text: the international arrs trade, which has becone a rnaJor vehlcle of transporting thecentral arns race to the periphery. S]/ I04. Even outside the arena of international arm6 tranEfers, bhe socio-econornic problens of the developing countries cannot be overcotrE in isolation from theinternational econqnlc context. 64/ llhe goats of the international developBent strategy had assuned that the industrialized world rrould nove along a relativelyinflatlon-free, nearly full-enployment path of sustained acceleration of econdricgrowth. The task of internatlonal development strategy was to devise measures tointegrate the devetoping countries into a world econorny noving ahead at arelatively stable and predictable rate. Present conditions, hoeever, are quitedifferent: increased instablllty in world output and prices, acconpan ied by a donnnard shift in the long-tern trend of economic growth for the industrializedcountries, have rendered the extelnal involvement less predictable and lessfavourable. One reaction to this change has been to suggest a ldrering of thedevelolmental objectives. But a loh'ering of the developnental objectlves may render the international econornic systen itself nrc|re unstable because accelerated econonic Arowth in the developing countries nay signiflcantly raise the levels of both the demand- and supply-side constraints on the econornic grc'nth of theindustrialized countries. 55,/ concerted actlon in pursuit of this line of thought nay also overcoflE the present paradloxica]. situation wtrereby 1o{r growth for the developing countr.i.es is unsustainable frorn the viewpoint of their ovrn aocial dynamics, vrtrile high growth for then is not feasible in the context of the existinginternational economic s i.tuation. 105. Although the negaclve econcrnic inpact of hlgh nllitary spending ls widely recognized, in sole cases the nil-ltary forces are €een as havlng a coheslve effect A/37/386 English Annex Page 50
analysis: The text discusses the challenges and complexities of international economic development, highlighting the impact of military spending, economic instability, and the need for concerted action to address the paradoxical situation of unsustainable growth for developing countries. The text also touches on the concept of international trade and its relationship with economic growth.