Epilogue Nov2009

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b e c a u s e t h e r e i s m o r e t o k n o w

Jammu and Kashmirs Monthly Magazine NowTellingThe J&K Storie

RNI : JKENG/2007/26070 ISSN 0974-56

Jammu, November 1, 2009 / Vol 3 / Issue 11 || Price Rs. 30 || Postal Registration No. JK-350/2009-11 || www.epilogu

RESEARCH :INTERVIEW : NYLA ALI KHAN

Socio-Cultural and Economic

Changes Among Muslim Rajputs

Author of Islam Women &

Violence in Kashmir

BRIDGING

DividesVia Talks & Trade

Special on First Anniversary of

Cross-LoC Trade

An Analysis of Joint Chamber--------------

New Delhi's Fresh Peace Initiatives---------------

Perspectives on Harnessing Indus Waters


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HOME-N-HOME

ZARCHITECTS

ZINTERIORS

ZDESIGNERS

RAKESH KUMAR GUPTAB.Arch, MCA

[email protected]

Office : Hall No. 4, Auqaf Complex, Gandhi Nagar, Jammu - 04

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B R I D G I N G T H E I N F O R M A T I O N D I V I D E

F O R T H E M O N T H O F N O V E M B E R 2 0 0 9

Taking J&K Closer to WorldBringing World Closer to J&K

Epilogueb e c a u s e t h e r e i s m o r e t o k n o w35

Volume : 3, Number : 11

ISSN : 0974-5653

RNI : JKENG/2007/26070

www.epilogue.in

The present issue coincides with two most

ndimportant events in Jammu and Kashmir: 62

anniversary of state's accession to the Union of

India and first anniversary of Cross-LoC trade.

Subjects touched upon are of timeline

significance. An interview with Nyla Ali Khan

unveils the mind of the author of a fresh and

authentic study on Kashmir.

Vol. 3, Issue 11www.epilogue.in Epilogue, November 2009


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May 2009

June 2009

July 2009

August 2009

September 2009

October 2009

J&K MOVING FORWARD

ay issue was one of the rare collections of ideas where 12 natives from

Mboth sides of Jammu and Kashmir poured their ideas out of the heart on

how boundaries can be blurred and relations can be strengthened.

LOK SABHA POLLS 2009

ith Prof Rekha Chowdhary looking into various aspects, the May issueWoffered a complete view of the Lok Sabha elections in Jammu andKashmir. An interview with Finance Minister Abdul Rahim Rather explainedmost critical questions on the state's economy

THE FUTURE OF JAMMU AND KASHMIR

uly 2009 issue offered a rare insight into the whole gamut of KashmirJissue. An ACDIS, University of Illinois at Urbana Champaign sponsoredstudy, which was the cover feature, examined Kashmir issue from differentperspectives.

UNFOLDING THE LAND OF MOON

ugust 2009 issue was one of the path-breaking in the life of EpilogueAmagazine. The cover story explored many aspects of life in Ladakh andcarried a first hand of research on the state of media in the Himalayan colddesert.

UNDERSTANDING J&K ECONOMY

lost has been written and debated on politics of Jammu and Kashmir butAnothing much on the economy. Reading into J&K's annual budget thatwas presented in August, Epilogue's September issue focused ondevelopmental and economic profile of Jammu and Kashmir.

JAMMU AS IT ISammu, along with Ladakh, has often complained of neglect within theJstate of Jammu and Kashmir. October 2009 issue focused on regional

identity of Jammu. This issue was in follow-up to similar special issue onLadakh in August.


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Epilogueb e c a u s e t h e r e i s m o r e t o k n o w

www.epilogue.in

EditorZafar Iqbal Choudhary

PublisherYogesh Pandoh

Consulting EditorD. Suba Chandran

Associate EditorsIrm Amin Baig

Tsewang Rigzin

General ManagerKartavya Pandoh

ManagerAdarsh Rattan Bali(Marketing & Advertisement)

Art EditorKeshav Sharma

Research OfficerRaman Sharma

Phones & emailOffice : +91 191 2493136subscriptions : +91 99060 27136Editorial: +91 94191 80762Administration: +91 94191 [email protected]@epilogue.in

Printed and Published byYogesh Pandoh for Epilogue

NewsCraft from Ibadat House,Madrasa Lane, Near Graveyard,Bathindi Top, Jammu, J&K - 180012and Printed at : DEE DEE

Reprographix, 3 Aikta Ashram, NewRehari Jammu (J&K)

Disputes, if any, subject to jurisdictionof courts and competitive tribunals inJammu only.

RNI : JKENJ/2007/26070ISN : 00974-5653Price : Rs 30

CONTENTS

Contributors to this Issue 4

Essential Entries 10

Prologue 13

Letters 14

Books/Authors

Nyla Ali Khan

Challenging Hegemony of 38

Static Versions of History

Research

Socio-Cultural and Economic 44

changes among Muslim Rajputs:

A case study of Rajouri District

in J&KDr. M. Mazammil Hussain Malik

Features

A Journey to Himalayan Enclave 54Manisha Shobarjani

Spreading the Lamp of 55Learning - the Ladakhi WayZainab Akhter

A Trek Through Life 57Thinlas Chorol

J&K In Numbers

Power Sectors 59

IN FOCUSBridging Divides

A Window of Opportunity9B.G. Verghese

PM in Kashmir10An Olive Branch from

Position of StrengthEpilogue Report

Promoting Cross-LoC Trade14An Analysis of the Joint ChamberMoeed Yusuf

Harnessing the Indus :30From Treaty to Governance

Perspectives from IndiaD Suba Chandran

Harnessing the Indus34Perspectives from Pakistan

Nausheen Wasi

Volume 3, Issue 11, November 2009

3


Bridging

Divides


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CONTRIBUTORS TO THIS ISSUE

Chandran, D Suba (In Focus, P..), is Varghese, BG (Perspective, P..), one

Deputy Director at Institute of Peace of the most respected journalists,

and Conflict Studies, New Delhi and a authors in India, has remained an

Consulting Editor with Epilogue Editor of the Indian Express and

Hindustan Times. He was also AdvisorChorol, Thinlas (Features, P..), is a to the Prime Minister Indira GandhiFellow with Charkha Communication

and Development Network working on Wasi, Nausheen (In Focus, P..), is

Ladakh Lecturer at the University of Karachi

Khan, Nyla Ali (Books & Authors, P..), Yusuf, Moeed (In Focus, P..) is a

is Associate Professor of English at the Fellow at the Frederick S Pardee

University of Nebraska-Kearney in Center at Boston University, a

United States. She is first Kashmiri Research Fellow at the Mossavar

woman scholar to have written a Rehmani Center at Harvard's Kennedy

highly researched book on Kashmir School of Government and a Researchconflict Fellow at Strategic and Economic

Policy Research in Pakistan. He hasMalik, Dr M Muzammal Hussain been involved in track II meetings on(Research, P..), a research scholar, is Kashmir supported by United Statespresently Associate Professor of Institute of PeaceSociology at Government Degree

College Ramnagar in Udhampur Zainab Akhter (Features, P..), is a

district of J&K Fellow with Charkha Communication

and Development Network working onSobhrajani, Manisha (Features, P..), is Ladakha Delhi based independent researcher

working on the various aspects of

Kashmir conflict. She divides her time

between Delhi and Jammu and

Kashmir

Readers' requests for getting in touch with the

authors, for feedback, comments and further

discussions on their subjects of interest, are

welcome. Since all authors/contributors are not

interested in taking mails directly, the readers are

requested to send us interview requests at

[email protected] for passing on to the authors

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Nation is committed to provide latest weaponry andother sophisticated gadgets to the troops for

maintaining sanctity of borders in J&K

President of India, Pratibha Patil during his visit to Rajourion Oct 9

There is a political problem in Kashmir and it has tobe solved through dialoguethere will be dialoguewith every section of opinion on Kashmirthere willbe a quiet diplomacy

Indian Home Minister P Chidambram, at a PressConference in Srinagar on Oct 14

It is a good and welcome sign. Hurriyat Conference iscommitted to dialogue with both India and Pakistanto resolve Kashmir issue

Hurriyat leader Mirwaiz Umar Farooq, reacting to HomeMinister's offer for talks

Our tourism potential is biggest economic advantage.West is already enjoying Kashmir, now we need toadopt Look East policy to tap tourist from Taiwan,Hong Kong, Thailand, Malaysia, Singapore etc

Chief Minister Omar Abdullah while inaugurating Kashmirfestival on Oct 10

'The acts of terrorists across the globe underscore thatterrorism is a global threat which transcends bordersand religions and is not linked to any specific sect orreligion or creed

Union Health Minister and Former J&K CM at Conferenceon 'Terrorism --National and International' organised by

Jama Masjid United Forum in New Delhi on Oct 27

CITON E B O A R D

Essential Entries

APPOINTED: WajahatHabibullah is appointedas State Chief

InformationCommissioner of J&K onOct 22. Until then CIC of

India, as an IAS officer he earlierserved J&K for nearly three decades

ELECTED: Raja FarooqHaider Khan is electedon Oct 22 as PrimeMinister of Pakistanadministered Kashmirreplacing Sardar Yaqoob

Khan.

