Sinking budgets and ballooning prices: Recent developments connected to military spending

Thomas R. Cusack

Discussion Papers, Research Unit: Institutions, States, Markets from WZB Berlin Social Science Center

Abstract: Military spending in the West generally declined after the Cold War. Given the economic pressures that many of these states confronted, they can be said to have experienced a fortuitous conjunction of lessening security demands with stable if not rising pressures to allocate more resources to social purposes. However, with declining financial resources a good part of military capital in these countries was reduced and most of what remains is growing obsolete. The excessive rise in relative prices associated with major military capital items, a rise only partially associated with an increase in real effectiveness, poses a challenge for many of these states if they are to retain their capacity to provide in some meaningful way for their own military defense.

Keywords: Military Spending; Weapon Systems; Military Personnel; Inflation; Conscription; East-West-Conflict (search for similar items in EconPapers)
JEL-codes: D43 H11 H56 N40 (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:wzbism:spii200604

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