ECONOMIC-ASPECTS OF DISARMAMENT - ARMS-RACE AND ARMS-CONTROL ISSUES

Both the arms race and arms control and disarmament must be understood in order to study the economic aspects of disarmament. The end of the East-West arms race by no means implies that the arms race has come t o an end, as all of the regional arms races continue and others could develop in several areas of tension and conflict, including the succes sor states to the former Soviet Union and the nations of east central Europe. Arms control is by no means restricted to the East-West arms r ace but can also apply to regional arms races. While there are potenti ally major pins from disarmament, particularly over the long term, in the short term disarmament can lead to the unemployment of labor, capi tal, and other resources. Policies to deal with the economic aspects o f disarmament should focus on maximizing its real benefits and minimiz ing its real costs.