17Th Asia Security Summit the Iiss Shangri-La Dialogue
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International Institute for Strategic Studies (IISS) The 17th Shangri-La Dialogue 17TH ASIA SECURITY SUMMIT THE IISS SHANGRI-LA DIALOGUE SPECIAL SESSION 4 COMPETITION AND COOPERATION IN THE INDIAN OCEAN REGION SATURDAY 2 JUNE 2018 CHAIR: RAHUL ROY-CHAUDHURY SENIOR FELLOW FOR SOUTH ASIA, IISS MACSUZY MONDON DESIGNATED MINISTER, MINISTER FOR LOCAL GOVERNMENT AND HOME AFFAIRS, SEYCHELLES KAPILA WAIDYARATNE SECRETARY OF DEFENCE, SRI LANKA VICE ADMIRAL (RETD) SHEKHAR SINHA DIRECTOR, INDIA FOUNDATION; FORMER COMMANDER IN CHIEF, WESTERN NAVAL COMMAND, INDIAN NAVY PHILIP BARTON DIRECTOR-GENERAL, CONSULAR AND SECURITY, FOREIGN AND COMMONWEALTH OFFICE, UK SENIOR COLONEL ZHAO XIAOZHUO DIRECTOR, CENTRE ON CHINA–AMERICAN DEFENSE RELATIONS, ACADEMY OF MILITARY SCIENCE, PEOPLE’S LIBERATION ARMY, CHINA 2 June 2018 PROVISIONAL TRANSCRIPT International Institute for Strategic Studies (IISS) The 17th Shangri-La Dialogue Rahul Roy-Chaudhury, Senior Fellow for South Asia, IISS Welcome, ladies and gentlemen, to this simultaneous special session on Competition and Cooperation in the Indian Ocean Region. My name is Rahul Roy-Chaudhury. I am the Senior Fellow for South Asia based at the IISS in London. This is the first time in the Shangri-La Dialogue that we have a session on the Indian Ocean region and we already have had some discussion on this region. In yesterday’s keynote address, India’s Prime Minister Narendra Modi noted that the Indian Ocean held the key to India’s future. This morning, US Defense Secretary Jim Mattis referred to the symbolic change of name of the US Pacific Command to the Indo-Pacific Command, emphasising the growing importance of the Indian Ocean for the US. Clearly there are key security challenges in the Indian Ocean alongside growing evidence of competition between major powers. In the absence of a regional security architecture in the Indian Ocean, an important question is how its constituent states as well as outside powers can cooperate more effectively in response to these challenges. In this respect, our speakers have been set two exam questions: first, what they perceive to be the major contemporary challenges to the security of the Indian Ocean region, and second, what they feel are the prospects for closer regional cooperation in response to these challenges. But I suspect their major challenge will be to respond to these queries within a time frame of only five to seven minutes each, so that we have enough time for a policy- relevant discussion session. The entire session is on the record. Our first speaker is Minister Macsuzy Mondon, the Designated Minister and Minister for Local Government, Home Affairs, Youth, Sports and Culture of the Government of the Seychelles. Minister Mondon was first appointed as a minister 12 years ago, holding the portfolios of health, employment and human-resources development and education. I am especially delighted to welcome the Minister here as she is the first speaker from the Seychelles in the Shangri-La Dialogue. Minister. Macsuzy Mondon, Designated Minister, Minister for Local Government and Home Affairs, Seychelles Thank you, Mr Chair. Excellencies, ladies and gentlemen, good afternoon. Before I begin, allow me to express my sincere thanks and appreciation to the International Institute for Strategic Studies and the government of Singapore for inviting Seychelles to participate in the 17th Asia Security Summit Shangri-La Dialogue. We recognise and extend our heartfelt appreciation for such a platform for us small island developing states in the Indian Ocean region. Distinguished guests, ladies and gentlemen, the twenty-first century, the opening chapter of the third millennium, has broadened the frontiers for greater possibilities and ushered humanity into a period of great expectations. Driven by the irrepressible forces of digitalisation, globalisation and economic integration, this new era of modernity has a special dimension as it has awoken humanity to the importance of the oceans, both as a lynchpin of the global economy and a key component of international security. 