ABSTRACT
This chapter examines the patterns of Middle Eastern defence expenditures and explores the linkages between them and other components of the economy, attempting to discern whether military expenditures positively or negatively influence economic liberalization and growth. High military expenditure countries lag considerably behind low military expenditure countries in progress towards improved governance. The chapter aims to assess whether there is a nexus between existing economic and governance structures and military expenditures that explains why countries with similar levels of military expenditures grow at dissimilar rates. The commitment to a large-scale military force can be seen through the proportion of the population which is in active military service. The chapter draws some policy implications for the region’s major countries. A country like India appears to be at the stage where the effects are likely to be neutral and possibly even positive if the trends in improved governance are continued.
