Institution

Small and Medium EnterpriseDevelopment Authority(SMEDA

36-99Employees or Productiveassets of Rs. 20-40 million

State Bank of Pakistan (SME Prudential Regulationseffective since January 2004)

An entity , ideally not being a public limited company, which does not employee more than 250 persons ( manufacturing) and 50 persons (trade / services)2and also fulfills one of the following criteria:
(i)A trade / services concern with total assets at cost excluding land and buildings up to Rs 50 million.
(ii)A manufacturing concern with total assets at cost excluding land and building up to Rs 100 million.
(iii)Any concern (trade, services or manufacturing) withnet sales not exceeding Rs 300 million as per latest financial statements.

Entity engaged in handicrafts or manufacturing of consumer or producer goods with fixed capital investment up to Rs.10 million Including land & building

Punjab Small Industries Corporation

Fixed investment. up to Rs. 20 million excluding land and building

Economic Importance of SMEs in Pakistan

SMEs constitute more than 90 per cent of businesses in Pakistan, all of which function within the private sector and mostly operate in the undocumented informal part of the economy. They represent a significant component of Pakistan's economy in terms of both value addition and employment generation. As they predominantly provide employment to lower income groups, they are also considered an important vehicle for poverty reduction. SMEs, in particular, play a key role in the manufacturing sector by providing 80 per cent of the total employment, contributing over 30 per cent to GDP, and generating one-fourth of the sector's export earnings.

Source: Economic Survey of Pakistan, 2003-04

The ILOSMEDA study titled: Creating a Conducive Business Environment for MSMEs in Pakistan, estimates the share of SMEs in the total employment of labour force of Pakistan to be about 35 per cent3. Approximately, half of the total SMEs activity is concentrated in five sub-sectors; grain milling, cotton weaving, wood and furniture, metal products and art silk. For the past three decades, the fastest growing export industries have been dominated by the SMEs. Export contribution from SMEs emanates from sub-sectors, cotton weaving and other textiles and, surgical equipment4.

Table 3: Share of Key SME Sub sectors in Pakistan

Source: Bari, F., Cheema, A. & Ehsan-ul-Haque. Barriers to SME Growth in Pakistan: An Analysis of
Constraints,June 2003.

Impediments To SME Development in Pakistan
Despite their economic importance, SMEs in Pakistan suffer from a variety of weaknesses, which have constrained their ability to adjust to the economic liberalisation measures introduced by the Government of Pakistan and to take full advantage of rapidly expanding markets of the world. These weaknesses include a relatively narrow base of the formal SME sector and its focus on low value-added products; the absence of an effective business information infrastructure; the inadequacy of the existing support services for entrepreneurship development and

promotion; and a relatively low level of integration in global value chains. In what follows we will discuss some of the major issues that are hampering the establishment of a flourishing SME sector in Pakistan.

Definition
It is extremely important to have a uniform definition for SMEs in order for the support institutions to implement assistance programs for all enterprises in lieu of resource constraints. Such a clarification is not to be found in Pakistan. Despite the fact that it is understood that being an SME refers to a state of disadvantage as a business entity within our economy, as a direct result of its relative size and the ensuing characteristics. The issue of SME definition therefore requires careful consideration, taking into account the position of SMEs in the national economy, the level of economic development, industrial structure, level of technology, the character of labour market and more importantly, the value which society attributes to the concept of public policy. Until there is an acceptable definition of SMEs, applicable across all institutions, their development will remain subject to the whims of the organisations they have to deal with.

Access to finance
Access to equity and finance has repeatedly been identified as a recurring constraint to SME growth and development. Commercial banks apply conservative policies while lending to SMEs. More importantly, the exiting structure of financial sector was developed to serve medium to large enterprises that are organised as formal businesses. Most banks consider lending to SMEs an unattractive venture due to a range of objective and subjective factors. These include high transaction costs, SMEs' inability to comply with tangible collateral requirement, no linkage of financial products with SME sector needs, etc. the banks have also been unable to structure/offer and manage, SME specific medium to long term financing options. As one should expect, the SME sector is not homogeneous, therefore, the attractiveness of an enterprise to financial institutions varies with SME size, structure of organisation, maturity, industrial sector, etc.

