Trends in World Military Expenditure, 2022: SIPRI

Source: Indian Express

Context:

Key takeaway from the latest data published by the Stockholm International Peace Research Institute (SIPRI), a leading global security think tank.

About SIPRI:

1. Stockholm International Peace Research Institute (SIPRI) is an independent international think-tank institute dedicated to research into conflict, armaments, arms control and disarmament.
2. It was established in 1966 at Stockholm (Sweden).
3. It provides data, analysis and recommendations, based on open sources, to policymakers, researchers, media and the interested public.

Key points:

Countries around the world are spending record amounts on their militaries.

Stockholm International Peace Research Institute (SIPRI) reports a year-on-year jump of 3.7% in worldwide military expenditure for 2022.

This marks an all-time high and follows several years of continuously higher spending.

Factors driving military spending:

• Inflation, Russia’s war on Ukraine, and US efforts to outpace China are major factors driving military spending.
• Defense outlays among NATO members have been going up since 2014 due to Russia’s attack on Ukraine.
• Russia may be a flop on the battlefield, but it could still be a potent adversary in cyberspace and maintains a considerable nuclear arsenal.
• Higher military spending is seen as a sign of deterrence to Russia.

Impact of spending:

1. The spending spree may not be as pronounced as headlines and policymakers sometimes make it out to be.
2. While actual spending is up, as a share of GDP it is 0.1% lower than it was in 2013.
3. The discrepancy suggests economic expansion has outpaced national budgets in areas such as defense, even if dollar figures can appear eye-popping.
4. Rapid, record inflation has forced governments to spend more just to keep up.
5. Inflation has also been a political problem in Germany, which pledged an additional €100 billion for its armed forces in response to Russian aggression.

Conclusion:

• Worldwide military spending has hit an all-time high due to inflation, Russia’s war on Ukraine, and US efforts to outpace China.
• Defense outlays among NATO members have been going up since 2014 due to the Russian threat.
• While actual spending is up, as a share of GDP it is 0.1% lower than it was in 2013, suggesting economic expansion has outpaced national budgets in areas such as defense.