Select Committee on Foreign Affairs Minutes of Evidence


Examination of Witnesses (Questions 180 - 199)

WEDNESDAY 31 JANUARY 2007

MR MICHAEL GRIFFIN, DR MATTHEW NELSON AND DR GARETH PRICE

  Q180  Ms Stuart: So they are not clear what they actually want?

  Matthew Nelson: There is a variety of different views, even within Azad Kashmir.

  Gareth Price: That is right. People sometimes talk about the plebiscite, which raises the question of who votes. Lots of Pandits—the Hindus from Kashmir—have left; do they vote? It all becomes very complicated, and it is so far down the line.

  Last time I was in Srinagar, what came across was the phrase, "We want them to leave us alone." That referred to the militants as much as anyone else. There is tiredness of the conflict, which might not always be reflected by people abiding in the UK or the militants themselves. Among the general public in Kashmir, however, there is a hope that it goes away. The way in which that is expressed will vary. Does "leave us alone" mean "independence", or does it mean "stop the fighting"? It might mean a wide range of things, but it is hard to find a support base for the militants.

  Q181  Ms Stuart: To what extent are those who want separatism involved in the peace process? Are they sidelined?

  Matthew Nelson: My sense is that they are largely sidelined.

  Q182  Sandra Osborne: Are you aware of the jihadist Islamist terrorists in Kashmir having any links with UK-based extremists?

  Matthew Nelson: This lies well beyond my area of expertise. I think that it is possible to imagine that among those in Britain who have concerns about politics in Kashmir and hold a range of different views about it, there may be some who feel that militant forms of jihad are the only way to go in Kashmir. In that sense, the range of opinion among Muslims in Britain could include some who find that approach attractive for whatever reason. At that point, linkages through families, visits and all kinds of other exchanges could emerge to create militant links. I do not think, however, that there is a systematic pattern of politics in Britain that ties in with a pattern of politics in Kashmir to exacerbate the link to militancy.

  Michael Griffin: May I add something to that? I do not have anything more expert to say, except that the kind of terrorist training camps that existed in the mid-1990s, which might have trained British Kashmiris who were then inflamed to go either to Kashmir or, two or three years earlier, to Chechnya or Bosnia, were all located on the Afghan border. In the same way that younger Pakistanis ended up in eastern Afghanistan training for the jihad, the previous generation might have ended up in Kashmir.

  Q183  Sandra Osborne: In response to some of the terrorist attacks, the two Prime Ministers have issued statements and set up a joint control commission to tackle terrorism. Some of the statements have been quite controversial. Can you comment on that situation?

  Gareth Price: At first, the proposal was opposed by some members of the BJP, who were asking why we were sharing intelligence with the Pakistanis when we were accusing them of complicity. It is worth asking about the extent to which that was political point scoring.

  The joint co-operation is one of many confidence-building measures. It makes sense if India and Pakistan are to move forward. After the Mumbai bombs, India accused Pakistan of involvement and complicity, to which Pakistan said, "Let's see the evidence". That is the sort of process that is happening. I do not think that it was part of a wider, deeply thought-through confidence-building measure; it was a reactive attempt to make something good come out of the bomb blast, to build on it and move forward. It was controversial, but I think that it was a positive step.

  Q184  Sandra Osborne: In his evidence to us, Professor Bose told the Committee that the high calibre of training and logistics support that had been available at certain times to their terrorists in Kashmir would point to the fact that they had had at certain stages support from the intelligence service in Pakistan. Do you think that that is the case? That would be one of the impediments to the Prime Ministers taking the initiative on a joint basis. Is that a fair comment?

  Gareth Price: That was the allegation last week or the week before when the firing started over the border. India's claim was that there was firing to distract the army and to allow militants to pass through. It is very hard to say whether that is still going on. A recent Human Rights Watch report claimed that militants were still receiving arms from some elements within Pakistan, but it is very hard to assess how deep-seated that is. There has certainly been a big change from five or 10 years ago, when links were much stronger.

