Focus on economic diplomacy

IN the modern age, foreign policy of a country is usually geared to achieve economic objectives for the welfare of its citizens. Realisation of the importance of a closer link between the two on the part of present Pakistan government could only be termed as a timely development and is indeed welcome. Addressing the members of Karachi Chamber of Commerce and Industry on 28th August, Foreign Minister Khurshid Kasuri stressed the point that the foreign policy of Pakistan was now essentially shaped and underpinned by national security concerns and also well-being of the people. Within these parameters, Pakistan’s primary objective was to safeguard country’s independence and to strive for political, economic and trade relations with other countries. The government was working to develop trade corridors to leverage and benefit from the country’s strategic location. The concept of National Trade Corridor, which aimed at upgrading and expanding our rail, road, air and port networks, would serve as the gateway for access of goods and services, as well as a convenient transit route for other countries to the Central Asian markets. Pakistan had the potential to become the hub of cooperation for energy, trade and tourism. Elaborating on the theme, the Foreign Minister added that emerging international trade and economic dispensation, influenced in several different ways by the process of globalisation, presents both opportunities as well as challenges to developing countries. The Ministry of Foreign Affairs and Pakistani missions abroad were active partners in the government effort leading to economic revival of Pakistan, doubling of the economy and a phenomenal increase in exports. Foreign investment and remittances have also increased tremendously. A continued proactive economic diplomatic engagement was essential as the thrust of international relations was shifting from geo-politics to geo-economics. In our view, what the Foreign Minister has said makes a lot of sense and is a welcome departure from the old policy of using foreign policy mainly as an instrument to safeguard country’s sovereignty and achieve other political strategic objectives. In a more narrow sense, foreign policy in the past concentrated largely on the issue of Kashmir, purchase of the latest weaponry to protect ourselves against a neighbouring country and maintenance of friendly relations with other countries to defend our position at crucial times.
Such a strategy was based more on an historical perspective rather than on economic imperatives of the country and was partly responsible for the lack of economic development, underemployment of natural resources and poor state of infrastructure. Thankfully, the present government realised the folly of this approach and from the very beginning tried to change the overall direction without, however, sacrificing the vital foreign policy interests of the country.

Common cause in Central Asia

THE Shanghai Cooperation Organization (SCO) held its annual summit in mid-August, providing the occasion for another round of hand-wringing over whether an anti-Western bloc has emerged. Those dark speculations are exaggerated. Indeed, the rest of the world should support efforts to increase counterterrorism capabilities in Central Asia and the region’s integration into the global economy. The SCO was formed in 2001 and its members include China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan. Mongolia, Pakistan, India and Iran are observer countries. It was founded to fight the three “isms” — extremism, terrorism and separatism, and originally focused on law enforcement and security cooperation. It has since evolved to include cultural and economic cooperation, but its primary concern continues to be security issues. China and Russia appear to be driving forces behind the group, and some worry that the Moscow-Beijing axis aims to produce a political-military institution that would counter the North Atlantic Treaty Organization and act as a shield against the spread of values the Western bloc represents. Critics point to summits dominated by criticism of unilateralism — sometimes referring to unspecified “powers,” sometimes targeting Washington by name — and the invitation of Iranian President Mahmoud Ahmadinejad to observe despite his country’s standoff with the IAEA. The call, two years ago, by SCO leaders for the United States to remove its bases from Central Asia was seen as a move to reduce potential American interest in the region and a real indicator of the group’s priorities. SCO leaders deny the charge. When asked point blank if the SCO was a counterbalance to NATO, Russian President Vladimir Putin disagreed. “The military aspect is not dominant and not the main thing. . . . The SCO is an organization that deals with questions of a political character and an economic character . . . and the economic aspects are at the forefront.” That may be the Russian hope, but the military dimension is prominent. The highlight of this year’s meeting was the first joint antiterrorism exercise that practiced a response to a militant uprising. It included 7,500 troops, dozens of aircraft and hundreds of armored vehicles. That drill coincided with another Russian exercise and the announcement by Moscow that its fleet of aerial bombers would resume long-range patrol flights, suspended since the end of the Cold War.
While Mr. Putin and Mr. Ahmadinejad no doubt enjoy tweaking the U.S., the other SCO members are not prepared to follow them down the path of confrontation. China and Russia have embraced a strategic partnership, but the Beijing leadership recognizes that its national interests require a productive and positive relationship with Washington, not one dominated by hostility or antagonism. Even more important, there is no love lost between Russia and China. Both accept the need to work together, but neither much trusts the other. Their bilateral relationship and the SCO provide opportunities for cooperation — as well as friction. Rhetoric notwithstanding, each country sees Central Asia as vital to its own national security and is eager to maximize its own influence in the region. In this light, the most important part of the SCO is likely to be efforts to promote economic development and integration into the regional and global economy. Decisions regarding energy resources are especially critical. Central Asia has extensive energy reserves. China — like Japan — would like guaranteed long-term access to them, while Russia wants its pipelines to remain the primary vehicle by which those reserves make it to global markets.
—Japan Times