Defense Budget Growth and Inflation: A Wavelet-Based Study of the U.S. and Britain

Despite the extensive theoretical connections between defense budget growth and inflation, empirical findings based on traditional time-domain methods have been inconclusive. This study reexamines the issue from a time–frequency perspective. Applying continuous wavelet analysis to the U.S. and Britain, it shows empirical evidence in support of positive bilateral effects in both cases. In the bivariate context, U.S. defense budget growth promoted inflation at 2- to 4-year cycles in the 1840s and at 8- to 24-year cycles between 1825 and 1940. Conversely, inflation accelerated defense spending growth at 5- to 7-year cycles in the 1830s and at 25- to 64-year cycles between 1825 and 1940. Similarly, British defense budget growth spurred inflation at 8- to 48-year cycles between 1890 and 1940 and at 50- to 65-year cycles between 1790 and 1860. Inflation fueled the growth of defense spending at 7- to 20-year cycles between 1840 and 1870, in the 1940s, and in the 1980s. Preliminary results from multivariate analyses are also supportive, though there is a need for further research that is contingent on advancements in the wavelet method in the direction of simulation-based significance tests.

How Effective Is Fiscal Decentralization for Inequality Reduction in Developing Countries?

The relationship between fiscal decentralization and vertical inequality has long received attention by fiscal federalism theorists. However, horizontal inequality has been largely overlooked. This study will present a novel empirical examination of the relationship between fiscal decentralization, vertical inequality, and horizontal inequality. Specifically, it will focus on how institutional quality and military expenditure affect the fiscal decentralization–inequality nexus across 33 developing countries in the period 1990–2014. Findings indicate that varieties of fiscal authority have a significant effect on distribution of income and ethnic inequality. This depends on the level of institutions and defense spending achieved by these developing countries.

Execution of the state budget of Ukraine in the conditions of the COVID-19 pandemic

The article analyzes the state of formation and efficiency of the State Budget of Ukraine. It has been established that budget expenditures exceed revenues and as a result, the budget has been formed over the last decade with a significant deficit, and the existence of a deficit leads to a movement in the "debt spiral". To implement the budget the Government is forced to borrow additional funds and attract them on acceptable terms, which has become increasingly difficult. Failure to receive the funds leads to late spending. The analysis of expenditures of the State Budget of Ukraine according to the functional classification is carried out, which testified to the main priorities of the state in modern conditions. Given Russia's aggression in the east of the country, it is logically justified to increase security and defense spending. However, it is advisable to review social expenditures, which are quite large in size and do not improve the quality of social services, on the contrary, restrain economic growth, the country's transition to an innovative model of development. In order to increase the efficiency of budget execution, the validity of macro indicators, it is advisable to introduce medium-term budget planning. Budget expenditures must be justified and balanced in order to achieve the most effective results of budget programs and the goals of the budget system of Ukraine. The study identified systemic shortcomings in the State Budget of Ukraine, which are repeated from year to year, as well as those that characterize the special year 2020 associated with the pandemic COVID-19. Emphasis is placed on the functioning of the domestic system of public financial control and its importance in reducing the volume of budget violations, the effectiveness of budget execution, promoting better functioning of the financial and budgetary system, ensuring sustainable dynamics of socio-economic development of the country.

German Foreign Policy in the Face of Current Challenges

The article analyzes the features of German foreign policy on the eve of the September (2021) elections to the Bundestag and the gradual overcoming of the crisis consequences of the coronavirus pandemic. The priorities of the foreign policy based on the value approach remain the European and transatlantic vectors, as well as relations with the main system-forming international organizations. The postulates of value are prompting Berlin to increasingly intensify criticism of Russia and China, incl. due to the signifi cantly increased, from his point of view, threats in relation to Germany and other states of the collective West. Germany still relies on France in European politics. Their tandem continues to determine the political and economic processes in the European Union, as well as to infl uence the formation of the EU mechanisms for overcoming the coronavirus crisis. Despite the rapid restoration of constructive relations with the new American administration, a number of controversial issues remain in bilateral relations, including defense spending and the economy. In recent years, Germany has been able to strengthen its positions in Europe and the world and expects to strengthen its role as a global actor, especially in international organizations. Nevertheless, the German expert community critically refers to its current foreign policy status quo. The author explores the latest trends in German foreign policy, gives an assessment of its development after elections to the Bundestag, pays special attention to the prospects for relations with the Russian Federation.

A Defense Industry Economy: The Concept of Dual-Use Technologies (Spin On & Spin Off) as an Effort to Accelerate the Independence of the Indonesian Defense Industry

The purpose of this study discusses the concept of dual-use technologies (spin on and spin off) in an effort to accelerate the economic independence of the Indonesian defense industry. This research is a qualitative research, the type of research uses a comprehensive analytical study and analytical normative approach. The development of defense technology in addition to aiming at production independence that can compete with other countries' products, must also provide a multiplier effect. The strategy is clear: optimize the added value of the defense industry. To that end, the first step that must be taken is to encourage import substitution for the defense industry and, after the industry develops, the final step is to commercialize or spin off the spillover effect or defense industry multiplier effect in the form of products that can be used for civil benefit. Defense provides a direct advantage of technology and its influence on other sectors, where the spin-off is used by the civil sector which can increase growth. In developing countries, defense spending can increase growth if some portion of expenditure is used for the provision of social infrastructure. Defense spending provides protection for citizens, where internal and external security will increase exchange in the market.

An Interview with Professor Jonathan King. Part I: on Social Responsibility and Activism in Academia

For nearly four decades, Prof. King has served as a faculty member in the Department of Biology at MIT. His work on protein folding and, importantly, misfolding as they relate to human disease and virus assembly has garnered numerous awards and honors: He was a Woodrow Wilson National Fellow, Jane Coffin Childs Fund Fellow, AAAS Fellow, Guggenheim Fellow, and recipient of the National Institutes of Health (NIH) Merit Award. Additionally, Prof. King has taken critical roles at the intersection of science and public policy, including a tenure as President of the Biophysical Society in 1999. In 2003, he received the MIT Martin Luther King Leadership Award, which recognizes individuals who “embody the spirit of Dr. King’s work” [1] in their contributions to the MIT community. Prof. King’s recent efforts have focused on championing federal support for biomedical research as well as criticizing unrestrained defense spending. In part I of this interview, we examine the connections between science, activism, and policy through the lens of Prof. King’s diverse experiences as an academic and activist.