peace dividend

American  

noun

1. money cut by a government from its defense budget as a result of the cessation of hostilities with other countries.

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peace dividend British  

noun

1. additional money available to a government from cuts in defence expenditure because of the end of a period of hostilities

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Etymology

Origin of peace dividend

First recorded in 1985–90

Example Sentences

Moreover, demographic shifts were generally benign; there had been a peace dividend, which reduced the need for defense spending; and China was producing huge quantities of consumer goods to satisfy demand.

From MarketWatch • Jan. 7, 2026

Many countries have grown accustomed to the peace dividend that followed the end of the Cold War, allowing countries to downsize their militaries and prop up generous social-welfare systems.

From The Wall Street Journal • Nov. 27, 2025

The fall of the Berlin Wall led to the peace dividend that cut military spending to 3% of GDP from 5% at the beginning of the decade.

From Barron's • Oct. 10, 2025

In the years after the Cold War, many western countries reaped a peace dividend.

From BBC • Apr. 23, 2024

Tire peace dividend changed the region once again, and now it is best known for the great gambling casinos of Mohegan Sun and Foxwoods and for the pharmaceutical researchers of Pfizer.

From "The World Is Flat" by Thomas L. Friedman