December 31, 2012-January 6, (1), 2013 Editor: Sanjeev Kumar Shrivastav Contributors Gulbin Sultana Bangladesh, Sri Lanka, Maldives Pranamita Baruah Japan, South Korea, North Korea Rajorshi Roy Central Asia & Russia Princy Marine George Syria, Lebanon, Israel, Palestine Amit Kumar Defence Review Shristi Pukhrem Internal Security Review Review Adviser: S. Kalyanaraman Follow IDSA Facebook Twitter 1, Development Enclave, Rao Tula Ram Marg, New Delhi-110010 Telephone: 91-26717983; Fax: 91-11-26154191 Website: www.idsa.in; Email: [email protected] The Week in Review December 31, 2012-January 6, (1), 2013 CONTENTS In This Issue Page I. COUNTRY REVIEWS A. South Asia 2-4 B. East Asia 4-6 C. Central Asia & Russia 6-8 D. West Asia 8-9 II. DEFENCE REVIEW 9-10 III. INTERNAL SECURITY REVIEW 10-14 1 The Week in Review December 31, 2012-January 6, (1), 2013 I. COUNTRY REVIEWS A. South Asia Bangladesh l Reports: Remittances in Bangladesh sets new benchmark in 2012 According to reports, remittances in Bangladesh reached $14.17 billion setting another benchmark in 2012 and offering the Bangladesh government a cushion against eroding foreign exchange reserves and exchange rate volatility. Inward remittances grew 16.43 percent in 2012 from the previous year, when it accelerated 10 percent from 2010. Meanwhile, foreign currency reserves reached $12.76 billion on January 2, 2013. 1 Sri Lanka l The UN Special Rapporteur on the independence of judges and lawyers expresses serious concern about the impeachment proceedings against the Chief Justice; Annual average inflation rate rose to 7.6 per cent in December 2012 from 7.2 per cent in November 2012; Sri Lanka establishes diplomatic relations with the Islamic Republic of Mauritania; Sri Lanka targets 7.5 percent growth in 2013; Airport and Aviation Services (Sri Lanka) Ltd. Signs agreement with JICA; Sri Lanka completes setting up of its team for the high level India-Sri Lanka Joint Task Force (ISJTF) with eight government officials and four leading private sector representatives; FDI reached US$ 2bn According to reports, the UN Special Rapporteur on the independence of judges and lawyers, Gabriela Knaul, expressed serious concern on December 31, 2012 about the impeachment proceedings against the Chief Justice of the Supreme Court and the recent attacks against lawyers who have been fighting for the independence of the judiciary in Sri Lanka. The Special Rapporteur urged the authorities of Sri Lanka to reconsider the impeachment of the Chief Justice due to the “lack of due process and fair trial guarantees” and to ensure that the judiciary can operate free from external pressures, threats or any interference.2 In another development, reports noted that the inflation as measured by Colombo Consumers’ Price Index (CCPI) decreased to 9.2 percent in December 2012 from 9.5 percent in previous month. However, the annual average inflation rate rose to 7.6 per cent in December 2012 from 7.2 per cent in November 2012.3 1 Byron, Rejaul Karim, “Remittance sets new benchmark”, The Daily Star, January 3, 2013 at http:// www.thedailystar.net/newDesign/news-details.php?nid=263676 2 “UN expert warns Sri Lanka to stop attacks on the independence of judiciary”, The ColomboPage, December 31, 2012 at http://www.colombopage.com/archive_12B/Dec31_1356973861CH.php. 3 “Sri Lanka inflation declines to 9.2% in December”, The ColomboPage, December 31, 2012 2 The Week in Review December 31, 2012-January 6, (1), 2013 Sri Lanka and the Islamic Republic of Mauritania established formal diplomatic relations on 21st December 2012. The Permanent Representative of Sri Lanka to the United Nations, Dr. Palitha Kohona and the Permanent Representative of Mauritania to the United Nations Mr. Ahmed Ould Teguedi signed the Joint Communiqué on behalf the two countries.4 Reports noted that Sri Lanka for 2013 targets a 7.5 percent growth in the country’s GDP and an overall budget deficit reduced to 5.8 percent of GDP while maintaining inflation at mid-single digit levels. The Governor of the Central Bank of Sri Lanka Ajith Nivard Cabraal announced this during his presentation on the Bank’s policy direction and work plan for the upcoming year “Road Map for Monetary and Financial Sector Policies for 2013 and Beyond” for the seventh consecutive year at the Central Bank premises.5 According to reports, Airport and Aviation Services (Sri Lanka) Ltd. and Japan International Co- operation Agency (JICA) have signed the loan agreement for Japanese Yen 29 billion (Sri Lankan Rs. 42.5 billion) to finance the expansion of the Bandaranaike International Airport and future developments.6 Reports noted that Sri Lanka has completed setting up of its team for the high level India-Sri Lanka Joint Task Force (ISJTF) with eight government officials and four leading private sector representatives.7 Secretary, Ministry of Industry and Commerce Anura Siriwardena will be the Chairman of the ISJTF. The Government representatives of India will be headed by Joint Secretary of Indian