During the 1990s, military spending, arms procurement and defence
industrialisation have all increased rapidly in East Asia. Although
these developments do not constitute an arms race, they
nevertheless have important implications for suppliers of defence
equipment, for arms control and for regional stability. This paper
assesses trends in the defence spending of East Asian states,
particularly in the light of the economic crisis, which began in
mid-1997. It also focuses on three closely-related issues: the
nature of the regional market for defence equipment; defence
industrialisation; and the effect of trends in defence procurement
and industrialisation on East Asian states' military capabilities,
and on the regional military balance.
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