logo
‘America's attitude to Britain was ruthless as it became global hegemon — China's ‘military-civil fusion' mirrors the US now'

‘America's attitude to Britain was ruthless as it became global hegemon — China's ‘military-civil fusion' mirrors the US now'

Time of Indiaa day ago
Katherine C. Epstein is Associate Professor of History at Rutgers University-Camden. Speaking to Srijana Mitra Das , she outlines, on America's Independence Day, the rise of the US '
military-industrial complex
' — and its implications:
What is the core of your research?
I focus on two main issues. The first is how the two most powerful, liberal societies of the modern era — Great Britain and the United States — sought to acquire the most cutting-edge secret naval technology. Upto World War I, naval technology was the most advanced on Earth — air power was in its infancy and nuclear weapons hadn't been invented. Naval procurement presented difficult challenges though — one was the tension between the government and private sector over the control of intellectual property rights (IPRs), patents and advanced new weapons which, owing to their growing sophistication, couldn't be procured by traditional methods like in-house building in public factories. As such technology grew more complex, governments began investing in private sector research and development. This raised questions about who owned the IPRs — the contractor doing the work or the government giving subsidies? Also, these weapons were so secret, governments could assume national powers over them, forbidding exports, etc. I look at the tension here between classical liberal norms of property rights and national security interests.
I also study the hegemonic transition from the Pax Britannica to the Pax Americana — this change, where the US became global
hegemon
over Britain, was much more contested and rivalrous than often thought. Considerable evidence shows Britain was quite unhappy — and the US, quite ruthless — about the American pursuit of power at Britain's expense. I argue the US behaviour towards Britain then anticipated Chinese behaviour towards the United States today. This is reflected in US tech imports, through pursuit and theft, which China has apparently done, and in terms of US efforts to build a navy, financial infrastructure, global telecom, etc., that rivalled Britain in much the same way China has been doing now.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Bank Owned Properties For Sale In Tanggulangin (Prices May Surprise You)
Foreclosed Homes | Search ads
Search Now
Undo
When exactly did the 'military-industrial complex' emerge — and is this a purely American entity or a multinational force?
For the US, the canonical description of the 'military-industrial complex' comes from President Dwight D. Eisenhower's 1961 address — Eisenhower warned this system threatened many American liberties. He defined it as the conjunction of a large military establishment with a permanent arms industry. There were huge changes in military production with World War II and the early Cold War. However, drawing from Benjamin Cooling's work, my research finds the first 'military-industrial complex' in America was naval and emerged in the late 19th century, not as a response to any one war but driven by a set of forces — these included the industrialisation of warfare and technology, geopolitical rivalries between the great powers like the scramble for Africa, the starting of globalisation and so on.
William H. McNeill's book 'The Pursuit of Power' further traces the first military-industrial complex to 1880s Britain, emerging in response to a set of global forces that caused a naval buildup in peacetime. This isn't a uniquely American phenomenon — it exists worldwide, from South America to Japan, Russia, France, Germany, etc. China's 'military-civil fusion' has several parallels with the US military-industrial complex and vice-versa. Also, although the military-industrial complex looks like a well-oiled machine from outside — a hugely profitable global ring of arms manufacturers, etc. — inside, there are large tensions between militaries and contractors, the first, often a terrible customer who sees the second as profiteers.
Live Events
Is there any one emerging technology which could completely redefine national security now?
My sense is that war will always remain a human phenomenon and we can be sceptical of the ability of any technology to transform warfare. Of course, torpedoes, airplanes and nuclear weapons did change warfare — today, semiconductors and artificial intelligence could do this. However, I retain some reservations about moves like restricting the export of semiconductors to China — we need to ask if this could have been relevant in a lack of smart weapons and the proliferation of dumb weapons which cause huge civilian casualties.
With
AI
, from a national security view of threats posed, this technology makes populations stupider by undermining critical thinking. The American education system is in a dreadful state and AI's role in stunting intellectual development is a huge threat for a nation that needs educated and aware citizens.
Further, AI will only deepen the trend of the growing insulation of the American people from the violence done in their names — this has increased over the 20th century, reflected in fiscal terms and how the US has resorted to borrowing to pay for its wars rather than taxation, hiding conflict's true financial costs from Americans.
There's also been an increasing move towards 'standoff weapons', like drones, where American bodies are not at risk and the US can effectively do violence to others without risking it for themselves. In that sense, AI and semiconductors — which are about improving the ability of weapons to do what muscle power once did — are more a continuation of a trend than something fundamentally new.
Views expressed are personal
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

