Rudd's Australia and the Asian jigsaw

Australia’s neglect of these “other” entities in the region may not be the correct strategy and calls for some serious rethink. In addition, “great” power involvement in the region, like that of the United States, is impacting the regional dynamics significantly. However, in crafting the new rules of engagement towards China, Prime Minister Rudd has to a large extent not only “offended or ignored most Asian countries and failed to present a coherent policy towards Asia, other than for China” but has overlooked India as well.

Nevertheless, India-Australia relations appear to be improving in spite of the roadblocks. The Australian Foreign Minister Stephen Smith’s assertion that India is a “very significant power” and a neighbour in the region suggests that closer ties are sought after as Australia recognises the criticality of the relationship. However, crucial missteps and lack of political will continue to be impediments to a long-lasting positive relationship between the two key players in Asia, and more specifically in the Asia-Pacific region.

India-Australia: inching closer?

For decades, the relationship between India and Australia has been confined to two “C”s: Cricket and Commonwealth. It is interesting to note that the 1997 Foreign Affairs White Paper of the Howard government did not rank India as one of the states that “most substantially engage Australia”. But the two countries seem to have come a long way over the next decade despite occasional fall-outs.

Despite China, Oz-India relations have great potential and the two countries realise the new reality of a close partnership in the backdrop of an evolving global international system. With the Indian Diaspora in Australia being as large as 260,000 and bilateral trade touching a record A$7.25 billion during the year 2004-05, the stage is set for Australia and India to embark on closer ties on the basis of strategic considerations and economic ambitions.

The Labour Government, after assuming office in November 2007, made its intention clear of making the relationship a priority. However, ground realities do at times convey conflicting signals. Nevertheless, Smith’s recent claim that “now we need to make sure we … take our relationship with India to a new level and to put our relationship with India amongst the first order of our international partnerships” speaks volumes about the future of the Indo-Australia engagement and underlines Australia’s inclination to move closer to India.

There is no doubt that for engagements to grow deeper much more than intentions are necessary. The sale of uranium to India is a case in point. The Rudd Government, posing as a non-proliferation hawk, did not think twice before scrapping the landmark deal negotiated by the former conservative Prime Minister John Howard to sell uranium to India for its nuclear energy program. Sales of uranium to China and Russia, however, continued without any disruptions.

While harping on strengthening ties with India in the coming years, it seems that Australia is yet to comprehend the new geo-political realities and continues to be influenced by Cold War considerations.

Sale of uranium to India appears to be contingent upon implementation of the civilian nuclear deal being worked on by India and Australia’s long-term ally, the United States. Linking the sale of uranium to India’s nuclear deal with the US is, of course, Australia’s sovereign decision. But Australia must realise that even President Bush had accepted that India was a “responsible state with advanced nuclear technology”. India is a nuclear weapon power in its own right and needs to be treated as one. The Bush administration was making all efforts to accord India a special status in the international nuclear order. Australia, oblivious of these developments, seems unable to sever itself from Cold War politics and judge issues in the contemporary context.

Australia’s grand Asia diplomacy might suffer unless it treats its relationship with India as a top priority. Canberra needs to take stock of India’s strong presence in Asia and also needs to recognise that India is well on its way to achieving “great power status”.

Although the prospects of the Rudd Government getting its act together on its India diplomacy appears bright given the current trends, the overall bilateral relations are still “hesitating” on the brink of a close partnership despite the two countries sharing common interests, commitments, values and ideals.