CONTENTS · 2019-09-06 · Table IV shows estimated arms imports and exports for groups and regions...

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Transcript of CONTENTS · 2019-09-06 · Table IV shows estimated arms imports and exports for groups and regions...

  • CONTENTS

    Page

    FOREWORD ......•...•.•.....•.....•.•.....•......•......••. iii

    WORLD MILITARY EXPENDITURES AND ARMS TRADE 1963-73

    Introduction ........................................... 1

    Trends in World Military Expenditures . . . . . . . . . . . . . . . . . . . . 1

    Developed and Developing Worlds ........................ 2

    World Arms Trade............. ............ ............. 3

    Relative Burden ........................................ 3

    STATISTICAL NOTES

    Coverage and Aggregation

    Country Coverage.. . . . .. . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 4

    Computational Procedures

    Definitions and Sources

    Groups and Regions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

    Developed and Developing Countries .................... 4

    Values and Inflation .................................. 5

    Conversion Rates ..................................... 6

    Prices. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . 7

    Growth Rates. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . 7

    Estimate of Soviet Military Expenditures ............... 8

    Population ............................. . . . . . . . . . . . . . . 9

    Armed Forces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Gross National Product. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Military Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Arms Trade................... ...................... 11

    Relative Burden ...................................... 12

    STATISTICAL TABLES

    L Military Expenditures, GNP, Population, and Armed Forces,

    by Group and Region by Year... .............. .......... 14

    II. MilitalY Expenditures, GNP, Population, and Armed Forces,

    by Country by Year ................................. 20

    III. World Arms Trade, Cumulative Total 1964-1973, Recipients

    by Major Suppliers .................................. 67

    IV. Arms Trade by Groups and Regions by Year. . . . . . . . . . . . . . 72

    V. Arms Trade by Country by year..... . . ...... . ...... ..... 78

  • FOREWORD

    This edition, the first under the title of World Military Expenditures and Arms Trade, is an expanded version of the annual publication World Military .Expenditures which the Arms Control and Disarmament Agency previously published. In addition to including data on the arms trade, as the new title suggests, it updates information contained in that earlier publication---on military expenditures, gross national product (GNP), population, and armed forcesthrough 1973. In certain cases it also contains revisions in the data presented in earlier editions, where new and more accurate information has become available. Moreover, this new publication, for the first time, presents the data not only in terms of "current" dollars (Le., expenditures as they appeared in each year, converted to dollars at going exchange rates), but also in terms of "constant" dollars-making allowance for the effects of inflation (using 1972 as the base year for prices and conversion rates).

    The inclusion of such revisions and additional data has been facilitated by the use of a computer.

    Earlier editions carried information on public health and public education expenditures. This new edition omits such information-partly because of the paucity of data, but also because the omission of private health and education expenditures led to distorted comparisons between free market and centrally planned economies.

    Accurate information is essential for developing sound arms control arrangements. In the first instance, therefore, this is a working document for the use of government officials who are responsible for developing arms control proposals. Since arms control is quite literally "everybody's business," however, we hope that this publication will prove useful to many-in the academic community, in the press. and elsewhere-in focusing attention on the problems and possibilities of reducing global military expenditures and limiting worldwide arms transfers.

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  • WORLD MILITARY EXPENDITURES AND ARMS TRADE 1963-73

    Introdudion

    The data in this publication are estimations obtained from sources considered the best available at the time of compilation. Details on sources and methodology are contained in the Statistical Notes below.

    In presenting this compilation, ACDA acknowledges that other persons or organizations drawing similar data from other sources (or from the same sources at different times) would undoubtedly arrive at figures different in detail from those presented in this publication. Moreover, some of the figures displayed in the tables in this booklet are extrapolations and estimates based upon incomplete time

    Chart I

    TRENDS IN MILITARY EXPENDITURES

    AS PERCENT OF GNP

    1963-1972

    PERCENT (USING CONSTANT 1972 DOLLARS I 10r---------------- ________________~

    9

    5 ' •• - •••! ••--_•...

    ·f····~~;~;;;~r;,:::i::

    8

    :~

    1[ 0_· --_L-__~__L-~__~___ .L__~__L_~

    1963 '64 '65 '66 '61 '68 '69 '10 '71 1912 Data 10, 1973 t.c.m~lltl

    series from sources of nonuniform quality. It is unwarranted, therefore, to draw precise conclusions on such data, for they only sketch trends and suggest orders of magnitude.

    Time series for military expenditures, gross national product (GNP), and arms trade for each country and group of countries are presented in current and in constant 1972 dollars.

    The commonly accepted method of computing current dollar series. by means of annual official exchange rates was used because of the desirability of expressing each country's annual military expenditures in actual current dollar purchasing power.

    However, severe fluctuations in exchange rates during the past 3 years make recent years' current dollar figures especially inappropriate for purposes of country comparisons and, in many cases, for purposes of monitoring trends within a country.

    By using the constant series, ambiguities and illogical comparisons are to some extent minimized. The constant 1972 dollar series are developed by means of annual country GNP deflators and the 1972 exchange rates. This method corrects each year's data as expressed in domestic currency for the impact of inflation within a country and expresses the result in 1972 dollars. The year 1972 is used as the base year for the constant values shown because the data for most countries are complete through that year. Ratios* derived from the several absolute value series are expressed in constant dollars only.

    Trends in World Military Expenditures

    World military expenditures expressed in 1972 constant dollars* 1< were about $197 bil

    '"As, for instance, military expenditures as a percentage of GNP, GNP per capita, etc.

    **All dollar totals appearing in the text are expressed in 1972 constant dollars. They are actually dollar equivalents derived from local currencies and corrected to the 1972 base year.

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  • Chart II

    MILITARY EXPENDITURES IN THE DEVELOPING WORLD

    I BILLION

    ICONSTANT 1!l21 1963-1972

    22

    20

    18

    16

    14

    12

    10

    8

    6 Near East •

    l ,..."''''....,. ...1 •••• , ••••1

    4 Latin America ................ " .. ....::;.::: ...-_.... -.. 2 ...... ':1/111............~..:,.,:l1fl - ......' ..."~

    ~...::.... ~-:::;....~-~ ~~~~~""'~~"~~"'~Africa South ASia I

    o· 1 I I .. L~~ 1963 '64 '65 '66 '61 '68 '69 '10 '11 1912

    Data for 1913 IlItlmplett

    lion in 1963 and are estimated at about $241 billion for 1973. The gro¥.rth of real world military expenditures has apparently decelerated in the seventies; the increase during the 196972 period was less than the increase during the 1963-66 period or the 1966-69 period.

    Two tables of data are shown: Table I lists estimates of military expenditures, GNP, population, and armed forces by regions and groups of countries by year. Table II shows the same data by country by year. Note: Because data for 1973 are incomplete for many countries, the 1973 totals in Table I are also inoomplete, particularly for Africa and the Near East.

    As shown in the present survey of 136 countries, since 1963 the world has spent directly on military security the sum of more than $2.5 trillion. Military spending retains a high priority in the budgets of most nations.

    In considering the world totals over the years shown, the reader should recall that the figures reflect abnormal military expenditures

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    because of the conflicts in East Asia and the Near East. Also, because the time series end in 1973, the effects of the energy crisis and higher crude oil prices are not reflected in this period but will be isolated in future editions.

    Developed and Developing Worlds

    The share of the developing countries' GNP devoted to military expenditures is beginning to approach that of developed countries. Also, the gromh rate for military expenditures and armed forces in developing nations was higher than the rate in developed nations. These increases are influenced, of course, by the conflicts in East Asia and the Near East and to some degree by the need felt by newly independent nations to establish their armed forces.

    For the developing countries, estimated military expenditures generally understate the level of military programs, because the value of military assistance received in the form of grants is not included. Grant ;tid is not a spending burden on the recipient; instead, in this publication, it is counted in the military expenditures of donors, not recipients.

    It would be incorrect to assume from the above that most developing countries are put-

    Chart III

    WORLD ARMS EXPORTS I BILLION 1963-1973

    ICONSTANT 19721

    10 ,.____.._._.~..__.._~.._ ...___~ _ __,

    8

    6

    4

    o L-~~__~~__~~..__L_-L__I_~ 1963 '64 '65 '66 '67 '68 '69 '70 '71 '72 1973

  • ting strains on their economies by military spending. Patterns of military expenditures vary widely throughout the developing world. In Latin America, South Asia, and Africa military expenditures have been relatively modest. For example, defense budgets in all of Latin America grew from $1.9 billion in 1963 to an estimated $3.3 billion in 1972. As a proportion of GNP, estimated annual military expenditures in the Latin American Republics have remained fairly stable at about 2 percent or less. Annual military expenditures per capita rose slightly from 1963 to 1972, from $8.53 to $11.25.

    In contrast, East Asia and the Near East, continuing crisis areas during the period, exhibited less stability in military expenditures.

    World Arms Trade

    Three tables of arms trade data are presented. Table III shows estimated amounts imported by recipient countries, broken out by major sup

    pliers, for the cumulative 10-year period 196473. Note that in this table the estimates, which must be considered only very rough approximations, are given in current dollars. Table IV shows estimated arms imports and exports for groups and regions by year. Table V depicts estimated arms imports and exports by country, broken out by year, in both current dollars and in constant 1972 dollars. See the Statistical Notes and footnotes under each table for explanations of these rough approximations.

    In 1963 the estimated value of worldwide arms exports was about $4.4 billion. In 1973 the estimated value was about $8.7 billion. (Both figures are in constant 1972 dollars.)

    Relative Burden

    Chart IV displays the countries in this survey according to two ratios: military expenditures as a proportion of GNP and per capita GNP.

    Chart IV RELATIVE BURDEN OF MILITARY EXPENDITURES, 1972

    Military Expenditures as I less than

    % of GNP $100

    More than 10% I Cambodia laos Vietnam,

    North

    5-10% Burma Chad Somalia

    I Ethiopia India Indonesia Mali Rwanda

    2-4.9%

    GNP Per Capita -

    $2,000-2.999$1,000-1,999I $100-199 $200-299 $300-499 $500-999

    Iran I Saudia I IsraelI Vietnam, iEgypt ' South 'Jordan Iraq I Arabia

    SyriaYemen, (Aden) I

    Bulgaria Czechoslo-EquatorialChina, Peo· China (Tai- IAlbania Hungary vakiaGuineapies' Re· wan) ICuba

    GermanyPolandKorea, North Mongoliapublic of Nigeria ' Malaysia Pakistan i Zambia Sudan I

    Korea,Bolivia Republic ofCentral

    MoroccoAfrican ThailandRepublic

    Guinea

    Ecuador Turkey

    Qatar, Portugal I (G.D.R.) i Romania Soviet Unioni ' Singapore United

    I Kingdom

    Brazil Greece Italy

    lebanon libya

    Peru

    Spain Yugoslavia

    South Africa,

    Republic of

    More than $3,000

    United Arab Emirates

    United States

    Australia Belgium Canada Denmark France

    Yemen Mauritania Uruguay Germany (San'a) Tanzania (F.R.G.)

    Uganda Kuwait Zaire

    I i

    Afghanistan DahOmey Cameroon Burundi

    1-1.9% Ghana

    Upper Volta Haiti Kenya Honduras Malagasy liberia

    Republic Philippines Niger Senegal Sri Lanka Togo

    I The Gambia Botswana

    lesotho BangladeshLess than 1%

    S;,""~", ISw";""dMalawi Nepal

    I I

    Algeria Colombia Congo Dominican

    Republic EI Salvador Guatemala Guyana

    I Ivory Coast INicaragua

    Paraguay , Tunisia

    TM~~;itius 0m

    1 ,"

    Chile Gabon Rhodesia,

    Southern

    ICosta Rica '

    Jamaica

    Malta

    Mexico

    Panama

    I Netherlands Norway Sweden

    Argentina Cyprus Ireland Venezuela

    Austria Finland New Zealand

    Switzerland

    ; Trinidad and Japan Iceland Tobago luxembourg

    United States Arms Control and DIsarmament Agency

  • STATISTICAL NOTES

    A major purpose of this report is to provide a comprehensive picture of the world's military expenditures, armed forces, and arms trade, detailed by country and region. The report also includes gross national product (GNP) and population.

