41

5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

  • Upload
    lamnhan

  • View
    213

  • Download
    1

Embed Size (px)

Citation preview

Page 1: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

Uni 5t antral d Oi a am nt A

GERARD SMITH V ir-eoto

PHILIP J FARLEY Del)lpoundty Di1ectOl

ROBERT H B V ADE ASsi8taAlt Di1ecto1 (Bureau of E conomi c Atfajrs)

cknowl d m nls

A D As annual report on World Military Expenditures vas prepared wlder the clirection of Ruth L SiYard Chief Ecollomi Division Dnn igtl Gallik and Christophel Grove Rrd had primary responsibility fol statistical compilations and caknlations assisted by Mary Keil and Tail Minor Peter T Hansen also a isted 1I1

preparation of the report

The cooperation of varian internntional lll1d US Government agencies which provide data is gratefully acknoled cred

The report as prepared December 1D70

Bureau of Economic Affairs US Arms Control and Disarmament Agency

Washington DC 20451

INTRODUCTION

World Military Expenditures 1970 is the fifth report by the United StatEs Arms Control and Disarmament Agency on the size and impact of arms expenditures of the nations of the world

This report shows that world military expenditures inflated by further increases in prices reached a record peak of $204000000000 in 1970 The increase in military spending over the previous year was the smallest in recent years and relatively less than the apparent price rise-a hopeful sign that the sharp upward trend of the 1960s has been blunted

Vast sums continue to flow to the acquisition of arms and the supshyport of mihtary forces It is unfortunately still evident that the poorer countries are increasing arms spending at a faster rate than the wealthier ones There is an eloquent case in the stark figures for reshydoubling of efforts to end conflicts remove the causes of war and reach equitable agreements for the control and reduction of arms and milItary forces

GERARD C SMITH

Director

WORLD MILITARY EXPENDITURES 1970

and Related Data

for 120 Countries

CONTENTS Page

Highlights of the Data 1

Charts

I Military expenditures 1964-70 1 II Military expenditures and GNP estimated III

constant prices indexes 1964-70 2 III World military and other public expenditures

1964 and 1968 3 IV Shares of world total in 1968 4 V Per capita expenditures for military education

and health by region 1968 5 VI Military expenditures and armed forces by region

1964 and 1968 6 VII Relative burden of military expenditures 1968 8

VIII Ten major military powers 1968 31

Definitions of Terms 7

Statistical Tables 8

Tables

I Summary trends in military expenditures and GNP 1964-70 9

II Military expenditures and relatltd unta 1968 10 III Per capita military expenditures and related data

1968 14 IV IIlitary expenditures and GNP 1964-68 18 V Armed forces 1964-68 26

VI Military and economic ranking of countries 1968 30

Statistical Notes 32

ii

I II lUll b t I n

HIGHLIGHTS OF THE DATA

This fifth annual survey of m-ilitary expenditures and related data by the Us Arms Control and Disarmament Agency (ACDA) covers 1969 and 1970 insofar as prelimnary information permit rough estimates on a regional or global basis The estimates jor the latest years as well as the detailed national data for 1964-68 are subject to qualifications which could affect both trend and crrmparative levels They should be regarded as reasonable approxishymations rather than as precise statistical indicators

Summary Chart I

World military expenditures inflated by further increases in prices reached a new peak in 1970 MILITARYLast years vorld total reached an estimated 204

EXPENDITURES$204000000000 the equivalent in dollar value of Bittion dollars current prices a years income produced by the 1800000000 people in the poorer half of the worlds population

In actual expenditures the increase in world military spcnding over the previous year wos the smallest in recent years (chart I) In terms of

World Total constant dollars ie had prices been unchanged there would have been a slight declillo--a hopeful Developed

countriessign that the sharp uptrend of the 1960s has been blunted (chart II) Expressed as a ratio to GNP military spending was slightly lower for the thinl ~--- 103

year in a 10- In 1970 these outlays took 64 percent of the world product

NATO _In the 6 years since the first world survey 71_ military outlays in current dollars htye risen _ _0 almost 50 percent HOveyer about three-fifths of ---shyWarsaw Pact this increase reflects price inflation If prices h11lt1 been unchanged military expenditures of 1970 would have exceeded those of 1964 by roughly 20 bullOther bullbull - 27bullbull

30

------shyDeveloping Figures in current dollars reflect the prices and exshy countries

change rates of the respective years to which they apply 1964196519661967196B196if1970middot Figures in constant dollars have been adjusted for changes

Calendar years in both prices and exchange rates to show real values middotEstlmated

in terms of a single year (See discussion of prices page 36)

