Tuesday, July 7, 2009

India to Spend More on Military


India is planning to raise its military budget by 50% to almost $40 billion, making military expenditure 3% of the annual gross domestic product (GDP), the Indian defense minister said.

"Our current defense spending is lower than 2% [of GDP]...and it should be at least 3%," A. K. Antony said at a meeting with top military commanders on Tuesday, without specifying a time-frame. India raised its defense spending in February by 10% to $26.5 billion for the fiscal year 2008-2009, but it still fell below 2% of GDP for the first time in at least a decade.

India's neighbors and long-term rivals, Pakistan and China, allocate around 3.5% and 4.3% of GDP to defense, respectively. The minister said top priority must be given to the modernization of the Indian Armed Forces and half of the defense budget should be allocated for the purchase of new military equipment.

Currently two-thirds of India's budget is allocated for military, paramilitary, police, various security forces and debt servicing. That leaves one-third for everything else, including infrastructure development projects, education, healthcare, poverty alleviation, and various human services. This new arms buildup by India will leave even less for what India needs most: to lift hundreds of millions of its citizens from abject poverty, hunger, squalor and disease.

Such an arms buildup by India is sure to fuel an arms race that South Asians can ill afford with widespread abject poverty, hunger, malnutrition and very low levels of human development.

The human cost of this unfortunate escalation by India will mainly be born by its most vulnerable citizens who will probably lose the few crumbs of bread they are forced to live on now. It will continue the horrible sanitation situation that forces two-thirds of Indians to defecate in the open that spreads disease and kills millions of various diseases each year.

India has failed to use a period of high economic growth to lift tens of millions of people out of poverty, falling far short of China’s record in protecting its population from the ravages of chronic hunger, United Nations officials said on Tuesday. Last year, British Development Minister Alexander contrasted the rapid growth in China with India's economic success - highlighting government figures that showed the number of poor people had dropped in the one-party communist state by 70% since 1990 but had risen in the world's biggest democracy by 5%.

The World Hunger Index of 88 countries published by IFPRI last year ranked India at 66 while Pakistan was slightly better at 61 and Bangladesh slightly worse at 70.

In the context of unprecedented economic growth (9-10 percent annually) and national food security, over 60 percent of Indian children are wasted, stunted, underweight or a combination of the above. As a result, India ranks number 62 along with Bangladesh at 67 in the PHI (Poverty Hunger Index)ranking out of a total of 81 countries. Both nations are included among the low performing countries in progress towards MDG1 (Millennium Development Goals) with countries such as Nepal (number 58), Ethiopia (number 60), or Zimbabwe (number 74).

Pakistan ranks well ahead of India at 45 and it is included in the medium performing countries. PHI is a new composite indicator – the Poverty and Hunger Index (PHI) – developed to measure countries’ performance towards achieving MDG1 on halving poverty and hunger by 2015. The PHI combines all five official MDG1 indicators, including a) the proportion of population living on less than US$ 1/day, b) poverty gap ratio, c) share of the poorest quintile in national income or consumption, d) prevalence of underweight in children under five years of age, and d) the proportion of population undernourished.

The stinging criticism of India’s performance comes only two weeks after the Congress party-led alliance was overwhelmingly voted back into office. Its leaders had campaigned strongly on their achievement of raising India’s economic growth to 9 per cent and boosting rural welfare. With the exception of Kerala, the situation in India is far worse than the Human Development Index suggests. According to economist Amartya Sen, who won the Nobel Prize for his work on hunger, India has fared worse than any other country in the world at preventing recurring hunger.

India might be an emerging economic power, but it is way behind Pakistan, Bangladesh and even Afghanistan in providing basic sanitation facilities, a key reason behind the death of 2.1 million children under five in the country.

