BRICS, China, Speaking

BRICS Academic Forum 2022 | Opening Plenary

BRICS,consensus,Consolidation,Continuity,Digitalisation

Remarks by Dr Samir Saran at the Opening Plenary session of the BRICS Academic Forum 2022

It is a pleasure to be back again and be a part of the academic forum that has continued to raise important issues for intra BRICS cooperation and indeed, for the challenges that confront our world.

We are meeting today at an important moment—a moment that will be recorded and studied by future generations. It is important that all of us rise to the challenges that confront us and be creative in discovering solutions. Three major trends are seeking our attention and indeed, resolution.

First, global politics has been upended by the political actions in Asia and Europe. Conflicts, contests, and careless power projection have jeopardised stability, peace, and prosperity for all. Can we discover a new geostrategic balance and what role can BRICS play?

As we emerge from the pandemic—or at least begin to learn to live with it—what are the lessons that we have learnt? Will new development and growth models emerge, and will BRICS and other actors invest in what is most important for humankind?

And finally, we are experiencing the digitalisation of everything. Technology is having an impact on our economy, our politics, our societies, and indeed our individual behaviours, choices, and assessments of the world we live in.

New Politics, Green and Inclusive Growth, and our Common Digital Future beckons us. At the Indian presidency of the BRICS last year, we coined three words—Continuity, Consolidation, and Consensus. These remain relevant even as China steers the group and must continue to define the BRICS agenda.

We have to work together to overcome the contested politics of today. We must be contributors to stability in world affairs. We should reject actions as a group and as individual nations that can create further instability or exacerbate current tensions.

BRICS was always meant to be a grouping that would offer an alternative path to one prescribed by the Atlantic Order. We must continue to strive to do this. Unipolarity must give way to multipolarity. Bipolarity is not an option.

Three key elements will shape the path that BRICS and others must pave.

First, as the political assumptions of the 20th century may no longer be sufficient or valid for a more complex world, we must work together to script a multilateralism that is fit for purpose. It must reflect current realities, the aspirations of different geographies, and a governance structure that is plural, transparent, and accessible. The old hegemony of the Atlantic Order must not be replaced by a new hegemony from another region.

BRICS must continue—individually and collectively—to remain inclusive in shaping the multilateral system. This system must deliver on economic and trade growth. It must find new ways of catalysing financial flows for infrastructure and aspirational needs of multiple geographies. Multilateralism for this century will require new anchors and champions. BRICS can play that role, provided all members are committed to it.

Second, future growth and our economic needs will have to cater to our planetary responsibility. Green transitions must not simply be a buzzword, but the policy design for all. BRICS must work—both within and with others—to put together a template to invest toward a green planet. We have to rethink mobility, urban spaces, consumption, and our lifestyles. We must also work to protect those who are already being burdened by the deleterious consequences of global warming, rising sea levels, and harsh weather conditions.

Thirdly, we have to embrace technology and not allow it to become the new arena for zero-sum politics. The world must see technology as a digital public good and it must serve all of humanity equitably. The rules for this digital future are yet to be written. These rules must not be written only by the western hemisphere. In the absence of such agreed rules, sovereign arrangements must prevail over those written by the boardrooms. BRICS can share experiences and learnings from our individual journeys and offer to the world examples and methods of managing our common digital future. We must ensure that countries, within and outside, do not weaponise technology or game the digital public square.

It is impossible for BRICS to attain its full potential and contribute to global affairs unless each member is committed to the BRICS project and the thinking that led to its creation—peaceful co-existence, within the group and with others, being the primary ethos.

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Books / Papers, Raisina Dialogue, Research

Raisina Files 2022

In the sixth edition of our flagship annual journal of essays, the Raisina Files, we seek to take stock of where we are as people, communities, and countries. We intend to discuss and clarify responses to challenges that have arisen due to the pandemic, and discover and chart pathways to opportunities in the post-COVID19 world. Our contributors engage with the new war in Europe, and its consequences for the region and the world. Most importantly, the fine minds who have penned the essays that follow, seek to describe what lies ahead, how it will be arranged, who will shape it, and who will likely benefit from what unfolds.