India-US trade deal: Rahul Gandhi reacts to Piyush Goyal's 'national interest' remark; claims PM Modi to 'meekly bow' before Trump
India-US trade deal: Rahul Gandhi reacts to Piyush Goyal's 'national interest' remark; claims PM Modi to 'meekly bow' before Trump

Time of India

time26 minutes ago

  • Time of India

India-US trade deal: Rahul Gandhi reacts to Piyush Goyal's 'national interest' remark; claims PM Modi to 'meekly bow' before Trump

Congress leader Rahul Gandhi NEW DELHI: Congress leader Rahul Gandhi on Saturday claimed that Prime Minister Narendra Modi would "meekly bow" to US President Donald Trump , as New Delhi weighs its interests amid ongoing trade talks with Washington. Gandhi's remark was a reaction to Commerce and Industry minister Piyush Goyal 's statement, where he said: "We are not working towards any specific deadlines, we are working towards national interest". Trump has set July 9 as the deadline for trade agreements. "Piyush Goyal can beat his chest all he wants, mark my words, Modi will meekly bow to the Trump tariff deadline," Gandhi wrote on X. The Congerss leader's post on X India will enter into a trade agreement with the US only if its interests are protected and it is able to sustain a tariff advantage over its competitors, while prioritising the interests of farmers, commerce and industry minister Piyush Goyal said Friday. Trump had imposed reciprocal tariffs on nearly 100 countries but agreed to a 90-day pause that is to end Tuesday. India was slapped with 26 per cent reciprocal tariffs. There is uncertainty over whether India and US can agree to an early tranche or a mini deal before that even as a comprehensive bilateral trade agreement is negotiated by Fall (Sept-Oct) after a meeting between Trump and PM Modi. For India, lowering tariffs on farm products, such as maize and soybean, as well as dairy products is a concern. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is your tinnitus getting worse? Do this immediately (Watch) Hearing Magazine Undo While Goyal did not get into the specifics, he said India will not compromise the interests of farm and dairy sectors. "Farmers' interest is always paramount for Modi government. In any negotiation we have done, you have seen UK, Australia, Mauritius, EFTA and UAE agreements, India's farmers have been protected." The government has refrained from offering concessions in major agricultural products, but for US, it is the main focus. While some government officials said US demands were not very clear, for India, Goyal said Indian expectations for duty concessions in labour-intensive sectors were the focus of the trade deal. India was hoping for duty concessions in leather, footwear, textiles and some auto parts in return for reducing levies on automobiles and American whiskey.

Jane Street fallout: Derivatives trading volumes may be hit
Jane Street fallout: Derivatives trading volumes may be hit

