Friday, October 3, 2008

The Cost of Rising Military Expenditure and the New Asian Emergence!

Military expenditure in the new millennium (2001 – 2006)

Right up to 2005 Japan remained the top military spender in Asia, investing up to 47 Billion.However,China overtook Japan as Asia’s biggest arms spender in 2006 as global military expenditures grew 3.5 percent to US$1.2 trillion, according to a Swedish research institute, the Stockholm International Peace Research Institute(SIPRI).The USA remained the biggest spender spending more than 400Billion.America’s war on Terror since 2001 has drained much of its resources into this expensive affort thus becoming the probable cause of the current economic slowdown.

According to Nobel Prize-winning economist Joseph Stiglitz, the cost of the Iraq war which was 50 to 60 times bigger than the Bush administration predicted was a central cause of the sub-prime banking crisis threatening the world economy, The former World Bank vice-president yesterday said the war had, so far, cost the US something like $US3trillion ($3.3 trillion) compared with the $US50-$US60-billion predicted in 2003.

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