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Imagine if every country had a military budget of $0...
NHL'er
c00kies
The problem with that, is it's too cheap to gain an advantage. This requires a lot of trust by everyone, as being paranoid would also lead to spending money "just in case" others spend money.
The Lock
Then the corporations create a military budget and google and microsoft become supreme rulers of the world.
Simply put, if not the governments, someone else will.