Guns versus Butter – A Commentary on Defence and Social Sector Spending in South Asia

Abstract

The present study is an attempt to understand government policy imperatives in the areas of defence, and social sector, among five less developed and developing economies of South Asia – India, Pakistan, Bangladesh, Sri Lanka and Nepal. The objective of the study is to link government policy to social outcomes, and therefore to critique the broad parameters that govern public policy in these countries. It further discusses the limitations placed by neo liberal ideology that dominates policy decisions in the region, on both income and expenditure considerations for government finance.

The study also tries to understand the impact of regional relations on military and security considerations in the sub continent; and how these considerations in turn impact democracy and public good. In the context, it seeks to evaluate the macroeconomic considerations of “Guns versus Butter” which guide governments to decide on allocating finite resources between defence spending, which has limited social benefits, and the social sector.