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NATO war dividends


---------- Forwarded message ----------
Date: Mon, 12 Apr 1999 17:09:36 -0400 (EDT)
From: Gunder Frank <agfrank@chass.utoronto.ca>
To: agf <agfrank@chass.utoronto.ca>

DEFENCE: War dividends

It may seem a little macabre to look for beneficiaries of the Kosovo
conflict, but then the stock market is not sentimental. Since Nato started
its bombing raids on March 24, shares in British Aerospace and Smiths
Industries have climbed nearly 9 per cent, while GKN is up 8 per cent and
Raytheon by 7 per cent.

There is cold-blooded logic in this. Jane's, a military research group,
estimates that Nato has spent close to $1bn in less than three weeks, most
of it on armaments and fuel. The US, for example, has fired off over 150
cruise missiles, made by Lockheed and Boeing at a cost of $1.2m each, as
well as losing a $35m stealth fighter, also built by Lockheed. Matra's
missiles and Raytheon's laser-guided bombs have also been in action, while
the heavy use of warplanes should benefit BAe, Rolls-Royce and the big US
defence groups that service them and supply spare parts.

Further out, there may be a "war dividend" if countries reassess their
military needs in light of the conflict.

                   ANDRE GUNDER FRANK
250 Kensington Ave - Apt 608     Tel: 1-514-933 2539    
Westmount/Montreal PQ/QC         Fax: 1-514-933 6445 or 1478
Canada H3Z 2G8              e-mail:agfrank@chass.utoronto.ca 

My Home Page is at:       http://www.whc.neu.edu/gunder.html

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