177

CharI II MILITARY EXPENDITURES AND GNP

ESTIMATED IN CONSTANT PRICES

Index 1964 == 100 140r-1r~----r--~~

World Wide

bull 130 GNP total

--- shyMilitary 7 expendilures shy

120 bullbullbullbullbullbullbullbull ~

p~ t

110 Ji t _Y--GNP per capita

I Plloyen---------I-L----l

1964 65 r6i 67 68 69 70 140~_r--r_-r--T--r~

Developed Countries

shy130

GNP total I- 1P

120 ~- dJmiddot-1---bullbullbullbull

bull J

GNP per shy-t ----capita110 l--Military1 p expendItures

~ 10

1964 65 66 67 68 69 70 150r-1r---~-r~r-

d p

Developing Countries shy

140 1 Military l f shyexpenditures bullbullbullbullbull

130 ~I shy

hNP~total120

~

bull 1 I

110 ~GNP per capita

100~~~~~~--~~

1964 65 66 67 68 69 70 Estimated

percent Thus the 20 percent rise measures the real or physical increase in military effort since 1964 Some of the increase is reflected in the increased numbers of personnel in the armed forces which are up more than 10 percent some in investment in higher quality increasingly sophisticated military equipment The rise in expenditures includes strategic forces as well as the conventioIl11 forces which represent four-fifths of world military spending

The current survey produces no evidence that a widesprcad shift from military to civilian uses of resources has begun Nor docs the slower rate of increase in total military expenditures in the Pl1st 2 years reflect a worldwide tendency to restrict 8uch outlays In the vast majority of countries for which recent information is available there was a further rise in military budgets in current prices in 1970 While NATO spending went down largely as 11 result of a decrease in US defense expenditures the total for developed countries as a whole did not decline In developing countries as a group military expenditures again moved higher Thu8 developing countries continued as they had in the years preceding to inerease their share of world military outlays devoting to military programs funds that could have been allocated to economic development

More public funds continued to flow into milishytary programs than into public education or public health pIognuns for the yorIds pOJlulation of 36 billioll (chart III) In developing countries for example the increase in military spending in the period since 1964 represented the equivalent of 3 years expenditures on public education for the billion school-age children in those countries

The text below amplifies some of these summary points and provides additional information on global and regional trends and comparisons (See table I page 9) National datn are not compared here but may be found for 1968 nnd earlier years ill tables II through VI page8 10 to 30

The Trend of Military Expenditures

Military expenditures prodde a useful baromshyeter of the momentum of the arms race Howshyever th( yorId totnl like lll aHmgps may

The criteria llsed in classifying countries as developshying arc described in the Statistical ~otes page 32

2

Chart III

WORLO MILITARY AND OTHER PUBUC EXPENDITURES

1964 amp 1968 --------------------------------200

Billion current dollars

1964 -r50

1J68

~--~------~--oo

~----50

Military Education Health Foreign Economic

Aid

conceal geographic and other changes which are of major importance in gauging trends

Chart I shows trends in military expenditures in current prices for the ~odd (vertical hite bllrs) and for each of the major eategories of countries for whicb projections through 1970 are attempted It should be noted that the categories of countries shown on the charts are overlapping lVIost vVarshysaw Pact and NATO countries and some other countries are represented in the developed group Developed and developing countries together make up the world total as do KATO middotWnrSlW Pllct and the other category

The chart shows the NATO line in current prices declining after a rnpid rise from 1965 to 1968 Although the Warsaw Pact line continues on a slIlrp llI)nlld slant developed conntrirs as n whole hardly changed sp(1nding levels bctween 1969 Ilnd 1970

Chart II shows trends in military expenditures after allowance is made for tho effect of price ris(ls

(Correction for price changes on a worldwide basis is necessarily rough) Expressed in constant dollars military (lxpeuditnr(ls of developed COUllshy

tries are estimated to have leveled off between 1967 and 1969 and to have declined in 1970 led by a downturn in the NATO totnl This is the first such drop since ACDAs odd survey began in 1964 and a significant one in overall effect since expenditures of the developed conn tries acshycount for approximately 90 percent of world military spending

The trends in developing conntries as a group are rather different In current and even in constant prices the recent rapid increase of military spending in these countries has continll(ld Within this classification of countries however major differences in military expenditure trends are evident The rate of expnnsion of expendishytures is by far the shnrpest in the Nem East Smaller increases have occurred in the Fill East LnJin America and Africa In South Asia spending rates have ehanged relatively little sinee 1966

As chart II indieates in the developing countries as a whole the rate of in(Teast in military spending continues to outstrip the adnll1ce in GXP at tlw expense of populations hose an~llg() illeoIlw p(lr eapita is still barely $200 a year

Comparisons With Economic Growth

Since 1968 when th(l advance in wodd military expenditures began to moderate tho growth rute of world GNP hus been faster than the onrall rise in military spending (see chart II) As it

cons(lquence the shale of world GNP going to military programs has declined from 11 high of 71 p(lrcent in 1967 to 64 percent in 1970

This chango suggests that oHrall the military burden has beOul1 to lessen somewhat in relation

b

to the yorld economy On the oth~r hand dlllllg(ls onr time in the ratio of military spending to GNP must be evaluated cautiollsly both as meUSlrs of relative burden and HS indicators of arms l(strnint Economie groyth is JlopU lation-rela ted Unless the civilinn portion of world GNP-till innstm(lnt and consumption componont~-grows with rising population liying standards full Un(ss the eidlian portion adjust(d for tilr popushylation rise (lxpands with rising GNP lidllg stnndnrds hn ( not b(IWfi ted flllly from t h( growth di dd(lld

