The Political Economy of Conflict in South Asia Matthew J. Webb and Albert Wijeweera International Political Economy Series Series Editor: Timothy M. Shaw , Visiting Professor, University of Massachusetts Boston, USA and Emeritus Professor, University of London, UK The global political economy is in flux as a series of cumulative crises impacts its organization and governance. The IPE series has tracked its development in both analysis and structure over the last three decades. It has always had a concentra- tion on the global South. Now the South increasingly challenges the North as the centre of development, also reflected in a growing number of submissions and publications on indebted Eurozone economies in Southern Europe. An indispensable resource for scholars and researchers, the series examines a variety of capitalisms and connections by focusing on emerging economies, companies and sectors, debates and policies. It informs diverse policy communi- ties as the established trans-Atlantic North declines and ‘the rest’, especially the BRICS, rise. Titles include: Matthias Ebenau, Ian Bruff and Christian May (e ditors ) STATES AND MARKETS IN HYDROCARBON SECTORS Critical and Global Perspectives Jeffrey Dayton-Johnson LATIN AMERICA’S EMERGING MIDDLE CLASSES Economic Perspectives Andrei Belyi and Kim Talus STATES AND MARKETS IN HYDROCARBON SECTORS Dries Lesage and Thijs Van de Graaf RISING POWERS AND MULTILATERAL INSTITUTIONS Leslie Elliott Armijo and Saori N. Katada (e ditors ) THE FINANCIAL STATECRAFT OF EMERGING POWERS Shield and Sword in Asia and Latin America Md Mizanur Rahman, Tan Tai Yong, Ahsan Ullah (e ditors ) MIGRANT REMITTANCES IN SOUTH ASIA Social, Economic and Political Implications Bartholomew Paudyn CREDIT RATINGS AND SOVEREIGN DEBT The Political Economy of Creditworthiness through Risk and Uncertainty Lourdes Casanova and Julian Kassum THE POLITICAL ECONOMY OF AN EMERGING GLOBAL POWER In Search of the Brazil Dream Toni Haastrup and Yong-Soo Eun (e ditors ) REGIONALISING GLOBAL CRISES The Financial Crisis and New Frontiers in Regional Governance Kobena T. Hanson, Cristina D’Alessandro and Francis Owusu (e ditors ) MANAGING AFRICA’S NATURAL RESOURCES Capacities for Development Daniel Daianu, Carlo D’Adda, Giorgio Basevi and Rajeesh Kumar (e ditors ) THE EUROZONE CRISIS AND THE FUTURE OF EUROPE The Political Economy of Further Integration and Governance Karen E. Young THE POLITICAL ECONOMY OF ENERGY, FINANCE AND SECURITY IN THE UNITED ARAB EMIRATES Between the Majilis and the Market Monique Taylor THE CHINESE STATE, OIL AND ENERGY SECURITY Benedicte Bull, Fulvio Castellacci and Yuri Kasahara BUSINESS GROUPS AND TRANSNATIONAL CAPITALISM IN CENTRAL AMERICA Economic and Political Strategies Leila Simona Talani THE ARAB SPRING IN THE GLOBAL POLITICAL ECONOMY Andreas Nölke ( editor ) MULTINATIONAL CORPORATIONS FROM EMERGING MARKETS State Capitalism 3.0 Roshen Hendrickson PROMOTING U.S. INVESTMENT IN SUB-SAHARAN AFRICA Bhumitra Chakma SOUTH ASIA IN TRANSITION Democracy, Political Economy and Security Greig Charnock, Thomas Purcell and Ramon Ribera-Fumaz THE LIMITS TO CAPITAL IN SPAIN Crisis and Revolt in the European South International Political Economy Series Series Standing Order ISBN 978–0–333–71708–0 hardcover 978–0–333–71110–1 paperback You can receive future titles in this series as they are published by placing a standing order. Please contact your bookseller or, in case of difficulty, write to us at the address below with your name and address, the title of the series and one of the ISBNs quoted above. Customer Services Department, Macmillan Distribution Ltd, Houndmills, Basingstoke, Hampshire RG21 6XS, England The Political Economy of Conflict in South Asia Edited by Matthew J. Webb Assistant Professor, The Petroleum Institute, United Arab Emirates and Albert Wijeweera Senior Lecturer, Southern Cross University, Australia Editorial matter, selection, introduction and conclusion © Matthew J. Webb and Albert Wijeweera 2015 Individual chapters © Respective authors 2015 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2015 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire, RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillanis the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN: 