Military Spending by Foreign Nations: Data from Selected Public Sources

Military Spending by Foreign Nations: Data from Selected Public Sources

Order Code RL30931
CRS Report for Congress
Received through the CRS Web
Military Spending by Foreign Nations:
Data from Selected Public Sources
April 6, 2001
name redacted
Analyst in National Defense
Foreign Affairs, Defense and Trade Division
Congressional Research Service ˜ The Library of Congress

Military Spending by Foreign Nations:
Data from Selected Public Sources
Summary
This report provides data on defense spending of foreign nations from two
sources: the U.S. State Department’s World Military Expenditures and Arms
Transfers (WMEAT) and the London-based International Institute for Strategic
Studies (IISS), The Military Balance.
Although the Department of State and IISS endeavor to provide consistent and
accurate information, cross-national comparison of military spending are inherently
imperfect. Available sets of data are useful but inevitably suffer from shortcomings
of one type or another.

Contents
World Military Expenditures and Arms Transfers (WMEAT) . . . . . . . . . . . . . . . 1
The Military Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
List of Tables
Table 1. Top 50 Defense Spending By Foreign Nations:
Data from the U.S. Department Of State and IISS . . . . . . . . . . . . . . . . . . . 3
Table 2. Defense Spending By Foreign Nations Alphabetically:
Data from the U.S. Department Of State and IISS . . . . . . . . . . . . . . . . . . . 5

Military Spending by Foreign Nations:
Data from Selected Public Sources
More or less reliable estimates of military spending by foreign nations are
available from a number of sources. This CRS Report collates data on foreign
military budgets from two of the most commonly cited and readily available
publications:(1) World Military Expenditures and Arms Transfers, published
approximately annually by the U.S. Department of State, Bureau of Arms Control
(formally the U.S. Arms Control and Disarmament Agency (ACDA)) and (2) The
Military Balance, published in October of each year by the London-based
International Institute for Strategic Studies (IISS). 1
Although the Department of State and IISS endeavor to provide consistent and
accurate information, cross-national comparison of military spending are inherently
imperfect. All of the available sets of data suffer from more or less serious
shortcomings. These data sets are used by experts principally for discussion purposes.
World Military Expenditures and Arms Transfers
(WMEAT)
The Bureau of Arms Control’s World Military Expenditures and Arms Transfers
( WMEAT, pronounced “we-meet”) report provides the most consistent set of data
and also provides figures for a ten year period.2 For NATO members, the Bureau of
Arms Control (BAC) measures military expenditures according to a common
definition that includes military retired pay and military-type expenditures of defense
ministries. For other countries, WMEAT generally reports expenditures of the
ministry of defense. The most recent 1998 report converts most countries’
expenditures into dollars using 1997 exchange rates.
The WMEAT ranks the 167 countries based on 7 absolute variables and 10
ratios based on these variables. These variables are military expenditures, armed
forces, arms exports, arms imports, gross national product, central government
expenditures, and population. Some countries are ranked based on estimates.
1 Other common reference sources of data, not cited here, include the United Nations, the
Stockholm International Peace Research Institute (SIPRI), the North Atlantic Treaty
Organization (for NATO member nations), and the U.S. Department of Defense (for allied
military spending).
2To see this report on-line, go to this State Department link:
[ http://www.state.gov/www/global/arms/bureau_ac/wmeat98/wmeat98.html].