HONOURED: Maharaja

Gulab Singh, thefounder of J&K, ishonoured with acommemorative stamp

thon his 217 birthanniversary. Stamp is released inJammu by MoS C&IT Sachin Pilot onOct 21.

AWARDED: Notedjournalist, author andhuman rights activistBalraj Puri is nominatedfor Indira Gandhi Award

for National Integrationfor year 2008. Puri also runs Instituteof J&K Affairs at Jammu and is aleading public figure of the country

RELEASED: Separatistleader Shabir AhmedShah is released fromprison on Oct 20 after14 months detention. Hewas arrested in August

2008 while leading the symbolic marchto Muzaffarabad during Amarnath landrow

ARRESTED: A journalistand Editor of a Jammubased News Agencycalled NAK is arrestedby Police on allegationsof passing on security

information of Pak intelligence agencyISI. He is booked under varioussections of Enemy Act and IT Act

ON RECORDON REGISTER

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L

From the Editor

RP O O G U E

Every year, towards the end of October, opinion 'accession was subject to

Jammu and Kashmir is found engaged in ratification', 'accession was full and

serious debates, discussions and final'. The same story has been

introspections. Two prominent regions repeating year after year for last 62

of the state, Jammu and Kashmir years. The tragedy of Jammu and

Valley, are seen divided in opinions as Kashmir can be located in most of thesepeople attend symposia and seminars; articles which are repetition of almost

they participate in celebrations at exactly the same what these writers

some places and protests at others. had written and published 15 years

Elsewhere, in parts of India, in Pakistan back or 20 years back. Any discussion or

and in many parts of world, Jammu and writing going beyond these two well

Kashmir is at the center of discussions. formed opinions is seen with contempt.

They discuss the past to take cues for It can be called unpatriotic in some

future. It was in this year in 1947 that parts of state or disrespect to hundreds

this state acceded to the Union of India. and thousands of martyrs in other

Many discussions revolve around parts. It is now the third generation

accession was it final or conditional. engaged in these discussions. Nothing

And then comes the day of October 27 has changed much. At Epilogue, we

the anniversary of landing of Indian have strongly been of the opinion thatbecome a Rs 50 Million weekly trade.Army in Kashmir. The Valley shuts down all stakeholders will have to lookThis reflects that peoples on both sidesto reiterate that there is a problem beyond the status quo to moveof the LoC are eager to shun the pastawaiting resolution. In Jammu, forward in Jammu and Kashmir. Someand step into future arms-in-arms butcrackers are burst and sweets are will have to do a little climbing downthey want the barriers to be removed.distributed to mark the event as a the ladder, others can take few stepsIn context of J&K, Prime Minister ofhistorical victory. In rest of India, the upward to tell the world that KashmirIndia Dr Manmohan Singh have oftenday is celebrated as victory of Indian is no more any troubled region of thereiterated that redrawing ofsecularism and defeat of two-nation world awaiting intervention of worldboundaries is out of question buttheory floated by Pakistan's founder powers. There are two successfulmaking them irrelevant is the wayMohammad Ali Jinnah. In Pakistan this examples: militancy, of course, hasforward. Translation of these wordsday is reminds the nation that one not ended but a ceasefire on bordersinto action can certainly change theimportant agenda still remains has been largely successful sincediscourse Jammu and Kashmir isunfinished. Seen from different places, November 2003. This reflects a will forengaged in for 62 years. How manythere are different perspectives. For restraint. Following initiation ofmore Octobers we need to turn ourhalf of the October, every year, editors Cross-LoC travel between parts of thebacks to the past and face the future?of newspapers in Jammu and Kashmir state in 2005, the trade was launched

don't have to pursue with the writers in October 2008. Without even the

for the op-ed page columns. There is a basic facilities of banking and Feedback :flood of articles with two sets of communications, it has now almost [email protected]

J&K and October Jinx

Zafar Choudhary

OCTOBER 2007

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T

Readers Write

L E T E R S

Rekha Choudhary's argument in Jammu region there is a

political discourse that revolves around the issues

related to regional deprivation and neglect. Kashmir in

this discourse forms the center of power within the

state and is perceived to be dominating not only the

power structure of state but also controlling the

economic and material issues is an objective assessment

of the regional problem (The Politics of Regional Identity,

Epilogue, Oct 2009). The feeling in Jammu that Kashmir

behaves as a big brother is lingering on for six decades

but the regional leadership (if there is any) needs to

share its responsibility. What defeats the cause of Jammu

is the fact that every agitation in the region launched for

the balance of power is based on communal premises.

SHEIKH NISAR AHMEDKishtwar

Had Viveyata Sharma been wrong in her opinion (The

Limits of Duggar Desh) on mass leadership in Jammu,

there would have been any complaints in the region.

Where is the political leadership in the region? The BJP

has a clear communal agenda and therefore can never

enjoy trust of entire region. The Congress always

negotiates power in its interest with whosoever calls shot

in Srinagar yesterday it was PDP, today National

Conference, tomorrow it may be Hurriyat Conference. We

are reminded of 2002 assembly election campaign when

the grand old national party of Nehru and Gandhi

compromised with its political ideology to make regional

empowerment of Jammu as a poll plank and later

succumbed to the pressure of PDP. Its leader Ghulam Nabi

Azad referred to mainstreaming of Assam and compared

Mufti Mohammad Sayeed with Lal Denga to justify

Congress decision of offering power to PDP. Leaders in

Jammu region have been the representatives of their ownassembly constituencies or at the most individual

districts. The one from Bhaderwah does not know about

aspirations of Kathua and vice versa. They have failed us.

ARUN JAMWALUniversity of Jammu, Jammu

Communalism, Jammu'sown enemy

Happy to note that Prof Hari Om stuck to just statistics

(Jammu Region, the Story of Neglect, Epilogue, Oct 2009) and

did not go much into the politics of regional bias on which he

has written millions of words in past couple of decades. The

problem, however, is that every issue can't be addressed be

figures alone. Even as Hari Om makes out strong arguments

on discrimination against Jammu with his figures, he has

always chosen to use only one set of statistics which serveshis standpoint. He would never talked about industries in

Jammu, the upcoming of mega skyscrapers and most

importantly the difference in total annual development

expenditure in Jammu and Kashmir Valley.

Mushtaq AhmedGanderbal, Kashmir

OCTOBER 2009

Selective use of statistics

Leadership vacuum

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Readers Write

L E T T E R S

Union Home Minister P

Chidrabram's policy statement,recently in Srinagar, on New

Delhi's intentions to get engaged

with different shades of opinion in

Jammu and Kashmir in a 'quiet

diplomacy' to find out solution of

Kashmir issues has been widely

welcomed barring few exceptions

from BJP and the likeminded

parties. Chidrambram's opinion

that Kashmir is a political problem

and needs to be resolved through

dialogue, though criticized by BJP

and likeminded parties, is again awelcome statement. It is this part

of his statement (political

problem) which has inspired the

separatists to join the dialogue as

Government of India has always

refused to recognize Kashmir as a political problem. However, what

confuses in Chidambram's statement is the proposed craft of holding

dialogue in complete secrecy and revealing its contours only when the

results are known. This is not fair. Is there is a problem that is about the

people of Jammu and Kashmir and those people who do not fairly represent

the people have no right to get engaged into a secret dialogue which

peoples don't know about. What happens when Mirwaiz Farooq of Hurriyat

Conference (or for that matter any other leader) arrives at an agreementwith the Government of India but the peoples refuse to accept that. Will

they (New Delhi) discard the previous decision and initiate a fresh exercise?

Any formula discussed about the future of Kashmir should be first put to the

public debate for getting feedback. Secret parleys can help the

Government of India bring few separatist leaders into mainstream and not

resolve the issue.

MIR IRFANSrinagar

Dangers of quiet diplomacy

The effort to discuss Jammu (Jammu As

It Is, Epilogue, Oct 2009) is appreciatedbut much more could have been done.

There are set of perceptions which

discuss certain problems of development

and politics but the broad contours of

Jammu region, diversity and clash of

identities still goes unexplained. For

example, problems and aspirations in

Chenab Valley region districts of Doda,

Kishtwar and Ramban have not been

discussed properly. These regions have

found just passing references. Editor

may consider doing a follow-up on

Jammu.

SUNAINA KOTWALBhaderwah

Besides insights into issues of topicalimportance, we always look forward toread about important developments ofthe month in Jammu and Kashmir. Sincethere are no other media outlets in thisstate informing us about Jammu and

Kashmir, Epilogue's section on essentialstories would bring us a dossier ofmonthly developments which kept usinformed about state's strides ondevelopment and politics. It wasdisappointing to see news sectionmissing in October issue.

