developing states. These developing states are compelled to purchase arms to maintain
their regional power status as well as due to the notion that building up an arms arsenal
is a prerequisite for development. Consequently, resources may be diverted from other,
civilian uses, including public services. China, France, Russia, UK, Germany, and the United
States are the six largest arms exporters, supplying over 90 percent of all international arms
transfers. Annual arms imports tripled between 1960 and 1980, and rose from US$14 billion
in the early 1960s to US$35 billion in 1994 (Levy and Sidel 2002). In 1993, the United States
was responsible for 47 percent of arms sales (in US dollars), the United Kingdom made 20
percent of the sales, Russia had 12 percent, Germany 5 percent, France 4 percent, and
China 4 percent. 58 percent of the imports went into developing countries and 42 percent
into developed or industrialized states. However, only 7 percent of the exports were from
developing countries; 93 percent came from industrialized states (Levy and Sidel 2002).
The extensive arms imports of developing countries have to be paid for somehow, and
given the finite nature of economic resources, other aspects of the economy are likely to be
affected. Since developing states are in greater need of improvements in social, health, and
education services, the impact of purchasing arms is more detrimental for their societies than
for the populations of developed states that have established social welfare and health care
systems. It is interesting to note that a significant proportion of arms exports are made
to non-democratic states, which are more likely to divert resources from welfare to warfare
since they are less constrained by public opinion than democracies.
The economic costs of war and arms acquisition result in significant decline in health
and human services as well as damage to economic development. Particulary in develop-
ing states, higher levels of resources spent on military expenditures affect services such as
education, public health, housing, and nutrition. Moreover, there are more general effects
on development as the civilian sectors of the economy suffer at the expense of the defense
sector.
8