Russia has risen to seventh place in the world in economic militarization and fourth in security. Over two years, government spending on defense reached 5.3% of GDP, or $69.2 billion. These are the conclusions of the PwC study “Prospects for Global Defense,” which Izvestia reviewed. The company also expects to break the trend of recent years to reduce such costs in the world. However, experts noted, defense spending is not only about military operations, but also about technological development and an important export item for the Russian Federation.
In 2014, when the previous PwC report was released, Russia's defense spending was only 4.5% of GDP. In two years, government spending on defense reached 5.3% of GDP, or $69.2 billion. PwC divides all countries into six categories according to defense strategy - from those solving such problems at the expense of allies such as Switzerland and Denmark, to global power leaders. Only Russia and the United States are included in the latter category. Both states spend more than 3% of GDP on defense and are actively involved in security projects around the world.
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Oman took first place among countries in the militarization of the economy with the sector’s share of GDP at 16.75%. The second place belongs to Saudi Arabia (10.41%), the third - to Syria (8.49%). The US is in 17th place with 3.3%.
At the same time, according to the Stockholm International Peace Research Institute (SIPRI), Russia ranks third in the world in terms of government spending on defense after the United States and China (not linked to GDP). It is also important that in 2016 all oil-producing countries reduced their defense spending due to falling prices for their main export commodity.
As the scientific editor of the Arms Export magazine, Mikhail Barabanov, explained to Izvestia, 2016 was not entirely indicative for Russia in judging defense spending.
In recent years, annual defense spending has not exceeded 2.9 trillion rubles. But last year, the Ministry of Finance paid 800 billion rubles in state guarantees for loans to enterprises of the military-industrial complex. Then the department paid an additional 200 billion for these needs. It was this trillion rubles that led to an increase in spending on national defense in 2016 to 3.9 trillion rubles,” he explained.
According to the expert, this year expenses will return to the usual 2.9 trillion rubles and this amount will not change much in the next three years. According to the expert, due to the increasingly complex geopolitical situation, Russia needs to increase defense spending - reducing it will lead to the disruption of the rearmament program.
The amount of 2.9 trillion rubles ensures a balance between military operations and the purchase of weapons, the expert noted.
Budget expenditures for defense needs could be higher, says Anatoly Tsyganok, head of the Center for Military Forecasting at the Institute of Political and Military Analysis (IPVA), colonel, professor at the Academy of Military Sciences.
For example, US spending is 10 times greater. We first need to invest in submarines in the Navy. There is also an urgent need to increase the space constellation. The third problem is personnel training. There are not enough officers, the expert explained.
However, in recent years Russia has not only been spending on defense, but also making money on it. In 2016, arms exports from Russia amounted to more than $15 billion. It is important that the export of defense industry products is high-tech and also contributes to the diversification of the Russian economy, which has been struggling with dependence on oil in recent decades.
Despite significant arms exports, “self-sufficiency” of defense budget expenditures is a pipe dream, stated Anatoly Tsyganok.
According to analysts, the world will arm itself again by 2021. PwC expects global defense spending to increase. For example, the United States, which has been cutting its military budget in recent years, will increase it to $611 billion. China and India will increase their military spending even more.
According to the analysis, the compound annual growth rate of defense spending between 2017 and 2021 should offset previous defense budget cuts, which were observed between 2012 and 2016 in 45% of the countries analyzed.
Despite expected increases in spending due to increased threats such as cybersecurity, the world's defense budgets are still under severe pressure. Among the global trends that could have a major impact on defense and security, PwC points to the shift in economic power from West to East, demographic changes and technological developments.
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10th place - South Korea
The Supreme Commander-in-Chief is the President of the country; the overall leadership of the armed forces is carried out by the Minister of Defense. The operational management of the armed forces and strategic planning are carried out by the Joint Chiefs of Staff. The armed forces are organized according to the American model. In addition, South Korea has an independent maritime border guard and civil defense units.
9th place - Germany
Until July 1, 2011, in Germany, all adult citizens of the country were required to serve under conscription (6 months of military service or alternative labor service in social and charitable organizations). The number of conscripts in the Bundeswehr varied from 60 thousand to 80 thousand military personnel who serve for 6 months. Thus, from July 1, 2011, the Bundeswehr switched to a fully professional army.
8th place - Japan
The total strength of the Self-Defense Forces is 248 thousand people, in addition, there are 56 thousand reservists. The Japan Self-Defense Forces are staffed on a voluntary basis. The Supreme Commander of the Japan Self-Defense Forces is the Prime Minister of the country.