VIJAYAN MKKottayam, Kerala

Needed a follow-up

Where is news?

Anmol Sharma's article (Discrimination Symptoms in our DNA) is an inspiration for the youth. It calls forbreaking far from the narrow and divisive discourse of the so called leaders of regional empowermentand charting our own course with an intellectual capital. His article, as bitter as always, bring home afact that how every Kashmiri contributes to the making of Kashmir and how every in Jammu isresponsible for the poor plight of the region. His understanding, Kashmiri has now started exertinghimself as more academicallybut on the other hand we (in Jammu) have no taste for reading goodbooks which espouse wisdom, world-craft etc, is an honest statement on the state of affairs in Jammu.

NITIN KAPOOR, Jammu

Honest statement

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The first and more important part of a J&K already discussed in recent years? Cross-bordersettlement is an internal resolution on matters relations in turn will unfold and evolve over time.

of human rights, disappearances, displacement, One urgent new issue is climate change that

autonomy, livelihoods and development will hit J&K and the entire Indus basin. This will

generally. This must include bridging regional respect no boundaries and offers both a

divides. Pakistan can have no role in this and challenge and an opportunity. The Indus Treaty

must, rather, put right its own house in order in has worked fairly well. Both sides now need to

that part of J&K under its control which lacks the avail of Article 7 of the Treaty on Future

autonomy and freedom enjoyed on this side. Cooperation to move towards joint investigation,

The other part pertains to an external development and management of the three

settlement with Pakistan which can now Western rivers allocated to Pakistan (in which

realistically only be along the LOC on the basis of the Indian part of J&K has a modest share) but

making boundaries irrelevant (with no whose upper basins are controlled by India. This

derogation to sovereignty on either side) as alone will permit the optimal development and

basically agreed in principle. This means halting utilization of the full potential of the Indus basin

the trans-border infiltration and mindless for the mutual benefit not only of all the people

violence that Pakistan has wantonly indulged in, of J&K but also of India and Pakistan.

extending jihadi terrorism far afield to other Together with this, the Siachen issue can

parts of India, of which 26 /11 was a horrendous easily be settled by acknowledging the specific

example. There are no true non-state actors as and unambiguous 1949 Karachi Agreement

the jihadi organizations and Taliban have all delineation of the LOC beyond the last

been trained and sponsored by Pakistan and demarcated point at grid reference NJ 9842 and

cannot masquerade under new names. To say thence north to the glaciers, without leaving

that Pakistan is itself a victim of terrorism means any part as no-man's land as stipulated. Once

little as it is the monster Pakistan has long bred, this is done, the triangular area from NJ 9842

and even now patronises in part, that has turned running NE to the Karakoram Pass and NW to K2on it. could be declared a Peace Zone and a scientific

No one either in J&K or Pakistan can plead park for joint Indo-Pakistan glaciological,

for more time to formulate their views. Nor can hydrological and meteorological studies, with

it be argued that Kashmiris must meet to international collaboration, in order to monitor

decide on a common position before the internal and respond to climate change on the basis of

dialogue commences. What will they discuss real time data.

that they could not discuss earlier or have This is the way forward.

B.G. VERGHESE

A Window of Opportunity

There is a window of opportunity opening in J&K that must not be missed once again. This follows the

Union Home Minister's statement that the Government intends to open and persevere with quiet talks with

all sections of J&K opinion, including those outside the mainstream like the Hurriyat and . None can claim a

veto or set conditionalities. Spoilers will be exposed.

EXCLUSIVE TO

Epilogue


I N F O C U S

Bridging Divides9


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sections of opinion, including the Srinagar on October 14 allayed thosendependence Day addresses ofseparatists. While his unexpected fears. Much to the pleasure ofIndian Prime Ministers are heard withI statement made the separatists to separatists he said the dialogue will berapt attention in Kashmir. It was theaccuse him of speaking in the language on one-to-one and two-to-two basis andhistoric speech of Prime Minister Atalof power, the Chief Minister Omar its results shall be known only afterBehari Vajpayee on August 15, 2002 thatAbdullah too was seen in a spot as on the some conclusions are arrived at. Even ifthat turned around the politicalsame day he had called for a dialogue the talks fail, such exercise gives facelandscape in Kashmir. Vajpyeewith separatists. PDP leader and former saving to the parties engaged in therecognized space of all shades ofChief Minister Mufti Mohammad Sayeed, process.political opinions and promised free anda strong votary of dialogue, was blunt As Prime Minister unveiled his mindfair elections. He lived up to theenough in disputing Prime Minister's during his two-day visit to Kashmir, itexpectations. The following months ofinterpretation of the massive public appeared that Chidambram's visit, a2002 saw most credible elections in theparticipation in elections. fortnight back, was ground preparationhistory of Jammu and Kashmir and then

Observers believe that Prime exercise. Had Chidrambram notbegan rounds of dialogue withMinister's statement was not quite out unveiled the dialogue blueprint inseparatists. Prime Minister Manmohanof place as he sought to underline the Srinagar, Prime Minister's would haveSingh too carried forward legacy ofsignificance of electoral democracy and landed in a Valley of mistrust andVajpayee and always addressed keyhonour the people who participated in confusion as it was since August 15.issues from the ramparts of the Red Fortelections against all the risks involved. Responding to Chidambram's offer ofexcept for this year's Independence DayHowever, for separatists the Prime dialogue, the separatists, particularlyaddress which left the Kashmiris,Minister's statement marked the end of the Hurriyat Conference headed byparticularly the separatists stunned.the road to dialogue before Home Mirwaiz Umar Farooq had set someThe Prime Minister said that successfulMinister P Chidambram rekindled hopes conditions downsizing of troops fromtwo rounds of elections in Jammu andin the middle of October. Chidambram's the civilian areas, release of politicalKashmir Assembly polls in late 2008 and

announcement of quiet diplomacy detenues and recognition of KashmirLok Sabha polls in early 2009 withopened a new chapter in the peace issue as a political problem. Half of itvigorous public participation is a proofprocess which earned an across the was done by Chidambram during histhat there is no space for separatistboard welcome in Kashmir. Separatists October 14 Press Conference when hethought in the state. It was quitehave always been averse to the large said there is a political problem insignificantly different from Dr Singh'sassemblies of dialogue (like the Kashmir and it has to be solved throughspeeches in the last over five years as heroundtable conference which they dialogue. Perhaps first such statementhad repeatedly stated that his UPAboycotted); Chidambram's statement in from any Indian leader in severalgovernment believed in talking to all

PM IN KASHMIR

An Olive Branch fromPosition of Strength


After months of mistrust and confusion, Prime Minister Manmohan Singh has again warmed up the

atmosphere for peace politics in Kashmir. Along with Congress President Sonia Gandhi, his two-day visit to

the Valley has certainly put into motion a process to shorten distance between New Delhi and Srinagar. The

ball is now seen to have rolled down in the court of separatists.

Bridging Divides

EPILOGUE REPORT

I N F O C U S1 0


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decades. In the time between

Chidambram's departure from Srinagar

and Prime Minister's arrival on October

28, two formations of Indian Army had

been pulled out of Kashmir Valley, a

prominent separatist leader Shabir

Ahmed Shah was out of the jail after 14

months and the unrelenting hardliner

Syed Ali Shah Geelani was seen roaming

about freely, first time since March this

year. Then comes the Prime Minister's

visit who invites all for the dialogue who

have some meaningful ideas. His olive

branch extends to separatists as it also

goes to Islamabad. I call upon the

people and government of Pakistan toshow their sincerity and good faith. As I

have said many times before, we will

not be found wanting in our response.

Exhibiting the sincerity to initiate

dialogue on Kashmir at both levels with

separatists and also with Pakistan, the

Prime Minister appeared quite

concerned about the question of

governance in Jammu and Kashmir. He

made a specific mention of local

governance and the development

process. I would urge that time has

come for elections to local bodies beheld quickly. This will increase the

people's participation in the process of

development, said the Prime Minister

in his speech on inauguration of

Anantnag-Qazigund rail link. Refusal to

empower the peoples at grassroots has

of late become a hallmark of flawed

governance in Jammu and Kashmir. Last

Panchayat elections were held in the

state in 2000, after a staggering gap of

more than two decades but Panchayats

were never constituted or empowered.

