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Following is the full text of the Admiral RD Katari Memorial Lecture delivered by Defence Minister Shri Pranab Mukherjee on “Reconciling National Security with Development: A Third World Conundrum” here today.
“ It is an honour for me to address this distinguished gathering in memory of the late Admiral Ramdas Katari, a pioneer of the modern Indian Navy who was also a distinguished diplomat and a versatile human being. Admiral Katari acquired considerable experience in diverse fields prior to joining the Navy and rose to be the first Indian Chief of independent India’s navy. Later, he was appointed as the Indian ambassador to Myanmar at a very challenging phase in the bilateral relations with that country.
Admiral Katari had the unique distinction of holding many 'firsts' during the progression of his illustrious career at sea. Soon after independence, even as the navy’s Chief of Personnel in 1949 in the rank of a Captain, he found himself virtually at the ‘helm’ to ‘steer the course’ of the future navy. He encountered many hurdles, ranging from mending the disturbed fabric of discipline among the men following the Royal Indian Navy’s mutiny of 1946, to building the force level from scratch.
I have just come back from a day with the Indian fleet and I was struck by some of Admiral Katari’s reminiscences. As the first Indian and the first flag officer to take command of independent India’s Fleet in 1956, he recounts his feelings in his book, ‘A Sailor Remembers’. When he took the fleet to sea for the first time, he recalls that it was “a mixture of pride and apprehension the latter not the result of any doubts I had of my capacity but an acute awareness that I was the focus of attention for the eyes of every officer and man in the Fleet not in any sense of critical appraisal but that their Admiral would not show himself to be less capable than his more experienced British predecessors.”
Through this poignant observation, one can relate to the momentousness of those days, the Admiral’s modesty and deep realization of the onerous responsibility he had to discharge. While consolidating the navy’s comprehensive growth during his tenure as the Chief of Naval Staff, he foresaw the imperative of evolving strong maritime capabilities and traditions in achieving the national security objectives. The Indian Navy and the nation derived rich dividends from his vision and the determination to achieve what he had resolved to do. I compliment the Navy Foundation for organising this 14th annual lecture today in its efforts to keep alive, the sterling traditions initiated by a pioneer like Admiral Katari. My subject today is “Reconciling National Security With Development: A Third World Conundrum”.
However before I proceed with the subject itself, it may be appropriate to note some of the characteristics that one associates with national security and the specific Indian experience. National security is associated with the call of arms and the heroic exploits on the battlefield but the collective Indian psyche is distinctive in being wedded to the normative concept of peace and non-violence. This has been amply reflected at different epochs in our rich history. Emperor Ashoka in the BC period renounced violence and war after a costly but stupendous military victory. And it is for good reason that HG Wells in his magisterial ‘Outline of History’ observes of this unique renunciation of military force: “Amidst the tens of thousands of names of monarchs that crowd the columns of history, the name of Ashoka shines, and shines alone, a star.” It is this collective ethos nurtured over the centuries that is part of the continuum that saw the birth of a Mahatma - Gandhiji – whose abiding philosophy of ahimsa or non-violence permeates the Indian consciousness.
This trait has been eloquently described by Pandit Nehru when he reiterates his commitment to peace and equitable justice: “Our philosophy and ideology, as I have always maintained, are not some private fads or creations of mine. They belong to the ethos of our nation and people. They arise from the spirit of our times.”
Consequently, the Indian mind abhors violence and war and it merits repetition that this characteristic has influenced the reticent Indian appreciation of our national security compulsions.
The word ‘development’ across the globe, and more so in the developing countries, is associated with the socio-economic opportunities available to the common man and the sense of security and well-being that this generates. In an increasingly globalized world where societal awareness is exploding because of the technological revolution in the media, today there is an ever-increasing demand to improve upon the existing development indicators. In a democracy, this translates into a demand for greater socio-economic opportunities and a better way of life.
That there is a definite need for a faster pace of comprehensive development was amply demonstrated in the verdict of the Indian people during this year’s national elections. Hence, it is both necessary and desirable for the link between defence and development to be discussed in public, especially since the investment in defence is a direct burden upon the average taxpayer.
Defence and Development are not mutually exclusive. While the relationship cannot really be quantified in absolute terms, there is no ambiguity on the positive linear progression between the two. The aim of military spending is to ‘secure’ the environment for the benefit of the citizen and state and catalyse development. What has however been contentious is the question, “How much is enough?”
