This thesis attempts to fill a gap identified in the literature relating to the determinants of security expenditure. to Identify and isolate different types of security and para-security expenditure drivers within developing nations given the changes which have occurred during the last ten to fifteen years. The study evaluates the driving forces which underpin security and para-security expenditure in developing countries during the period 1981-1997. It examines and builds on the literature and economic theory - especially defence and welfare economic theory - relating to developing nations in their security expenditure demand. It considers alternative models and frameworks which might be explored and expanded to provide a more comprehensive explanation for this demand.