Page 173 - Abhivruddhi

Military expenses beyond its ideal level are not only unproductive but
could be a feature that causes a decline in peacefulness. The resources that
are utilized to build a larger military can be used for other developmental
purposes of the nation. Here, we observe that the largest change in the
composition of costs is in the domain of military expenditure. The domain
of militarisation is considered while calculating the Global Peace Index.
Hence, military expenditure can be directly related to peace.
The post-cold war era was characterized by the spread of globalization
which has led to growth and economic prosperity. Nevertheless, the
growth has been unequal in the developing and developed countries
forming a ‘prosperity gap’. Poor economic performance has led to low
peacefulness and hence political instability . Due to the threat that world
posed during the Cold war and particularly during the Cuban missile
crisis, countries were forced to think upon and adopt a different kind of
internationalism where they cooperated, instead of frightening each other
with nuclear tactics. Hence as an alternative to going to war with each
other, countries traded with each other. This is the reason globalization
flourished. International trade organizations were formed, alliances made
and treaties signed. Today, we can see populism and nationalism growing
amongst the nations of the world as a reaction to the globalization. This
too has contributed to changing the face of international politics and
many of the political economies. This, in turn, affects the factors causing
armed conflicts.
Any findings or literature on war finance/ economic costs of violence
have implications for the design of peace agreements and so does this
paper. The primary purpose of any war-related study is to guide and
improve the existing policies and peace agreements to achieve sustainable
peace. In the current changing times where the factors affecting the world
economy are interrelated, the relationship between the conflict and
economic costs must be analysed. For only with the help of scrutiny and
analysis of all the factors relating to conflict, a solution for global peace-if,
not a full one, then a partial one- can be devised.
Reserve Bank of India (RBI) has projected a GDP growth of 7.2 per
cent for the current fiscal ending March 2023.Ukrain and Russia conflict
has seen deep impact on economies if India. First, the large current
account deficit that the Indian economy had incurred over many years.
Second, the decrease in Foreign Direct Investment (FDI) due to the flight
of investors into safer havens like the United States because of the ongoing
war in Ukraine. In the long run, India should reduce its reliance on fossil

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