on foreign crade or on technical assistance these enbargoes seriously inpede thelr development. 132, The same is true for private and official caPltal transactions. With reqard to the former. it is inportant to mention that many develOping countries already have little access to the international Prlvate monql and caPital markets. Private investors rarely invest lheir noney in regions with political and military tensions. Moreover, in general, private caPital florts prinariLy to those countries which enjoy the politlcal support of the donor country. This is obviously true for ^/37/386Engl ish Anne:a Page 60 CIIART 4.MILITARY EXPENDITURES AND FOREICN ECONOMIC OF THE DEVELOPED COUNTRIES (gUS bilions)AID , .o*ur.l r.o*?rr. ot? | 3t 1960 1965 1970 1975 1980 Source: Ruth L. Sivard, World Military and Social Expenditures 1981. ^/ 37 /386 Engl lsh Annex Page 61 official development aid, its flows being predominantly governed by considerationsof political and mllitary tles between the recipient and the donor countries. For sone donor countries there is little apparent relation between the urgency of the develotrment needs of recipient countries, on the one hand, and the flot of bilaterat aid to them, on the other. Instead, there have been cases Hhen the provision of aid Eerved an ulterior purpose! to acquire influence or deny it to others, or to help obtain base facilities or other nil itary-strategic advantages- This greatly dirninishes the usefulness of the aid ptovided, not least because the poorest cormtries, the land-locked and othervtise disfavoured, are rarely those whose pol it ico- atrategic inportance is greatest. In addition, when aid flows are distorted in this nay by political consideraLions related to the over-all arns race it nay' in sone cases, encourage recipient countries to get involved in the confrontations of outside Ponersr thus adding lrbre fuel to the arms race.
**Analysis**
The text discusses the impediments to the development of developing countries, particularly in terms of foreign capital and official development aid. It highlights how political and military tensions can hinder private investment and official aid, and how aid flows can be distorted by political considerations related to the arms race. The text also mentions the importance of considering the development needs of recipient countries, rather than solely focusing on political and strategic interests.

**Category**
Economic development, International trade