The Disarmament Dividend: Challenges for Development Policy

. In 1990-1991, worldwide military expenditure amounted to $950 billion. This bill could be reduced by the year 2000 by over $300 billion.. . Excessive military expenditure jeopardizes development prospects. . Policies to achieve transparency and to strengthen military security arrangements should be a priority. . Excessive military expenditure is stimulated by supply-side pressure on the part of producer countries, including a number of OECD Member countries. . Donors should consider concerted incentive policies such as defence conditionality in economic aid.