Lizette Burgers, chief of water and environment sanitation of the Unicef, recently said India is making progress in providing sanitation but it lags behind most of the other countries in South Asia. A former Indian minister Mr Raghuvansh Prasad Singh told the BBC that more than 65% of India's rural population defecated in the open, along roadsides, railway tracks and fields, generating huge amounts of excrement every day.

Economically resurgent India is witnessing a rapid unfolding of a female genocide in the making across all castes and classes, including the upper caste rich and the educated. The situation is particularly alarming among upper-caste Hindus in some of the urban areas of Punjab, Rajasthan, Haryana, Himachal Pradesh and Madhya Pradesh, specially in parts of Punjab, where there are only 300 girls for every 1,000 boys, according to Laura Turquet, ActionAid's women's rights policy official.

I see hunger and poverty and lack of opportunity as the root cause of most of the ethnic, religious and other forms of violence. The situation is further complicated when nations with the largest number of poor and hungry choose to spend more on military than on fighting poverty, hunger and disease.

In fact, letting millions die of hunger each year, is what Amatya Sen calls "quiet violence", a form of ongoing brutality that claims far more lives than all of the other causes of violence combined.

Neither Pakistan nor India can or should continue their misguided arms race, with India using China as its excuse, and Pakistan citing India's current arms buildup, the largest in its history. In Poverty-Hunger Index(PHI), designed to measure progress toward UN's Millennium Development Goals (MDGs), China, ranked 31, is closest to achieving these goals, followed by laggards such as Pakistan at 45, India at 62, and Bangladesh at 67. And clearly, India, lagging behind both China and Pakistan in terms of basic social indicators of hunger and poverty, is fueling this crazy South Asian arms race. India continues to show a total lack of leadership on this front.

The South Asian rivals need to recognize, in words and in deeds, that their people are their biggest resource, who must be developed and made much more productive to make the nations more competitive and powerful economically, politically and militarily.

Related Links:

Challenges of Indian Democracy

India's Female Genocide

Pakistan Military Business

India-Pakistan Military Balance

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7 Comments:

OpenID pakiterroristan said...

More good news!!!

http://www.forbes.com/feeds/afx/2009/07/15/afx6655761.html

Foreign investment in Pakistan plummets in 2008/09
07.15.09, 04:15 AM EDT



KARACHI, July 15 (Reuters) - Net foreign investment in Pakistan fell by more than half in the 2008/09 fiscal year that ended on June 30, as investors stayed away from the country amid rising security concerns and a weak global economy.

Net foreign investment fell 51 percent from a year earlier to $2.67 billion, the central bank said.

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Yahoo! BuzzOut of total foreign investment, foreign direct investment (FDI) fell 31.2 percent to $3.72 billion, data posted on the State Bank of Pakistan's website (www.sbp.prg.pk) showed.

Foreign portfolio investment saw outflows of $1.05 billion, in sharp contrast with inflows of $2.67 billion in the previous fiscal year. That figure also includes outflows of $544.1 million for a maturing eurobond issued by the country earlier.

'The global economic scenario, as well as the security situation in Pakistan, have resulted in this sharp decline in foreign investment,' said Mohammed Sohail, chief executive of Topline Securities.

'Going forward, FDI is likely to see a further decline, but the private inflows will hopefully improve,' he said.

July 15, 2009 at 8:10 AM  
Blogger Dividend Tree said...

I have been reading your blog for a last few weeks. It is very disappointing that you have chosen to focus your energy on India bashing. You go through all the data and somehow find (or create) some kind of issue with India.

Ironically, its Pakistan that is on the brink of failed state, politically, economically, morally, stature at world forum, etc. And India continues its progress. Yes, there are issues, but then which country does not have it? e.g. your post on male/female ratio, did you consider the effect of size/population, effect of reporting, India has far better measuring and reporting system compared to Pakistan (NWF/Blouchistan- don't tell me you have an efficient system there). Your country's army gets it rear kicked and you telling me governance work?

Instead of focusing your energy on constructive aspects, you have chosen to use your intellect for focusing of negative aspects!!