Next elections were due in 2005 but

never held. It was widely believed that

denial of democracy at the grassroots is

also a potential alienator. Chief Minister

Omar Abdullah recently said that

Panchayat elections will be held in next

few months.

am delighted to back in the valley of The last time I came to Jammu andIKashmir in the lovely season of Kashmir, the State assembly electionsautumn. We will soon see the beautiful were going to be held. Later, the Lok

golden hues of the season and the Sabha elections were also held. I am

magnificent Chinar will soon be flaming happy that the people of Jammu and

red. Kashmir turned out to vote in these

elections in large numbers. I believeI have come today to inaugurate

that it was a vote for a peaceful path tothe Qazigund-Anantnag rail link. I

a better tomorrow. I applaud thecongratulate the Indian Railways and

wisdom and good faith of the commonthe people of Kashmir for this

man of Kashmir. The electedachievement. The day is not far when

government has a golden opportunity totrains will run from Jammu to Srinagar

consolidate the peace in the State.through the Banihal Pass.


Willing to Talk to Anyone

who has any Meaningful Ideas

Text of Prime Minister Singhs speech at the inauguration ofthe historic Anantnag-Qazigund rail line in the Kashmir

thValley October, 28 :

Bridging Divides

I N F O C U S1 1


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In the last five years, the govern- Programme, The Ministry Tourism will about reports of receding glaciers.

ment of India has taken a number of train 300 youths of the state. In addi- I am happy to announce the launch

steps to bring development to Jammu tion, 200 youths will be trained and of the National Mission on Sustaining the

and Kashmir. We have tried to revive the deployed as tourist escorts during the Himalayan Eco-System. We wish to pre-

traditional connectivity between the Amarnath and Viashno Devi Yatras. The serve the sacred heritage of places like

people of the region. We took the bold ministry of Labour will train 8000 youths the Amarnath Shrine.

step of reviving the movement of goods in it is every year. The era of violence and terrorismand people across the Line of Control on As part of the national programme is coming to an end. The public senti-the Srinagar-Muzaffarabad road on the the Ministry of Youth Affairs will deploy ment is for peace and for a peaceful res-Poonch Rawalakot road. I am happy to around 8,000 youth in Jammu and olution of all problems.announce that the Central Government Kashmir on voluntary basis. They will When I came to office in 2004, Ihas decided to fund the additional cost engage in public service such as clean- had said that our Government is com-of Rs. 385 crore to build the heritage ing of the Dal Lake. mitted to having unconditional dialogueMughal Road that will connect Shopian I believe that the It Sector of J&K with whoever abjures violence.with remote areas of Poonch and can be as developed of the country. We We had discussions with different

Rajouri. will fully support the efforts of the State groups. We had a number of round tableUnprecedented resources have in this area. I am happy that more than conferences. All issues were discussed.

been committed to the state for its com- 600 youth of the State trained under a WE tried to give voice to the demands ofprehensive reconstruction. But I recog- Central Government project have been all sections of the people. We havenize that the benefits are tricking down employed in the IT sector recently. implemented a number of initiatives asslowly. This state of affairs should I am happy to announce that the a result of this process.change. We have to spend up the pace Government of India has decided to set I wish to say again today that weof development in the state. We have up two Central Universities in J&K, one are willing to talk to anyone who has anyreverse the brain drain that has in Jammu and one in Kashmir. meaningful ideas for promoting peacedenuded state of many of its teachers, The majesty and splendour of this and development in Kashmir.doctors, engineers and intellectuals. beautiful valley and culture of hospital- We want to carry all sections of theWe have to create the conditions for ity of the Kashmiri people are second to people with us in resolving the politicalthem to return and to be the instru- none. It magnificent lakes and forests and economic problems of Jammu and

ments of change and development. We have charmed travelers for centuries. It Kashmir.want to strengthen in the hands of the offers the solemnity of the Budghist I had also said that I was ready toState government so that they can monasteries of Ladakh, the treasures of discuss all issues with Pakistan. I did soimplement an ambitious development the Hazratbal shrine and the piety of not because of weakness but from a posi-agenda. the Raghnuath Temple. Let us build tion of strength. We had the most fruit-

I would also urge that the time has Kashmir into one of the world's top tour- ful and productive discussions ever withcome for elections to local bodies be ist destinations. the Government of Pakistan during theheld quickly. This will increase the peo- The picturesque Dal Lake is the period 2004-07 when militancy and vio-ple's participation in the processes of icon of the tourism have been funding a lence began to decline. Intensive dis-development. project for the conservation of the lake cussions were held on all issues includ-

I appeal to the youth of Kashmir to but progress has been slow. I would urge ing on a permanent resolution of thejoin in building a new Kashmir. I under- the state Government to set up a task issue of Jammu and Kashmir.stand their frustration. But things are force to expedite the project. The

For the first time in 60 years, peo-changing. I huge them to think con- Centre has decided to commit addi- ple were able to travel by road acrossstructively about how to build their tional funds of Rs. 356 crore for this pro- LoC. Divided families were re-united atfutures. ject. We will also discuss with the State the border. Trade between the two sides

The Central Government will make of Kashmir began. In fact, our overallGovernment how to expedite on goingtrade with Pakistan increased threeall efforts to involve the youth of the projects for the conservation of Wullartimes during 2004-07. The number ofState in constructive work. Under the Lake and Manser Lake.visas that we issued to Pakistanis dou-'Skill Development to Employment' The Government is concerned


Bridging Divides

I N F O C U S1 2


15/64

bled during the same period. An addi- ers and travelers. For a productive dia- cal conclusion. They should destroy

tional rail link was established. logue it is essential that terrorism must these groups wherever they are operat-

be brought under control. ing and for whatever misguided pur-These are not small achievementspose.given the history of our troubled rela- We will press the government of

tionship with Pakistan. In side the val- Pakistan to curb the activities of those I call upon the people and govern-

ley, as militancy decline, trade, busi- elements that are engaging in terrorism ment of Pakistan to show their sincerity

ness and tourism began to pick up. We in India. If they are non-state actors, it and good faith. As I have said many

were moving in the right direction. For is the solemn duty of the government of times before, we will not be found want-

the first time there was a feeling among Pakistan to bring them to book, to ing in our response. In the words of the

the people that a durable and final destroy their camps and to eliminate poet :

peace was around the corner. their infrastructure. The perpetrators 'There are moments in history

However, all the progress that we when wrong decisions are taken; the

achieved has been repeatedly thwarted effects of which are felt for ages'.

by acts of terrorism. I appeal to the government of

The terrorists want permanent Pakistan that the hand of friendship

enmity to prevail between the two coun- that we have extended should be car-

tries. ried forward. This is in the interest of people of India and Pakistan.The terrorists have misused the

name of peaceful and benevolent reli- In conclusion, I wish to convey my

gion. Their philosophy of hate has no good wishes to the people of Jammu

place here. It is totally contrary to our and Kashmir. I hope that the future will

centuries old tradition of tolerance and bring a new ear of peace, reconcillation

harmony among faiths. and development.'

I strongly believe that the majority

of people in Pakistan seek good neigh-

borly and cooperative relations

between India and Pakistan. They seek

a permanent peace. This is our view as

well.

The Cross-LoC initiatives havebeen well received on both sides of the

border. But I am also aware that they

are not as people friendly as they cold

are. Trade facilities at the border are

inadequate. There are not banking chan- of the acts of terror must pay the heavi-nels. Customs facilities need to be est penalty for their barbaric crimesstrengthen. There are no trade fairs. against humanity.The lists of tradable commodities need It is a misplaced ideas that oneto be increased. Clearances for travel reach a compromise with the ideologytake time. Pioneers of India and of the terrorists or that they can be usedPakistan are languishing in each other's for one's own political purpose.jails even after completing their sen- Eventually they turn against you and

tences. bring only death and destruction. TheThe fact is that these are humani- real face of the terrorists is clear for the

tarian issues whose resolution requires people of Pakistan to see with their ownthe cooperation of Pakistan. We are years.ready to discuss these and other issues I hope that the government ofwith the government of Pakistan. I hope Pakistan will take the ongoing actionsthat a s result things will be made easier against the terrorist groups on their logi-for our traders, divided families prison-


For the first time in 60years, people were able to

travel by road across LoC.Divided families were re-united at the border. Tradebetween the two sides ofKashmir began. In fact, ouroverall trade with Pakistanincreased three times during2004-07. The number ofvisas that we issued toPakistanis doubled during

the same period. Anadditional rail link wasestablished.

Bridging Divides

I N F O C U S1 3

Epilogue

Available atJawahar Book Center

Jawahar Lal Nehru UniversityNEW DELHI

---India Book CenterTHIRUVANTHAPURAM

---CNA Enterprises

DN Road, MUMBAI

---KC Enterprises

Himayat Nagar, HYDERBAD

---

EBS News AgencySector 22-B, CHANDIGARH

---

Bhargave Book CenterUniversity Center,

ALLAHABAD


16/64

ince 2005, Pakistan and India have pursued out-of-the-box thinking on Kashmirand have allowed nominal human interaction and economic exchanges across the

Line of Control (LoC). One of the most promising recent developments has been theformation of the Federation of Jammu and Kashmir Chamber of Commerce and

SIndustry (Joint Chamber), the first formal joint establishment across the Line ofControl, which is poised to play a central role in future efforts at increasing economic

collaboration.

