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All of South Asia spending less of defence except India.

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    All of South Asia spending less of defence except India.

    In a report from the London-based International Institute for Strategic Studies (IISS) it states that sinec Kargil India has increased its defence spending by 10% while Pakistan has cut it by 13% in real terms. Even the like of Nepal and Sri Lanka have cut their defence spending. India is the only South Asian country where defence spending has risen to astronomical levels - so who is fuelling the arms war in South Asia in pusuit of its goal to be the bully boy of the region?

    http://news.bbc.co.uk/hi/english/wor...000/980113.stm

    South Asia spends more on defence

    India boosted its defence spending by 20% following Kargil war

    By South Asia analyst Solmaz Dabiri
    The international arms trade saw a general decline in 1999, but the overall defence spending in South Asia went up in real terms by 3.1%.

    Defence spending
    10% rise in India
    13% drop in Pakistan
    10% drop in Sri Lanka
    20% drop in Nepal

    The International Institute for Strategic Studies (IISS) says in its annual report that India is the big spender in the region, with an increase of more than 10% in its military spending to $13.9bn.

    Pressure on spending included the Kargil conflict with Pakistan last year.

    The conflict exposed the country's lack of advanced military technology, though observers believe that the additional funds will be mainly spent on the costly deployment of the army in Kashmir rather than on the much-needed modernisation of the country's ageing weapon systems.


    IISS: Pakistan has improved its missile capabilities

    The report says the relations between the two neighbours showed no sign of improvement in the past year, but notes that there were few major incidents along the Indo-Pakistani border in Kashmir.

    The London-based IISS also says that despite persistent concerns about an arms race, the nuclear capabilities of India and Pakistan were not much altered during the current year.

    While Pakistan's missile capabilities have advanced, with the 2,400 km-range Shaheen 2 ready for flight-testing, says the report, its military spending dropped in real terms by 13% in 1999.

    Hit by depreciation

    This means that budget allocations have increased in terms of national currency, but since Pakistan imports nearly all its major military hardware, the depreciation of its currency has hit it hard.

    Sri Lankan defence spending has been hard hit by depreciation

    Sri Lanka seems to have suffered the same fate with a fall of 10% in its military expenditure in real terms.

    Nepal's defence budget too was affected by the depreciation factor. The country spent $51m on defence in 1999 compared with $65m in 1998.

    Bangladesh, which is concerned by the military build-up of its neighbours, has decided to upgrade its ageing fleet of combat aircraft and bought nine Mig-29s from Russia at a cost of more than $100m.





    #2
    >>>India has increased its defence spending by 10% while Pakistan has cut it by 13% in real terms.<<<<

    Malik, could you please explain what is the difference between a “regular decrease” and “decrease in real terms”. Thanks.

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      #3
      Malik,
      India has a large economy so the defence spending will look large compared to smaller nations, but try comparing the percentage of defence spending with respect to GDP and you might be surprised at the results. Pakistan spends way more than India as a percentage !!

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        #4
        You are using that terminology not me - so you explain it?

        In real terms (taking into account inflation and other economic factors) India's defence budget has increased, while every it has decreased for other South Asian countries like Pakistan.

        India's defence budget has increased astronomically and that is fact - not just confirmed by nthis one artcle but other sources.

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          #5
          Malik,

          >>>You are using that terminology not me - so you explain it?<<<

          No. You quoted the article, and here is once again what you wrote:

          “In a report from the London-based International Institute for Strategic Studies (IISS) it states that sinec Kargil India has increased its defence spending by 10% while Pakistan has cut it by 13% in real terms. “

          “real terms”….

          What is that “real terms”. You explanation is still unclear, what economic factors need to be taken into account for an increase to be in “real terms”. Give it one more shot. Thanks.

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            #6
            Read again what I said about real terms buddy - inflation? currency fluctuations?

            Why don't you give us your explanation mr "economist" ?

            BK - India is spending 14 billion dollars on defence and Pakistan is spending around 3 billion dollars... draw your won comparisons?


            [This message has been edited by Malik73 (edited October 20, 2000).]

            Comment


              #7
              Malik, are you saying that “real terms” only takes Currency Fluctuation and Inflation into account? May be I should go back to school.

              Comment


                #8
                Yes maybe you should ?

                Or maybe you should be a mature adult and explain to us the full meaning if you are in fact an "economist" ?

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                  #9
                  Malik, Mature adults don’t say things they don’t know the meanings of.

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                    #10
                    I know the meaning of it - you don't hence you can't give ONE single explanation for it?

                    Anyway, you are 1) Wanting to divert from the subject to avoid answering the wider question or 2) angling for a fight which I'm afraid I will not give you the pleasure of - if you are bored then well...?


                    Maybe now you can go back to the wider argument the articel makes i.e. Increased defence spending in India compared to EVERY other country in South Asia?


                    P.S. I still remember very well the outright LIES you told about "your buddy" Professor Ed Said some time ago re Israel? -THAT WAS BEAUTIFUL MATURITY YOU SHOWED?




                    [This message has been edited by Malik73 (edited October 20, 2000).]

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                      #11
                      Malik,
                      India's defence spending is 2.4-2.7% of its gross GDP (after the 28% hike). This is still down from around 3.5% more than 10 years back. Pakistan during Zia's time had an unbelievable defence spending of around 7-8% of GDP, but these days its down to around 5% which is still considerably higher than India's. Now if you just consider plain dollar terms then obviously India's speding will be more as we have a bigger economy. This is all I wanted to say. I am not even saying that one is bad and the other is not. Every country decides on how much security it needs. Given the fact that countries like China spends way more than India does and given past experiences I think India's defence spending is abysimally low and should be increased even more. And if any of our neighbors are "concerned" about the consequences then thats just too bad -- deal with it !!

                      [This message has been edited by BombayKid (edited October 20, 2000).]

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                        #12
                        Yeah Man.. you must really dream about all the lies I have told you. But I will make it easy on you this time. The definition you will read in econ 101 is not the same when you talk to people who have spent seamstress on learning what “real terms” means. For your babyish purposes your definition is fine. Now go back to the topic and explain why it bothers you if India is spending more than Pakistan (in non-real terms). Do an indepth analysis to compare the needs of both and see who is spending more than it should.

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                          #13
                          BK - since Zia's time defence spending as a proportion of GDP has continued to decline... I think its around 3.7% now. No doubt India's economy is far bigger than Pakistan - that is fact but are India's defence requirements bigger in proportion to Pakistan's?


                          P.S. NYA - still no explanation on "real terms"? Instead of mentionning certain sources why don't you give us YOUR explanation No lies please - I know you

                          Comment


                            #14
                            Malik, even if I told you, you wouldn’t understand.

                            Comment


                              #15
                              Still don't know...I'll let you off then


                              P.S. Don't pull another "my friend Ed Said" please...

                              [This message has been edited by Malik73 (edited October 20, 2000).]

                              Comment

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