    Although the best of the readily available international and domestic sources were used, the reader should be aware that the reported data are not fully comparable and equally reliable. The national data from which the reported information is derived may differ in definition and accuracy. Conversion from national currencies into dollars can lead to important distortions in various time series, particularly in cases of rapid inflation or sharp changes in exchange rates. In order to achieve comprehensiveness, judgmental estimates were made in a few cases where data were unavailable or inadequate.

    The 1973 data for many countries are not yet available. No attempt was made to estimate these gaps individually.

    COVERAGE AND AGGREGATION

    Coun,ry Coverage

    This report covers a total of 136 countries. Of the present U.N. membership of 135, the following countries are not listed in this report: the Byelorussian and Ukrainian Soviet Socialist Republics (considered constituent republics of the Soviet Union), the Bahamas, Barbados, Bhutan, Fiji, and the Maldives (small developing nations for which data are not generally available). Nine other small independent states, with a combined total 1973 population of 400,000, are also excluded.

    Of those countries that are not members of the United Nations, eight were included in this report: Bangladesh, the Republic of China, the two Koreas, Switzerland, Southern Rhodesia, and the two Vietnams.

    Of the reported countries, 18 have become

    independent since 1963. Data for them are normally shown in the tables beginning with the first year in which they were independent for more than 6 months. In a few cases, arms trade data are shown for pre-independence years.

    Groups and Regions

    Country groupings and regions in this report are essentially geographical. It should be noted, however, that only the United States and Canada are represented in "North America," and that Mexico is included with Central and South America as "Latin America." Similarly, Egypt is assigned to the "Near East" with other Asian countries, rather than to "Africa." Total North Atlantic Treaty Organization (NATO) consists of the North American nations and those of European NATO.

    In addition, the 13 nations which comprise the Organization of Petroleum Exporting Countries (OPEC) are displayed as a group. These are geographically disparate: Iran, Iraq, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates in the Near East; Indonesia in East Asia; Algeria, Gabon, Libya,and Nigeria in Africa; Ecuador and Venezuela in Latin America.

    Developed and Developing Counfries

    Of the 136 countries covered in this report, 28 are classed as "developed" and 108 as "developing." The developed countries include all those in North America; in Oceania; in European NATO except Greece and Turkey; in the Warsaw Pact except Bulgaria; and also Austria, Finland, Ireland, .Japan, South Africa, Sweden, and Switzerland. (A listing of the countries comprising each region or group can be found in Table III, where developed countries are denoted with an asterisk.)

    The developing countries include all those in Latin America, in the Near East, in South Asia, in East Asia except Japan, in Africa

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  • except South Africa, and also Albania, Bulgaria, Greece, Malta, Spain, Turkey, and Yugoslavia in Europe.

    For the non-Communist countries, assignment to one or the other category follows the practice employed by the U.S. Agency for International Development (AID). For both nonCommunist and Communist countries, assignment is primarily based on GNP per capita. Most of the countries classified as developing have a 1972 GNP per capita below $1,500. Exceptions are Bulgaria, Libya, Israel, Qatar, Kuwait, and the United Arab Emirates. Conversely, below the $1,500 level but classed as developed are the Republic of South Africa and Portugal. These exceptions are based on factors such as national literacy and mortality rates, levels of industrialization, and terms of trade (relative export and import prices) which override the simplistic GNP per capita criterion.

    COMPUTATIONAL PROCEDURES

    Values and Inftation

    Several options are available in presenting data concerning world military expenditures and arms trade. Trade levels may all be given in a common unit, e.g., dollars, or each may be shown in the currency of the nation involved. They may be listed in current prices (Le., unique to each year) or in constant units. If the latter are used, a reference year must be chosen. Arms trade might also be reported in physical units: numbers of tanks, airplanes, or ships. Among these alternatives we have chosen to show the data for world arms trade in terms of both constant (1972) and current U.S. dollars.

    A comparison of the arms trade of various countries by numbers of physical units can be useful for obtaining a rough measure of relative military capabilities. However, the variations in characteristics of systems produced by different countries may limit severely the validity of such comparisons. The variation in the military worth of particular types

    of systems in various environments further complicates such comparisons.

    For purposes of obtaining an approximate comparison of the economic value of the arms trade, a standard currency value, the U.S. dollar, is used as a common surrogate for armament acquisitions.

    However, despite the use of a common unit, close comparisons of imports and exports with the other various series are unwarranted because of the inter-nation factors reflected in the arms trade data. The disparities among national economic systems generate differences in the extent to which weapons prices represent true production costs in different nations-the differences are particularly significant between Communist and nonCommunist economies. Furthermore, much of the international arms trade involves barter arrangements, multiyear loans, discounted prices, and partial debt forgiveness, so that acquisition by some nation of a given quantity of armaments does not necessarily imply an equivalent burden on its economy.

    Thus, the arms trade values shown are only best estimates of the U.S. dollar value of armaments shipped from each nation during a given year and should not be related in detail to the local economies. The quality of these estimates is difficult to assess because of the lack of detailed official data on arms trade activities outside the United States. The quality of these estimates is further impaired by the variations in international exchange rates during any given year and the difficulty of establishing any meaningful exchange rates at all between Eastern and Western nations.

    Widespread inflation over the past decade introduces significant distortions into the essence of the arms trade data. The armaments procurable for a million U.S. dollars in 1964 cost considerably more dollars in 1973. Thus the reporting of annual purchases only in equivalent current dollars for each year would present an impression of inordinate growth in arms trade which seriously misrepresented the physical transfer of armaments among nations. Yet no simple compensation for in

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  • flation is entirely valid. Inflation rates vary among nations; in particular, they may differ between supplier and recipient for a given series of arms transfers. Furthermore, the inflation rate for a nation's economy as a whole is not necessarily representative of those economic sectors particularly involved in the production of armaments. In the United States, for example, the interindustry coefficients relating the electronics industry to other sectors have changed significantly during the last decade, while such electronic equipment as radars, missile guidance packages, and communications hardware have simultaneously claimed an increasing proportion of armament costs. Unfortunately, no basis exists for accurately reflecting inflation's impact on armament types, even if separate inflation rates for different economic sectors in different nations were available. Thus, the arms trade estimates shown herein inevitably are imprecise, having been influenced by error-inducing forces.

    In general, neither the magnitudes nor the directions of these individual contributions to error are known. Overall inflation, however, clearly generates a very significant bias in representing the growth of physical arms trade in the world. To provide an approximate' but consistent compensation, we have also shown the values in constant 1972 dollars, using the U.S. implicit GNP deflators as common deflators for all arms trade. This conceptual oversimplification is mitigated at least partially by the ease with which our calculations can be understood and duplicated, so that readers may perform their own alternative analyses if they so desire. Moreover, selection of the U.S. inflation rate as the common standard for the world during the last decade does not appear to be unreasonable. According to the data available to us, the overall U.S. inflation during this period (41 percent) was exceeded by slightly more than half of the other nations; the average among all nations without runaway inflation was approximately 46 percent.

    Thus the U.S. experience is not atypical, and its use as an archetype for the rest of the world does not appear to introduce 11 dispro

    portionate degree of error compared with other sources.

    Denoting the U.S. deflator for year i as Di and that for the base year (1972 in this case) as Diu the reported constant dollar value Vr ; of arms trade for year i is related to the estimated current dollar value Vc by the expression Vr\ = Vel (Dh/D;).

    The specific deflators used for the U.S. economy are as follows:

    1963 107.17 1969 128.20 1964 108.85 1970 135.24 1965 110.86 1971 141.35 1966 == 113.94 1972 = 146.12 1967 117.59 1973 153.94 1968 = 122.30

    Conversion Rales

    For most countries, the official exchange rate prevailing in each year is used to convert the values of military expenditures and GNP from national currencies into U.S. current dollars. Official rates are used, despite their drawbacks, since suitable alternatives are not readily available in most cases.

    Most rates used were the "general purpose conversion factors" shown in the IMF's monthly, International Financial Stat1:.'1tics. For most countries the rate to 1971 was the official parity or central rate, and subsequent rates were period averages to the spot market rate.

    Where no IMF par value or central rate is in force, some other available rate was selected.

    It is recognized that official exchange rates are not an ideal means for converting national currencies into a common denominator. Official rates, even if they originally reflected relative foreign trade prices accurately, do not reflect relative internal prices. Once fixed, they are too often inflexible with respect to price changes over time, and occasional devaluations produce such large changes that trends are distorted.

    Ideally, to sum up and compare the GNP and military and other public expenditures of various countries, outlays in the respective

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  • currencies should be converted to a common currency by use of parities that reflect the internal purchasing power of each currency for all goods and services making up GNP. These parities should differ for each component sector of GNP, since the appropriate parity depends on the particular mix of goods and services involved. Purchasing power parities of this type are, however, difficult to estimate and are available only for a relatively few countries.

    In several cases where the official rates appeared to produce large distortions, or where there are no official rates, alternative rates have been used. These cases include the Soviet Union and most other Communist nations, as well as several countries in Latin America and Asia.

    For the Soviet Union and other Warsaw Pact countries, the basic sources of data on GNP (in dollars) use estimated purchasing power parities for conversions. In the Soviet estimates, the parities used for GNP and for military and other public expenditures are derived by different methods of calculation.

    Conversion rates for India, Indonesia, and Yugoslavia are roughly estimated by selecting the years for which available rates appear to be most valid and by then adjusting these rates for other years in accordance with relative U.S. and domestic currency price movements.

    Prices

    To correct the effects of inflation on military spending and GNP, current price data were converted to constant 1972 prices by use of GNP deflator indexes for each country from the socioeconomic data bank of the International Bank for Reconstruction and Development (World Bank). Some deflators were also obtained from the AID publication, Gross National Product-Growth Rates and Trend Data, May 1, 1974. The U.S. GNP deflator was obtained from the Economic Report of the President, Washington, January 1974 and Department of Commerce Survey of Current Business, July 1974.

    World Bank deflators for Bangladesh and Pakistan, provided separately for the entire period 1961-73, were recombined (using GNP as weights) for the period through 1971 prior to Bangladesh independence.

    For the Communist countries (except Cuba) and Yemen (San'a), price adjustment to 1972 dollars was done by means of the price deflators applicable to the U.S. GNP, since the conversion to dollars for these countries was made at rates approximating annual purchasing power parities.

    Growl" Rates

    It has become customary to compute rates of compound growth for GNPs by fitting straight lines to the logarithms of time-series by the method of least-squares. Let Xi be the value of the time series at t i • The procedure is to determine C and K that minimize

    This computationally convenient procedure involves a theoretical error which is of negligible consequence in the situations to which it is usually applied-where the resulting exponential curve provides an excellent "fit" for the data and the time series varies "slowly" so that Ktl is not too far from zero. Because of the convenience of the method, and because of its traditional use, it has been adopted here for the computation of compound growth rates for the world military expenditures. The conditions for its application with only negligible error are evidently met in this instance.

    When we turn to consideration of the arms transfers of individual nations, however, these conditions are not met and applying this standard procedure would produce very misleading results. Because the logarithms of very small numbers are large negative numbers, it is apparent that this standard method weights small values much more heavily than large values, so that the small values dominate the estimate. When zero values occur in the timeseries the method fails completely, and the computations are not even possible. The method also fails to have reasonable time

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  • averaging properties for rapidly varying data. If a procurement cycle dictates periodic large purchases with very small purchases in the intervening years, the small purchases will dominate the estimate and a compound growth rate, which may be present in the large purchases, will be neglected. For these reasons it is not appropriate to apply the standard technique to national arms transfers.