Within the Investment Climate Survey9 sample, it was observed that 57 per cent of new investment for Small and Medium Enterprises and 67 per cent of working capital finance comes from internal finance or retained earnings; only about 7 per cent of funds for investment or working capital come from banks or other financial institutions.

Source: Bari, F., Cheema, A. & Ehsan-ul-Haque.Barriers to SME Growth in Pakistan:An Analysis of Constraints,June 2003

• Ministry of Law, Justice and Human Rights
• Ministry of Education
• Ministry of Science & Technology
• Export Promotion Bureau
• Board of Investment
• Federal Bureau of Statistics
• Provincial & Local Governments
• Small & Medium Enterprise Development Authority
• Provincial Small Business Promotion Agencies
• Private Sector Chambers & Associations
• PCSIR, Federal and Provincial Technical Institutes, (which will facilitate SMEs' access to modern technology and related training).

Government's socio-economic strategies and SMEs
The Government of Pakistan has developed a number of strategies for socio-economic development of the country. The following programs define government goals and priorities with respect to development:

• Poverty Reduction Strategy Paper (PRSP)22
• Micro Finance Sector Development Program
• SME Sector Development Program
• Education Sector Reforms 2001-05
• Reform of Financial Sector
• Reforms in Tax Administration

Most of the activities mentioned above include assistance in the creation of a network of institutions stimulating the growth of SMEs. These institutions cover Regional Development Agencies, Business Support Centres, Chambers of Commerce and a number of other organisations which are established as an initiative of local communities. For coordination among all these institutions, an SME Task Force has been established in the Ministry of Industry & Production with SMEDA as its secretariat. But greater coordination and similarity of approach in needed to turn these initiatives into a focused and orchestrated effort.

Requisites of SME-led economic growth
Sustained development of SME sector in any country requires clear and transparent commitment of the government for the development of indigenous SME sector that is able to adapt to changing conditions and compete internationally. In order to achieve this following measures are recommended:

Improve SME competitiveness and regulatory environment
Establish simple business registration to facilitate entry into the formal economy it has been proposed to assist the Government in undertaking measures of awareness building and to support the development of simple, cheap, and easy registration processes and business friendly one-stop-shop arrangements to improve the coverage of registration.
Improve quality standards for industry and labour. This can be achieved by reducing the abuse of power by inspectors through a non-invasive inspection policy and promotion of self-inspection by the private sector.
Enhance export readiness of SMEs through enabling policy measures and an action plan. For this purpose, effective collaboration among SMEDA, Export

Labour issues
Labour laws and regulations in Pakistan14 are considered to be one of the most complicated areas with which a business enterprise deals. Based on concerns related to the rights of labour, there are 56 labour laws complying to which is literally impossible for SMEs. Not only are these laws inherently inconsistent but also entail numerous labour inspections that further impede the growth of small and medium enterprises.

Other issues are related to reforms of local labour offices and active measures of labour market policy still remain outside the scope of the reform agenda being undertaken by the government. Limited training options for middle management, low skills of work force, inadequate vocational training facilities are weaknesses that need immediate attention.

Market constraints
A typical SME in Pakistan caters to the domestic private sector and their activities are mostly concentrated in specific regions. Only 8 per cent SMEs are exporters15 and fewer than 4 per cent are suppliers to the government sector. Some of the issues are related to the inability of SMEs to enter export markets are: tough bargaining price (36%) and supplies on credit (34%) and other are related to absence of public sector programs aiming at internationalisation of SMEs and binding public sector for procurements from SMEs.

High market transaction costs, inefficient contract repudiation and distorted competition are some of the key retardants in the growth of manufacturing and retail firms in Pakistan. Competition from smuggled goods and unregistered companies is also acting as a severe constraint on firm-level SME growth, especially for small and medium scale manufacturing sector.

For growth-oriented exporting firms, sourcing of quality inputs is a major problem due to the lack of a network of reliable suppliers, which adds to the transaction costs. SME firms are not large enough to furnish sufficient demand to be an incentive for high quality input suppliers. Second, in the absence of diverse sources of credit, SMEs have to rely on suppliers' credit to procure high quality raw materials, which prevents them from investing in manufacturing high quality products.

Law and order
The law and order situation in Pakistan has always been regarded as worrisome. According to a survey conducted by Gallup, Pakistan, in 2002, one in five businesses interviewed had been a target of at least one crime during the survey year. Firms in NWFP spend 4.5 per cent, in Sindh and Punjab 1 to 2 per cent of their revenue on security. One in four SMEs consider law and order to be a severe problem16.

