Connecting 9-11 with the 7-11
March 4,2006

“When goods don’t cross borders, armies will.”
- Frederic Bastiat

“ My slurpee is wet and oh so satisfying”
- Apu Nahasapeemapetion (The Simpsons)

Americans should see more than Apu and New York taxi drivers when they think of India. We should even see more than outsourcing jobs – although that is certainly a start.

President Bush took bold steps this week to include India in the world’s nuclear club. Bush struck a deal with Indian PM Manmohan Singh that would allow the sale of F-16s, nuclear fuel, and technology components necessary to bring India onto the world stage. If approved by congress, this may well be bigger than Nixon’s trip to China in the 1970’s.

India has never been able to legally obtain the latest military and civilian technology necessary to safely maintain its nuclear programs. India was further ostracized in 1998 when it tested its first nuclear weapon. Pakistan quickly followed suit and this lead to increased tensions between the two.

Ironically, it was the 1998 crisis that led to this week’s historic agreement. Increased tensions and the threat of war caused many US firms to re-think its Indian exposure. The Indian government quickly calculated what a mass US exodus from India would mean economically. Tensions then eased as quickly as they escalated. The crisis with Pakistan was a wake-up call that both nations needed. It’s very possible that India’s new-found financial wealth prevented a nuclear conflict.

Why should we care? Some basic facts make this very clear.

1) India is the world’s largest democracy with over 1 billion people.

2) India’s middle-class is over 300,000,000 people – more than the entire US population.

3) India’s economy is the fastest growing democracy in the world.

4) India geographically lies between Pakistan/Iran and China.

5) India has nuclear weapons.

6) Apu once made a pass at Marge, but nothing ever came of it.

In the 1990s, everyone realized how the health and welfare of India is directly tied to the health and welfare of the US. India is the poster-child for how trade makes warfare less appealing. Strong and free economies see no advantage to waging war, and thus cutting off avenues to expand wealth. The larger India’s working class becomes, the fewer people will advocate anything to disrupt the peace.

This will create a strong and stable partner for the US in the region. The more strong stable democracies exist in the region, the more pressure for China, Iran, Pakistan and others to open their societies to economic influences that create peace. This goes beyond simplistic trade pacts or diplomatic treaties. We are into wholesale cultural revolution – in the part of the world that needs it most.

Joking aside, India is an up-and-coming power in its own rite with a vibrant and dynamic culture that deserves our respect.

So, the next time you call your bank, ride a cab, or buy a slurpee -- be nice. You’re interfacing with a nationality that has the power to reshape the world.

 

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