STWR - Share The World's Resources

Despite a deepening economic crisis, global military expenditure increased markedly in 2008, rising to some $1.5 trillion. US military spending comprised nearly half of this total, easily outstripping its nearest rival China, according to a report by SIPRI.

UN Big Powers World's Top Military Spenders

Military Spending Sets New Record

Statistical Overview

Link to Report Summary: SIPRI Yearbook 2009

9th June 09 - STWR

UN Big Powers World's Top Military Spenders

8th June 09 - Thalif Deen, IPS News

The world's biggest military spenders last year were countries which were either permanent members of the Security Council or aspiring to hold that privileged rank, according to the latest figures released Monday by the Stockholm International Peace Research Institute (SIPRI).

The United States, China, France, Britain and Russia - all veto-wielding members of the Security Council - were the top five military spenders in 2008, accounting for a hefty 60 percent of global military spending totaling 1.5 trillion dollars.

The four countries desperately knocking at the Security Council door for permanent membership - Germany, Japan, India and Brazil - were not far behind, ranking among the top 15.

The "war on terror" has encouraged many countries to see their problems through a highly militarised lens, says Dr Sam Perlo-Freeman, head of SIPRI's Military Expenditure Project. As a result, he points out, many countries have justified high military spending as part of their fight against terrorism. The wars in Iraq and Afghanistan have cost 903 billion dollars in additional military spending by the United States alone.

The United States accounted for the majority (58 percent) of the global increase between 1999 and 2008, according to SIPRI's 2009 'Yearbook on Armaments, Disarmament and International Security.' Still, China and Russia, with absolute increases of 42 billion dollars and 24 billion dollars, respectively, nearly tripled their military expenditures over the decade.

The countries in the top 15, including India, Saudi Arabia, Iran, Israel, Brazil, South Korea, Algeria and Britain, also made substantial contributions to the overall increase. The 1.5-trillion-dollar global military spending last year represents an increase of four percent in real terms, compared with 2007, and 45 percent over the 10-year period 1999-2008.

"The only winners from increases in global military spending are (U.S.) weapons manufacturers like Lockheed Martin, Raytheon and Northrop Grumman," says Frida Berrigan, senior programme associate with the New America Foundation's Arms and Security Initiative.

She pointed out that almost every sector has been affected by the global economic downturn, "but thanks to the fact that nations around the world are putting more and more of their precious (and ever more scarce) resources into the coffers of their militaries, the weapons industry continues to report regular profit."

According to Berrigan, Lockheed Martin, the world's largest weapons manufacturer, reported sales of 42.7 billion dollars in 2008.The U.S.-based company, which just released its first quarter 2009 report, recorded 10.3 billion dollars in net sales, an increase of four percent over the same quarter last year.

The company makes the Joint Strike Fighter (a 300-billion-dollar programme), the F-22 Raptor, missiles for planes, helicopters and land bases systems, and many other weapons of warfare. Asked whether the rising trend in military spending would continue, Berrigan told IPS: "It is almost impossible to see how we can sustain these continued military spending increases."

But, in the midst of record deficits, record job losses and the world economic outlook in generations, U.S. military spending increased by 20 billion dollars from 2008 to 2009. The SIPRI data, she said, points to a strange corollary to the economic maxim, "A rising tide lifts all boats."

"One increased military budget causes other nations to feel insecure and put more money into their security budgets as well," Berrigan added.

The SIPRI lists the 2008 U.S. military budget at 607 billion dollars followed by China (84.9 billion dollars), France (65.7 billion), Britain (65.3 billion) and Russia (58.6 billion). The 2008 spending by the four aspirants to Security Council permanent membership reads: Germany (46.8 billion), Japan (46.3 billion), India (30 billion) and Brazil (23.3 billion).

According to the Yearbook, almost all regions and sub-regions have shared in the general increase in global military spending over the period 1999-2008. The major exception is Western and Central Europe, "where modest economic growth rates and the lack - as perceived by most countries - of a threat susceptible to conventional military responses has led to almost flat levels of real military spending."

