74countries in1982andfor81countries in1979and1981,indicate thata 1percentchangeinpercapita GDPimplies approximately a0.9percentchangein percapitamilitary spending. Inotherwords,percapitamilitary spending tends toincrease about90percentasfastaspercapita GDP.(Theresult, basedOn cross-section data,isalmostthesameastheresult fromtime-series data.) The crass-section regression analysis suggests thatthepoorercountries dospenda slightly higherpercentage oftheirGDPformilitary purposes thandothericher countries, butthisresultisnotstatistically significant atthe95percent confidence level. B.Economic andsocialconsequences ofthearmsrace anddisarmament 379.Thearmsracehasmajoreconomic andsocialconsequences. First,military expenditures useuplargeamounts ofrealresources, including skilled labour, industrial capacity andessential rawmaterialS, thereby contributing toinflation inmanysectors. Second, military research anddevelopment notonlyusevaluable resources directly, butalsodeprive thecivilian economy ofmuch-needed expertise. Third,international tradeinarmshasbecomeincreasingly important in recentyearslatthesametime,theproduction ofarmshasbecomesubstantial in someofthedeveloping countries aswellasinmostofthedeveloped countries. In contrast, asignificant degreeofdisarmament couldrelease sufficient resources to accelerate theworldeconomy andimprove thelivingconditions ofalltheworld's people, including thosemostinneedinthepoorest countries. Selected aspects of theseissues areconsidered below. /...A/ 40 /5L9 English Page 190 I. Use of real resources for military purposes 380. l.,lodern military establishments place slgnificant "procurement'r demands on a wide range of industrial enterprises. Some of these enterprises exist solely to satisfy military demands. others supply both mititary and civilian customers with simiLar products such as transport vehicles and office equipment' although the military variants ofLen have more stringent requirements for the quality of theproducts. In additionf all these suppliers of finished industrial goods to the rnilj.tary place related demands on the supptiers of components, who in turn reguire processed and basic raw materials. 381. In the major arms-prducing countries, military procurement of industrial goods typically accounts for betr.feen 13 and 22 per cent of military expenditures- This procuremen!, hoeever, refers only to purchases of "major{ equipmentt thus it tends to understate tbe true value of manufacturing output generated by military demands, which also includes produccion of components, spare parts and the wide variecy of industrial products that are used by military establishments but are other$rise indisti ngu i sha ble from civilian products. For exampl-e, in the case of
**Analysis**
The text discusses the relationship between economic development and military spending, highlighting the impact of military expenditures on the economy and society. It also touches on the topic of disarmament and its potential benefits for the global economy and living conditions.

**Category**
Economic development, Industry