The Takshashila Institution

The next step

“The Takshashila Institution—an independent, non-partisan, non-profit organisation—contributes towards building the intellectual foundations of an India that has global interests. It aims to establish itself as one of the most credible voices in India’s public policy discourse, known for its unambiguous pursuit of the national interest, through consistent high-quality policy advisories.”

We registered Takshashila as a non-profit trust in Chennai in October 2009. We are building a top-notch think tank, and we are building it in an entirely different way. Today Indians are spread across the globe, have expertise in many areas and many share a deep passion for the nation. We hope to tap on this distributed expertise and turn it into intellectual output of the highest quality.

Think tanks have long been about expertise within a building. Takshashila aims to use the expertise from around the world. So you can participate in Takshashila’s initiatives regardless of where you are based. You can join us as a Member to actively participate in the think tank’s activities; or as a Fellow, if you’d like to pursue a policy research project in an area of interest.

The policy research programmes got off to a start yesterday. And we launched the website earlier today. Visit takshashila.org.in to find out more and to apply to join as a member.

Where are our defence economists?

Defence budgeting would do well with more economic reasoning

One of the topics discussed at the Takshashila Executive Programme on Strategic Affairs in New Delhi earlier this month was the issue of defence budgeting. Mukul Asher and Sushant K Singh have an op-ed in DNA today that covers one aspect of it—the need to have competent defence economists in New Delhi’s policy & budget planning establishment.

Here’s an extended excerpt:

The current focus in defence sector budget formulation, in parliamentary approval process, and in post-budget assessment is almost solely on accounting procedures and practices. Even these are outdated as neither outcome nor accrual budgeting, which permits both income-expenditure flows and balance sheet assets and liabilities to be formulated, are utilised. The capital component of the defence budget involves multi-year expenditures and planning, which annual budget cycles are unable to accommodate effectively.

The current defence budget formulation largely involves incremental budgeting (e.g. 10% increase in nominal terms over the previous period), with usually no separation between inflation-induced and real increase in expenditure. No groups at the planning or strategic levels, whether at the Planning Commission or at the Prime Minister’s Economic Advisory Committee appears to be analysing the defence budget from forward strategic planning perspective incorporating current and prospective threat perceptions. The budget proposals are also not subjected to analysis from the perspective of defence economics as a distinct sub-discipline and profession.

This is a serious gap, which needs to be urgently addressed in an era when geo-politics and geo-economics are increasingly inter-related. While this is recognised by other major powers, particularly China, India has been relatively slow in integrating the two to enhance its economic and security space and leverage.

An important step towards integration of the two would be to give greater prominence to the role of defence economists at every level of the defence sector, and encourage their coordination with economists in other sectors.

There are three critical aspects of defence economics: projecting national resources available now and in the future; working out the proportion of these resources which should be allocated for internal and external security and division of resources within each of the two areas; and tracking the efficiency with which the resources so allocated are used.

The above requires developing a competent group of analysts specialising in defence economics. Currently, no university in India, to our knowledge, offers such specialisation at any level. The need is particularly acute at the post-graduate levels. The absence of such expertise in defence related think tanks is also striking. The media and professional military and economic journals have also not promoted this branch of economics.

In the short run, such specialists would need to be trained (or recruited from) abroad; particularly in the US where defence economics is a thriving discipline. But there is no substitute for developing indigenous capacity to train its own defence economists and analysts.

As India revamps its higher education sector, and Knowledge Commission advances the scope for applying knowledge and technology to a wide variety of sectors to bring about greater economic efficiency, the need to subject the defence sector to greater economic reasoning and analysis should receive deserved consideration.[Asher & Singh/DNA]

Obama’s quasi-ultimatum to Pakistan

Okay, it’s a strong prod

In his opening remarks at the first Takshashila Executive Programme on Strategic Affairs, hosted by the National Maritime Foundation yesterday (wire report) (pic), K Subrahmanyam noted that the India media has ignored reports of how the Obama administration has put the squeeze on Pakistan asking it to jettison its duplicitousness with respect to jihadi groups. He chided Indian strategic analysts for assuming—on the basis of a lack of public statements over what the Obama administration intended to do about Pakistan—that Washington didn’t actually have a well-considered plan.

Today’s report in the New York Times supports Mr Subrahmanyam’s argument.

The Obama administration is turning up the pressure on Pakistan to fight the Taliban inside its borders, warning that if it does not act more aggressively the United States will use considerably more force on the Pakistani side of the border to shut down Taliban attacks on American forces in Afghanistan, American and Pakistani officials said.

The blunt message was delivered in a tense encounter in Pakistan last month, before President Obama announced his new war strategy, when Gen. James L. Jones, Mr. Obama’s national security adviser, and John O. Brennan, the White House counterterrorism chief, met with the heads of Pakistan’s military and its intelligence service.

United States officials said the message did not amount to an ultimatum, but rather it was intended to prod a reluctant Pakistani military to go after Taliban insurgents in Pakistan who are directing attacks in Afghanistan. [NYT]

Well, it looks like the Obama administration’s answer to the question this blog has been asking for the past year is: drone strikes and ground-based covert operations deep inside Pakistani territory.