The Joint Chamber is still in its infancy and faces a number of critical challenges that are

indicative of the potential stumbling blocks any effort at enhancing economic collaborationacross the Line of Control is likely to face.

Currently, a consensus is missing on the future direction of the Joint Chamber. Not only are

the central governments in Islamabad and New Delhi skeptical about according this new body

a pivotal position in crossLoC trade, but even the business communities in the Indian andPakistani parts of the state suffer from internal differences on the scope of the Chamber's

activities.

Perhaps most worrisome is the Kashmiri business community's reluctance to lobby

proactively for expansion of ties beyond trade in goods. Investment, joint ventures, and transittrade through Pakistani Kashmir and Pakistan hold the real potential if economicinterdependence is to ameliorate the long-standing political tensions over Kashmir.

The Joint Chamber members need to agree on a clear vision for the Chamber, preferably

including concerns not only relevant to goods trade but also to trade in services, investment,

joint ventures, and transit trade. To cover this broad horizon the Chamber would have toincrease its capacity by involving entities such as trade associations and the civil society at large.

Before tangible gains can be made, the Joint Chamber needs a number of scoping exercises

to determine the true potential for economic collaboration on all fronts. The current dearth ofinformation is a major shortcoming in determining the specific areas that could expand the

hitherto nascent crossLoC interaction.

The Joint Chamber is already engaged in advocating for an increase in the nominal goodstrade initiated across the LoC in October 2008. Protocols for physical travel and communicationbetween traders, marketing and banking facilities, and an expansion of the scope of

engagement are obvious next steps for this process.

The key to the Joint Chamber's success is to strike a delicate balance between nudging thegovernments to open up and remaining pragmatic about the necessarily incremental nature of

the gains.

MOEED YUSUF

I N F O C U S

Bridging Divides

Promoting Cross-LoC Trade

An Analysis of the Joint Chamber

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The India-Pakistan dispute over and Pakistani governments, acknowl- the outlook of the key stakeholders

Kashmir has proved to be one of the edge that these steps are only the regarding its potential, weighs the chal-

most int ractable in the wor ld. beginning of a process of economic col- lenges ahead, and recommends means

Traditionally, these two countries have laboration that could ultimately make to transform the Joint Chamber into a

remained preoccupied with concerns the LoC irrelevant for economic and body capable of playing an instrumental

about territoriality, sovereignty, princi- human exchanges. Most analysts remain role in expanding crossLoC economic

ple of equality, and moral legitimacy convinced that only such expanded collaboration. The report is designed to

when approaching the issue. However, crossLoC interaction can generate the provide both the business communities

their failure to find a breakthrough and kind of interdependence necessary to and policymakers with a clear sense of

the high costs associated with maintain- stabilize the area. While intermittent the steps needed to optimize the role of

ing the status quo have nudged tensions between India and Pakistan the Joint Chamber in enhancing

Islamabad and New Delhi to consider since 2006 have dampened the initial crossLoC interaction. The analysis car-

fresh ideas for resolving the dispute. euphoria regarding crossLoC ties, two ries a broader message: the case study

Perhaps the most promising develop- developments in October 2008 have pro- of the Joint Chamber independent of

ment in recent years has been their vided renewed impetus for normalizing t h e f a t e o f t h e C h a m b e r

amenability to normalizing the state relations across the divided state: itselfhighlights the clash of intereststhrough enhanced economic and human Islamabad and New Delhi initiated among the key stakeholders as well as

interaction between Pakistani and crossLoC trade and business communi- the constraints on them, factors that

Indian Kashmirpreviously no direct ties from Indian and Pakistani Kashmir constitute stumbling blocks for any

contact was permissible between the established a joint body to promote eco- effort to expand crossLoC economic

two parts of the state. The hope is that nomic interactionthe Federation of exchange.

enhanced economic interdependence Jammu and Kashmir Chamber of The Joint Chamber

would act as a catalyst for ameliorating Commerce and Industry (hereafter In September 2008, on the side-the conflict by creating a strong, indige- Joint Chamber). Although still tenuous lines of the U.N. General Assembly ses-nous constituency that can push the two and not yet an effective platform to sion in New York, Pakistani Presidentstates toward peaceful resolution of the facilitate crossLoC business interests, Asif Ali Zardari and Indian Prime Ministerdispute. the chamber is still the first formal joint Manmohan Singh agreed to implement

establishment across the LoC and thusCommendably, Pakistan and India the previously reached understanding

poised to play a central role in anyhave not only proclaimed the goal of to allow trade in primary productsfuture effort to enhance economicenhancing crossLine of Control ties but across the LoC. The Pakistan-India Jointexchange. Moreover, the organization ishave already made tangible progress Working Group on crossLoC confidencethe first non-governmental body oftoward this end. Shortly after the initia- building measures, which had alreadynote; its presence complements thetion of the bilateral peace process in held meetings to negotiate the issue,hitherto exclusively The views2003, a mutually agreed cease-fire was was tasked to finalize trade modalities;expressed in this report do not neces-enforced along the LoC. Since then, bus subsequently, October 21, 2008, was setsarily reflect the views of the Unitedservice was initiated between Srinagar as the initiation date for crossLoCStates Institute of Peace, which doesand Muzaffarabad in 2005 and between trade.not advocate specific policy positions.Poonch and Rawalakot. Fourteen The decision to commence tradeTo request permission to photocopy ormonths later, five LoC crossing points also provided an incentive to the busi-reprint materials, e-mail: permis-were opened for relief assistance in the ness communities on both sides of [email protected] top-down approach toaftermath of the devastating earth- LoC to come together and discuss wayscrossLoC collaboration. In essence, thequake in the region in October 2005, to optimize trade relations. Thus, fromJoint Chamber provides a concreteand an understanding was reached to October 916, 2008, a nineteen-opportunity to push forward the dreamconduct crossLoC trade in selected pri- member delegation from the Azadof an irrelevant LoC.mary products of Kashmiri origin in Jammu Kashmir (AJK) Chamber of

2006. This report examines the Joint Commerce and Industry visited SrinagarChamber in detail. It outlines the basicAlthough critical in their own right, and Jammu to meet their counterparts.features of this new structure, analyzesall stakeholders, including the Indian The deliberations between the


I N F O C U SBridging Divides

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business communities during the AJK posal. The Jammu Chamber was not that the Chamber cannot be officially

Chamber's visit led to the creation of part of these discussions; it was only registered as a joint entity unless

the Joint Chamber. The presidents of brought on board when the AJK delega- Islamabad and New Delhi are on board.

the Chamber of Commerce of Pakistani tion visited them following their visit to While both sides could separately regis-

Kashmir, Indian Kashmir (Valley), and the Valley. ter the new body without approval from

Jammu formally agreed to set up a joint the national governments, doing soThe absence of any prior internal

body to bolster crossLoC economic would render the entity no differentdeliberations by either side regarding a

interests. The Joint Chamber is limited than the individual Chambers thatjoint set-up, however, meant that the

to the three Chambers; other business already exist.Joint Chamber could not move beyond

entities such as traders' associations or mere formal agreement during the dele- Although the three relevant busi-

sector-specific groupings from the gation's visit. As it stands, the organiza- ness communities realize that the deci-

region are not represented in the body. tion exists only on paper: the Chamber sion to set up the Joint Chamber is a

The new structure's board will comprise has not been launched formally, neither beginning, their vision to solidify the

thirty-two individuals, sixteen of whom side has finalized its list of members, no body's presence lacks coherence. That

will be nominated by the AJK Chamber formal charter or mandate exists, no said, the following themes do find wide-

and sixteen jointly by the Indian decision has been made on establishing spread support as potential futureKashmir and Jammu Chambers. The a physical presence, no meeting sched- objectives for the Joint Chamber:

Joint Chamber is headed by a president To increase contact between thewho is appointed on a rotational, two- two business communities through regu-year basis, with the Pakistani and Indian lar meetings; these interactions wouldChambers alternating the title. The allow the members to discuss avenuespresident will act as the executive and for closer cooperation.will be assisted by two senior vice presi- To gain greater exposure to eachdents, one each from the Pakistani and other's markets and peoples.Indian part of the state, and four vice To provide a forum to raise mutualpresidents, two from each side. As a concerns as well as a symbol of progressgoodwill gesture, the Indian side in intra-Kashmir relations.offered the inaugural presidency to Mr. To act as a pressure group to nudge

Zulfiqar Abbassi, the current president state and national governments toof the AJK Chamber, for an initial one- ule has been determined, and financing implement their official vision ofyear term. He is to hold the title until for the body remains uncertain. enhancing crossLoC col laborationOctober 2009, after which the Joint beyond mere symbolism.The Chamber also faces potentialChamber members will select a new legal complications. For example, in To serve as an expert body thatpresident for a full two-year stint; the Pakistani Kashmir, article 8 and 31 (3) deliberates issues related to trade andnext term is likely to be awarded to a (d) of the Constitution prohibit the AJK investment and provides concretenominee from the Indian side of the government from starting any interna- advice regarding trade modalities andLoC. tional joint trade venture on its own; avenues for trade expansion to the gov-

