In this piece, Harsh and I write about the importance of economic strength in the foreign policy arena:
Military strength, despite its great importance, offers diminishing marginal returns. Possibilities of asymmetric power projections preclude any simplistic linear comparison of military resources. This is especially true for those who have crossed the nuclear rubicon – notice how India and China have astutely said “No, thank you” to matching America or Russia when it comes to the size of their nuclear arsenals. When a weapon is so massively destructive, there is no real difference between having a hundred or having ten thousand. Moreover, economic strength and military prowess are inter-linked – the proceeds of economic growth when invested in creating military technology can generate a mutually reinforcing cycle of innovation, productivity gains and military strength.
More here.