Why did Jaishankar take the name of China and Russia, said – this is the era of weaponized economics, understand guns vs butter model

New Delhi: External Affairs Minister S Jaishankar said at an event recently that the ‘Nehru development model’ essentially gives rise to the ‘Nehru foreign policy’ and ‘we want to improve it abroad.’ This is exactly how efforts are being made to improve the results of this model at the domestic level.
Jaishankar also said that this model and the discourse associated with it has influenced our politics, bureaucracy, certainly the planning system, judiciary, public sector including media and above all education. Do you know why Jaishankar discussed Nehru model in his/her statement? We understand the era of Weaponism Economics that he/she mentioned. This model is also linked to the Guns vs. Butter model. Know this also.

This is why Jaishankar took the name of China and Russia

External Affairs Minister S Jaishankar released the book ‘The Nehru Development Model’ by former NITI Aayog Vice Chairman Arvind Panagariya. In an online address on this occasion, Jaishankar also said that the author says that the choices of former Prime Minister Jawaharlal Nehru took India on a ‘fatalist path’. he/she said that today both Russia and China clearly reject the economic assumptions of that period. he/she did more work in promoting it than anyone else. However, even after this, these beliefs are still seen alive among the influential sections of the country. The reality is that today China is neck deep in debt.

Jaishankar had said about China – past is very complex

External Affairs Minister S Jaishankar recently spoke on India-China relations in the Lok Sabha and Rajya Sabha. he/she said in the Lok Sabha that the past of India-China relations has been very complex. The two countries have a long history of confrontation, encroachment and skirmishes in many areas of their border. This goes back to several other disputes, including Barahoti from 1954, Longju in 1959, Sumdorong Chu from 1986-1995 and Depsang in 2013. Earlier governments in the past have agreed to a number of steps to defuse situations that have arisen at different times, including de-militarized zones, limited non-patrolled zones, transfer or withdrawal of positions, withdrawal of troops from our side. Offers are included.

Understand what weaponization of the economy is

Jaishankar said that today is the era of weaponized economics. Actually, this term refers to the weaponization of the economy. At present, such business shares are being promoted in which nations reduce mutual dependence. This also increases mutual insecurity.

Weaponized Economics: Trying to Change Business Patterns

How can the economic system be reformed to help make countries more secure and economically better off? Weaponized economics is the changing of trade patterns for political or economic gain. By adopting this, pressure is put on the opposing country. For this, measures like economic restrictions or ending business relationships are adopted. This could lead to a cycle of insecurity and insecurity, as countries attempt to reduce their interdependence.

Use of various types of restrictions such as trade

Restricting trade has been used for centuries. However, this approach can often also be used as a foreign policy tool. For example, China reduced trade with Norway after Liu Xiaobo won the Nobel Peace Prize in 2010.

Imposing economic sanctions is also a way

Many times economic sanctions are imposed by the United Nations to stop the nuclear programs of countries like Iran. These can be used as a powerful tool to express resentment towards a country.

Intentionally delaying climate policy

The petroleum industry has also hired economic consultants to delay and undermine climate policy. The weaponization of economics could have disastrous consequences. This could lead to a decline in liberalism and an era of economic nationalism. It can also make countries more vulnerable.

Know what is Guns vs Butter Model

The Guns vs. Butter model is a simple production model in macroeconomics. It shows the relationship between a nation’s investment in defense and civilian goods. The guns versus butter model is commonly used as a simplification of national expenditure as a share of GDP.

What is the meaning of gun and butter?

The guns versus butter model shows the relationship between defense and social expenditure in government spending. In this model, guns mean security related things such as weapons, ships, tanks and soldiers. Whereas, butter means non-security related things like schools, hospitals, parks and roads. According to this model, the country cannot focus too much on any one thing, because these two things are interconnected.

This model is effective in saving the country from armed conflict

According to the Guns vs. Butter model, if a country is to avoid armed conflict, money spent on guns can be spent on butter. According to this model, if there is a war, the production capacity reduces. This creates difficulty in producing social goods. According to this model, politicians make a trade-off between defense and social expenditure in the fiscal budget. According to this model, at the time of elections, governments stay away from military expenditure and focus more on social expenditure.

The use of guns vs butter model started from here

The Guns vs. Butter model was used in the United States during World War I when it began importing the explosive substance nitrate from Chile in 1914. Arms dealers used these nitrates on a large scale. However, this phrase was most commonly used during the era of Nazi Germany. In a speech on January 17, 1936, Hitler’s propaganda minister Joseph Goebbels said: “For all our love of peace, we can do without butter, but not without weapons.” One cannot shoot a bullet with butter. Hermann Goring, another Nazi officer, said in a speech – Guns will make us stronger, butter will only make us fat.

When the US President and the British PM repeated the same thing

US President Lyndon B. Johnson used the phrase to attract national media attention when reporting on the state of national defense and the economy. At the same time, British Prime Minister Margaret Thatcher, in a speech given in the old Kensington Town Hall in 1976, said that the Soviet Union put guns on butter, but we put almost everything on guns.

What was Nehru’s development model, know its meaning

Instead of adopting a socialist economy or a capitalist economy, Nehru made a mixed economy the basis of development. Nehru was actually a socialist. Nehru’s development model in India was a model of economic development through planning. According to Nehru, poverty, inequality and backwardness can be eliminated through planning. Also, social justice and equitable distribution can also be achieved. he/she was actually a supporter of the planning based model of the Soviet Union.

his/her policy had backfired during Nehru’s time itself.

With the Karakoram Tract Agreement signed with Pakistan on March 02, 1963, China captured Raskam and also started claiming the Shaksgam area. On January 23, 1959, Chinese Prime Minister Zhou Enlai, in a letter to the then Indian Prime Minister Jawaharlal Nehru, talked about his/her claim in the Frontiers area of ​​Jammu and Kashmir. In 1953, Chinese forces started infiltrating from the eastern Hunza area. Nehru’s Hindi-Chinese brother-in-law policy had backfired.