Saturday 10 October 2015

Indo-Nepal relations and its fall out


Today (9.10.15) as Nepal Oil Corporation floated a global tender for supply of petrol to Himalayan nation, the focus of international community has again shifted to our complex ties with Nepal and has raised some serious questions with regards to our foreign policy with the Himalayan nation.  As our relationship with Nepal hit a new low today, it compelled me to get into the intricacies of our relationship with Nepal and dig out the reasons behind this love hate relationship between the two countries. This is not the first case of altercation between the two nations; rather their history has been marred with skirmishes like these in the past as well.

Nepal which got its independence in 1923 has a history which has been deeply influenced by its big neighbour’s; India and China. Although India’s relationship with Nepal goes back to ancient ages, however the year of 1950 has huge importance in the history of both countries. This is the year when both countries signed India-Nepal treaty of peace & friendship, which in later years became a thorn in the aspirations of native Nepalese. This treaty was signed by last Rana prime minister of Nepal, Mohan Shamsher Jang Bahadur Rana and India’s then ambassador to Nepal, Chandreshwar Narayan Singh. The treaty not only allowed free movement of people and goods between the two nations but also enabled the two nations to closely collaborate on the matters of defence and foreign affairs. But it was not to last forever and as the fate would have it, just 3 months after this treaty was signed, the rana rule ended in Nepal and with this the outcry & dissatisfaction over this treaty grew in political and social circuits of Nepal. Most Nepalese viewed this treaty as an invasion of its sovereignty and integrity by India.

Although this treaty was initially widely supported by both Indian political class and Rana rulers of Nepal, however after the advent of democracy in Nepal in late 1950’s and & 1960”s, Nepal & china forged better relations and thus Indo-Nepal relations took some beating in that era. The first instance of relationship becoming cold could be seen when Nepal forced the Indian military mission to leave Nepal and proposed itself as a “Zone of peace” between India and China. India however at that time bluntly refused to endorse this new stand of Nepal. This was the first Instance when Nepal acted as an opportunist and by all means they had clearly moved on with their relationship with India. With number of Indian’s living and working in Nepal growing everyday and the involvement of India in Nepal’s politics becoming more evident, the discomfort among native Nepalese also started growing.

In 1969 our relations with Nepal soured as Nepal challenged the existing mutual security arrangement between the two countries and also expressed their resentment on India Nepal peace & friendship treaty. India at that time had to unwillingly withdraw its military mission from Nepal which was incidentally formed in 1952, when Nepal feared mutiny by the communist lead and china backed political forces. Tensions came head to head in mid 1970’s when Nepal openly criticised Sikkim’s 1975 annexation by India. In 1975 King Birendra Bir Bikram Shah proposed Nepal to be recognised internationally as a “Zone of peace”. He received support of China and Pakistan internationally and India was again left red faced with its long term ally. Nepal continuously raised this issue on international forums and by 1990 it had won the support of 112 countries which included US and UK. India meanwhile continued to endorse Nepal as a zone of Peace. In 1987, India tried to arm twist Nepal by urging expulsion of thousands of Nepali speaking people from states that shared border with Nepal. Nepal reacted by introducing a work permit system for Indians working in Nepal. During March 1989 to April 1990, because of the failed talks between the two nations, Nepal was under a serious economic embargo from India. India stopped all trade ties and treaties with Nepal. To withstand this pressure Nepal presented its case before the world community which again infuriated India. Nepal then de regularised India rupee from Nepal which otherwise circulated freely in Nepal. India retaliated by denying port facilities in Calcutta, thereby cutting oil supplies from Singapore and other sources. Nepal which was once a thriving economy in Asia, was reeling under serious economic problems by 1990. Nepal’s growth rate fell from 9.7% in 1988 to 1.5% in 1989. Nepal was now quickly slipping into the league of world’s poorest nations. Nepalese king Birendra had to step down after deepening economic crisis and was forced to institute a parliamentary democracy.  Thus Nepal got its new PM Krishna Prasad Bhattarai and in June of 1990 during Bhattarai’s visit, India lifted the 13 month long economic blockade of Nepal, although India agreed to do so, on its own terms and conditions. In subsequent years the ever fluctuating Indo –Nepal ties continued to be sweet and sour as it had been in the past. Again the recent interference from India in Nepal’s constitutional matters has not gone down well with the Nepalese masses. 