CRS-2
Hence, some countries are ranked without having military expenditures listed in the
chart.
A major shortcoming of the WMEAT report in the past has been is its lack of
timeliness. A second problem is the use of exchange rates of a single, base year –
most recently 1997. Because the WMEAT reports spending over time, it is necessary
to use a single base year, otherwise the estimates would measure trends in the value
of the dollar rather than trends in military programs. But this comes at a cost, because
the value of the dollar has fallen substantially against many currencies since the mid-
1980s. Therefore, the estimates of foreign military spending in dollars in earlier years
may be understated compared to spending at then-current exchange rates.
The Military Balance
In The Military Balance, military expenditure is defined3 – according to the
NATO standard definition – as the cash outlays of central or federal government to
meet costs of national armed forces. The term “armed forces” includes strategic,
land, naval, air, command, administration and support forces. It also includes
paramilitary forces, such as the gendarmerie, customs service and border guard if
these operate under military authority during war.
IISS produces up-to-date estimates for all nations in October each year, and its
information is the most current. IISS uses data from national governments, NATO,
the United Nations, the Organization for Security and Cooperation in Europe (OSCE)
and the International Monetary Fund. However, consistent and accurate defense
spending for most countries is not available even from these sources. Most countries
do not publish their defense spending figures or do not report them accurately to these
organizations. Therefore, IISS estimates some countries’ defense expenditures from
several sources.
For most countries, IISS converts budget data into dollars using current
exchange rates in US Dollars. For countries where basic economic data is hard to
obtain, such as former command economies like China4, Russia or countries in
conflict, IISS uses purchasing power parity (PPP) estimates for its conversions. PPPs
measure the relative purchasing power of difference currencies over equivalent goods
and services. This method may better account for the substantial differences in
relative prices for defense goods.
The following table provides data for all nations’s with military budgets over $50
million, according to IISS figures. The data is rank-ordered according to the State
Department’s WMEAT report.
3 See IISS, The Military Balance: 2000-2001, p. 10.
4For a discussion of estimates of China’s actual and future projected military expenditures,
see CRS Report RL30757, China's Emergence as a Major Economic Power: Implications
for U.S. Interests, by Dick Nanto and (name redacted).

CRS-3
Table 1. Top 50 Defense Spending By Foreign Nations:
Data from the U.S. Department Of State and IISS
(current year U.S. dollars in millions)
Country
US Dept. of State:
IISS:
Rank
WMEAT 1998
Military Balance
2000-2001
Defense
%
Defense
Expenditures
GDP
Expenditures
GDP
(1997 data)
(1999 data)
United States
1
276,300
3.3
275,500
2.9%
China — Mainland
2
74,910
2.2
* 39,500
5.4%
Russia
3
41,730
5.8
*56,000
*5.1%
France
4
41,520
3.0
37,100
2.7%
Japan
5
40,840
1.0
40,800
0.9%
United Kingdom
6
35,290
2.8
36,900
2.6%
Germany
7
32,870
1.6
31,100
1.6%
Italy
8
22,720
2.0
22,000
2.0%
Saudi Arabia
9
21,150
14.4
21,800
15.5%
Korea, South
10
15,020
3.4
12,000
2.9%
Brazil
11
14,150
1.8
16,000
2.7%
China — Taiwan
12
13,060
4.6
15,000
5.2%
India
13
10,850
2.8
14,200
3.2%
Israel
14
9,335
9.7
8,900
8.9%
Australia
15
8,463
2.2
7,800
2.0%
Canada
16
7,800
1.3
7,800
1.2%
Turkey
17
7,792
4.0
10,100
5.4%
Spain
18
7,670
1.5
7,300
1.3%
Netherlands
19
6,839
1.9
6,900
1.8%
Korea, North
20
6,000
27.5
2,100
14.3%E
Singapore
21
5,664
5.7
4,700
5.6%
Poland
22
5,598
2.3
3,200
2.0%
Sweden
23
5,550
2.5
5,200
2.3%
Greece
24
5,533
4.6
5,300
4.9%
Indonesia
25
4,812
2.3
1,500
1.1%
Iran
26
4,726
3.0
5,700
5.2%
Mexico
27
4,294
1.1
4,300
0.9%
Ukraine
28
4,285
3.8
1,400
2.9%
Switzerland
29
3,859
1.5
3,100
1.3%
Argentina
30
3,701
1.2
5,400
1.9%
Belgium
31
3,686
1.5
3,400
1.4%
Colombia
32
3,456
3.7
2,200
2.9%
Syria
33
3,403
5.6
1,900
4.9%
Vietnam
34
3,387
2.8
890 E
3.0%
Pakistan
35
3,381
5.7
3,500
5.7%
Thailand
36
3,380
2.3
2,600
1.9%
Burma (Myanmar)
37
NA
NA
*2,000
*6.9%
Norway
38
3,253
2.1
3,300
2.2%
Chile
39
2,864
3.9
2,700
4.0%
Denmark
40
2,804
1.7
2,700
1.6%
Kuwait
41
2,761
7.5
3,200
10.8%

