Even with globally adequate food availability, large numbers of people remain chronically undernourished today. Evaluation of alternative national and international policies that can help reduce rapidly hunger in the world has been a major theme of the FAP since its inception. Though national redistributive policies may be essential to reduce hunger at a satisfactory rate, the resources available with the developing countries are limited. International capital transfers are thus needed. Among the sources for such funds can be reduction in arms expenditure. With the help of FAP's Basic Linked System (BLS) of national agricultural policy models we have explored consequences for economic development and reduction in hunger of mutual arms reduction and redistribution of parts of the resources thus saved. In this paper, Vladimir Iakimets explores the dynamics of military expenditure reduction as a prelude to designing appropriate arms reduction scenarios.