P.M. BRIEFING : World Bank President Denounces Poor Nations’ Defense Spending

World Bank President Barber B. Conable today denounced debt-ridden developing countries that spend excessively on defense, noting that some have military expenditures equal to a third or more of their debt service.

Addressing the opening of the annual session of the World Bank and International Monetary Fund, Conable said a group of low-income nations allocates 20% of government budgets to defense.

The meeting of the boards of governors of the two organizations will discuss the developing world’s debt, a capital increase for the IMF and the integration of environmental concerns into World Bank lending.

“In the mid-1980s military spending in the developing countries exceeded spending on health and education combined,” Conable said. “While many components of national budgets have been cut (as a result of the debt crisis) the $200 billion which the developing world spends annually on the military has largely been protected.

“And arms are often a prime source of external debt: military debt accounts for a third or more of total debt service in several large developing countries.”

The World Bank and the IMF have been criticized for not insisting on a reduction of military expenditures in countries to which they recommended economic austerity programs.