Within this overall trend, however, some Central European countries' aspirations for membership in the North Atlantic Treaty Organisation (NATO) and interoperability have led to increased spending. In contrast, the sub-region with the most rapid growth in military expenditure between 1999 and 2008 was Eastern Europe, with a 147 percent increase.

The SIPRI Yearbook says the bulk of this growth (87 percent) is accounted for by Russia, whose military spending has been driven by high economic growth and the desire to re-establish its major power status. The other sub-regions with the largest increases since 1999 are: North Africa (94 percent), North America (66 percent), East Asia (56 percent), and the Middle East (56 percent).

Link to original source 

Military Spending Sets New Record

8th July 09 - Jorn Madslien, BBC News

Global military spending rose 4% in 2008 to a record $1,464bn (£914bn) - up 45% since 1999, according to the Stockholm-based peace institute Sipri. In contrast with civilian aerospace and airlines, the defence industry remains healthy. The global financial crisis has yet to have an impact on major arms companies' revenues, profits and order backlogs," Sipri said.

Peace-keeping operations - which also benefit defence firms - rose 11%. Missions were launched in trouble spots such as Darfur and the Democratic Republic of the Congo. Another record was set, with the total of international peace operation personnel reaching 187,586," said Sipri, or Stockholm International Peace Research Institute.

Growth industry

As the world's aerospace and defence industry prepares for next week's Paris air show centenary, it seems much of the focus is set to shift away from troubled civilian aircraft makers, which are struggling with reduced orders from recession-hit airlines, towards the companies that make fighter jets and other military hardware.

In total, the 100 leading defence manufacturers sold arms worth $347bn during 2007, the most recent year for which reliable data are available.

Almost all the companies were American or European. Some 61% of the total was accounted for by 44 US companies, with 32 West European companies accounting for a further 31%. Other companies were Russian, Japanese, Israeli and Indian.

"Since 2002, the value of the top 100 arms sales has increased by 37% in real terms," Sipri said. "The US presidency of George W Bush... was a period of continuity in the arms industry. This followed a period of consolidation in the 1990s and early 2000s."

The US aerospace and defence giant Boeing remains the world's largest, with arms sales of $30.5bn during 2007. The UK's BAE Systems ranked a close second, with arms sales of $29.9bn, while Lockheed Martin was third with $29.4bn in sales.

Big spender

The US remains the biggest spender, accounting for 58% of the total global spending increase during the decade, though China and Russia have reduced the gap. Both tripled military spending over the decade, and Russia "is maintaining plans for further increases despite severe economic problems".

Military spending in the Middle East fell slightly during 2008, but Sipri saw this as a temporary drop. "Many countries in the region [are] planning major arms purchases," Sipri said.

One exception was Iraq, whose military budget rose 133% during 2008 when compared with 2007. "Iraq remains highly dependent on the US for ams supplies, with numerous orders planned," Sipri says.

US military spending accounted for 58% of the total global spending increase during the decade, with extra funds set aside to fight the "war on terror".In addition, the wars in Afghanistan and Iraq cost the US $903bn.

The idea of the 'war on terror' has encouraged many countries to see their problems through a highly militarised lens, using this to justify high military spending," said Sam Perlo-Freeman, head of the military expenditure project at Sipri, or Stockholm International Peace Research Institute.

Trouble ahead?

High levels of military spending can cause economic difficulties for even the wealthiest of nations, Sipri insisted. During the eight-year presidency of George W Bush, US military expenditure increased to the highest level in real terms since World War Two," Sipri said.

This increase has contributed to soaring budget deficits," the yearbook states, pointing to how both the Iraq and Afghanistan conflicts were funded "primarily through emergency supplemental appropriations outside the regular budgetary process", funded by borrowing.

"Arms companies may face reduced demand in the future if governments cut military spending in response to rising budget deficits," Sipri observed.

Link to original source

Statistical Overview

8th June 09 - Petter Stalenheim et al, SIPRI