India plans to boost its defense spending by 28% next year. While India insists that this simply makes up for the cost of the Kargil conflict in Kashmir last year, Pakistan has greeted the massive increase with alarm. Even the higher budget will amount to 3.32% of the gross domestic product. A recent government inquiry criticized the Research & Analysis Wing (the Indian CIA) for failing to "accurately monitor and report" on the Pakistani troop buildup near Kargil, effectively blaming the RAW for allowing India to become the victim of a surprise attack. --Stephen V Cole