CRS-4
Country
US Dept. of State:
IISS:
Rank
WMEAT 1998
Military Balance
2000-2001
Defense
%
Defense
Expenditures
GDP
Expenditures
GDP
(1997 data)
(1999 data)
Portugal
42
2,389
2.4
2,300
2.2%
Uzbekistan
43
NA
NA
615
3.9%
South Africa
44
2,322
1.9
1,800
1.4%
United Arab Emirates
45
2,306
6.8
3,200
6.2%
Romania
46
2,285
2.4
607
1.8%
Egypt
47
2,176
2.8
3,000
3.4%
Malaysia
48
2,089
2.2
3,200
4.1%
Libya
49
NA
NA
1,500 E
5.8%E
Nigeria
50
2,001
1.4
2,200 E
4.4%E
* These numbers are based on purchasing power parity (PPP) estimates. PPPs measure the relative
purchasing power of difference currencies over equivalent goods and services. This method better accounts
for the substantial differences in relative prices for defense goods.
E These data were estimated by IISS and not based on reported data from the individual country.

CRS-5
Table 2. Defense Spending By Foreign Nations Alphabetically:
Data from the U.S. Department Of State and IISS
(current year U.S. dollars in millions)
Country
US Dept. of State:
IISS:
Rank
WMEAT 1998
Military Balance
2000-2001
Defense
%
Defense
Expenditures
GDP
Expenditures
GDP
(1997 data)
(1999 data)
Afghanistan
76
NA
NA
250
14.7%
Albania
125
64
1.4
139
3.6%
Algeria
56
1,752
3.9
3,100
6.6%
Angola
57
1,552
20.4
1,005 E
16.5%E
Argentina
30
3,701
1.2
5,400
1.9%
Armenia
86
342
3.6
159
8.6%
Australia
15
8,463
2.2
7,800
2.0%
Austria
55
1,794
0.9
1,700
0.9%
Azerbaijan
95
224
1.9
203
4.5%
Bahrain
79
533
10.3
441
7.7%
Bangladesh
78
592
1.4
619
1.5%
Barbados
157
14
NA
12
0.5%
Belarus
69
841
1.7
466
5.0%
Belgium
31
3,686
1.5
3,400
1.4%
Belize
166
0
0.0
17
2.5%
Benin
148
27
1.3
34
1.4%
Bhutan
164
NA
NA
NA
NA
Bolivia
101
150
1.9
149
1.7%
Bosnia and Herzegovina
91
259
5.9
365 E
8.3% E
Botswana
93
241
5.1
260
5.2%
Brazil
11
14,150
1.8
16,000
2.7%
Brunei
84
374
4.6
402
6.7%
Bulgaria
67
949
3.0
392
3.3%
Burkina Faso
123
67
2.8
75
2.1%
Burma (Myanmar)
37
NA
NA
*2,000
*6.9%
Burundi
130
57
6.1
69
6.2%
Cambodia
105
126
4.1
176
5.0%
Cameroon
94
240
3.0
154
1.5%
Canada
16
7,800
1.3
7,800
1.2%
Cape Verde
163
4
0.9
7
2.7%
Central African Republic
142
39
3.9
46
4.2%
Chad
138
43
2.7
47
2.8%
Chile
39
2,864
3.9
2,700
4.0%
China — Mainland
2
74,910
2.2
* 39,500
5.4%
China — Taiwan
12
13,060
4.6
15,000
5.2%
Colombia
32
3,456
3.7
2,200
2.9%
Congo (Kinshasa)
92
252
4.9
411 E
7.8%
Congo (Brazzaville)
120
74
4.1
73
3.3%
Costa Rica
129
58
0.6
69
0.6%
Croatia
58
1,489
6.3
776
4.1%
Cuba
74
NA
NA
750 E
5.0% E