  Michael Griffin: If you look at reporting from the war in Afghanistan and the role of Pakistan or the ISI in supporting the Taliban, al-Qaeda or other insurgent forces in their actions against either allied NATO or Afghan troops, you will see that there seems always—and this is done through the rather obscure intelligence provided by US military advisers, witnesses and generals on the ground—to be a situation where, on the one hand, Pakistan is rooting out and shooting at incursionists and terrorists in Afghanistan, while another element of the Pakistani military-industrial base is encouraging, financing and training them. These two policies, rather than cancelling each other out, appear to run hand in hand, so to a certain extent, you have a dual foreign policy. Possibly one is above ground and the other one is underground, but they then change from being underground and overground, and they get rather confused at the same time. So you have the new Defence Secretary of the United States accusing Pakistan of being helpful in trebling the number of cross-border attacks by Taliban against NATO and US forces since signing a treaty with Waziri Taliban back in September, but Pakistan is helping. Once you have found a very useful trick in dealing with your adventurous foreign policies, I assume that the same thing will probably happen in terms of the on-off active war in Kashmir.

  Chairman: Now that we are on to Afghanistan, that is rather convenient. I bring in John Stanley.

  Q185  Sir John Stanley: Mr Griffin, with all your expertise on the Taliban, do you think that the Taliban that is confronting us in Helmand province and the Kandahar area now is basically the same Taliban, with the same motivation and determination as the Taliban that took over the country before we threw them out of government? Or do you think that they have changed?

  Michael Griffin: I think that they have radically changed since they were defeated in 2001, not just because they have had to learn a lot of very valuable lessons about how to survive against the world's largest military power, but because a large number of Soviet jihad-era fighters either have been killed or have been replaced or retired, and new generations are coming in with new experiences, and definitely better sources of training. They have turned into a much more professional fighting force than they were at the time that they came to power in 1996, or at any time since then until their fall from power in 2001. If you read between the lines of British military reports from Helmand province, or any American reports from Kunar province on the east, you will find time and time again that non-commissioned officers upward will talk about the courage, the accuracy and the good training of the Taliban that they encounter, as well as their ability to move very nimbly over the ground, and to have timed, careful attacks from three or four different directions with good covering fire. The only thing that seems to throw them is air support and all that that entails, particularly fixed-wing bombing.

  It strikes me that one of the things that came out of Helmand province was the notion that if the Taliban had enough wit to figure out how many British and allied forces aircraft could be in the air at any one time—say, five to 10—and if they were to set off 20 attacks at the same time, they would totally overtax that. That was already happening in Operation Medusa: they were taxing British helicopter support to the limit. This requires a much greater sophistication of military planning than the Taliban had before.

  Everybody assumed that the original Taliban were a mixture of mullahs and a few fanatics—although the Afghans were never that fanatical—and out-of-work members of the former Soviet-trained army; people with experience in how to use rockets and various other pieces of modern technology grafted on to this Lashkar type of formation. They have changed a lot since then and, as you will have heard, have imported a lot of techniques and technology from the Iraqi experience.

  Q186  Sir John Stanley: So you are saying that in military terms they are considerably more sophisticated than they were and therefore present a more severe threat?

  Michael Griffin: I think that they are. One of the things that we have not seen during the baptism of fire and the baptism of NATO abroad, both of which have happened in Afghanistan—it is the one thing that is stimulating the United States not to circulate out 3,500 troops as intended, but to maintain troop levels in Afghanistan—is the idea among Taliban that they were so successful in both Helmand and Kandahar in the second half of last year, before the snow cut them off, that they should think next about co-ordinating with attacks from eastern mountain ranges against the United States. Once that starts happening, and there are two fronts fighting hand in hand, Afghanistan will begin to look like a totally different war game.

