radioactlve pollution by atomic tests, accrtrnulation of metereological information) or because these problems can be solved on a national or regional basls only at higher costs, for example, the development of new sources of energy. 74/ Ihe global nature of many problens arising out of physlcal and econonic constraints on human and material resources nakes their solution within national and politlcal boundaries increasingly difficult. The arns race, therefore, anounts to a counterproduct ive choice since it presuPposes the existence of a conflict and reinforces the attitudes of confrontatlon in a situation calling for co'oPeration. 131. The negative effects of the arms race on various international- econcmic transactions such as trade and the nonetary sysLem lrere emPhasized in the 1977 report. As already noted in the previous chapter, the large natlonal nilitary expendltures have adversely affected econonic arowth and enplo)'ment and are, therefore, one of the causes for stagnation in the vrorld econoNny. The 1971 and 1977 reports also stressed that the arms race and its poli tico-tnil itary funplications constitute a severe hindrance to a snooth exchange of comnodities, services, capitaL and technology. Atthough several other factors have always contributed to the econonic discrinlnation, such as import restrictions, protectionism and other more or less technical Policy measures, it can be seen' particularly in the most recent period, that the ongolng arns race increasingly constitutes an important distortion of international econonic, scientific and technologLcal exchange. This is particul-arly true for the so-called strategic corMmdities which my be anything frorn r avr naterials to advanced technologY. In scme cases, important, although few in nu[ber, embargoes have been carried so far that they alnost anounbed to attemtPs at strangulation. Military-related enbargoes on the exchange of advanced technology are particularly important betr,reen countries with different levels of developnent. l{hen these countries are heavily dePendent
**Analysis**
The text discusses the negative impacts of the arms race on international economic transactions, scientific and technological exchange, and economic development. It highlights the global nature of the problems and the need for cooperation to solve them. The text also mentions the effects of military-related embargoes on the exchange of advanced technology and the distortion of international economic exchange.

**Category**
International trade, Natural resources and environment, Economic development