• Financial implications of global conflicts, highlighting how defences spending diverts funds from essential public services.
• Influence of lobbying firms on war policies, showcasing substantial profits for defence contractors.
Wars have ravaged nations, leaving trails of devastation, and have become an exorbitant industry fuelled by the insatiable greed of the military-industrial complex—an unholy alliance of defence contractors, arms manufacturers, and governments.
Take the United States, where defence spending in 2022 alone consumed roughly 3.5% of the GDP, or a staggering $750 billion. Nations embroiled in prolonged conflicts see a significant chunk of their budgets funnelled into defence, siphoning off funds from essential public services and infrastructure. This redirection of resources is a tragic missed opportunity, as those funds could instead be used to alleviate poverty and foster peace. An intricate web connects war, inflation, stock markets, poverty, and the corporations that thrive in the chaos of conflict.
Consider the Iraq War from 2003 to 2011, which drained the U.S. economy of over $2 trillion. This immense expenditure encompassed not only direct military operations but also the interest on the debt accrued to finance the war. Defence contractors like Halliburton and Lockheed Martin reaped substantial profits, their stock prices soaring during the conflict. Meanwhile, millions of Iraqis endured unimaginable suffering, with countless displaced and their country’s infrastructure in ruins.
The Gulf War (1990-1991) triggered a sharp spike in oil prices, igniting inflation rates worldwide. Fast forward to 2022, and the Russia-Ukraine conflict has similarly disrupted energy prices, fuelling inflation across Europe and beyond. Historical data reveals a strong correlation between major conflicts and inflation surges. The Pearson correlation coefficient between oil prices and inflation rates stands at 0.702, underscoring this significant relationship.
Stock markets are acutely sensitive to instability. The outbreak of wars typically sparks market volatility. During the Iraq War, the Dow Jones Industrial Average experienced wild fluctuations, mirroring the war’s economic impact. The 2022 invasion of Ukraine by Russia caused a precipitous drop in global stock markets, with the MSCI World Index plummeting over 10% in the immediate aftermath.
Wars also deepen poverty by diverting resources from essential services to military spending. Countries engaged in prolonged conflicts often face severe economic downturns, mounting debt, and diminished public welfare. The Syrian Civil War, ongoing since 2011, has ravaged the Syrian economy, plunging millions into poverty and sparking a humanitarian crisis.
Geopolitical alliances often have economic underpinnings. Nations form alliances to secure natural resources and strategic advantages. NATO, for instance, not only serves as a collective defence agreement but also facilitates economic cooperation and resource sharing among member states. Economic sanctions, such as those imposed on Iran and Russia, illustrate how economic tools can be wielded to exert political pressure, often crippling economies and leading to inflation, shortages, and instability.
The reality is that financial institutions, corporations, and lobbyists wield significant influence in shaping war policies. Defence contractors and oil companies, through extensive lobbying, steer government policies to ensure ongoing military engagements that bolster their profits. This influence is starkly evident in the substantial military aid provided by the United States to countries like Israel and Ukraine. Despite pressing economic challenges at home, Western nations continue to channel billions into military aid abroad.
A prominent example is the American Israel Public Affairs Committee (AIPAC), whose influence in shaping U.S. foreign policy towards Israel is profound. By lobbying Congress and the executive branch, AIPAC ensures sustained military and financial support for Israel.
This financial aid to Israel and Ukraine often overshadows the socio-economic problems within the donor countries. The vast sums directed towards these nations could be better invested in improving public services, infrastructure, and alleviating poverty domestically. Considering severe economic problems at home, including underfunded public services and deteriorating infrastructure, this money would be more judiciously spent addressing domestic issues.
The UK, for instance, grapples with significant challenges in its public services, from the NHS to education and transportation infrastructure. Despite these urgent needs, the government continues to allocate substantial funds for military aid to Ukraine. Similarly, the U.S. and many European countries are mired in economic slowdowns and social welfare issues. Rising homelessness, escalating healthcare costs, and crumbling infrastructure plague these nations. Yet, the U.S. government persists in providing significant military and financial support to both Israel and Ukraine.
Our health service is collapsing, roads are riddled with potholes, parks and trees are overgrown, and litter pollutes our streets. Bin collections are fewer, police are scarce, and crime is rampant. Securing a GP appointment is increasingly difficult, and schools are crumbling, with children studying in unsafe conditions. Food banks have become essential, feeding hungry children while homelessness and drug addiction spiral. The housing crisis forces many into mold-infested, dangerous homes. The Grenfell Tower tragedy painfully reminded us of that greed kills, yet thousands of buildings with dangerous cladding still put lives at risk. Transport costs are skyrocketing, taxes are climbing, and inflation is out of control. While we are told to fear immigration and terrorism, the stark reality is that billions are being squandered on wars and proxy battles. Instead of using these billions to repair our broken public services, we are funding conflicts abroad, leaving our own people to struggle and suffer.
In a world where priorities are skewed by the interests of a powerful few, it is crucial to re-examine our choices and refocus our resources on building a just, equitable, and peaceful society. It’s time to open our eyes and start addressing these critical issues, rather than merely living and letting live. If the companions of our beloved Prophet Muhammad (peace be upon him) had adopted a passive attitude, we might still be trapped in the ignorance of the Jahiliya period. Let’s take inspiration from their resolve and proactive approach to create a better society. As Prophet Muhammad (peace be upon him) said:
“The best among you are those who bring the greatest benefits to many others”
(Al-Mu’jam Al-Awsat 5787)
Let us strive to uplift our communities by actively engaging and making meaningful contributions in every way we can.