  Q187  Sir John Stanley: Turning to co-operation between Afghanistan and Pakistan, there seems to have been material progress since our Committee's last visit. The trilateral commission has been in operation and there have been further developments beyond that. There is no doubt that there is an incredibly difficult physical problem in terms of the length and topography of the border and the number of people who cross it. We are told that some 200,000 people cross the border every day, 30,000 of them at one crossing point alone. It is an almost impossible situation. The border does not admit of a physical barrier. It might be possible to do something with sensors, but that would require vast investment. Mining is unthinkable and would anyway be contrary to the anti-personnel land mines treaty and so on. There is an enormous problem there.

  Do you see in your contacts with the Governments of Pakistan and Afghanistan more realism on the part of both Governments and a greater readiness to recognise that, instead of sitting back and blaming each other for the security difficulties that both countries face, they would do much better to start seriously co-operating at intelligence, military and political levels?

  Matthew Nelson: Yes, the landscape is changing quite a lot. Pakistan and Afghanistan could find a great deal to co-operate about, but it is also important to understand the domestic politics within each country with respect to the Taliban. Both Governments have found that Pashtuns are an important constituency, and among the Pashtuns one aspect of Pashtun politics involves the Taliban. Both in Pakistan and in Afghanistan there has been pressure to engage at some political level even moderate Taliban. That type of thinking is evident in the agreements that have come forward in Waziristan on the border between the two countries and in Musa Kala in Afghanistan and so on.

  Interestingly, some of the disagreements between Musharraf and Karzai, with each accusing the other of failing to tackle the Taliban, grow out of the pressure that each faces from outside—say from the UK and the US—to tackle the Taliban, when the fact of the matter is that both feel political pressures to find some way to work with aspects of the Taliban, and when they are accused for doing so, they then blame the other leader for keeping the Taliban alive. Some realism here would be helpful. The Taliban is not representative of Pashtuns, but it is one part of the Pashtun political landscape. I think that recognising the politics of the Taliban as opposed to simply its militancy, and separating the politics of the Taliban from the politics of al-Qaeda, can be fruitful in our thinking about the different configurations.

  When, for example, Karzai says, "When I am in Kandahar I find that I have to talk about and occasionally with members of the Taliban," that should not necessarily be read immediately as supporting insurgency. That should be read as politics within Afghanistan. It is helpful to differentiate the military and the political when it comes to the Taliban.

  Q188  Sir John Stanley: Thank you. While we were in Afghanistan and in Pakistan we had a number of discussions about the possibility of building on the tripartite commission, which is military to military, and whether some form of reasonably structured dialogue might be created at the political or civil level. There is a great deal of mutual suspicion in both countries but it appeared that at the highest level there was a degree of sympathy and support for that to happen. I wonder whether you are getting any feedback in that area from where you sit. We had a considerable debate as to whether it should be called a jirga, but we will leave the terminology aside—a meeting.

  Michael Griffin: I have not heard about the idea of a joint jirga. I realise that it was proposed in Washington DC and initially came from the two presidents' visit over there. It was considered to be the next step forward, following the de facto decision by Musharraf to have his own private jirga/peace agreement/standing down of his own army in Waziristan to which my colleague referred a little earlier. I have suggested that, militarily, that did not have the same impact in Afghanistan as Musharraf was promising in Washington that it would, although it has probably reduced the stress on the Pakistani military, which I believe had as many as 70,000 forces in north and south Waziristan at one point, so there have not been quite as many attacks on Pakistan.

   Moving on to your more immediate question of a bilateral jirga with bilateral Pashtun, I had not heard that that idea had been moved forward at all. This is again one of those coded words: can we truly have one without resolving the Durand line issue and could we possibly have a jirga around that first, since that tends to underpin?

   Matthew Nelson: On the final point of whether a joint jirga could resolve the Durand line question, my sense is that a joint jirga would not be the place to look for a fixed boundary. There are many ways in which a joint jirga could have interesting things to say, but that issue might not be the first one on the agenda.

  Michael Griffin: I only mentioned that point because you started a line of questioning in terms of whether building a more stable border fence between Pakistan and Afghanistan was on the agenda, and I suspected that it could be on the agenda only in a joint jirga, in which case neither of the Pashtun delegations will agree either way, so it is off the agenda. But whether the jirga concept is off the agenda as a result, I could not possibly say.

