Feature image – Pablo Martinez Monsivais/AP
Since 2007, Australia’s military expenditure has increased by over $15 billion. In 2017, spending reached its highest point at over $US25 billion. While there is no significant direct correlation between a countries’ gross domestic product (GDP) and their military might, the Australian government apply a two per cent rule to guide defence spending. In 2013, Tony Abbott, who was opposition leader at the time, introduced the rule that two per cent of GDP should be spent on defence. The target became part of a 10-year plan to increase military spending until 2020-21.
Source: SIPRI
This rule was not a new idea by Tony Abbott. NATO has had a two per cent rule for its alliance members since 2002 and many countries spend around one or two per cent of their GDP on military expenditure.
The sharp rise in the graph from 2013 indicates the return of the Liberal-National coalition to government, and the subsequent defence budgets gearing towards reaching two per cent of GDP in spending. In comparing Australia to some of the world’s leaders, you can see we sit around the same level as China and the UK, while two of the most powerful nations, Russia and the US, are bigger spenders.
Source: SIPRI
With growing tension in the South China Sea, Prime Minister Malcom Turnbull suggested in February this year that Australia may have to spend beyond the 2 per cent target. He said the uncertain times meant we should consider our contribution and involvement. It’s likely these comments may have been influenced by the US’ firm stance on containing China’s dominance in the region. As a vital ally, the US heavily affects Australia’s military involvement and support in international affairs.
Military expenditure (% of GDP)
Source: SIPRI
Two countries that stand out above the rest are Oman and Saudi Arabia. Both spent 10 or more per cent of their GDP on their militaries in 2017. Despite spending the highest percentage of their GDP, neither countries spend the most money on their military. According to the Stockholm International Peace Research Institute, the United States military budget in 2017 was over $US600 billion, more than the next eight countries combined. However, this dominance is not reflected in the graph as this spending still only makes up a small percentage of the GDP. What could be perceived from looking at the percentage of spending is how much defence is prioritised by different countries.
Australia’s military expenditure fares on par with similar, developed countries. While we don’t have the biggest defence budget, we do have a handy ally in the US, who continues to dominate the world’s military ranking. Based on rising tensions in the region we inhabit, and comments from our prime minister, it’s likely that our military spending will continue to rise in the future.
