Conversion pp 232-246 | Cite as

The Macroeconomic and Environmental Effects of Military Conversion

  • Timothy R. Muzondo
Conference paper

Abstract

The events of 1989 in Eastern Europe, the end of the cold war and the subsequent easing of military tensions and conflicts in other parts of the world have created an environment which makes it possible for a number of countries to receive “peace dividends” — or savings on defence expenditures which can be obtained without sacrificing national “security”. The savings arise from the fact that the improvement in the security environment has favourably changed the relationship between amounts of defence inputs that are required to produce the given levels of national “security”. The prospect that a number of countries may receive these savings has intensified the debate on military conversion — or the process of transforming military facilities and retraining human resources formerly employed in military industries to make them suitable for civilian use — and has rekindled the debate on the economic effects of military spending. There are two broad (opposing) views on the economic effects of military spending.

Keywords

Monetary Policy Public Expenditure Aggregate Demand Macroeconomic Policy Military Expenditure 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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Copyright information

© Springer-Verlag Berlin Heidelberg 1992

Authors and Affiliations

  • Timothy R. Muzondo
    • 1
  1. 1.IMFGermany

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