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The area of knowledge consisting of national decisions as they affect both economic development and the military sector, including the allocation of resources to them has not really been probed in Peru. Except for a United Nations sponsored study 1 , which deals with the issue on an overall South-American basis, there is a dearth of studies in this particular field. From a military point of view, the period 1920-1950 covered two outstanding developments. First, the Armed Forces underwent their first modernization in the XX Century, a process that was considered indispensable, given the pending borlier settlements with Peru's neighbors and the continuing Chilean occupation of Peruvian territory2. This was brought about by the purchase of new military weapons; by sending Peruvian military officers to study abroad, mainly in Europe and the United States; and by contracting the services of Military Missions to Peru, such as the USA for the Navy and Air Force and France for Army. (The French Military Mission in fact predates this period. It came in 1896).

The Role of Military Expenditure in the Development Process: Peru; A Case Study, 1950-1980