capital- and r esearch- i ntens ive than its predecessor, military R and D efforts do not generally conform to the npre farniliar crlteria of performance and costs in the civilian sectors. 51,/ (c) since nilitary R and D, like aLl nilitary oublays' is essencially a governnent undertaking, high concentration on this field also tends to bias thetotal R and D effort in favour of sectors of primary interest to the nilitary. (d) Progralunes for sophisticated military technologies tend to be associated with habits, skills and attitudes towards research, developnenb' produc!ion and marketing that sonEtines create apparently formidable subjective barriers to their adaption to the civilian sectors. 52,/ 93. If their stimulating effect on economic growth has been nisplaced and their contribution to civilian spin-offs exaggerated, then the socia] benefits attributedto mllltary outlays are still more circumspecl, The 1977 report had already enphasized that military outlays aggravate inflationary tendencies, generate lesser employment than conparable civilian outlays of similar magnitude and add to the existing balance.-of -paynencs problens. trogether, inflation, unenploynent ' and balance-of-palments problens represent an interrelated economic phenonenon of serious social dinensions. Balance.-of -paynents problerns cannot be easily resolved by raising lhe levels of exports over inports, not leasC because of the different 1... v37/386 Engl ish Annex Page 45 degrees of lnflation among the trading partners. when the degrees of inflatlon am)ng the trading partners are different and their trade contacts cover a large sPectrum of conunercial transactlons, as seens to be increasingly the case, the partial rectification of over-all balancercf a)ayments Problens through additional arms exports cannot be regarded as a satisfactory long-tern solution. Indeedt several anong the weapon-export ing countries are also known to have accunulated sizeabLe balance-of-payments deficits. The fact that' throughout the 1970s' at least half of both major neapons-export ing and inporting countries also experienced
**Analysis**
The text appears to be discussing the impact of military spending on the economy, specifically the effects on inflation, employment, and balance of payments. It also touches on the barriers to adapting military technologies to civilian sectors. The focus on economic growth, inflation, and employment suggests a strong connection to economic development and international trade.

**Category**
Economic development, International trade