FIRST ANNIVERSARY LECTURE — Special talk on Military Spending by Dr. Sanjeev Gupta held on October 31, 2019
- Focus is not only limited to India but global.
- Excessive military spending is unproductive and not useful for the economy.
- Significant drop in global military spending.
- Expenditure on health and education is rising-nearly 2 percent of GDP for both advanced and developing countries.
- 2018- USA spending on military was US $ 648798 million whereas China, Saudi Arabia and India’s spending were US $ 249997million, US $ 67555 million and US $ 66510 million, respectively.
- Most countries (68 countries) spend 2-5 percent of GDP on military, 13 countries spend above 5 percent of GDP - period covered from 1970 to 2018.
- 31 countries spend 10-20 percent of total expenditure on military while 7 countries spend above 20 percent of total expenditure on defence- period between 1970 to 2018.
- 98 countries show convergence in military spending and the trend is declining whereas in 13 countries it is increasing.
- Military spending is also dependent on neighbour’s spending on defence and quality of institutions.
- In developing countries, there is a positive relation between the level of spending in neighbour’s and country’s own spending.
- Social spending crowds out defence expenditure in developing countries.
- Improved governance can lead to reduction in military spending.