ABSTRACT
This chapter attempts to support three unconventional theses: first, Middle East states can afford to sustain the arms race at current levels; secondly, a peace accord would not bring lower military spending; and third, lower military spending would not lead to greater economic growth. Some analysts have argued that few Middle East states can afford to maintain their present level of military might and that, because money is tight, a tacit arms control can be achieved in the Middle East. There is a vigorous debate in the economic literature about whether military spending hurts economic growth. The military may take youths who would otherwise do little, and provide them with good work habits and with training in the use and maintenance of advanced equipment. The case for the theory that military spending places a heavy burden on Middle East economies rests on the assumption that a reduction in military spending would lead, dollar for dollar, to an increase in investment.