3

The record for 1970 as compared with 1964 the year of ACDAs first annual Sllvey shows that military eXJlenditures haye absorbod some of this growth diddend although the shure of world GNP that they tnke has diminished The changos expressed in dollar equivalonts are summarized in the table b(low

WORLD GROWTH DIVIDEND 1970 OVER 1964 (Billion dollars)

Increase in GNP in current dollars 1752 of which

price inflation 514 population increment

(valued at 1964 GNP per capitet) 288

Increase in GNP (adjusted for price and popnlation changes) (450)

of which increase in military expenditures 28

Leaving an actual growth dividend for civilian Uses of 422

In 1970 the dollar value of world GNP vas $1252 billion higher than in 1964 Price rises and population growth however accounted for It

major part of this apparent gain in yalue The increase in GKP when higher prices and larger popUlation are considered as $450 billion or only one-third of the apparent increase The increase in world arms spending in constant prices took $28 billion of this dividend J represell ting a larger share of real growth in devol oping thall in develshyoped countrios

As an indicator of arms restraint a downward trond in tho ratio of military expenJitures to GNP

Chart IV

SHARES OF WORLD TOTAL IN 1968

Developed countries Developing countries

Military Exps

Armed Forces

Population

GNP

Puhlic Education

Public Health

o 20 40 60 80 100 Per cent

is not sufficient With 1 rapidly growing oconomy even a declining ratio to GNP can cOllceal un inshytOllsified arms race

Compared with the immediate pre-World War II period military expenditures in 1970 probably took a somewhat smallor share of world GNP HOveeI the yorld economic base has boen so vastly cnlargod that todays share ropresents II

fonrfol(l increase in expenditures ill real terms as compared ith 1937 It is estimated that worldshywide military oxpenditures of 1937 based on a League of Nations study of that prewar yoar totnled about $ljO billion in 1970 prices in contrast to todays $204 billion

Developed and Developing Countries

Poorer countries suffer most from arms races For example military equipment which they proshyduce themselves may tap the high-quality 10shy

sources that are most noedod for investment in eivilian industry ~Iilitary oquipmont bought from abroad may take some foreign exchange that could have helped to modernize tho economy and improve living stawlards

For the past 6 years ACDAs survey shows military expenditures have grown eonsidorably faster ill developing tlum in developed countries The GNP increase in developing economies from 1964 to 1970 expressed in constant prices is substantial but the rate of growth per capita has beon less than that in developod countries

For the dceloping countries 11 calculation of the llnnual growth dividond similar to that shown in the table above for the world total reveals thLt they have devoted to military spending tice llS large a proportion of their GNP growth dividend as havo developed countries whell allowance is made for price increases and the more rapid population growth in the poorer countries Togcthor theso flletors have limited their actual growth dividend for civilian uses to a 6-year gain of only $30 per person In deshyveloped countries by eOlltrast the civilian inshycremen t from 1964 to 1970 was 16 times as mn ch or $469 per person

Chart IV illustrates the end-results of these tlends as of 1968 The 93 developing countries in ACDAs survey lopresented 73 percent of the worlds population but had only 17 percent of

4

Chart V

Dollars PER CAPITA EXPENDITURES FOR400------------------------shy MILITARY EDUCATION AND HEALTH BY REGION 1968

bull Military

bull Public Education

D Public Health Dollars

------------------------------------------------------------200

------------------------------------------------------100

NORTH EUROPE OCEANIA NEAR AMERICA EAST

current world income They accounted for only 7 percent of world public expenditures on henlth care and for 10 percent on education The inshyclusion of international economic assistance would of course add somewhat to the resources available to developing countries but the addition would represent a relatively minor proportion of their GNP All foreign economic aid loans as ell as grants amounts to less than 2 percent of GNP of developing countries

On the other hand the developing areas with their large populations accounted ill 1968 for more than half the 24 million men under arms in the world

While the budgeted military expenditures of the developing countries were only 12 percent of the world total in 1968 this is not the full amount that went into maintaining military forces in these countries Military aid contributions of the major powers are a significant supplement to the military expenditures of developing countries Military aid according to the standard budgetary conshycept of this report is counted among the military expenditures of the donors-not in the recipients military budgets In this respect the expenditure data and chart IV tend to understate the relative military capacity of the developing world

Growth rates recorded since 1964 (see table

FAR EAST LATIN AFRICA AMERICA

below) suggest that developing countries have gradually enlarged their share of world milishytary effort maintaining it rate of increase in pershysonnel in the armed forces as well as in military expenditures considerably larger than that of developed countries Howmer this expunsion of military effort was accompanied by a lowering of their relative economic standing when jlopulnshytion increase is taken into account

AVERAGE ANNUAL GROWTH RATES 1964-70

(Values in cunstant prices)

