The Limits of the Virtuous Circle
The Limits of the Virtuous Circle
By removing the impediments to development that militarization and war produce,
demilitarization and peace help create the conditions that support and encourage economic
and political development. The first and perhaps most obvious is that demilitarization and peace may facilitate both economic and political development, but they do not guarantee them.
For economic development to be self-sustaining, or even viable, a sufficient quantity and quality of productive
resources must be channeled into a web of mutually reinforcing investments in human and
physical capital. Among these, the right mix of programs of education, health care,
infrastructure capital formation, and investment in production capital are the most important.
All of these programs are expensive. Militarization and war divert or destroy considerable
quantities of the required resources, making economic development exceedingly difficult to
achieve. But the fact that demilitarization and peace make the necessary resources more
available does not by itself assure that they will be effectively mobilized and properly used.
Corruption can also divert vast quantities of critical resources, undermining development. So
can utter incompetence, corruption’s first cousin.
Even the presence of sufficient foreign development aid to make up for any deficits in requisite
resources domestically available does not guarantee successful development. The effectiveness
of foreign development assistance can also be crippled by corruption and incompetence. More
than that, in the face of the best intentions of donor organizations and recipient governments,
poorly designed and implemented development assistance programs can undermine
development by actually encouraging corruption and failing to penalize incompetence. Ill-conceived
projects, backed by the authority of high status donor organizations and
governments, have also been known to direct the attention and resources of recipient
governments away from projects that might look less impressive but are actually far more
important to effective development.
Corruption has been a central issue in the international development community since the late
1990s, when the World Bank and other international organizations launched anti-corruption
missions worldwide. Most of the discussion to date has centered on how practices within
recipient governments of less developed (and transitional countries) have interfered with their
political and economic progress. But it is worth noting that problems with the ethics of
economic development advisers and/or development organizations, and corruption originating
in some of the practices of the developed world have also interfered with the progress of less
developed countries.
Conclusions
It is clear that in a number of very important ways, peace does facilitate development, and
development does facilitate peace. This mutually reinforcing relationship is a “virtuous” circle in
both senses of the word. But it is tentative, even fragile, and must be carefully nurtured. Care
must be taken to create the conditions that can help make the circle stronger and more robust.
This first of all requires a greater appreciation for the fact that the circle exists, that there
actually is a positive feedback loop between development and peace. If people can be
convinced that encouraging development is not just a good thing to do, but also a serious and
important part of national security strategy, it should be much easier to build political support
for policies that encourage real development, and thus mobilize the economic resources
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necessary. So much the better if they can also be convinced that by virtue of its effects in
promoting peace, improving the level of development in other parts of the world would also
raise their own economic status.
In the end, the fact that there is a virtuous circle between development and peace makes it
easier to achieve both. That is encouraging. But it does not relieve us of either the
responsibility or the hard work required to make this hopeful connection effective. The good
news is we do not need to cling so tightly to the threat or use of military force as a guarantor of
security, and continue to trade off our economic wellbeing and our civil liberties against our
deeply felt need to be safe. We can, at the same time, make this world more prosperous, freer
and more secure.
Lloyd J. Dumas is Professor of Economics, Political Economy and Public Policy at the University f Texas at Dallas.