text: 371.Although solutions totheproblems ofthearmsracelargely depend on political consensus, economic analysis canhelpquantify thecostsandbenefits of pursuing alternative policyoptions forindividual countries aswellasforthe worldeconomy ingeneral. A.Globalmilitary expenditures: overall magnitudes and recent trends 372.Trendsintheresources devoted tomilitary activities world-wide canbemost easilyportrayed bymeansoffinancial datarelating tomilitary andother expenditures. In1984theworldspentabout$US649billion (in1980prices) for military purposes. 2/Thisamount wasover5percenttotalofworldoutput in1983andabout27timesaslargeasallofficial development assistance provided byOEeDcountries in1983.3/Itwasmorethanthetotalvalueofgrossfixed capital formation inallthedeveloping countries combined, andaboutthesameas theglobalpUblicexpenditure oneducation. 11 373.Inaddition toanexamination ofthetrendsinthelargeabsolute volumeof resources devoted tomilitary expenditure, Whichareofgreatconcern anddiscussed further inparagraphs 379-398 below, tworelated ideasarestatistically analysed: (a)Thearmsracehasbeenconsuming aconstant proportion oftheGDPof various countries andpossibly alsooftheworld's totalGDP; /....A/ 40 /5r9 English Page 187 (b) It is mainly in the poor countries that military spending is anespecially large share of GDp. Irence, the burden of the arms race falls rnparticular on the shoulders of those least able to bear it. The available data generally confirm the first of these ideas and provide somesupport for the second. 374. Bet$een 1960 and 1980, world-wide military expenditures almost doubled, inconstant. dollar6, growing at an average annual rate of about 3.2 per cent. Thetrend did not change much during the period 1960-1978, but there. rdas sometleceleration i.n the mid-19?0s followed by a return to the 3.2 per cent rarefrom 1978 to 1984. The acceleration rras especially sharp from I9g0 to 1984, duringrhich the growth rate tras over 3.5 per cent. compared with the growth rates ofworrd GDP, these rates indlcate that. miritary expenditure, as a percentage of worr.d GDP, decltned from 1960 through l98o but increased fron 1980 to 1983. 5/ (Table 66below shows a decline from 6.I per cent in I97O to 4.g per cent in 1986-,)Fron 1974 to 1983, world arms spendlng grew by a rate of 2.9 per cent annually, orsomeflhat more than erorld GDp, uhi.ch grer,, by around 2.7 per cent annually.
analysis: The text primarily discusses the trend and magnitude of global military expenditures, their relation to GDP, and the burden of the arms race on poor countries. It also touches on the idea of quantifying the costs and benefits of alternative policy options. The economic analysis is focused on understanding the impact of military spending on the global economy.