  Matthew Nelson: I do not think that the jirga concept is off the agenda yet. A number of groups are suggesting this type of forum, both within local party politics in Pakistan—say the Awami National party looking to traditional forms of negotiation in a jirga—and in Afghanistan resurrecting the idea of the jirga. The concept is alive.

  Q189  Mr Horam: Let us return to the Taliban and their strength. Mr Griffin, you were talking about military strength and you, Dr Nelson, were talking about the political aspects of it. Dr Nelson, you were almost saying that, if the Taliban cannot be defeated militarily, they would have to be accommodated in some way on both sides of the border. How do you see that unfolding, if it does unfold?

  Matthew Nelson: Instead of focusing on the Taliban as a religious movement, I focus on Pashtuns as a political factor. The initial dispensation of the Government in Kabul after 2001 and so on was not necessarily regarded as favourable for Pashtuns. Some of the concern about that Government fuelled initial concern among the Pashtun majority in southern Afghanistan and some political resentments grew from that. My focus is not so much on the Taliban as on Pashtuns and their quite different objectives in Afghanistan compared with some of the other groups.

  Q190  Mr Horam: How can you deal with the concerns of the Pashtuns in a way that contributes towards a more stable situation in Afghanistan?

  Matthew Nelson: Rather than put forward a solution about exactly how the Pashtun voice will be heard, some of the concerns that Gareth raised earlier about the importance of process are important. The tripartite agenda or suggestion that has come up at the meeting might be one way, making sure that Pashtuns are acknowledged in that process. Making sure that there are regular meetings between different types of Pashtun leaders—Taliban and otherwise—in Kabul, Islamabad and Peshawar could be very useful.

  Q191  Mr Horam: Mr Griffin, you were talking about the military strength of the Taliban. What you said was rather frightening in a way because you put forward the idea that two fronts might develop from the east and so on. What are the implications of that for the British and American effort there? Will the situation get worse?

  Michael Griffin: It all tends towards the notion that it is going to get worse before it gets better. Not a single cited senior officer in either NATO or the United States forces has suggested any other difference. The incoming Defence Secretary in the United States has said the same thing, hence the boosting of forces. In January or February, Britain will take possession of some up-armoured personnel carriers, which should improve the security of British forces on the ground in Helmand province, and it will take over joint command of all NATO forces in January, which gives it an opportunity to co-ordinate its operations in the east and south in a better way. The United States has also given it control over a 3,500 rapid deployment force to be used wherever it wants, whether in Helmand, Kunar or Khost, which could change the shape of the conflict.

  One of the areas that is always interesting in Afghanistan and other countries—in the terror network, if you like—is where the money comes from. An awful lot of money is going into the Taliban campaign, whether in the form of new training or new recruitment. You might have read The New York Times journalist in Kabul who gets to interview Taliban from time to time, because they have become quite outspoken and good manipulators of the media and video. That is unusual for the Taliban because they have always eschewed all of that. They are on very good salaries compared with the Afghan soldier who is scratching $80 a month and anything else that he can steal compared with the Taliban who is on $160 and, for example, a motorbike and fuel per month for 10 days' work. Those are the figures that I have seen, so there is a good and solid flow of funding coming. To a large extent, armies march on their bellies; they do not march and fight on belief alone, if at all.

  Matthew Nelson: I want to add some specificity, so it will be a bit easier to understand what I was trying to suggest when I said to bring in the Pashtuns. It is important to recognise why that is a difficult idea, as well as an interesting idea. In Pakistan, Musharraf has some domestic political concerns when it comes to regional governments. For instance, Musharraf is sitting in Islamabad and wondering what will happen in Sindh or in North West Frontier. When it comes to bringing Pashtun voices into the conversation, that creates some anxieties about regional politics within Pakistan. In Afghanistan, bringing in Pashtun voices and perhaps the religious voice of the Taliban among Pashtun voices creates anxieties about the future of the Afghan Government from the perspective of coalition forces, and the religious dispensation of that Government. In both senses, there will be concerns about what bringing Pashtuns into the conversation might mean.

