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BY : KRISH KAHNANI
Capitalism Peace Theory is an economic theory having basic idea that it will not directly establish peace but descend the livelihood of conflict among the nations through trade and required monetary policies. There are cases where it has been observed that reduction in trading barriers lead to the decrease in friction among the nations.
Image reference https://i.redd.it/1xaakbju0uc41.jpg
However, capitalism peace theory has been criticized by individuals. Economic interdependence does not necessarily prevent conflict, It may also lead to geopolitical tensions. For instance, conflict over resources can cause differences among the nations , It could also lead to exploitation of weaker nations by more powerful nations.
We also have seen cases of exploitation of resources and labor in non-capitalist countries by capitalist countries.
There are multiple reasons that could bring conflict among capitalist nations and economic interdependence can not only establish peace.
Example being both the world wars were fought primarily between capitalist countries with vast economic capabilities.
Capitalism peace theory assumes only positive impacts of economic interdependence and the spread of capitalism but it can also lead to resentment and tension.
The Capitalism Peace Theory may work out in various instances but its limitations certify that it is not a reliable predictor for Global peace.
Capitalism peace theory promotes commercialism and further innovation. For instance, a country that invests in developing more advanced healthcare technologies and methods would be seeking benefits from it, rather than relying on military power to achieve its goals.
There are instances that worked out according to the principles of this theory, concurrently there are cases where it faced contradictions.
One of the cases where the Capitalism peace theory worked out was after World War II in Europe.
Europe went through vast economic growth among its countries. The European Coal and Steel Community (ECSC) in 1951 and the European Economic Community (EEC) in 1957 played a major role in this rapid growth. The EEC, which later became the European Union (EU) constructed methods leading to elimination of trading barriers.
The European Court of Justice and European Parliament worked as important bodies in settling out the disputes among the member states. These institutions have helped to reduce tensions and promote peace among countries.
The EU also encouraged member states to cut off the military spending and focus towards economic development. This has reduced the incentive for countries to engage in military conflict.
Overall, the spread of capitalism and the growth of economic interdependence in Europe after World War II played a significant r increased economic integration and democracy helped to reduce tensions and promote stability.
References - https://en.wikipedia.org/wiki/Post%e2%80%93World_War_II_economic_expansion
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