World Developed Developing

Military expenditures 2 8 2 3 ii 9 Armed forces 19 O 0 l i

Total GNP 4 9 4 8 j 7 Population 2 1 10 2) Civilian GNP per capita 30 4 0 1 1

GNP le6~ military expenditure

Other Public Expenditures

A comparison of world military expenditures with other pnblic expenditures such as public education public health and foreign economic assistance is set forth ill chart III (page 3) Reshygional comparisons are shown ill rhart V and national data may be found in statistical tables II and III Comprehensive data on private expendishytures on these civilian programs are not avail-

SOUTH ASIA

5

Chart VI

MILITARY EXPENDITURES AND ARMED FORCES 1964 amp 1968

80

1964 1968 60 6Expenditures (b j I 5)

~ ~ Forces (million men) shy c-0 QJ-0

EE c

0

~ c ~ 0

ii5

20

EUROPE FAR EAST

2

AFRICA OCEANIA

able See table II footnotes a and 4 for available data on private spending in individual countries

Manpower

Following a steady upward trend between 1964 and 1968 the number of men under arms began to decline in 1969 and 1970 At year-end total armed forces numbered an estimated 23 million about 05 million fewer than at the 1968 peak although still more than 2 million higher than in 1964

Chart VI shows the large numbers of active duty forces belonging to two of the seven geoshygraphic regions In 1968 almost 16 million or two-thirds of the men under arms were in the forces of European and Far Eastern countries North America ranked next with 36 million under arms and the Ncar East next with 18 million All regions increased forces between 1964 and 1968 the largest rise in absolute numbers being in the Far East

Both developing and developed countries havo increased military expenditures more rapidly than personnel The trend is to larger outlays per man in uniform even when allowance is made for price rises This rate of course varies widely among individual countries Chart VIII (page 31) showing several indicators for the 10 major military powers illustrates the range in expendishytures per man in uniform

In addition to the men and women serving directly in the armed forces military-related emshyployment remained high particularly in the inshydustrialized countries In Europe as a whole manshypower in the armed forces and in industries and trades related to military requirements was estishymated at almost 10 percent of the economically active population Worldwide manpower in the armed forces and in military-related employment in 1968 was close to 60 million a number equaling the total population of West Germany

6

418-790 0

DEFINITIONS OF TERMS

Gross National Product (GNP) represents an economys total output of goods and services valued at current market prices paid by the ultimate COIlsumer

JiilitarJ Expenditures are current and capital expenditures to meet the needs of the armed forces including expenditures of national defense agencies for military programs expenditures for the military components of such mLxed activities as atomic energy space ami research and development military assistance to foreign countries and expenditures on paramilitary forces where they contribute subshystantially to a countrys military capabilities

Foreign Economic Aid Reeeited by developing countries comprises official bilateral grants and loans (gross of repayments) disbursed by Development Assistance CommIttee (DAC) countries and net aid received from multilateral agencies (Aid received from Communist countnes is shmvn in the world total but is not included in country or regional totals) Aid given by DAC countries includes official bilateral aid and net contributions to multilateral agencies Aid given by Communist countries represents deliveries to non-Comshymunist developing countries only Aid from private sources and milishytary assistance are not included

Public Education Expenditures include current and capital expendishytures for preschool primary secondary and university-level educashytion Wherever possible expenditures by all levels of government are covered Private spending is not included

PIblie Health Etpenditlfs represent current expenditures (and whershyever possible capital expenditures) by all levels of government for the provision of medical services Private spending is not included

Armed Forces refer to military personnel actually on duty including paramilitary forces where these forces contribute substantially to 11

countrys military capabilities Reserve forces are not included

DeulopinJ OOlntrie~ 93 in number are the countries listed under Latin America the Far East except Japan South Asia and the Near East and Africa except the Republic of South Africa and also include in Europe Albania Bulgaria Greece Portugal Spain Turkey and Yugoslavia

Dueloped COllntric) 27 in number are the countries listld under North America Oceania European NATO except Greece Portugal and Turkey the Varsaw Pact except Bulgaria and include Austria Ireland Finland Sweden Switzerland Japan and South Africa

For further discussion of terms as used in this report ee Statistical Notes page 32

- 71 - 2 7

STATlSTICAL TABLES

Table I presents a summary of recent trends in two key indicators military expenditures and GNP by major groups of countries In order to provide as current a picture as present statistical resources permit estimates for 1969 and 1970 are included However since national data for the latter years are preliminary and incomplete these estimates are subject to revision The data in constant 1968 dollars are approximate estimates based on the use of average price and exchange rate adjustment factors for groups of countries and do not reflect adjustments by individual country

Table II is the basic table showing a variety of data on each of 120 individual countries in 1968

the latest year for which data are available on a worldwide basis Table III shovs some of these same data expressed on a per capita basis Hisshytorical trends by country and year 1964-68 are presented in table IV (military expenditures and GNP) and table V (armed forces)

Table VI ranks the first 30 countries of the world in terms of six main factors of military and economic strength