  Comparison with the Kashmir situation could be helpful. There is a group—the Kashmiris—that crosses the border between India and Pakistan. In the west, of course, the Pashtuns cross the border between Pakistan and Afghanistan. Bringing the group that crosses the border into the conversation has been difficult in both cases, but many observers feel that bringing these cross-border groups into a conversation about future political solutions is really important.

  Q192  Mr Horam: Given the strength and sophistication of the Taliban that Mr Griffin described and the difficulty of dealing with them militarily, do you think that that political solution is ultimately going to happen?

  Michael Griffin: In the few months before Christmas, I became very interested in the Senlis council—have you come across the Senlis council? Its proposal, which is several years old now but has gained greater attraction, is to try and separate the issues of security and the elimination of the opium poppy on the ground, in the southern provinces chiefly. Also realise that the NHS is crying out for some relief of the pain deficit through the provision of licit and controlled supplies of painkillers from Afghanistan, composed of heroin and opium subsidiaries.

  That would be an interesting idea to explore in the south: imposing a 10-year hiatus on destroying the opium crop, which sustains the Pashtun population there and—if you believe the World Bank—keeps the entire Afghan economy bubbling over healthily. If you could create a 10-year gap before eradicating opium and, at the same time, insert British and NATO forces whose job was to create security but not to destroy the economy, you would do a great deal for Afghanistan. However, judging by the conversations I have had with people about this, the time for this idea has never come and will never come, because Britain, which is leading the fight against opium in the south, and the United States, which does not believe in any other relationship with drugs apart from war, will not accept that solution in Afghanistan. However, I would argue that that would be one way of separating the Taliban from the very large population—perhaps 1 million families strong in the south—who depend upon the illegal drug.

  Q193  Mr Horam: May I finally ask you about links between the Taliban and al-Qaeda now? What is the state of affairs between them?

  Michael Griffin: It is difficult to say. Five years of fighting, propaganda and media coverage have tended to cover over the tracks that might now link the fates of these two different movements. I think that there are still links of some kind in the two Waziristans—not necessarily cross-fertilisation, but the drinking of tea between like-minded veterans. They might be from Uzbekistan, Chechnya or Iran or they might be volunteers from Arab countries who have got stranded or married there. They could be recruited to some kind of a rent-a-jihad situation, whether with the Taliban, or for a war in Tajikistan or even an operation in Kashmir.

  I think that there is some overlap between these organisations. There seems to be strong evidence that the al-Qaeda of the Two Rivers—that is, in Iraq—transported Taliban commanders to Iraq, in late 2005, for training in how to produce more efficient road-side bombs—improvised explosive devices—such as shaped IEDs, which create a bigger blast. Certainly, there has been training, possibly from Iraq again, but certainly being sponsored from the Gulf, in how to convince Afghanis of the value of being a suicide bomber. There have been an awful lot of suicide bombs in the south and the capital of Afghanistan in the past two years. However, the extent to which al-Qaeda gives the Taliban instructions, rather than renegade elements—as they call them—of the Pakistani security forces, is anybody's guess at this point.

  There is no evidence of anything systematic, but there might be a kind of old boy's network. For example, Jallaluddin Haqqani was considered to be commander-in-chief in the eastern frontier area—so it is an American area—of Khost, on the Pakistani border with North Waziristan. Back in the mid-1990s, he was the grand old man in the training of Harakat fighters in Kashmir and an old friend of Osama bin Laden. He controlled the camps and gave bin Laden access to them.

  That gentleman continues to fight and has connections with al-Qaeda. The Americans keep trying to assassinate him using Predators, but they keep failing. He has those connections, but they are no different from those that he has with Inter-Services Intelligence, generals, former colleagues in the various Taliban Governments or those before the Taliban, or with old colleagues—he is in his 50s or 60s—who fought against the Soviets. They are all one great generation of astonishingly interrelated people with businesses from Korea to the UAE, and in America as well. But I do not think that there is anything systematic.