    The use of compound growth rates in itself implies a causal mechanism whereby the magnitude of the time-series influences its growth rate. Where such underlying causal factors are evident, as in populations, a more justifiable method for estimating compound growth rates is to choose C and K to minimize

    li Xi [Xi - exp (C + KUJ 2. The introduction of the factor Xi to weight the near-square error accounts for the fact that each individual of the population, for instance, must be counted at each observation rather than all of the individuals being lumped into a sample of varying size. This method requires a much more complicated numerical procedure than the standard one. A compromise technique can be produced by weighting the error terms of the standard technique by Xi. All of the arguments, however, presume a particular type of basic causality underlying compound growth rates. It is not apparent that such a causal mechanism can be assumed to be operating in national arms transfers.

    Absolute rates of growth may be of interest, despite the absence of an explanatory causal theory. These are produced by fitting a straight line to the time-series itself, rather than to its logarithm. This procedure has desirable timeaveraging properties, and it is computationally convenient. The fact that the resulting straight lines may indicate negative values outside the period for which the data are given may have the salutary effect of inhibiting unwarranted extrapolation into the far future. We have, therefore, adopted this technique for dealing with national arms transfers.

    The data for various nations differ greatly, however, in the degree to which they suggest a consistent pattern of growth; indeed, some samples might give the impression of having been generated by a random process. The co

    efficient of correlation is widely used to indicate the extent to which a data sample confirms a linear relationship between two variables. Thus, in addition to presenting the absolute (Le., linear) growth rate manifested by the arms trade data for each nation, we have also shown the associ.ated correlation coefficient. It should be noted that although widely dispersed data will result in a low correlation coefficient, the converse is not necessarily true. Technically, the coefficient measures the extent to which the hypothesized linear relationship (in our case, the calculated absolute growth rate) is superi,or to the mean as a representation of the data sample. A zero growth rate will have a zero coefficient of correlation by definition, and thus a shallow growth rate can have a low coefficient even if the data dispersion is small. Similarly, a· cyclical data relationship will be poorly represented by either the mean or any linear expression and will thus have a low coefficient even if the cyclical pattern is quite distinct. In summary, the presence of a low correlation coefficient should not be taken automatically as an indicator that the arms trade data in question do not follow any time-related pattern, but only as a determination that no linear representation was found to be signific&ntly better than the mean as a predictor of the sample data values.

    Estimate of Soviet Military Expenditures:

    Sample Calculation for J972

    (In Billion Current Dollard

    Initial Data (apply to 1972 "nlen otherwise indicated)

    (1) Official Soviet "Defense" budget-actual expenditures (bi!. Rubles) ........ 17.9 (2) Total Soviet expenditures on "Science," budgetary and other (bil. R) .......... 14.4 (3) Estimated number of persons in Soviet Armed Forces (mils.) ................ 3.51 (4) Estimated average Soviet military personnel costs in 1955 (R per man) .... 786 (5) Index of average annual compensation of workers and employees in the Soviet economy (1955 = 100) .......... 180.9 (6) Total U.S. military compensation outlays (bi!. $) ........................22,675

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  • (7) Average annual number of persons in U.S. Armed Forces (mils.) ............ a 2.45

    (8) Estimated conversion rate for non-personnel military outlays ($/R) ....... b 2.44

    Computations (app(y to 1972)

    (9) Total Soviet military expenditures (bil. R): (1) + 112 of (2) [17.9 + 7.2] ... 25.1 (10) Average Soviet military personnel costs (R per man): (4) x (5) [786 x 1.809] .............................. 1,422 (11) Total Soviet military personnel out- . lays (bil. R): (3) x (10) [3.51 x 1,422] .4.99 (12) Average U.S. military personnel costs ($ per man): (6) + (7) [22,675 + 2.45] ............................... 9,259 (13) Estimated conversion rate for militarY personnel outlays ($/R): (12) + (10) [9,259 + 1,422] .................. 6.5

    (14) Dollar equivalent of Soviet military personnel outlays (bil. $): (11) X (13) [4.99 x 6.5] .......................... 32.4

    (15) Total Soviet military non personnel outlays (bil. R): (9) - (11) [25.1 - 4.99] ...................................... 20.1 (16) Dollar equivalent of Soviet military nonpersonneloutlays (bil. $): (8) x (15) [2.44 x 20.1] ........................ 49.0

    (17) Dollar equivalent of total Soviet military expenditures (bil. $): (14) + (16) [32.4 + 49.0] ...........................81

    Sources (by line)

    (1) & (2) Narodnoye Khozyaystvo SSSR V 1972 g. (The National Economy of the USSR in 1972), Moscow, "Statistika," 1973. pp. 724, 726. (3) Table 2, above. (4) Abram Bergson, "USSR and U.S. Comparative National Income," in International Comparisons of Prices and Output, (D. J. Daly, ed.), New York, NBER/Columbia Univ. Press, 1972, Appendix B (unpublished). (5) Derived from official Soviet wage statistics: recent data from same source as for lines 1 and 2; earlier data from contributions by Murray Feshbach in the Joint Economic Committee compendiums: Economic Performance and the ]'vlilitary Burden in the Soviet Union, 1970, p. 82 and Soviet Economic Performance 19661967, 1968, p. 67.

    (6) U.S. National Income accounts as reported in Department of Commerce, Survey of Current Business, July 1974. (7) Economic Report of the President Transmitted to the Congress February 1974. Washington, GPO, 1974, p. 276. (8) Abram Bergson, op. cit., Appendix A (unpublished) .

    DEFINITIONS AND SOURCES

    Population

    Population estimates are for midyear and are supplied by the International Statistical Program Center, Bureau of the Census, U.S. Department of Commerce. Data on the People's Republic of China are midyear estimates prepared by the Foreign Demographic Analysis Division, Bureau of Economic Analysis, U.S. Department of Commerce.

    • This is an annual average figure. It is considered more appropriate for comparison with total annual compensation expenditures than the mid-year level shown in Table II.

    b This rate, initially calculated by others for producers' durables, is applied by Bergson to "munitions" purchases. It is here applied to all nonpersonnel outlays despite the fact that the rate used by Bergson for other goods purchased for defense purposes ($1.12 per ruble) is lower, since the rate for military R&D is probably higher-although not estimated by Bergson, other estimates range from $2.50 to $4.50.

    NOTE: There is a lack of information on the movement of Soviet military hardware prices since 1955. However, considerable evidence indicates that Soviet machinery and equipment prices have actually risen despite the fact that the official price index for that industry shows a price decline. (See Abraham S. Becker, Ruble Price LevelB and Dollar-Ruble Ratio8 of Soviet Machinery in the 19608. RAND R-1063DDRE. January 1973.) Becker (p. 21) roughly approximates the rise in average Soviet machinery prices between 1958 and 1970 at 25 percent. This matches the rise in the U.S. wholesale price index for the same period. Although Becker (p. 22) speculates that Soviet military machinery may be less subject to price inflation than civilian, he suspects that inflationary mechanisms operate in common on both. It is therefore considered that a constant conversion rate, implying parallel movement of U.S. and Soviet prices over time, is the best simple assumption to make on the basis of the scanty evidence.

    9

  • Armed Forces

    Armed forces refer to active-duty military personnel, including paramilitary forces where those forces resemble regular units in their organization, equipment, training, or mission. Reserve forces are not included unless specifically noted.

    Figures for the United States represent midyear totals and are from the U.S. Department of Defense, Office of the Assistant Secretary of Defense (Comptroller), Active Duty Military Personnel by Selected Periods, August 31, 1973. Estimates of the number of men under arms for other countries were also provided by U.S. Government sources.

    Gross National Product (GNP'

    The reported GNP represents the total output of goods and services produced by residents of a country and valued at market prices ultimately paid by the consumer.

    Sources of GNP for non-Communist countries were primarily the economic data banks of the World Bank and AID. For some of the earlier years data were obtained from AID statistical files and the previous edition of this publication, World Military Expenditures 1971.

    GNP data for 1973 in some countries were available in constant dollars only. Those figures were obtained by applying rates of increase (supplied by the World Bank) to 1972 GNP in constant dollars. For those countries, therefore, GNP data in current dollars were not always available.

    Data for Bangladesh and Pakistan are separated in the sources cited above. For this report, the data for both countries are combined in the Pakistani totals through 1971, when Bangladesh achieved independence. For 1972 and 1973, the data are shown separately.

    Soviet GNP data are estimates reported in a statement by CIA Director William E. Colby before the Subcommittee on Priorities and Economy in Government of the Joint Economic Committee (JEC) of Congress, Allocation of Resources in the Soviet Union and China, April 12, 1974, p. 49.

    The GNP data for other Warsaw Pact countries are those estimated by Thad P. Alton in the JEC compendium on the economies of Eastern Europe cited below.

    It sh.ould be noted that the estimates of Soviet GNP are expressed in a dollar equivalent that is derived from valuations of Soviet and U.S. GNP in both rubles and dollars, which results in an exchange rate different from the rates used in estimating Soviet military expenditures. The estimates of Soviet military expenditures, on the other hand, reflect dollar prices only and portray the cost of duplicating the Soviet military effort in the United States. Although use of these diverse types of dollar equivalents for the respective aggregates has become customary in Western literature for purposes of intercountry and non personnel comparisons, it should be emphasized that estimates of GNP and military expenditures derived in this manner are not comparable with each other. (See also Relative Burden, below.)

    The GNP estimates for the other Warsaw Pact countries, although estimated in an indirect manner, reflect the same type of hybrid dollar equivalent valuation as used for Soviet GNP. For these countries also, military expenditures are not converted by the same method as GNP is converted.

    GNP estimates for the People's Republic of China are derived and updated from data in another JEC compendium: Arthur G. Ashbrook, .Tr., "China: Economic Policy and Economic Results, 1949-71," in People's Republic of China: An Economic Assessment (Washington: GPO, 1972). Estimates for Albania, Cuba, Mongolia, North Korea, North Vietnam, and Yugoslavia are rough approximations.

    Cautionary note: Intercountry c.omparisons of military expenditures, GNP, and GNP per capita are suspect because of disparities in the purchasing power of the dollar equivalents shown.

    Military Expenditures

    An effort was made to apply a standard concept of military expenditures. They are defined to include current and capital expendi

    10

  • tures to meet the needs of the armed forces; expenditures of national defense agencies for military programs; expenditures for the military components of such mixed activities as atomic energy, space, and research and development; military assistance to foreign countries; military stockpiling; retirement pensions of career personnel; and expenditures on certain paramilitary forces as defined above. Excluded are expenditures for veterans benefits, civil defense, civilian space, strategic industrial stockpiling, and public debt service.

    The principal source of data for developing countries was AID, which compiles figures on military expenditures for most non-Communist countries, although not precisely according to the standard definition given above.

    Data on NATO countries were obtained from NATO publications (Press Release, Defense Expenditure8 of NATO Countrie8, 19491973, December 7, 1973, and NATO Fact8 and Figure8, October 1971). Most of the information for non-NATO European countries was from the Organization for Economic Cooperation and Development (OECD) publication, National Account8 of OECD Countrie8 19601971 (1973).

    Information from the series The MilitanJ Balance, published by the International Institute of Strategic Studies, and from The State8man'8 Yearbook (London: Macmillan, 1972-1973 edition) was used for some years for several non-Communist countries where AID information was not available. Also used were the United Nations Statistical Yearbook, the 1972 U.N. report, Economic and Social Consequences of the Arms Race and of Military Expenditures, and the predecessor to this document, World Military Expenditures 1971. (Data for the Republic of China, for example, came from such unofficial sources.)

    cl· ,Estimates of Soviet military spending in

    U.S. dollars were adapted from national data and various estimates made by Western analysts. It is generally agreed that announced Soviet defense budgets omit some expenditure categories in the standard definition, particularly military research and development and military space outlays. Other likely exclusions are military assistance, nuclear programs, and

    paramilitary internal security forces. Published Soviet data do not provide a basis for estimating such exclusions accurately in detail.

