1. Economic Warfare

2. 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.

3. 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”

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

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

6. 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.

7. 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.”

8. 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

9. 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

10. 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

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