through technical. co-operation rrould play a vital role in raising labourproductivity in developing countries. This scenario lnvolves a total adtlitionalcapital expenditure of $374 billion (or $255 biUion constant 1975 dollars) for the 6 years 1985-1990 to be finaneeal through (a) increased direct private investment by 0.25 per cent of the cDP of the developed countriegt thig gource rrill account for about 39 per cent of the totalr (b) increased official technical co-operation,involving a transfer of funds to developing countries by reducing I0 per cent of the nilitary expenditure of the developed countriest thi6 source accounts for about 46 per cent of the toealt and (c) increased governnent expenditure on education and haalth and on research and development activities in the developing countries' madepossible through a reduction of lO per cent of military e!.penditures of these countries, thls source accounts for about 15 per cent of the total. The results ofthis scenario indicate an increase of 1.02 percentage points above the baseLineprojection in the cDP growth rates of the developing countries in 1985-1990, anal a negllgible effect for the developed countriea (see table 22). The scenario thusillustrates the effcetiveness of this policy action ln accelerating the groirth of developing countr ies. 7. ProgreE6 in global disarmament 130. For this scenario, it is assuGed that all countriea rdould freeze their defence expenditures at the 1984 level startlng ln 1985. Fifty per cent of the flnancial resources from such a freeze in defence expenditure in oost of the developed countrles (both narket and centrally planned econonies) are assumed to be channeledinto ODA to the developing countries, while the reoalning 50 per cent would be used Co improve lhe eelfare of the population of the developed countries (e.g., in reducing budget deficits anal increaslng research and developoent etc.). In the developing countries and the centraLly planned economies of Asia, it is assunedthat the financial resources freed froo the tlefence burden would be used to
**Analysis**
The text discusses the potential impact of policy actions on economic development, specifically in the context of developing countries. It explores the role of technical cooperation, military expenditure, and government spending on education and health in raising labor productivity and economic growth.

**Category**
Economic development, Employment