    ACDA made a rough allowance for all such omissions by adding to the announced Soviet defense budget one-half of reported ruble outlays in "science," which are believed to include military research and development and military space outlays. Civilian space activities are assumed to be excluded, and no further adjustment is made, as had been done in~:f~vious estimates. Conversion to dollars is developed separately for personnel and nonpersonnel outlays using estimated ruble/dollar ratios designed to show what Soviet defense purchases would cost at U.S. prices. A sample calculation is shown above in the section on computational procedures.

    Estimates for other Warsaw Pact countries are taken from Thad P. Alton et al., "Military Expenditures in Eastern Europe: Some Alternative Estimates," in the JEC of Congress compendium, Reorientation and Commercial Relations of the Economies of Eastern Europe, July 1974. As in the case of the Soviet Union, these estimates are intended to show what the national defense purchases would cost at U.S. prices, with estimated personnel and nonpersonnel outlays being converted at separate rates intended to approximate purchasing power parities.

    For the People's Republic of China, very rough estimates are derived from fragmentary information. No budgetary data have been issued by China since 1960.

    Arms Trade

    Arms trade represents the international transfer under grant, credit, or commercial sales terms of military equipment usually referred to as conventional, including weapons of war, parts thereof, ammunition, support equipment, and other commodities considered primarily military in nature. Among the items included are tactical guided missiles and rockets, military aircraft, naval vessels, armored and nonarmored military vehicles, military communications and electronic equipment, artillery, infantry weapons, small arms,

    11

  • ammunition and other ordnance, parachutes, and uniforms. Excluded by definition are nuclear, chemical, and biological weapons and strategic missile systems. Also excluded are foodstuffs, medical equipment, and other items potentially useful to the military but with alternative civilian uses. The trade statistics cover the actual movement of goods during the referenced year and do not include the value of programs, agreements, contracts, or orders which may result in a future transfer of goods. The data represent arms trade between governments and do not include data on arms to insurgents and terrorist groups.

    Relative Burden

    The relative burden of military spending is commonly measured by its proportion to total GNP. This measure is shown in Tables I and II and in Chart IV, juxtaposed with each country's per capita GNP, a factor which the reader may wish to take into account in gauging the significance of the ratio.

    As differences in the relative wealth of countries become wider, the ratio to GNP becomes less valid for intercountry comparisons. Poorer countries tend to devote a larger share of their income to consumption. At the same time, they have a more urgent need for rapid economic growth, which requires resources for investment. In these countries, therefore, any diversion of resources to military programs represents heavier burdens than it does in the wealthier countries.' At the same time, technical training of military personnel contributes to the civilian labor forces and to development of the poorer countries.

    As a measure of economic burden within a country, the ratio of military expenditures to

    GNP should preferably reflect the prices of the country concerned. Since for most countries military expenditures and GNP are converted from national currencies into dollars at the same rate, the proportion between the two is the same as that which would obtain in national currency terms.

    In the case of the Soviet Union, however, this ratio cannot be derived directly from the dollar estimates given in the tables because of differences in the methods of converting Soviet military expenditures and GNP into dollar equivalents. When both Soviet Union military expenditures and GNP are valued in rubles at adjusted factor cost, it is roughly estimated that the relative burden ratio would fall within the range of 6--10 percent.

    Estimates of GNP and military expenditures in dollars for other Warsaw Pact countries are derived in roughly analogous fashion to those for the Soviet Union. Consequently, the ratio of military expenditure to GNP implied in the data shown here would be different from the ratio if computed in domestic currencies. Ratios for these countries, obtained when both measures are expressed in domestic currencies and reflect prevailing prices, are considerably lower, as shown by Alton et al., "Military Expenditures in Eastern Europe: Some Alternative Estimates," cited previously. However, such ratios are considered by Alton to be misleading due to the relative underpricing of enlisted servicemen and other military purchases. In the absence of estimates of military spending in these countries at adjusted domestic currency prices reflecting factor costs, a meaningful ratio to GNP cannot be obtained. The actual ratio of military expenditures to GNP for all non-Soviet Warsaw Pact countries combined probably was in the vicinity of 5 percent during the period.

    12

  • STATISTICAL TABLES

    13

  • TABLE I. MILITARY EXPENDITURES, GNP, POPULATION, AND ARMED FORCES... BY GROUP AND REGION BY YEAR

    COUNTRY OR

    REGION -

    YEAR

    MILITARY EXPENOITURES IMILEX}

    GROSS NATIONAL PRODUCT IGNP'

    MILEX

    GNP,,,, PEOPLE (million,) M'~ 1_

    per _itA! per _Ita (_nl (constant

    doIlanl doll""'

    ARMED FORCES

    (tltoutandll

    ~I ARMED ARMED FORCES FORCES

    (constant per 1000 doIlard people

    c:.7.':! Ei Con_ doll,," kI (bUlla..) Ibillion,'

    c;~7.,:!!1 C::W (billiono) (bHliono)

    I t i WORLD TOTALS

    1963 141.87 197.67 1823.5 2605.7 7.78 3175.023 62.26 821 20878 9468 6.58 1964 144.83 197.81 1997.8 2783.7 7.25 3247.323 60.91 857 21558 9176 6.64 1965 147.42 197.08 2169.2 2944.1 6.80 3320.947 59.34 887 21086 9346 6.35

    1966 1~3.89 212.98 23bO.3 3111.1 6.94 3393.966 62.75 917 21933 9710 6.46 1967 If13.00 230.88 2515.3 3235.4 7.28 3462.427 66.68 934 23029 10026 6.65 1968 198.39 242.39 2720.7 3416.0 7.29 3533.422 68.60 967 23728 10216 6.72 1969 209.03 243.90 2984.0 3590.3 1.00 3605.148 67.65 996 24256 10055 6.73 1970 217.18 240.49 3295.9 3153.5 6.59 3678.255 65.38 1020 24199 9938 6.58

    1971 2;>8.95 240.30 3644.9 3915.8 6.28 3753.322 64.02 1043 24747 9710 6.59 1972 249.61 249.61 4103.6 4103.6 6.08 3830.674 65.16 1071 25103 9943 6.55 1913 269.64 241.71 4719.9 4347.5 5.64 3910.590 61.81 1112 25549 9461 6.53

    C,RI')I0/TH RATE 9 (pCT ANN) C 2.6 5.1 -2.4 2.1 .5 2.9 2.2 .4 • I

    I DEVELOPED 1963 1:>1.89 179.31 1503.9 2188.7 8.50 919.327 195.04 2381 10152 17662 11.04 1964 128.70 171.07 1641.0 2333.0 1.84 929.981 190.40 2509 10159 17430 10.92 185.82 2619 9528 18344 10.131'165 1;>9.54 174.78 1719.9 2463.5 7.28 940.584" f; 9920 19114 10.441966 144.84 189.61 1941.5 2605.1 7.46 950.062 199.58 2142'"r 2832 10462 19724 10.91

    1968 176.20 215.81 2264.7 2872.0 1.18 1961 11',2.69 206.35 2084.5 2115.1 7.80 958.942 215.19

    961.851 222.98 2967 10762 20053 11.12 1969 182.92 213.80 2414.5 3003.7 1.39 971.040 218.83 3074 10756 19871 11.01 1970 187.09 207.51 2120.4 3119.] 6.88 986.013 210.46 3164 10369 20013 10.52

    3004.4 3241.8 6.47 995.719 204.85 3256 10168 20060 10.21

    1972 211.67 1971 194.35 203.91

    211.67 3395.8 3395.8 6.23 1005.414 210.53 3378 9914 21350 9.86

    1913 227.31 208.83 4021.0 3617 .9 5.64 1016.105 205.52 3561 9871 21143 9.72

    GROWTH RATE (OCT ANNl 2.0 4.9 -3.2 1.0 1.0 3.9 .1 1.9 -.9

    DEVF.LOPING 1963 13.98 18.36 319.6 417.0 4.37 2255.69b 8.14 185 10126 1712 4.76 1964 16.13 20.74 356.8 450.7 4.52 2317.342 8.95 194 11399 1819 4.92 1965 11.87 22.29 389.4 480.6 4.59 231'10.363 9.31 202 11558 1929 4.86

    1966 19.05 23.37 418.8 506.1 4.55 2443.904 9.56 201 12013 1945 4.92

    1967 ;>0.31 ::'4.53 430.fl 519.7 4.11 2503.485 9.80 208 12567 1952 5.02

    1968 ;>2.19 26.59 455.9 543.9 4.87 25~5.565 10.36 212 12966 2050 5.05 1969 ;>6.11 30.10 509.5 S86.:' 5.12 2628.108 11.45 223 13500 2229 5.14 1970 10.09 12.

  • TABLE I. MILITARY EXPENDITURES. GNP. POPULATION. AND ARMED FORCE~

    BY GROUP AND REGION BY YEAR--Continued

    COUNTRY OR

    REGION --..---....--.....

    YEAR ,

    MILITARY EXPENDITURES IMILEX'

    GROSS NATIONAL PRODUCT IGNP'

    MILEX GNP"', PEOPLE ImilllOl1l/

    MILEX GNP per capilli Iper capilli1..".II8nt (_Ill doll..., dol....)

    ARMED FORCES

    hllou..ndi)

    MILEX-ARMED ARMED FORCES FORCES

    (..,......t Iper 1000doll...) people

    C""""t eonll811l dol.... doll...

    IbOIIom) (bill.....' -

    Currant ConII8nt doll... doll...

    (bUli....) (billio.,) -

    NATO TOTAL

    GRflWTH (PCT

    ioOIRC;AW

    GROWTH (oCT

    OPEl;

    GROWTH {pCT-

    1963 1964 1965

    1966 1967 1968 1969 1970

    1971 1972 1973 RATE

    ANN)

    PACT 1963 1964 1965

    1966 1967 1968 1969 1970

    1971 1972 1973 RATF.

    ANNI

    1963 1964 1965

    1966 1967 1968 1969 1970

    1971 1972 1973 RATE

    liNN I

    72.64 103.22 1005.8 1461.6 7.22 495.584 208.27 2949 72.63 101.09 1089.8 1545.8 6.66 501.496 201.57 3082 73.91 100.47 1180.3 1631.6 6.26 507.416 191.98 3215

    '16.62 113.89 1284.9 1121.3 6.74 512.624 222.17 3358 100.09 127.56 1360.4 1770.2 7.36 517.410 246.54 3421 104.67 129.36 1462.9 18i>O.6 1.16 521.808 247.90 3566 106.21 125.54 1~93.9 1939.6 6.66 S26.955 2.)8.24· 3681 104.37 116.911 1722." 1971.5 . b.06 531.830 219.80 3718

    105.08 111.61 1!197.3 2045.1 5.54 536.957 207.85 3809 113.50 113.50 2149.9 2149.9 5.28 541.412 209.64 3971 121.38 11 0.42 2526.3 2275." 4.80 545.859 202.29 41E>9

    1.1 4.3 -3.3 1.0 .1 3.3

  • TABLE I. MILITARY EXPENDITURES, GNP, POPULATION, AND ARMED FORCES 0.

    BY GROUP AND REGION BY YEAR -Continued

    CDUNTRY OR

    REGION YEAR

    MILITARY EXPENDITURES IMILEXI

    GROSS NATIONAL PRODUCT IGNPI

    MILEX

    GNP 1""1

    PEOPLE (millionsl

    MILEX per capita Cconltant doIlanl

    GNP pe' capita (conS1ant dollo..1

    ARMED FORCES

    (tt!oulandsl

    MILEX

    ARMED FORCES

    {constant dolla,s)

    ARMED FORCES pe,l000 peopte

    CU....nt C_t doIla.. doUar.