Chart VII RELATIVE BURDEN OF MILITARY EXPENDITURES 1968

ll Z G LI o tf CIl laquo CIl lLJ 0 gt l-e z lLJ ll X lLJ

gtshy0 laquo IshyJ E

OVER 10

5-10

~------

2-5

---~~-

1-2

UNDER 1

UNDER $100middot

1~0$

BURMA

CHAO CONGO

KlNSUA5A DAHOMEY ETHiOP(A HIIII INDIA INOllNJSIAsbt1Ju

REPUBliC UGANOA

AfGflANISTAN MAll tANZANIA u~PEflOtTil

~ -~

tfALAN1 NEPAL NIGet

$100-199

UNITED AS

R9II1JIIC YIETNAM

NORTH VIETtiAM

IEPU911COF

CAMBQI)IA CHINA

MAINLANO

BOLIVIA CAMEROON GIJINEA (ORA

REPfBtlC OF MAIIRUANIA PAKISTAN SUIAti TIAlIANO YEMEN

CENTRAL AFRICAN REPIlBlIC

KENVil MAUGASY

RtII~LlC NERIA TOGO

CEYLON SIERRA LEDflE

GROSS NATIONAL PRODUCT PER CAPITA

$200-299 $300-499 $500-999 $1000-1999 i $2000-2999 OVER$3000

cmNA SAUDI ARABIA ISRAEl REItf811COF

IRAQ IJORDAN

KOREA NORTH

___ f -------- shy--~------

UlAN IALBANIA CUBA POLAND UNITED SYRIMtARAB PORTUGAL USSR STATES

REPUBLIC UNITED KINGDOM

ALGERIA BRAZIL CHILE BULGARIA AUSTRALIA CANADA CONGO LEBAtiON GREECE CZECHOmiddot BElGIUM KUWAIT

BRAZllVILLE MALAYSIA SOUlli AFRICA SLOVAKIA DENMARK SWEDEN MM1NICtN MONGOLIA REPUBLIC OF GERMANY EAST FRANCE

I BUe fRU SfAIN HUNGARY GERMANY GHANA TURKEY VENEZUElA ITALY WEST MOROCCO YUGOSLAVIA NETHERLANDS NORWAY

ROMANIA SWITZERLAND

___ shy _-shy --------COLOMelA QABON ARGENTINA AUSTRIA LUXEMBOURG ECUADOR IVORY COAST CYIRUS FINLAND ElSALVA[)OR IllCARIGUA URUGUAY LIBYA GUATEMALA ZAMBIA NEW ZEALAND HONDURAS lIIiiRIA PARAGUAY PHilI PPI NES RHODpoundSIA

$OUTHERN SENEGAL nJfUSIA

-~------ shyCOSTA RICA Msueo IRELAND ICELANO GUYANA PANAMA JAPAN JAMAICA TRINIDAD amp

I TOBAGO

I

C_~1____l1li11II1II_________111l1li_______IIII_I_UIIIIJ_IIIIIJIIIIbull __IIIII11IIIIIIII1IIIIIIII1III11III1I1I11i11111lflllll1illliililil_-__

8

TABLE I-SUMMARY TRENDS IN MILITARY EXPENDITURES AND GNP 1964-70

Military Expenditures Gross National Product

1964 1965 1966 1967 1968 1969 1970 1964 1965 1966 1967 1968 1969 1970 est est est est

TOTAL

(Billions of Current Dollars)

WORLD 140 144 161 180 191 199 204 1936 2106 2301 2464 2685 2936 3188 Developed 125 127 143 160 169 175 177 1603 1734 1907 2048 2235 2421 2625 Developing _ 15 17 18 20 22 24 27 333 372 394 416 450 515 563

NATO __ _ 73 74 86 100 105 106 103 1073 1165 1268 1352 1462 1587 l681 Warsaw Pact 49 51 54 57 61 66 71 397 428 466 506 553 593 655 Other _ 18 19 21 23 25 27 30 466 513 567 606 670 756 852

811110ns of Constantl968 Dollars) (

WORLDbullbullbull _bullbullbullbullbullbullbull 158 159 172 188 191 192 186 22112 2325 2452 25711 2685 2830 2940 Developedbullbullbullbullbullbullbullbullbull _bullbull 141 141 154 168 169 169 162 1838 1936 2047 2148 2235 2346 2431 Devl1lopingbull __ ____ ______ bull____ 17 18 18 20 22 23 24 364 389 405 422 4511 484 509

NATObullbullbullbullbull __ bullbullbullbullbullbullbullbull __ 83 82 92 105 105 102 94 1231 1301 1360 1418 1462 1539 1558 Warsaw PacL__ ________ bull__ 55 56 58 59 61 63 64 446 472 501 526 553 566 594 Other__ ____ bull ________ bull __ bull __ 20 21 22 24 25 27 28 525 552 591 626 670 725 788

PER CAPITA

(Current Dollars)

WORLD __ 43 44 48 52 54 56 56 599 637 682 716 765 820 873 Developed _ ___ 134 135 151 167 174 179 180 1725 1 845 2009 2126 2310 2479 2666 Deyeloping __ 7 7 9 10 145 157 163 168 177 198 211

NATO _ 145 146 168 193 201 201 192 2139 2295 2469 2607 2792 3003 3151 Warsaw Pact 151 153 162 169 180 192 205 1213 1292 1398 1501 1626 1730 1897 Other __ ____ 7 8 9 9 10 11 194 208 224 235 253 279 307

