ABSTRACT
Far East Asia is by far the most dynamic region of the global economy. 1 It is also a region undergoing a significant military build-up, giving cause for concern in some quarters. SIPRI estimates show that in the early 1980s regional defence expenditure rose by almost 4 per cent per annum in real terms. This trend was exceeded in the late 1980s. Regional economic development and rising military expenditures appear to be intrinsically linked, as many Far East Asian countries have pursued defence industrialization as an integral part of their broader industrialization and economic development strategies. Rapid rates of economic growth have enabled these countries to increase defence expenditure without incurring the economic costs experienced elsewhere in the Third World. 2 No formal arms reduction agreements exist in the region and as a reaction to increasing regional insecurity since the end of the Cold War, military expenditure has continued to soar. These trends have led a number of analysts to claim that Far East Asia is participating in a regional arms race which could have unfortunate consequences if it continues unchecked. 3
