Economic Warfare

What is War? War is a contest of two or more nations by means of armed forces for the main purpose of conquering the other nation/nations and dictating their own terms.

Definitions Carl Von Clausewitz in his famous book ‘On War’ wrote that “war is an instrument of national policy.” New English Dictionary, “War is a hostile contention by means of armed forces, carried on between nations, states or rulers, or between parties in the same nation or state, the employment of armed forces against a foreign power or against an opposing party in the state.” War is used as a method to achieve one’s own interests. Mao Tse-Tung , “Politics is war without bloodshed while war is politics with bloodshed”

Types of War Conventional war Cold War Guerrilla War Limited War Modern War Total War Psychological war Economic war Information war

“War is not fought only in battlefield but in shops, factories, sea ports, road and rail.”

Economic warfare A war which is fought giving due consideration to the economic factors. A means to attain certain economic advantage over the enemy during peace as well as in war. EW involves attacking enemy’s economic targets during peace and war.

Definition Oxford English Dictionary, “ an economic strategy based on the use of measures (e.g. blockade) of which the primary effect is to weaken the economy of another state.”

Historical Background To obstruct the enemy from utilizing his resources and to mobilize own resources has been an old practice during peace as well as in war. Kautilya : – destroying enemy’s property and seizing his merchant ships. mobilization of money through taxation and donations at the time of war. Adam Smith, Hamilton: - advocated the development of national resources to increase national potential for war. Napoleon : - Continental system

Economic warfare - Aim It aims to capture or control the supply of critical economic resources so that the military can operate at full efficiency or deprive of enemy forces of those resources so that they can not function properly. Sinking of supply ships carrying supplies, raw material and essential war-related items such as food. 1. To ensure own economic growth 2. Disruption of enemy’s economy

Methods of EW Destruction of Industrial Potential of enemy state Black listing Control over funds and property Blockade of trade (including sea trade) Control on country’s export

Conti.. Trade harmony with neutral countries Use of preclusive buying as an alternate Action against smuggling Creating internal problems and encouraging strikes Self sufficiency