Time of India

time32 minutes ago

  • Time of India

Jane Street fallout: Derivatives trading volumes may be hit

Our Bureau Mumbai: The derivatives market could take a major hit in trading volumes after the Securities and Exchange Board of India (Sebi) cracked down on Jane Street Capital , halting its operations in Mumbai and impounding more than half a billion dollars of local assets. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Scientists: Tinnitus? When tinnitus won't go away, do this (Watch) Hearing Magazine Undo Analysts said the regulatory action would put pressure on revenue for intermediaries dependent on derivative market activity, with volumes shrinking in response to Sebi's stiff punitive measures against one of the biggest proprietary trading firms in the segment. "Jane Street is one of the largest traders contributing to Indian markets," said Siddarth Bhamre, head of institutional research, Asit C Mehta. "When big players are banned for wrongdoing, others become cautious and reduce activity, leading to lower volumes. Traders may also face fewer counterparties, potentially causing a further drop in F&O volumes ahead." The capital market regulator has taken its toughest action ever against a foreign trading firm by targeting Jane Street, one of the world's largest quant trading firms that's also among the highest paymasters at India's top technology campuses. Live Events Highlighting the broader market implications, Zerodha Founder and CEO Nithin Kamath cautioned that action against proprietary trading firms like Jane Street, which contribute nearly half of the options trading volumes , could also dampen retail participation. "There's a flip side. Prop trading firms like Jane Street account for almost 50% of options trading volumes. If they pull back which looks likely it could also impact retail activity, which makes up about 35%. This could spell bad news for both exchanges and brokers," Kamath wrote on X. He added that the coming days would be crucial in gauging the fallout. "The next few days will be telling. F&O volumes might show just how dependent we are on these prop giants. I'll share more data as and when anything interesting comes up," Kamath wrote on the social media platform. In the wake of the Sebi order, shares of Nuvama Wealth Management , capital market service provider Central Depository Services and stock exchange BSE slumped following the regulator's action. Nuvama Wealth shares fell the most, dropping 10.6% as the firm is Jane Street's domestic trading partner, which got caught up in the regulatory crossfire, triggering investor anxiety despite no direct accusations against the firm. Along with Nuvama Wealth, shares of BSE fell 6.4%, while CDSL plunged 2%. In a strongly worded 105-page interim order, Sebi accused Jane Street and its associated entities of using complex high-frequency trading strategies to manipulate the Nifty 50 and Bank Nifty Indices. The regulator also said these tactics misled retail options traders and gave Jane Street an edge in India's booming derivatives market. The interim order alleged that Jane Street earned unlawful profits of ₹4,843 crore ($570 million). Jane Street runs its operations in India through four group entities-two based locally and two located in Hong Kong and Singapore, respectively. The firm established its first Indian unit in December 2020, while the other two Asian entities participate in Indian markets as registered foreign investors.

VRRR auction draws robust response amid surplus liquidity in the system
VRRR auction draws robust response amid surplus liquidity in the system

Time of India

time32 minutes ago

  • Time of India

VRRR auction draws robust response amid surplus liquidity in the system

The Reserve Bank of India (RBI) received significantly higher responses for the variable rate reverse repo operation (VRRR) auction on the back of more than ₹4 lakh crore surplus liquidity in the banking system. The seven-day VRRR operation, seeking to absorb liquidity from the banking system, received bids for ₹1.70 lakh crore, higher than the notified amount of ₹1 lakh crore. The RBI accepted the notified amount at a weighted average rate of 5.44%. This amount will be reversed on July 11. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Brain tumor has left my son feeling miserable; please help! Donate For Health Donate Now Undo In the previous 7-day VRRR auction , the RBI received bids for ₹84,975 crore, lower than the notified amount of ₹1 lakh crore, and the cut-off weighted average rate was 5.45%. Banking system liquidity stood at a sharp surplus of ₹4.04 lakh crore on July 3-the highest since May 19, 2022. Of the surplus, banks have parked ₹3.27 lakh crore in the standing deposit facility (SDF) wherein the RBI offers 5.25%. Further infusion of liquidity will come after the impact of the CRR cut, which would release ₹2.5 lakh crore of primary liquidity starting September until December 2025. Live Events "The focus of the VRRR is on transmission, the intent will be to make sure that the treps rate does not fall below the SDF rate, rather than getting the call rate to repo. VRRR does not remove liquidity, but increases the cost of liquidity, thus pushing up overnight rates," said Gaura Sengupta, chief economist of IDFC First Bank . Treps stands for Treasury Bills Repurchase. On Friday, the treps rate stood at 5.18%, while the call rate was at 5.29%, CCIL data showed. The focus of the VRRR is to bring overnight rates (treps and call rate) within the liquidity adjustment facility (LAF) corridor. LAF corridor stands between 5.25% to 5.75%, with the midpoint of 5.50% as the repo rate .

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store