CRS-6
Country
US Dept. of State:
IISS:
Rank
WMEAT 1998
Military Balance
2000-2001
Defense
%
Defense
Expenditures
GDP
Expenditures
GDP
(1997 data)
(1999 data)
Cyprus
80
506
6.1
530
6.1%
Czech Republic
51
1,988
1.9
1,169
2.3%
Denmark
40
2,804
1.7
2,700
1.6%
Djibouti
152
20
4.1
22
5.0%
Dominican Republic
98
168
1.2
114
0.9%
Ecuador
72
746
4.0
339
2.3%
Egypt
47
2,176
2.8
3,000
3.4%
El Salvador
111
101
0.9
171
1.1%
Equatorial Guinea
161
NA
NA
10
1.9%
Eritrea
124
65
7.8
309 E
44.0%
E
Estonia
109
111
1.5
71
1.6%
Ethiopia
106
117
1.9
444
7.2%
Fiji
135
48
2.4
35
1.9%
Finland
52
1,956
1.7
1,700
1.4%
France
4
41,520
3.0
37,100
2.7%
Gabon
114
90
2.0
135
2.1%
Gambia, The
156
15
3.7
16
3.6%
Georgia
100
158
1.4
111
4.4%
Germany
7
32,870
1.6
31,100
1.6%
Ghana
137
47
0.7
121
1.2%
Greece
24
5,533
4.6
5,300
4.9%
Guatemala
97
NA
NA
114
0.8%
Guinea
131
54
1.5
59
1.6%
Guinea-Bissau
159
8
3.2
6
2.0%
Guyana
160
8
1.1
7
0.9%
Haiti
134
NA
NA
50
1.3%
Honduras
112
NA
NA
95
1.8%
Hungary
61
1,320
1.9
745
1.6%
Iceland
167
0
0.0
18
0.2%
India
13
10,850
2.8
14,200
3.2%
Indonesia
25
4,812
2.3
1,500
1.1%
Iran
26
4,726
3.0
5,700
5.2%
Iraq
63
1,250
4.9
1,300 E
6.8%E
Ireland
73
744
1.2
745
0.9%
Israel
14
9,335
9.7
8,900
8.9%
Italy
8
22,720
2.0
22,000
2.0%
Ivory Coast
110
101
1.1
130
1.0%
Jamaica
132
53
0.9
51
0.8%
Japan
5
40,840
1.0
40,800
0.9%
Jordan
77
626
9.0
569
7.4%
Kazakstan
75
699
1.3
504
3.5%
Kenya
96
206
2.1
327
3.1%
Korea, North
20
6,000
27.5
2,100
14.3%E

CRS-7
Country
US Dept. of State:
IISS:
Rank
WMEAT 1998
Military Balance
2000-2001
Defense
%
Defense
Expenditures
GDP
Expenditures
GDP
(1997 data)
(1999 data)
Korea, South
10
15,020
3.4
12,000
2.9%
Kuwait
41
2,761
7.5
3,200
10.8%
Kyrgyzstan
99
159
1.6
51
4.6%
Laos
128
60
3.4
22
2.2%
Latvia
113
97
0.9
58
1.0%
Lebanon
81
465
3.0
575
3.5%
Lesotho
144
32
2.5
34
4.1%
Liberia
162
NA
NA
25 E
5.5 E
Libya
49
NA
NA
1,500 E
5.8%E
Lithuania
103
127
0.8
106
1.0%
Luxembourg
102
134
0.8
138
0.8%
Macedonia
117
83
2.5
67
2.0%
Madagascar
133
53
1.5
43
0.8%
Malawi
150
26
1.0
27
1.8%
Malaysia
48
2,089
2.2
3,200
4.1%
Mali
139
43
1.8
34
1.2%
Malta
146
31
0.9
27
0.8%
Mauritania
151
24
2.3
26
2.1%
Mauritius
158
12
0.3
91
2.0%
Mexico
27
4,294
1.1
4,300
0.9%
Moldova
127
62
1.0
6
0.5%
Mongolia
154
19
1.9
19
1.9%
Morocco
59
1,386
4.3
1,800
5.1%
Mozambique
121
73
2.8
94
4.7%
Namibia
115
90
2.7
120
4.4%
Nepal
140
42
0.8
51
1.0%
Netherlands
19
6,839
1.9
6,900
1.8%
New Zealand
70
766
1.3
824
1.6%
Nicaragua
149
27
1.5
25
0.9%
Niger
153
20
1.1
28
1.6%
Nigeria
50
2,001
1.4
2,200 E
4.4%E
Norway
38
3,253
2.1
3,300
2.2%
Oman
54
1,815
26.1
1,600
10.6%
Pakistan
35
3,381
5.7
3,500
5.7%
Panama
107
114
1.4
128
1.3%
Papua New Guinea
126
63
1.4
46
1.4%
Paraguay
104
127
1.3
128
1.4%
Peru
60
1,352
2.1
888
1.6%
Philippines
62
1,266
1.5
1,600
2.0%
Poland
22
5,598
2.3
3,200
2.0%
Portugal
42
2,389
2.4
2,300
2.2%
Qatar
66
NA
NA
1,400
14.4%
Romania
46
2,285
2.4
607
1.8%
Russia
3
41,730
5.8
*56,000
*5.1%

