What I find interesting in the growth of defence spending experienced by Australia over the last 15 years with the growth of the economy. I think to some extend this may be getting lost in all the talk of defence spending as a percentage of GDP and we lose sight of how our actual spending compares with other nations. Comparing it to nations such as the UK and Italy is quite interesting
Australia
- 2016: $33.190 bn USD
- 2011: $25.785 bn USD
- 2006 $18.910 bn USD
- 2001: $13.617 bn USD
UK
- 2016: $35.763 bn USD
- 2011: $37.617 bn USD
- 2006: $31.241 bn USD
- 2001: $24.544 bn USD
Italy
- 2016: $25.259 bn USD
- 2011: $27.429 bn USD
- 2006: $26.631 bn USD
- 2001: $24.592 bn USD
Source:
Military expenditure (current LCU) | Data
We are experiencing a substantial increase in expenditure and capability.
Obviously there is a substantial lead time in developing naval capability. We are certainly experiencing a substantial growth the the capability of the RAN. If the Australian military spending is sustainable, there are a range of possibilities that could be considered by future governments.
Comparing defence spending with other nations gives an general indication of the kind of options that we can potentially afford. The real interesting questions for me is what should the future RAN look like with evolving and dynamic environments, considering we have the regional naval growth in China and elsewhere combined with possible scaling back of the US presence in the region.
While we know what our short to medium plans are, how might these change in the medium - long term? We are going to get the defence force that we can afford. but cost may not be quite the limiting factor that it has been historically, particularly if we maintain our defence spending at 2% GDP.