Military Spending Research Articles

Военное сотрудничество США и их союзников в Северо-Восточной Азии: угрозы Тихоокеанскому флоту РФ

This article discusses the military policy and defense priorities of the USA and its allies in Northeast Asia – Japan, South Korea and Taiwan. The region is characterized by territorial disputes, such as those involving the Kuril Islands, and significant changes in military strategies and capabilities in the Post-Cold War, driven by new threats and technological advancements. The paper also examines the security architecture in the region, in particular, the strengthening of trilateral cooperation between the USA, Japan and South Korea. The primary focus is on the United States’ strategic pivot to Asia, which has led to enhanced military cooperation with Japan, South Korea and Taiwan, as well as extensive military exercises aimed at deterring potential adversaries. The study explores Japan and South Korea’s defense strategies, which include substantial increases in defense spending, acquisition of advanced weapon systems, and a shift towards more assertive military policies. Furthermore, the authors touch upon the issue of naval power and its role in shaping the geopolitical landscape of the region. Challenges faced by the Russian Federation’s Pacific Fleet are considered. The revival of Russia’s Pacific Fleet through modernization efforts, including the commissioning of modern submarines and ships, reflects Moscow’s intention to protect its maritime borders and assert its strategic interests amid growing regional tension and rivalry. The authors contemplate the consequences of the U.S.’ enhanced military presence in Northeast Asia, including the deployment of advanced missile defense systems and conducting large-scale military exercises with allies, presenting operational challenges for the Pacific Fleet, potentially limiting its maneuverability and strategic capabilities. The conclusion underscores the increasing complexity of the security environment, driven by Washington’s efforts to maintain its influence and counter perceived threats from China and Russia, which leads to an escalated risk of military confrontations in the region.

Актуальні проблеми стану та розвитку економічної системи України в умовах воєнного стану

A structural and system analysis of the state and development of the economic system of Ukraine in wartime conditions is carried out and a set of economic measures to counter the negative manifestations of the full-scale invasion of the territory of Ukraine by russia is proposed. The authors systematize the most significant and growing threats in the economic sphere under conditions of uncertainty: demographic crisis, deformed age structure of the population with a high proportion of elderly people; high number of migrants; extremely high dependence on external financial assistance; irregular flow of foreign aid and a decrease in its volume with a simultaneous increase in defense spending; structural imbalances in GDP. The authors note that forecasts for GDP growth will not lead to an increase in the quality of life of Ukrainians and their purchasing power. The authors emphasize that, given the unpredictability of the duration of hostilities, unpredictable financial and material losses, a colossal deficit of the State Budget of Ukraine, a decrease in the stability of the economic system, and further inflow of external financial assistance are the main sources of funding for the military and social spheres. The main directions of reconstruction of the economic system of Ukraine to achieve the highest possible level of economic and financial self-sufficiency of the national economy are proposed; increasing the level of resilience and development of domestic enterprises in the conditions of military conflicts; prioritizing military spending; return of migrants to their homeland; sustainable growth of labor productivity of specialists in all sectors of the economy. This is especially important for the agro-industrial complex – through the development of industrial parks, technology parks, innovation parks, ecological agroparks, clusters, etc. Also, in order to generate additional sustainable income for socially vulnerable segments of the population, it is important to develop social entrepreneurship and the «silver economy» in territorial communities.

