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.     

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.     

THE FUTURE OF BIOLOGICAL DISARMAMENT

The Sixth Review Conference of the Biological Weapons Convention (BWC) gave the future of biological disarmament new hope. It brought the BWC back closer to the core of multilateral efforts to combat the weaponization of disease, agreed to an intersessional work program for 2007–2010, created an implementation support unit, and revived the interrupted process of BWC evolution through extended understandings agreed at review conferences. However, its aims were deliberately modest. Having set their sights realistically low, delegations did not have to lower them much further. What was most important was to prevent U.S.-Iranian acrimony from paralyzing the conference. With deadlock once again narrowly averted, the conference had to clear away the debris left from past dissensions in order to open the way to constructive evolution for the treaty. In particular the conference avoided contentious subjects such as permanent organization and verification measures for the BWC; its institutional deficit and compliance problems remain. Successes and limitations of the conference are analyzed, as is its equivocal outcome on confidence-building measures. Developing on the endogenous principle, the BWC will continue to need constant attention. At the center of a complex edifice, the BWC must be kept sound, strong, and solid.     

Countering global insurgency

This article suggests that the War on Terrorism is actually a campaign against a globalized Islamist 1 1 In this article, the term ‘Islamist’ describes the extremist, radical form of political Islam practiced by some militant groups, as distinct from ‘Islamic’, which describes the religion of Islam, or ‘Muslim’, which describes those who follow the Islamic religion. In this article the term is used to refer primarily to Al Qaeda, its allies and affiliates. View all notes insurgency. Therefore, counterinsurgency approaches are more relevant to the present conflict than traditional terrorism theory. Indeed, a counterinsurgency approach would generate subtly, but substantially different, policy choices in prosecuting the war against Al Qaeda. Based on this analysis, the article proposes a strategy of ‘disaggregation’ that seeks to dismantle, or break, the links in the global jihad.2 2 This article uses the short form of the Islamic term jihad to mean ‘lesser jihad’ (armed struggle against unbelievers), rather than ‘greater jihad’ (jihad fi sabilillah), i.e. moral struggle for the righteousness of God. View all notes Like containment in the Cold War, disaggregation would provide a unifying strategic conception for the war – a conception that has been somewhat lacking to date.     

A three‐stage procurement optimization problem under uncertainty

This article examines a problem faced by a firm procuring a material input or good from a set of suppliers. The cost to procure the material from any given supplier is concave in the amount ordered from the supplier, up to a supplier‐specific capacity limit. This NP‐hard problem is further complicated by the observation that capacities are often uncertain in practice, due for instance to production shortages at the suppliers, or competition from other firms. We accommodate this uncertainty in a worst‐case (robust) fashion by modeling an adversarial entity (which we call the “follower”) with a limited procurement budget. The follower reduces supplier capacity to maximize the minimum cost required for our firm to procure its required goods. To guard against uncertainty, the firm can “protect” any supplier at a cost (e.g., by signing a contract with the supplier that guarantees supply availability, or investing in machine upgrades that guarantee the supplier's ability to produce goods at a desired level), ensuring that the anticipated capacity of that supplier will indeed be available. The problem we consider is thus a three‐stage game in which the firm first chooses which suppliers' capacities to protect, the follower acts next to reduce capacity from unprotected suppliers, and the firm then satisfies its demand using the remaining capacity. We formulate a three‐stage mixed‐integer program that is well‐suited to decomposition techniques and develop an effective cutting‐plane algorithm for its solution. The corresponding algorithmic approach solves a sequence of scaled and relaxed problem instances, which enables solving problems having much larger data values when compared to standard techniques. © 2013 Wiley Periodicals, Inc. Naval Research Logistics, 2013     

New results on rendezvous search on the interval

In a rendezvous search problem, two players are placed in a network and must try to meet each other in the least possible expected time. We look at rendezvous search on a discrete interval in which the players are initially placed using independent draws (usually assumed to be from the same distribution). Some optimal solutions are known if this distribution is uniform, and also for certain other special types of distribution. In this article, we present two new results. First, we characterize the complete set of solutions for the uniform case, showing that all optimal strategies must have two specific properties (namely, of being swept and strictly geodesic). Second, we relate search strategies on the interval to proper binary trees, and use this correspondence to derive a recurrence relation for solutions to the symmetric rendezvous problem for any initial distribution. This relation allows us to solve any such problem computationally by dynamic programming. Finally, some ideas for future research are discussed. © Wiley Periodicals, Inc. Naval Research Logistics 60: 454–467, 2013     

Inequality‐based reliability estimates for complex systems

Full‐system testing for large‐scale systems is often infeasible or very costly. Thus, when estimating system reliability, it is desirable to use a method that uses subsystem tests, which are often less expensive and more feasible. This article presents a method for bounding full‐system reliabilities based on subsystem tests and, if available, full‐system tests. The method does not require that subsystems be independent. It accounts for dependencies through the use of certain probability inequalities. The inequalities provide the basis for valid reliability calculations while not requiring independent subsystems or full‐system tests. The inequalities allow for test information on pairwise subsystem failure modes to be incorporated, thereby improving the bound on system reliability. We illustrate some of the properties of the estimates via an example application. © 2013 Wiley Periodicals, Inc. Naval Research Logistics, 2013