Raisina Files 2022 mirrors the theme of this year’s Raisina Dialogue, “Terra Nova: Impassioned, Impatient, and Imperilled.” We have identified six pillars and areas of discussion within this overarching theme to engage with critically—Rethinking Democracy: Trade, Tech, and Ideology; End of Multilateralism: A Networked Global Order?; Water Caucuses: Turbulent Tides in the Indo-Pacific; Communities Inc.: First Responders to Health, Development, and Planet; Achieving Green Transitions: Common Imperative, Diverging Realities; and Samson vs Goliath: The Persistent and Relentless Tech Wars. Together, these six pillars of the Raisina Dialogue capture the multitude of conversations, opportunities, and anxieties countries engage and grapple with.

In this volume:

Editors: Samir Saran and Anahita Khanna 

  • The DragonBear: Putin’s Choices | Velina Tchakarova
  • Forging China-Resistant Supplier Compacts | Jeffrey Jeb Nadaner
  • Democracy, Technology, Geopolitics | Sameer Patil and Vivek Mishra
  • Materials That Matter | Andreas Kuehn
  • Scripting a Third Way: The Importance of EU-India Partnership | Amrita Narlikar
  • Emerging Domains of Conflict in the 21st Century| Lydia Kostopoulos
  • Advancing Trade Governance – Only for Democracies? | Renato G. Flôres Jr.
  • The World in Disarray: Is This the End of Multilateralism for Trade? | Stormy-Annika Mildner
  • Anticipate, Reform, and Elevate: Looking Toward W20 India 2023 | Erin Watson-Lynn
  • The Pandemic at 24 Months | Sridhar Venkatapuram
  • The Season of Caucuses: QUAD, AUKUS, and the Exclusive-Inclusive Duality of Indo-Pacific Asia | Rory Medcalf
  • Oceanic Choices: India, Japan, and the Dragon’s Fire: How does the QUAD Work? | Satoru Nagao
  • Diverging US and Indian Approaches to Europe: The Problem of Ukraine | S. Paul Kapur
  • India’s Unicorn Step-Function Growth Signals the Emergence of its Innovation Ecosystem | Nisha Holla
  • Exploring the Inequities of Climate Finance | Mannat Jaspal and Terri B. Chapman
  • Enabling the Green Transition to be a Just Transition | Nuvodita Singh and Akshima Ghate
  • Meta-Soft Power: Flipping the Scales Between Art & Culture | Nicolò Andreula and Stefania Petruzzelli
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Green Technology, Research, security, Writing

All roads connect Delhi and Brussels

Co-Authored with Amrita Narlikar

Our text of ancient fables, the Panchatantra, speaks of “natural allies”. If there are ever natural allies in politics, the European Union (EU) and India should exemplify this relationship. Our cultural exchanges date back to ancient times; our languages have common roots; our borders are closer than ever via a human bridge that connects us: There are millions of Indians in the Middle East, and millions from the Middle East in Europe. Europe and India are a geographical continuum. And both the EU and India— “the world’s largest democracies”—face shared threats and challenges. All roads must now connect Delhi and Brussels.

Here, we lay out a map to address three key challenges: The green transition, the digital transformation, and the preservation of our shared geopolitical landscape. On all three issues, direct and close cooperation between the EU and India will not only be vital for these two major powers and their people—but also for the world at large. 

Green Transition

To address climate change, the EU and its members have been upping their domestic game. The European Green Deal is only one amongst several key initiatives that illustrate the seriousness with which the EU is addressing the existential threat of climate change. At the same time, there is much angst in Europe that these efforts will not suffice unless they are matched by China and India. While the concerns are understandable, a narrative framed in terms of “what will become of the world if every Indian has a car” is patronising and misplaced, especially when one compares the per capita fossil consumption in India to the EU members. In any case, specifically with respect to India, the EU is pushing through an open door on the issue of addressing climate change. India has led the way in international initiatives on the issue of clean energy, for instance, by creating the International Solar Alliance with France. India’s commitment to protecting the environment, moreover, does not stem from recent pressure exercised by Greta Thunberg or Fridays for Future. Contra western anthropocentrism in which activists advocate climate change mitigation for “our children’s future”, Indian philosophy teaches us that the planet belongs to humans, plants, animals, and all living beings. There are, therefore, deep-rooted and inclusive reasons for Indians to be committed to protecting the planet. This commitment should not be doubted. Instead, the EU needs to find ways to invest in this Indian cause and co-create solutions for our common future.

