India-Pakistan: March 1, 2005


Pakistan has moved many counter-terror units to areas where Sunni and Shia radicals have been fighting. This time of year, there are Shia religious ceremonies that often draw attacks by Sunni terrorists. The Sunni radicals receive financial support from wealthy Sunnis in Pakistan and the Persian Gulf. The Shia groups get support from Iran. 

India and Pakistan are both raising their defense budgets, continuing an arms race that has been going on for over a decade. Next year, India plans to spend nearly $19 billion, while Pakistan will spend about a third of that. However, Pakistan is spending nearly twice as a percentage of GDP. India has a much larger, and more efficient, economy. It's an arms race that Pakistan can never win.

In eastern India, Maoist rebels killed eight villagers as part of a terrorist campaign. This was the first large scale killing in nine months by the Andhra Pradesh Maoists. The attacks are made on upper caste families, to show support for lower caste people.  


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