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US military budget vs. It fell by around half a percent compared to — the first fall since Chart uses constant prices for comparison.
SIPRI has commented in the past on the increasing concentration of military expenditure, i. This trend carries on into spending. But as recent figures have shown, there is a shift in expenditure — from austerity-hit Western Europe and reduced spending by the US, to increased spending in Eastern Europe and Asia.
Back to top Increased spending before and even during global economic crisis The global financial and economic crisis resulted in many nations cutting back on all sorts of public spending, and yet military spending continued to increase.
Only in was a fall in world military expenditure noted — and it was a small fall. How would continued spending be justified in such an era?
Before the crisis hit, many nations were enjoying either high economic growth or far easier access to credit without any knowledge of what was to come. A combination of factors explained increased military spending in recent years before the economic crisis as earlier SIPRI reports had also noted, for example: Foreign policy objectives Armed conflict and policies to contribute to multilateral peacekeeping operations Availability of economic resources The last point refers to rapidly developing nations like China and India that have seen their economies boom in recent years.
In addition, high and rising world market prices for minerals and fossil fuels at least until recently have also enabled some nations to spend more on their militaries. China, for the first time, ranked number 2 in spending in But even in the aftermath of the financial crisis amidst cries for government cut backs, military spending appeared to have been spared.
For example, The USA led the rise [in military spending], but it was not alone.
The increase was particularly pronounced among larger economies, both developing and developed: So this helps explains partly why military spending did not fall as immediately as one might otherwise think. Some nations like China and India have not experienced a downturn, but instead enjoyed economic growth Most developed and some larger developing countries have boosted public spending to tackle the recession using large economic stimulus packages.
Military spending, though not a large part of it, has been part of that general public expenditure attention some also call this Military Keynesianism Geopolitics and strategic interests are still factors to project or maintain power: But the baseline defense budget, by comparison, is largely similar to other years marking a reduction in the rate of increased spending.
By contrast, when it comes to smaller countries — with no such power ambitions and, more importantly, lacking the resources and credit-worthiness to sustain such large budget deficits — many have cut back their military spending inespecially in Central and Eastern Europe.
Perlo-Freeman, Ismail and Solmirano, pp. The increase in oil prices means more for oil exporting nations. The natural resource curse has long been recognized as a phenomenon whereby nations, despite abundant rich resources, find themselves in conflict and tension due to the power struggles that those resources bring internal and external influences are all part of this.
Their increases are largely commensurate with their economic growth. The military expenditure database from SIPRI also shows that while percentage increases over the previous decade may be large for some nations, their overall spending amounts may be varied.
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