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Tuesday 1 June 2021

The inseparable twins: national security and economic prosperity

 Nobody ever attempted to separate Siamese Twins; same applies to national security & economic prosperity. A fundamental precept on geoeconomics is a sovereign country cannot condone any outside attempt to compromise on its national security in exchange of economic incentives or in most cases trade wars.

While survival is the prime instinct, growth and accumulation of wealth within a country by resorting to policy measures that impact domestic production and the aggregation of export surplus is an absolute must. This forms the backbone of national security along with the other two verticals: political stability and military capability.

When faced with threats over national security from internal or external quarters, any country worthy of its salt, would spring back to action by mounting counter offensive. But countries do not want to be seen by others as weak and before any such eventuality actually takes place they would have mechanism to decode the intention of opponents and are ready for any overt or covert operations.

Put it plainly, every country follows the time tested theorem of: being ready to attack is the best way to maintain defence. The US- China trade spat although originated as an administrative matter from US authorities to balance trade between the two countries slowly and steadily transformed into a major conflagration. The issue got conflated to the extent that the US brought in extraneous matters such as human rights within China as an essential feature in trade negotiation.

The question here is what purpose is served by bringing extraneous matters into the table. As bargaining chip human rights means nothing for both countries except as a measure of aberration in bipartite consultation. What possibly be done is to change the narrative to enhance mutual economic prosperity and national security. A trade-off on this page is indeed essential to bring about a settlement in trade dispute.

Of course, ban on Huawei opened a can of worms. One such worm is the lack of readiness by US in introducing 5G into American technology whereas even 4G is not fully rolled out in all States of the US. Therefore, Trump’s Sino Mania must not be allowed to fester the wounds in the Biden administration too. This is important because at the end of the day, what matters is geoeconomics that can ensure economic security to all parties concerned.

US now faces the bitter reality of an equally powerful challenger who has arisen in the horizon in the form of Chinese Dragon. Instead of taking moral high ground over human rights and lofty grandstanding of “rule based international order” US must set into motion the noble idea of understanding the mind of China in her desire to protect her geoeconomics security.

 

Cheers! 

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist

 


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