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No country in the world yet comes close to the United States in terms of military spending. In 2014, US military spending reached $571 billion, far ahead of second-place China at $129.4 billion. However, when military budgets are considered as a percentage of a country's GDP, the situation becomes very different.
Saudi Arabia is spending more on its military than ever before, increasing its military budget by 17 percent in 2014. Military spending currently accounts for at least 10.4 percent of the kingdom's GDP, according to estimates from the Stockholm Peace Research Institute (SIPRI). By contrast, Washington's enormous military spending amounts to "only" 3.5 percent of GDP. In China, military spending fell to 2.1 percent.
Israel spent about $23 billion on its military in 2014, and SIPRI estimates the figure was 5.2 percent of GDP. Russia has embarked on a major military equipment upgrade program, bringing the country's military spending to an estimated 4.5 percent of GDP in 2014. This year, according to budget data, the figure has increased significantly, by more than 9 percent, in first-quarter GDP, although that rate of spending growth is certainly unsustainable.
Meanwhile, Saudi Arabia has replaced India as the world's largest importer of military equipment, according to IHS Jane. Between 2013 and 2014, Saudi Arabia's arms imports increased by 54 percent to $6.46 billion. In 2014, Saudi Arabia and the United Arab Emirates imported $8.6 billion worth of military equipment - more than all Western European countries imported. combined.
The flow of weapons is showing some signs of slowing, but the Kingdom continues to strengthen its military to counter regional threats including Iran and the Islamic State. In fact, continued shipments of weapons such as F-15 and Typhoon fighter jets could increase imports by 52 percent to $9.8 billion in 2015.
In 2014, India imported military equipment worth $5.57 billion, remaining in second place in the world. China completes the top three, with $2.6 billion worth of arms imports.
The global market for security systems and security equipment is growing at no less a pace than the arms market. According to research by The Freedonia Group, this market will grow annually by an average of 6.8 percent and will reach $126 billion by the end of 2018.
The fastest growth in the need for security systems will be observed in South and Central America, Asia and Africa. At the same time, the share of electronic security equipment, which already accounts for about 2/3 of the global market, will continue to grow in the coming years.
Russia's share of the global market for security systems and equipment is only about 1 percent. At the same time, domestic systems are quite in demand on the domestic market, and their quality is not inferior to many foreign analogues. According to the website naoxrane.ru, which sells, among other things, security and fire alarm systems and systems of well-known brands for legal entities and individuals, the cost of installing such a system ranges from 20 to 70 thousand rubles, which is quite affordable for both small businesses and apartment owners or cottages.
It accounts for 890 billion in the military budget, and the United States occupies almost 70% of NATO! Military spending on the US and allies is 1.09 trillion or 2/3 of the world.
Since 2011, there has been a downward trend in military spending from both the United States and its allies.
If the decrease in spending in the United States is due to the well-known processes of winding down active offensive operations in Iraq and Afghanistan, then the decrease in spending from allies is mainly associated with the strengthening of the dollar.
The rest of the world outside the US zone of influence is increasing military spending. The main contributions come from China, Russia and India.
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In the table, strategic allies of the United States are marked in red (which implies joint participation in military operations and unconditional support for US actions in the international arena), and states allied to the United States are marked in blue.
In most European countries, military spending to GDP does not exceed 1.5%.
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The United States is reaching an average level of military burden on the economy - about 3.3% of GDP. Expenses were at this level from 1995 to 2005.
In China no more than 2%, and in India an average of 2.5%. However, Russia in 2016 set a record for military spending to GDP.
Never before in modern Russia have expenses been so high - 5.3%. The previous maximum was 4.9% in 2014 and at the time of the collapse of the USSR.
Slightly above 5% is the typical level for Israel over the past 6-7 years. In 2016, Russia was in 7th place in terms of military spending to GDP.
Ahead are Oman, Saudi Arabia, Algeria, Kuwait, UAE, Israel and possibly Qatar (no data on the latter).
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The table on the left is sorted for the top 50 countries of the world.
In relation to per capita expenses, Russia is about $500, which is quite decent, considering the sagging exchange rate.
This is the same as in Germany and more than in Italy, Canada, Spain and even 2.3 times more than Turkey (which is at the epicenter of the war).
