The big deal: aid or arms?

Two of the hot buttons in UK politics right now (alongside the National Health Service) are: international aid and defence. The Conservative-led coalition (presumably pushed by its Liberal Democrat partners) has taken the controversial decision to increase international aid at the same time as cutting most other budgets including defence.

It is obvious why these decisions should generate heat at a time of economic pain at home and an  over-stretched military
in Afghanistan. But, across the world, these two areas of government spending should be linked.

The largest donors of international aid (measured as a percentage of their GDP) are as follows:

  1. Sweden
  2. Norway
  3. Denmark
  4. Netherlands
  5. Luxembourg
  6. Belgium
  7. UK
  8. Ireland
  9. Finland
  10. Spain
These 10 largest aid donors are either close to or above the UN’s target of 0.7% of GDP (UK is 0.48%, just above the average of all countries) . Only two countries (the UK and Finland) are also among the top 10 spenders on defence. Conversely, the largest spenders on defence (as a % of GDP) are: the US, Greece, UK and France, Portugal and Australia. Of this big six, only the UK alone comes among the top 13 countries contributing the most foreign aid. Japan, the third largest economy, incidentally, comes in the bottom three on both aid and defence.

What does this all mean? Well, these stats cover the democracies of the West plus Australia, New Zealand and Japan, and so defence spending is usually expected to involve military deployment in the world’s hot spots. It is thus possible to assert that these spending scores reflect the countries’ varying views on how best to help make the world a better place: by helping to develop and/or defend countries.

Political flavours might tip budgets one way or the other in different countries. Why else would the biggest defence spender (the US) come bottom on international aid? But countries with low scores on defence spending and on international aid (like Germany, Canada, New Zealand, and Japan) should consider whether they are pulling their weight in the wider world. Each of these countries appears in the lower reaches of both league tables.

Conversely, governments like the UK (No. 3 in defence and 6 in international aid) might like to explain to voters why they are so keen to punch far above their weight.  UK politicians might find that a pretty uncomfortable discussion.  But, then, there’s a lot of history.

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