed between India and Pakistan since theIndo-Pakistani War of 1947[2]

    an internal conflict between Kashmiri insurgents (some favouring

    Kashmiri accession to Pakistan, and some favouring Kashmir's complete independence.[3]

    )and the Government of India has constituted the

    main conflict and source of violence in the region since 2002.

    India and Pakistan have fought at least three wars over Kashmir, including theIndo-Pakistani Wars of 1947, 1965and1999and since 1984 the

    two countries have also been involved in several skirmishes over control of the Siachen Glacier.India claims the entire state ofJammu and

    Kashmirand as of 2010, administers approximately 43% of the region, including most ofJammu,theKashmir Valley, Ladakh,and theSiachen

    Glacier.India's claims are contested by Pakistan, which controls approximately 37% of Kashmir, namelyAzad Kashmirand the northern areas

    ofGilgit Baltistan.[4][5]

    The roots of the conflict between the Kashmiri insurgents and the Indian Government are tied to a dispute over local autonomy.[6]

    Democratic

    development was limited in Kashmir until the late 1970s and by 1988 many of the democratic reforms provided by the Indian Government had

    been reversed and non-violent channels for expressing discontent were limited and caused a dramatic increase in support for insurgents

    advocating violent secession from India.[6]

    In 1987, a disputed State election[7]

    created a catalyst for the insurgency when it resulted in some of

    the state's legislative assembly members forming armed insurgent groups.[8][9][10]In July 1988 a series of demonstrations, strikes and attacks on

    the Indian Government began theKashmir Insurgencywhich during the 1990s escalated into the most important internal security issue in India.

    The turmoil in Jammu and Kashmir has resulted in thousands of deaths,[11]

    but has become less deadly in recent years.[12][13]

    There have been

    protest movements in Indian Administered Kashmir since 1989. The movements were created to voice Kashmir's disputes and grievances with

    the Indian government, specifically the Indian Military.[12][13]

    Elections held in 2008 were generally regarded as fair by theUnited Nations High

    Commissioner for Refugees,had a high voter turnout in spite of calls by militants for a boycott, and led to the pro-IndiaJammu & Kashmir

    National Conferenceforming the government in the state.[14][15]

    According toVoice of America,many analysts have interpreted the high voter

    turnout in this election as a sign that the people of Kashmir have endorsed Indian rule in the state.[16]

    However Sajjad Lone, a prominent

    separatist leader in Kashmir, claims that "the high turnout should not be taken as a sign that Kashmiris no longer want independence.[16]

    In 2009

    and2010 unrest eruptedagain.

    Contents

    [hide]

    1 Timeline

    1.1 Early history

    1.2 Partition and dispute

    1.3 Indo-Pakistani War of 19471.4 Sino-Indian War

    1.5 1965 and 1971 wars

    1.6 1989 popular insurgency and militancy

    1.7 Al-Qaeda involvement

    1.8 Conflict in Kargil

    2 Reasons behind the dispute

    2.1 Indian view

    2.2 Pakistani view

    2.3 Chinese view

    2.4 Cross-border troubles

    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    2.5 Water dispute

    2.6 Pakistan's relation with militants

    3 Human rights abuse

    3.1 Indian administered Kashmir

    3.2 Pakistan administered Kashmir

    3.2.1 Azad Kashmir

    3.2.2 Gilgit-Baltistan

    4 Map issues

    5 Recent developments5.1 Efforts to end the crisis

    5.2 2008 militant attacks

    5.3 2008 Kashmir protests

    5.4 2008 Kashmir elections

    5.5 2009 Kashmir protests

    5.6 2010 Kashmir Unrest

    5.7 US President Obama on the conflict

    6 See also

    7 References

    7.1 Further reading

    8 External links

    Timeline

    Main article: Timeline of the Kashmir conflict

    Early history

    See also: History of KashmirAccording tofolk etymology,the name "Kashmir" means "desiccatedland" (from theSanskrit:Ka= water and shimeera= desiccate). In

    theRajatarangini,a history of Kashmirwritten byKalhanain the mid-12th century, it is stated that the valley of Kashmir was formerly a lake.

