Optimal versus required defence expenditure: The case of the Greek-Turkish arms race

The aim of this paper is to indicate the extent to which the arms race against Turkey, in which Greece and Cyprus have been entangled, imposes a defence expenditure burden that is tough for the two allies to bear. To do so we have resorted to evaluating the optimal military expenditure for the two countries, allied in the context of the Integrated Defence Doctrine, which is compatible with the constraints imposed by the resources of their economies. All experiments and scenarios examined lead to the conclusion that the current defence burden of the two allies seems to be driving their economies beyond capacity limits. The fact remains, however, that under the circumstances, a one-sided disarmament policy like the one currently followed by Greece, is a risky choice given that the long-term armament programmes pursued by Turkey, whose role in this arms race has been proven as leading, leave very small room to the Greek and Cypriot sides to reduce their own defence expenditure.     

TERRORISM AND TOURISM: THE CASE OF TURKEY

Using a time series method called ‘transfer function’, this paper examines the effect of terrorism on tourism in Turkey. The results indicate that there exists a negative but small impact of terrorism, which is observed within approximately one year. However, terrorist attacks in Turkey have accounted for a reduction of six million foreign tourists over the last nine years. Moreover, the economic cost of terrorism in the tourism industry was more than $700 million in 2006. However, terrorist attacks in continental Europe and America, and an active war involving a neighboring country, had no effects on tourism in Turkey.     

Rent‐seeking models of international competition: An experimental investigation*

This paper experimentally tests a number of hypotheses that follow from models of international competition that are based on Tullock style rent‐seeking models. Specifically, we designed and performed experiments to see how variations in the degree of publicness in the prize as well as changes in the values assigned to the prize affect alliances in terms of individual nation contributions, total contributions, burden sharing, and the likelihood of winning the prize. While there was substantial variation in individual behavior, the results of the experiments generally conform to the theoretical predictions of the rent‐seeking model of international competition and alliances.     

NEW TERRORISM

New or contemporary international terrorism associated with Islamic fundamentalism and the struggle against Zionism and American interests is a recent phenomenon in Kenya, different to that experienced during the struggle against colonialism. Many explanations have been offered as to why Kenya is being targeted, but have not sufficiently explored its close relationship with the West—especially Britain and the United States, the perceived connection between Israel and the former Presidency of Daniel Arap Moi, domestic forces and government policy. Externally the most important explanations for the increase in regional terrorism are the three waves of global terrorism since 1967, the most recent and significant of which is associated with Osama bin Laden and the Palestinian Intifada. These events reverberated in the region, Sudan and Somalia in particular, but also internally. Both internal and external attribution factors explain the resurgence of new terrorism in Africa. In the case of Kenya, terrorist attacks are associated with the country's internal domestic processes and a naïve approach to broader international issues.