Neither side had envisioned creat- the Government of Pakistan retains com- ernments.ing a joint body prior to their meetings. plete jurisdiction over such matters. To lobby for improved governanceThe Kashmir Chamber in the Valley had Similarly, article 370 of the Indian of cooperation; this amounts to easingonly planned to offer a memorandum of Constitution enables the central gov- restrictions that do not strictly fallunderstanding to the AJK Chamber. ernment to take charge of international within the trade and investmentHowever, the AJK group, encouraged by trade in Jammu and Kashmir when it ambitprimarily security and bureau-the positive mood during the meeting, deems it necessary. In short, the cratic hurdlesbut directly affect busi-suggested taking the arrangement a national governments on both sides ness activity.step further by instituting the joint reserve the right to prevent the state To galvanize other stakeholders ingroup. After some hesitation, the governments from recognizing the Joint the economysmall-scale producers,Kashmir Chamber accepted the pro- Chamber. These stipulations also imply retailers, transporters, marketing out-

The national governmentson both sides reserve theright to prevent the state

governments fromrecognizing the JointChamber.



1 6


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fits, technical experts, academics, and near term; a leading figure from the direction of trade would overwhelm-

civil society at largeto support the ini- Kashmir Chamber in the Valley told the ingly favor Indian Kashmir.

tiative, thereby creating a sense of own- author that the business community The proactive approach taken by

ership and empowerment among a large strongly preferred other, smaller bodies the AJK Chamber in proposing the idea

section of the population on both sides to explore options of similar arrange- of the Joint Chamber then is somewhat

of the LoC. ments with their counterparts inde- puzzling. On the one hand, there is gen-

pendently of the Joint Chamber.Since the Srinagar and Jammu eral agreement across the region's busi-

meetings, the Joint Chamber has The AJK Chamber ness community that economic interac-

remained largely dormant. The body's tion with Indian Jammu and KashmirThe decision to form the Joint

only tangible output thus far has been a should increase. It also appears certainChamber was a bold turnaround for the

set of recommendations, heavily that the AJK Chamber will not reversebusiness community in Pakistani

focused on improving the current itself on the issue of the Joint Chamber'sKashmir. Previously, the business

crossLoC trade regime, which were existence when the ongoing delibera-enclave as well as the state government

passed on to the Pakistani and Indian tions among the region's businessin Muzaffarabad had been reluctant to

governments for consideration. Apart enclave are completed. On the otherpursue trade liberalization. For over

from this, the Chamber's decision to hand, the business community is nottwo years, the AJK Chamber hadform working groups to identify items unanimous on the pace at which theydeferred an invitation from their Indian

that could be added to the current would like crossLoC ties to expand orcounterparts to visit Srinagar and

crossLoC trade list has been held in on the role they envision for the JointJammu to discuss trade related issues,

abeyance. Similarly, a proposed recip- Chamber.it did not extend a reciprocal invitation

rocal visit by the Indian Kashmir and until recently, and its members did not Two competing visions exist in the

Jammu Chambers across the LoC is on attend workshops intended to allow the AJK Chamber. In addition to the philo-

hold. The present lull stems from the two business communities to interact. sophical difference on the utility of

sudden spike in Indian-Pakistani ten- trade expansion, these two visions alsoThe AJK business community's skep-sions in the wake of the terrorist attack reflect the fault line along which powerticism was in large part driven by mar-in Mumbai on November 26, 2008. The politics plays out within the Chamber.ket realities. Pakistani Kashmir has sig-sense of despondence that has pre- The political economy dimension is obvi-nificantly weaker economic prospectsvailed among the business community ous when one examines the makeup ofthan the Indian part of the state; the

on both sides since the Mumbai attack the two groups. Those involved in indus-situation was further skewed towardsuggests that the status quo may remain tries such as textiles and apparel inthe Indian side after the 2005 earth-until political tensions diminish. which their Indian Jammu and Kashmirquake that devastated Pakistani

The Lay of the Land: the Actors and counterparts are more competitiveKashmir's economy. The Pakistani side

their Preferences tend to be circumspect about swift lib-of the LoC is severely underdeveloped:

eralization. On the other hand, individ-The preferences of the key stake- approximately 88 percent of the 4.4 mil-

uals interested in areas such as powerholders, namely, the Chambers on both lion people there depends on agricul-

generation where potential for mutualsides of the LoC, the state governments ture and forestry as their principal

gains is high form the most vocal sup-in Indian and Pakistani Kashmir, and the source of livelihood while the manufac-

port base for enhanced interaction.Pakistani and Indian authorities in turing sector is in poor shape, with many

Islamabad and New Delhi respectively, of the 917 industrial units having been At the core, all AJK Chamber mem-

are paramount to the evolution of the declared sick. Although Indian bers remain mindful of the necessity to

Joint Chamber. Other entities such as Jammu and Kashmir is one of the least cater to local industry interests.

traders' associations, small-scale pro- developed states in India, its agrarian However, those supporting swift move-

ducers, and retailers which are known economy is rapidly industr ial iz- ment toward relatively free trade are

to wholeheartedly support enhanced ingparticularly in Jammuand it upfront in stating their belief that

crossLoC cooperationremain outside already has a multifold advantage in pro- enhanced ties would ultimately benefit

the loop. Moreover, there seems to be ductive capacity over its Pakistani coun- consumers and producers on both sides;

little interest in exploring the possibil- terpart. In short, there is little doubt for Pakistani Kashmir they see the inter-

ity of expanding representation in the that in the near-to-medium term, the action providing impetus to investors



1 7


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from Pakistan-proper to set up manu- discuss the body's future. the Joint Chamber yet are unwilling to

facturing units in the state, thereby complement each other's lobbyingThe anomaly has at its root the

enhancing productive capacity and efforts. Unlike Pakistani Kashmir, how-brewing tensions between the two

employment. This group views the Joint ever, the challenge in Indian Jammu andChambers. The palpable political differ-

Chamber as a stepping stone to fulfill Kashmir is not to convince theences between Jammu and the Kashmir

this ambition. Perhaps not surprisingly, Chambers of the merit of liberalizingValley, which led to a rupture between

the AJK delegation that proposed the crossLoC economic ties. Rather, it is tothe Muslims of the valley and the

joint body had strong representation disaggregate the broader political tus-Jammuites in May 2008, resulted in the

from proponents of this view. sle within the state from the relation-two Chambers being hesitant to estab-

ship between the business communi-While proponents of the opposing lish any serious contact with each other.

ties. Only then can the Valley andview do not challenge the logic of this It was because of this falling-out that

Jammu Chambers arrive at an internalargument, they are much more focused the AJK delegation had to meet sepa-

understanding about the division ofon the short term. This faction calls for rately with the Kashmir and Jammu

labor in their roles within the Jointa more graduated approach whereby Chambers; it ended up conducting the

Chamber and develop a combined nego-Pakistani Kashmir's own potential is bulk of its negotiations in the Valley and

tiating stance for devising strategiestaken into account before putting prom- only later sought concurrence of the with their Pakistani counterparts.ises on the table and is less enthused Jammuites. The internal politicking

Finally, some level of goodwill on theabout the Joint Chamber's abrupt

part of the Jammu and Indian Kashmirannouncement. At least one influential

Chambers is necessary to accept anbusinessman who shares this outlook

equal representation and voice sinceconveyed to the author his bitterness

the AJK group has a significantly lessabout the body's formation, arguing

impressive portfolio.that the possibility of a joint body was

not on the list of talking points commu- The State Governments

nicated to Pakistani Kashmir's business The Joint Chamber can expect a

community prior to the delegation's much more conciliatory attitude from

departure. This more cautious cohort is the state governments on both sides of

likely to push for a thorough internal the LoC. Authorities in Srinagar and

debate on the scope of the Joint Muzaffarabad seem committed toChamber's activities before developing exploring avenues to further liberalize

a unified stance on the issue. crossLoC interaction. The governmentbetween the business entities on theIndian Kashmir (Valley) and Jammu in Pakistani Kashmir that left office inIndian side also explains concernsChambers January 2009 had made crossLoC inter-among segments of the business com-

action a major pillar of its political pro-An interesting dynamic exists munity, especially in the Valley, aboutgram. Arguably, the AJK delegation'sregarding preferences on the Indian including the other Chamber in theoffer to set up a Joint Chamber ratherside of the LoC. Both the Chamber arrangement (some members of the AJKthan just signing a memorandum ofhosted in Srinagar as well as the one in delegation returned with this percep-understanding in Srinagar was a reflec-Jammu remain committed to expansion tion). The Federation of Chamber oftion of their confidence in the state gov-of economic ties. Individually, both enti- Industries in Kashmir (FCIK), a Valley-ernment's support for moves designedties have voiced support for the Joint based group also showed reservationsto expand crossLoC economic ties.Chamber. This makes sense given the

about handing over the founding presi- Indeed, the relationship between thedisproportionate gains in the short- to- dency to the AJK Chamber even thoughoutgoing government and the AJKmedium term for the Indian side. the Jammu Chamber had accepted theChamber's leadership is widely believedHowever, somewhat counterintuitive is arrangement without any apparent res-to have been the most cordial in recentthe absence of any joint efforts by the ervations.history; the latter exercised substantialtwo entities to capitalize on their This situation leads to a conun-clout in political circles, a fact that ledmutual interest. Thus far, the Kashmir drum whereby both Indian Chambersthe already amenable government toand Jammu Chambers have not met to remain committed to the existence of