    (billion.) (billions'

    CU.....nt Conttant doIlan doIlan

    (billions' (bUlion.'

    AfRrCA 1963 .59 .79 31.9 43.0 1.83 225.908 3.48 190 428 1835 1.89 1964 .76 .98 35.7 46.2 2.13 241.481 4.06 191 475 2064 1.97 1965 .85 1.01 39.6 50.5 2.15 255.766 4.20 191 487 2205 1.90

    1966 .99 1.19 43.4 53.2 ~.27 2"7.334 4.46 199 542 2197 2.03 1961 1.11 1.38 44.6 54.9 2.49 275.656 5.00 199 562 2453 2.04 1968 1.25 1.56 48.2 58.!! 2.60 283.743 5.51 201 633 2470 2.23 1909 1.60 1.96 54.7 64.1 2.93 291.618 6.72 220 685 2859 2.35 1910 1.66 1.95 60.6 69.4 2.74 2;.A. 324.125 N.A. 244 935 N.A.. 2.88

    GRown-t RATE fi (oCT ANNI C 1).5 6.4 6.4 3.4 3.0 2.9 9.0 -2.3 5.3

    EAST ASIA 1963 7.54 10.15 168.1 253.~ 4.49 1091.142 9.25 231 5127 1112 5.22 1964 8.18 11.75 191.3 283.2 4.59 1120.152 10.48 253 6141 1913 5.48 1965 9.50 12.15 206.2 303.8 4.61 1145.485 11.13 265 6184 2062 5.40

    1966 10.62 13.68 235.9 329.5 4.50 1112.699 11.66 281 6306 2169 5.38 1967 11.07 13.75 256.9 350.3 4.31 1199.205 11.47 292 6725 2045 5.61 1968 12.02 14.58 286.1 379.0 4.19 12;>6.499 11.88 309 6995 2084 5.70 1969 \4.74 11.05 331.8 420.0 4.44 1255.094 13.59 335 7267 2346 5.79 1910 17.05 18.69 389.5 465.4 4.38 12fl4.108 14.55 362 1392 2528 5.76

    1971 19.75 20.83 441.2 497.!! 4.4B 1314.433 15.85 379 1731 2695 5.88 1972 21.23 21.23 524.6 524.6 4.05 1346.516 15.77 390 8115 2616 6.03 1913 ;>2.21 19.53 652.3 565.3 3.41 13BO.638 14.15 409 8392 2321 6.08

    GRr)IIHH RATE (OCT ANNI 7.5 8.3 -1.8 2.3 5.1 5.9 3.8 3.6 1.4

    EUROPE TOTAL 1963 74.84 106.43 817.7 1211'1.9 9.15 691.169 153.99 1761 8733 12187 12.64 1964 76.40 106.31 899.0 1298.9 8.50 698.341 152.23 1860 8738 12166 12.51 1965 76.61 104.59 973.5 1365.5 7.87 706.148 148.11 1934 8131 12853 11.52

    1966 aO.03 106.07 1055.1 1432.0 7.59 712.591 148.85 2010 8137 13035 11.42 1967 1'16.06 110.65 1133.2 1493.0 7.59 71B.785 153.94 2017 8392 13185 11.68 1968 94.48 117.B4 1214.6 1575.9 7.78 124.118 162.59 2114 8502 13861 1l.73 1969 100.34 119.30 1330.1 1653.1 7.54 731.232 163.15 2261 8596 13878 1l.76 1970 108.09 121.83 1496.0 1749.!! 7.23 131.317 165.22 2313 8620 14133 11.69

    1971 118.26 125.09 1668.1 1820.6 7.09 743.883 168.15 2447 fl854 14128 11.90 1972 132.63 132.63 1886.4 1886.4 7.03 749.970 176.85 2515 8977 14775 11.97 1973 146.56 133.09 2268.3 2005.3 6.46 756.152 176.01 2652 8988 14808 11.89

    GROWTH RATE (oCT ANI>;) 2.7 5.0 -2.6 .9 1.8 4.1 .6 2.1 -.3

  • TABLE I. MILITARY EXPENDITURES, GNP, POPULATION, AND ARMED FORCES

    BY GROUP AND REGION BY YEAR -Continued

    COUNTRY OR

    REGION YEAR

    MILITARY EXPENDITURES (MILEX)

    GROIS NATIONAL PRODUCT (GNP)

    MILEX

    GNP ('Jt.)

    --- PEOPLE (milliontl

    MILEX petcopita (conl18m doIIan)

    '-

    GNP per coplta (constant doIlan)

    I I~II ARMED ARMED ARMED .) FORCES IFORCES FORCES (.....otanl pet 1000

    (tftousandsl dollanl people

    '-

    Cu'""'t Cuntulnt doIlon dollan

    (billions) (bRilon,) - -

    Cu'Nnt CCNll18nt doIlan doIlan (billion.' (billions)

    - -NATO EUROPEAN

    1963 1964 1965

    1966 1967 1968 1969 1970

    1971 1972 1973

    GROWTfi RATE (PCT ANN)

    OTfiF:R EUROPEAN 1963 1964 1965

    1966 1967 19M1 1969 1970

    1971 1972 1973

    GROWTfi RATE (oCT ANN)

    LATr'l AME~ICA 1963 1964 1965

    1966 1\167 1968 1969 1970

    1971 1972 1973

    G'1nWTH RIITE' (pCT AN'll

    18.76 29.50 373.0 591. 9 5.03 21H.484 102.60 2059 19.74

  • - TABLE I. MILITARY EXPENDITURES, GNP, POPULATION, AND ARMED FORCES CD BY GROUP AND REGION BY YEAR -Continued

    COUNTRY OR

    REGION YEAR

    MILITARY EXPENDITURES IMILEX)

    GROSS NATIONAL PRODUCT (GNPI

    MILEX

    GNP 1%1

    PEOPLE (miHlonoi

    MILEX per eopita (_lit doI....,

    GNP per eopita lconstaott dollon)

    ! MILEX

    ARMED ARMED FORCES FORCES lCOIIltallt

    (thousandsl doIla..1

    ARMED FORCES per 1000

    people

    Cu,nont Constant dol.... doll...

    (billlon.1 (biUional

    Current C_ott doIIa.. doll...

    (billional IbiUional

    NEA~ EAST 1963 1.26 1.67 19.2 26.0 6.56 B2.318 20.31 316 661 2530 8.03 1964 1.50 1.91 21.7 28.0 6.92 84.633 22.55 331 696 2742 8.22 1965 1.69 2.10 24.3 30.6 6.97 87.066 24.08 352 799 2624 9.18

    1966 1.77 2.12 26.4 32.2 6.71 89.412 23.73 361 809 2623 9.05 1967 2.30 2.71 28.0 33.6 8.22 91.922 29.53 366 840 3231 9.14 1968 2.71 3.26 29.9 36.3 9.07 95.694 34.08 379 837 3897 8.751969 3.36 3.95 33.1 39.2 10.14 98.405 40.12 399 909 4343 9.24 1970 4.15 4.63 36.4 41.6 11.41 101.271 45.75 413 978 4737 9.66

    , 1971 4.80 5.08 42.1 45.!:> 11.40 104.075 48.83 437 1127 4509 10.83 ~ 1972 6.04 6.03 50.6 50.6 11.94 107.658 56.03 470 1249 4829 11.60 ,~ i

    1973 10.10 N.A. 43.9 46.i! N.A. 110.770 t-,j.A. 417 1283 N -A. 11.58GRO\olTH RAT"

    (eCT ANN)i

    i 14.7 6.7 10.7 3.0 11.3 3.5 6.7 7.5 3.6

    I NORTH A'4ERICA 1963 53.88 73.72 632.8 869.7 8.51 208.100 354.26 4179 2820 26142 13.55 1964 52.89 71.24 678.6 911.7 7.79 211.200 337.32 4345 21'107 25380 13.291965 53.37 10.52 735.9 916.1 7.25 214.000 32,9.55 4561 2715 25414 12.91 1966 1'.5.21 83.78 806.9 1040.2 8.08 216.100 386.63 4800 3204 26149 14.19 1961 71.21 96.11 855.1 1061.1 9.04 219.100 438.93 4813 3481 21621 15.89 1968 B2.52 98.15 931.1 111!\,4 8.86 221.500 445.83 5049 3653 21033 16.49 1969 '13.21 94.99 1003.8 1150.7 8.29 223.800 424.46 5142 3560 26684 15.911970 79.83 86.31 U58.3 1148 • .3 1.54 226.200 381.82 5076 3161 21323 13.91

    1971 76.91 19.64 1146.3 1188.2 6.11 228.600 348.40 5198 2800 28444 12.25 1912 79.90 19.90 1261.1 1261.1 6.34 230.600 346.41 5469 2413 33110 10.46 1973 flO.B5 16.55 1411.9 1336.0 5.73 232.500 329.25 5749 2338 32142 10.06

    GROWTH RATE (eCT ANN) 1.0 4.0 -2.9 1.1 -.. 2.8 -1.4 2.4 -2.5

    OCEANIA 1963 .69 1.03 22.1 32.8 3.09 13.532 15.82 2424 61 16819 4.51 1964 .91 1.31 24.6 34.9 3.12 13.785 95.17 2534 66 19818 4.79 1965 1.05 1.48 26.9 31.4 3.92 14.028 105.41 2668 66 22416 4.70

    1966 1.22 1.66 28.0 31'1.0 4.34 14.216 116.35 2661 12 23069 5.04 1961 1.23 1.67 29.5 40.3 4.11 14.523 114.80 2718 85 19614 5.85 1968 1.21 1.60 31.2 41.!:> 3.89 14.153 108.46 2813 93 11205 6.30 1969 1.39 1.71 34.1 44.4 4.01 14.913 111.94 2963 96 18394 6.41 1970 1.35 1.64 38.4 46.1 3.51 15.313 106.93 3052 100 16314 6.53

    1911 1.43 1.61 43.6 49.0 3.21 15.653 102.56 3132 100 16054 6.39 1912 1.61 1.61 50.4 50.4 3.19 15.904 100.98 3168 100 16059 6.29 1973 2.05 1.40 56.5 52.0 3.51 1/>.164 86.33 3219 84 16613 5.20

    GROWTH RATE

    (eCT ANN) 2.4 4.1 -.9 1.8 .6 2.9 4.9 -2.4 3.1

  • TABLE I. MILITARY EXPENDITURES, GNP, POPULATION, AND ARMED FORCES

    BY GROUP AND REGION BY YEAR --Continued

    COUNTRY OR

    REGION YEAR

    MILITARY EXPENDITURES (MllEX)

    GROSS NATIONAL PRODUCT (GNP!

    MllEX

    GNP (%)

    PEOPLE (million.)

    MILEX

    "'" capita{conotant doIlan)

    I i GNP

    I "". capita {conotanl dollan)

    ARMED FORCES

    (t!1ousand.)

    MILEX- ARMED FORCES

    h:onllllnt doll..,)

    ARMED FORCES per 1000 _pie

    Current Constant dol.... dolla..

    (billion.) (billion.l

    Currant Ccftmnt dollaR

    {billion.l doIlan

    (billion,l

    SOUTH ASIA 1963 1.54 1.94 44.9 '54.tl 3.43 6~7.467 3.08 87 1494 1295 2.38 1964 1.58 1.97 48.4 SQ.9 3.27 641.958 3.08 92 1631 1211 2.54 1965 2.45 2.26 62.1 '57.7 3.94 6'56.759 3.44 88 1620 1393 2.47

    1966 1.90 I.Q8 55.6 58.S 3.42 671.7.9 7';>.0 3.09 716.606 3.00 98 2068 1061 2.111

    1971 2.04 2.71 70.3 7?6 3.75 7'53.562 3.59 96 2094 1293 2.78 1972 2.75 2.15 73.1 71.1 3.77 170.119 3.57 95 2125 1295 2.16 1973 2.85 2.36 82.0 16.1 3.48 1fl8.1:>94 2.99 96 2318 1018 2.94

    GROWTH RATf' (peT ANN) 2.9 1.4 .3 2.3 .6 101 4.0 -1.0 1.7

    .J!I Converted from domestic currencies into dollars at rates pre~ (iii) are not calculated for current-dollar series because of vailing in or estimated for each year. See Statistical Notes, Conver the distorting effects of inflation and changes in exchange sion Rates. rates.

    are somewhat distorted for some.!Y Values in "COilstant dollars" are obtained by deflating country due to the inclusion of newdata in current domestic prices to 1972 prices and converting to

    come independent throughout the period.dollars at 1972 conversion rates.

