Recent developments in global military spending reveal a sharp increase driven by ongoing and new conflicts. The North Atlantic Treaty Organization (NATO) has pledged to raise defence budgets to 5% of member GDP by 2035, more than double the previous 2% target. This commitment reflects heightened geopolitical tensions including the Russia-Ukraine war, Israel-Gaza conflict, and fresh hostilities between India-Pakistan and Israel-Iran. These factors are propelling military expenditures to unprecedented levels, raising concerns about the impact on global peace and public welfare.
Historical Trends in Military Expenditure
Military spending peaked during the Cold War, reaching 6.1% of global GDP in 1960. By the Cold War’s end, it had fallen to 3%, and hit a low of 2.1% in 1998. Since 2015, spending has gradually risen from 2.3% to 2.5% of world GDP by 2024. The year 2024 recorded the largest annual increase in military expenditure since 1988, reaching $2.7 trillion. The surge is linked to escalating conflicts and strategic rivalries worldwide.
Top Military Spenders and Spending Concentration
The United States leads with $997 billion spent, followed by China ($314 billion), Russia ($149 billion), Germany ($88.5 billion), and India ($86.1 billion). Together, the top 15 spenders account for nearly 80% of global military expenditure. NATO members alone spend $1.5 trillion, about 55% of the total. Countries like Saudi Arabia allocate over 7% of their GDP to defence, while most others range between 1.3% and 4.2%. This concentration marks a few dominant powers driving global militarisation.
Impact on Public Goods and Development Goals
Rising military budgets threaten gains in health, welfare, and development. Studies show increased defence spending crowds out government health expenditure, especially in low- and middle-income countries. Spain’s refusal to meet NATO’s new spending target cites welfare budget cuts. The United Nations, with a $44 billion budget, struggles to fund peacekeeping and humanitarian aid amid soaring military costs. Increased defence spending also undermines Sustainable Development Goals (SDGs), including poverty reduction and climate action, by diverting scarce resources.
Environmental and Health Consequences
Military activities contribute to greenhouse gas emissions. NATO’s planned defence increase could add 200 million tonnes of emissions annually. This is critical as 2024 was the hottest year on record with severe heatwaves worldwide. Health services suffer as funds shift towards defence. For example, India’s defence budget far exceeds health spending, despite pressing healthcare needs. The Lancet study links reduced foreign aid to millions of preventable deaths, showing the human cost of militarisation.
Geopolitical and Societal Implications
NATO’s push for increased military spending is largely aimed at countering Russia, whose economy and defence budget are much smaller. This disparity fuels fear-driven militarisation. Countries like Lebanon and Ukraine have spent over 25% of GDP on defence, risking economic and social stability. The narrative of spending more to prevent war remains contentious, as rising militarisation often escalates tensions and strains public resources.
India’s Defence Spending Context
India spends 2.3% of GDP on defence, with recent emergency allocations supplementing the budget. By contrast, public health expenditure remains low at 1.84% of GDP. The imbalance reflects priorities amid regional tensions but raises concerns about neglecting essential social services. Increased militarisation risks limiting funds for health, education, and poverty alleviation.
Questions for UPSC:
- Discuss in the light of global security dynamics how rising military expenditure affects international peace and development.
- Critically examine the impact of increased defence spending on public health and welfare in low- and middle-income countries.
- Explain the role of international organisations like the United Nations in balancing military spending and humanitarian aid funding.
- With suitable examples, discuss the environmental consequences of militarisation and its implications for climate change mitigation efforts.
