The Impact of the Arms Race on the Economic Growth of the United States and Russia

Maimunah Sambas; Guntur Eko  Saputro; Djamarel Hermanto; Khairul Rizqiah

doi:10.55227/ijhess.v3i6.965

Authors

Maimunah Sambas Ekonomi Pertahanan, Fakultas Manajemen Pertahanan, Universitas Pertahanan RI
Guntur Eko Saputro Amerika and Rusia
Djamarel Hermanto Amerika and Rusia
Khairil Rizqiah Amerika and Rusia

DOI:

https://doi.org/10.55227/ijhess.v3i6.965

Abstract

The arms race between the United States and the Soviet Union (Russia) during the Cold War had a significant impact on the economic growth of both superpowers. This study examines how the allocation of vast resources for military purposes and threats affected other sectors of the economy. By analyzing historical data on military spending, industrial production, investment, and GDP. The research found that the arms race puts huge pressure on the state budget and creates a trade-off between military spending and investment in productive sectors, which ultimately hampers long-term economic growth in both countries. This study uses secondary data such as journal books, reports from Publish or Perish, Google Scholar, related and relevant websites regarding the arms race and its impact on economic growth through the library research method. The data collection technique used is data triangulation. The purpose of this research is to analyze the impact of the arms race between the US and Russia on the economic growth of both countries. Therefore, it is expected to provide insight and reference for the government in formulating policies regarding the arms race carried out by other countries. The results of this study found the negative impact of the arms race and the importance of placing resources wisely for sustainable economic growth. The impact of the United States and Russia's arms race can hamper long-term economic growth and welfare levels in both countries. Therefore, diplomacy of international cooperation and de-escalation of tensions are necessary to avoid an arms race due to uncontrolled increase in military spending

References

Cindy Mutia Annur. (2023, May 9). Bujet Militer Dunia Membengkak Imbas Perang Rusia-Ukraina, Ini Negara dengan Anggaran Terbesar. Databoks. https://databoks.katadata.co.id/datapublish/2023/05/09/bujet-militer-dunia-membengkak-imbas-perang-rusia-ukraina-ini-negara-dengan-anggaran-terbesar

Diego Lopes da Silva. (2022, October 29). Autocracy is on the rise: Should we expect military spending to follow? Stockholm International Peace Research Institute .

Djamarel Hermanto. (2023). arms race and strategic interaction. In Mata kuliah Ekonomi Makro (pp. 1–20). Universitas Pertahanan RI.

Dunne, J. P. (2011). Military Spending, Growth, Development and Conflict.

Fithrah Abdul Malik. (2023, May 7). Dampak Ekonomi dari Persaingan Senjata antar Negara Superpower: Menjaga Keamanan dengan Mengorbankan Kemakmuran? Kompasiana. https://www.kompasiana.com/fithrahabdulmalik20212474/645699c44addee7613621b32/dampak-ekonomi-dari-persaingan-senjata-antar-negara-superpower-menjaga-keamanan-dengan-mengorbankan-kemakmuran

Herman Schwartz. (1998). The political economy of arms racing: A post Keynesian view. Journal of Economic Issues, 32(2), 545–552. https://doi.org/https://doi.org/10.1080/00213624.1998.11506029

Irene Sarwindaningrum. (2023). Rusia Alokasikan 40 Persen Anggaran Nasional untuk Perang. https://www.kompas.id/baca/internasional/2023/11/28/40-persen-anggaran-rusia-dialokasikan-untuk-perang

J. Moleong Lexy. (2002). Metodologi Penelitian Kualitatif. Remaja Rosdakarya.

J. Paul Dunne, & Nan Tian. (2013). Military expenditure and economic growth: A survey . The Economics of Peace and Security Journal, 8(1), 5–11.

John M. Treddenick. (1985). The Arms Race and Military Keynesianism . University of Toronto Press, Canadian Public Policy / Analyse de Politiques , 11(1), 77–92.

Korinti Venesia Pandia, Yudi Sutrasna, & Djoko Andreas Navalino. (2022). Pengaruh APBN Produk Domestik dan Pertumbuhan Ekonomi Terhadap Anggaran Pertahanan T.A 2010-2020. Jurnal Inovasi Penelitian , 2(8), 1–14.

Lyle J. Goldstein. (2021, October 13). The Growing Arms Race Between the United States and Russia. The National Interest. https://nationalinterest.org/blog/reboot/growing-arms-race-between-united-states-and-russia-194818

Mae. (2023, December 25). Belanja Militer AS Rp 13.700 Triliun, 4 Kali Lipat. CNBC Indonesia , 1–2. https://www.cnbcindonesia.com/research/20231225104820-128-500168/belanja-militer-as-rp-13700-triliun-4-kali-lipat-apbn-ri

Maria Ulfa. (2022, February 24). Perbandingan Kekuatan Militer Rusia dan Amerika Serikat Tahun 2022. Tiro.Id.

Michael D. Ward, & David R. Davis. (1992). Sizing up the Peace Dividend: Economic Growth and Military Spending in the United States, 1948â€“1996 . American Political Science Review, 86(3), 748–755.

Mohamad Anthoni. (2019, May 5). Indonesia dan ASEAN antisipasi perlombaan senjata pascapakta INF. ANTARA.COM. https://www.antaranews.com/berita/856918/indonesia-dan-asean-antisipasi-perlombaan-senjata-pascapakta-inf

Nan tian, Diego lopes da silva, Xiao liang, & Lorenzo scarazzato. (2024). Trends in World Military Expenditure 2023. https://www.sipri.org/sites/default/files/2024-04/2404_fs_milex_2023.pdf

Raimo Väyrynen. (2023). Economy, Power, and the Arms Race. In: Raimo Väyrynen: A Pioneer in International Relations, Scholarship and Policy-Making. In Pioneers in Arts, Humanities, Science, Engineering, Practice (Vol. 28, pp. 187–218). Springer. https://doi.org/https://doi.org/10.1007/978-3-031-13627-6_7

Revo M. (2024, January 5). Bukan RI, Ini Negara dengan Anggaran Militer Terbesar di ASEAN. CNBC Indonesia . https://www.cnbcindonesia.com/research/20240105060657-128-502902/bukan-ri-ini-negara-dengan-anggaran-militer-terbesar-di-asean

Robert J. Barro. (1991). Economic Growth in a Cross Section of Countries. The Quarterly Journal of Economics, 106(2), 407–443.

Shafa Nabila Syaharani. (2023, May 8). Perlombaan Senjata Antar Negara Adidaya: Apa Saja Implikasi dan Konsekuensi Strategis Bagi Keamanan Regional dan Global? . Jurnal Post. Shafa Nabila Syaharani

Stefan Hedlund, & Niclas Sundström. (1996). The Russian Economy after Systemic Change. Europe-Asia Studies, 48(6), 887–914.

Sugiyono. (2013). Metode Penelitian Kuantitatif, Kualitatif dan R&D (Cetakan ke 19). ALFABETA, CV.

The Economist. (2022, February 26). The economic consequences of the war in Ukraine. The Economist. https://www.economist.com/finance-and-economics/2022/02/26/the-economic-consequences-of-the-war-in-ukraine

University of Malaya. (2017). The economic consequences of the arms race—military spending is harmful for growth. Phys.Org, 1–2.