(Comltanll968 Dollars)

WORlD____ __ bull _bull _____ bullbull ______ 49 48 51 55 54 54 51 682 703 727 747 765 790 805 Oeveloped ______ bullbull __ __ __ _____ bullbull 152 150 162 175 174 173 164 1978 2060 2157 2230 2310 2402 2469 Developlnllbull __ _____ __ bull ______ 7 8 8 8 9 9 9 158 165 167 170 177 186 191

NATO bullbull _ __ __ bull____________ _ bull ___ bull __ 165 162 180 202 201 194 177 2455 2563 2648 2734 2792 2911 2921 Warsaw PacL ________ ___________ 170 169 174 176 180 183 186 1362 1425 1502 1562 1626 1 652 1718 other _ ______ _____ __ 8 8 9 9 9 10 10 219 224 234 242 253 268 284

9

----

___

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968 [I n current dollars)

Relative burden Other public expend itures Armed forces

GrossMilitary ForcesforeignPopu- Militarynationalexpend-

MilitaryArmedeconomic aidPublic Publicexpend- GNPproductitures lation expend-health 14 forcesper educashyitures as

(per iturestion 23percent capita thou- per manReceived Givenof GNP sand

(thoushy popushy(million (million(million(million(dolshy(million(million (dollars)lation)sands)dollars) dollars)dollars)lars) dollars)dollars) (millions) ()dollars)

SUMMARY

WORLD TOT AL ---- Developed DEvEloping ----- shy

NORTH AMERICAmiddot - - - ---~ - shy

EUROPL Developed Developing

LATIN AMERiCAmiddotmiddot shy ~ --~

FAR EASL Developed - -_ - ~ ~

Developing_

SOUTH ASiA --

NEAR EAST _ - - ~ ~ ~

AFRICA - - - - _ shyDeveloped - - shy

~ ~ shy

_ -~ Developing

OCEANIA

WORLD TOTAL __ ____

NORTH AMERICA_ __ United Statesmiddot __ Canadamiddotbull _ __

EUROPL

NATO European Belgium __ __ Denmark France Germany WesP _____

Greece Icelandmiddot _ Italy __ Luxembourg Netherlands __

See footnotes at end 01 table

65521 60769 4752

23788

37051 35552 1499

1364

889 313 576

403

412

693 195 498

921

86387382

~ 8541 7382 97

shy 4282

576 3353 ~ 3306

47

1410

576

~

1551 846 796-50

1721

350

1324

1551

~

I 324

shy 157

23819 7 10973 II 12846 5

3602 16

8612 12 6986 II 1626 14

1153 4

7161 6 250 2

6911 6

1752 3

993 11 i

449 2 38 2

411 2

i 97 7 I

I

800 15381 170

2287o

1008 12002 1872

1938

1618 4584 I 573

1230

2921

2457 9368 1818

10866

190733 168779 21954

82379

86888 83844 3044

2235

12018 1146

10872

2155

2901

1103 356 747

1054

190733

82379 80596 I 783

86888

22668 602 345

6118 5278

367

2245

90 I

2685006 2234940

450066

931800

1185000 1115700

69300

113551

281335 141 920 139415

62090

29594

50130 14020 36 110

31500

2685006

931800 865700 66 100

1185000

529900 20700 12400

126600 132700

7600 500

74800 800

25 200

35091 9675

25416

221 9

7256 6106 1150

2617

12338 10LO

11327

6892

91 5

2708 192

2516

148

I

35091

221 9 201 2 208

7256

I 3016 I

96 50

499 602

I

88

21 528

3 127 1

71 72 49

118

73 75 44

20

43 8

78

35

98

22 25 21

33

765 2310

177

4199

1633 1827

603

434

228 1404

123

90

324

185 731 144

2131 i

BY COUNTRY

611

118 93 27

73

43 29 28 48 40

48

30 10 36

7651

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 I 418 2381 I 978

130172 117313 12859

50815

60318 58745 1573

2567

11138 6000 5138

1324

1085

1622 450

1172

1303

130172

50815 46400 4415

60318

17883 893 600

3354 3863

157 12

2730 29

1214

65521 7 382 1

J23788 4282 I

21 382 4 048 1 2406 234

8008

22870 23027 17480

100898612 12

7491 99

103026 10 6081

46 7500 505

9 12 115

486 10

108608

18 2280161

510244~ t 8000

129 i 10 3

7023

37051

15327 530 670 292

6874

middot90 5

696 -20 973

3353576

2829

-I 93 313

29 980 755 i

72

257

~I 139

10

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued I n current dollars]

Relative burden i Other public expenditures 1

Armed lorces

I---I--~-~I----Imiddot ----------shyMilitary Gross Popushy Military Foreign Forces i

Ituresexpendmiddot national

product lation expend GNP Public Public economic aid Armed Military itures as per educa- health 24 bull lorces Iexpend-percent capita tlon 3 1 (per itures 01 GNP Received Given thoumiddot per man

sand) (million (million (dolshy (million (million (million (million (thou- popumiddotdollars) dollars) (millions) () lars) dollars) dollars) dollars) dollars) I sands) lalion) I (dollars)

