Just as the British did not create the native/Indian princes, the accession and integration of the princely states into the independent states of India and Pakistan did not cause their rulers to disappear from Indian and Pakistani politics and culture. The most striking example of the long-term impact of princely states is the contested status of Jammu and Kashmir. Domestically, the current militant movement in Kashmir impugns the national identities of India as a secular state and Pakistan as an Islamic state. Materially, it has caused both countries to allocate extensive resources to defence and to several wars and military confrontations that have drastically reduced the funds available for internal development projects. Internationally, it has occasioned concern about the dangers of a nuclear confrontation between India and Pakistan. The British colonial policy of indirect rule imposed and helped to legitimate the rule of a Hindu prince in the Muslim-majority areas of Jammu and Kashmir. But policies of the rulers of Jammu and Kashmir were factors in fostering tensions between Muslim peasants and Hindu landlords,Muslim subjects and Hindu officials. Communal groups in British India, the policies of state and national governments in India and Pakistan, as well as groups indigenous to Jammu and Kashmir are also responsible for the present, difficult situation of this erstwhile princely state.