2 June 2018 PROVISIONAL TRANSCRIPT International Institute for Strategic Studies (IISS) The 17th Shangri-La Dialogue This awakening has made the twenty-first century the century of the sea. The economic concept summarises the importance of the seas to the global economy as the second living domain of the world, while its sister concept of maritime security underscores the importance of securing the maritime domain from all the maritime threats, be they of accidental, natural or illicit nature. This increasing importance of oceans in today’s global village has further catapulted the Indian Ocean region to the status of the world’s most strategic water mass because of the interplay of economic factors like oil routes, important sea lanes, onshore and offshore assets, and security elements, such as the fragility of some states in that region, the proliferation of organised crime and the existence of hot spots, which lie in conflict areas, which can threaten peace, prosperity and stability. The characteristics of the sea lines of communication, choke points and the development of the onshore and offshore assets will continue to be an important element that will play a major role in defining the region. The connectivity of the Indian Ocean region holds and connects some important strategic port access and choke points such as the Cape of Good Hope, the Suez Canal, the Strait of Hormuz and Strait of Malacca. These choke points provide the necessary arteries for global trade and commerce, in that process creating and opening the Indian Ocean with more opportunities for bilateral and multilateral cooperation. The development of littoral states, the vested interests and the strategic importance of the Indian Ocean region from the external dimension will dovetail the conceptualisation for a common maritime security community. The detailed knowledge of the states and its importance to align with the global world order will be essential to maintain a safe and secure future. The Indian Ocean region faces many challenges which need to be addressed through adopting a common approach and strategy in building regional communities and creating a conducive environment for more cooperation worldwide. Most of the people in the Indian Ocean region obtain 20% to 50% of their animal protein from fish. Over-fishing, illegal, unregulated and unreported fishing is a major concern of ours as it is for any nation with an expanse of water. Illegal, unregulated and unreported fishing and its ramifications for any state, not to mention small island developing states, must not be underestimated. We lose much when such activities occur and further to that, climate change and the impact of environmental degradation poses a serious risk to sustainable economic development. Commercial fishing and local economies based on fisheries are adversely affected with the displacement of native species and extinction risk of the already threatened species. They need to adopt and strengthen national capabilities to deal with the environmental risk, including the risk of oil spills or deliberate discharge at sea, and to have proper mechanisms in place for the segregation of litter, plastic pollution and other forms of solid and liquid waste. The continued effort for more maritime domain awareness will help us to act faster to deter and protect our seas. Diverse non-traditional and traditional security challenges affect the region, ranging from natural disasters to concern over energy security, drugs trafficking, piracy and terrorism to environmental- 2 June 2018 PROVISIONAL TRANSCRIPT International Institute for Strategic Studies (IISS) The 17th Shangri-La Dialogue risk disasters. This further offers more areas for potential collaboration within states and beyond, with the aim to continue to press on to maintain economic growth, safe passage and transportation of resources, hence intensifying and heightening the ocean’s strategic values. The counter-piracy was the most successful manifestation of an active global cooperation. More than 80 countries, organisations and industry groups participated in operations in the Indian Ocean region under the auspices of the UN-mandated Contact Group on Piracy off the coast of Somalia, which Seychelles chaired for two years from 2016 to 2017. Under the new chair of the Indian Ocean Commission, Seychelles remains committed mainly in the Working Group of the Operations at Sea which it is chairing alongside India, United Arab Emirates and with the support of Sri Lanka. It is important to emphasise that as long as there is political instability in Somalia and if international naval operations are reduced in the region, then piracy activity is likely to rise again. Drug trafficking is another major international concern that is undermining the foundation of societies and economies. This includes the Indian Ocean region. Our region has become an area of transit, redistribution and drug use as evidenced by the conclusions of the 2016 Colombo Conference that led to the launching of the Southern Route Partnership. There is a continuing need to redistribute the operational means and enhance existing capacity-building and procedures enforced in the region through appropriate training and joint operations so as to address maritime security and safety threats accordingly. The Indian Ocean region has developed cooperation and collaboration for a wide spectrum of these activities such as the Indian Ocean Rim Association (IORA),