Weapon exports and aid to developing countries
AbstractThe goal of the rich countries should be to aid the poor countries to increase their standard of living but not to increase their holding of weapons. It is shown that a basic conflict of goals arises. The structure of consumption of the recipient countries cannot be influenced by giving the aid in the form of (civilian) goods in contrast to, the transfer of untied foreign exchange. In any case there results a substitution towards the bundle of commodities desired by the developing countries. Compared to that situation, the consumption of civilian goods can be induced to increase by granting a price-subsidy which, however, leads to a smaller increase in. utility than with a transfer in money or kind. Transfers of goods with restricted substitutability and all-or-none schemes are suggested to overcome the conflicts mentioned but they are most difficult to put into practice. To be effective, they imply an interference with the internal affairs of the poor countries which is per se undesirable. The paper suggests .that much more thought should be given to this important problem which is only rarely explicitely considered but which is most difficult to solve. --
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Konstanz, Department of Economics in its series Discussion Papers, Series 1 with number 31.
Date of creation: 1973
Date of revision:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).
If references are entirely missing, you can add them using this form.