Report on Impact of Global Economic Crisis on Security

Contradictory Arguments on the Issue

The Global Economic Crisis is considered as the gravest issue in world economy since the great depression. It is perceived as a situation in which economies of countries come across a major downturn which results in declining GDPs, depreciation of liquidity and a greater disturbance in prices due to inflation and deflation. This effect is going on in a global scenario depicted by events in many countries. (McKibbin & Stoeckel, 2009) How this issue connects to security is an aspect to be observed by all countries.
The global economic crisis influences the factor of security of countries through the impact on GDP. As the GDPs of countries decline, so does the investment on security. In the countries which do not face declining GDPs, face similar problems by having to reduce government expenditure to avoid credit defaults which in turn affect the defense expenditure. In the post-cold war scenario, the crisis impacts securities related to both types of countries: the ones affiliated to alliances and independent countries. At a united global security, NATO also faces the consequences of the crisis by receiving reduced funding. (Constantinescu, 2011)
Reflecting on the data published by the European Defense Agency, out of the 26 existing members, 16 have reduced their funding. This directly impacts the expenditure on equipment procurement and research. Observing the other effects the crisis, an economic downturn causes low economic activity which gives rise to unemployment. This raises a serious national security concern for a country. A general decrease in the wage level also gives rise to grave social issues causing security concerns at a national and state level. This influences the expenditure on education expenses which means that a minor portion of the population might not go through the education system leaving them prone to elements which raise threats. (Crumley & Karon, 2009)
Even after disregarding the issues of internal national security, there are elements of terrorism arising on a worldwide scale. Acts of terrorism impact many countries but they require resources in the defense department to fend off terrorists and to increase security for protection to terrorist acts. Due to a worldwide economic crisis and decrease in investment in defense (in both areas of weapons procurement and R&D), countries face lack of firepower to resist the terrorist forces. The decrease in defense funding was considered as a practical step after the end of a cold war situation which led to nuclear stockpiling but all countries now need to form an effective shield against acts of terrorism. If acts of terrorism become successful, the affected nations become liable to invest for rehabilitation. (Braddon, 2009) International organized crime poses a threat to multiple nations through criminal penetration of global energy markets, weapons smuggling and corruption of military officials. This requires countries to view the issue not as a threat to national security but as a seamless threat which needs to be controlled and removed.
The earlier increased investment insecurity also provided employment, through construction of military infrastructure, maintenance of army vehicles, and recruitment in the military. Due to the crisis, it has been negatively influenced and new negative effects have come to light bringing a new perspective of the global economic crisis. (Zakheim, 2009) In Pakistan, a problem of dealing with terrorist forces has arose due to the decreased availability of funds for defense. Even the recent actions of the terrorist group ISIS raises a concern on the front of terrorist actions which can be curbed by defense resources in countries as they cause a threat to multiple countries. (Nanto, 2009)
The global economic crisis causes a greater divide between the rich and poor segments of society which cause an increase to people in general being dissatisfied with the economic conditions of the country. This factor supports the idea of people moving towards anti-social elements to get a fair amount of pay like corruption and other evils of society like extremist movements and rebellions through riots and other activities leading to chaos and a breach to national security. This is a problem caused by long term effects but as the world economic crisis is a long term event, taking steps towards these concerns is very important for every country. (Crumley & Karon, 2009)
The implications of threat to national and international security caused by the global economic crisis are wide and profound. The global economic crisis and its repercussions expand to all the countries through various means and cause threats to multiple nations mainly due to decrease in the defense funding for the individual nations as well as the funding provided to organizations like NATO and European Defense Agency which serve to protect multiple nations.
Bibliography
Braddon, D. (2009). World Financial Crisis: What it means for security. Retrieved from Nato Review: http://www.nato.int/docu/Review/2009/FinancialCrisis/Defence-Budget-Financial-Crisis/EN/index.htm
Constantinescu, M. (2011). DEFENSE AND SECURITY EFFECTS OF THE ECONOMIC CRISIS. Journal of Defense Resources Management, 143-148.
Crumley, B., & Karon, T. (2009, Feb 25). Is the Economic Crisis a Security Threat Too? Retrieved from content.time.com: http://content.time.com/time/world/article/0,8599,1881492,00.html
McKibbin, W. J., & Stoeckel, A. (2009, November). The Global Financial Crisis: Causes and Consequences. WORKING PAPERS IN INTERNATIONAL ECONOMICS. The Lowy Institute for International Policy.
Nanto, D. K. (2009). The Global Financial Crisis: Analysis and Policy Implications. Congressional Research Service.
Zakheim, D. S. (2009, March). Security Challenges Arising from the Global Economic Crisis. Retrieved from Forign Policy Research Institute: http://www.fpri.org/articles/2009/03/security-challenges-arising-global-economic-crisis

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Posted on

March 7, 2018

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