This situation leads to aconundrum whereby bothIndian Chambers remaincommitted to the existenceof the Joint Chamber yetare unwilling tocomplement each other's

lobbying efforts



1 8


21/64

wholeheartedly back the Chamber's such a measure would cross Pakistan or Indian Kashmir. Both parties also feel

ambitions to play a proactive role in India's redlines. Yet, the fact that the that increased interaction would lead to

crossLoC trade. The business commu- national governments are amenable to heightened intelligence deployment by

nity does not expect the incoming gov- the structure in principle, encouraging the other across the LoC. These con-

ernment to fundamentally change its as it is, does not imply that they would cerns apply not only to trade between

predecessor's stance, although it may quickly buy into its ambitions. Pakistani and Indian Kashmir, but even

have to face renewed lobbying efforts more so to transit trade, investment,This is not to say that either side is

b y p r o p o n e n t s o f b o t h and join ventures through which reloca-likely to attempt to undo the process. In

viewsaccelerated versus gradual lib- tion of personnel across the LoC forfact, the symbolism of the development

eralizationthat exist among the AJK extended periods would be legalized,suits them; it is in line with their official

Chamber members. trade and investment facilitation wouldstance of allowing interdependence

become necessary, and, consequently,The mindset is even more encour- between the two parts of Jammu

the governments' hold on the processaging in Indian Jammu and Kashmir. The Kashmir. Beyond mere symbolism, how-

would inevitably be diluted. Therefore,lopsided near-term gains make it natu- ever, realizing the Joint Chamber's

while a process that crawls along underral for the state government in Srinagar vision is likely to prove extremely chal-

the close watch of the two governmentsto view the prospect of enhanced trade lenging given that both Pakistan and is diplomatically attractive, fast-trackfavorably. The enthusiasm of state offi- India, despite having moved away from

liberalization is not.cials was evident from their outright

support of the idea of the Joint Concerns from Islamabad and New

Chamber during the AJK Chamber's Delhi are not just security related.

visit. Barring any negative directives Within the economic realm, one con-

from New Delhi, the Indian Jammu and cern that both India and Pakistan

Kashmir government is likely to remain havePakistan more so than Indiais

proactive in its efforts to expand the potential for intra-Kashmir trade to

crossLoC interaction. become an excuse for Indian goods to

find their way into the Pakistani mar-The National Governments

ket and vice versa. At the core, theThe national governments inworry stems from a realization of theIslamabad and New Delhi continue to

weak trade governance capacity in thehold the key to the future of intra-two countries: both sides know thatKashmir relations. Notwithstanding theirrespective of the monitoring andultimate ambition of allowing Kashmiri their traditional maximalist stances,policing measures put in place tocivil society to have a larger stake in remain wedded to a security-centriccheck flows beyond the border ofdecision-making, both the Indian and paradigm in their outlook toward theJammu Kashmir, a truly liberalizedPakistani governments remain unchal- dispute. The two countries see eachtrade regime would lead to productslenged in their ability to veto any other through a zero-sum lens wherebyfrom the other's heartland flowing intoKashmiri aspirations. Without their granting unilateral concessions is a signtheirs. Pakistan has already had a bit-agreement, developments like the Joint of weakness. The strongest oppositionter experience with the Afghan TransitChamber are highly unlikely to succeed. on both sides comes from the bureau-Trade facility whereby goods destinedThat said, neither Islamabad nor New craciesthe Foreign Office and the mili-for Afghanistan regularly make theirDelhi has yet signaled its intentions tary in Pakistan and the Ministries ofway back into Pakistan, creating sig-regarding the joint body; neither capi-

External Affairs and Home Affairs in nificant perversions in the local mar-tal has responded to the list of recom- Indiaeven though the political leader-ket. This fear, combined with themendations the Joint Chamber commu- ship seems to have softened theirabsence of any Rules of Origin agree-nicated to them after the creation of stances considerably. Various elementsment specific to Jammu and Kashmir,the body. Of course, it seems unlikely within the Indian bureaucracy remainhas forced officials in both countriesthat the business communities would wary of Pakistan's propensity to useto exercise extreme caution whenhave gone ahead with formation of the freer human and economic exchange asnegotiating crossLoC trade modalities.Joint Chamber had they known that a means to create greater unrest in

The two countries see eachother through a zero-sumlens whereby grantingunilateral concessions is asign of weakness. Thestrongest opposition on bothsides comes from the

bureaucracies



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Current CrossLoC Trade thousand people have traveled in over as the major reason. The transaction

three yearsdue to the highly cumber- closure and payment process continuedThe current trading arrangement is

so me cl ea ra nc e pr oc edures .16 to cause confusion, ultimately resultingfraught with stringent bureaucratic

Moreover, people in Indian Kashmir do in arrears of around 3.5 million Indianimpediments. Trade is restricted to

not even have the international direct rupees. Traders of other products haveduty-free access for twenty-one items,

dialing facility to communicate with also threatened to follow suit.all of which are primary products pro-

their counterparts across the LoC viaduced within the state of Jammu and The Challenges Ahead: Looking

phone.Kashmir. Moreover, goods on the posi- Beyond the Current Trade Regime

tive list do not seem to correspond to The absence of banking facilities In the Kashmiri context, the under-

market realities. A number of items defy and the lack of permission to use lying rationale for bodies like the Joint

trade rationale as they are already Pakistani and Indian rupees for transac- Chamber is to create bottom-up pres-

available at lower cost within the tions is another concern shared by the sure to hasten the process of normaliza-

importer's market or the exporter has a business communities on both sides. tion between the two parts of the state.

more lucrative market available domes- The Joint Chamber has already voiced Ultimately, permanent improvement in

tically. Moreover, there is no marketing its preference to trade in the local cur- intra-Kashmir relations presupposes sub-

setup to promote goods from across the rencies, with the U.S. dollar as the ref- stantial economic interdependenceLoC; this limits the appeal even for erence for exchange purposes. On the across the LoC such that the costs of

goods not suffering from an adverse cost reversal become unbearably high.

differential. Interdependence, in turn, requires not

At present, trade can be con- only a robust crossLoC relationship

ducted only on Tuesdays and among the stakeholders in the eco-

Wednesdays between 9 a.m. and 4 p.m. nomic sphere but also a streamlined

Transportation is another major impedi- focus on specific aspects within the over-

ment. No more than 1.5 metric tons arching relationship that are capable of

(MT) per truckload can cross the LoC creating the interdependence.

due to infrastructural constraints on Ideally, the Joint Chamber should

both sides. The small consignment size be looking to explore avenues that

makes trade unviable as the fuel, han- would provide the business community

dling, freight, insurance, and other mis- with attractive returns, thus creating acellaneous costs are not necessarily pro- genuine economic rationale instead of

portional to the consignment weight. In merely a symbolic one. The absence of

addition, neither side has permission to banking front, the situation is even such a focus at present stands out as a

transport goods to their final destina- more troublesome as neither the critical challenge to the entity's future

tion. Trucks must be unloaded at check- Jammu & Kashmir Bank on the Indian viability. Currently, the business com-

points near the LoC, then reloaded onto side nor the AJ&K Bank on the Pakistani munities are focusing almost exclu-

local trucks and hauled to the destina- side has branches across the LoC; they sively on trade in goods between

tion. Apart from the cost element, this also have no direct correspondence and Pakistani and Indian Kashmir. It is only

is especially problematic for perishable thus do not allow cross-referenced within this traditional trading sphere

items. transactions. In essence, apart from that businessmen seem to have a con-

Furthermore, traders have no cash purchases or informal credit mech- crete action plan; virtually all other ave-

means to meet regularly. The visa anisms, no official closure is possible. nues are considered too far-fetched to

restrictions continue to be extremely receive any serious attention at theThere is already empirical evi-

stringent for all residents, including moment.dence of the impact of the glaring bank-

businessmen. Even members of divided ing anomaly. Fruit growers from Indian The impulse to focus on trade in

families, for whom crossLoC buses Kashmir suspended crossLoC shipments goods is understandable and welcome

were instituted in 2005 and the visa within twenty days of the initiation of given the stringent restrictions in place

regime supposedly liberalized, have the process, citing lack of proper com- under the current regime. That said,

underutilized the serviceonly nine munications and payment mechanisms the Joint Chamber cannot afford to con-

The Joint Chamber shouldbe looking to exploreavenues that would providethe business communitywith attractive returns, thuscreating a genuine economicrationale instead of merely

a symbolic one.



