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Defence Expenditure

Published online by Cambridge University Press:  26 March 2020

D. C. Paige
D. C. Paige*
Affiliation:
National Institute
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Extract

In discussions of defence policy and of disarmament there are often references to the economic aspects of defence expenditure. This article is intended to provide a background to such discussions. It is a factual and statistical analysis of the level and pattern of defence expenditure over the past ten years. The sources and methods used in the estimates are described in an appendix.

Type
Articles
Information
National Institute Economic Review , Volume 10 , July 1960 , pp. 28 - 37
Copyright
Copyright © 1960 National Institute of Economic and Social Research

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References

note (1) page 28 The figures given in table 1 and subsequently exclude expenditure on civil defence. This was very small, and— omitting changes in the value of stocks—amounted to only £35 million in 1953, falling to £17 million in 1958.

note (2) page 29 In both Italy and Greece spending has, however, been mainly on manpower rather than defence goods. Since there is substantial under-employment this may entail little real sacrifice.

note (1) page 30 Estimates of Resources devoted to Scientific & Engineering Research and Development in British Manufacturing Industry, 1955 (Department of Scientific and Industrial Research 1958).

note (2) page 30 Industrial Research & Development Expenditure 1958 (DSIR 1960).

note (1) page 33 B. Williams (‘Research & Development in Britain’, London and Cambridge Economic Bulletin, Times Review of Industry, March 1960) estimated defence expenditure at £165-170 million in 1958/59. On the basis of the later DSIR report this is clearly much too low, but the error appears to be in the division of private industry's research expenditure between military and civil work; the total research estimate of £445 million appears correct.

note (2) page 33 Actual expenditure fell short of planned expenditure by over £20 million.

note (3) page 33 Williams, op. cit.

note (4) page 33 Scientific and Engineering Manpower in Great Britain, 1959, HMSO, Nov. 1959, page 14.

note (5) page 33 Weekly Hansard, no. 492, 27 May-3_June 1960, col. 1,004.

note (1) page 34 These are included under the heading ‘employment equivalent of production and research’ in table 8.

note (2) page 34 The coverage of these estimates is very much wider than those officially reported to be engaged on defence production in manufacturing. See Appendix, page 39.

note (1) page 37 These amounts include any gifts of arms by the United Kingdom; but these gifts would also be included on the debit side of the balance of payments.