Law and order problems weaken property rights and as a result weaken the investors' decision to invest. These problems are clearly linked to the manner in which the law enforcement and criminal justice system functions.

Human resource development

One of the major challenges that SMEs have to face is the emergence of the knowledge-based economy. In order to maintain their competitive advantage these days, nations must continue to innovate, change and upgrade, by nurturing a burgeoning entrepreneurial spirit and skill development of human resources.

Competitive advantage is determined by the productivity with which a country, region or cluster uses its human, capital and natural resources. Pakistan's international competitiveness markedly declined over the past few years17. Part of the blame is shared by lower productivity of the workers. Evidence reveals that median labour productivity, as measured by annual value added per worker, is 25 per cent lower in Pakistan than in India and 35 per cent lower than in China. Labour productivity, however, in Pakistan is 46 per cent higher than Bangladesh18.

Infrastructure
Basic physical infrastructure is a prerequisite to growth and development. According to the Investment Climate Assessment of Pakistan conducted by the World Bank, issues related to power supply, i.e., unscheduled power shut downs and access to connections are irritants which significantly affect the productivity of firms in Pakistan. The survey estimated that a typical business in Pakistan loses 5.6 per cent in annual sales revenue due to just this single factor. Differences associated with firm size recognize that smaller firms are relatively hard hit in comparison to the larger ones because of their inability to arrange alternate power source in the form of private power generators. Regarding power supply, high rates of power, poor quality of delivery and unreliability are serious concerns for SMEs in Pakistan.

Similarly, lack of access to telecommunication facilities and transport also prove detrimental to smooth growth and transition of smaller firms to larger ones. The Investment Climate Assessment notes that the chief problem in the provision of telecom services is the shortage of new fixed line connections, which stand at a mere 0.50.6 million a year for the whole country. A review19 of trade in selected commodities estimates that Pakistan could save up to 16.5 per cent of the value of exports by improving its trade and transport logistics systems. Inefficiency in transport alone is estimated to cost the economy Rs. 320 billion a year.

Globalisation
Of the many impacts of globalisation, the following two are of particular interest to SMEs:

• Acceleration in the pace of growth of world trade
• High levels of competition in the global market place

With the coming of WTO regime, SMEs have to manage growth and change in an environment where the pace, patterns and organization of production will need to be transformed fundamentally. Trade liberalisation at the global and regional levels, the new Information & Communication Technology (ICT) tools have combined to create rich opportunities as well as formidable challenges to all interdependent countries and enterprises. Competition has become increasingly fierce among the global and regional economies and enterprises. Consumer preferences and market standards have become more sophisticated and exacting. Competitive advantage is now determined by several non-price parameters such as quality, health and safety

social equity in employment and production and ecological compatibility of products and processes20. Therefore, to meet the globalisation challenge, there is a growing need for an information repository and dissemination mechanism to sensitise SMEs on global technology trends, rules and compliance cost including facilitation services regarding global issues.

Technology transfer and upgradation
The effectiveness of technology transfer is essential for SMEs to stand their ground in a changing global business climate. The major constraints21 to effectiveness today lie in the high transaction costs associated with the development of capacities and capabilities to manage and generate technological change. Due to these high costs, enterprises in developing countries tend to be ineffective in exploit available technology options, as well as in utilising the transferred technologies. Some of the bottlenecks can be identified as under:

• Inability to acquire sophisticated testing equipment and R&D facilities. SME's see it as a financial problem.
• Lack of skills/experience to operate the high technological machinery.
• Insufficient knowledge of possibilities for technological co-operation.
• Inadequate knowledge and resource base for searching for partners and sources of new technology.
• SME's often lack information on target market quality requirements and regulations as well as knowledge to
• achieve the quality levels.
• Absence of appropriate testing and other quality control or measuring equipment and related infrastructure as
• common facility centres

Coordination and institutional support
Given the limitation of SMEs in terms of technical inadequacy, non-availability of cheap raw materials, inefficient production techniques and limited access to profitable markets, coordinated business support programs are a cornerstone of any system which strives for sustainability. This also maximises the potential for cooperation with private sector organisations to minimise distortions in the market economy.