India’s defence spending has been relatively low, currently estimated at less than 2.5 percent of GDP and within the norm for most democratic countries of the world. However, it would be misleading to arrive at conclusive inferences through calculations of defence expenditure in proportion to either the GDP, or the country’s area or size of its armed forces or population and such comparisons with other countries. This is due to the fact that each country has a strategic specificity - a set of unique security considerations and challenges, and thereby the conditions that constitute a secure and stable environment conducive for development will perforce vary.
India's defence spending is directly related to its security needs and has never had an offensive intent since historic times. Even in the case of Bangladesh where India was forced to intercede on the side of the Mukti Bahini, it was because India was inundated with 10 million refugees fleeing persecution and genocide that we were compelled to take the steps we did.
Compilation of the National Security Index (NSI) by the National Security Council in 2002 has been the first systematic effort in India towards evolving an indigenous database to calculate comprehensive national power. India is ranked 10th among 30 nations in terms of its NSI and it is pertinent that in relation to other indicators, the Defence expenditure is among the lowest in relative terms. The greater emphasis on non-military dimensions of national security in case of India dispels the impression emanating from a few quarters that India’s military capabilities may be motivated by the quest for power status. However, while this conclusion would have been cause for satisfaction if I was in the North Block, my current responsibility as the RM compels me to think otherwise.
With its long land borders and coastline and extensive maritime zones, India is obliged to spend an appropriate amount on defence to protect its territorial integrity and vital interests, especially considering that it is not a member of any military alliance. It encounters threats across the entire spectrum of conflict from macro to micro with few parallels elsewhere in the world. These range from those posed by cross-border support to low-intensity conflict and terrorism, involving both the conventional and non-conventional means. The WMD dimension also looms large in India’s security calculations. Aspirations for a ‘secure’ world without investment in defence would be considered ‘Utopian’ and contrary to the prevailing reality, especially considering that the quest of some countries like India for complete nuclear disarmament has come to nought so far. There exists a stark asymmetry for India with China in terms of nuclear and missile capability, and this is compounded by the profile that Pakistan wishes to project across our western border. India’s minimum nuclear deterrent is therefore imperative to maintain a stable strategic mutuality.
Despite the positive trajectory in relations with these neighbours, their capabilities require constant observation by the Indian security establishment. While China and India are status quo powers in terms of the co-relation between military capability and territoriality, Pakistan needs to be monitored due to its sponsorship of cross-border terrorism and the possible ‘replay’ of its military adventurism in Jammu & Kashmir such as in Kargil. There are of course other means to enhance the level of external security such as multilateral cooperation and confidence building through diplomacy. However, a concomitant military preparedness, which acts as a deterrent through either dissuasion or coercion is necessary for resolution of situations that otherwise may result in a conflict. The expenditure on defence, even in this case, balances out with the costs that would be thrust upon us in case of hostilities.
The intertwining of the external and internal dimensions of security in a vicious circle is also a cause for concern. The separatism in India’s Northeast has been receiving trans-national support through the terrestrial and maritime domains, thereby retarding economic, social and cultural development of the region. The financial nourishment is being provided by drug trafficking, the core of which lies in the ‘Golden Triangle’ comprising Myanmar, Thailand and Laos. The funds so generated are used to buy arms, which are transported to militant groups in the region including in India’s north-eastern states.
Equitable development and better governance are perforce the means to address the root causes and stabilize the internal domain, but its symbiotic continuum with external players must be neutralized concurrently through military means. Besides, there have been numerous instances of illegal fishing, poaching, encroachment and illegal immigration into and around our island territories in the east due to their virgin terrain and the obscurity that these areas offer. This transgression needs to be checked through effective and extensive surveillance by our Navy and Coast Guard.
Events that have stoked global insecurities also impinge upon India. Among these are the possibility of the proliferation of Weapons of Mass Destruction, related material and their means of delivery and the fear of these falling in the hands of non-state actors. In addition, the strain on the fabric of customary and prevailing international law and rules regarding the use of force by some powerful states resorting to unilateralism in one form or the other, will be a challenge to the Indian polity.
The relationship between defence or security and economics has had a long and rich theoretical tradition. As always among academics, there are many views. But in today’s global fiscal and trade environment, a country secure from conflict and strife denotes stability that will elicit high investor confidence - which in turn generates employment and trade, the platforms on which overall prosperity can be nurtured.