7th place - France
The most feminized army, air force and navy in Western Europe (more than 14% of employees are women). The minimum military age for recruitment is 17 years, the maximum is 40 years. There is no call. France is a nuclear weapons country. However, in 1998, France ratified a protocol banning all types of nuclear tests.
6th place - India
The military organization of India, intended for the defense of the Republic, the protection of the freedom and independence of the state, is one of the most important instruments of political power. There is no mandatory call. India ranks first in the world in terms of arms imports.
5th place - Great Britain
The United Kingdom has a modern armed forces. The army size is only 180,000 (28th place in the world). The bulk of the military budget is spent on scientific research in the field of engineering and technology.
4th place - Russian Federation
The Armed Forces of the Russian Federation have the world's largest stockpiles of weapons of mass destruction, including nuclear weapons, and a well-developed system of means of delivering them. The staffing level of the Russian army at the end of 2014 was estimated at 82%, and at the end of 2015 it was increased to 92%, while the share of contract servicemen amounted to 352 thousand, exceeding the number of conscripts for the first time. According to Business Insider magazine, the Russian army, based on a set of parameters, ranks 2nd in the world in terms of combat power after the US Army and surpasses all other armies in the world in the number of tanks and nuclear weapons.
3rd place - Saudi Arabia
The totality of troops of the Kingdom of Saudi Arabia designed to protect the freedom, independence and territorial integrity of the state. Consists of the Army, Navy, Air Force, Air Defense Forces, Strategic Missile Forces and National Guard. The number of personnel is over 150 thousand people. The armed forces of Saudi Arabia were formed with significant military-technical support from the United States and Great Britain, which provided Riyadh with supplies of weapons and military equipment, as well as military specialists.
2nd place - China
The legislation provides for military service for men from 18 years of age; Volunteers are accepted up to 49 years of age. The age limit for an Army Reserve member is 50 years. In wartime, theoretically (without taking into account restrictions on material support) up to 400 million people can be mobilized. Chinese officials say that in the course of arms development, China does not exceed the feasible level that the economy and society can withstand, and certainly does not strive for an arms race. Nevertheless, Chinese defense spending continues to increase significantly (in 2001, Chinese defense spending amounted to $17 billion).
1st place - USA
The US Armed Forces include independent branches of the armed forces - the Ground Forces, the Air Force, the Navy, the Marine Corps and the Coast Guard, as well as units and formations of the Reserve, including the National Guard. As of 2016, the US Armed Forces are the most combat-ready in the world. Recruitment of the armed forces is carried out on a voluntary basis. Citizens of the United States and citizens of other states permanently residing in the United States with at least a secondary education are accepted for service. On November 7, 2015, US Secretary of Defense Ashton Carter accused Russia and China of trying to undermine the world order. In particular, the minister said:
Of greatest concern are Moscow's nuclear weapons threats, raising questions about the Russian leadership's commitment to strategic stability, respect for global norms against the use of nuclear weapons, and the caution with which nuclear-era leaders approach nuclear weapons threats.
In this regard, Carter announced measures to curb Russian aggression. Among the planned measures, the minister named the modernization of nuclear weapons, the development of unmanned aircraft and strategic bombers, the development of laser and railgun weapon systems, as well as new weapons systems, the details of which were not specified.
Source: SIPRI
The authoritative SIPRI institute calculated that Russia's military spending in 2016 increased by 5.9%, to $69.2 billion. This allowed it to supplant Saudi Arabia and take third place after the United States and China in defense spending
Photo: Vladislav Belogrud / Interpress / TASS
Russia took third place in the world in military spending over the past year: it increased by 5.9% and amounted to $69.2 billion, according to the database of the Stockholm Peace Research Institute (SIPRI), updated on April 24. We are talking about an indicator in current US dollars: nominal expenses in national currency are recalculated at the average annual market dollar exchange rate. According to this indicator, Russia has surpassed Saudi Arabia, which ranked third at the end of 2015, and is second only to the United States ($611 billion) and China ($215 billion), although by several times.
The total military expenditures of the world's states in 2016 amounted to $1.69 trillion, of which Russia accounted for 4.1% versus 36% for the United States and 13% for China. In nominal local currency terms, SIPRI estimated Russia's military spending over the past year at RUB 4.64 trillion. — an increase of 14.8% compared to the corresponding estimate for 2015.
According to SIPRI
There is no precise definition of what is meant by military spending: different sources may or may not include certain categories of military spending ( see infographic). SIPRI tries to include in its assessment “all expenditures on active armed forces and military activities,” including expenditures on paramilitary structures such as the National Guard, civilian defense personnel, social benefits for military personnel and their families, defense research and development, military construction, military assistance to other countries. SIPRI excludes from consideration expenditures on civil defense (under the jurisdiction of the Ministry of Emergency Situations) and current expenditures on past military activities (benefits to veterans, conversion of weapons production, elimination of weapons). Even though the latter can be paid from the budget of the Ministry of Defense.
