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According to the actual report the indicies they use are:

 


 

Which strikes me as somewhat simplistic just comparing military and health budgets and measuring heavy weapons tilts the index towards industrialised countries. I would imagine a stronger measure would be looking at how much of a role in civil government the military has and how deployed into the community the military force is. Which would show up just how militarised many third world countries are that may have low numbers of heavy weapons per capita and low cost military budgets.


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