World military spending soars in spite of recession

Steyr

http://news.bbc.co.uk/2/hi/business/10184610.stm

World military spending soars in spite of recession
By Jorn Madslien
Business reporter, BBC News

At a time when governments across the world have been borrowing heavily in order to spend, it seems the defence industry has benefited more than most.

Worldwide military expenditure reached $1,531bn (£1,040bn) last year, a 5.9% rise in real terms from 2008, according to Stockholm International Peace Research Institute (Sipri).

But growth in defence spending is not a new phenomenon.

Last year, while deficits ballooned in many countries, the world spent almost 50% more on arms and military operations than it did in 2000, Sipri's yearbook reveals.

Strategic choice
Rather than curbing spending on arms, it seems many governments have deemed it dangerous to risk job cuts in the defence sector at a time of recession.

"Many countries were increasing public spending generally in 2009, as a way of boosting demand to combat the recession," according to Sam Perlo-Freeman, head of the military expenditure project at Sipri.

"Although military spending wasn't usually a major part of the economic stimulus packages, it wasn't cut either."

"For major or intermediate powers such as the USA, China, Russia, India and Brazil, military spending represents a long-term strategic choice which they are willing to make even in hard economic times."

Smaller countries in central and eastern Europe, meanwhile, cut military spending in line with severe budget cuts across the board as they struggled to reduce their large deficits.

Big spenders
The US remains the biggest spender, accounting for some 54% of the total, having increased its military spending by $47bn in real terms, Sipri said.

Since 2000, the US has increased military spending by 63% in real terms, according to Sipri.

Other large countries, both developing and developed, also raised military spending last year, Sipri found.

But spending rose at a much faster rate in Asia and in islands in the Pacific Ocean, where the rate of growth was 8.4%.

And when measured as a proportion of GDP, military expenditure is greater in the Middle East than anywhere else in the world.

Looking ahead, the global aerospace and defence industry could find itself under pressure, however.

"The industry continues to be challenged by moderating defence budgets," according to Deloitte, a consultancy.

USA $661bn
China $100bn (Sipri estimate)
France $64bn
UK $58bn
Russia $53bn
Japan $52bn
Germany $46bn
Saudi Arabia $41bn
India $36bn
Italy $36bn
Source: Sipri

Local-womanizer

In a way I dont find it surprising,for the bigger countries.

I wonder what the figures are for ourselves though?

Morpheus

In the current econic climate, Irelands defence spending can only be described as "TITANIC" in nature ....

hur hur hur

concussion

2010 - 1.01 bn
2009 - 1.03 bn
2008 - 1.05 bn

This, however, includes DF pensions and is a gross figure. The money available for Defence spending, of which ~72% is for wages and duty pay, is as follows (approximately)

2010 - 792 m
2009 - 831 m
2008 - 850 m

PeterIanStaker

the bigger countries are probably getting paranoid.

Avgas

You can exempt defence spending and contracts from some aspects of competition law and therefore openly favour your own country's firms. Just ask the French!:)

Germans and US have discovered that their manufacturing base is so eroded because most of everything is now made in China, etc., that the only proper high valued added manufacturing that takes places is often defence related. So if you aim to boost manufacturing jobs and deliver knock on value... defence orders make some sense.

Many high defence spending is a way of given hidden subsidies to domestic firms to develop new technologies. The Boeing 707 would have probably never flown without work on the B52, and of course...German swept wing research...recycled after WW2.:rolleyes:....and Nokia got their start on phone gadgets making kit for the Finnish military.....and ....its also one reason why the Israeli civilian economy is so strong in IT and software, etc., because its a 'branch' of the military industrial complex......

Just a few thoughts.

Poccington

Avgas wrote: »

You can exempt defence spending and contracts from some aspects of competition law and therefore openly favour your own country's firms. Just ask the French!:)

Germans and US have discovered that their manufacturing base is so eroded because most of everything is now made in China, etc., that the only proper high valued added manufacturing that takes places is often defence related. So if you aim to boost manufacturing jobs and deliver knock on value... defence orders make some sense.

Many high defence spending is a way of given hidden subsidies to domestic firms to develop new technologies. The Boeing 707 would have probably never flown without work on the B52, and of course...German swept wing research...recycled after WW2.:rolleyes:....and Nokia got their start on phone gadgets making kit for the Finnish military.....and ....its also one reason why the Israeli civilian economy is so strong in IT and software, etc., because its a 'branch' of the military industrial complex......

Just a few thoughts.

I fully agree. The fact that this country refuses to actively pursue the creation of any kind of defense sector has baffled me. It's a simple fact that our Defence budget is a disaster, the Government waffles on constantly about creating jobs etc. and we've people coming out of college with qualifications and nowhere to use them.

Unfortunately, our Government would have a heart attack at the thought of a fully functioning defence sector on our super duper "neutral" island.

Morpheus

Great post avgas and poccington, my sentiments exactly. As someone who works in the software sector, I cannot see HOW we are not more actively involved in defence development, software, even smaller hardware, some of the brightest brains in europe are from ireland in this area.

We should and could have easily developed cheap homebuilt small UAV's - and exported them too, we HAD a simple naval construction capability that we should have continued to expand, Timoney could have turned into a major manufacturer and exporter of military APC's and systems.... it turns my stomach that the govt has consistently allowed this sector to shrink / disappear. Its something that I think we could possibly lobby politicians on... not ALL defence equipment is designed to remove life from bodies... amnesty internationals hold/persuasion over some political groups and parties has a lot to answer for. I reckon if you gave ordinary joe-nojobs in the street a choice between working in a high skill high tech company, making "baby-killers" lol or staying on the dole, that he would obviously pick the former!

UltimateMale

Steyr wrote: »

USA $661bn
China $100bn (Sipri estimate)
France $64bn
UK $58bn
Russia $53bn
Japan $52bn
Germany $46bn
Saudi Arabia $41bn
India $36bn
Italy $36bn
Source: Sipri

How come Ireland is not on the list ?

Poccington

UltimateMale wrote: »

How come Ireland is not on the list ?

The list obviously contains info on the countries with large Defence budgets. Considering our budget for Defence spending is under the 1 billion mark, I'd imagine we're just highly irrelevant to the list.