PEACE DIVIDEND

noun (Politics) A saving in public spending on defence, brought about by the end of a conflict or successful disarmament negotiations. Etymology: Formed by compounding: a dividend for the public purse because of a period of peace. History and Usage: The idea of the peace dividend originated in the US in the late sixties as people began to speculate about an end to the Vietnam War. In practice, the expected surplus of public money did not materialize in the mid seventies and talk of a peace dividend largely died down until the late eighties. Then it was much discussed as an expected benefit--for the US, other NATO countries, and the Warsaw Pact--of the ending of the Cold War and the resulting disarmament on both sides. Once again, it largely failed to materialize, this time because of the allied involvement in the Gulf War in 1991. Two Senate committees, Budget and Armed Services, have...already held hearings on what has come to be called the 'peace dividend'. That is the money that will become available as military spending is reduced because of improved relations with the Soviet Union. International Herald Tribune 21 Dec. 1989, p. 6 The awful truth may be that the peace dividend, if there is one, will be of less benefit to Europe than to the Americans, who have talked of cutting their defence budget by 25 per cent. Observer 13 May 1990, p. 16