ECONOMIC-ASPECTS OF DISARMAMENT - ARMS-RACE AND ARMS-CONTROL ISSUES

Both the arms race and arms control and disarmament must be understood in order to study the economic aspects of disarmament. The end of the East-West arms race by no means implies that the arms race has come to an end, as all of the regional arms races continue and others could develop in several areas of tension and conflict, including the successor states to the former Soviet Union and the nations of east central Europe. Arms control is by no means restricted to the East-West arms race but can also apply to regional arms races. While there are potentially major pins from disarmament, particularly over the long term, in the short term disarmament can lead to the unemployment of labor, capital, and other resources. Policies to deal with the economic aspects of disarmament should focus on maximizing its real benefits and minimizing its real costs.