ABSTRACT
The opportunity costs of defense--that is, the benefits society would receive if the resources used in military activities were applied for other purposes--have been extremely high for the Union of Soviet Socialist Republics. For several decades, defense has taken a large share--at least one-tenth, usually more--of Soviet gross national product. Defense has competed with civilian heavy industry, receiving a substantial share of metallurgical products and a much larger share of machinery. The opportunity costs of Soviet defense activities have increased and are higher perhaps than at any time since the early 1950s. This stems largely from the slowed growth of the economy in the last decade. Soviet economic growth has been unique among industrialized states in its extreme dependence on growth of the factors of production, chiefly capital and labor, rather than on their more efficient use. Defense includes weapons procurement, military construction, research and development, personnel costs, operations and maintenance.
