War on terror accelerates world military spending

Washington accounted for three quarters of the increase, the Stockholm International Peace Research Institute (SIPRI) said in its Yearbook, a defense and security policy publication widely recognized for the reliability of its data.

Russia overtook the United States as the world largest arms exporter while China was the largest importer followed by India, locked in an arms race with impoverished nuclear rival Pakistan.

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But with outlays up 10 per cent year-on-year at $336 billion, the United States accounted for 43 per cent of global military expenditure in 2002, up from 36 per cent in 2001.

"The rest of the world is not prepared, or cannot, follow the USA's example in increasing military expenditure," SIPRI said, noting that combined arms expenditure of the West European members of the NATO defense alliance fell by three percent in real terms between 2000 and 2002.

"While in the USA the war on terrorism was a major factor in the huge growth in military expenditure in 2002, this was not the case in Europe."

US defence budget estimates for fiscal year 2003 showed a planned increase in arms procurement of 32 per cent over the 2002-2007 period to $78 billion this year. Total US defence spending was set to rise by just over six per cent in 2003.

Russia's defense budget was flat in 2002 but looked set to increase by 7-8 per cent in real terms this year, SIPRI said.

The value of Russian arms exports, on the rise since 1999, increased by more than $1 billion to $4.8 billion last year. With 36 per cent of global deliveries, Russia overtook the United States as the world's largest supplier of arms to other countries, primarily China and India.

China's military spending was estimated by SIPRI to have risen by 18 per cent in 2002 and would grow 9.6 per cent in 2003.

China was the No. 1 arms importer last year with 14 per cent of the world's total.

India's arms imports increased 72 per cent in 2002, making it the second largest buyer of arms from abroad. Arms imports by Pakistan also grew considerably last year, SIPRI said.