On April 24, 2023, the Stockholm International Peace Research Institute (SIPRI) announced in a press release that global military expenditure in 2022 had reached a new record high of $2.24 trillion. SIPRI, an independent international organization focused on researching issues related to international security, including military buildup, weaponry, conflicts, etc. reported that NATO members accounted for $1.232 trillion of this total, with the United States alone spending $877 billion. China’s estimated military spending was $292 billion, and Russia’s was $86.4 billion. In addition, several other countries, such as Japan, Australia, India, and Saudi Arabia significantly increased their military spending in 2022.
So, an arms race is picking up. Why is it happening? Of course, the immediate answer will be the Russian invasion of Ukraine. But there’s more. It’s also the West’s perceived Chinese threat. The G7 Hiroshima Summit held on May 19-21, 2023 issued a 40-page communique where it mentions China 23 times. In para 51 of the communique, the G7 leaders declare “Our policy approaches are not designed to harm China nor do we seek to thwart China’s economic progress and development.” Why do they need to say that? Doesn’t it sound like the denial of a guilty mind?
The ideological differences between the West and the Communist world led to an undeclared war on each other since the early twentieth century in the aftermath of the Russian Revolution. It intensified with the expansion of communism in Asia and other parts of the world. Both sides strived to promote their economic and political systems, as well as their values and philosophies while trying to stop the other side from doing the same.
The economic and political systems of the West and the Communist world were grossly contrasted by multi-party democracy, the market economy, and free trade in the West vis a vis communist party dictatorship, a centrally planned economy – barring private investment, and restricted foreign trade and investment in the communist world. But things have changed a lot over the years.
In the 1990s, Russia introduced market-oriented reforms. Private investments became allowed and entrepreneurship was encouraged. Although partial state ownership still exists in several business enterprises, almost all the State-Owned Enterprises of the Soviet era were privatized. Restrictions on foreign investments were lifted and international trade was liberalized. Russia became a member of the IMF and World Bank in 1992. And it became a member of WTO in 2011 after 18 years of negotiations. Russia is no more a centrally planned economy. It can be termed a market-oriented mixed economy. Politically, Russia has become a multiparty democracy
China also began to liberalize its economy in 1978 under the leadership of Deng Xiaoping. It has now become a mixed economy with both private and public sectors. China is a member of the World Bank, IMF, and WTO. Politically, however, China is not as reformed as Russia. Although there are eight political parties in China, it’s not a multiparty democracy rather it’s a “system of multiparty cooperation and political consultation under the leadership of the Communist Party of China” as mentioned in the constitution of the country. Anyway, a single political system may not be suitable for every country because of the differences in history, tradition, culture, and the reality on the ground.
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This article was published in the Daily Sun on May 24, 2023. Please read the full article here or here.