    (See Statistical Notes for further discussion of growth rates.)sJ The growth rates in this table: .41 Military expenditures and GNP as calculated are not fully com

    (i) are compound rates obtained by a least-squares fit of due to the use of different types of dollar conversion rates

    a straight trend line tv the logarithms of the values; the two variables. On a comparable basis, the estimated range

    (ii) apply to 1963-72 only-1973 is excluded due to the is a more valid me(L~ure. Sec Statistical Notes, Relative Bur

    nonavailability of data for a number of countries (denoted

    by N. A. in Table II);

    -..0

  • TABLE II. MILITARY EXPENDITURES, GNP, POPULATION, AND ARMED FORCES ~ BY COUNTRY BY YEAR

    MILITARY EXPENDITURES GROSS NATIONAL PRODUCT

    COUNTRY

    (MILEX~ (GNP~

    Current Constant Curreftt Constant OR dolll" dolll" dollar. doll."

    REGION YEAR (millions) (mtHion.' (m~lIon.} Imillion" --_ .... _ .. - .... _ ......_ ... _

    MILEX w~ MILEX GNP ARMED ARMED per capita per capita ARMED FORCES FORCES GNP PEOPLE (conlt.mt (con.tanl (conlt.m. per 1000 {%} ImiUiona)

    FORCES doll.,,} fthou..nds) dollars) peopledollo")

    Af-GyAN [.600 .90 '>6 97 145 6.U

    t '1:' 1967 15.58 ) 5.02 "lIB.;? 8'35.4 1.10 15.900 .94 56 95 158 5.97

    1968 17.63 16.50 914.1 912.1 1.,,1 16.300 1.01 56 89 185 5.46

    1969 17.80 11.03 992.0 949.0 1.79 16.700 1.02 57 89 I'll 5.33

    1970 16.73 )7.34 941.4 97S.7 1.78 17.100 1.01 57 91 191 5.32

    i I

    1971 15.60 17 .07 913.8 999.':1 1.11 17.500 .98 51 91 lS8 5.20 197? 17.05 17.05 1027.8 1027. tl 1.66 17.900 .95 57 91 187 5.08f 1',03 ?1.99 N.~. N.A. 1056.6 N.A. 18.300 N.A. 58 91 N.A. 4.97

    (,RnWTH RATEI IpCT A' 3.4/l 12.;:>00 10.26 295 75 1669 6.15 1 123.27 3686.4 457A.7 2.69 13.000 9.4B 352 75 1644 5.77 1969 99.25 122.34 4132.1 5091.3 2.40 13.400 9.13 380 80 1529 5.97 loHO 'lfl.S5 11 7.93 4679.0 5582.2 2.11 13.800 d • .,5 405 AO 1474 5.BO

    1''171 q9.45 112.09 48"1.3 5479.U 2.05 14.300 7.84 383 80 1401 5.59 1

  • TABLE II. MILITARY EXPENDITURES. GNP. POPULATION. AND ARMED FORCES

    BY COUNTRY BY YEAR --Continued

    COUNTRY OR

    REGION YEAR I

    MILITARY EXPENDITURES (MILEX)

    Current

    I Constant

    doHars dollan (millions~ (millions)

    GROSS NATIONAL PRODUCT (GNP)

    Current

    I Constant

    dollars dollan bnilliom. (millions)

    MILEX

    GNP (%)

    PEOPLE (milliont'

    MILEX per capita (constant dollars)

    GNP per capita (oon....nt dollarsl

    ARMED FORCES

    Ithouoandsl

    MILEX

    ARMED FORCES

    (conl1ant dolla,,)

    ARMED FORCES po,'ooo

    people

    A"G;:-NTINA 1963 1964 1'164.200

    19.85 lA.59 18.55 19.24 20.11

    912 921 947

    1016 1044

    160 160 160 160 140

    2829 2685 2124 2861 3415

    1.02 6.93 6.81 6.72 5.79

    (,Kf),,jTrl

    1911 1912 1971 QAH:

    471.94 41(,.90

    N.A.

    431.00 416.90

    N.A.

    21l591.1 21253.9 36965.2

    26110.4 27253.':1 2!l562.1

    1.65 1.53 ~.A.

    ?4.500 24.800 25.100

    11.59 16.81 N.A.

    1066 1099 1138

    140 140 160

    3019 2978 N.A.

    5.71 5.65 6.31

    PCT ANN! 1.0 4.8 -3.6 1.5 -.5 3.3 -.1 2.3 -7.2

    .o,U'>TRALIA 1963 1964 1965

    1,06.94 812.9'1 944.24

    921.58 1I~2. 01, 1339.28

    11693.2 1910B.tl 21678.4

    26f165.2 2B655.':I 3014R.0

    3.43 4.13 4.36

    11.000 11.200 11.4()0

    83.78 105.54 117.48

    2442 2559 2697

    ~ 49 53 53

    1!l808 22303 25269

    4.45 4.13 4.65

    1966 1961 1961'\ 19!>,) 1970

    10.7 14276.U

    1.25 1.50 1.20

    7. I 79 1.226 7.270

    22.11 2H.60 23.49

    1811 1909 1964

    75 55 55

    2114 37">1 3106

    10.45 1.61 7.">7

    1\166 Ig67 196d 1'169 1971

    1 14.24 140.05 \.,1.10 1151.1 16011." 1696'l.7 11l342.!

    1.30 1.27 1.22 1.24 1.10

    7.309 7.345 7.375 7.40J 7.424

    26.60 26.55 26.61 28.33 27.07

    20">1 2090 2114 2292 2411

    55 60 55 55 55

    3535 3250 3569 3813 3654

    7.52 8.11 7.46 7.43 7.41

    t.)

    1971 1912 197)

    ',~f)",TH flA re: (PCT A"~n

    172.40 212.21 270.06

    ?00.59 212.21 cOH.19

    1.1l

    IM35.1 20602.4 26336.S

    193'>1,.':> 20602.4 2lfl1il.b

    S.2

    1.04 1.03 .95

    -3.3

    7.45t! 7.467 7.476

    .4

    26.90 28.42 27.1l':>

    1.4

    2595 2159 2921

    4.8

    60 60 60

    -.5

    3343 3531 3470

    2.3

    8.05 8.04 8.0)

    -.9

    See footnotes at end of table,

  • to.) TABLE II. MILITARY EXPENDITURES, GNP, POPULATION, AND ARMED FORCES to.)

    BY COUNTRY BY YEAR ··Continued

    MILITARY EXPENDITURES (MILEX)

    COUNTRY "'""~. M""OR

    REGION

    nAlir'~IN

    1'l6l

    1,,64

    1965

    196'" 1'161 196>1 \'164 1\170

    1\171

    1972

    1973

    (;~'lVITH RATF (oCT A'I'J)

    tJi'Nr,LADE"

  • TABLE II. MILITARY EXPENDITURES, GNP. POPULATION, AND ARMED FORCES

    BY COUNTRY BY YEAR--{!ontinued

    ! MILITARY EXPENDITURES

    (MIlEX) GROSS NATIONAL PRODUCT

    (GNP) MilEX

    GNP (%)

    PEOPLE (million.)

    MilEX pe,capita (conttantdoll.",

    GNP per capita {con.tant dolla,,)

    ARMED FORCES

    ithou...,ds,

    MilEX

    ARMED FORCES

    (conrtant dollan)

    ARMED FORCES per 1000 people

    COUNTRY OR

    REGION YEAR

    Current

    I Conltant

    dollan dolla" (million.) (millions.

    Current

    I Constant

    dollars doUa", (millions) (millions)

    ,lOll liLA 1

  • ~ TABLE II. MILITARY EXPENDITURES, GNP, POPULATION, AND ARMED FORCES.. BY COUNTRY BY YEAR·-Continued

    COUNTRY OR

    REGION YEAR

    MILITARY EXPENDITURES (MILEX)J GROSS NATIONAL PRODUCT (GNP)j MILEX

    GNP (';4)

    Current Constant doll... dolla..

    _~~i~ons) ... ~millions~

    Current Constant dolla" donars

    ~m!llicJn.' (million,)

    ----.------ MILEX

    PE 1m

    OPLE ilfionl)

    MILEX per capita ~conltant dollars)

    GNP percaplta {coo'tant

    dolla"1

    ARMED FORCES

    (thousands)

    ARMED FORCES

    (constant doll...1

    ARMED FORCES per 1000

    people

    RIJLr,ARIA 1963 612.00 862.00 5500.0 7500.0 8. o 7 I:! 106.67 928 183 4709 22.65 1'0/64 liMO.OO 913.00 6100.0 !l200.0 11.144 112.09 1005 178 5128 21.86 1965 6,9.00 90R.OO 6700.0 1:!800.0 8.201 110.74 1077 178 5102 21.70-]V

    t (J')19li6 7l?00 '113.00 7400.0 9500.U w 8.258 110.57 1149 176 51118 21.31

    1967 719.00 918.00 R200.0 10200.0 1\.310 110.51 1226 176 5218 21.18 196!l 7AR.00 918.00 9000.0 I0800.U «> 8.370 109.63 1285 175 5243 20.91 1'0/69 810.00 946.00 10000.0 11400.0 0 8.436 112.14 1351 175 5406 20.74 1970 913.00 1001'1.00 11400.0 12300.0 t- 8.490 li8.73 1451 175 5760 20.61

    1971 10/.0.00 1075.00 12500.0 12900.0 8.536 125.95 1514 189 5681:! 22.14

    • 1972 119I>.~ 6.64 24.200 4.38 66 123 862 5.08 196'> lr",7.31 I Ill. .7 -2.3 c.2 -4.9 .5 5.9 -8.2 3.6

    '!URI/NDT e/ 4J1961 2.00 1.48 e) 2l6.0 d/ 174. .85 3.092 .48 57 2 740 .65 1964 2.38 1.16 - 2':>0.0- IFlS.J .95 3.158 .56 59 2 881 .63 1965 2.08 2.1>3 IS1.9 192.3 1.37 3. .81 58 2 1529 .57 1970 1.12 3.49 203.9 2?~.O 1.53 3.584 .97 64 3 1163 .84

    1'0171 3.15 3.37 215.1 230.l:l 1.46 3.660 .92 63 3 1125 .tl2 1972 3.60 1.60 234.4 214.4 1.54 3.757 .96 62 3 1200 .100 1973 N.A. N.A. N.A. 24;>.3 N.~. 3.844 N.A. 63 3 N.A. .18

    6K'1WTH RATE (oCT ANN) 9.0 1.2 S.l 2.2 ".7 1.0 5.3 3.6 3.0

    http:lr",7.31http:121\2.00http:11
  • TABLE II. MILITARY EXPENDITURES, GNP, POPULATION, AND ARMED FORCES

    BY COUNTRY BY YEAR --Continued

    COUNTRY OR

    REGION YEAR

    CAM5.68 25.79 ?".94 61.30

    17'53.7 1815.1 2032.6 18"6.9 13 72.3

    779.7 AI4.') A4.'> 7'1?6

    3.02 3.15 3.03 3.12 7.83

    6.400 6.500 ".700 6.900 7.100

    3.67 3.95 3.85 3.90 8.63

    122 125 127 125 110

    83 113 84 1:15 AS

    2B3 309 307 317 721

    12.97 12.77 12.54 12.32 11.97

    1971 1972 1973

    Ci",1WTH RATF. loCT ANN!

    i~5.05

    110.18 177.99

    ·~8.04

    110.18 ~J. A,.

