Russia in terms of military spending in 2011 for the first time rose to sixth place


By the volume of military spending in 2011, Russia for the first time in its recent history took 6th place in the world, pushing Germany to seventh place, and in dollar terms in Russian military spending in 2011 for the first time exceeded the pre-crisis 2008. 

 In calculating TSAMTO it comes to military spending at current prices (that is translated at the average exchange rate of the U.S. dollar for each specific year).

The calculations used data TSAMTO representing systematization official reports of ministries of finance, defense ministries and governments of the countries for which such information is available, as well as data from the International Monetary Fund, the United Nations, NATO, the Defence Agency EDA, JSCRA (Janes'Sentinel Country Risk Assessment ) and international media reports on the subject of military spending. For the group of countries with the largest military spending, mainly used official records of the United Nations.

The absolute leader in military spending in 2011 is the United States with the index 731 879 000 000 dollars, accounting for 44.63% of global military spending (1,639,972,000,000 dollars).

For comparison: in 2004, U.S. military spending accounted for 46.7% of the world. At the same time, the U.S. GDP in 2004 was $ 11.853 trillion dollars (28.25% of world GDP) and in 2011 — 15.094 trillion dollars (21.7%). By reducing the share index of the U.S. global military spending by only 2.1%, the U.S. share of global GDP fell by more than 6.5%. This suggests increasingly militarization of the U.S. economy.

Next in the ranking of countries with the largest military spending in 2011 followed by China (2nd place, 93.250 billion dollars), the UK (3rd place, 63.567 billion dollars), Japan (4th, 58.4 billion dollars), France (5 place 53.444 billion dollars), Russia (6th, 48.840 billion dollars), Germany (7th, 48.140 billion dollars), Saudi Arabia (8th place, 46 billion dollars), India (9th, 35.229 billion dollars), and Brazil ( 10th place, 31,230 billion dollars).

It should be noted that Brazil in 2011 for the first time, "ousted" from the top ten Italy, which is a measure of 30.223 billion dollars moved in the rankings to 11th place.

In 2011, total world military expenditures amounted to 1.639972 trillion dollars — a record number since the end of the era of the "cold war." At the same time, in the last three years there has been a significant reduction in the trend rate of growth of the world's military spending compared to the pre-crisis year 2008.

The countries with the largest military spending in different ways to overcome the most acute phase of the global economic crisis (2009) and the post-crisis period (2010-2011)..

Of the top ten countries in the annual military spending in 2009-2011. compared to 2008 (2008 is taken as the basic "pre-crisis" since the global recession began in the fall of 2008, and items of expenditure on military expenditures for 2008 were approved at the end of 2007, ie before the crisis) have reduced in dollar terms 5 countries. This is the United Kingdom, France, Germany, Russia and Italy.

From this group of countries, only Russia and Germany in 2011 reached the level of nominal military spending (in dollars) higher than the figure for 2008.

Military spending in the Russian ruble terms increased steadily, but in dollar terms due to the devaluation of the ruble against the dollar in the post-crisis period there was a reduction in military spending in 2009-2010. (The average exchange rate for the U.S. dollar in 2008 was 24.843 in 2009 — 31.74, in 2010 — 30.368, in 2011 — 29.382). In dollar terms in 2008, Russian military spending amounted to 45.354 billion dollars in 2009 — 37.064 billion dollars, in 2010 — 39.933 billion dollars in 2011 — 48.840 billion.

Germany's military spending amounted to 48.082 billion dollars in 2008, 47.466 billion dollars in 2009, 46.255 billion dollars in 2010, and 48.140 billion dollars in 2011.

The other three countries (UK, France and Italy) for the period 2009-2011. significantly reduced military spending compared to the "baseline" pre-crisis year 2008.

UK military expenditure in 2008 amounted to 68.108 billion dollars, in 2009 — 58,240 billion dollars, in 2010 — 60.329 billion dollars in 2011 — 63.567 billion dollars.

France's military expenditure in 2008 amounted to 66.454 billion dollars in 2009 — 54.446 billion dollars, in 2010 — 51.967 billion dollars in 2011 — 53.444 billion dollars.