CRS-8
Country
US Dept. of State:
IISS:
Rank
WMEAT 1998
Military Balance
2000-2001
Defense
%
Defense
Expenditures
GDP
Expenditures
GDP
(1997 data)
(1999 data)
Rwanda
119
81
4.4
135
6.1%
Sao Tome and Principe
165
0
0.9
NA
NA
Saudi Arabia
9
21,150
14.4
21,800
15.5%
Senegal
122
69
1.6
81
1.6%
Sierra Leone
136
48
5.9
11 E
1.5%
Singapore
21
5,664
5.7
4,700
5.6%
Slovakia
68
903
2.1
329
1.9%
Slovenia
64
1,218
5.2
337
1.8%
Somalia
145
NA
NA
40 E
4.6%E
South Africa
44
2,322
1.9
1,800
1.4%
Spain
18
7,670
1.5
7,300
1.3%
Sri Lanka
71
762
5.1
807
5.1%
Sudan
82
412
4.6
424 E
4.9%E
Suriname
155
17
1.2
11
2.7%
Swaziland
143
32
2.2
NA
NA
Sweden
23
5,550
2.5
5,200
2.3%
Switzerland
29
3,859
1.5
3,100
1.3%
Syria
33
3,403
5.6
1,900
4.9%
Tajikistan
108
113
1.7
95 E
7.9%
Tanzania
116
87
1.3
141
1.7%
Thailand
36
3,380
2.3
2,600
1.9%
Togo
147
29
2.0
34
2.3%
Trinidad and Tobago
118
83
1.5
62
0.9%
Tunisia
85
359
1.9
355
1.8%
Turkey
17
7,792
4.0
10,100
5.4%
Turkmenistan
88
299
4.6
109 E
3.3% E
Uganda
90
268
4.2
199
2.5%
Ukraine
28
4,285
3.8
1,400
2.9%
United Arab Emirates
45
2,306
6.8
3,200
6.2%
United Kingdom
6
35,290
2.8
36,900
2.6%
United States
1
276,300
3.3
275,500
2.9%
Uruguay
89
279
1.4
318
2.3%
Uzbekistan
43
NA
NA
615
3.9%
Venezuela
53
1,856
2.2
1,329
1.6%
Vietnam
34
3,387
2.8
890 E
3.0%
Yemen
83
411
8.0
429
6.4%
Yugoslavia, Fed. Republic of
65
1,200
4.9
1,600
12.3%
Serbia and Montenegro
Zambia
141
41
1.1
88
2.5%
Zimbabwe
87
320
3.8
418
6.1%
Notes:
* These numbers are based on purchasing power parity (PPP) estimates. PPPs measure the relative
purchasing power of difference currencies over equivalent goods and services. This method better accounts
for the substantial differences in relative prices for defense goods.
E These data were estimated by IISS and not based on reported data from the individual country.

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