normalization and after 239Rationale
First and foremost, the end of the cold war and collapse of the
Soviet Union signifi cantly enhanced Rao’s endeavor. While Eurocentric
politics was not directly responsible for nonrelations, the cold war did
provide a strong ideological rationale and support for India’s unfriendli-
ness toward Israel. The post- 1967 Soviet hostility toward Israel partly
contributed to its isolation in the Third World. As the “natural ally” of the
nonaligned world, Moscow’s pro- Arab and anti- Israeli policies had reso-
nance in diff erent parts of the world. Support for the Palestinians be-
came a sign of progressive orientation against imperialism. Thus the
disintegration and disappearance of the Soviet Union signifi cantly di-
luted the ideological component of the foreign policies of many states. In
practical terms, this meant the weakening of the Non- Aligned Movement
and a reduction of the anti- Israeli climate. The sudden disappearance of
the Soviet Union meant that the new world order would be dominated
by the sole surviving superpower, the United States. Like many other
countries, India would have to learn to live with this new reality. Having
thrived on a diet of anti- Americanism, especially during the 1970s and
early 1980s, this was a tall order for India.
India needed U.S. backing for another reason. Prime Minister Rao
inherited a serious economic crisis that forced him to mortgage the na-
tional gold reserves in London to pay for desperately needed imports.^2
Any economic recovery was conditional upon massive aid from multilat-
eral institutions such as the International Monetary Fund (IMF) and the
World Bank. In practical terms, this meant unqualifi ed American sup-
port. It was obvious to Rao that the absence of relations with Israel was
an impediment to a better connection to industrialized countries, espe-
cially the United States.^3 It was therefore not accidental that the decision
to establish relations with Israel was announced on the eve of Rao’s visit
to New York, where he would be meeting with President George H. W.
Bush. Though important, one should not overemphasize the U.S. factor.^4
If the United States was so important, how did India manage to ward off
such pressure since the late 1940s? As the post– cold war trajectory indi-
cates, improvement in Indo- U.S. relations has been possible because
both countries are prepared to abandon their past misgivings and seek
closer ties. In short, Indo- U.S. bonhomie enhances Indo- Israeli relations
and not the other way around.