978–1–137–39743–0 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress. Contents List of Tables and Figures vii Acknowledgements i x Notes on Contributors x 1 I ntroduction 1 M atthew J. Webb and Albert Wijeweera 2 T he Economics of Conflict in the Chittagong Hill Tract Region of Bangladesh 1 2 S yed Serajul Islam 3 T he ‘Political Economy’ of Sikh Separatism: Ethnic Identity, Federalism and the Distortions of Post-Independence Agrarian Development in Punjab-India 3 2 J ugdep S. Chima 4 T he Political Economy of the Ethno-nationalist Uprising in Pakistani Balochistan, 1999–2013 57 F arhan Hanif Siddiqi 5 N epal’s Protracted Transition: Explaining the Continuing Political and Economic Impasse 7 5 P ramod K. Kantha 6 I ndia’s Indigenization of Military Aircraft Design and Manufacturing: Towards a Fifth-Generation Fighter 9 3 M ichael B. Charles and Elisabeth Sinnewe 7 T he Political Economy of Pakistan’s ‘War on Terror’ 114 H oward Brasted and Zahid Shahab Ahmed 8 T errorist Activities and Financial Market Performance: Evidence from Sri Lanka 1 32 A lbert Wijeweera 9 G reed, Grievance and Violent Separatism in South Asia 149 Matthew J. Webb v vi Contents 10 The Himalayan Ranges, Glaciers, Lakes and Rivers: An International Ecological, Economic and Military Outlook 171 Lavanya Vemsani 11 Defence, Security and the Economy in South Asian Countries 1 91 Christos Kollias and Stephanos Papadamou 12 A Survival Analysis of the Onset of Peace in South Asia 211 Ali C. Tasiran and Zainab Kazim Ali 13 Conclusion 2 27 Matthew J. Webb and Albert Wijeweera Index 2 31 List of Tables and Figures Figures 7.1 T errorist incidents in Pakistan 2001–2013 126 8.1 C umulative death toll due to terrorist attacks in Sri Lanka 1986–2009 1 37 11.1 T otal military spending in South Asia 1988–2011 198 11.2 V ariables used to analyse military spending in South Asia 202 11.3 I mpulse response analysis for 1 lag VAR GDPPC INFLA HCGDP MEGDP INT 2 04 12.1 N on-parametric Kaplan–Meier survival functions by region 2 18 12.2 N on-parametric Kaplan–Meier survival functions of the termination of Asian wars 221 Tables 4.1 E mployment of Balochistan-domiciled persons in gas-producing and distribution companies 70 6.1 C urrent products of Hindustan Aeronautics Limited (HAL) 1 02 6.2 P otential Indian air power in 2025 107 7.1 C osts of war in Pakistan 2001–2014 128 8.1 S ummary statistics of major variables for terrorist-related incidents in Sri Lanka 1986–2009 142 8.2 T est for ARCH effects in analysis of terrorist-related incidents in Sri Lanka 1 43 8.3 R esults of GARCH(1,1) model in analysis of terrorist-related incidents in Sri Lanka 144 11.1 C omparative development indices for South Asian states 1 93 11.2 C omparative development indices for South Asian states vis-à-vis regional averages 194 11.3 M ilitary manpower in South Asia 1989–2010 197 11.4 T he defence burden in South Asia 1988–2010 199 11.5 V ariance decomposition results used in the analysis of defence spending of South Asian states 203 vii viii List of Tables and Figures 12.1 W ars by location and length 2 17 12.2 O rdered spells and durations of Asian wars 219 12.3 D istribution of Asian wars by termination type 220 12.4 D escriptive statistics of variables for all Asian wars 222 12.5 C ox proportional model estimates for all outcomes in the analysis of Asian wars 2 24 Acknowledgements We would first like to acknowledge and express our gratitude to our editors at Palgrave Macmillan for their invaluable support and assistance in the production of this volume. In addition, we would like to thank all of the contributing authors to this volume for their dedication and hard work; it was a privilege and a joy to be a part of this exciting project with you. Special thanks are due to Christos Kollias and Jugdep S. Chima who, in addition to supplying chapters for this volume, also introduced us to several other authors who kindly agreed to do the same. Others who assisted through their encouragement and support include Hamad Karki, Mark Hayman, Brian Bielenberg, Gwyn Rees and Stephen Levine. The volume is lovingly dedicated to Sayuri, Jamie and Mia Webb, and Nandani, Chandana and Saduni Wijeweera. ix
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