Amidst the increasing geopolitical tensions and wars in the world, an economic scenario has emerged which has sparked a new debate on the size and balance of power of the global economy. According to a recent analysis, the increasing military expenditure of various countries and economic activities related to war have together created a ‘superpower economy’ worth about 35 trillion dollars. This figure is so big that it is said to be more than the total economy of India and Britain.
Experts say ongoing conflicts around the world, especially Iran-related tensions in the Middle East, have given unprecedented momentum to the defense industry and military technology businesses. Investment has increased rapidly in arms manufacturing, purchase of defense equipment, military research and security services. Taken together, all these activities create a vast economic structure, which many analysts refer to as the “war economy” or “military industrial complex.”
According to the report, the business related to defense and security is continuously growing globally. Many countries have massively increased their military budgets. America, China, Russia and European countries as well as many countries in the Middle East are also rapidly increasing their defense expenditure. A large part of this increasing investment is going to arms manufacturing companies, defense technology companies and private security companies.
An assessment made on the basis of this increasing defense expenditure states that if military and war-related economic activities around the world are added together, then its total cost reaches about 35 trillion dollars. This figure is bigger than the economy of many big countries. In comparison, India’s economy is around $3.7 trillion and Britain’s economy is around $3.3 trillion. In this way, the combined economy of both the countries is also considered to be much smaller than this ‘war economy’.
Even though war and tension create serious crises from the humanitarian point of view, it becomes a huge economic opportunity for the industries related to it. The economic strength of the region is continuously increasing due to the rise in shares of defense companies, increasing demand for weapons and development of new military technologies.
However, many economists also consider this trend worrying. He says that if so much economic power is being spent on war and weapons, it means that not much investment is being made in areas like education, health and social development. This may also increase global inequality.
Global conflicts and rising defense budgets have given rise to a massive economic powerhouse that many analysts are calling a $35 trillion ‘superpower economy’. This situation is not only changing the economic structure of the world, but also shows that in the modern era, war has become not only a matter of military power but also a part of a larger economic system.
