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World military spending slows in 2010: Swedish researchers

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World military spending slows in 2010: Swedish researchers.

World military expenditure is estimated to have been $1630 billion in 2010-a real-terms increase of 1.3 per cent over 2008 and of 50 per cent since 2001. This corresponded to 2.6 per cent of world gross domestic product (GDP) and $236 for each person in the world.

The subregion with the most rapid growth in military expenditure over the 10-year period 2001-2010 was Eastern Europe, at 88 per cent. The bulk of this growth (89 per cent) is accounted for by the Russian Federation. The other subregions with the largest increases since 2000 are North America (80 per cent), North-East Asia (70 per cent), North Africa (69 per cent), and Sub-Saharan Africa (61 per cent). The subregion with the lowest growth in military spending over the past 10 years was Western and Central Europe (4.1 per cent).

The USA's military spending accounted for 43 per cent of the world total in 2010, followed by China with 7.3 per cent, the UK with 3.7 per cent, and France and Russia with 3.6 per cent.

The impact of the global financial crisis and economic recession that broke in 2008 on military expenditure began to be felt in 2010, in contrast to the lack of effect in 2009. However, regional patterns varied considerably. In Europe, countries that had previously enacted stimulus packages - maintaining if not increasing military spending - began to deal with budget deficits, cutting public spending. In most of the major spenders the cuts were relatively small, but in many of the smaller and more vulnerable economies of central and eastern Europe - as well as countries such as Greece, the cuts were more substantial. The overall effect was a 2.8 per cent fall in European military spending in real terms.

Meanwhile in Asia, although most economies did not suffer recession in 2009, previously high rates of economic growth slowed, often at the same time as military spending continued to increase rapidly. Thus, figures for military expenditure as a share of GDP, which had generally shown steady or falling trends in most countries, often rose noticeably in 2010. By contrast in 2010, the rate of growth of military spending slowed considerably in most countries, which will therefore have the effect of rebalancing military spending growth with economic growth rates. China, for example, slowed their rate of increase in military spending considerably in 2010 (3.8 per cent in real terms in 2010 compared to an average of 9.3 per cent from 2001 to 2009), with the lower increase specifically linked to weaker economic growth in 2009 by the Chinese government.

On the other hand, military expenditure in South America and Africa continued to increase rapidly. The increase in South America was 5.8 per cent in real terms, an acceleration in the increasing trend seen since 2003. This increase may appear surprising given the general lack of military threats, positive inter-state relations, and pressing social and economic needs. Part of the explanation lies in strong economic growth, which has allowed most South American countries to increase military spending while its economic burden as a share of GDP has fallen. But this is not the whole story. For Brazil, increasing spending is partly a matter of geopolitics, as the country is playing a more active role in world affairs and renewing its quest for permanent membership of the UN Security Council; acquiring advanced modern military capabilities is seen as an element of this search for increased status. Meanwhile in Colombia and Peru, internal conflicts remain a driver of military spending increases, as Colombia continues its drive to defeat FARC rebels, while Peru has seen an upsurge in violence from the Shining Path insurgency. But in many countries, most of the increase relates to personnel expenditures - a high component of Latin American military spending - as military salaries increase to match rising levels of civilian prosperity.

Military spending in Africa is estimated to have increased by 5.4 per cent in 2010 in real terms, but figures are highly uncertain due to missing data for many countries, most critically Sudan, Libya and Eritrea. The bulk of the increases came from four countries: Algeria, Angola, Morocco and Nigeria, offset by a small fall in South Africa and a further large drop in Chad from the oil-fuelled heights of 2008. The increases in Algeria, Angola and Nigeria are conversely driven by increases in oil revenues.

In the United States, outlays for 'National Defense' plus State Department outlays for Foreign Military Financing (FMF) and International Military Equipment and Training (IMET) in 2010 amounted to $698 billion, an increase of 2.8 per cent in real terms. This also represents a considerable slowing of the rate of increase. The reasons for this are hard to interpret, in that actual 'National Defense' outlays for FY2010 undershot previously projections by $26 billion, while the projection for FY2011 outlays, presented with the FY12 budget request has risen considerably compared to figures presented with the FY11 request. Thus, some spending planned for 2010 appears to have been pushed backward to 2011. For 2012, projections, show a significant drop, though still leaving the total above the 2010 level. The 2012 decrease is due to a $41 billion drop in the request for spending on Overseas Contingency Operations in Afghanistan and Iraq, as a result of the planned withdrawal of US forces from Iraq in December 2011. The request for the 'base Defense budget' actually increases slightly in 2012. United States military spending remains exceptional worldwide, accounting for nearly 43 per cent of the global total. The US has also led the global surge in world military spending since 2001, increasing by 81 per cent compared to 32.5 per cent for the total for the 'rest of the world'. At an estimated 4.8% of GDP in 2010, US military spending represents the highest 'military burden' of all counties for whom SIPRI has data outside the Middle East.
 
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