A DYNAMIC PANEL DATA MODEL FOR ANALYZING THE RELATIONSHIP BETWEEN MILITARY EXPENDITURE AND GOVERNMENT DEBT IN THE EU

This paper examines the impact of military spending on general government debt in the enlarged European Union (EU) countries. For this purpose, we use panel data analysis and provide estimates from a dynamic Generalized Method of Moments (GMM) panel model. The dynamics are found to be important and the results suggest that military expenditures do have a large positive impact on the share of general government debt in the EU.     

TIME-VARYING CHARACTERISTICS OF SOUTH KOREA-UNITED STATES AND JAPAN-UNITED STATES MILITARY ALLIANCES UNDER CHINESE THREAT: A PUBLIC GOOD APPROACH

This paper investigates the nature of two military alliances under Chinese threat. The findings are as follows: First, South Korea does not consider China a significant threat while Japan and the United States have recognized China as a serious threat since the 1990s and the 2000s, respectively. Second, the relationship between South Korea and the United States is a true military alliance for all time periods, but the nature of the alliance has changed since the 1970s. Third, although Japan began to form an alliance relationship with the United States in the 1990s, Japan is considered a more significant ally by the United States. This paper implies that, should China provoke a military confrontation, it might be difficult to deduce a common solution among the three countries because of the different response to military threats from China.     

PEACEKEEPERS AS PERPETRATORS OF ABUSE

I am afraid there is clear evidence that acts of gross misconduct have taken place. This is a shameful thing for the United Nations to have to say, and I am absolutely outraged by it.

—Kofi Annan, United Nations Secretary-General

Despite promulgating a comprehensive set of guidelines to deter UN personnel from committing acts of sexual misconduct, allegations of sexual exploitation and abuse have become widespread within United Nations peacekeeping missions. The policy of zero-tolerance for peacekeeper misconduct has not been matched by strong disciplinary measures, and crimes are often ignored and rarely punished: absentee fathers, rapists and murderers simply disappear back in their home countries. In countries where women and children rarely have the same economic resources, political rights and authority or control over their environment—or their bodies—they easily become prey for those in perceived positions of power and authority. By failing to hold those responsible to account, the UN may in fact be fuelling even greater discrimination and violence against women and children. In order to ensure those who are mandated to protect to do not become perpetrators of abuse, the UN must take a stronger stand against those who commit acts of sexual misconduct, and must ensure that victims see that their abuser is brought to justice and that reparation is offered. A recent report submitted by the Secretary-General's Special Envoy on Sexual Exploitation and Sexual Abuse makes a comprehensive set of recommendations to prevent, detect, and respond to these allegations. The aim of this essay is to highlight some of the main points of the Special Envoy's report, and to examine the practical challenges the UN and troop/police contributing countries will face when attempting to implement these recommendations.     

A Muslim by any other name

Abstract

A crisis is emerging in the Nile Basin, where some 300 million people in Egypt, Sudan, Ethiopia, Uganda, the Democratic Republic of Congo, Rwanda, Kenya, Tanzania and Burundi rely on the Nile directly or indirectly. Egypt and Sudan wish to preserve a regime based on treaties drawn up during the colonial era that allocated the vast majority of the Nile's water to them. Countries upstream are determined to challenge this. In 1999 the countries using the river formed the Nile Basin Initiative to try to resolve these differences. More than a decade of negotiations failed to break the impasse. In May Ethiopia, Kenya, Rwanda, Tanzania and Uganda decided to wait no longer and signed a new treaty, without the consent of Egypt and Sudan. The signatories have given the other Nile Basin countries one year to join the pact. For Egypt, which relies on the Nile for 95 per cent of its water, this is a question of life or death. Egypt has, in the past, indicated it will go to war if its share of the Nile is reduced. Talks continue, but the impasse is driving the region towards a crisis to which there is no easy resolution.     

DOES MILITARY EXPENDITURE MATTER FOR INFLATION AND ECONOMIC GROWTH?