Department of Commerce of the Industry and Commerce Ministry. In other developments, reports noted that Foreign Direct Investments received by Sri Lanka reached US$ 2 billion in 2012 compared to the previous year, according to the Board of Investment (BOI). According to the BOI, 45% of the FDI contribution was for infrastructure development, 28% for production sector and 19% for hotels and restaurants.8 Maldives l President Waheed meets former PM of Malaysia Dr Mahathir Mohamed; Aviation Security Command established under the Ministry of Defence and National Security; Fifteen of the 191 inhabited islands had faced severe erosion at the end of 2011; Identification system to monitor vessels that enter and depart from the Maldives According to reports, President Dr Mohamed Waheed met with Dr Mahathir Mohamed, the former 4 “Diplomatic relations between Sri Lanka and Mauritania established”, Government of Sri Lanka Website, December 31, 2012 at http://www.priu.gov.lk/news_update/Current_Affairs/ca201212/20121231diplomatic_ relations_between_sl_mauritania_established.htm. 5 “Sri Lanka targets 7.5 percent GDP growth and mid-single digit inflation in 2013”, The ColomboPage, January 2, 2013 at http://www.colombopage.com/archive_12B/Jan02_1357140384CH.php. 6 “Sri Lanka to get Rs. 42.5 billion loan from Japan to expand Bandaranaike International Airport”, The ColomboPage, January 3, 2013 at http://www.colombopage.com/archive_12B/Jan03_1357236622CH.php. 7 “Sri Lank appoints team for Joint Task Force for trade with India”, ColomboPage, January 6, 2013 at http:// www.colombopage.com/archive_12B/Jan06_1357412783CH.php. 8 “Sri Lanka receivers US$ 2 billion FDI in 2012”, ColomboPage, January 4, 2013 at http://www.colombopage.com/ archive_12B/Jan04_1357321801CH.php. 3 The Week in Review December 31, 2012-January 6, (1), 2013 Prime Minister of Malaysia on January 1, 2013 during his private visit to Malaysia.9 President also met Malaysian Foreign Minister Dato’ Sri Anifah Aman at the Maldives High Commission in Malaysia on January 3, 2012.10 In another development, according to reports, after consultation with the People’s Majlis, President Dr Mohamed Waheed established Aviation Security Command, under the Ministry of Defence and National Security to formulate aviation security policies and procedures in accordance with the aviation laws on January 1, 2013.11 According to the “Statistical Year Book” updated and published by the Planning Department of Maldives, fifteen of the 191 inhabited islands had faced severe erosion at the end of 2011. The people of the islands affected worst were shifted to other islands.12 In other developments, reports noted that Maldives Customs Service has established an identification system to monitor vessels that enter and depart from the Maldives. The system will assist in controlling the drugs and other illegal products that enter the country via its harbours uncontrollably, as well as in helping vessels in need.13 B. East Asia Japan l Japanese Prime Minister expresses his intention to issue a ‘forward looking statement’ replacing the 1995 Japanese government’s apology for wartime atrocities; Deputy Prime Minister Taro Aso goes on a four-day long trip to Myanmar; Abe’s envoy meets South Korean President-elect Park; Japan plans to buy US Global Hawks to increase SDF’s surveillance capabilities According to reports, Japanese Prime Minister Shinzo Abe, during a recent interview, expressed his willingness to issue a ‘forward looking statement’ that could replace the 1995 apology statement offered by the then Japanese Prime Minister Tomichii Murayama for Japanese wartime expansionism. He also pointed out that during his previous tenure as Prime Minister (2006-2007), 9 “President meets with former Prime Minister of Malaysia Dr Mahathir Mohamed”, The President’s Office, Republic of Maldives, January 1, 2013 at http://www.presidencymaldives.gov.mv/Index.aspx?lid=11&dcid=8444. 10 “President Meets Malaysian Foreign Minister”, The President’s Office, Republic of Maldives, January 3, 2013 at http:/ /www.presidencymaldives.gov.mv/Index.aspx?lid=11&dcid=8450. 11 “President Establishes Aviation Security Command”, The President’s Office, Republic of Maldives, January 1, 2013 at http://www.presidencymaldives.gov.mv/Index.aspx?lid=11&dcid=8447. 12 “Fifteen Islands in danger of extinction due to severe erosion”, Sun Online, January 2, 2013 at http://sun.mv/ english/8464. 13 “System established to monitor vessels that enter Maldivian territory”, The President’s Office, Republic of Maldives, January 6, 2013 at http://sun.mv/english/8556. 4 The Week in Review December 31, 2012-January 6, (1), 2013 the LDP administration could not find any evidence to indicate that the ‘comfort women’ had been forced to serve as sex slaves in the Japanese military brothels during the war.14 Japanese Deputy Prime Minister Taro Aso paid a four-day long visit to Myanmar from January 2, 2013.15 It was the first overseas visit by a member of the newly appointed Abe cabinet.