The Ministry of Industries and Production, through SMEDA, is primarily responsible for the coordination of development efforts for SMEs. Cross-departmental consultations and formulation of programmes and policies are required for an orchestrated SME development initiative. However, SME development to date has been uncoordinated and ineffective. Hence, it requires precisely defined tasks on the part of following institutions:

• Ministry of Industries and Production
• Ministry of Finance
• Ministry of Law, Justice and Human Rights
• Ministry of Education
• Ministry of Science & Technology
• Export Promotion Bureau
• Board of Investment
• Federal Bureau of Statistics
• Provincial & Local Governments
• Small & Medium Enterprise Development Authority
• Provincial Small Business Promotion Agencies
• Private Sector Chambers & Associations
• PCSIR, Federal and Provincial Technical Institutes, (which will facilitate SMEs' access to modern technology
• and related training).

Government's socio-economic strategies and SMEs
The Government of Pakistan has developed a number of strategies for socio-economic development of the country. The following programs define government goals and priorities with respect to development:

• Poverty Reduction Strategy Paper (PRSP)22
• Micro Finance Sector Development Program
• SME Sector Development Program
• Education Sector Reforms 2001-05
• Reform of Financial Sector
• Reforms in Tax Administration

Most of the activities mentioned above include assistance in the creation of a network of institutions stimulating the growth of SMEs. These institutions cover Regional Development Agencies, Business Support Centres, Chambers of Commerce and a number of other organisations which are established as an initiative of local communities. For coordination among all these institutions, an SME Task Force has been established in the Ministry of Industry & Production with SMEDA as its secretariat. But greater coordination and similarity of approach in needed to turn these initiatives into a focused and orchestrated effort.

Requisites of SME-led economic growth
Sustained development of SME sector in any country requires clear and transparent commitment of the government for the development of indigenous SME sector that is able to adapt to changing conditions and compete internationally. In order to achieve this following measures are recommended:

Improve SME competitiveness and regulatory environment
Establish simple business registration to facilitate entry into the formal economy it has been proposed to assist the Government in undertaking measures of awareness building and to support the development of simple, cheap, and easy registration processes and business friendly one-stop-shop arrangements to improve the coverage of registration.
Improve quality standards for industry and labour. This can be achieved by reducing the abuse of power by inspectors through a non-invasive inspection policy and promotion of self-inspection by the private sector.
Enhance export readiness of SMEs through enabling policy measures and an action plan. For this purpose, effective collaboration among SMEDA, Export

Promotion Bureau (EPB), and Pakistan Standard and Quality Control Authority (PSQCA) has been proposed for the development of a policy and action plan to enhance export readiness of SMEs with the help of these institutions. Therefore, the business plans for SMEDA & EBP are being developed so that SMEs are facilitated.

Improving SMEs' access to finance
In addition to SME friendly Prudential Regulations, following steps are required for increasing their access to formal financial sources:
Establishment of support infrastructure to improve coverage of credit information to facilitate quick and reliable loan processing mechanism
Improve access to risk capital by revising tax regulations for risk capital investors
Deepen supply and marketing channel financing to small clients of corporate entities through partial credit guarantee.
Support commercial banks to develop SME dedicated financing capabilities, equity investment products and to invest in capacity building of their staff to deal with the peculiarities of the SME sector.

Improved access to Business Development Services (BDS)
To develop demand for upgrading technical and management skills of SMEs, subsidized training facilities need to be developed, preferably through private sector BDS providers. In addition, cluster specific, demand driven technology common facilities centres should be established to benefit a large number of enterprises.

SMEDA as a facilitator for SMEs.
SMEDA has so far undertaken significant advocacy work, awareness-building activities, and prepared a number of important sector strategies, publications and feasibility studies for SMEs. However, the qualitative fruits of these efforts are yet to reach the SMEs. Thus in order to achieve a significant outreach to the SMEs and fulfil its mandate more effectively, SMEDA needs to be empowered in terms of resources and its autonomous status needs to re-established as the apex body for SME growth stimulation.

