Secret transfers between ministries may not be recorded. Corruption may lead to the disappearance of significant sums and, as a result, serious discrepancies in reporting.
The accuracy of SIPRI's reporting may also be reduced where we have had to make estimates of military expenditure for certain countries and years. These estimates are displayed in square brackets in data tables. Estimates are usually made to combine overlapping sources of data that do not agree with each other. In this case, one series is generally raised or lowered by a fixed percentage so as to make it consistent with the other in the year at which they are joined.
In a few cases, estimates of the whole series are made, usually based on expert analyses, to obtain a series more consistent with SIPRI's definition. The extent of estimation varies: in the cases of Russia and Israel, most of the total is from actual data.
In both instances, the estimation process introduces further uncertainty into the data. The second question, as to what is being measured, is also very variable. Where additional data is not available, this is noted in a footnote. However, for countries with a very limited breakdown of military spending, it may not be possible to determine if such items are included. Furthermore, in many countries both developed and developing , expenditure by the MOD may omit numerous significant items of military spending other than pensions and paramilitaries.
Such expenditures may be extra-budgetary i. An example of the latter could be dedicated natural resource funds for the armed forces often used for arms purchases , or from the commercial activities of the military. In some countries, these may constitute a large proportion of total military spending. In the case of extra-budgetary funding, it is frequently possible to find data for the extra-budgetary sources, especially in Europe and the Americas.
However, it is rarely possible to find data for off-budget sources of spending, as these are by their nature not the subject of public accountability and reporting. The problem of untraceable extra- or off-budgetary spending is particularly severe in many countries in Africa and the Middle East, as well as some countries in Asia. In the case of China, SIPRI estimates that various additional funding sources of which extra-budgetary military research and development is the largest, account for about 15 per cent of the total SIPRI estimate for China in Again, if extra- or off-budget sources of military spending exist but it is not possible to obtain figures or reasonable estimates for these, this information is provided in footnotes to the data.
While there may be other political or economic motivations, the primary reason countries carry out military expenditure is to acquire military capability of one sort or other. However, extreme caution should be exercised in drawing a link between a country's level of military expenditure and its degree of military power or military capability, as many factors contribute to military capability. Further, other intervening factors may affect the degree to which military expenditure succeeds in buying military capability.
First, it should be recognized that military expenditure is a flow measure, that is a measure of current resources devoted to renewing, replacing and expanding military capability.
It therefore does not measure the acquired stock of capabilities represented both by previous stocks of equipment, and by accumulated knowledge, experience, infrastructure, organization and doctrines or lack thereof within the military establishment.
For example, while Russian military expenditure plummeted following the collapse of the Soviet Union in , it also retained the Soviet Union's nuclear arsenal, and much of its stocks of conventional weapons. Of course, as such equipment has aged this may well have led to a commensurate drop in Russia's military capability.
Second, the value of military expenditure in creating military capability will vary enormously from country to country. An important factor will be whether the mix of military expenditure between, for example, personnel and equipment expenditure, is appropriate for the types of military task desired by the country.
Many countries have sought to reduce the size of their armed forces since the end of the cold war, seeking to create a smaller but better trained and equipped force suitable for engaging in modern armed conflicts. Conversely, if most of a country's high levels of military spending is going towards maintaining an excessively large army, this spending may not translate into much meaningful military capability.
Another factor will be the efficiency of military expenditure, which may be adversely affected by corruption, poor management and organization of forces, or poor planning and execution of equipment projects.
A further factor is a country's technological absorption capability. Large sums of money spent on major high-tech equipment may be of little value if a country lacks the trained personnel, military organization and doctrine to effectively use the equipment.
As regards specific contributions to NATO peacekeeping operations and donations of economic aid, the European allies are taking on a more than proportional share of the burden.
The shortcomings of European countries were in specific military capabilities, such as mobility of forces and the technological level of their equipment. She is responsible for data on military expenditure in Europe and Central and South America. He is the coordinator of a new project on the Defence Budgeting Process in Africa.
She is the author of chapters on the economics of arms production and the internationalization of arms production for the SIPRI volume Arms Industry Limited and other publications. She is also the author of chapters on military expenditure and their determinants and economic impact, including in New Millennium, New Perspectives UN University, Military expenditure.
Please contact us to get started with full access to dossiers, forecasts, studies and international data. Skip to main content Try our corporate solution for free! Single Accounts Corporate Solutions Universities. In , the German governement spent Worldwide leaders in military spending The United States led the ranking of countries with highest military spending in , with bilion U.
That constituted 39 percent of the total military spending worldwide that year, which amounted to 1. As of , the United States military expenditure amounted to 3.
Defense budget According to the U. Congressional Budget Office, the outlays for defense will rise from a low of billion U. The largest parts of the budget are dedicated to the Departments of the Navy and the Air Force. Between and , it is projected that the United States will spend billion U. Global military spending The value of military spending globally has grown steadily in the past years and reached 1. North America is by far the leading region worldwide in terms of expenditure on the military.
Loading statistic Mosaic Warfare envisions more fractionated, heterogeneous forces, dynamically composed on tactical timelines. In this report, the authors present insights from a policy game to assess alternative governance models for acquiring a Mosaic force. Indian civilian and military leadership face investment choices that go beyond the decision to buy the S To be effective, the S needs to be deployed within a larger integrated air and missile defense system and requires a very skilled military workforce to operate.
Otherwise, it will prove to be a costly and expensive military extravagance. They explore how the value it brings to the nation can be better articulated across government, to partners and to the wider public. RAND defense analyst Ryan Bauer discusses the variety of developmental challenges that the Russian Su fifth-generation jet has experienced, decreasing the likelihood of Russia exporting the aircraft for a number of years despite continued marketing efforts.
The UK Ministry of Defence asked RAND to develop a 'Defence Value Proposition' to provide a better understanding of why defence exists and how the value it brings to the nation can be better articulated to government, partners and the wider public.
This paper identifies underlying and cross-cutting factors that contribute to seemingly intractable challenges in defence equipment acquisition programmes. It also discusses measures that could help address these inefficiencies going forward. This weekly recap focuses on the urban-rural divide in pandemic education, supporting working moms, what makes a good COVID reopening plan, and more.
With U. Infrastructure spending offers one such example. Prioritizing defense spending over infrastructure investment might undermine economic growth. Given that the size and health of the U. Researchers created a prototype tool using data from the Full Cost of Manpower model to help manpower decisionmakers produce consistent and repeatable cost estimations to understand the budget implications of alternative total force mixes. The authors assess the financial viability and current structure of the Transportation Working Capital Fund, which funds U.
Transportation Command operations, and recommend ways to restructure the fund to improve its effectiveness and efficiency. Should the National Guard provide an enduring quick reaction force for Washington, D. Policymakers might ask themselves whether using the National Guard for this mission is actually the best solution.
This appendix to the second edition of The Army's Local Economic Effects describes overall economic effects by state, details by fiscal year from to , and a parsing of data by congressional district for Alabama through Minnesota.
This appendix to the second edition of The Army's Local Economic Effects describes overall economic effects by state, details by fiscal year from to , and a parsing of data by congressional district for Mississippi through Wyoming. This report updates a previous report with findings on the economic activity supported by national-level Army spending in each of the congressional districts for fiscal years through Featured The portion of the national budget that is allocated to defense covers salaries, training, and health care; maintains and purchases arms, equipment, and facilities; funds military operations; and funds the development of new technologies.
Report Gaps Exist Between U. Strategy and Military Capacity May 7, Arena, Mark V. Ausink, John A. Baldwin, Laura H. Bana, Sarah H.
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