Download PDF by United Nations: Costs of Disarmament: Mortgaging the Future the South Asian

By United Nations

ISBN-10: 141754807X

ISBN-13: 9781417548071

ISBN-10: 9290451610

ISBN-13: 9789290451617

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Extra resources for Costs of Disarmament: Mortgaging the Future the South Asian Arms Dynamic

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Ostensibly the security military expenditure established creates the conditions for investment and economic growth to flourish. Moreover it is claimed to have a positive impact on investment through various spin-offs that complement civilian economic activities. 119 As was highlighted in the previous section rising military expenditures have incurred increasing levels of deficit and external debt, (a problem of chronic dimensions in Pakistan). According to the World Bank debt build-up and the diversion of funds into the military have several adverse implications for development:120 • It makes an economy more vulnerable to exogenous political and economic shocks; • It squeezes development spending in order to contain budget deficits.

It will consume 5% of the central government’s tax revenue each year and increase total annual defence expenditure by about 10% per annum. Costs increases of this magnitude are likely to prove onerous to the Indian economy. The dramatic increases in military expenditures that have occurred since 1999, particularly the 28% rise in January 2000, have already placed a severe strain on the central government budget. Any further demands are likely to generate substantial opportunity costs, particularly for development and poverty alleviation.

1988 May 1989 - Operational Inventory 1994 75+ 2000+ - None None None None 25 There is much speculation concerning Indian plans for an intercontinental ballistic missile (ICBM) programme, referred to as the Surya. Some Indian defence writers argue that possession of an ICBM is a key symbol in India’s quest for recognition as a world power and useful in preventing diplomatic bullying by the United States. Most components needed for an ICBM are available from India’s mostly indigenous spacelaunch programme.

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Costs of Disarmament: Mortgaging the Future the South Asian Arms Dynamic by United Nations

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