Occasional Paper #10:OP:2  

by David Cortright and Amitabh Mattoo

This essay makes the case for a new U.S. policy toward South Asia based on incentives rather than sanctions. It examines a variety of incentives strategies for stemming the spread of nuclear weapons capability, ameliorating the crisis in Kashmir and improving political relations in the region. Noting the importance of South Asia to U.S. and international security, the paper emphasizes the need for a new level of engagement and commitment to the region.

Past efforts to sanction India and Pakistan have often failed, although restrictions on nuclear-related exports to the region remain effective and important. Incentives have been employed in the past with considerable success but they have been used to advance Soviet or Western cold war interests. The challenge now is to offer incentives that encourage conflict resolution and cooperation in the region. Among the incentive initiatives proposed in the essay are the partial lifting of dual use technology controls on India, a partial suspension of the Pressler Amendment against Pakistan and the granting of trade preferences and limited debt relief for both nations. Also examined is the possibility of a permanent Security Council seat for India, conditioned on New Delhi accepting non-nuclear status.

The article concludes with a detailed proposal for U.S. and international engagement in resolving the conflict in Kashmir through the application of the various incentives identified in the paper.

Dr. David Cortright is president of the Fourth Freedom Forum, Goshen, Indiana, and Amitabh Mattoo is associate professor at the School of International Studies, Jawaharlal Nehru University.  

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