What a waste of time!

July 17, 2009 at 9:26 PM  
Blogger Hapi said...

hello... hapi blogging... have a nice day! just visiting here....

July 18, 2009 at 10:30 AM  
Anonymous Anonymous said...

Some of the statistics posted are dubious.

For example, it is claimed US$26.5 bn military expenditure by India in a certain year was less than/about 2% of its GDP. That would put India's GDP for that year at over $1,300 bn.

That's nonsense, no Indian governmental, international or other sources suggest such lopsides figures.

The defence expenditure % for China was also dubious.

July 24, 2009 at 3:39 PM  
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July 27, 2009 at 2:00 AM  
Blogger Riaz Haq said...

Here's BBC commentary by Soutik Biswas on India's "rights revolution":

Ensuring the basics in life remains the biggest challenge for India, six decades after independence.

Take food. Some 43% of Indian children younger than five are underweight - far above the global average of 25% or sub-Saharan Africa's 28%. India is a lowly 65th among 84 countries in the Global Hunger Index. Half of the world's hungry people live in India.

So the proposed right to food, entitling a poor family to 25kg of rice or wheat at three rupees (seven cents) a kilogram is good news. The bad news is that identifying the deserving poor is a challenge - there are four different government estimates of the very poor or below poverty line (BPL) people floating around. States may inflate numbers of beneficiaries to corner more federal benefits. Then there is the notoriously leaky public distribution system, from where food is often siphoned off by a triad of low-level bureaucrats, shop owners and middlemen.

Nobody can deny that the right to education - every child aged 6-14 can demand free schooling - is critical: an estimated eight million children in that age group do not attend school in India. India's 61% literacy rate lags behind Kenya's 85%. But critics point to a lack of teachers - India would need more than a million teachers just to implement the right - and say there are simply not enough schools to cope with the increased demand.

Rights don't work miracles. But activists say they are an urgent social intervention to empower the poor in a highly iniquitous society, where it is difficult for the poor to access officials to air their grievances and secure their entitlements. "In a hierarchical society, rights-based movements are a way of moving towards equality," says leading political scientist Mahesh Rangarajan. Also, they put pressure on the state to deliver - the right to information, despite glitches, is making government more accountable.

Studies show that sensitive political and bureaucratic leadership combined with grassroots awareness and an engaged local media can translate rights into reality and improve the lives of the poor. Activists point out that money is not a problem - the economy is doing well, revenues are buoyant, federal health and education outlays have been increased. The government has pledged more than $5bn to send 10 million poor children to school.

The cynicism over rights mainly comes from India's burgeoning educated upper middle class. It is mostly not engaged with public institutions at all - its members rarely serve in the lower ranks of the armed forces, teach in state schools or work for the government. Yes, there are valid concerns about whether the state has the capacity to deliver on rights. Yes, the Indian state continues to focus on maintaining law and order and collecting revenue. Delivering services is not its strength. Rights could actually help it move towards a functioning welfare state. I would like to hear stories from you - and people you may know - who are reaping the benefits of the rights revolution.

April 11, 2010 at 9:14 AM  
Blogger Riaz Haq said...

Here's a report on world's largest exporters and importers of arms:

A new report says China has passed Britain to become the world’s fifth-largest arms exporter.

The report from the Stockholm International Peace Research Institute says Pakistan is the biggest buyer of Chinese arms, accounting for 55 percent of China’s exports.

The report says Chinese weapon exports between 2008 and 2012 rose 162 percent over the previous five-year period.

It said the United States remains the world's top arms exporter, accounting for 30 percent of the market, followed by Russia at 26 percent, Germany at seven percent, France at six percent, and China at five percent.

The world’s top five arms importers were all in Asia. The report said India was the biggest buyer, followed by China, Pakistan, South Korea and Singapore.


http://www.rferl.org/content/china-arms-pakistan/24931314.html

March 17, 2013 at 10:32 PM  

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