Shabda Gyawali's Blog

Dhiraj Nayyar Posted online: Thursday , August 28, 2008 at 21:29 hrs The recent economic blockade of the Kashmir valley and the subsequent demand from some people in the valley for the government to allow trade across the LoC has brought economics to the fore of what is considered a largely political problem. The trouble in Kashmir can be used as an effective springboard to spur greater economic integration between India and Pakistan and in South Asia more generally. Consider this: India’s total exports in 2007-08 were worth $159 billion. Of this, a large share of $61 billion goes to OECD countries. Interestingly enough, a slightly larger share goes to other developing countries: $67 billion. Rather dismally, India’s exports to Saarc countries were a mere $8.9 billion. If one disaggregates the export figures within Saarc, the numbers reveal something more interesting: India exports more (in value terms) to Bangladesh ($2.5 billion) and to Sri Lanka ($2.7billion) than to...

By Dmitry Medvedev Published: August 26 2008 18:48 Last updated: August 26 2008 18:48 On Tuesday Russia recognised the independence of the territories of South Ossetia and Abkhazia. It was not a step taken lightly, or without full consideration of the consequences. But all possible outcomes had to be weighed against a sober understanding of the situation – the histories of the Abkhaz and Ossetian peoples, their freely expressed desire for independence, the tragic events of the past weeks and inter­national precedents for such a move. Not all of the world’s nations have their own statehood. Many exist happily within boundaries shared with other nations. The Russian Federation is an example of largely harmonious coexistence by many dozens of nations and nationalities. But some nations find it impossible to live under the tutelage of another. Relations between nations living “under one roof” need to be handled with the utmost sensitivity. After the collapse of communism, Russia reconcile...

I read a n interesting article in newsweek which I like to share ... In 1981, about two years after the Soviet Union invaded Afghanistan, the United States provided General Zia-ul-Haq, Pakistan's military ruler, with $3.2 billion in loans and grants. The idea was to elicit Pakistan's help in ousting the Soviets from Afghanistan. Included in this package, at Pakistan's insistence, were 40 F-16 aircraft. India and human rights organizations in the United States argued that the aircraft could only serve one purpose: to launch a major conventional war with India. The sale went through anyway, with disastrous results. India turned to the Soviets for arms, kicking off an arms race on the subcontinent that ultimately led to Pakistan's clandestine nuclear weapons program. Last week the Bush administration proposed repeating this mistake. It wants to divert funds earmarked for counterterrorism to upgrade Pakistan's fleet of F-16s. This would do little or nothing to stren...