Rashed Al Romaithi

ECO352
Prof. Bynoe
Sept. 27, 2016
Military vs. Trading Alliance
The most terrible war in history and on the continent finished 70 years ago. And no
matter how fragile it may seem at times, the very duration is already represented by a
phenomenal contrast of modernity from the past historical conditions. Even though there are still
wars in the 21st century, nowadays they are essentially local. It is very arguable that in the future
something even remotely similar to the Second World War will happen. Simply because the
world changed since then. Societies around the world went through the process of globalization.
For example, people in America or Europe who have some capital, some good work, and,
accordingly, a good standard of living can no longer remain indifferent to the fact that there is
crisis somewhere in Asia. Western countries already have an experience of Asian crisis hitting
worldwide. Similarly, any large-scale war will hit the wealth, directly or indirectly. Such
countries like Iran or Russia, political and economic elite of which depends on the world market
in the highest degree, cannot be economically stable without the outside world being in peace. As
the world got advanced, economic wars entered the game. However, the global nature of these
effects is almost the same as from an actual war. Any economic sanctions destroy the economy of
all countries, not only those who are directly involved in the conflict. Of course, this does not
negate the fact that the terms of any war, there is always someone dodgy who will work on it, but
overall, globally, all suffer.
Economists were surprised when American and European experts cheerfully reported a
positive effect of the economic sanctions they had imposed against Russia. Of course, Russia
will suffer the most, and yet everyone is affected, as in any war, which already can not

compensate for their loss of seizure of territories, indemnities, etc. It clearly shows that there is
more military alliances than trading. In case of the sanctions the war is not physical but
economical.
The only strategically correct policy is to create trading alliances, not military. The more
markets will be developed in other countries, the more you have the most opportunities to
develop your business, the more opportunities to find a great job. And I think that normal people
in developed countries are well aware of it. In case of Russia, people do not understand it, people
think that The West wants us to ruin the country. As in the old days, the Communists wanted to
avoid the rich. However, the capitalists do not want poverty. So far this has not changed. And yet,
after the collapse of the inevitably decaying empires happen, and as insufficiently effective
capitalist empire is also divided - that after their remains will be small states, capable of
effectively manage themselves effectively and quickly come to an agreement, to adjust to the
spirit of the time - and then globalization will take another strong step forward, and the era of
economic wars will decline (Tailor, Glick). I think that this process starts now and over the next
twenty or thirty years will go active. And after that there will be a new policy, a new economy,
and to our present time, people will look back with the same fear and misunderstanding, as now
we look back at the time of the European wars of the 19th and 20th centuries.
Today, the war looks not only criminal and unethical, as it always has been, but also
meaningless and economically counterproductive. As before, the world will need many more
years to fully get used to this new reality. The war will continue for a long time on the periphery
of the zone of influence of the great powers, but they (the ones that want to be great in the new
millennium) will become more and more adherents and beneficiaries, spreading the world of
space.

Works Cited
Matthew O. Jackson: Can Trade Prevent War? Stanford Graduate School of Business.
N.p., n.d. Web. 27 Sept. 2016.
Tailor, Alan, and Glick, Reuven; COLLATERAL DAMAGE: TRADE DISRUPTION
AND THE ECONOMIC IMPACT OF WAR National Bureau of Economic Research. July 2015.
Web. 27 Sept. 2016.