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NEWSNOTES
GOI Plays Into USA's Hands

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usm-red.gif (836 bytes)Clinton Visit
G
rowing convergance of US interests

Report

IN the joint statement issued during the Clinton visit, the United States has applauded India's success in opening its economy. There is every reason for the Americans to be pleased about the economic policies of the BJP-led government. The Clinton visit has highlighted the growing convergence between the policy-makers in India and the interests of US big business. The outcome of the bilateral talks has been a host of decisions to integrate official Indian policy-making in the economic sphere with that of the US. It has been decided that the Indian finance minister and the US secretary of treasury will host a forum for financial and investment issues which will have the participation of the RBI and the SEBI from the Indian side and the Federal Reserve and other representatives of the US government. Similarly, there will be a Indo-US commercial dialogue headed by the Indian commerce minister and the US commerce secretary. This forum will have the participation of both the government and the private sector representatives. Apart from this, there would be a working group on trade for formulating trade policies, a science and technology forum and a joint consultative group on energy and environment.

All these sound like harmless forums for promoting cooperation in various sectors. But the reality is different. On the trade front, the United States is relentlessly pursuing the inclusion of the labour and environmental standards in trade which will work against the interests of all the third world countries. The science and technology forum is going to function in the background of several technology sanctions against India which have been in place for three decades. In such a situation, India would be accepting an unequal regime based on US controls.

The environmental agreement signed during the visit has been called a "terrible mistake" by an Indian expert on the power sector. Dr R K Pachouri, director of the Tata Energy Institute, has stated that "we have played into the hands of the US." Under the agreement India is committed to increase power generation from renewable sources to 10 per cent. This would be prohibitively expensive for the country. At the same time, agreeing to reduce emissions of greenhouse gases by India, without the US committing to ratify the Kyoto protocol which commits the US to a 7 per cent reduction in emissions of global warming gases by 2012, is another climb-down by India.

Alongside these surrenders on the economic front, President Clinton announced the setting up of an Asian Centre for Democratic Governance at New Delhi. This centre will be funded by the National Endowment for Democracy which is financed by the US state department. The Indian partner will be none other than the Confederation of Indian Industry which is the cheer-leader in India for the American brand of democracy and free markets.

The ease with which the economic agenda of the US has been adopted during the Clinton visit, has been overlooked by the media. This aspect of the Clinton visit has been ignored by the mainstream media which faithfully projects the interests of the business and commercial interests who own and control the media enterprises.

Compared to this show of servility, the Bangladesh government has come out in a better light. Despite American cajoling, the Bangladesh prime minister firmly declared that no contracts will be signed with American companies for the export of natural gas to India till Bangladesh fully meets its domestic requirements and builds up reserves for 50 years. No such manifestation of national self-interest can be expected from the BJP rulers.





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