Taking into account purchasing power parity and the cost of comparable military equipment, expenses in Russia are only 1.5 times lower than in the United States (per capita), and not 3.9, if calculated at face value, and literally several times higher than in leading European countries.
Although Russia may have parity with the United States, it depends on how you calculate PPP for the military sector (it is somewhat different from the civilian sector).
At least according to formal indications, the intensity of military spending in Russia is now at its maximum. Regarding public sector expenditures, it is at least 50% higher than the historical norm for Russia.
Source: photo archive of Pravda.Ru
First on the list are countries that do not have military force.
IN Andorra The population is protected by the police. IN Costa Rica After the civil war in 1948, President José Figueres Ferrer abolished the army, leaving only police and border control units in the country. In addition, Costa Rica is a party to the Inter-American Treaty of Mutual Assistance, concluded in 1947, so in the event of an armed attack, it will be supported by 21 allies, including the United States and Cuba.
A similar situation exists in Grenada and Liechtenstein: in the first there is only a royal police guard, as well as an agreement with Antigua and Barbados, neighboring states that will provide assistance to it in case of an external threat. Liechtenstein will protect the entire European Union.
Sovereign territory called Marshall Islands has the patronage of the United States and the national police service. Does without an army one of the smallest countries in the world - Nauru, which covers just over eight square miles. The last time Nauru was attacked by the Germans was in 1940, but then Australia came to its aid.
Island state Palau has the USA Compact of Free Association and does not need any forces other than the police. Same situation with Samoa, which entered into a cooperation agreement with New Zealand in 1962.
Solomon islands has experienced ethnic conflict and rising crime over the past 20 years, but the intervention in 2006 by New Zealand and Australia helped bring peace to the Pacific archipelago.
It does without military force Vatican. At the heart of the Catholic Church there is only the national corps of gendarmerie, as well as the pontifical Swiss Guards guarding the Pope and the Vatican Palace. Rome is responsible for the military security of the Vatican.
Now let's give in ascending order TOP 10 countries, who spend more on self-defense than others.
Last on the list is Brazil, whose military spending is $36.2 billion per year, that is, only 1.4% of the country's gross domestic product. Recently, after increasing the pace of exports, this state is reducing them, investing money in more promising areas, in the opinion of its leadership.
India is in ninth place on the list. Last year it spent on defense $49.1 billion, which is two and a half percent of its GDP. India exports $10 billion worth of arms annually.
Germany occupies eighth place, slightly ahead of India - $49.3 billion per year and 1.4% of the country's GDP. Next comes Great Britain, whose military budget costs are estimated at 56.2 billion dollars. It also receives $438 million from the supply of military equipment abroad.
The sixth and fifth lines are occupied by Japan and France, which spend $59.4 billion and $62.3 billion on defense, respectively. One percent of GDP is spent by Tokyo and two and a half percent of GDP by Paris.
The fourth place is occupied by one of the richest Arab states - Saudi Arabia, which invests 9.3% of its GDP in the defense budget, that is $62.8 billion. From 2013 to 2014, its military spending increased by 14.3%.
The top three countries in terms of defense spending include countries that have tense geopolitical confrontations in our time - Russia, China and USA.
Moscow is one of the priority arms sellers to the world, receiving eight billion dollars annually from this, our defense spending is $84.9 billion per year and 4.1% of the state's GDP.
China has significantly increased its military budget over the past year, now standing at $171.4 billion, that is, 2% of GDP.
In the near future - $618.7 billion and 3.8% of US GDP.
The White House has proposed a $4 trillion budget for fiscal year 2016. dollars. In total, the budget provides for spending $561 billion on military needs, this amount includes spending $117 million on “countering Russia” in Ukraine and another $51 million on assistance to Moldova and Georgia.
In addition, $8.8 billion will be spent to continue the fight against Islamic State militants in Syria and Iraq, and $14 billion will be reserved for possible counteraction to the growing number of cyber threats. The White House would like to allocate another 58 billion dollars to “unscheduled foreign operations” (it’s impossible to organize a big war for 58 lard, but a couple of local big badabums are quite possible).
Below is a list of countries with the most powerful military budgets in the world.
