Military Spending by Foreign Nations: Data from Selected Public Sources

CRS Report for Congress
Military Spending by Foreign Nations:
Data from Selected Public Sources
April 6, 2001
Mary T. Tyszkiewicz
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-based1
International Institute for Strategic Studies (IISS).
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].

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 Radha Sinha.

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)
CountryRankUS Dept. of State:IISS:
WMEAT 1998 Military Balance
2000-2001
Defense %Defense
Expenditures GDP Expenditures GDP
(1997 data)(1999 data)
United States1276,3003.3275,5002.9%
China — Mainland274,9102.2* 39,5005.4%
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 Kingdom635,2902.836,9002.6%
Germany 7 32,870 1.6 31,100 1.6%
Italy 8 22,720 2.0 22,000 2.0%
Saudi Arabia921,15014.421,80015.5%
Korea, South1015,0203.412,0002.9%
Brazil 11 14,150 1.8 16,000 2.7%
China — Taiwan1213,0604.615,0005.2%
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, North206,00027.52,10014.3%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%
Vietnam343,3872.8890 E3.0%
Pakistan 35 3,381 5.7 3,500 5.7%
Thailand 36 3,380 2.3 2,600 1.9%
Burma (Myanmar)37NANA*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%



CountryRankUS Dept. of State:IISS:
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 Africa442,3221.91,8001.4%
United Arab Emirates452,3066.83,2006.2%
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%
Libya49NANA1,500 E5.8%E
Nigeria502,0011.42,200 E4.4%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.



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)
CountryRankUS Dept. of State:IISS:
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%
Angola571,55220.41,005 E16.5%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 Herzegovina912595.9365 E8.3% 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 Faso123672.8752.1%
Burma (Myanmar)37NANA*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 Verde16340.972.7%
Central African Republic142393.9464.2%
Chad 138 43 2.7 47 2.8%
Chile 39 2,864 3.9 2,700 4.0%
China — Mainland274,9102.2* 39,5005.4%
China — Taiwan1213,0604.615,0005.2%
Colombia 32 3,456 3.7 2,200 2.9%
Congo (Kinshasa)922524.9411 E7.8%
Congo (Brazzaville)120744.1733.3%
Costa Rica129580.6690.6%
Croatia 58 1,489 6.3 776 4.1%
Cuba74NANA750 E5.0% E



CountryRankUS Dept. of State:IISS:
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 Republic511,9881.91,1692.3%
Denmark 40 2,804 1.7 2,700 1.6%
Djibouti 152 20 4.1 22 5.0%
Dominican Republic981681.21140.9%
Ecuador 72 746 4.0 339 2.3%
Egypt 47 2,176 2.8 3,000 3.4%
El Salvador1111010.91711.1%
Equatorial Guinea161NANA101.9%
Eritrea124657.8309 E44.0%
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, The156153.7163.6%
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%
Iraq631,2504.9 1,300 E6.8%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 Coast1101011.11301.0%
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, North206,00027.52,10014.3%E



CountryRankUS Dept. of State:IISS:
WMEAT 1998 Military Balance
2000-2001
Defense %Defense
Expenditures GDP Expenditures GDP
(1997 data)(1999 data)
Korea, South1015,0203.412,0002.9%
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%
Liberia162NANA25 E5.5 E
Libya49NANA1,500 E5.8%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 Zealand707661.38241.6%
Nicaragua 149 27 1.5 25 0.9%
Niger 153 20 1.1 28 1.6%
Nigeria502,0011.42,200 E4.4%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 Guinea126631.4461.4%
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%



CountryRankUS Dept. of State:IISS:
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 Principe16500.9NANA
Saudi Arabia921,15014.421,80015.5%
Senegal 122 69 1.6 81 1.6%
Sierra Leone136485.911 E1.5%
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%
Somalia145NANA40 E4.6%E
South Africa442,3221.91,8001.4%
Spain 18 7,670 1.5 7,300 1.3%
Sri Lanka717625.18075.1%
Sudan824124.6424 E4.9%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%
Tajikistan1081131.795 E7.9%
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 Tobago118831.5620.9%
Tunisia 85 359 1.9 355 1.8%
Turkey 17 7,792 4.0 10,100 5.4%
Turkmenistan882994.6109 E3.3% E
Uganda 90 268 4.2 199 2.5%
Ukraine 28 4,285 3.8 1,400 2.9%
United Arab Emirates452,3066.83,2006.2%
United Kingdom635,2902.836,9002.6%
United States1276,3003.3275,5002.9%
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%
Vietnam343,3872.8890 E3.0%
Yemen 83 411 8.0 429 6.4%
Yugoslavia, Fed. Republic of651,2004.91,60012.3%
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.