process. Of course, destruction of the weapons reduced and conversion of military industries to civilian production entail larqe expenses at the initial staqe. acr/gt A/S-18/PV. 3 19 (Mr. Obminsky, USSR) However, one cannot fail to see the immense significance of such steps for revitalizing national economies and the entire world economy as well. Reductions in military expenditures will secure long-term peace dividends through lowering budget deficits, curbing inflation and interest rates, and thus ensuring higher growth throughout the world. The advancement of the new political thinking in world affairs has already allowed the Soviet Union to cut its defence budget by 14 per cent this year. The United States also has real possibilities of reducing its military spending. And the potential of peace dividends is not limited to Soviet-United States relations. The world community is looking forward to the reaching of agreements at the talks on the reduction of armed forces and armaments in Europe. The process of international detente and the settlement of regional conflicts also makes it possible to reduce military expenditures in the developing countries, ~There the overall strength of the armies is approaching 20 million. It is estimated that the purchase of weapons accounts for nearly 25 per cent of the overall foreign debt of the middle-income developing countries. The Soviet Union stands firmly for ensuring that both political and economic detente between East and West is developed within the mainstream of efforts to form an integrated structure for the entire world community, in which the interests of developing countries will be fully respected. These Guuntries are also entitled to their share of the peace dividends which will be generated by the intensification and widening of the disarmament process, as well as by the development of international economic relations. 
**Analysis**
The text primarily focuses on the economic benefits of disarmament and the reduction of military spending, highlighting its impact on national economies and the world economy as a whole. It also touches on the idea of peace dividends and the potential for developing countries to benefit from disarmament.

**Category**
Economic development, International trade