    17.5

    695.4 681.3

    r"j. A.

    719.9 681.3 N.A.

    • 1

    12.23 16.17 N.A.

    17.4

    7.300 7.500 7.800

    2.!l

    12.06 14.69 t~. A.

    14.4

    99 91

    N.A.

    -2.5

    205 200 213

    11.7

    429 551

    t~. A.

    6.3

    28.08 26.67 27 .Jl

    B.7

    CA"1vROON 1963 1964 IY65

    13.78 13.37 14.58

    Jj1'l.32Jj 17.74 IR.94

    523.9 5d7.'l 647.f'.

    fJ714.6Jj 7AO.O 841.1

    2.63 2.27 2.25

    5.017 5.115 5.219

    1.85 3.47 3.63

    146 IS3 161

    8 6 8

    2415 29S7 2367

    1.59 1.17 1.53

    1966 1967 I%R 10.91 21.73 21.% 22.40

    f:>83.R 762.H A68.5 912.1 989.2

    'lOS.J 'lIS.'> 'l91.2

    10S,).0 1139.4

    2.25 2.28 2.19 2.08 1.97

    5.329 5.443 ').562 5.683 5.807

    3.82 3.84 3.91 3.86 3.86

    170 168 178 186 196

    8 8 7 Il B

    2548 2614 3104 2745 2800

    1.50 1.47 1.26 1.41 1.38

    1971 1972 1973

    (,Ri)WTH RATE O>eT ANN)

    ;>0.30 ?3.40

    N.A.

    22.62 23.46

    N.A.

    2.!l

    1049.4 1246.3

    N.A.

    1169.5 1246.3 129f'..7

    S.Y

    1.93

    I."" N.A.

    -3.0

    5.932 6.058 6.187

    2.1

    3.81 3.87 N.A.

    .6

    197 206 210

    3.7

    8 8 8

    1.1

    2828 2932 N.A.

    1.6

    1.35 1.32 1.29

    -1.1

    CM'~DA 1963 1964 1'165

    15-l3.72 11;77.15 IS'8.82

    2419.56 2493.53 2;>11.90

    '+2?71.0 46;>31.3 51034.7

    645A0.5 6H73').1 73351'>.'l H7e

    1638.9H 1821.30 17R8.23 17"3.3'1 1'174.52

    2256.17 2416.64 221.300

    112.25 118.46 11 0.36 102.68 10:..67

    3906 3978 4128 4281 4346

    110 105 105 100

    '15

    20511 23016 21!l61 21665 23692

    5.47 5.15 5.05 4.74 4,46

    1971 1972 1973

    (,R"WTH RATE: (pCT ANN)

    2110.611 22'-·7.19 ?)QI.OO

    2255."4 22'S7.19 2253.59

    -.7

    91447.4 103104.4 117040.8

    '17727.'1 103104.4 110121.7

    S • .::

    2.31 2.19 2.04

    -5.7

    ?1.600 21.800 22.100

    1.6

    104.43 103.54 101.97

    -2.3

    4524 4730 4992

    3.b

    AS 90 AS

    -3.8

    26537 25080 26513

    3.2

    3.94 4.13 3.85

    -5.3 to.)

    Se(~ footnotes at end of table.«II

  • .., TABLE II. MILITARY EXPENDITURES, GNP, POPULATION, AND ARMED FORCES 0

    BY COUNTRY BY YEAR--Continued

    COUNTRY OR

    REGION YEAR

    MILITARY EXPENDITURES IMILEX!

    Cllrrent Constant dollalS doIlatl

    Imillion,) Imillions)

    GROSS NATIONAL PRODUCT IGNPI

    Current Constant dolla.. dolla"

    (millionsl Imillions)

    MILEX

    GNP 1%1

    PEOPLE (million.)

    MILEX poer capita tconstant dolla,,)

    GNP per capita (constant

    doIla..!

    ARMED FORCES

    (thousands)

    MILEX

    ARMED FORCES

    (coostant dollarsl

    ARMED FORCES pe,l000

    people

    CtN-AAL AFRICAN 1963 1964 1965

    AEoU~LIC

    1.00 2.35 2.48

    1.22 2.67 2.76

    1lt4.3 158.1'. 173.4

    175.4 180.5 1.::.

    .69 1. Its 1.43

    1.363 1.395 1.427

    .89 1.91 1.93

    129 129 135

    2 2

    1333 1318

    1.43 1.40

    1966 1967 1968 1969 1':170

    2.65 3.85 4.90 5.51 4.99

    2.89 4.12 5.19 6.05 5.R2

    179.1 190.1'. 209.4 217.7 213.2

    1

    N.A.

    2.d

    5.03 ':>.13 N.A.

    26.8

    3.196 3.888 3.982

    2.3

    4.01i1 4.02 N.A.

  • N....,

    TABLE II. MILITARY EXPENDITURES, GNP, POPULATION, AND ARMED FORCES

    BY COUNTRY BY YEAR--Continued

    MILITARY EXPENDITURES (MILEX)

    ARMED

    PEOPLE CurrentCOUNTRY

    OR doll."

    REGION (million.)IYEAR

    r.hI"A. PEOPLES REP"flLlC 1963 !OOhO.OO 1964 6000. 00 196'> 6Sr;0.00

    19"6 7"00.00 1'167 7'>00.00 1,,6" 1l0OO.00 1969 105110.00 1,,70 120UO.00

    1 Y71 14000.00 197~ 14'>00.00 lY73 15000.00

    bR"WTH RATE

    (oCT ANN;

    Chl'IA. RFPUHLlC Of 1961 2;>2.50 1964 210.00 hl6'> 3"'1.7S

    1,,61) 3M4.09 1'11)7 ,ell', .53 1968 4~3.B9 1'11)'1 2>2 93.44

    .1).61 ':\8.7'i 96.01 q~.34

    10?q4

    202.3? ) 0'1.05

    87.'15

    1.5

    Current doll...

    (minions)

    68000.0 77000.0 !:l70QO.0

    95000.0 96000.0 99000.0

    114000.0 136000.0

    154000.0 161000.0 181000.0

    2177.5 25"'>.0 291B.1 6111.4

    56tJ4.4 5804.1 '>9,)". ? 1,?>51;.,> (,'127.0

    74/3. :, 8202.2

    100,,".7

    "JOOO.O 103000.0 115000.U

    122000.0 119000.(1 11HOOO.O 130000.(; 147000.0

    I"YOOO.O 161000.0 171000.0

    5.Y

    2RO.,:' "R70.tl

    6544.1 7291.H . !OO

    16./jY 16.52 15.ill

    5.5

    25.45 21:l.!O5 31.32

    36.03 35.94 37.56 22.69 35.1:l2

    42.64 46.24

    N.A.

    4.7

    4.64 4.72 S.OO

    5.01 4.4f:> 4.0» 4.17 4.70

    fl. 9':> 4.66 J.65

    .)

    129 141 154

    160 153 148 159 176

    186 183 I'll

    3.5

    249 270 292

    310 332 355 374 405

    442 4B3 53)

    7.6

    2Rr:! 296 297

    30) 306 315 322 332

    340 351 364

    2.3

    JJ! 2500 2750 27!OO

    2800 3000 3100 3100 3100

    3198 1308 3583

    3.0

    .].1 544 600 524

    544 547 ,28 5':>5 522

    '>40 ')50 503

    -.7

    50 55 50

    ,,0 !OO 50 50 45

    50 50 50

    -.':>

    2727 29?9 3115

    3435 3107 3083 31:l61 4182

    4525 4383 3964

    4.9

    557 58') 759

    861 880 97S 576 995

    1109 1270 N.A.

    7.9

    1623 1555 1869

    1932 1775 1920 1767 2288

    4046 2181 1759

    4.1

    FORCES per 1000

    people

    3.49 3.76 3.68

    3.67 3.84 3.88 3.79 3.71

    3.73 ).77 3.99

    .7

    45.71 41:l.78 41.26

    41.85 40.82 38.54 39.36 36.00

    31>.49 36.42 32.66

    -3.2

    2.86 3.04 2.67

    2.59 2.51 2.44 2.36 2.05

    2.21 2.14 2.07

    -3.7

    http:14200.00http:14'>00.00http:14500.00http:lJOOO.OOhttp:12000.QOhttp:15000.00http:14'>00.00http:14000.00http:120UO.00http:105110.00http:1l0OO.00http:7'>00.00http:6Sr;0.00

  • to.:! TABLE II. MILITARY EXPENDITURES, GNP, POPULATION, AND ARMED FORCES CD

    BY COUNTRY BY YEAR --Continued - ~

    COUNTRY OR

    REGION

    CON';O

    YEAR

    1963 lY64 1965

    1966 1967 196>1 1969 1970

    1971 1'172 1973

    GR(lWTH RATF: (pCT ANN)

    MILITARY EXPENDITURES IMllEX)

    Current

    I Constant

    doll." doIlan (millions) (million.)

    4.00 5. l'i !!.I 5.00 6.32 5.00 6.20

    7.00 8.44 6.00 7.16 "'.00 6.85 4.96 'I 5.67 6.00.! 7.11

    il 6.826. 0411 '>.92 5.92 N.A. N.A.

    .7

    GROSS NATIONAL PRODUCT (GNP)

    Current

    I Constant

    doll." doIlon (million.) (million,)

    1'l6.5 hl 2'>1 • .!hl

    204.6 2'>".5 214.7 26n.t:

    225.6 27;>.v 233.1 278." 253.1> 21l9.4 262.7 300.0 264.7 311.6

    ?A8.9 326.1 140.1 340.1 N.A. 3/'9.0

    1.7

    MlLEX

    GNP (%)

    2.04 2.44 2.13

    3.10 2.57 2.37 1.89 2.21

    2.09 1.74 N.A.

    -2.5

    PEOPLE (millions)

    .810

    .826

    .842

    .8'>9

    .877

    .896

    .916

    .937

    .959

    .981 1.004

    2.2

    MllEX per capilli (con._t dollarol

    6.36 7.65 7.36

    9.82 8.16 7.64 6.19 7.59

    7.11 6.03 ",.A.

    -1.4

    GNP per ""Pita (con""nt doll.,..

    313 313 316

    317 318 323 328 335

    340 341 368

    1.4

    ARMED FORCES

    Ithou_d.1

    2 2 4

    5 5 3 3 6

    6 9 7

    12.9

    MllEX

    ARMED FORCES

    (conllont dollanl

    2576 3158 1549

    1688 1431 2282 lA90 1I85

    1131 651

    N.A.

    -11.4

    ARMED FORCES per 1000

    people

    ~---

    2.47 2.42 4.75

    5.82 5.70 3.35 3.28 6.40

    6.26 9.17 6.97

    10.5

    COSTA RICA 1963 1964 196"

    1961> 1967 196>1 1'169 1970

    1971 l'I72 1973

    bR()WTH FlATE (DCT ANN)

    N.A. N.A.

    '>15.2 533.3 583.6

    626.3 "'77.1 745.0 A37.1 913.1

    1033.3 1141. '> 1346.3

    660.7 657 • .! 717.1

    71>4.9 8??4 8'16.6 981.7

    10~11>."

    1093.6 1141.5 120~.0

    1>."

    N.A.

    1.391 1.439 1.4t17

    1.536 1.586 1.636 1.686 1.736

    1.786 1.83'> 1.883

    3.1

    N.A.

    475 451 482

    498 519 548 582 597

    612 622 638

    3.6

    2 2 2

    2 2 2 2 2

    2 2 2

    .0

    N.A.