Conclusion
As discussed earlier, a number of developed countries of the world depend on their small and medium for technological innovation, revenue growth and employment generation. In fact, SMEs are the foundation upon which the edifice of their large scale sector stands. A similar potential exists in Pakistan. However, to kick start an economic revolution of this nature, if not magnitude, would require nothing short of a shift in cultural paradigm among all the public and private sector stakeholders. The government with its archaic state machinery in the form of ministerial departments and SMEs with their characteristic short-term outlook and non-entrepreneurial attitude, will not be able to provide viable answers to the current and impending challenges that Pakistan economy faces. This situation leads to a non-conducive business environment for SMEs in the country, i.e., low business start-up and survival rates, compounded by the inability of SMEs to graduate from micro to small to medium to large scales. All the growth impediments discussed above are symptoms of this basic problem. Given this scenario, SME development efforts in Pakistan will have to be comprehensive, dynamic and sustainable over a long period. In contrast to

the piecemeal and sporadic (mostly donor induced and politically hyped) approach of the past.

(Iqbal Mustafa has been a member of the Central Board of the State Bank of Pakistan from 1997 to 2001. He was the CEO of Small and Medium Enterprises Development Authority (SMEDA) from 2001 to May 2003. He can be contacted at: mustafa@hujra.com)

(Farrukh M. Khan is a marketing professional with an academic background in development economics. He is currently working as Manager, Marketing Services at SMEDA, Lahore).

End Notes
1. Government of Pakistan has declared the SME sector to be one of the four major drivers of growth, along with Oil & Gas, Telecommunications & Housing & Construction sectors. As the Economic Survey 2003-04, Chapter 3 puts it ‘…the foundation of industrialization could not be established without an efficient network of SMEs’.
2. Enterprises exporting up to US$2.5 Million a year are considered Small by the State Bank of Pakistan and Export Promotion Bureau.
3. Creating a Conducive Policy Environment for Micro, Small & Medium-Sized Enterprises in Pakistan. ILO/SMEDA, SEED Working Paper No.29. (Geneva, 2002).
4. Economic Survey of Pakistan, 2003-04
5. Economic Survey of Pakistan, 2003-04
6. The CMI is a census of all manufacturing sector establishments that are registered under the Factories Act 1934. The data might be underestimated, as not all the registered establishments report their data in the census whereas they might as well be in operation at the time of the census. Data from the latest CMI are for 1995-96 while data from the LFS survey are for 1997-98. However, as there was hardly any growth in the registered manufacturing employment between 1990-91 and 1995-96, it can be safely assumed that the growth between 1995-96 and 1997-98 would be minimal and no extrapolation between these two years is necessary.
7. Obtained by deducting employment in the formal manufacturing enterprises (CMI data for 1995-96) from that of total employment in manufacturing according to LFS data.
8. However, this inference should treated with caution, as it could well be a consequence of poorly designed sampling frames employed for both the Census and Survey data-sets in Pakistan.
9. World Bank Investment Climate Assessment survey was conducted between May and November 2002 by SMEDA in collaboration with the World Bank covering a random selection of 965 mainly manufacturing businesses (90% being SMEs), drawn from 12 largest cities of Pakistan. To date it represents the most comprehensive data set.
10. F. Bari, A. Cheema and Ehsan-ul-Haque, Barriers to SME Growth in Pakistan: An Analysis of Constraints, June 2003.
11. This is also corroborated by recent State Bank of Pakistan Annual Reports (various issues), which show that loans up to a size of Rs. 5,000,000 represent a very small proportion of the credit volume. Table 7, however, does not point to a strong correlation between access to credit and firm-age.
12. The 56% figure is an addition of the three tax related responses: High taxes 28%, High Sales tax16% and high Income Tax Rate 12%
13. In Japan, after the war in 1949, old taxation system was replaced by new system to resolve the problem of incomplete bookkeeping and fear of over-taxation of SMEs. The new system allowed certain tax merits if a tax return is made with a ‘certain formula of quick bookkeeping.’ This system resulted in not only the improvement of financial accounting bu