  Gareth Price: On defeating the Taliban, there is an issue of Afghan disillusionment with the Government, largely because expectations were so high a couple of years ago. A lot of international aid and assistance has been given to Afghanistan, but the benefits have been rarely seen by the average Afghan. We hear that some $4 billion is coming into Afghanistan but quite evidently much of that will go out in profits to contractors and be spent on security. Corruption is an issue as well. And the actual thing that happens clearly does not cost $4 billion. So there is the assumption of widespread corruption within the Afghan Government, which is creating disillusionment, and a much more profitable arena for the opposition—primarily the Taliban—to operate in. That, as well as a military solution, is an essential part of the problem.

  Q194  Ms Stuart: I want to come back to something that Mr Griffin said about opium and how it could be used by the NHS. You seemed to imply that the UK is taking a lead and that the US does not want it to happen. However, our impression was that the Afghans also do not want that. At the moment they cannot even lock up any of their drug barons let alone have controlled growing. They do not support that idea. Or are you saying that the UK and US have told them not to?

  Michael Griffin: I agree with everything that Gareth said about the corruption. If it is not aid-related, it will be drugs-related—and it goes to the very top. Anybody who objects, as I believe Ali Jalali, a former Interior Minister, did, is forced to resign and go away. Everybody knows that this is a corrupt society. This is harvest time for them, and I guess that a lot of people fear that it will dry up pretty soon and that they had better get their piece while they can.

  In the same way that the United States is in charge in Iraq and, to some extent, of a Government whose interior ministry is involved in death squads, in Afghanistan, the US or the coalition, which is in charge of money for the redevelopment and reconstruction of Afghanistan, feels that it owes it to the sovereignty of its new creation not to get involved in prosecuting the most blatantly corrupt people involved in the illicit trade, which we are also interested in eradicating. I am not quite sure how that operates at all.

  Having said that, I think that if Karzai was looking to create a highway of conversation between his Government—which is not at all popular, despite the fact that it does have quite strong roots in the clans and tribes of the Pashtun people—and others, and if he were able to offer in the south some kind of initiative that was carefully coded and embedded within traditional structures of self-control, which are strong in Afghanistan, whereby village A, which produces 250 kg of pure opium paste per year against the law, was able to produce 250 kg legally and have it purchased at a basic minimum price for 10 years—and they were able to regulate themselves and make sure that their neighbours were not growing more than that 250 kg—I think that local people would find this a very creative way of ending that practice and introducing opium substitution crops over a longer period, while at the same time allowing them to carry on doing a bad thing for a little bit longer while they got transferred into different ways of making a living.

  Q195  Chairman: No doubt we can come back to that issue another time. That is something we have raised with Ministers, who have given us a rather different view. Can I ask you about India's view of the situation in Afghanistan? How important is what is going on there for India?

  Michael Griffin: India has always had quite a good relationship with Afghan Governments, both before and after the Taliban, but never during the Taliban's five-year rule, when Afghanistan became associated very much with the 1999 hijacking of Indian Airlines jets flying into Kandahar and its association and support from the ISI made it look like simply another manifestation of Pakistan's unofficial policy of running proxy terrorist operational wars against India, whether in Kashmir or in the south, or against urban targets. From 1993 onwards, India has been the target of terrorism, much of which could be said to have originated in Afghan training camps with the assistance of Pakistan and the ISI.

  To a large extent, I guess that India sees in Afghanistan a resolution to part of its security problem with Pakistan. I get the impression that India is quite eager to make itself a generous big brother to a new kind of democracy in southern Asia, and to that extent, it has become the largest regional donor to Afghanistan. At the same time, it has steered fairly clear of any involvement in the development of the Afghans' military capability for fear of creating any further rift with Pakistan, which views Afghanistan very much as its own backyard in the continuing rivalry with India.