Italy's military spending in 2008 amounted to 33,150 billion dollars, in 2009 — 30.489 billion dollars, in 2010 — 28.656 billion dollars in 2011 — 30.223 billion dollars.

In the short term, it is unlikely that the UK, France and Italy will leave even the nominal figure for military spending to 2008 levels. Most likely, these countries continue to reduce military spending.

Steady nominal growth of military spending in the top ten countries (it is the nominal growth because it does not take into account the inflation rate, and the calculation is carried out in the prices of a given year) in the crisis (2009) and the post-crisis period (2010-2011). Compared with 2008, have five countries in the top ten in military spending — the U.S., China, Japan, Saudi Arabia and India.

At the same time against Japan should be noted that the growth of military spending in dollar terms is actually due to the high rate of the yen against the U.S. dollar in the crisis and post-crisis period (in local currency situation is reversed).

U.S. military spending in 2008 amounted to 729.544 billion dollars, in 2009 — 757 466 000 000 dollars, in 2010 — 785 831 000 000 dollars, and in 2011 — 731 879 000 000 dollars.

China first appeared on the annual military spending in second place in the world in 2009, overtaking the UK, and further increased the gap significantly.

The high nominal growth rate of military spending during the crisis and post-crisis period are Saudi Arabia and India.

In general, over the last 8 years (2004-2011). First place is occupied by the U.S. military spending — 5,114,805,000,000 dollars. The following places were occupied by Great Britain (483.171 billion dollars, 2nd place), France (449.705 billion dollars, 3rd place), China (USD 444 698 000 000, 4), Japan (USD 378 349 000 000, 5th), Germany (346.648 billion dollars, 6 place), Russia (282.716 billion dollars, 7th), Saudi Arabia (257,600 bn, 8th place), Italy (252.218 billion dollars, 9th) and India (204.543 billion dollars, 10 place).

From the ratio of military spending to GDP in the top ten countries for the period 2004-2011 years. place as follows: Saudi Arabia (8.13%), the USA (4.63%), Russia (2.95%), the UK (2.51%), France (2.28%), India (2, 25%), Italy (1.57%), Germany (1.36%), China (1.35%) and Japan (0.96%).

From 2004 to 2011. defense spending in the world in nominal terms increased from 994.965 billion dollars to 1,639,972,000,000 dollars (nominal growth of 1.65 times).

The increase of global military expenditure is due to several factors.

Primarily, this is due to the increase of military expenditure of the USA in connection with large-scale combat operations in Afghanistan and Iraq.

The need to ensure maintenance of long-term combat operations at two theaters in heavily affected the increase in U.S. military spending. Overall, in the period 2004-2011,. U.S. share of global military spending amounted to 47.26%. That is, the growth of U.S. military spending is largely determine
d by the growth of military spending in the world as a whole.

The largest increase in the percentage of military spending was observed in those countries that claim to be "regional" leaders. In addition to China, to such countries include India, Indonesia, Australia, Brazil, Saudi Arabia, Iran, Algeria and others.

Other countries have increased defense spending, seeking to military parity with neighboring states.

The substantial increase in defense spending has also been observed in countries with unstable representing the military and political point of view regions. This, above all, the Middle East and North Africa.

Analyzing the military geopolitical situation in general, we can say that in nominal terms, global military spending will increase, but the growth rate will be lower than the pre-crisis period until full "recovery" of the global economy. In the future, the rate of growth of military spending will increase, and this race will be drawn more and more countries. First of all, this is due to high conflict in some regions (especially, it is North Africa, the Middle East and South-East and East Asia) and the need to combat the new threats of the XXI century — terrorism.

The study TSAMTO it comes to military spending, that is taken into account as far as possible the funds allocated to each State for the Ministry of Defence (defense budget) and those expenses under "National defense" is passed on to other budget items.

All the material on the military spending of the world from 2004 to 2011. with plenty of table statistics will be published in the forthcoming edition of the Yearbook TSAMTO 2012.

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