also the strengthening of financing systems for SMEs.
14. A committee on Reforms in Regulatory Legal and Policy Environment was established in the Ministry of Industries & Production in 2000 with the purpose to coordinate, review, identify issues of concern and formulate recommendations on various laws effecting businesses. Some of their efforts have resulted in the consolidation of labour laws as announced in the Labour Policy 2002 and proposed amendments in the Factories Act 1934, Drug Act 1976, Boiler Act 1923, and Explosives Act 1884, and as such reviewed 101 commercial and labor laws that effect industrial sector.
15. World Bank SME Policy Note 2001. The results of SMEDA-World Bank Investment Climate Survey 2003 also confirm this finding.
16. The survey was conducted for Investment Climate Survey of Pakistan (2003), published by the World Bank Group.
17. World Bank Development Policy Review 2002 reveals that the annual manufactured exports of Pakistan are barely 12 per cent of those of Malaysia, 18 per cent of Thailand's, and less than a third of Philippines countries whose combined manufacturing exports were less than Pakistan's in the mid-1960s.
18. Investment Climate Survey of Pakistan (2003), published by the World Bank Group.
19. World Bank Development Policy Review (2002).
20. For instance, in the wake of implementation of WTO rules, tariff barriers have become an ineffective tool for developing countries to discourage exports which they deem unfit for imports to their economies. To counter this situation, countries of the European Union have come up with non-tariff barriers such the ‘Eco-labelling’ of products with strict environmental and health friendly criteria. For details, visit < http://europa.eu.int/comm/environment/ecolabel/index_en.htm >
21. According to the World Bank's survey for SME Policy Note 2001, a vast number of small entrepreneurs are highly interested (42%) or moderately interested (40%) in acquiring new technology. It further elaborates that SMEs learn their skills from own family (40%), working for another employer (35%), and educational institutions (25%). On sources of technical know-how it reveals Books and journals (30%), other companies working in the same field (23%), internet (13%), and only 4% from formal institutes as a source of acquiring technical know-how.
22. Under PRSP government is following a five point strategy which includes: 1) Macroeconomic stability and Fast growth 2) Investment in Human Resources 3) Government's involvement in particular sectors (including SME) 4) Expansion in social security system and 5) Good Governance.

parlance with Government and would suggest government the required suggestions with respect to investments.
g) Do away with the BOI (Board of Investments) and implement a 'Two way system'. Where it would be:
i. Automatic Approval.
ii. Though Government's Approval.

h) The Investment Commission has to give a statement 'Investment policy' for each year and at the end of the year the commission should give an 'Action Take Report' on the progress made and targets achieved during that fiscal.

i) Depending upon the industry, the government should provide tax holidays in order to woo the potential foreign investors. (India retained the incentives for IT sector for another six to seven years).

j) The government should take a series of measures in attracting FDI by providing location specific incentives.

For example, if the foreign company establishes its branch or subsidiary immediately then the company need not pay 75 per cent of land registration charges. If the company has signed the Memorandum of setting up its base but will start the actual production after 6 months or one year then in that case it would get 15-20 per cent reduction in land registration charges.

Conclusion
In the year 2001 the public debt of Sri Lanka was greater than its GDP (Sri Lanka Budget report, 2001) and the major reason was heavy expenditure on defence sector. If the trend continues then Sri Lanka will find itself in a deep economic crisis from which it will not be able to recover for decades. It is time for the Sri Lankan government to draw a strategy for attracting FDI perhaps by visiting the Fortune 500 companies personally and presenting them the investment benefits in Sri Lanka. The government and the LTTE need to make sure that the peace talks initiated by the support of Norway should not fail.

(Krishna Chaitanya is Assistant Professor at the Dhruva College of Management, Hyderabad)

End Notes
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Geoff Harris, 'The costs of armed conflict in developing countries,' in Geoff Harris, Recovery from Armed Conflict in Developing Countries. An Economic and Political Analysis, (London: Routledge, 1999), p. 12-28.
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S. Kelegama, 'Economic costs of conflict in Sri Lanka,' in Robert I. Rotberg (ed.) Creating peace in Sri Lanka: civil war and reconciliation, (Cambridge, Mass. Washington, D.C.: World Peace Foundation and Belfer Center for Science and International Affairs, Brookings Institution Press, 1999).
Saman Kelegama, 'Economic Cost of Conflict in Sri Lanka', in R.I. Rotberg (ed), Creating Peace in Sri Lanka, Brookings Institution Press, Washington D.C., 1999.
Krishna Chaitanya, 'Growth of Foreign Direct Investment in India', Journal of Economic Research, vol 17, June 2004.
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M. Sarvananthan, (2002b), ‘The International Monetary Fund in Sri Lanka: A Critical Dialogue’, Contemporary South Asia, vol.11 no.1, March, pp77-87, Oxford.
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Ron P. Smith, ‘Military Expenditure and Capitalism’, Cambridge Journal of Economics, vol.1, issue 1, 1977, p. 61-76.
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