Pakistan's Economic and Security Dilemma: Expanded Defence Expenditures and the Relative Governance Syndrome
Abstract
For many years, conventional wisdom stressed that developing countries such as Pakistan face a guns versus butter trade-off, with increased defense expenditures coming at the expense of improved economic growth. Later, statistical studies suggested that, depending on the circumstances, defense expenditures could either aid or hinder economic growth. However, these studies were silent on the key role governance structures played in affecting the environments in which defense expenditures occur. Our findings suggest that governance patterns relative to defense determine to a large extent whether increased defense allocations interact with the economy in a positive or negative fashion. Unfortunately for Pakistan, defense expenditures have outrun governance to the extent that their impacts on the economy are negative. Furthermore, this effect is likely to persist even if defense expenditures are significantly reduced. Improved governance is the only option open to the authorities in their attempts to neutralize the adverse impacts of military expenditures.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 2008
- Accession Number
- ADA514432
Entities
People
- Robert E. Looney
- Robert Mcnab
Organizations
- Naval Postgraduate School