Creating Shortages of Capital Assets

Michael Taillard

Chapter 2 in Economics and Modern Warfare, 2012, pp 43-48 from Palgrave Macmillan

Abstract: Abstract Capital assets are those that are used to purchase supplies. Money is included among these, as are investments, property and equipment, and trade goods such as agricultural and manufactured products. Anything of value that a force can use to obtain supplies necessary for combat operations is considered to be a capital asset. By altering the availability of these, often the same effect is had as if one had altered the availability of supplies directly, though the typically indirect nature of cutting off capital assets is less visible to front-line troops and creates less incentive for an immediate physical confrontation, making such a strategy less risky in many cases. In addition, cutting off capital assets often does not even require direct involvement by soldiers, which has the added benefit of consuming fewer resources, reducing direct risk, and decreasing the amount of visible operations observable by the enemy, leaving them ignorant of what is occurring. There are three primary sources of capital that help fund combat operations; financial instruments, trade goods, and commercial funding.

Date: 2012
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DOI: 10.1057/9781137282255_4

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