‘Behind every great fortune lies a great crime’, so said the French novelist of 18th century, Honore de Balzac
Indeed, massive corruption has been the major foundational basis of prosperity of the first world as robber barons and carpet baggers of this world looted and plundered the third world for centuries. They are still plundering the developing countries and are likely to continue committing the crime for ages to come using what the global economic hegemons call the ‘rules of the game’ set by themselves.
Corruption is not being attempted to be condoned here but one cannot escape the history of wealth creation as such. Here is a glimpse of this history in the words of Shashi Tharoor, the author of the book An Era of Darkness: “At the beginning of eighteenth century, as the British economic historian Angus Maddison has demonstrated, India’s share of the world economy was 23 per cent, as large as all of Europe put together. (It had been 27 per cent in 1700, when Mughal Emperor Aurangzeb’s treasury raked in 100 million pounds sterling in tax revenue alone). By the time British departed India, it had dropped to just over 3 per cent. The reason was simple: India was governed for the benefit of Britain. Britain’s rise for 200 years was financed by its depredations in India.”
And here is how the rich now violate the rules of the game they themselves keep setting via the institutions that they have created like the World Bank, the IMF, the Asian Development Bank, the World Trade Organisation, etc., based on principles of what is called the Washington Consensus:
Recalling the promise, world’s richest countries made on 24 October 1970 through a landmark UN resolution, to give a small percentage of their income annually – just 0.7% – in international aid to poor countries, Chema Vera, Interim Executive Director of Oxfam International estimates that had all donor countries kept their promise they would have donated, over the last 50 years, an extra $5.7 trillion to the recipients.
Since they did not, therefore, by Vera’s logic the rich donor countries owe the world’s poor recipients as much (The world’s poorest people are owed $5.7 trillion, published in World Economic Forum’s Newsletter dated Nov. 3, 2020).
“This is not largesse. It is not charity,” says Vera but a duty and an obligation, “if only in a small way, towards making up for the colonial exploitation of the developing world by wealthy nations.”
Too many rich nations continue to fail to meet the targets they set. Last year, members of the OECD club of rich nations contributed on average just 0.3% of their gross national income (GNI) to aid. In 2019, over a third of that amount ($55 billion) was in fact paid back to wealthy nations in debt repayments by countries in sub-Saharan Africa alone – a harsh reminder of a global economic system rigged in favour of the richest nations and richest people.
Not content with what they have already captured from the developing countries over centuries these rich countries of the first world have established as many as 55 offshore sites to enable their traders as well as their so-called multinational companies to shift their profits to tax havens to continue robbing the developing countries of their legitimate taxes.
Here is the list of off-shore sites the developed world owns: Andorra, Anguilla, Antigua and Aruba, Bahamas, Bahrain, Barbados, Belize, Bermuda, British Virgin, Cayman Islands, Cook Islands, Costa Rica, Cyprus, Djibouti, Dominica, Gibraltar, Grenada, Guernsey, Hong Kong, Ireland, Isle of Man, Jersey, Jordan, Lebanon, Liberia, Liechtenstein, Luxembourg, Macao, Maldives, Malta, Marshall Islands, Mauritius, Micronesia, Monaco, Montserrat, Nauru, Netherlands, Antilles, Niue, Panama, Samoa, San Marino, Seychelles, Singapore, St. Kitts and Nevis, St. Lucia, St. Martin, St. Vincent and the Grenadines, Switzerland, Taiwan, Tonga, Turks and Caicos, Vanuatu.
The US has such dedicated entities in Delaware and Puerto Rico and similar to the US, Germany can be included on lists for its tax secrecy, as per the Financial Secrecy Index.
As well, the rich world over half a century or so has been siphoning off annually even what little the developing countries earn selling cheap their natural endowments, agricultural produce and mining extracts like oil and precious and non-precious metals by offering them in return at exorbitant prices weapons which they do not need.
The Stockholm International Peace Research Institute (SIPRI) estimated military expenditures as of 2018 at $1822 billion. The combined arms-sales of the top 100 largest arms-producing companies and military services companies (excluding China) totaled $420 billion in 2018, according to SIPRI. The five largest exporters in 2014–18 were the United States, Russia, France, Germany and China whilst the five biggest importers were Saudi Arabia, India, Egypt, Australia and Algeria.