SIPRI notes in a press release that Russia's increase in military spending in 2016 went against the general trend of reducing such spending in oil-producing countries following the decline in oil prices. Thus, Venezuela reduced military spending by 56%, South Sudan - by 54%, Azerbaijan - by 36%, Iraq - by 36%, Saudi Arabia - by 30%. Apart from Russia, among the oil-exporting countries, military spending increased only in Norway and Iran, data from the institute show. The average price of Brent oil last year decreased by 16% compared to the average price of 2015, the Russian Urals grade fell in price by 18%.
But the estimate of Russian military spending for 2016 included expenditures amounting to about 800 billion rubles. ($11.8 billion), intended to repay part of the debt of Russian defense enterprises to commercial banks, Simon Wiseman, a senior researcher at SIPRI, told RBC. The government positioned these allocations, unexpectedly allocated at the end of 2016, as one-time ones: we were talking about funds taken in previous years under state guarantees to fulfill state defense orders. “If not for these one-time payments, Russia’s military spending in 2016 would have decreased compared to 2015,” Wiseman said.
Since the lion's share of Russia's defense spending goes through secret (closed) budget items, it is impossible to say exactly how much the government spent on repaying defense industry loans. The head of the State Duma budget committee, Andrei Makarov, called the figure 793 billion rubles. However, the Accounts Chamber in its operational report on budget execution in 2016 reported that guarantees for 975 billion rubles were terminated. for loans to defense industry enterprises for the purposes of state defense procurement.
One-time expenses for closing the “credit scheme” of the military-industrial complex led to the fact that the volume of military spending in relation to GDP in 2016 increased to 5.3% - the maximum in the history of independent Russia, according to the SIPRI certificate. “This heavy burden comes at a time when the Russian economy is experiencing serious difficulties due to low oil and gas prices and economic sanctions imposed since 2014,” the Stockholm Institute notes.
When assessing Russian military spending, SIPRI relies mainly on official documents of the Russian state budget, as follows from the research methodology (and, for example, there is not enough such data for China). In other words, SIPRI combines Russian budget data. The Russian budget itself has a functional section “National Defense”, for which 3.78 trillion rubles were spent in 2016, and for 2017 it is planned to reduce allocations by a quarter, to 2.84 trillion rubles. But part of the expenses that SIPRI includes in its calculations goes through other budget sections, in particular “National Security and Law Enforcement.”
According to Russian experts
According to Vasily Zatsepin, head of the laboratory of military economics at the Gaidar Institute, indirect military expenditures can also be found in such “peaceful” sections as “National Economy” (capital construction as part of the state defense order), “Housing and communal services”, “Healthcare”, “Social politics" (Ministry of Defense expenses). In addition, a small part of military spending goes through regional budgets (RUB 2.2 billion in 2016).
Tactical exercises of artillery units of the 5th Combined Arms Army in the Primorsky Territory (Photo: Yuri Smityuk / TASS)
As a result, the Gaidar Institute estimates Russia's total military expenditures related to current and past military activities at 4.94 trillion rubles. (5.7% of GDP) over the past year - an increase of 15% in nominal terms relative to the previous year. This is the broadest possible estimate, which includes pensions for military personnel (RUB 328 billion in 2016), costs for the destruction of chemical weapons and the disposal of weapons and military equipment - expenses that SIPRI does not take into account because they relate to “past military activities.”
A powerful and combat-ready army is the key to a country’s significant weight in the international arena. Moreover, in connection with the well-known events in Syria and Ukraine, the closest attention is increasingly being paid to the military power of different countries. Many people ask the question: “Who will win the world war?”
Today we present an annually updated, official ranking of the world's armies, a list that includes the most powerful armies in the world in 2017.
When compiling the rating, the following are compared:
- the number of armies of the world (regular number of troops, reservists)
- weapons (airplanes, helicopters, tanks, navy, artillery, other equipment)
- military budget, resource availability, geographical location, logistics.
Nuclear potential is not taken into account by experts, but recognized nuclear powers receive an advantage in ranking.
By the way, San Marino has the weakest army in the world in 2017 – only 80 people.
The country's military budget is $45 billion. The number of German armed forces is 186,500 people. The German army is completely professional, i.e. There has been no compulsory conscription in the country since 2011.
