Global Determinants of Defense Budgets: Economic Liberalization
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In the post-Cold War era, defense budgets especially in developing countries have been affected by a number of trends in the world economy as well as changing perceptions of the economic impact of defense expenditures. In the early to mid-1990s perceived or actual reductions in international tensions associated with the end of the Cold War contributed to discussions regarding the magnitude of the “peace dividend ” and its use.1 At the same time, the need for fiscal adjustment in many countries led to an increasing focus on “unproductive ” spending in general including “excessive ” military spending.
Paper Prepared for the Conference on Global Determinants of Defense Reform, Naval Postgraduate School, Monterey, CA, September 9-10, 2005
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