This paper sets up a monetary endogenous growth model, and uses it to explain the ambiguous linkage between the military burden and the inflation rate observed in existing empirical studies. It is found that an expansion in the military burden has an ambiguous effect on the inflation rate depending upon the relative extent of two conflicting forces. More specifically, if the increase in the marginal benefit from holding money exceeds (falls short of) the increase in the marginal product of private capital, the inflation rate will rise (fall) in response. Moreover, it is found that an increase in the military burden will stimulate the balanced growth rate, confirming Benoit’s famous empirical findings.     

Country survey military expenditure in Cyprus

Cyprus, a small island state, gained independence from British colonial rule in 1960. For more that half its history as an independent state Cyprus has been under occupation following the 1974 Turkish invasion. Despite the fact that it has faced war, invasion and occupation, Cyprus has allocated a comparatively small proportion of its national income to defence. The average defence burden—military expenditure as a share of GDP—during 1964–98 was around 2.5%. However, as a result of a substantial shift in defence policy during the past decade or so, the defence burden during the 1990s has increased, averaging about 4% of GDP as Cyprus decided to implement an extensive military modernization program aiming to present a more credible military deterrence vis‐a‐vis Turkey. Empirical estimations of a demand function for Cypriot military expenditure suggest that it is positively affected by alliance spillins and external military threat.     

The economic effects of international trade in armaments in the major western industrialized and developing countries†

We have used the Michigan Model of World Production and Trade to assess the impact of exports and imports of armaments (based on 1980 data) on sectoral trade and employment and other economic variables in the major Western trading countries. If the United States were to place a unilateral embargo on its arms exports and imports, we calculate that it would experience a comparatively small amount of employment displacement in the aggregate and that most of this displacement would occur in the transport equipment and electric machinery sectors. If all the major Western countries were to place a multilateral embargo on their arms trade, the sectoral effects on the United States would be similarly small. But the sectoral effects in several other industrialized and developing countries measured as a percentage of sectoral employment, would be larger, indicating potential short‐run adjustment problems in labor markets in some cases.     

CIVIL SOCIETY AND VIOLENCE—HOW TO MANAGE IN THE TOWNSHIPS WITHOUT THE ARMY

This article discusses the validity of national security threats in Botswana and whether they justified the creation of the Directorate of Intelligence and Security Services (DISS), which has been controversial since its formation. Since its inception in 2008, the DISS has been accused of many human rights violations and politicisation. Without fully deliberating on the basis for its creation, some discourses have focused on the politicised operations without relation to what the DISS is supposed to be doing. The author works under the assumption that debates should be shaped by whether it was necessary to create the DISS, and, if so, how we can shape and steer debates on its oversight, management, reform and operations. This article argues that despite the politicisation of the DISS, Botswana's national security threats are both real and imagined; and that domestic threats to national security have moved from the conceptual ‘imagined’ category to the ‘real’. However, that in itself did not warrant the design and mandate of the DISS, and the article argues that it was external threats that really warranted the creation of a civilian intelligence agency. The article concludes that Botswana faces a plethora of external security threats – traditional and non-traditional – that warranted the creation and continuance of the DISS.     

A critique of Paul Collier's ‘greed and grievance’ thesis of civil war

Paul Collier has produced a well-written and apparently plausible thesis on ‘greed and grievance’, evidenced in several published texts, which concludes unambiguously that greed, not grievance, is overwhelmingly the cause of conflict. However, Collier has based these findings upon narrowly defined quantitative measures–three defined indices of greed and four indices of grievance. Collier consciously omitted indices which he found difficult to measure, such as suppliers of armaments and opportunities for bureaucratic corruption. However, he appears to have unwittingly omitted some further factors, including governance, management mechanisms for natural resources and the influence that charismatic leadership can have on rebel groups. These omissions can be viewed as a major flaw in Collier's work. They also explain why Collier has diagnosed that civil wars are more likely to occur in some countries in the developing world without offering adequate explanation of why this may be so.