{"id":172447,"date":"2022-03-05T20:20:29","date_gmt":"2022-03-05T14:50:29","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=172447"},"modified":"2022-03-07T12:21:47","modified_gmt":"2022-03-07T06:51:47","slug":"weaponised-economies-beyond-the-theatre-of-war-more","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/weaponised-economies-beyond-the-theatre-of-war-more\/","title":{"rendered":"Weaponised economies, beyond the theatre of war & more"},"content":{"rendered":"\n

News:<\/strong> Time and again developed countries have weaponised the global economic system. Every time countries have taken a lesson and changes have taken place.<\/p>\n

25 years ago, IMF forced many east Asian countries<\/strong> facing foreign exchange shortage<\/strong> into conditions that Indonesia faced a near collapse. So, the East Asian countries since then took a lessons and accumulated mountains of foreign currency reserves.<\/p>\n

Same situation was faced by India<\/strong>, when US weaponised wheat supplie<\/strong>s against famine-stricken India in 1960s, as a punishment for criticizing the Vietnam invasion. India took a lesson and pushed ahead with the Green Revolution to become self-reliant in wheat production.<\/p>\n

Thus, countries have a tendency to overlook the peace-time benefits of trade, when they are confronted with blackmail<\/strong>. Russia has been put into same situation after Ukraine invasion, west has weaponised global trade against it. So, there will be repercussions.<\/p>\n

What can be repercussions of weaponizing trade against Russia?<\/strong><\/p>\n

Sanctions may leave Russia weakened<\/strong> and its defence industry possibly unable to maintain its cutting edge. Its sanctions-hit economy could also become an unreliable supplier to India.<\/p>\n

There is a possibility that Russia accepts a Chinese embrace or even form a military axis with Beijing and Islamabad.<\/p>\n

What are the options with India?<\/strong><\/p>\n

Accepting western rules<\/strong>, even if they are selective against non-Western societies. However, with India\u2019s long memory of racism and colonialism and cultural autonomy, it will be difficult to accept rules framed elsewhere.<\/p>\n

Focusing on self-reliance<\/strong>. However, there is a trend that inward-looking economies don\u2019t do well. Also, it won\u2019t be easy due to:<\/p>\n

    \n
  1. Lack of alternative to the dollar-based supply chains.<\/li>\n
  2. India is import-dependent for energy.<\/li>\n
  3. West dominates all major international institutions.<\/li>\n
  4. Even India\u2019s indigenously developed weapons systems require significant import content. For example, Tejas\u2019s engine is made by General Electric, the navy\u2019s ships have engines from Ukraine<\/li>\n<\/ol>\n

    Although, India has developed some indigenous technological solutions like Unified Payments Interface, but it is not that significant.<\/p>\n

    Russia has tried to build a \u201cfortress economy\u201d in response to sanctions since 2014, but remained vulnerable. The alternative of selective integration may work better by creating mutual inter-dependence of countries.<\/p>\n

    Source:<\/strong> This post is created based on the article \u201cWeaponised economies, beyond the theatre of war & more\u201d published in Business Standard on 5th<\/sup> March 2022.<\/p>\n","protected":false},"excerpt":{"rendered":"

    News: Time and again developed countries have weaponised the global economic system. Every time countries have taken a lesson and changes have taken place. 25 years ago, IMF forced many east Asian countries facing foreign exchange shortage into conditions that Indonesia faced a near collapse. So, the East Asian countries since then took a lessons… Continue reading Weaponised economies, beyond the theatre of war & more<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,212],"class_list":["post-172447","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-2","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700773665,"cached_date":1704820926},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/172447","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=172447"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/172447\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=172447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=172447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=172447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}