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South Asia finds itself at a geopolitical crossroads. India has abandoned half a century of "non alignment" and is building bridges with the United States. Pakistan, a traditional US ally, is reassessing the relationship following its return to something resembling democracy. And both India and Pakistan are interested in greater ties with what many see as the coming power in the Middle East: Iran. This week Iran’s president flew in for a tour that highlighted the ambiguous relationship between his country, the US, and South Asia.
At about 66m, Iran’s population is roughly half that of Pakistan, but it is far bigger than any of the Middle Eastern countries to Iran’s west. This wealth of human resources, its status as a major energy exporter, and its strategic location on the Persian Gulf has made many people, including Iran’s own government, view the country as a candidate for regional or pan-Islamic leadership. Iran has attempted to boost this image by publicly challenging the regional security dominance of the US and Israel and by arming militant groups and enriching uranium. However, Iran’s efforts are hindered by its Persian, Shia Muslim character in what is a largely Sunni, Arab, Middle East.
President Mahmoud Ahmadinejad’s visit to South Asia this week corresponded with some especially loud American sabre-rattling. On 30 April Michael Hayden, the director of the Central Intelligence Agency, said that Iraqi militants were equipped by Iran as "policy of the Iranian government, approved to highest level of that government, to facilitate the killing of Americans in Iraq". On the same day a State Department report described Iran as the world’s most active state sponsor of terrorism, while a day earlier Defense Secretary Robert Gates had described the deployment of a second US aircraft carrier to the Gulf as a "reminder" to Tehran.
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Monetary fuel for the inflation fire
After the annual meetings of the National People’s Congress, Premier Wen Jiabao again cited the inflation fight as the government’s top priority. He reiterated 8% GDP growth and 4.8% consumer inflation objectives, suggesting that recent higher growth might be sacrificed to bring inflation under control. Don’t believe it.
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