derpgraphic trends, namely, absolute rates of growth and the ratio of theworkirg-age population, rnilitary nanpovrer requirements do create or aggravatesituations of labour shortage both through thelr clalns on the number of people andthe specific skills which are in themselves an attribuee of the resourceallocations on educational and vocational training. In most countries, those employed directly or indirectly by the nilitary have a substantialty higher levelof technical skills than the average population and would have had higher- than-average productivity if they had been employed in the civilian sector.uilitary and miL i tary-related actlvities everywhere absorb a proportion of the rno6tqualified categories of persons, r,rhich is rnuch higher than what the share of themilitary budget in the gross national product rnight lead one to expect. This is obviously true of research personnel, engineers and technicians. ft is also truein the field of adninistrative and rnanagerial skllls. 85. With regard to capltal forrnation and the rate of investment in the gross domestic product, the effect of nilitary outlays on supplies is even llbre direc!than on nanponer. Bofh the nllltary and non-rnilitary investnent dernands are ^/37 /386 Engl ish Annex Paqe 43 directed roughty at the sarne set of industries such as, for exanple, electronics. industrial machinery, metallurgy, chenicals and energy. The nllitary and civilian technologies of soIIF industries such as electronics and aerospace are intrinsically interdependent. An expansion of military outlays wll-l be assoclated with a relatively lower share for civilian lnvestnent b1' causing supPly bottle-necks' By displacing civilian investment and diverting caPital fornation, military outlays constitute a severe constraint on the improvenent of civilian Productlvity ltith predictably adverse conseguences for the general economic perfornance, r,hlch depends heavily on capital foEmation and technological inpetus. 86. The inportance of the technotogical factor in econornic arowth has gained unprecedented pre-eminence almost in ProPortion to a grouing awareness that rnilltary purposes claim a disproport ionately large share of the 91oba1 scientlfic
**Analysis**
The text discusses the impact of military spending on the economy, focusing on the effects on labor, education, and technological development. It highlights the competition for skilled workers and resources between the military and civilian sectors, and how military spending can constrain civilian investment and productivity.

**Category**
Economic development, Industry