The Turkish army is the best in the Middle East. The number of the country's armed forces is 510,000 people. Turkey's military budget is $18 billion. There are just over 7 military personnel per thousand residents of the country.
The Japanese army is seventh in the list of the best. The combat-ready part of the army numbers 247 thousand military personnel. With such a large armed force, the country has a simply huge defense budget - $49 billion.
The country's military budget is $53 billion. The size of the British armed forces is 188,000 military personnel - this is the smallest army in the ranking. But the Royal Navy of Britain is the second in the world in terms of tonnage.
Opens a list of the 5 most powerful armies in the world. The country's military budget is $43 billion. The number of French armed forces is 222,000 people. The key to the combat effectiveness of this army is the presence in it of a full range of weapons of its own production, from warships to helicopters and small arms.
The country's military budget is $46 billion. The number of Indian armed forces is 1,346,000 people, the country's army is the third largest in the world.
The largest army in the world ranking is the Chinese army, numbering 2,333,000 troops. Wikipedia shows that there are 1.71 military personnel per 1,000 inhabitants of the Celestial Empire. China's military budget is $126 billion.
The Russian armed forces are superior to almost all armies of the world in terms of weapons power in all branches of the military - air, ground and sea. The size of the Russian army for 2017 is 798,000 people. Military budget - $76 billion. Among the superpowers, Russia has a very high rate of the number of military personnel per 1000 inhabitants - 5.3 people.
The most powerful army in the world, according to Globalfirepower, is American. By the way, it is not the largest in terms of numbers, but the most powerful in terms of available weapons, including nuclear potential, which is not taken into account by experts. The US Army has a strength of 1,492,200 people and a defense budget of $612 billion.
The Stockholm International Peace Research Institute (SIPRI), which deals with disarmament and arms control issues, has released an interactive map of military spending by countries around the world for 2015.The SIPRI study follows the institute's own database methodology and estimates the total amount of money each country spends on military purposes.
We show the tables of expenses in our own dynamics, linking spending on weapons with population and GDP, which the Stockholm Institute does not provide.
The first five places are occupied by the USA, China, Russia, France and Saudi Arabia. Great Britain is not far behind France in military spending.
These two countries have always dominated Europe politically, and they are similar not only in their GDP, population, history, but also in their desire to dominate the continent.
It is interesting to see how Saudi Arabia spends more than 10% of GDP on the army, which is critical for any non-resource economy. Such high spending on the military budget is explained by nothing more than the desire to dominate not only among the countries of the Arabian Peninsula, but throughout the entire Middle East. Saudi military spending is constantly growing. For example, in 2011 they amounted to 48.2 billion US dollars, or 11.4% of GDP, and by 2015 they almost doubled.
At the same time, the country’s mobilization reserves amount to a huge figure - 5.9 million people. It is characteristic that the main supplier of weapons for the kingdom is traditionally the United States (85% of all weapons).
For example, we see that Pakistan (Table No. 3), recognized by the world community as an undemocratic state that often condones terrorists, with a population of 200 million people, has a military budget less than that of peaceful Poland.
And South Korea, with a population of 50 million, is approaching in its expenses a state like Germany, where 30 million more people live.
The United States, which has been fearing for freedom and democracy around the world for 70 years, has military expenditures that exceed the military budgets of almost all countries in the world combined. As we can see, maintaining democracy on the planet is quite expensive.
The next five states, if they raise questions, are only in relation to South Korea, which, with a population more than half that of Japan, manages to spend almost the same amount on weapons.
Further, with some exceptions, everything goes quite predictably from the point of view of the economy of states, but not from the point of view of the population. So, Israel, for example, spends more on weapons than all its warlike neighbors combined. The defense budget of the same Egypt is a little more than $5 billion with a population of 93 million people.
Most impressive in the third table are the expenditures of Australia and Poland. Poland has a military budget almost the same as Pakistan's two hundred million, and peaceful Australia spends on weapons as much as Iran and Iraq combined.
But, of course, Israel breaks all records. A state with a population of 8 million people spends more money on the army than Iran and Argentina, with a total population of 123 million people.
Let us emphasize that Saudi Arabia, Poland, Australia, Israel, Japan and South Korea, which stand out among other countries for their disproportionate defense spending, are the most loyal US allies.
The raw numbers speak for themselves. You don’t need to be a rocket scientist to look at them and understand the ambitions of states and their claims to a role in the global world.
It is also obvious that neither Russia nor China can even come close to claiming the title of “superpower” in terms of military spending.
Everything else, except numbers, is pure propaganda, no matter where it comes from: Poland, Russia, France or Iran.
Dmitry Evsyutkin, head of the analytical group "West"
