Military spending and economic growth in South Africa

This paper undertakes an empirical analysis of the economic effects of military spending on the South African economy. It estimates a neo‐classical model common in the literature at the level of the macroeconomy and at the level of the manufacturing sector. An attempt is made to improve upon the model by allowing the data to determine the dynamic structure of the model through an ARDL procedure. No significant impact of military spending is found in aggregate, but there is a significant negative impact for the manufacturing sector. This suggests that the cuts in domestic military procurement that have occurred since 1989 could lead to improved economic performance in South Africa through their impact on the manufacturing sector.     

The impact of arms production on the South African manufacturing industry

The 1977 UN arms embargo was one of the main factors which led South Africa to establish a largely self sufficient import‐substituting arms industry capable of meeting the apartheid state's demand for sophisticated weaponry. While macroeconomic studies suggest that high military spending had a damaging effect on economic growth, no studies have investigated the disaggregated impact of military expenditure on industrial development. This paper applies panel data methods to the Industrial Development Corporation's Sectoral Database in order to analyse the level effects of military spending.     

BIOLOGICAL AND CHEMICAL WEAPONS ARMS CONTROL IN THE MIDDLE EAST

Nonproliferation policies to prevent biological and chemical weapons use are important, but insufficient, particularly in view of the rise of global terrorism. Given the history of developing and using these weapons, it is crucial that governments properly prepare for biological and chemical threats, whether naturally occurring or man-made, such as by developing and managing effective healthcare infrastructure to mitigate widespread illness and injuries resulting from pandemics or terrorist attacks. Although the Middle East is one of the most sensitive and complex areas in the world—especially regarding regional arms control efforts and prevention—coordinating preparedness strategies among states in the region may be possible. Cooperatively addressing biological and chemical threats could lead to constructive progress towards the otherwise elusive goal of establishing a weapons of mass destruction-free zone in the Middle East.     

Contents and Author Index,Volume 20, 2013

The United States has multiple nuclear detection initiatives to secure against a terrorist nuclear attack, including the Container Security Initiative, installation of radiation detectors at U.S. border points of entry, and establishment of the Domestic Nuclear Detection Office (DNDO). The current nuclear detection system architecture falls short of being able to reliably catch fissile nuclear material in transit, specifically shielded Highly Enriched Uranium (HEU) and Plutonium (Pu), both within the US and abroad. Checkpoints at border crossings can be circumvented, and no adequate system is under development to deter the transport of fissile materials. Using nuclear link-budget calculations, we show why a network relying primarily on handhelds, fixed detectors, and portals is not sufficient. We examine the technical, economic, and operational feasibility of a comprehensive national network incorporating in-vehicle detectors to reliably detect and deter the transport of fissile material inside the vehicle itself.     

Building the next nuclear community

This viewpoint takes stock of the changes in the strategic nuclear landscape in recent decades and reflects on its consequences on the policy community. It finds that the number and scope of issues have expanded considerably; they have manifested themselves in many more regions of the world; and they have become deeply politicized and polarized. The consequences have been twofold: the nuclear policy field has seen the development of an increasingly diverse expert community composed of highly specialized functionalists and regionalists, and it has become ever more divided into two entirely separate ideological camps—one that believes in deterrence, the other in disarmament. The stove-piping of expertise and the widening gap between deterrence and disarmament ideologies are immensely problematic because, in different ways, they stand in the way of the emergence of a better and safer nuclear future. Looking ahead, it is critical to “bust the silos of expertise” and to build bridges between the deterrence and disarmament ideological camps. Only such a community-building effort will help solve today’s and tomorrow’s nuclear challenges.     

The rising unit cost of defence equipment — The reasons and the results

This paper constructs a conceptual model for the selection of defence equipment providing best value for money. It then shows how the unit cost of the chosen equipment increases between one generation of equipment and its successor because of developments in the perceived threat, the available technology and industrial productivity, and demonstrates that unit cost increases can arise from a logical and rational procurement policy and are not necessarily caused by technological chimeras and military vainglory. The resulting persistent rise in unit cost is unlikely to be significantly slowed by any of the counter‐measures yet proposed.

The paper then discusses the policies which nations have adopted to accommodate past increases in unit cost, and the options which confront any nation at the point when it can no longer afford to re‐equip a particular element of its armed forces.     

What determines military allocations in Africa: Theoretical and empirical investigations

This paper investigates theoretically and empirically the determinants of military spending in Africa. It specifies a formal model and uses time‐series and cross‐sectional estimations to ascertain the reasons behind variations in military allocations across and within 40 African countries during 1960–1991. The differences in military expenditures appear to reflect a complex of economic, political, and strategic factors at both national and international levels. Strategic considerations are, however, found to be the most important factors in most African countries.