Economic Highlights
New Delhi, 7 March 2022
US Arms’ Lobby
SALES RIP SOUTH ASIA
By Shivaji Sarkar
The Ukraine war has exposed India to several problems
and increased the sale of billions of dollar arms through an atmosphere of
jingoism across the world and particularly in the subcontinent. It is critical
for India to have its support base wider and watchful over western sanctions
against Russia and protect its economy plunging into a slowdown of 5.4 per cent
growth.
India has been cautious in abstaining in the
UN Security Council and now Prime Minister Narendra Modi’s call at the
Quadrilateral Security dialogue or Quad virtual summit for a dialogue to
resolve the issue is appropriate to end aggression through intense dialogues
and heightened diplomacy particularly as the ‘mighty’ West is seen crumbling
and remains a curious spectator. It also reflects that India despite NAM not
being there adheres to its principles for peace in Indian Ocean and Pacific.
The present situation is apparently the
creation of an arms’ lobby, which seeks to increase arms, counter-arm-cyber
gadget sales post-pandemic. In the process the Indian subcontinent is emerging
as the US, Russia and China weapon deal hub.
India is hit by the Ukraine crisis not only
for the rising fuel prices but also import of sunflower and other edible oils,
tea exports and possible restrictions on shipping that could impact exports and
its production. But the rising arms’ race despite a thaw in nuclear contest
poses a multi-pronged threat in the region.
The prolonged unsuccessful Afghanistan and
West Asian war has drained the US economy, posing problem for the world’s
largest weapon industry. The economic problems and its suffering citizens
pressurise US President Joe Biden to remain subdued against the blatant Russian
invasion of Ukraine. A generation of the US people saw miseries rising; arms’
lobby profits soaring, economy draining and consequently creating an unstable
world costing it $8 trillion in wars in Afghanistan, Iraq, Syria and Pakistan,
according to Brown University. It also caused nine lakh deaths and 21 million
displaced, swarming the European countries.
Since 2001, the US army lost 2,442 troops, had 20,666 wounded in
Afghanistan alone, according to the Defense Department. It is estimated that
over 3,800 U.S. private security contractors have been killed. The nuclear or
chemical arsenals propaganda against Saddam Hussein and now Iran has continued
with the uncertainties that affect the Indian subcontinent, euphemistically
given the name of South Asia by the Pentagon, the most.
The arms’ lobby is keen that the situation in
the subcontinent remains fluid so that it could increase its sales. It keeps
Pakistan in a state of flux because of the US policy of not allowing it to have
friendly relations with India and carefully working out the collapse of SAARC –
South Asia Association of Regional Cooperation. The perpetual situation of fear
helps the US and its allies sell arms, fighter aircraft and other military
arsenal to both India and Pakistan through morphed assessments of security
situations and pressurised military build-up.
Interestingly enough, the 20 largest
US arms’ producers and military services companies, including Lockheed and Boeing,
report $5.436 billion profits for several trillion dollar arms’ sales since
2001. As sales to other countries dip, these increase in the Indian
subcontinent. The region is becoming an arms’ bazaar.
Pakistan finance ministry says since the 2001
US onslaught on terror, it spent $5.4 billion on arms purchase from the US. The
Jang and Geo TV Group study shows that the US doled out $33 billion
since 2001 for curbing terrorism, ‘health and education’. Since 1947, Pakistan
received $70 billion from the US. Pakistan has Rs 11.8 trillion debts. The US
funding apparently takes care of its revenue.
The US arms’ sales to India increase to $3.4
billion in 2020 from $6.2 million at a time when sale of US weapons dip to
$50.8 billion from $55.7 billion. The major countries that cut arms purchases
include Saudi Arabia, Belgium, Iraq, South Korea and Afghanistan. But the US
sales to strategic regions such as Taiwan and Poland rise. Poland gets arms
worth $4.5 billion up from $12.4 million and Taiwan $11.8 billion up from $8.76
million, to keep China and Russia at bay according to Defense Security
Cooperation Agency (DSCA). The UAE, surprisingly, has increased its arms
purchases to $3.6 billion from $1.1 billion.
Even Russia since 2014, has been increasing
its ties with Pakistan and in 2021 pledges Mi-35 assault helicopters and
anti-tank systems. It has also granted $1 billion arms’ loans to Bangladesh and
agrees to supply arms to Sri Lanka as well.
Interestingly, Indian reliance on Russia is
declining despite its large imports. The Stockholm International Peace Research
Institute (SIPRI) states that 49.4 per cent of Indian arms’ imports between
2016 and 2020 were from Russia, 0.5 per cent from Ukraine. Between 1996 and
2016, Russia supplied 70 per cent of the arms.
Bangladesh has been buying
more arms from the US with purchases touching $110 million since 2009,
including plans to Apaches and missiles. It also buys military equipment,
including naval armaments, worth $ 2.59 billion from China. The Chinese bid to
increase influence in Nepal is a serious concern for India. Sri Lanka is also
emerging as a hub, with the US wooing it for a military cooperation deal and
privileges for visiting US troops. China in April 2021 vowed to enhance
“pragmatic cooperation” in the military and other sectors.
Even as Ukraine war
intensifies, the concern of the Indian subcontinent seeing the arms’ race
should raise eyebrows. Though no major conflict has been seen in the region
since the Kargil conflict in 1998, and India has a 2003 ceasefire treaty with
Pakistan, the larger arms acquisition in the region will hopefully not change
the equilibrium.
During the past five years,
arms’ sellers are wooing all countries in the region to buy more sophisticated
weaponries and security gadgets. India being sucked into the race itself can
divert its resources. The new diplomatic move by Modi can put a check on it
with a new ‘Panchsheel’ to create an amicable atmosphere in the region
with an overall protective umbrella for ensuring growth and rise in the quality
of life in the region and the Pacific. ---INFA
(Copyright,
India News & Feature Alliance)
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