ТЕНДЕНЦІЇ РОЗВИТКУ ПОДАТКОВОЇ ПОЛІТИКИ: ВІДНОВЛЕННЯ ПІСЛЯ ВІЙНИ

The article is devoted to the study of trends in the development of domestic tax policy. The author analyzes the importance of the tax system for the recovery of Ukraine's economy after the war, since the military conflict and the unstable political situation in the country put serious pressure on the economic system and require strategic decisions on tax policy. Based on a report by the European Business Association and other sources, the current state of the tax system and its impact on the Ukrainian economy are analyzed. After reviewing the current economic situation in Ukraine, the article highlights the negative consequences of the military conflict, including significant damage to infrastructure, disruption of production, and labor migration. The increase in defense spending during the conflict also creates additional financial pressure on the state budget. It is noted that these changes require a positive review from international partners to ensure the financial stability of the country. The article discusses proposals for combating the shadow economy and optimizing tax revenues by creating favorable conditions for the return of emigrants to Ukraine and attracting funds from Ukrainians working abroad. The article also presents the main provisions of the National Revenue Strategy of Ukraine until 2030 regarding the internal reform of tax and customs authorities, restoration of taxpayers' confidence in tax authorities, and implementation of tax and customs policy measures. Particular attention is paid to the principles of reasonable management of tax audits in times of crisis. The article analyzes the methods and strategies aimed at ensuring compliance with the law and maintaining trust in the tax system in an unstable environment. The author also emphasizes the importance of reasonable management of audits in the context of military conflict. It is noted that effective regulation and supervision of tax audits can help reduce risks to business and maintain confidence in the tax system. The article identifies the key areas for tax reform in Ukraine, including measures to increase tax revenues, improve the tax system and ensure sustainable economic development of the country in the context of military conflict. Overall, the article provides an in-depth analysis of the current state of Ukraine's tax system and suggests constructive strategies for tax reform in the context of the crisis, with the aim of supporting the country's economic recovery and stability.

Defence Spending in the European Union

Defence Spending in the European Union

Japan's "Three National Security Documents" and Defense Capabilities: Reinforcing a Radical Military Trajectory

Abstract: Japan's government argues that its 2022 three national security documents are at the same time transformational and yet maintain overall continuity in military and security policy. This article through investigating pivotal aspects of the defense reforms—perceived threats and strategy, defense budgets, counterstrike doctrine and capabilities, first island chain defense, and domestic policy and public resolve for implementation—weighs the strength of arguments for essential continuity versus step change. It concludes that the three documents fundamentally change Japan's exclusively defense-oriented policy and the division of labor in the U.S.-Japan alliance, further accelerate Japan's radical military trajectory, and pose important implications for regional security.

Benford's law: Planning and analysis of the planned values in the defense budget

Benford's law: Planning and analysis of the planned values in the defense budget

Left-Wing Butter Vs. Right-Wing Guns – Government Ideology and Disaggregated Military Expenditures

Left-Wing Butter Vs. Right-Wing Guns – Government Ideology and Disaggregated Military Expenditures

The FDI Inflows in Low-Income and Lower-Middle-Income Countries: The Moderating Role of Military Expenditure

The FDI Inflows in Low-Income and Lower-Middle-Income Countries: The Moderating Role of Military Expenditure

Інструменти грошово-кредитної політики воєнного часу

Wartime poses numerous challenges at the micro and macro levels. One of the key challenges in this context is macro-financial stability. The answer to this challenge can be provided by an effective transmission mechanism of the State’s monetary policy. The aim of the article is to analyze the features of a set of measures taken by the NBU in the period of 2022–2023 in response to the intensification of russian armed aggression in the plane of the transmission mechanism of monetary policy. The article analyzes the challenges of monetary policy in wartime, including financing military needs, ensuring the stability of the banking system, managing international reserves, and exchange rate flexibility. The key measures on the part of the NBU, such as the purchase of government bonds, ensuring the liquidity of the banking system and stimulating economic growth, are highlighted. A significant increase in international reserves, which has become an important factor in macro-economic stability in wartime, is indicated. The specifics of monetary policy in the conditions of wartime, its impact on investment, consumption, and inflationary pressure are considered; the need for close cooperation between the Central Bank and the Government in this area is underlined. Particular attention is paid to the financing of military expenditures and their impact on monetary policy. The measures taken by the NBU to prevent a liquidity crisis and maintain the solvency of banks are analyzed. The contradiction between the financing of the budget deficit and the stability of the national currency is considered. The need to maintain macro-financial stability through a high discount rate and exchange rate adjustment is indicated. The importance of maintaining the stability of the financial system in wartime conditions is emphasized. The proposed study can be useful for researchers and analysts of monetary policy, central banks, governments, and international financial organizations. Prospects for further research are proposed in the direction of integration of Ukraine’s monetary policy in the context of development of the national economy at the post-wartime stage of development.

