Yearbook on Defence Spending in South-Eastern Europe
- 2001 -
Concluding Remarks
The overview of the 1999-2001 defense budgets of the Southeast European countries
shows differences between the nations' budgetary provisions as well as common
features and trends. Regarding similarities, one should take into a consideration
that all of the countries covered have a few major identical goals of international
policy - accession to NATO (except Turkey) and the EU.
In respect of differences, the following highlights are noteworthy:
- Turkey is the biggest defense spender in the region, with its nearly 5%
of GDP allocated to defense, and outlays of $ 11,3 billion in 2001. Besides
this, it implements the most ambitious military modernization program, according
to which over $ 150 billion will be allocated for investments in the Armed
Forces in the next 20 years. As a result, no other country from the region
even gets close to the Turkish scale of defense provision.
- The nations differ in terms of defense spending per capita and form two
general groups. Half of the countries analysed spend less than $ 50 per capita
on defense (Bulgaria, Romania, Macedonia) and the other half spend more than
$ 100 per capita (Turkey, Slovenia, Croatia).
- Croatia differs significantly from the others in a few recent trends of
its defense budgeting (1999-2001): an increasing portion of personnel costs;
and a straight decreasing portion of operations and maintenance costs. However,
according to the estimates of the 2002-2005 period, these trends will be reversed.
- Bulgaria stands out for the increasing portion of R&D funding in the
1999-2001 period and its plans to keep their straight positive trend till
2005.
The common features relate mainly are reducing development of the defense
budget structure.
- Most of the countries are reducing the portion of the budget allocated to
personnel costs.
- Most of the countries are raising the portion devoted to operations and
maintenance costs.
- Most of the countries are raising or holding constant the portion allocated
to defense investments (procurement and construction).
- Most of the countries do very little research and developments.
These are very generalised conclusions, and of course, because of the lack
of data for Albania, Bosna-Hercegovina and the Federal Republic of Yugoslavia,
they give an uncomplete picture of the overall position in South-Eastern Europe.
It is hoped that later editions of the Yearbook will be more informative.