The European Green Deal is only one amongst several key initiatives that illustrate the seriousness with which the EU is addressing the existential threat of climate change.

To achieve this, we need actions and not words. It has taken a full-blown war in the heart of Europe for Germany to recognise the risks of over-dependence on Russia for energy purposes; diversification is proving to be far slower and more complicated than many would like. In light of this experience, it is perhaps even more unreasonable than before to demand that India “phase out” coal at the click of a finger. The EU will have to put its money where its mouth is if it is serious about addressing the global problem of climate change. The Carbon Border Adjustment Mechanism, for example, should be more than a “poverty tax”, as it is seen in India; it should be a tool to finance and incentivise the green transition in globally integrated sectors in the emerging world. Technologies vital to low-carbon growth will need to be co-created and co-owned by Europe and partners like India. European capital must be given a nudge to flow into climate-conscious investment in the emerging world. It is up to the EU to make sure that India’s efforts pay off—through significant European financing in key sectors, via public-private partnerships.

Digital Transformation

The EU is leading the way in setting people-centred standards on digital governance via GDPR. India’s Aadhaar Card scheme has shown the pioneering role that digitalisation can play in empowering the poor and facilitating development. There are also already several worrying examples of the pernicious effects of digital technology: Surveillance of local populations by authoritarian states, as well as the manipulation and control of infrastructure and security systems by external actors. To preserve the individual liberties of their people, and strengthen digital sovereignty, European and Indian cooperation will be key.

Research collaborations on dual-use technology, public-private partnerships for implementation and marketing of these innovations, and working jointly and through like-minded coalitions to establish rules for data governance and cyber-security are essential.

These two democratic powers will also be well-served to collaborate on diversifying away from their dependence on China, for e.g., on 5G technology and infrastructure development. Any trade agreement between the EU and India should prioritise this key consideration. Research collaborations on dual-use technology, public-private partnerships for implementation and marketing of these innovations, and working jointly and through like-minded coalitions to establish rules for data governance and cyber-security are essential. Neither the EU nor India can get left behind in a game that is dominated by the boardrooms in the US and party headquarters in China. India and the EU need to enter into a technology partnership that allows for all of this, and for ensuring reliable and integrated supply chains.

Shared geopolitical landscape

Our shared geopolitical landscape—extending beyond geographical proximities and including the Indo-Pacific—has been under extreme stress in recent years. The EU has a war triggered by Russia on its borders; India and its neighbours have had to put up with Chinese adventurism on the Himalayas and in their maritime neighbourhood.

Research collaborations on dual-use technology, public-private partnerships for implementation and marketing of these innovations, and working jointly and through like-minded coalitions to establish rules for data governance and cyber-security are essential. 

This is a time for both the EU and India to be working together to help restore balance in the region. The EU will need to jump off the fence with respect to China; the European mantra of “partner, competitor, rival” is highly inadequate in dealing with a China that has signed a “no-limits” partnership with Russia. India will also need to rethink its own dependencies. The two democracies have now very real incentives to develop closer economic and military ties.

Sanctimonious lectures about morality will need to be replaced by a shared empathy of the like-minded. And all this will require the use of not only Europe’s favourite tool of “soft power”, but also the use of hard power through infrastructure projects, green investment, and military cooperation. Re-aligning their economic and security cooperation with each other will enable both the EU and India to stand up for the values that they both hold dear: Democracy and pluralism.

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China, Research

The world is in flux. Self-reliance is vital

Three contemporary developments have challenged India’s engagement with the world and its security concerns in the past 24 months. The first was the decision by China’s Xi Jinping to pick a line from a map in imagined history and send 100,000 troops and more to alter the current political equation in the Himalayas. This was a whimsical and perverse exertion of power that resulted in a bloody clash and a still continuing face-off between Indian and Chinese troops. Xi’s actions then were no different from Vladimir Putin’s in recent days, both yearning for the expanse of empires past or even mythical. The global reaction, though ostensibly sympathetic to India, was timid when compared to the current aggressive response to a similar Russian effort to change the politics of Europe.