The implications of increasing military spending on human security: a global perspective

The implications of increasing military spending on human security: a global perspective

РАСХОДЫ НА ОБОРОНУ В РАМКАХ ПОЛОЖИТЕЛЬНЫХ ВНЕШНИХ ЭФФЕКТОВ ОТ ПРОИЗВОДСТВА ВЫСОКОТЕХНОЛОГИЧНОГО ОРУЖИЯ (НА ПРИМЕРЕ АРМЕНИИ)

The article explores the issues of defense spending optimization in Armenia from the point of view of possible positive externalities of the production of high-tech weapons. It attempts to answer the question of how to solve the well-known dilemma of “guns versus butter” for Armenia amid the current geopolitical and geoeconomic challenges. To achieve the objectives, the differences between the concepts of effectiveness and efficiency of defense spending were considered. The potential impact of the production of high-tech weapons on the economy and the military sector was discussed through the prism of the “exploration-exploitation” dilemma. Such an approach is aimed to emphasize the differences between the economic efficiency at different stages of new military technologies’ life cycle and the opportunity cost of military spending. As for possible positive externalities of the high-tech weapons production, an improvement in the balance of payments, relieving the public debt-servicing burden, developing human capital, increasing employment, creating and deepening bilateral and multilateral military-political and military-technical cooperation are presented as such in the article. However, peace and transfer of technology to other sectors of the economy, in defiance of the accepted approaches, have not been considered to the externalities of the high-tech weapons production. The study concluded that the redistribution of a part of defense spending to the high-tech sector, the ultimate goal of which is to gradually ease the burden of military spending for the state, can be the beginning of qualitative changes in terms of economic development and security duo to the positive externalities of innovation and mastery of high-tech industries.

Analýza aktuálnych trendov výdavkov na obranu v Európskej únii pod vplyvom konfliktu na Ukrajine

The security situation in Europe changed dramatically after the military invasion of Ukraine by the Russian Federation on February 24, 2022. The unexpected return of the conflict to the European continent requires the adoption of measures in several areas, including an increase in defence funding. Sufficient defence abilities and capabilities are key for the member states of the European Union to be able to face current security challenges and threats. The European Union is asked to become a stronger and more reliable guarantor of security, which can also be achieved through the growth of defence spending and its effective use to procure the required capabilities, and capacities. Therefore, the aim of the article is to analyse the current development of defence spending in the European Union, for which we use relevant scientific methods of analysis, synthesis, and comparison.

Assessing The Strategic Imperatives and Future Trajectory of Pakistan's Defense Industry Development

Introduction: Understanding the critical drivers behind the advancement of Pakistan's defense industry requires a thorough assessment of key factors. These include geopolitical dynamics, security threats, technological innovations, economic conditions, and national defense policies. Such an analysis reveals the pressing need for Pakistan to strengthen its defense industry. Methodology: The study employs a forward-looking examination to delineate the probable course of Pakistan's defense industry in the coming years. This involves evaluating emerging trends, potential opportunities, foreseeable challenges, and strategic imperatives poised to influence the sector's growth and evolution. Results/Findings: The analysis highlights various factors influencing the development of Pakistan's defense industry, including the adoption of cutting-edge technologies, allocation of defense budgets, engagement in international partnerships, leveraging domestic capabilities, and navigating the shifting political landscape. These insights provide a comprehensive understanding of the present state, obstacles, and future potential of Pakistan's defense sector. Future Direction: The research underscores the importance of informed decision-making in defense policy formulation, strategic investments, fostering technological innovation, and forging international partnerships. This discernment is crucial for enhancing Pakistan's defense capabilities and navigating the complexities of contemporary political landscapes and global dynamics.

