Economics/Finances Arms Reduction: Economic Implications in the Post-Cold War Era (9280808818)

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Arms Reduction: Economic Implications in the Post-Cold War Era

Due primarily to the cold war's end, the implosion of Soviet communism and the economic downturns of the last decade, the world is experiencing a steady albeit slow downward trend in global military expenditure. While the politics of military arms reduction is frequently the stuff of headlines, details of related economic ramifications generally are not. Klein is a former Nobel Laureate in Economics and is currently Benjamin Franklin Professor Emeritus at the University of Pennsylvania. Lo is the Senior Academic Officer at the United Nations University, Tokyo. McKibbin is Professor of International Economics, Australian National University, Canberra. Together with 18 contributing authors, they discuss various and complementary economic perspectives on disarmament. Arms Reduction summarizes the major issues voiced at a 1992 conference that "examined global patterns of military expenditure and simulated policy dialogue to achieve significant" arms reduction. Arms production and trade is analyzed by nation and region, with special attention devoted to developing nations. Economic incentives for demilitarization are explored, including its linkage to the disbursement of foreign aid by more developed nations. Macroeconomic consequences affecting manpower, labour markets, defense industries, the environment, and weapons destruction and verification are evaluated. Moral dimensions are also examined. Typical is the situation faced by many Eastern European countries, which now face something of a dilemma. On the one hand, arms exports facilitate militarization elsewhere; on the other, they provide a needed boost to their fledgling capitalist economies.

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