estimated to be some 20 times as r esea rch-i ntensive a6 lhe average non-military proaluct. l0/ Military research and development expenditures are even more hjghlyA/40/519 English Page193 concentrated inafewcountries thantotalresearch anddevelopment. Whereas sixcountries accounted forabout85percentoftotalresearch anddevelopment around 1960,justtwocountries -theUnitedStates andtheUSSR-accounted fora· similar shareoftotalmilitary research anddevelopment around 1975(seeA/36/356, annex,para.148). 390.Theworld's military research anddevelopment hasotherimportant characteristics thatcannot befullyreflected inastatistical portrayal. In paragraphs 82and83ofthereportoftheGroupofExperts onAllAspects ofthe Conventional ArmsRaceandonDisarmament relating toConventional Weapons and ArmedForces (A/39/348 ,annex), thefollowing isstated: "Thenatureofthemilitary RandDprocess withitslonglead-times creates uncertainty aboutthefuturemilitary capabilities ofpotential adversaries. ThishasledtoStatesdeveloping newweapons onthe'action-reaction' assumption thatothersarealsoengaged inthisprocess, eventhoughthere willoftenbenotangible information onthisduring theearlystagesofthe research anddevelopment workonsuchnational projects. "Military relationships aretherefore nOlongerassessed merelyintermsof theforces andweapons existing atanyparticular momentintime,sincethis canchangesignificantly overarelatively shortperiodbecause ofqualitative improvements prQduced through theRandDprocess. Thisinteralia,makesit verydifficult toestablish sustainable criteria fordefining 'balance'." 391.Thetechnological armsracehasgreatly complicated theprocess ofrisk assessment andincreased theefforts neededtocontrol thewholearmsracethrough negotiations. 3.International armstrade 392.Theinternational armstrade-because ofitsrapidgrowth,· visibility and association withregional balance ofmilitary power-hasemerged asamajortopic ofnational andinternational concern sincetheearly1970s. Because thistradeis notofficially recorded ininternational tradestatistics, thereexists no comprehensive bodyofestimates onwhichtobaseananalysis; However, according totheUnitedStates ArmsControl andDisarmament Agency, thearmstradegrew from20.3billion in1972toabout$34.3billion in1982measured inconstant 1981dollars (seeA/39/348, annex,para.69).According totheStockholm International peaceResearch Institute (SIPRI), totalexports ofmajorweapons declined slightly from$23.8billion in1980to$22.1billion in1983(in 1981dollars), andpreliminary estimates for1984showasharpdecline toonly $18.1billion, asaresultofmarketsaturation andthedebtburdenofthe developing countries.!l/ 393.Theactualvalueofthistradeisprobably higherifaccount istakenofthe factthat,whileallarmstransactions involve someformofpayments, suchpayments usually involve oneormoremethods intended tominimize thedirectclaims on foreign exchange reserves. Thesearrangements caninclude barter, fullOr I...A/40/519 English page194 discounted (concessional) prices, hardorsoftloans,third-party payments and offsetarrangements, suchasthereciprocal saleofmilitary hardware oragreement bythesupplier toplaceordersintherecipient nationforcivilian goodsand services. Iftherecipient isadeveloping country, thesameendissometimes accomplished bymakingthecostpayable incommodities orrawmaterials. 394.Armstransactions alsoinvolve, besides thetransfer ofmilitary hardware, large-scale training programmes. Assistance foran.extended interim period by technical personnel fromthesupplier country istypically partofaweapons deal. Crudely estimated, these"services" constituteapproximately 15percentofthe globalvalueofthearmstrade(seeA/36/356, an~ex,para.155). Addingthis estimate of15percentforservices, theglobaltradeinarmsandmilitary services wasabout$39.4billion in1982. 395.Onthesupplier side,thistradehasbeendominated bysixindustrialized countries -France, theFederal Republic ofGermany, Italy,theUSSR,the United Kingdom andtheUnitedStates. According toSIPRIthesecountries accounted for90percentofthecumulative valueofarmsexports duringtheperiod
**Analysis**
The text discusses the arms trade, military research and development, and the technological arms race, which are all related to the field of Science and Technology. Additionally, it touches on international trade and economic development, as the arms trade has a significant impact on the global economy. However, the main focus of the text is on the scientific and technological aspects of military development.

**Category**
Science and Technology, International Trade