ABSTRACT
Major changes in international relations in recent years have once again put the question of conversion of resources expended in the arms race on the political agenda. The past three decades have seen numerous expressions of public concern about the costs of the arms race, as well as academic research on the economic consequences of disarmament.1 However, this research has had limited political impact, mainly because even the modest disarmament scenarios in these studies have seemed unrealistic, except in a very distant future. Today this is no longer true. The superpowers have taken the first steps in the elimination of particularly threatening weapons systems. There is progress across the board in global as well as regional European arms control and disarmament negotiations. Several nations have announced unilateral cutbacks in military forces, and others are imposing a de facto freeze on defense spending.2