On the other hand, the primacy of the economic sector in ensuring security is now more than ever accepted. Clausewitz's famous dictum is often paraphrased to say 'Economics is the continuation of war by other means’. A higher rate of economic growth provides the latitude to actively pursue national security interests. Compared to the 1970s, India’s GDP growth in the 80s and 90s registered a higher growth at the rate of 5.6% and 6.5 % respectively.
However we had to curtail funding for our defence sector due to greater allocation in the social sectors. But may I remind this audience that in the first budget of independent India in 1947-48, out of the total revenue expenditure of Rs. 193 crores, as much as half amounting to Rs. 93 crores was spent on the military sector. The essential point is that whenever the country perceived the need for higher or appropriate allocations for defence, this has been made available within the overall national fiscal constraints.
Today, we find ourselves trying hard to strike the right balance in a consistent manner. The current Budget Estimate (BE) of defence expenditure of Rs. 77,000 crores may have grown 16.5 times from Rs. 4,651.80 crores for 1981-82 (and 1.7 times from Rs. 45,694 crores for 1999-2000). The declining value of the Indian rupee in the global context reduces the efficacy of this figure. However the realistic assessment of defence expenditure must be made relative to the Total Government Expenditure (TGE). This proportion has been steadily decreasing from 11.09% in 1989-90 to below 6.5% now. This decline has been adversely affecting the capital expenditure for modernization, especially since the revenue expenditure has been on the rise. It is therefore urgent to redress this decline and reach a higher sustainable level over the next few years.
The Common minimum programme of our government is committed to the modernization of the Armed Forces to keep abreast of the times and capable of fighting a future war, which includes incorporating the Revolution in Military Affairs (RMA). Of course, while superior technology provides the competitive edge in wars, it also helps to cut down standing manpower costs. Fiscal pruning to optimum levels must be achieved through streamlining and reorienting the structure and doctrines of the Armed Forces to cater for the changing times.
A manpower-based military needs to gradually make way for a high technology one that is based on force-multiplication through precision-firepower and network-centric domain awareness. A thrust on creation of a synergy among the three services for joint operations is also necessary, such that the aggregate of their efforts exceeds the sum of their individual capabilities. There is even greater scope for integration of supporting functions like logistics, communications and intelligence on lines similar to the medical services, which would theoretically lead to notable savings in expenditure.
It ought to be taken into cognisance today that the link between a country’s economic growth and its integration with the global economy is progressively strengthening. Due to the globalisation of macro-economic determinants, vigorous flows of energy, trade and capital are the central elements of the new order. The rapid pace of India’s economic growth has caused an increasing demand for energy resources. Currently the world's 7th largest oil consumer, it is expected to become the 5th largest by 2020 after US, China, Japan and Germany.
Robust economic interaction with other countries also serves to create stakes and interdependence. These indirectly bring about a correspondence of strategic interests and thereby enhance a sense of shared security. There lies immense potential to enhance such interactions, and the Prime Minister’s recent summit meeting with the European Union is case in point. While India’s software service exports alone are estimated to increase to US$ 50 billion by 2007-08, this trend is indicative of India’s global competitiveness in other services as well. India’s trade-related interactions have even greater scope for expansion considering that its share of world trade stands today at only about 0.8 percent and the share of merchandise trade in relation to GDP is also relatively low at about 25 percent.
Hence, this economic potential needs to be translated into actual economic performance for sustaining India's security and enable it to realize its legitimate goal of being an emergent comprehensive power. 97 percent of India’s trade and a bulk of its energy supplies are sea-borne, which implies that the security of the sea-lines is vital for national security and development. Contributing to the security of these ‘life-lines’ is the key challenge for the Indian Navy, besides its other responsibilities such as securing India’s maritime interests and the defence of the island territories and offshore installations.
The Defence Industry has also been central to the military-expenditure versus economic-growth debate. The correlation between financing the Defence Research and Development (R&D) on a country’s economic growth has not yet been unambiguously established despite much global research effort. While arguments put forth by antagonists may be valid, when security imperatives compel a country to allocate resources to such ostensibly ‘non-productive’ usage despite its fiscal inefficiency, it is generally observed among developing countries that those who are producers of certain core military technology and equipment experience positive impact on their economic growth.
Besides, unless a country has a proper technological and industrial base, its security apparatus will always be at a handicap. Technology in the military sphere translates into power and conceptually a superpower is one that has access to and controls superior technology. It may be worthwhile to take a peep into Indian history. Despite the common belief that gunpowder had its genesis in Asia – the lack of a robust metallurgical industry enabled the Europeans to develop cannons and guns. India had its first glimpse of cannons when the kingdom of Calicut faced an onslaught from Vasco Da Gama’s ships.