- USA – $561 billion
According to the draft budget, the country’s defense expenditures reach 561 billion, but back in 2013 they amounted to 640 billion. The United States spends more on defense than the next 10 countries combined. The US's biggest advantage is its fleet of 19 aircraft carriers. The total number of military personnel is 1.43 million, and the personnel reserve is another 850 thousand.
- China – $188 billion
The country's defense spending reaches $188 billion. China is actively and greatly increasing military spending. The strength of the Chinese army is truly impressive. The active personnel are more than 2.285 million people, and another 2.3 million are in the reserve. According to some reports, China is actively practicing industrial and military espionage, which allows it to create analogues of foreign military equipment.
- Russia – $87.8 billion
Two decades after the collapse of the Soviet Union, Russian military power is growing again. Military spending has increased by almost a third since 2008 and is expected to rise by another 44% over the next three years. The total number of military personnel is more than 766 thousand people, and the personnel reserve is 2.485 million people. And these troops are supported by the largest tank force in the world, numbering 15.5 thousand tanks.
- Saudi Arabia – $67 billion
Saudi Arabia's military budget from 2006 to 2010. increased from 31 billion to 45 billion. In 2012, Saudi Arabia spent 52.5 billion on military needs, and in 2013 - 67 billion. The country is constantly increasing its military potential: purchasing huge quantities of weapons, mainly from USA. Thus, one of the largest arms deals was the deal in which the United States sold a batch of F-15 fighter jets to Saudi Arabia.
- France – $61.2 billion
France is actively involved in operations around the world, including the Central African Republic, Chad, Mali, Senegal and other countries. The 2015 defense budget provides for the receipt of a significant amount of weapons systems, equipment and ammunition.
The orders, which will be placed in 2015, will be a continuation of the measures to reform the armed forces that began in 2014. In particular, in 2015, the French Ministry of Defense expects to conclude contracts for the supply of 8 multi-purpose refueling transports, one medium-altitude long-endurance unmanned aircraft system (MALE), and 100 vehicles for special operations forces.
- UK – $57.9 billion
The UK plans to reduce the size of its armed forces by 20% by 2018, with small cuts also affecting the Royal Navy and Air Force. The country's defense budget was 57.9 billion in 2013. According to some military analysts, despite the reduction in military spending, the UK can still gain an advantage over new military powers such as China. First of all, this can be achieved through new equipment that is planned to be put into service, including the aircraft carrier HMS Queen Elizabeth. The total number of military personnel is 205.3 thousand people, the personnel reserve is 188 thousand.
- Germany – $48.8 billion
The country plays an important role in international operations and military relations. The defense budget in 2013 amounted to 48.8 billion dollars, and this is the seventh highest figure in the world. After the end of World War II, the country's population generally expressed anti-war sentiments. Initially, everything was limited to defense forces, but after the collapse of Yugoslavia, Germany began to take an active role in the international arena. The total number of military personnel is 183 thousand people, the personnel reserve is 145 thousand. Compulsory military service in Germany was abolished in 2011 in an attempt to create a professional army.
- Japan – $48.6 billion
Japan has begun to increase defense spending in response to increasingly active territorial disputes with China. The country also began its first military expansion for the first time in more than 40 years, establishing a new base on the outlying islands. The annual defense budget in 2013 was 48.6 billion. The Japanese army is quite well equipped, and there is no shortage of equipment.
Currently, the military personnel reaches 247 thousand, and another 57.9 thousand are in reserve. In addition, Japan has 1,595 aircraft and 131 warships. However, the country cannot have an offensive army according to its constitution.
- India – $47.4 billion
Defense spending in India is expected to rise as more money is needed to modernize the army. In 2013, India spent an estimated 47.4 billion on defense, making the country the largest importer of military products. India is armed with ballistic missiles with a range sufficient to destroy targets in Pakistan and large parts of China. The total number of military personnel is 1.33 million, and the personnel reserve is another 2.14 million.
- Republic of Korea – $33.9 billion
South Korea is increasing defense spending in response to increases in Japan and China, as well as the ongoing threat from North Korea. South Korea's military strength is quite large for a small country. The total number of military personnel is 640 thousand people, the personnel reserve is 2.9 million. The South Korean military regularly takes part in military exercises with the United States.