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centrate its energies so narrowly, espe- reduced dependence on Jammu as the arrangement is bound to disillusion

cially when goods trade between the Kashmir Valley's sole outlet to the rest many in the business community; the

two parts of the state is the least attrac- of India. danger is that an extended period with-

tive aspect of the economic relation- out movement beyond crossLoC goodsIn light of the above, it is highly sur-

ship. Two critical links missing from this trade will cause the Chambers to loseprising that the Joint Chamber has not

picture are the potential for Indian interest altogether and thus make themdeliberated the possibility of transit

Jammu and Kashmir to use the Pakistani indifferent to a de facto reversal of thetrade and that there has been no push

part of the state as a transit route and minor gains achieved thus far. This is afrom the Chambers on the Indian side,

exploring trade in services, investment, concern that some influential business-jointly or individually, to advocate early

and joint ventures. men acknowledged during conversa-approval of the facility. The dynamic is

tions with the author.The expected gains for the rather interesting. On the one hand, the

Srinagar and Jammu Chambers from keenness to move from the to to the The concern is even graver on the

trading with Pakistani Kashmir notwith- through arrangement with Pakistani trade in services and investment fronts.

standing, Indian Jammu and Kashmir's Kashmir is evident among the Indian Past studies have established that the

business communities have often raised Jammu and Kashmir business commu- real potential for a holistic crossLoC

concerns about the market across the nity. In fact, some members are cate- economic relationship lies beyondLoC being too small for it to be a major gorical in highlighting that transit trade goods trade. The similar nature of the

attraction. Indeed, this is legitimate, economies on the two sides of the LoC

not only because of the limited size of makes trade in goods useful only as a

the population on the Pakistani side of starting point. The prospects for real

the LoC but also because of its meager long-term gains lie in eight service sec-

purchasing power. Ideally, the Indian tors: tourism, forestry, waterways,

side is vying for a passage through power generation, information technol-

Pakistani Kashmir to Pakistan-proper, ogy, education, anti-poverty programs,

the Persian Gulf countries, and beyond. and disaster management.

This is true for both Chambers in the Although the Joint Chamber men-

Indian part of the state. Jammu would tioned joint ventures in tourism,

like to make use of Pakistani transport exchange in software industries, and

infrastructure to export from the ports contact between educational and tech-of Karachi and Gwadar, which are much nical institutions as potential avenues

cheaper and more efficient than for consideration in its recent communi-is their only real interest. However, lead-Mumbai, the port Jammu producers cur- cation to the governments of Pakistaners of the respective Chambers arguerently utilize. In fact, given Jammu's and India, the business communities arethat the decision not to include transitstrength in industrial production and its unprepared to pursue these venturestrade in the list of recommendationsgeographical location, the option of seriously.communicated by the Joint Chamber toexporting manufactured goods through There is a lack of information onthe governments was deliberate; it wasthe historic Jammu-Sialkot (Pakistan) the specific avenues to explore regard-believed to be too controversial for theroute is even more attractive than trading investment and joint ventures in theauthorities to consider seriously.ing across the LoC. For the Srinagar short to medium term. The business

The disconnect between the desireChamber, the appeal of the transit facil- community often mentions broad areas,for tangible gains among the businessity is twofold. For one, the current focusing only on the macro, sectoral-community on the Indian sidehencetransport route available to the geo- level picture. Thinking about non-goodsthe interest in transit tradeand thegraphically isolated Valley is highly exchanges remains extremely tenta-passive effort to move to the throughundependable. There are frequent com- tive. The lack of movement within thearrangement implies that there is insuf-plaints of perishable items being dam- community is evident in the fact thatficient pressure on the governments inaged by the time they reach their final the Joint Chamber set up workingIslamabad and New Delhi. This is self-destinations in India. Second, transiting groups to identify items that could bedefeating because the present tradethrough Pakistani Kashmir implies added to the current trade list, but

The internal contradictionin the stance of the businessenclave is obvious: whilethey are bitter about

government restrictions,they have been unable to

formulate a unified

position.



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ignored the need to start parallel work Regularly exchange data on water flows Source: Moeed Yusuf, Exploring

on investment and joint ventures. and quality. t h e P o t e n t i a l f o r E c o n o m i c

D e v e l o p m e n t a n d C r o s s L o CThe internal contradiction in the Power generation: (1) Conduct a

Collaboration in Jammu Kashmir,stance of the business enclave is obvi- careful study of the power generation

Pugwash, Issue Brief, March 2007ous: while they are bitter about govern- potential to gauge the amount of elec-

ment restrictions, they have been tricity that can realistically be brought The Way Forward: Making the Joint

unable to formulate a unified position, to the grid; (2) Explore the possibility of Chamber Deliver

let alone pursue it, on issues related to a joint power generation project on the The following recommendations

transit trade, services trade, invest- LoC. suggest both steps the Joint Chamber

ment, and joint ventures. The business Information Technology: (1) itself needs to take and areas in which

leaders seem willing to take a more con- Pakistani Kashmir should utilize the soft- the body needs to lobby the state and

servative approach than is perhaps ideal ware development capacity across the national governments.

for a body set up to alter the status quo LoC by outsourcing assignments; (2) Viability of the Joint Chamberin an intensely hostile environment. In Request Indian IT professionals to teach Bringing the Stakeholders Togetherfact, an overwhelming majority seems at small IT training centers in Pakistani The very idea of the Joint Chamber

resigned to the fact that politics will Kashmir; IT students from Pakistani presupposes a consensus within the busi-continue to trump the aspirations that Kashmir could also be sent to study in ness community on the existence andunderlie the Joint Chamber. While that the proposed Indian Technology objectives of the body. Neither side canis certainly true at present, and is likely Institute in Indian Kashmir; (3) The claim to have fulfilled this prerequisiteto remain so in the near-to-medium Indian side could help their Pakistani yet. The foremost requirement then isterm, deferring the future of the Joint counterparts in setting up software tech- for business communities to be on boardChamber to the political domain under- nology parks and other such IT ventures. in unison. In Pakistani Kashmir, an inter-mines the very rationale for its exis- Education: (1) Initiate a small stu- nal convergence of opinion is requiredtence, that is, to create bottom-up pres- dent exchange program for postgradu- whereby proponents of both views dis-sure despite the adversarial framework. ate institutions; (ii) Share experiences cussed earlier (accelerated versus grad-In essence, those who are on improving the quality of education; ual liberalization) are comfortable withAreas of Interest for Investment and educational administrators (including the entity. As for Indian Jammu andJoint Ventures as Identified by a nongovernmental ones) on the Pakistani Kashmir, both Chambers have to work

Previous Pugwash Study (supported side could build on their existing pro- out a mechanism to ensure that theirby USIP) grams for teacher training, either by interaction in the Joint Chamber is

Tourism: (1) Establish a Joint sharing best practices or exchanging immune to intrastate political turbu-Travel Management Board; (2) Set up master trainers at teacher training lence. Specifically, the Kashmir Valleyhotel management training institutes in institutes across the LoC. and Jammu businessmen need to chart aIndian Kashmir where individuals from Anti-poverty programs: (1 ) common negotiating stance vis--visboth sides would be allowed to train; (3) Replicate the Rural Support Program New Delhi.Set up vocational training institutes spe- (RSP) from Pakistan's Federally The Joint Chamber's creation not-cific to the tourism industry on both Administered Northern Areas structure withstanding, business communitiessides. in Pakistani and Indian Kashmir; RSP top from the two sides also suffer from a

Forestry: (1) Involve communities brass could conduct orientation and trust deficit thanks to decades of state-in Joint Forest Management projects training courses for their Indian coun- led propaganda. The fragility of the rela-with assistance from civil society; (2) terparts and/or set up the program in a tionship was evident during the AJKInstitute public-private partnerships in few model villages in Indian Kashmir Chamber's visit across the LoC. Forthe forestry sector; investors from the most desperate for tangible gainsthe instance, the delegation found it offen-same or opposite side of the LoC could business communitiesare unwilling to sive that Pakistani Kashmir was referredlease out land for regeneration and har- follow the path that is most likely to to as Pakistan Occupied Kashmir investing. lead to those very dividends. The cur- one of the post del iberat ion

rent mindset creates a selffulfillingWaterways: (1) Hold joint environ- communiqus issued by the hosts. Asprophecy.mental clean-up exercises; (2) mentioned, the FCIK was also not too



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Epilogue Nov2009

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