The fifth international conference on geo-economics organised by the International Institute for Strategic Studies (IISS) concluded on Tuesday with fifty participants from around the world expressing concern that fiscal stress was likely to restrain state capacity across a large number of countries worldwide.
The conference was organised by the IISS Geo-economics and Strategy Programme at the IISS-Middle East headquarters in Manama, where participants discussed the challenges posed by the shifting global balance of military spending. Participants included world-class experts, statesmen and business leaders from the US, Europe, Asia and Latin America.
The high-level gathering convened policymakers, private sector leaders, experts and academics from fourteen countries with representatives from the Ministries of Defence of Argentina and Brazil, Reliance Industries, Raytheon, SIPRI and the Centre for Strategic and Budgetary Assessments.
Delegates explored the implications of the United States rebalance to the Asia Pacific, the future of the defence industry in Northern Europe, and the growing importance of the defence capability of emerging powers, especially China. As Chinese military expenditures and foreign engagement increases, there is need to understand China’s economic trajectory and its implications for regional security in Asia. Participants also expressed concern about what the fiscal stress in the US, and the political impasse between the President and the Congress, would mean for regional security in the Middle East and East Asia.
“The conference drew attention to the fact that unless the US is able to address its domestic fiscal problems it would not be able to regain its primacy in providing global security. The international order continues to depend on the strategic capability of the United States and its allies and partners. The world has a stake in the US getting its own house in order,” Dr Sanjaya Baru, Director for Geo-economics and Strategy, IISS said.