Despite this, no lessons were learnt and history was repeated at Panipat in 1526 when the Rajput army was decimated by cannons of the Mughals. Similarly the tank overwhelmed the horse-mounted cavalry and in the naval domain this audience is more than aware of the huge advantage that accrued to the Allied maritime forces with the development and monopoly of radar. We are also aware that such critical military technology is tightly controlled by some nations through regimes and cartels and the indigenous effort may not be adequate to the security needs of the country.
Consequently a country like India needs a dynamic equilibrium between indigenous production and external acquisitions. It needs to capitalize on its intrinsic strengths of brainpower and technological achievements achieved so far. Simultaneously, politico-diplomatic efforts should nurture joint ventures, while resorting to off-the-shelf purchases, where absolutely unavoidable. R&D Investments in areas such as life sciences, avionics and aeronautics, data management, communications, electronics and even missile development also have civilian applications. Thus this leads to assimilation of new technologies and thereby facilitates a wide-ranging socio-economic process of industrialization.
The encouragement of the private sector and brightened prospects for joint ventures with foreign companies being allowed to take up to 26 percent of equity in Indian defence corporations is a step forward in that direction. In these, we expect to take the necessary steps to reduce the prevailing restrictions and caveats. The defence industry would be invaluable for India to save foreign exchange and provide employment and if it could attain a self-sustaining level, it would be an asset rather than a liability towards economic development through its contribution to the Gross Domestic Product (GDP). A review of our arms export policy would also be necessary.
The armed forces also have valuable roles to play in varying degrees to enhance the level of security and hence assist in the broader national developmental objectives. This may be achieved through various non-military means such as disaster management, multilateral security bonds and diplomacy. Aid to civil power to manage a crisis or in environmental activities can be provided with ease and effectiveness by the Armed forces due to their proven organisational capabilities and human resource expertise. There are many examples of such contribution by the defence sector. The military is often called upon to undertake major infrastructure development projects, like roads, railways, airports and communication particularly in border areas to bolster defence and security. These assets are also used by the civilian population. The Armed Forces have been providing food, clothing, shelter, education and medical facilities to the civilian populace in remote areas, which also facilitates national unification.
Due to its intrinsic attributes, the Indian Navy has a special diplomatic responsibility to strengthen bilateral ties and to project power and presence in a calibrated manner in pursuit of national interests. Together with the Coast Guard, it has also been actively involved in search and rescue operations, combating maritime crimes like piracy and arresting maritime pollution. This was acknowledged by the global and regional community from the Maldives effort in 1988 to the rescue of a hijacked Japanese merchant-ship in 1999.
The expertise and experience of ex-servicemen can also be fruitfully harnessed in the civil sector after completion of colour service. Their abilities have already made significant inputs to a wide spectrum of professional activity ranging from private security to certain technical areas. While the retired Air Force personnel have been contributing towards civil aviation, the retired naval personnel form a major part of India’s merchant marine that plays a significant role in the country’s strategic calculations. In addition, the defence personnel have always been looked upon across the nation for their patriotism, courage, integrity, entrepreneurial leadership qualities, professional dedication and military values. This also serves as a role model and has a positive effect on the country’s youth and brings about intangible dividends.
It is therefore a matter of almost complete national consensus that defence expenditure is not in contradiction with resources allocated for development. The so-called ‘guns-versus-butter’ debate must not be an attempt to find alibis for inadequate investment and inappropriate fiscal management in the development and social sectors. A sense of equitable security strengthens and reinforces the development effort.
While our endeavour towards such security needs to be sustained, there can be no alternative to the focus on the country’s economic growth. In terms of purchasing power parity, India is already among the top economies in the world. This ranking is bound to go up if the present growth rate is maintained or increased. Though it may still take in more time before prosperity percolates down to the lowest layers of the Indian society, including in rural India, we may be hopeful of achieving our resolve to do this in the not too distant future. We must strive for the Indian economy to gather sufficient momentum such that the debate between guns and butter becomes redundant.
Ladies and gentlemen, let me conclude by recalling one of the most astute ancient Greek historians whose impact on the evolution of maritime thought and strategy has been profound – Thucydides (455-400 BC). He reminded the people of his times that “States, like men, cannot be blamed for providing for their proper safety.” We should ponder over the import of this tenet when we contextualize defence and development. I thank you for your patience”.
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