The end of the cold war does not mean the establishment of a more peaceful world order. The well known British socialist theoretician, the editor-in-chief of International Socialism gives a detailed analysis of the economic growth and the changes of power positions in the world since World War II. He proves that the arms build up did not really decrease when certain disarmament treaties were achieved. He shows the key role of mititarism in the capitalist economy without which capital is unable to keep a balance and that it is exactly this, which undermines the economic balance. He calls attention to the dangers of the instability of the international power relations and the competition of the capitalist power centres.