The nexus between asylum seekers and defence spending in European NATO member states: a quantitative study of securitisation dynamics

ABSTRACT This paper examines the relationship between the defence spending of European NATO members and their exposure to asylum seekers. While research shows that threat perceptions and domestic politics partly determine the defence spending of a state, the effect of migration has so far not been studied. This is remarkable because migration is increasingly framed as a security threat, also by NATO and European Union member states. Using a panel analysis, this paper explores the relationship between the defence spending of 23 European NATO members and the number of asylum seekers they register each year between 2000 and 2020. Results show a positive and significant relationship between the number of asylum seekers registered in a country and its overall military expenditure relative to GDP, equipment spending, and infrastructure spending. These findings shed new light on the origins of defence spending in collective security alliances, at a time when transatlantic burden sharing is at the centre of societal and academic debates.

El Gasto público en Defensa y Seguridad Nacional en el Perú, periodo 2018 – 2022

The public spending on defense and national security not only refers to military spending, it also includes the execution of activities and projects that contribute to the protection of national assets and interests, the rule of law, governance, social peace, and human rights. of the population residing in the country.However, currently in Peru, military spending is the main component of the budget allocated for defense and national security, due to some extent to the fact that the National Multisectoral Security and National Defense Policy approved in 2021 has not yet been fully implemented.

Archimedes’ Constant

In examining the area of a square within the area of a circle whose diagonal line bisects the square into two equal halves of the right triangles; is the diameter of that circle’s area in consideration. Clearly, transformation of a circle determines the ratio of expansion- in relation to its radius given that it is increasing by half. Thus, as the difference of the areas of the relative circles is half of pi; then subtracting the larger area of a circle from its larger relative square which is within its circumference: with that of the smaller area of a circle whose smaller square is also within its radius- results into half of pi minus half. Where then it is easier from such, to deduce the Archimedes constant.while the GDP is projected to increase from $603 billion in 2020 to $15 trillion in 2063. The military spending is projected to increase from $2.6 billion to $33.94 billion, and the trade balance is projected to increase from $15 billion in 2020 to $29.99 billion in 2063. The study concludes that the projected indicators align with the 2063 Africa Agenda and recommends policies that would foster sustainable economic growth and development in Nigeria. By understanding the trends and patterns of these socioeconomic indicators, policymakers can make informed decisions about how to allocate resources and promote sustainable development in Nigeria and beyond

Does Defense Spending Increase Economic Growth in Turkey? Revisited with Extended ARDL Approach

Savunma harcamaları, ülkenin varlığını sürdürebilmesi ve içeriden ve dışarıdan gelebilecek tehditlere karşı koyabilmek için yapılması gereken en önemli harcama kalemlerinden biridir. Savunma sanayine yapılan harcamalar, ileri teknoloji gerektiren ürünlerin gelişmesini ve kaynakların ülkede kalmasını sağlayarak ülke ekonomisinde katma değer meydana getirmektedir. Bu makalenin amacı Türkiye de savunma harcamaları – ekonomik büyüme ilişkisini, genişletilmiş ARDL yöntemi ile ortaya koymaktır. Bağımlı değişkenin ekonomik büyüme, bağımsız değişkenlerin savunma harcamaları ile ihracat olduğu çalışmada, değişkenlerine ait veriler 1961 – 2022 yıllarını kapsayacak şekilde ele alınmıştır. Sonuçlar, Türkiye’nin savunma harcamaları ve ihracat değişkeni ile milli gelir artış hızı arasında uzun dönemli “pozitif” bir ilişkinin olduğu, tespit edilmiştir. Bu durum savunma harcamalarında maliyeti düşürmeye odaklanmanın ekonomik büyümeye fayda sağlayabileceğini göstermektedir. Değişkenler arasındaki nedensellik ilişkilerini ortaya koymak için Hacker ve Hatemi-J (2006) Simetrik Nedensellik Testi yapılmıştır. Nedensellik testi sonuçlarına göre savunma harcamalarından ekonomik büyümeye doğru tek yönlü, ihracat ile ekonomik büyüme arasında ise çift yönlü nedensellik ilişkisi tespit edilmiştir. Bu bulgulara dayanarak, makale politika yapıcılar için bazı kritik öneriler sunmaktadır.

