current inffation and its persistence in tines of economic recessl.on and high unenpJ.ol'ment. !!/ 97. Since, as the preceding analysis shows, military outlays have no lohg-terrnpositive effects on econonic growth, they are not necessary either to sustain the technological base of indigenous industry or to rectify trade imbalances anal they agEravate rather than resolve the problems of inflation and unernploynent ' it is reasonable to conclude that the economic adjustnents required for their reallocation will be no more strenuous than those needed for other sectoralreallocations constantly necessitated by a reordering of socio-econonicpriorities. In this respect, at least, pas! experience should provide a promisefor the future. The technological and economic feasibility of disarmament has been already stressed several tines in previous United Nations studles, including the 1972 and 1977 reports. !!/ A recent study of LI industrialized market economieg showed that they would not only have additional employnent opportunities but also irnprove thelr balance of payments if they carried out substantial reductions of 4 to 8 per ceht in their current military outlays, which were estimated to be closeto $1I0 billloh in I98L. AIso, their problens of economic adjustmehts would be substantially reduced if they were to factor in the elenent of expanded trade conlracts with the developing countries, which can contribute tolrards lifting the denand-side constraints on their economies. 56/ 98. Recently published five-year plans of the various centrally planned economies also provide long Ilsts of the soclo-econornic priorities pertaining, for example,to child care, health services, urban housing and sectoral reallocations wlthin industry whlch woul-d gain significantly through a relief from the economic burdensof their current milltary expenditures. 57,/ 99. !'or the developing countries, the 1981 issue of world Developnent Report shows that virtually all those who reduced their nilitary expenditures as a percentage of
**Analysis**
The text primarily discusses the economic implications of reducing military expenditures and its potential to address issues of inflation, unemployment, and trade imbalances. It also touches on the idea of reallocating resources to other sectors, such as industry, employment, and international trade. The text's focus on economic growth, development, and the allocation of resources suggests that the most fitting categories are likely to be related to economic development and international trade.

**Category**
Economic development, International trade