MILITARY SPENDING: FACTS, TRENDS & ANALYSIS

Pic courtesy: military mortgage center

SIPRI (Stockholm International Peace Research Institute) is an independent international institute dedicated to research into conflict, armaments, arms control and disarmament. Established in 1966, SIPRI provides data, analysis and recommendations, based on open sources, to policymakers, researchers, media and the interested public.

SIPRI Yearbook 2021 has been published and it presents a combination of original data in areas such as world military expenditure, international arms transfers, arms production, nuclear forces, armed conflicts and multilateral peace operations.

Relevant extracts on military expenditure are given below:-

 

World Military Expenditure

 

The growth in total spending in 2020 was largely influenced by expenditure patterns in the United States and China.

 

World military expenditure is estimated to have been US$1981 billion in 2020. Total spending was 2.6 per cent higher than in 2019 and 9.3 per cent higher than in 2011.

 

Military spending increased in at least four of the world’s five regions is :-
• 5.1 per cent in Africa
• 4.0 per cent in Europe
• 3.9 per cent in the Americas
• 2.5 per cent in Asia and Oceania.

 

Impact of Covid-19

 

While the impact of the Covid-19 pandemic on military spending will become clearer in the coming years, general observations about its impact are as follows:-

 

  • Several countries are known to have reduced or diverted military spending to address the pandemic.

 

  • The military burden in a majority of states increased in 2020.

 

  • Most countries used military assets, especially personnel, to support their responses to the outbreak of Covid-19.

 

The Largest Military Spenders in 2020

 

The USA increased its military spending for the third straight year to reach $778 billion in 2020, a 4.4 per cent increase since 2019 but a 10 per cent decrease since 2011.

 

China’s military expenditure is estimated at $252 billion in 2020, representing an increase of 1.9 per cent since 2019 and 76 per cent since 2011. Chinese spending has risen for 26 consecutive years. It is the longest streak of uninterrupted increases by any country in the SIPRI Military Expenditure Database.

 

India’s spending of $72.9 billion, an increase of 2.1 per cent in 2020, ranked it as the third highest spender in the world.

 

Russia’s total military spending was $61.7 billion. This was 2.5 per cent higher than in 2019, but 6.6 per cent lower than the initial budget for 2020.

 

The fifth biggest spender, the United Kingdom, raised its military expenditure by 2.9 per cent in 2020. This was the UK’s second highest annual growth rate in the period 2011–20, a decade that until 2017 was characterized by military spending cuts.

 

Main Exporters and Importers

 

Observations and Analysis

 

  • USA and China are the major influencers in military spending.

 

  • USA continues to be highest spender (way ahead of others including China), trying to retain its most powerful status.

 

  • China’s expenditure figure is 1/3rd of USA, but China could be spending more than it declares.

 

  • The trend of China’s expenditure (Continuous rise in its spending for last 26 years) shows her resolve to enhance her military power.

 

  • USA and China expenditure patterns indicate a beginning of second cold war.

 

  • Covid pandemic has reduced military expenditure in most of the countries.

 

  • India’s amount on military expenditure is although third highest in the world, but is 1/3rd of that of China and 1/10th of that of USA.

 

  • Russia although is trying to regain its lost glory but spending less on military, apparently due to financial constraints and development priorities.

 

  • Arms export is led by USA with major chunk of 37% export market.

 

  • Russia still has a foothold in the military export market with number two position with reasonable figure of 20%.

 

  • China figures in the both the lists of import and export at number 5 position with approximately 5% in both. However it is trying to capture more and more of world military market share.

 

  • India continues to maintain the dubious record of being at number two place in the defence imports list, behind Saudi Arabia.

 

Bottom Line

India cannot match China in defence expenditure.

 

Question

Will India be able to break its dependence on military imports?

 

Wild Thought

Maybe the unrest world over is sponsored by the arms industry.

 

Suggestions and value additions are most welcome

 

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Double Celebration: One year of Blogging and 200th Post

Air Marshal’s Perspective

(Candid and to the point – काम की बात)

Ranked 13th in the list of Top 25 Indian Defence Blogs and Websites

 

 

 

This blog was started in the month of September 2020.  It has been one year since then, with 200 posts.

 

Enjoyed researching topics related to defence, security, geo-politics, technology, leadership and management etc. The posts were interspersed with some humour and quotes.

 

Tried to live up to the motto of the blog – “Candid and to the point – काम की बात”. Most of the posts are short ones (two to three pages), covering the essence of the topic in bullet form.

 

The credit for starting the blog goes to my course mate and friend Col Murali. He provided me the space, encouraged me and held my hand initially.

 

Credit also goes to another course mate Vicky Sheorey for getting me all the equipment needed for video conference and recordings.

 

Sincere Thanks to all the subscribers and readers for the encouragement.

 

To provide a panoramic view of the blog, here are the links to the posts on various topics:-

 

Suggestions and value additions are most welcome

 

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Deception: Key to Chinese Military Strategy

Inflatable decoy (Pic: Courtesy – Reddit)

China regards deception as a key component of military planning, and PLA leaders continue to emphasise on the widespread use of deception.

 

This is particularly evident at the tactical level, where the PLA actively employs wide variety of deception measures.

Decoys

One of the primary methods of battlefield deception for PLA ground forces is the use of decoys.

 

PLA decoys simulate a wide range of equipment including ballistic missile launch vehicles, tanks, aircraft, artillery, and other various types of military vehicles and equipment including small maritime vessels.

 

The PLA uses two types of decoys: inflatable and solid.

 

Continue reading “Deception: Key to Chinese Military Strategy”