In Search of the Peace Dividend
The sense of relief that greeted the end of the cold war was soon joined by an eager anticipation of the peace dividend, an economic rebate after years of massive military spending. In the event the relief was palpable but the economic impact was shortlived. While world military expenditure in 2004 was still six per cent below the 1988 cold war peak, this has to be balanced against an average annual rate of increase over the past six years of 4•2 per cent in real terms. In the three years to 2004, this figure bounced up to six per cent.