The new constitution of Nepal, which has been pushed through by three main political parties –Nepali Congress, Communist party of Nepal and the Maoists remains a bone of discontent for people living in Terai region of Nepal. These are mainly Madhesis and Tharus. This is why the whole of Terai has gone up in flames since the controversial constitution was passed in Nepal parliament. Madhesis and Tahrus had high hopes from the new constitution as it would have given them an opportunity to win their rightful share. The Nepal’s constitution was not just a book to dole out a new political system but also a new social framework for various ethnicities living in Nepal who till now had been kept unified under a monarchical system. The divide in Nepal lies between the hills and the plains. People from both places had different aspirations and hence the new Nepal constitution could have addressed these issues and grievances. However that was not the case. Madhesi and Tharu objections to constitutional provisions were brushed aside. The Kathmandu leadership was complacent and was caught napping as they never thought that Madhesi and tharu people will rise up in arms on the issue. And when they did, the Nepalese establishment resorted to violence and suppression. India had well in advance anticipated this situation and during PM Modi’s visit in August, while he was addressing the constituent assembly of Nepal, he spoke about the importance of writing a sage like (Rishi man) constitution so that views and aspirations of citizens of all communities and regions can be accommodated. However the Nepali leadership, including PM Sushil Koirala, choose to ignore this advice. Sushil Koirala by all means wants to leave a legacy in his name in the history of Nepal by sticking to the newly passed constitution.

But question arises; Why Nepal would listen to India on its internal matter? What if tomorrow Nepal starts questioning India’s stand on Kashmir? What if they start talking about AFSPA of India on international forums? Is it morally correct for India to dictate terms to Nepal on its internal dispute.

Therefore Indian government needs to be very careful while taking any step to get into this Nepali imbroglio. India although is in a tricky situation as at the same time it cannot ignore whatever is happening in Nepal. India and Nepal has an open border and therefore conflict in Nepal will directly impact India as Indian people working in Nepal and businessman having their base in Nepal will surely fled to seek refuge in border states of UP and Bihar. India will have to watch out for its long term implication. Also India would not want the Madhesi crisis to go Tamil way and thus it should by all means avoid a Sri lanka like situation to take place in its immediate neighbourhood. This can have a direct bearing on India’s political scene, particularly in Bihar and U.P.

Though our PM Narendra Modi has been very vocal in his stand with regards to Nepal and how he wants Nepal to be a strategic partner to India in its quest to become a regional superpower, Whether or not Nepal will reciprocate in the same manner remains a million dollar question to be answered. Keeping in mind the current developments in Indo-Nepal relations and the ever growing Nepal-China relations, the above aspiration of India certainly remains a far cry. In fact China has already diluted India’s effect on the Nepalese economy. Since 2006 China’s commerce with Himalayan nation has surpassed India by 17 times and China has emerged as the most favourable source of FDI in Nepal in recent times. India and its businessman have been complacent and now they will have to sit and watch for their turn. China has already overtaken India to become the largest contributor of FDI to Nepal. This shows the influence of the dragon nation is at its all time high.

In this situation India’s overseas policy makers not only need to be careful about our interference in the Himalayan nation but they also need to envisage an entirely different policy for future of Indo- Nepal ties. At the same time India and Indian’s must resign to the fact that it can no longer play the role of a big boss to Nepal as it has done in the past. The 1989 economic blockade is a thing of past. Times have changed and Nepal has certainly moved on as far as its ties with India are concerned.  PM Narendra Modi may have wanted to help Nepal by his HIT formula – Highways,, Information technology and Transmission lines – as he said in his speech at Nepal assembly. However Nepalese are by all means looking in some different direction. India definitely has a situation at hand to tackle. Situation is real and the time is running out.