  Q196  Chairman: Afghanistan has just joined the South Asian Association for Regional Co-operation. I had the experience of standing at the Wagah crossing and seeing the lorries of onions being unloaded and carried by bearers by the sackful from the Indian side across, and the bearers from the Pakistan side carrying Afghan dried fruit the other way. The goods were then swapped over from one head to the other. That was an absurd and interesting experience, but is there a real potential for a trade in Afghan products between Afghanistan and Pakistan and between Afghanistan and India other than that border crossing, or is that the main trade route?

  Michael Griffin: At the moment, India has a preferential trade agreement for any Afghan produce that comes into India, although not very much goes there. Obviously, fruit, dried raisins and some spices could go there, but to a large extent the markets of Afghan producers have pretty much been wiped out since the Soviet invasion and replaced by much cheaper producers such as California.

  I think that Afghanistan's legitimate exports apart from opium are in the region of $100 million a year, so we are talking about a pittance. Plus, Afghanistan's trade is jealously guarded by Pakistan, which manipulates the transit trade agreement so that goods delivered in Karachi travel north into Afghanistan via Pakistan, which then controls the access of imports and exports across that border. India is attempting to loosen that control by building an alternative route through an Iranian port known as Chabahar and a new road from that port to Nimroz in south-west Afghanistan, which will provide an alternative source and also satisfies both of those countries' primary interest in Afghanistan as a stepping stone towards Central Asia and its oil and gas.

  Chairman: Let us turn to Bangladesh.

  Q197  Mr Horam: There has been huge political turmoil in Bangladesh with the elections and so on. Has this had any wider impact in the South Asian region or is it still mainly a Bangladeshi issue?

  Gareth Price: For now it is primarily a Bangladeshi issue. India has concerns that it could spill over. In the past, refugees from Bangladesh have been a continuous issue, but the threat of a wider influx of refugees is the main concern on India's side. There is also the opportunity cost. The complete lack of empathy between the two main parties, and in particular the leaders of the two main parties in Bangladesh, in large part relating to the relationship with India is a big factor that holds back Bangladesh and the export of its gas. It particularly affects north-east India, which is cut off apart from a small chicken neck, so it cannot trade with other parts of India so well. But the short answer is that for now the impact is confined to Bangladesh. India certainly has concerns about what could happen if democracy is not able to entrench itself within Bangladesh, which to most observers seems likely while the current two leaders, Khaleda Zia and Sheikh Hasina, remain in power.

  Q198  Mr Horam: Sorry to interrupt, but do independent observers think that democracy is likely to be entrenched and that it will resolve these problems?

  Gareth Price: Bangladesh has democracy in the sense that it has elections, but in terms of accepting the results of elections, each party that has lost has taken to protesting in the streets from the mid-1990s onwards. It has democracy in terms of people voting, but in terms of the wider issue of rights and so forth democracy has a long way to go to be entrenched in Bangladesh.

  Q199  Mr Horam: So you are not hopeful that there will be an easy or quick resolution of the problems?

  Gareth Price: It might be a while before we see an election. Many issues are being discussed in Bangladesh at the moment. One report was talking about the Pakistani model, which would be to put the two leaders into exile. I do not know how developed that thinking is.

  The big issue is to wait for the next generation—that is not my personal view. Bangladesh will muddle along while the two leaders loathe each other. It is also a question of a first-past-the-post electoral system where generally the Awami League gains a couple of percentage points more than the Bangladeshi National party, and the BNP in alliance with Jamaat-e-Islami gets a couple of percentage points more. Whoever wins the most seats then obtains an additional 30 women's seats, so we end up with a country that is divided 47% on one side and 43% on the other side, yet the side that has 47% has a massive majority for five years.

  If the situation is to change, another point is that Bangladesh's economy has done well lately despite the politics, but is now coming to a position where the political situation is starting to impact on Bangladesh. A small example is the power projects that take more than five years. The parties alternate each time there is an election, so as soon as the new Government come in, they scrap previous power projects because it is assumed that they must have been corrupt, so they start their own ones. Now it is getting to the point where power shortages are becoming more and more of an issue. That is a direct way in which the political situation is starting to impact on the economy. That is why there are calls for a third force, or some restructuring of power—that will be the main pressure.


 
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