    1.44 1.39 1.34

    1.30 1.26 1.22 1.19 1.15

    1.12 1.09 1.06

    -3.0

    CUBA 1963 1964 1965

    213.00 2;>1.00 213.00

    306.00 ;>89.00 2'12.00

    3815.0 4290.0 4815.0

    548,>,0 5618.0 (1)8.0

    5.58 5.15 4.42

    7.502 7.687 7.874

    40.1:12 37.65 34.48

    731 731 780

    80 110 110

    3828 2631 2468

    10.66 14.31 13.97

    1966 1967 196A 1969 1970

    2)3.00 2fl.00 319.00

    "l.A.

    1.7

    '>570.0 6263.7

    N.A.

    630;>.U b264.0

    "l.A.

    1.6

    5.21 5.09 N.A.

    • 1

    8.648 A.749 8.851

    1.6

    31.94 36.42

    N.A.

    .0

    729 716

    N.A.

    -.0

    140 140 140

    4.9

    2344 2276 ""'.A. -3.5

    16.19 16.00 15.82

    3.2

  • TABLE II. MILITARY EXPENDITURES, GNP, POPULATION, AND ARMED FORCES

    BY COUNTRY BY YEAR --Continued

    cYPPUS

    -

    1963 1964 1965

    GROSS NATIONAL PRODUCT IGNP}

    Coostant ---~-

    CUrTent

    I Constant

    dollan dollars doUars (mUnons) (millions' {milliond

    2.24 2.45 35R.3 391.'+ 7.56 A.30 331.9 364.3 9.24 10.21 408.~ 4

    N.A.

    2flO.) 291.6 306."

    4.1

    1.':15 1. '31 N.JI.

    4.6

    2.760 2.1'127 2.Wel6

    2.5

    1.88 1.IH N.A.

    6.2

    102 103 106

    1.6

    2 3 3

    3.0

    2598 1759 N.A.

    6.5

    .72 1.06 1.04

    .5

    MILITARY EXPENDITURES IMILEXI

    COUNTRY Current

    I OR dollars

    REGION YEAR (millions! -

  • w TABLE II. MILITARY EXPENDITURES. GNP. POPULATION, AND ARMED FORCESo BY COUNTRY BY YEAR·.continued

    COUNTRY OR

    REGION YEAR

    MILITARY EXPENDITURES IMILEXI

    current_I Constant

    doll... dolla" (millions) (millions)

    -

    GROSS NATIONAL PRODUCT (GNP)

    Current

    I Constant

    dollars dotlars (millions) (minions)

    MILEX

    GNP 1%1

    PEOPLE Imillions)

    MILEX per capita (constant doll...1

    GNP per capita (connant dollar')

    ARMED FORCES

    (thousand.)

    MILEX

    ARMED FORCES

    (constant dollars!

    ARMED FORCES per 1000

    people

    DlNMAKK hl63 1964 1965

    219.07 2"5.43 2>.1 18104.U 19270.3

    2.7(J c.67 2.>11 2.51 2.10

    4.797 4.1l39 4.B67 4.B91 4.92'1

    90.27 YI.89 99.61 "S.H7 9.:'.44

    3342 3447 3539 3824 3910

    50 50 45 45 45

    8660 8893

    10774 10420 10125

    10.42 10.33 9.25 9.20 9.1.1

    1971 1972 1973

    "RnINTrl RATF (DCT A"I"I)

    411.58 4'4.00 1964 17 .00 196'> 11.70

    1H.19 3'1.85 17.)1',

    992.1 10elS.4 94:'.1

    Il?O.l 11(''''.0 1047.'1

    3.43 3.41 3.5'

    3.4:'7 3.">56 3.65Y

    11.10 11.21 10.21

    124 329 286

    20 19 17

    1919 2097 219fl

    5.79 5.34 4.65

    196':> 1':167 196R 1969 1970

    12.40 11.20 10.60 ;>9.Aa 10.20

    16.70 34.75 13.07 11.75 .11.61

    1041.1 1094.9 113S.(' 1240.2 14:;2. ?

    11 Fl." 1?19.4 12?7 .I 1)74.5 1520.2

    3.11 2.9::; 2.69 2.31 2.08

    3.764 3.1:173 3.91:\7 4. 1()~ 4.3.95 "2.51 ?4.34 n.58 V.94

    ~4. 7fl 22.55 23.33 30.75 1? 06

    1241.1 1361l.A 1494.1 16S7.6 16>l6.4

    12H4.3 111\1. I 1432." 1517.!:! lMl.5

    I.Y3 1.65 1.6) 2.03 1.95

    S.321 ;'.SOI S.6t1Y S.AH3 6.0!:!S

    4.66 4,[0 4.10 5.23 5.27

    241 249 252 258 270

    IS 15 16 17 16

    1652 1503 1458 1809 2004

    2.8.2 2.73 2.81 2.il9 2.63

    1971 1972 1973

    GRIiWTrl RATE (oCT AN"I)

    10.75 43.08 C; 1. 20

    1).fl6 4).08 40.34

    7.5

    16119.6 2034.2 2S,:)I.S

    1'l38.3 2034.2 22'>A.U

    7.1

    1.84 2.12 2.01

    I .0

    6.294 6.'>12 6.737

    3.4

    5.31l h.6e S.9Y

    4.0

    292 312 33'>

    3.5

    20 20 20

    3.0

    1693 2154 2017

    4.4

    3.18 3.07 2.97

    -.4

  • TABLE II. MILITARY EXPENDITURES, GNP, POPULATION, AND ARMED FORCES

    BY COUNTRY BY YEAR --Continued

    COUNTRY OR

    REGION

    EGypT

    YEAR

    1963 1964 1965

    MILITARY EXPENDITURES (MILEX!

    Current

    I Conotant

    doIla.. dolla.. (millions! Imillion.)

    3,7.01 4>13.7:" 41)6.44 511.17 4 tH.03 586.73

    GROSS NATIONAL PRODUCT (GNP!

    Current

    I Con$lllnt

    doll." dolla.. (million.) ~millions)

    4144.6 5615.0 4746.9 5917 .1 5340.2 6381.0

    MILEX

    GNP (%)

    8.61 8.56 9.20

    PEOPLE Imillion.!

    28.000 28.700 29.400

    MILEX per capita (con.tant dollars)

    17.28 17.83 19.96

    GNP per capita (constant

    dolla..)

    201 208 217

    ARMED FORCES

    !thou..nd,'

    135 160 205

    MILEX

    ARMED FORCES

    (conotant doll...1

    3583 3199 2862

    ARMED FORCES per 1000

    people

    4.82 5.57 6.97

    1966 1967 19M 1969 1970

    402.48 :\Q3.39 515.18 616.38 aR7.76

    457.55 422.00 573.60 6

  • w TABLE II. MILITARY EXPENDITURES, GNP, POPULATION, AND ARMED FORCES II:)

    BY COUNTRY BY YEAR·.contillued

    MILITARY EXPENDITURES MILEX (MILEX)

    GROSS NATIONAL PRODUCT (GNP) ----I

    l MILEX GNP ARMED ARMEDMlLEXCurrent Constant ARMEDCOUNTRY per capita per capita FORCES FORCESCurrent ConstantJ

    dollars doUarsdoUars dollars GNP

    I OR PEOPLE (constant (const.ant {~nstant per 1000

    REGION I YEAR FORCES

    i%)(millions' (miilions) (millionl! (millions) (million.) doll.,,) doll.rs) doll.,,) peoplehhousand.)

    U>i J OP 14 1\163 20.13 25.53 10'55.>:1 1339.J 1.91 21.300 l.cO 63 55 464 2.58 19">4 ;>3.:;6 28.10 1\1:18.2 1417.2 1.98 ;>1.800 1.29 65 60 468 2.75 1I 2.31 22.900 1.74 75 40 993 1.75 1967 13.40 3il.99 143':>.3 167'5.6 2.33 ?3.400 1.67 7i!. 45 866 1.92 196A ,'l.92 45.56 15('2.9 1737.9 2.62 24.000 1.90 72 45 1012 1.88 1';1',9 ,,1.52 46.14 1626.'1 1807.7 2.55 24.600 1.8H 73 45 1025 1.8]

    f 1910 41.32 42.95 1799.7 lf170.'>1 C,]O .>5.300 1.70 74 45 955 1.78 t t 1971 44.96 46.'11 1804. B 1945. 2.41 16.000 1.1:;0 75 45 1042 1.73

    1972 '02.11 '32.1 I 2030.7 2030.7 2.57 26.600 1. '>16 76 '>0 1042 1.88 1973 3.'1 1.8 -1.7 8.3 -4.1

    " IN!,ANO 196:1 1:>4.37 11)0.70 6397.2 1326'5.3 1.94 4.523 3S.53 1827 35 4591 7.74 1964 113.12 1">9.tl5 7328.7 1:>1'100.1 1.82 4.549 3:..14 1'l 35 40 3996 8.79 H6C; 112.36 1')3.13 79K4.2 924'1. 1.66 4.564 33.59 2026 40 3833 d.76

    1966 118.81 lC;3.03 K5rll.l '>I4M.3 1.62 4.5ill 33.41 201)5 40 3826 8.73 1967 h6.08 171.6'j 81'112.0 '>1691.2 1.77 4.606 37.27 2104 40 4291 A.68 196'~ 18 2898 40 ,}291 8.62

    H,nIllT>i RATF (vCT MIN) 3.1 4.'1 -.7 .2 3.4 4.7 .6 ].0 .4

    F"'A'JCE 1963 4h?9.0S 67117.14 83468.4 laO?I.1 5.'55 47.800 141.,,7 2S5:1 73:> 9207 15.38 1\11'>4 491'1.96 691'>.71 92')24. :I 13001".2.:> :..12 48.300 143. ifl 2693 hYO 10023 14.29 196') ')1~1.69 7014.40 999c8.1> 1361il3.B 5.17 4R.MOO 144.1S 2791 585 1202S 11.99

    1966 ')440.52 721~.42 101:l3'1S.2 143817.4 5.02 49.200 146.72 2923 '>FlO 1?446 11.79 1967 'jilt5.8) 7')93.16 116H17.4 IS09'59.1 S.03 49.600 153.09 3044 595 12762 12.00 1961' 60"'7.611 75'15.34 121?1J3.1 1:'t:l44S.7 4.79 4').900 152.21 3175 "> -{O 13325 11.42 196\1 A114. c6 n72.HO 141S73.1 170714.0 4.12 ,)0.400 146.29 3387 570 12935 11.31 l'i7l1 60,14.92 7315.'">1 14tLbO.'i IB07?R.c 4.05 ':>O.MOO 144.01 355 3698 565 12998 11. 0 1 1972 72q,:>.6S 12'lS.6C; ]996/h.8 19967R.B 3.65 51.700 141.12 3862 560 13028 10.H3 H71 93,9.94 7176.57 .K -.3 4.8 -2.1 2.8 -3.0

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  • --

    TABLE II. MILITARY EXPENqITURES, GNP, POPULATION, AND ARMED FORCES

    BY COUNTRY BY YEAR--Continued

    MILITARY EXPENDITURES GROSS NATIONAL PRODUCT

    iI

    I (MILEX) (GNP)

    Current ConstantCOUNTRY Current ConstantI dollars dollar~doltan dollarsOR ,mintons) (millions)REGION (minions) (millions)YEAR I 1

    ('ARf'1"J 1'163 ;>.00 2.66 154.0 204.'" 1';64 2.00 2.56 157.2 200. 3.00 3.\16 166.'1 2IG.'1

    i'il',h 1.00 3.92 I HI. I 231>.':>

    1'167 3.00 1.H3 199.3 2'14.6

    1'168 3.00 3.46 760.1 300.1

    1'169 4.3,! 'i.ol 2'10.2 l-1l.2

    1971) 4.62 5.63 2>19.9 351.':