Using the Feder-Ram and Military Keynesian Models to Examine the Link Between Defence Spending and Economic Growth in Sri Lanka

This study uses the Feder-Ram model in conjunction with the military Keynesian model to examine the nexus between defence spending and economic growth in Sri Lanka. We find that the Keynesian aggregate demand model is better suited to analyse the link than the Feder-Ram model for the case of Sri Lanka. Based upon our results we expect a higher economic growth rate in Sri Lanka if more public resources are diverted from the defence to civilian sectors of the economy, now that the war between the government and separatist guerrillas has come to an end. However, recent post war events cast doubt upon whether a diversion of sources from military to non-military spending will actually occur. We conclude that the sanguine predictions of our economic analysis are entirely dependent upon the political decisions of the Sri Lankan government for their realization.     

Military Spending and Economic Growth in South Asia: A Panel Data Analysis

Despite the large number and variety of studies addressing the relationship between military spending and economic growth, a consensus regarding the exact nature of any relationship between the two has proven elusive. This study uses a panel co-integration approach to examine the relationship between military spending and economic growth in the five South Asian countries of India, Pakistan, Nepal, Sri Lanka and Bangladesh over the period of 1988–2007. It finds that a 1% increase in military spending increases real GDP by only 0.04%, suggesting that the substantial amount of public expenditure that is currently directed towards military purposes in these countries has a negligible impact upon economic growth.     

What Goes Up Must Come Down: Military Expenditure and Civil Wars

Abstract

This paper examines the impact of civil war on military expenditure. We employ two measures of military expenditure: the share of military expenditure in general government expenditure and the logarithm of military expenditures. We would reasonably expect a priori that military expenditure as a share of general government expenditure increases during a civil war and that such increases would taper off over the duration of a civil war. We also explore whether the termination of a civil war induces a decline in the share of military expenditure as a share of the general government expenditure in the short-run. We find evidence the of share of military expenditure increases during a civil war and falls in the year succeeding the end of a civil war, and, in particular, if a war ends in a peace treaty. The level of military expenditures, however, rises during civil wars and does not appear to decline in the short-term after the end of a civil war.     

INCOMPLETE ROHLFS–SULLIVAN ANALYSIS OF THE COST-EFFECTIVENESS OF ARMORED TACTICAL WHEELED VEHICLES FOR OVERSEAS US ARMY OPERATIONS

This comment addresses the Rohlfs–Sullivan analysis titled: ‘The Cost-Effectiveness of Armored Tactical Wheeled Vehicles [TWVs] for Overseas US Army Operations.’ The analysis evaluated policies to replace Type 1 and 2 TWVs with Type 3s. There is no evidence the analysis factored in fatality causes, fatality relationships to vehicles, or compared survivability of vehicles. Furthermore, it did not note when Type 3 TWVs were requested, when they impacted fatalities, or TWV use policies. It also assumed Type 3 TWVs prompted negative unit behaviors while discounting evidence of positive behaviors. In summary, the analysis is incomplete and should be revised.     

Resourcing for defense: Solving the roles and missions puzzle

One of the most important issues facing the post‐Cold War U.S. defense establishment concerns the future allocation of combat tasks and responsibilities among different branches of the armed forces. The challenge is to reduce unnecessary redundancy across roles and missions when resources are highly constrained, without compromising military effectiveness. Defining the policy problem as one of resource allocation rather than operational effectiveness, we develop a methodology for allocating roles and missions. Our methodology focuses at the highest level of force aggregation and uses a mathematical programming model to produce cross‐service cross‐mission trade‐offs that will yield the best total force combat and non‐combat potential within resource consumption constraints.     

BANKING ON NONPROLIFERATION

In the past decade, governments have increasingly relied on financial sanctions to counter the proliferation of weapons of mass destruction. By targeting not only individuals and entities involved in illicit activities, but also banks that allow transactions to occur, financial sanctions were expected to stanch the flow of funds that support proliferation and compel compliance with international law—notably by Iran. Ten years later, Iran's nuclear program has advanced, calling into question the effectiveness of financial sanctions. Previous research evaluating the effectiveness of financial sanctions has focused on the impact of sanctions on the targeted country or on the enforcement of sanctions by the international community. Little attention has been devoted to their implementation by banks and government agencies. Based on interviews with US and European bank and government representatives, this article argues that the inefficiency of financial sanctions is due to shortcomings in training and information support from governments to financial institutions; governments on both sides of the Atlantic have provided little or no assistance to enable banks to identify patterns of proliferation financing and implement the sanctions regime. To transform financial sanctions into effective nonproliferation tools, governments need to play a greater role in their implementation.     

The Soviet Biological Weapons Program: A History

The Soviet Biological Weapons Program: A History. by Milton Leitenberg and Raymond A. Zilinskas (with Jens H. Kuhn), Harvard University Press, 2012. 921 pages, $55.     

INVESTIGATING THE RUBBLE OF SYRIA'S SECRET REACTOR

Damascus has severely impeded an investigation by the International Atomic Energy Agency (IAEA) into Syria's construction of a covert nuclear reactor, which was destroyed in a 2007 Israeli air strike. Pressing Damascus to cooperate with the inquiry is necessary to ascertain that there are no other undeclared activities in Syria, to determine the role of North Korea in the construction of the reactor, and to help prevent future clandestine efforts. With Damascus doing its best to avoid the investigation, securing Syrian cooperation will require adept diplomacy backed by the prospect of special inspections and, if necessary, a referral to the UN Security Council. The case of Syria's secret reactor highlights areas in which the IAEA needs buttressing, from the enhanced sharing of information, to reporting that is less political and more forthright. The case also illustrates the downside of politicizing IAEA investigations and supports the new director's apparent intent to return the agency to its core technical tasks.