Continuing economic engagement with China and appeasement of the Dragon to the detriment of its partners and allies defined the western world’s response. The differential between geopolitics in Europe and geopolitics in Asia has been underscored again in stark terms. The frenzied media coverage and careless commentary continue to reinforce how values and ethics vary when ethnicity and geography change. This must affect the assessments of the West’s partners in the East.

Next, in August 2021, the world’s mightiest superpower, the United States (US), finalised an unethical and tragic arrangement with a band of terrorists, and deserted Afghanistan overnight. Women rights, individual freedoms and the “values” that were propagated while waging the so-called liberal war against terror, were all discarded in favour of what was expedient. The professors of democracy and the radical Taliban found common cause and sent Afghanistan back to the 1990s. For India, terrorists armed with American weaponry were no longer just a threat scenario but a reality at its door — one it would have to handle by itself.

The differential between geopolitics in Europe and geopolitics in Asia has been underscored again in stark terms. The frenzied media coverage and careless commentary continue to reinforce how values and ethics vary when ethnicity and geography change.

And now, Putin has decided to go one up on Joe Biden and take Europe back to the early 20th century. Russian troops invaded a sovereign country to enforce a political writ driven solely by the desire to preserve Russia’s influence over geographies that increasingly disagree with the politics and propositions of the Kremlin. While Russia’s fears of the purpose and method of the North Atlantic Treaty Organization (NATO)’s expansion must not be discounted, use of force and violation of a country’s sovereignty cannot be acceptable as an expression of disagreement.

The invasion of Ukraine has put India in an unenviable position of choosing between what is right and what it believes is right for itself. India’s tough words on Russian action in its statement at the United Nations Security Council (UNSC), even as it abstained from voting, demonstrated this. Yet this is insufficient for many in the liberal West who seek India to be part of the normative liberal order, as well as of a performative chorus against Russia.

The invasion of Ukraine has put India in an unenviable position of choosing between what is right and what it believes is right for itself.

What is more striking than India’s predictable vote is the mood on the street and views of the commentariat. It seems that the memories of the feeble support on China and the shenanigans in Afghanistan are still fresh.

The US invasion of Iraq in 2003 had triggered loud political debates and voices against India’s then position on American intervention. This time, the convergence across the normally sharp political divide is palpable and must be a moment for reflection for many.

Several questions confront New Delhi. First, does strategic autonomy equal neutrality, or is it the freedom to choose what is best for the country at any given time? Can we disregard growing strategic expectations from partners? What are the dependencies that are being created by our economic and security choices? Which of them are inimical to our interests? And, how can we integrate this aspect as we make choices in a multi-layered world?

Finally, there is a question for the trans-Atlantic order. Its tough line on Russia’s military adventurism, gaming of economic relations, and cyber and information operations have been compelling. Will it hold this line when it comes to China’s actions? Or will the happenings in Asia continue to be appraised through a “dollar”- driven values framework?

Trusted connectivity, diversified sources of materials and components and resilient financial and trading arrangements are no longer buzzwords but a strategic imperative requiring all of India’s consensus, including within its business community, lawmakers and all stakeholders.

But the single most important learning through the pandemic years and the three geopolitical developments that have created turbulence for India is the burial of the post-war assumptions of the century past that undergirded our modern societies and indeed the global project that was born around the same time as India’s Independence.

Between China, the US and now Russia, we have witnessed the weaponisation of everything. Innocuous supply chain components for electronics, minor supplements for medicines, components for vaccine packaging, energy and gas grids, SWIFT system and currency and minerals and sundry materials have all been used for political coercion, waging war, or for undermining others’ interests.

Prime Minister Narendra Modi’s call for Aatmanirbharta (self-reliance) has acquired a new salience and ironically, achieving it requires astute global interlinkages and perhaps even more dense global networks for a country that houses a sixth of humanity. Trusted connectivity, diversified sources of materials and components and resilient financial and trading arrangements are no longer buzzwords but a strategic imperative requiring all of India’s consensus, including within its business community, lawmakers and all stakeholders.

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Cyber Security, Digital India, Research

Time to reassess what is good, what is bad, and what is ugly about India’s tech regulations

The emergence of new technologies has digitalised markets, societies and nations. Once perceived as a strength, this proliferation of technology is now also a vulnerability. It has made tech-governance more  political and social, and less about the traditional modes of regulation such as permissions, standards and tariffs.