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Both in 2008 and now, the jump in spending growth is due to US policy. “The Donald Trump administration, in its first year, announced its intention to increase funding for the Pentagon. The increase in costs should ensure the combat readiness and training of military personnel who previously fell victim to the sequestration,” explained one of the authors of the report, IHS senior analyst Guy Eastman.
On December 12, President Trump signed the FY 2018 defense budget. Total spending is planned at $692 billion, of which $626 billion will go to basic expenses, the remaining $66 billion to the so-called Overseas Contingency Operations (OCO) fund, which finances the American military presence outside the country. In 2017, the American defense budget was almost $643 billion.
Following the United States, the military spending of its NATO allies is growing. Eastern Europe in general will become, according to analysts, the region of the strongest growth in defense spending. This is due to the need to fulfill NATO’s condition of allocating at least 2% of the GDP of participating countries to defense, as well as fears of the Russian threat, the IHS report notes. By the beginning of 2017, only five of the 28 alliance countries met this standard: the USA, Greece, Great Britain, Estonia and Poland. Latvia, Lithuania, Romania and Türkiye will join them next year, according to IHS analysis.
Countries in the Middle East and North Africa have also increased military spending due to the difficult situation in the region, the report indicates. Saudi Arabia entered the top five world leaders - in 2017, the kingdom increased its defense budget by $0.9 billion, to $50.9 billion. Compared to 2016, Iran's military spending increased - it ranked 18th in terms of military budget in 2016 , Iran rose to 15th place in the ranking. “We expect defense budgets to continue to grow, but growth will be limited by a cautious approach to government spending,” said IHS chief analyst and report co-author Craig Caffrey.
Photo: Faisal Al Nasser/Reuters
Against the trend
Russia's defense spending continues to fall for the second year in a row, the authors of the IHS report indicate, explaining this by the worsening economic situation in the country. According to the study, in 2017, Russia dropped out of the top five countries with the largest defense spending, falling from fourth to sixth place. Russia was overtaken in this ranking by Great Britain and Saudi Arabia ($51.2 billion and $50.9 billion in constant 2017 dollars, respectively).
According to IHS, Russia's defense budget in 2017 was $47 billion compared to $52.3 billion a year earlier (in constant 2017 dollars). Report co-author Caffrey points out that Russia's defense budget was down 10% in 2017 compared to its peak in 2015. The expert predicts a further drop in Russian defense spending in 2018 by 5%. Caffrey points out that Russia will continue to modernize its military, but defense budget cuts will affect the pace at which modernization proceeds.
The previous HIS Markit annual report, published in December 2016, also ranked Russia as having the highest defense spending. Then the authors of the study noted that for the first time it dropped out of the top five, ending up in sixth place - its military budget amounted to $48.45 billion in constant 2016 dollars. However, when recalculated in constant 2017 dollars, the new report again placed Russia in the top five for 2016 with $52.3 billion.
In April 2016, another think tank, the Stockholm Peace Research Institute (SIPRI), presented different data. Russian military spending in 2016 was $69.2 billion, and the country was among the top three leaders by this indicator, second only to the United States and China. According to SIPRI, Russia also went against the trend, but in a different way: reducing military spending in oil-producing countries. The SIPRI methodology includes “all possible expenses for military activities” - from paying off the debt of military-industrial complex enterprises to banks (amounting to almost $12 billion) to benefits to veterans.
Until 2017, Russia’s military spending, especially its investment component, grew by tens of percent per year, Vasily Zatsepin, head of the military economics laboratory at the Gaidar Institute, told RBC: “As long as Western countries were gradually reducing their defense spending, Russia was increasing it.” But in the past year, according to Zatsepin, Russia has reduced its defense spending by almost 25% compared to the previous year.
The turning point, according to Zatsepin, was caused by the conflicts in Syria and Ukraine, participation in which hit the country’s economy, including due to international sanctions and “unsustainable military expenses.” As the expert notes, Russia still had to reduce defense spending when the country’s economy “no longer showed signs of growth.”
Russian President Vladimir Putin, speaking at the annual press conference on December 14, also noted that in 2018 defense spending should amount to 2.8 trillion rubles. At current exchange rates, this equates to about $47.7 billion. In June, in an interview with film director Oliver Stone, Putin spoke about his intention to reduce military spending in the next three years.