BY COUNTRY~Continued

NATO-Continued Norway Portugal _ Turkey United Kindgom

322 359 573

5545

9 000 5000

11600 103000

38 95

335 553

36 72 49 54

2357 528 346

1863

403 57

321 4450

180 79

139 4779

241

24 47

505

35 183 514 427

9 19 15 8

9200 1 962 1115

12986

NATO Total 105047 1461700 5235 72 2792 68698 39117 313 7 III 6628 13 15849

Warsaw PacL Bulgaria __ Czechoslovakia _ Germany East __ ___ Hungary _____ __

61 100 300

1 360 1 450

340

553200 9100

28400 30800 13800

3402 84

144 171 103

(7-9) 33 48 47 25

1626 1083 1972 1801 1340

38604 367

1093 I 031

580

18281 272 982 792 339

400

100

4783 173 265 196 l37

14 21 18 II 13

12774 1734 5132 7398 2482

Poland__ ____ __ __ _ Romania __ Soviet Union

1950 700

55000

37400 20700

413000

323 197

2380

521158 34 1051

(8-10) 1735

1643 890

33000

1396 600

13900 300

319 223

3470

10 II 15

6113 3139

15850

Other European Albania ___ Austria _ Finland _ _ __ _ Ireland _

3120 76

150 156

27

101900 800

11400 8 000 3 000

838 20 74 47 29

31 1095

13 2 a 9

I 216 400

1551 1706 1 031

3831 70

402 585 110

3443 30 567 344

ll4

263 124

31

803 51

50 39

10

10 26 7 8 3

3885 1490 3 000 4000 2700

Spain _ Sweden_ _ Switzerland _ Yugoslavia _

913 977 365 456

25200 26300 17200 10000

3261 79 61

202

36 37 21 46

773 3322 2798

496

290 1486

577 3ll

403 1 070

429 486

181

82

72 21

305 78 31

239

91 10 5

12

2993 u 12526 11 11774

1908

LATIN AMERICA __ Argentina _ Bolivia _ BraziL_ Chile _ Colombia _

2235 380 17

651 127 98

113557 171l1

786 27353 5670 5638

261 7 236 44

802 92

198

20 22 22 24 22 17

434 725 177 310 614 284

2567 I 346

25 169 205 111

1364 26 3

81 155

96

1410 15 52

319 220 170

1153 8144

18 225 63 55

4 6 4 3 7

1938 2639

944 2893 2016 1782

Cost Ricbull _ _ Cuba bullbull ___ __ _ Dominican Republic_ _ Ecuadoc ___ EI Salvador

300 30 26 10

734 bull 5 000

1169 1475

930

16 76 4 a 57 32

106 a 26 18 11

449 658 295 259 290

33 281

26 35 24

20 60 -14

6 14

15 1

54 28 10

394 18 17 6

52 5 3 2

761 1667 1529 1667

Guatemala _ __ Guyana _ _ HaitL __ Honduras _ Jamaica _

16 2

1500 215 326 621 951

5 a 7

50 25 L9

11 9

21 14 5

299 303

65 245 497

27 8 3

17 22

34 8 4 7

17

24 16 6

15 28

9 1 5

2 1 1 2 1

1778 2000 1 400 1800 2500

Mexico_ Nicaragua __ _ Panama _ __ Paraguay _ Peru ____

184 10 1

10 132

26310 697 826 511

4287

473 19 14 22

128

7 14 1

20 31

557 374 602 229 336

504 16 33 9

151

316 5

16 3

51

210 19 19 23 57

70 i6

13 50

6

2629 1667

769 2640

Trinidad amp Tobago __ Uruguay_ bull Venezuela

3 23

194

748 1589 9110

10 28 97

4 14 21

726 564 941

19 13

396

10 21 78

1 13

38

3 000 1 769 5105

See footnotes at end of table

11

TABLE It-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued (I n current dollars) 1

Military expendshy

itures

Gross national product

Popushylation

Relative burden Other public expenditures

I

I Public

ForeignMilitary GNP Public economic aid S expendshy per I educashyitures as I capita 1 tion Zbull1 I health

Armed forces

I 1Forces Armed 1 Military forces 1 flfer expend-

percent I Received Given 1 taumiddot itures of GNP 1 sand I per man

(million (million I

(dol- (million (million (million (million I (thou- popushy1dollars) dollars) I(millions) () lars)

dollars) dollars) 1 dollars) dollars) I sands) lation) (dollars)

I I

__------_--

FAR EAST Burma Cambodia China Mainland China Republic 01 Indonesia

Japan+ Korea North Korea Republic oL Laos Malaysia

Mongolia Philippines Thailand Vietnam North Vietnam Republic of

SOUTH ASiA Afghanista n Ceylon India NepaL Pakistan

NEAR EAST Cyprus Iran Iraq I srae __ Jordan I

Kuwait I lebanon Saudi Arabia Syrian Arab Republic -

Yemen

United Arab Republic

AFRICA 0shy

Algeria Cameroon Cenlral African Republic Chad Congo (Brazzaville)