India is among the most technology adept nations, a function of its people’s comfort with IT products and services as well as its late-mover advantage. It must now engage with a spectrum of evolving needs around law and regulation. This is necessary to accelerate  population-scale opportunities and address widespread risks.

Three sets of issues emerge here – understanding the nature of technology-linked risks; assessing the challenges to governance; and being imaginative in embracing new modes of regulation.

Three sets of issues emerge here – understanding the nature of technology-linked risks, assessing the challenges to governance, and being imaginative in embracing new modes of regulation.

Let us begin with the risks, which themselves are creations of enhanced democratic access. For example, in roughly two decades India has added over a billion mobile phone subscribers, with over 50 per cent of them now using smartphones. This is transformational and unprecedented.

Improved access is credited with enabling financial inclusion, efficiency in  education and healthcare, and fostering local e-commerce as well as global trade. However, a large user base is also a double-edged sword. As a result, corrective interventions need to be nimble and at digital velocity and population scale. Legacy regulation is simply ineffective.

This is best illustrated by problems plaguing social media platforms. A 2021 study found a high rate of social media misinformation in India, and attributed this in part to the country’s higher Internet penetration rate, driven by smart phones. Between June-July 2021 alone, Facebook received 1,504 user complaints in India – with a significant proportion of these related to bullying, harassment or sexually inappropriate content. Concerns are also emerging across other digital ecosystems, such as online gambling and crypto-assets. The mobile phone is a communication device, a crime scene and also an unsafe personal space.

Several state-level laws regulate or entirely prohibit betting and gambling. However, research suggests India is among the top five countries in terms of income potential from online gambling, and that the domestic online casino market may grow by 22 per cent each year. People from several states, such as Maharashtra, Telangana and Karnataka, are among the most frequent visitors to online gambling websites. The market for illegal betting and gambling in India is highly lucrative, with some estimating its value at USD 150 billion.

Offshore gambling websites often channel black money, engage in illicit transactions and launder wealth through financial intermediaries. Their operators are invariably based outside India, which makes it difficult to enforce the writ of the state. Recent investigations by bodies like the Enforcement Directorate have revealed instances of locals being hired to open bank accounts and trade through various online wallets, revealing gaps in due diligence mechanisms.

For the digital economy to flourish, it is important to evolve approaches that help resolve systemic and structural risks. It is time to reassess what is good, what is bad and what is ugly in this new digital landscape. Online gaming and online gambling must not be conflated. Similarly blockchain and sensible DeFi must not be clubbed with predatory crypto-gaming. After all, if we don’t embrace disruptive technology markets through sensible regulation, others will. A failure to capitalise may see India lose key avenues for economic growth and investment. India risk environment will then be shaped by external jurisdictions, some inimical to the country.

For instance, there are approximately 15 million crypto-asset investors in India, with total holdings of INR 400 billion. However, the regulatory and policy uncertainty has compelled crypto-asset entrepreneurs and exchanges to look to operate in more favourable markets. Exchanges such as CryptokartKoinex and ZebPay have exited the Indian market. ZebPay, for instance, is now headquartered in Singapore. In late 2021, many crypto-asset founders in India were considering moving their businesses to either the UAE or Singapore.

What we need today is new thinking and a new imagination of the digital world as not merely a virtual extension of the real, but an entirely different paradigm.

By banning cryptocurrencies altogether, nations such as China have missed the bus. India must leverage its position as the world’s third-fastest growing technology hub and seize the opportunity created by Beijing’s command and control ethos that is antithetical to innovation.  India can  and should become a global norms shaper in tech.

Tech regulation at population scale is akin to writing a new constitution for a digital nation. What we need today is new thinking and a new imagination of the digital world as not merely a virtual extension of the real, but an entirely different paradigm. There needs to be a clear-eyed understanding of what is legal, what is illegal and what may be illegal and yet requires regulations to serve and protect users and citizens.

To use a real-world analogy, since the 1990s, many countries including India have consistently distributed condoms and undertook safety campaigns among sex-workers without legalising prostitution or made available safe syringes to drug users without legalising the act. For governments and regulators, the role is no longer one of a gatekeeper that has the ability to prevent or permit activities online; it is becoming more of an ecosystem shaper and reducer of public bads.

