Guns Versus Butter Tradeoff: The Theory of Defense Quality Factor

Abstract

Abstract-The aim of this paper is to reach sound recommendations for a developing country with regards to optimally balancing defense and welfare expenditures for maximum defense effectiveness in this age of increasing budgetary pressures over defense.The paper analyzes the literature concerning the balance between defense spending and the sum of education and health expenditures, addressed as welfare expenditures in this study for simplification purposes. Then, the mechanism of how a qualified human capital affects the quality of defense as a public good is questioned, which lead the study to the theorization of "defense quality factor". This paper introduces "defense quality factor" to the literature of defense economics, defined as the multiplier that converts defense resources into defense effectiveness. The functioning of defense quality factor is demonstrated on a theoretical five-term budget allocation model. Finally, the paper concludes with recommendations for the optimal guns versus butter tradeoff decision for a developing country, in consideration of the defense quality factor theory.Index Terms-Defense spending, defense quality factor, defense welfare tradeoff, guns versus butter tradeoff.

Desenvolvimento humano e gastos militares: as prescrições dos RDHs (PNUD/ONU)

“…A indagação de Josué de Castro (pão ou aço?) veio à tona, nos anos subsequentes, nos estudos sobre a distribuição dos gastos e recursos públicos, pela expressão "manteiga vérsus canhões" (DIKICI, 2015). "O conceito de trade-off em defesa é tradicionalmente conhecido como o dilema 'manteiga versus canhões', ou 'arados versus espadas'.…”

Countertrade Mechanism of Global Arms Trade: Case Study of Indonesia

“…On the other hand, the process of technology transfer is proceeding with difficulty, so that the advantage remains in the hands of the producers, and does not allow the transfer of the ability to produce weapons and other military equipment (see for instance, Brauer & Dunne, 2011;Markusen, 2004). In some cases, buyer countries need to buy them with commodities to obtain this strategic weapon, such as in the case of Sukhoi purchases between Indonesia and Russia in 2007 (Rangsimaporn, 2009;Dikici, 2015;Puspita, 2018). In such a context, it is known that arms trade on a global scale creates an imbalance in position and a lack of value and financial opportunity that a purchaser country might obtain with an existing trade scheme.…”

Теоретическое И Методологическое Обоснованиеизучения Производительности И Продуктивности Врегиональной Экономике

“…Авторы не согласны с позицией латвийской исследовтельницы И. Котане (I. Kotвne), которая использует перевод термина «эффективность» (по-латышски: efektivitвte) на английский язык как efficiency (Kotane 2014), а также с мнением о том, что efficiency -это внутренняя эффективность, а effectiveness -внешняя эффективность(Gronroos, Ojasalo 2004; Оiner 2008) (хотя определённая доля экономической логики в этом всё же есть). Авторы не согласны также с формулировкой, представленной в российском учебнике по микроэкономике: эффективность -это максимальная прибыль (Кurakov 2017).9 Кривую производственных возможностей иногда так и называют в научной литературе -график «пушки-масло» (по-английски: guns and butter curve)(Dikici 2015).…”