Wednesday, September 22, 2010

Kashmir: The Way Forward......



It is heartburning to see the valley under fire. The situation is a national emergency, if indeed we consider Kashmir to be an inseparable part of India. Stone pelting and bullet firing is no pleasant sight and my heart burns for the Kashmir and its citizens who have ultimately lost patience after years of being under siege.

I do recognize the political compulsions and complexities in initiating and continuing any kind of dialogue over a subject as complex as Kashmir especially with a counterparty that is vulnerable to short temperament and outbursts. However we do need to move forward and for a first and shed our image of a soft nation in taking the bull by its horns.


Being an economist at heart (with a ‘finance ka kida’ in my mind) I tend to weigh every possible situation from an economic viewpoint. India has finally arrived at the world stage and everyone (including India bashers) is sitting up and taking notice. They say ‘make hay when the sun shines’, but are we making hay when the sun is indeed shining on India? Now is the moment of reckoning for us, when we have a young educated work force, increased fiscal and intellectual capital and high opportunities for growth. The economy is running at full throttle, not concerned with how rests of the economies are panning out. We are at the same time engulfed in our domestic issues like internal security, insurgency, and lack of political decision making. These internal disputes and complexities (including Kashmir problem) are preventing us from operating us at full capacity and are taking off more than a couple of percentage points from our GDP growth rate. The complexities of Kashmir are hurting the counterparty even more as it values Kashmir more heavily than even the right to live for its citizens.


Both India and Pakistan wants a bigger pie of the cake whenever they come anywhere close to discussing Kashmir, but can’t we think of a situation where we increase the size of the cake and satisfy alter egos of both parties. Radical and extreme situations invite radical solutions, even though any radical discussion or thought on the K word invites sharp reactions.

Here is my piece of the mind on the way forward. Kashmir (excluding Jammu) to be given autonomy based on self governance, the territorial right remaining with India (of Indian part of Kashmir), state functions being the prerogative of the autonomous body. SAR Kashmir, India (Special Autonomous Region of Kashmir, India) being given a tax holiday, economy concessions and packages for up gradation of social and physical infrastructure. Line of control should be regarded as international border for all purposes.


Pakistan Administered Kashmir or “Azad Kashmir” (as it is fondly called) be made a SAR Kashmir, Pakistan and a similar self governance mechanism to be followed as discussed above for Indian part of Kashmir. Increased bilateral exchanges like trade and commerce, social, cultural and religious exchanges should be facilitated between both Indian and Pakistan’s SAR Kashmir and increased focus should be made on economic self dependence of both regions.

As discussed, the Line of Control should be made a sealed border to check illegal immigration and infiltration. GOI should also consider fixing its porous borders with Nepal and Bangladesh to check the free flow of infiltrators in and out of the country.


Kashmir is indeed a special case and very close of my heart not only because its people have suffered since long while rest of the country has moved forward but also because it is the most beautiful part of India, and its hurts to see it bleeding. Economic logic also says; restructure the loss making or bad performing divisions by a spin off or a split off. No one is suggesting a split off, but a spinoff is certainly possible.

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