The world’s ten biggest arms importing countries in 2018 were according to their ranks were:
- Pakistan – $777m
Imports in 2018 mainly included aircraft, missiles, armoured vehicles, and naval vessels. China continues to be the major supplier of arms to Pakistan.
Arms exports from the US, which was once a major weapons exporter to Pakistan, declined during 2014-18, increasing Pakistan’s dependence on countries such as Turkey, for arms supplies.
JF-17 Thunder fighter aircraft, Al-Khalid tanks, Azmat-class corvettes, C-802 anti-ship missiles, and MaxxPro armoured vehicles were some of the major arms imported by Pakistan during 2014-18.
- Qatar – $816m
Imports increased by more than 22% year-over-year in 2018 due to rearmament efforts and political tensions with neighbouring countries.
The US was responsible for 65% of Qatari arms imports during 2014-18, while the remaining imports came from countries such as Germany, France, China, and Russia.
- The United Arab Emirates (UAE) – $1.1bn
Regional tensions in the Middle East continue to propel the arms imports of the United Arab Emirates (UAE).
The majority of the UAE’s arms imports during 2014-18 were from the US and included products such as THAAD missile defence systems, Hellfire missiles, and MaxxPro armoured personnel carriers (APCs).
The UAE also imported C-295 aircraft, warships, Wing Loong-2 UAVs, CIRIT laser-guided missiles, and Erieye SRSS airborne early warning and control (AEW&C) systems in the last five years.
- South Korea – $1.31bn
South Korea witnessed a more than 23% rise in its arms imports in 2018, compared to 2017. It relies on the US, Germany, and the UK for the majority of its arms supplies. South Korea’s defence procurement programmes are driven by the need for reinforcing its defence capabilities to face any potential aggressive actions of its neighbour North Korea.
South Korea, however, intends to reduce reliance on imports over the next five years through the development of its indigenous manufacturing capabilities.
- Algeria – $1.32bn
Imports in 2018 increased by 37%, compared to 2017. Russia accounted for 66% of the arms imports during 2014-18, followed by China (13%) and Germany (10%).
At 56%, Algeria’s arms imports were the highest in Africa during the period, surpassing other major weapons importers in the region such as Morocco and Nigeria.
- Egypt – $1.48bn
Increased political tensions with neighbouring countries continued to drive Egypt’s arms imports in 2018. Despite a 38.2% decline in the value of imports compared to 2017, Egypt was the second biggest arms importer in the Middle East in 2018.
Egypt was the biggest recipients of French arms during 2014-18 and also one of the major importers of Russian weapons in the Middle East, during the period.
- India – $1.53bn
Russia was the prime supplier of weapons imported by India, while Israel, the US, and France were also the major arms exporters during 2014-18. Major imports by India during the period included Su-30MK fighter jets, T-90S tanks, Mi-8MT/Mi-17 helicopters, MILAN anti-tank missiles, and MTU engines.
- China – $1.56bn
Russia accounted for the majority of Chinese arms imports in 2018, with the major imports being of missile defence systems, and engines for combat aircraft and warships.
- Australia – $1.57bn
Imports in 2018 were mainly driven by major military procurement programmes such as Sea-4000 and Air-6000. The US, Spain, and France have been the major exporters of weapons to Australia during the last five years.
F-35 combat aircraft and P-8A Poseidon anti-submarine warfare (ASW) aircraft received from the US and warships from Spain accounted for more than 80% of Australia’s imports between by the country during the period included missiles, armoured vehicles, helicopters, and radar systems.
- Saudi Arabia – $3.81bn
The US was the major supplier of weapon systems to Saudi Arabia in 2018, followed by the UK and France.
Saudi Arabia imported F-15 fighter aircraft from the US and Eurofighter Typhoon multi-role fighters from the UK between 2014 and 2018. The aircraft were transferred along with cruise missiles and other guided munitions.
Among these 10 countries except for Pakistan all other purchase their weapons with their own well-earned dollars while Pakistan buys them with borrowed resources.
Copyright Business Recorder, 2021
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