A report by Ali Hajj, English adaptation by Nadine Sassine
A record level of military spending has been recorded worldwide over the past year. The latest reports from the Stockholm International Peace Research Institute revealed that global defense spending increased by 7%, reaching $2.4 trillion in 2023.
The increase in spending was primarily due to the wars in Ukraine and Gaza, prompting many countries to engage in an arms race.
What are the political and economic implications of this move?
While military spending may provide defense capabilities for the countries involved and support the military industries, it also leads to a reduction in spending in other economic sectors, exacerbates geopolitical tensions, and increases the likelihood of conflicts, according to economic expert Dr. Pierre el-Khoury speaking to LBCI.
For example, the United States, the world's largest spender on arms, increased its spending by 2.3%, followed by its competitor China, which increased its spending by 6%.
While this additional spending provides thousands of jobs in weapon factories, stimulates technological innovation, and enhances geopolitical influence, it also drains resources that could be used in other areas such as education and healthcare.
Russia, embroiled in the war in Ukraine, increased its defense spending by 24%, putting significant pressure on the country's budget, especially under the Western sanctions imposed on it.
In contrast, Ukrainian military spending increased by 51%, diverting the country's resources towards armament instead of development, despite the assistance from the West in terms of armament and financial aid, such as the recent US package worth $61 billion.
Moving to the Middle East, Saudi Arabia ranks first in military spending, recording a 4.3% increase in 2023. While this step may support Saudi national security, it consumes a significant portion of its national budget despite its efforts to diversify its economy through Vision 2030.
As for Israel, engaged in its war on Gaza since October 7th, it increased its spending by 24%. However, it still relies on its allies, especially the United States, for self-defense, especially in light of the recent Iranian strike.