Economic Power vs. Military Might
By Dr Arvind Kumar
At the outset of the Post-Cold War, many experts proclaimed that “geo-economics” would replace geopolitics. The economic power was expected to become the key to success in world politics, a change that many people thought would usher in a world dominated by Japan and Germany. After over two decades of the end of the Cold War, the rise in China’s share of world output is interpreted by some as signifying a fundamental shift in the balance of global power, but without considering military power. Military power, which some call the ultimate form of power in world politics, requires a thriving economy; but whether economic or military resources produce more power in today’s world depends on the context. Many crucial issues, such as financial stability or climate change, simply are not amenable to military force.
According to Joseph S. Nye, judging whether economic interdependence produces power requires looking at the balance of asymmetries. In this case, it resembles a “balance of financial terror,” analogous to the Cold War military interdependence in which the U.S. and the Soviet Union each had the potential to destroy the other in a nuclear exchange. Economic resources are increasingly important in this century, but it would be a mistake to write off the role of military power. In 21st century, military power will not have the same utility for states that it had in the 19th and 20th centuries, but it will remain a crucial component of power in world politics.
