Use the sanctions, put the WTO on hold

`India �is �a �great �civilisation' �he �says. �`A �vibrant democracy; ��World's �largest �middle �class, �a ��perfectly wonderful �country' �he �eulogises. `It could �be �a �great country �in �the �21st Century' he predicts. It �is �not �a historian �or a political analyst describing India. �It �is Bill Clinton, the US President.

The �occasion �for his unusual complimentary �references �to India �was the five part nuclear explosion conducted by �the Vajpayee �government �at �Phokaran in �the �Thar �desert �of Rajasthan on Tuesday.

"It �is �not necessary for India to �manifest �its �national greatness by doing this" lamented the US President.

But �will Mr.Clinton explain when did India become �a �great civilisation �in �his eyes ? When did it begin �to �look �a vibrant �democracy �? From when did it become �a �wonderful country ?

After �the �five bombs in Phokaran on Buddhapurnima �day �or before ? Never before.

If India was always a great civilisation Mr.Clinton, why did the �US deny the Cray Super Computer to India �after �having contracted to supply it ?

If India was always that wonderful country, Bill, why did the US �renege on fuel commitments to the Tharapur Atomic �Power Station �and made India run from pillar to post to keep �the power station going.

If �India �otherwise had manifest greatness why did �the �US pressurise the Russians to stop the Cryogenic technology �to India for its space programme ?

Mr.Clinton, �India �has �atlast understood �that �the �World notices �power, not philosophy or principles. India �has �a civilisational record of peace and harmony. It has sent out ideas, ��not �armies; �it �has �conquered �hearts �but ��not territories. �It �has suffered �invasions, �conquests, �and religious, political and economic imperialism for centuries. It �has �produced �greatmen and great �ideas �- �Advaita �of Sankara, Visishtadvaita of Ramanuja and Dvaita of Madhwa are expositions of universal application. It produced a �Buddha and �a Nanak, a Ramakrishna and Vivekananda. It was led �by Maharishi Aurobindo and Mahatma Gandhi even in its �struggle for political freedom, not by gunwielding patriots.

But �in �a World dominated by power, of money �and �of �gun, spiritual expositions have had no impact. Infact, India was ridiculed �for �not �acquiring �power.

For �decades �India slipped up in building up military power as well as economic power. And now when it asserts, Bill Clintons remember �the civilisational �greatness �of �India. �But �this �is �after Phokaran - not a day earlier.

The Bill Clintons of the World must understand that if India has been �made �to �turn to Atom Bomb �instead �of �Advaita �for commanding �the attention and respect of the World, the �US-centric �World has shown that way.

China has �conducted �35 nuclear ��tests, �under �the �very �domestic �US �laws ��for sanctions, �shot �down �over 2000 of �its �own �subjects �in Tiannenmen square in the face of US human rights slogans and engineered �Pakistan �to shoot its �missile �Ghauri �against India �- And yet year after year America has �conferred �the most favoured nation status on China. This is how India has learnt.

Now look at the response of the World. The BBC sees this as the rise of Indian nationalism. The South Asians are �happy that India is emerging stronger.

The Republicans in America see in Bill Clinton anti-India bias.

Eventhough response of Germany �and Japan are broadly in line with that of US, �the attitude �of France, Britain and Russia does not favour �any harsh �action �on �India.

In general, the �World �has �been stunned �by a soft and mild India turning out a �superlative performance �- �in �utter secrecy ducking �and �dodging �all spying satellite cameras hovering around India !

Also �the Indian national opinion is one on the issue. �The IMRB �poll shows a 91% public approval of the atomic �blast. The leaders of all parties and captains of industry have all galvanised in favour of assertive Indian attitude.

A �smallbut �powerful �segment,�which �has �suffered unmitigated blow from Phokaran is the foreign lobby in India - �the international Indian intellectual who is more �global than �national �has suffered a cerebral �paralysis. �He �is unable �to �share �the �national �joy. �He �cites �economic sanctions �and terms the blast irrational. Yes all �pursuit of �power �is �irrational. �But �that �is �what �the �World rationalises.

And now what about the economic impact of these sanctions �? Ask �these �intellectuals. The sanctions have thrown �up �a challenge to the nation - and also present an opportunity.Unilateral �sanctions �by USA and �multilateral �free �trade through WTO are incompatible.

India should have the guts to declare �that if the sanctions are enforced, it will put �on hold �its commitments to the WTO - whether it is tariff �cut or lifting quantitative restrictions.

The �USA cannot insist on free trade through the WTO �- �and simultaneously �impose �sanctions. The sanctions can �be �a blessing �in �disguise �for meeting the �challenge �of �WTO.

Already India has taken up this issue in the G.15 meeting �- the �incompatibility �between multilateral �free �trade �and unilateral sanctions. This is the right approach.

India should defend its Rupee, not by selling dollars, or by raising �interest rates - but by curbing imports, by �tariff hike and moving back to quantitative restrictions.

Actually higher �tariff �will �lead �to greater �flow �of �FDI �- �as investment is a substitute for trade.

So long as the threat of �sanctions - and sanctions operate, we shall put on �hold the �WTO.

The WTO cannot ask us to go any further, when �it can �do �nothing to stop the sanctions. The �clash �between sanctions and WTO will stifle the WTO.

This is what the legendary Vali in Ramayana used to do - use the opponents force against him - use the sanctions �against the �WTO.

You can save the Rupee - and the Indian �industry which �is under the strangle hold of low tariff free �trade.

This �is �how the challenge of sanctions can �turn �into �an opportunity.