The Developments in the Arms Market in the Context of the Military Conflict in Ukraine

The military conflict provoked by the Russian Federation in Ukraine has created major imbalances in international security. In this fluid and unpredictable security environment, the defence industry has reacted promptly, increasing production and export of military equipment and modern weapon systems to counterbalance the aggressive actions of the Russian Federation. The data analysed indicate the Russian Federation’s continuing concern to make significant defence investments, including in the defence complex, which reveals its interest in continuing the military conflict in Ukraine. As for the Euro-Atlantic states, they are trying to counter the threat posed by the Russian Federation by supplying Ukraine with high-performance military equipment, while investing in their militaries to supplement the weapons supplied to Ukraine. After the outbreak of the military conflict in Ukraine, Romania has managed to increase its exports of arms and ammunition, creating favourable conditions for profitable partnerships with large companies in the Euro-Atlantic area. At the same time, Romania has increased its defence budget allocation to 2.5% of GDP, and there are discussions to further increase this percentage in the coming period. A substantial part of this budget allocation is earmarked for the procurement of modern military equipment to NATO standards for the Romanian armed forces.

Public Policy for National Economic Recovery through the Coordinating Ministry for the Economy of the Republic of Indonesia

In the past two years, the resilience of the national economy has been tested by shocks from the unprecedented global crisis of the COVID-19 pandemic that began to spread in Indonesia in early 2020. By implementing various policies, the government reacted quickly to revive the economy. On the contrary, the Coordinating Ministry for Economic Affairs of the Republic of Indonesia realizes that global uncertainty and challenges are the factors in government decision-making regarding the formulation of an effective and efficient national economic recovery strategy. This national economic recovery also involves the defense sector in accelerating and implementing policies. Defense economy is closely related to the use of the defense budget during peacetime. During the COVID-19 pandemic, there was a lot of refocusing, one of which was the reallocation of the defense budget to support social safety nets in the form of direct cash assistance. This research aims to find out how far the Indonesian government has gone through the national economic recovery policy after the COVID-19 pandemic in various aspects. Descriptive qualitative research methods are used. In this study, national economic recovery contains decreasing public mobility in the context of controlling COVID-19, fiscal policy as a shock absorber, price stabilization, improving the quality of human resources through the Pre-Employment Card program, encouraging MSME development through the expansion of the MSME sector, and continuing structural reforms including components that must be met regarding government policies for economic recovery and price stability, according to the study findings.

Evoluțiile pieței de armament în contextul conflictului militar din Ucraina

The military conflict provoked by the Russian Federation in Ukraine has created major imbalances in international security. In this fluid and unpredictable security environment, the defence industry has reacted promptly, increasing production and export of military equipment and modern weapon systems to counterbalance the aggressive actions of the Russian Federation. The data analysed indicate the Russian Federation’s continuing concern to make significant defence investments, including in the defence complex, which reveals its interest in continuing the military conflict in Ukraine. As for the Euro-Atlantic states, they are trying to counter the threat posed by the Russian Federation by supplying Ukraine with high-performance military equipment, while investing in their militaries to supplement the weapons supplied to Ukraine. After the outbreak of the military conflict in Ukraine, Romania has managed to increase its exports of arms and ammunition, creating favourable conditions for profitable partnerships with large companies in the Euro-Atlantic area. At the same time, Romania has increased its defence budget allocation to 2.5% of GDP, and there are discussions to further increase this percentage in the coming period. A substantial part of this budget allocation is earmarked for the procurement of modern military equipment to NATO standards for the Romanian armed forces.