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I think it is easiest for everyone to talk about war. No doubt that war is not the best of scenarios for nations of the world. But today the world is really misperceiving the word “WAR”. Even in ancient times the drivers of war were economic benefits and seize on resources but today war itself is turning out to be an economy. It is the economy that is helping few people living richest.

As per Stokholm Peace Research Institute Yearbook 2009 the global war expenditure based on the current pricing of 2008 was $1.46 trillion dollars. This figure is more than the GDPs of many countries across the globe. The interesting point in this regard is that this figure represents annual increase of 4% over 2007 and 45% increase over 1999. The interesting point is that it is 2.4% of world gross domestic products (GDP) or $217 per person of the world (Organization of Global Issues).

People talk a lot about China’s progress and its national economic planning and strategy. I always believe that China is really concerned about their national security but they manage the economy of war better than other countries across the globe. They have issues with Taiwan but it is their national preferences that they never engaged in military ops in Taiwan. This is the main difference between the ego that Western and North American countries have, in comparison with China. China is the only country that manages her economy for the sake of economy that is why they are achieving 11.9% (f) growth in GDP in the time of highest depression in the world. If you see the toppers in global military expenditure so they are U.S.A. (41.5%), China (5.8%), U.K. (4.5%) and Russia (4%). Now if you compare U.S.A. and China upfront so U.S.A. has a GDP of around $ 14 trillion and China has a GDP of around $4.9 trillion. So U.S.A. military expenditure on GDP (ME/GDP) is 4.3% and China is far lesser on 1.7% (ME/GDP). The scenario is worst when U.S.A. GDP is not truly expected to grow more than 3% and China is cruising at 11.9%.

As I said that it is well evident by seeing the statistics from various sources that ECONOMY OF WAR is 2.4% of world's GDP and it is increasing, so now we have to equate it with the efforts of enhancing peace. As per U.N. secretariat the United Nation spend $ 30 billion p.a. for peace keeping missions ($4 per person of the world) but it is really amazing when these countries goes back to their lands they spend $14,600 billions p.a. ($217 per person) on WAR. As per U.N. Global Policy Forum 2009 many of the member countries were unable to pay their full dues and they also had cut their voluntary donations to U.N. It is really surprising that the total arrears of members in budgets reached $1282 million. In this figure U.S.A. alone owned the areas of $857 million i.e. 67%.

I have read via Global Peace Index that $2.4 trillion or 4.4% of global economy (2008) is based on the business of war. It means $1.46 trillion is the military expenditure of the world and $0.94 trillion is the management cost of these expenditures. It is 40% of total Military cost. Now we can easily understand that 40% is the margin without including the margin in $1.46 trillion as profit margin. WoW, don’t you think that it is the best of businesses across the globe?? We are talking about registered figures and we know that undercover it is a big economy, actually far bigger than our imagination. This is the only reason that made majority of Military equipments and services companies had recorded the abnormal positive growth even when world was facing the financial crises.

It is visible by seeing entire figures that WARS are well marketed by the WAR makers. People across the globe talks about religion differences, economic differences, cultural differences, ill will, hatred and prejudices as the reasons for war but in my view the countries who are engaged in war even if someone who is crushing other and the one who is being crushed by other are both involve in the business of WAR. All participants and stakeholders of war initiate war as business and it gives handy returns to those who invest in it. The people like us foolishly get emotional and think that these are the war of causes. But the reality is it is the cause of business that governs war and it is the cause of economy of war that stops it to get ready for another war.

Now if war is the business of regular economy so it is not irrational to say that we can stop wars across the globe. The war that is imposed on us or the war that we imposed on other but the point is to understand is one that national strategy has to be there that ensures management of DEGREE OF WAR LEVERAGE (DWL) on economy. Here the over aggression on war can crash country’s economy. The same is happening with U.S.A. and due to low DWL China is getting pace in economy. Countries like Pakistan and India have to think this point more than any other nation of the world. Our Military and Economic leadership has to sit and decide on Degree of War Leverage that we can work for ensuring the pace of our national growth and development. Here it is very important that Pakistan has to focus more of spending on Intelligence ops & diplomatic missions across the globe that are lesser costly than war and we can achieve the same objectives that the war served. We need to understand that this undue aggression is not the wisdom. We need to strike on the right time and when it is least costly.

The reality is not hidden. War is making few people the richest and we involve very emotional as a common man in WAR causes. It is very easy to attack any other country but it is the hardest to cover the cost of war in both monetary and political sides. If any nation have a passion to win countries so first of all they have to be six times bigger than cost of war even then if you can save one so you must have seven that is always better to ensure existence of your own.


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Mr. Omer

Mr. Omer [1982 born] started  his professional career as a commercial / investment banker after achieving Gold Medal in Finance at master level from University of Karachi in 2006.

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