My hypothesis is that countries which spend more on their military spend less on development, and vice versa.
My prediction is that countries which spend more on the military (expressed as a percentage of GNP) will spend less on development assistance (expressed as a percentage of GNP) and that countries which spend less on development assistance spend more on the military.
I ran the numbers with a small set of data and it appears to be true, supplemented by the figure on page 330 of Sach’s book The End of Poverty
|Country||Defense Expenditures as a Share of Gross Domestic Product (1995)||Aid as %||defence/aid|
For some reason this appears to be a zero sum game.