Absent from the greater part of the intergovernmental discourse on international finance is the reference to the expenditure on arms and militarization. World military expenditures topped $1118 billion in 2005, up 3.5% from 2004. This equals about 2.5% of the world’s gross domestic product or about $173 per person annually. Furthermore, over the last ten years, military budgets worldwide have increased 34%. The United States of America accounts for almost half of this sum. In 2005, they spent $441.6 billion, 51% of the government’s total budget. Conversely, the USA spent only $27.5 billion on official development assistance. This striking imbalance exists globally as well. Aid in 2005 from OECD member countries totaled only $106.5 billion, or 0.33% of committee members’ gross national products, many times less than their collective military expenditures. The military-industrial plays a detrimental role as well. Two of the largest recipients of western aid, Egypt and Israel, are among the largest importers of US military equipment. WFM works to draw attention to this issue and to highlight that there can be no sincere effort on sustainable development and elimination of poverty without addressing the direct link and detrimental effects of the worldwide arms trade and investment in militarization.

In this area:

Introduction to Global Economic Governance | Reform of International Financial Organizations | Global Levies or Taxes | Addressing Expenditures on Militarization | Corporate Accountability