By taxing cryptocurrency assets but not recognising these as legal tender, India has shown some welcome flexibility. It would do well to retain this nimbleness and become a co-curator of relatively safe tech platforms, services and products of the future that respond to Indian jurisdiction rather that off-shore the production of risks along with the rewards.

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China, Indo-pacific, Raisina Dialogue, Research

Walking the walk of values-based diplomacy

Co-Authored with Amrita Narlikar

The talk of values is not new to German foreign policy-makers. But the Russian invasion on Ukraine seems to have finally led Germany to walk the walk. The last week has been both frenzied and path-breaking in German politics.

On 22 February, Germany’s Chancellor, Olaf Scholz—a Social Democrat from Hamburg—called for a halt to Nord Stream 2, in response to Russian President, Vladimir Putin’s, provocations in Eastern Ukraine. This was dramatic at several levels: Germany’s energy dependence on Russia had tended to make some politicians—including Scholz’s predecessor, Angela Merkel (a Christian Democrat)—wary of pulling the plug on the pipeline project. Scholz deserves even more credit for having made this break with Germany’s Russia policy in the context of party politics: The Social Democrats had come under critique in the past for being too soft on Russia (Russlandversteher).

Germany’s difficult past had led it to ban the export of weapons to conflict-zones; in keeping with this practice, the country had blocked Estonia from sending arms to Ukraine last month.

Since the outbreak of war in Ukraine on 24 February, Olaf Scholz has taken three further remarkable steps. First, after some hesitation, he has agreed to the inclusion of a ban on SWIFT transactions with Russia. This is a strong and costly signal to send to Russia as it will also have financial implications for Germany. Second, Germany’s difficult past had led it to ban the export of weapons to conflict-zones; in keeping with this practice, the country had blocked Estonia from sending arms to Ukraine last month. Olaf Scholz engineered an unprecedented shift. In a stirring speech at a special session of the German Parliament on 27 February, Scholz stated that Germany, by supporting Ukraine, will stand on the side of Europe, democracy, and the “the right side of history”. Amongst the concrete measures he outlined, sending military supplies to Ukraine was key: “Russian invasion marks a turning point. It is our duty to support Ukraine to the best of our ability in defending against Putin’s invading army”. Germany will now be supplying anti-tank weapons and Stinger missiles to Ukraine. And third, just as significant is Germany’s announcement to increase its NATO defence spending, thereby signaling the emergence of Germany as a security actor.

In a country where deliberative democracy is exalted (sometimes to a point where it amounts to being a strategy to doing nothing or muddling through), and the burden of history is high, the swift turn towards taking greater responsibility through action cannot be underestimated. Scholz’s leadership has been critical to this development, though he is undoubtedly helped by his coalition partners in the Green Party, who have come to power on a platform of principles and values. Germany’s proactive role is invigorating for us to observe, and is perhaps also serving as a catalyst for the European Union: Witness the unprecedented decision by the EU to purchase weapons for Ukraine.

One could still take issue with the timing of all this: It would have indeed been better to signal such resolve to Putin before his attack on Ukraine, thereby, deterring war in the first place. But at a time when Germany seems to be finally walking the walk of values, it is time to not look behind, but fare forward.

Germany’s proactive role is invigorating for us to observe, and is perhaps also serving as a catalyst for the European Union: Witness the unprecedented decision by the EU to purchase weapons for Ukraine. 

It is clear that Scholz has understood the importance of hard power, in a way that his predecessors had not. As a dedicated European, he also knows that the Putin’s aggression towards Ukraine is a threat to European security as a whole. The question remains though, will he be able to extend his gaze to the global stage, and exercise much-needed leadership there? Putin is not the only authoritarian with grand designs in his neighbourhood; President Xi has been displaying similar adventurism towards Taiwan. The Ukraine crisis has brought these two players even closer, thus far. Will Scholz be the Chancellor to break out of the European platitudes of “partner, competitor, and rival” and finally call out China, just the way he has with Russia? As Mayor of Hamburg, Scholz was able to successfully attract Chinese investment to his city. As the Chancellor of Germany, he now has the onerous task of building a governance architecture that will secure the continent—and like-minded, democratic partners—from Chinese expansionism.

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