    According toHindumythology, the lake was drained by thesaptarishior sage,Kashyapa, son of Marichi, son ofBrahma,by cutting the gap in

    the hills at Baramulla (Varaha-mula). When Kashmir had been drained, Kashyapa askedBrahmansto settle there. This is still the local tradition,

    and in the existing physical condition of the country, we may see some ground for the story which has taken this form. The name of Kashyapa is

    by history and tradition connected with the draining of the lake, and the chief town or collection of dwellings in the valley was called Kashyapa-

    pura, which has been identified withKaspapyrosof Hecataeus(apudStephanus of Byzantium)and KaspatyrosofHerodotus(3.102,

    4.44).[17]

    Kashmir is also believed to be the country meant byPtolemy'sKaspeiria.[18]

    However an earlier and well known recorded reference can be found in the writings of a Chinese Buddhist monk in the 6th Century.Hsien

    Tsangreferred to a state called 'Kash-mi-lo' that had existed in the 1st century.

    In the 18th century, Kashmir was ruled by thePashtunDurrani Empire.In 1819, Kashmir was conquered by theSikhrulerRanjit Singh.Following

    theFirst Anglo-Sikh Warin 1845 and 1846, Kashmir was first ceded by theTreaty of Lahoreto theEast India Company,and shortly after sold by

    theTreaty of AmritsartoGulab Singh, Raja of Jammu, who thereafter was given the titleMaharaja of Jammu and Kashmir.From then until

    thePartition of Indiain 1947, Kashmir was ruled by the Hindu Maharajas of theprincely stateofKashmir and Jammu,although the majority of

    the population were Muslim, except in theJammuandLadakhregion.

    Partition and disputeIn 1947, British rule in India ended with the creation of a new state: theDominion of Pakistanand a successor state toBritish IndiatheUnion of

    India,while Britishsuzeraintyover the 562 Indianprincely statesended. According to theIndian Independence Act 1947,"the suzerainty of His

    Majesty over the Indian States lapses, and with it, all treaties and agreements in force at the date of the passing of this Act between His Majesty

    and the rulers of Indian States",[19]

    so the states were left to choose whether to join India or Pakistan or to remain independent. Jammu and

    Kashmir, the largest of the princely states, had a predominantly Muslim population, while having a Hindu ruler (MaharajaHari Singh.) On

    partition Pakistan expected Kashmir to be annexed to it.

    In October 1947, Muslim revolutionaries in western Kashmir[20]

    and Pakistani tribals fromDirentered Kashmir, intending to liberate it

    fromDograrule. Unable to withstand the invasion, the Maharaja signed theInstrument of Accessionon 25 October 1947[21]

    that was accepted

    by the government of India on 27 October 1947.[22][23]

    Indo-Pakistani War of 1947

    Main article: Indo-Pakistani War of 1947

    After rumours that the Maharaja supported the annexation of Kashmir by India, militant Muslim revolutionaries from western Kashmir[20]

    and

    Pakistani tribesmen made rapid advances into theBaramullasector. MaharajaHari Singhof Kashmir asked the government of India to

    intervene. However, India and Pakistan had signed an agreement of non-intervention. Although tribal fighters from Pakistan had entered

    Jammu and Kashmir, there was no iron-clad legal evidence to unequivocally prove that Pakistan was officially involved.[citation needed]

    It would have

    been illegal for India to unilaterally intervene in an open, official capacity unless Jammu and Kashmir officially joined the Union of India, at

    which point it would be possible to send in its forces and occupy the remaining parts.

    The Maharaja desperately needed military assistance when the Pakistani tribals reached the outskirts ofSrinagar.Before their arrival into

    Srinagar, India argued that the Maharaja must complete negotiations for ceding Jammu and Kashmir to India in exchange for receiving military

    aid. The agreement which ceded Jammu and Kashmir to India was signed by the Maharaja andLord Mountbatten of Burma.[5]

    In Jammu and

    Kashmir, National Conferencevolunteers worked with theIndian Armyto drive out the Pakistanis.[24]

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