Congo (Kinshasa) Dahomey __ I Ethiopia Gabon Ghana _

Guinea __ Ivory Coast Kenya liberia libya

See footnotes at end of table

middot20 116 157

550 613

2155 16 13

1603 5

518

2901 I 6

530

280 I 672 105

63 45 I

383 i 137 I 14 I 666 I

1103 1

100 I 19 I 3

8 1

6 I

44 I 4

41 I 3

44 i

14 I 17 I 15 I 3 I

37 I

575 I 7276 1 5512

2300 3050

62090 1370 1781

43 000 800

15139

29594 1 438

8 020 I 2400 i 4042

575 i

2220 i

1 424 2200 I 1425

550

5740

50130 3365

800 200 270 174

1330 182

1534 200

1 994

669 1242 1330

254 2965

BY COUNTRY--Continued

12338 264 66

806 a 141

1137

43 57 66

F 8 3 101 29

4 000 99

100

101 1 134 305

28 103

8 10180

41 168 32

1 404 I 261 188 I 721

326 I

6000 100 110

7 140

12 359 351 193 174

1[gt 35 16 28

10 239 20 I

479 I 203 157 i 119

175 I

198 168 91

32

6892 161 120

5271 107

1234

35 12 7

37 6

34

90 1 85 I

149

82 I 75

123 I

1324 6

66 1 130

4 118

91 5 6

27 I 86 27 2 I

98 14 66

117 166 183

324 704 296 278

1472 I 274

1085 9

182 133 225

19

5 27 46 57 5 a

28 32

174 96

) 2 5

4111 519 478 250 110

87 34

107 54 3

31 7 I 6 181 232

2708 129 56 15 35 9

22 3 a 24

10 1 5 10 3 a to 34

185 260 43 134 78

200

1622 155 23 7 8

111

17 a 26

242 5

84

33 lfr 2 2

27 15 22

78

711 63 I

417

238 1

69 I 7

15 10 67

38 4 a

102 11 18

21 4 11 12 12

174 312 130 225

1644

37 60 22 7

74

313 I 11 I II 2

123

2

23 29

18 24

403 9 46

283 5

60

412 I 4 1

135 I 28 57

44 8

33 7

8

80

693 59 11 3

bull 4 6

28 I 5 1

1~ I 16

17 10 3

37

11

95 333

314 60 50

139 79

448

1721 30 48

1107 2

534

350 I

132 14 70 48

14 13

-15 11 1

61

1324 117

45 18 22 42

67 18 50 11 87

9 49 61 23 6

50

796

i I I i

s 33 47

167 447 735

1752 70 10

11133 1

15 1

bull 524 1

I 99i I

bull 225 I 992 1

771 55 I

I 7

12 956 69

8

bull 391

449 58 5

1 1 2 I

I 31 2 I

45 i 1 1

15 i

4 3-I 4

I 8 I

2 I 31 20 I 34 6

28

5 23

42

3 4 i 2 i I I 4 I

I 11 2 i 8

II 28 26 I

13 4

12 1

12 1

2 I

12 I 2 I 4 I 1 I 1

4 1 4 I

1678 775 774

2419 805 696

4584 1 534

379 358

1 895

606 2468

940 1 230

834

1230 229

1300 1415

333 989

2921 6000 2356 3043 8727 1 909

9 000 3750 6839 1986 1750

1703

2457 1724 3800 3 000 8 000 3 000

1419 2 000

911 3000 2933

2800 4250 5 000

750 4625

12

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968-Continued [In current dollarsjt

I Relative burden I Other public expenditures I Armed forcesI

IMilitary ForeignGross expend- national Popu- Military GNP Public economic aid S Forces MilitaryIArmeditures product lation expend- per educa- Public expendshy

tion 23 (perhealth 2 ituresitures as capita forces thoupercent per manReceived Given

of GNP sand (million (million (million (million (million (thoushy(dolshy (million popushydollars) dollars) (millions) lars) dollars) dollars) dollars) dollars) sands) lation)

I(dollars)()

I

BY COUNTRY -Continued

AFRICA-Continued Malagasy Republic MalawL __ MaIL __ Mauritania Morocco_

Niger Nigeria____ Rhodesia Southern__ __ _ Senegal ____ Sierra leone __ __

Somali Republic __ __ __ South Africa Republic of Sudan __ __ Tanzania Togo ____

Tunisia Ugandabull Upper Volta~ __ Zambia ______

OCEANIA ____ Australia __ ___ New Zealand

13 780 I 247 5 264 8 172

76 2981

342 91 3

6000 21 1138 15 827

340

8 170 356 14020

74 1560 13 943 I 121

183 213 I 14 471048 16 994 81 -5 5 I257 20 1325 41

1054 31500 148 26600 120

9~ I 4900 I 28 I

70 43 48 11

146

38 535 49 38 25

27 192 148

Oeveloped country or region (Country without asterisk is developing) All countries in region are developing Rough ACDA estimate

None or negligible I For most countries conversion into US dollars Is at official par value exchange

rates as rounded by AID For all Communist and several developing countries esllmated purchaSing power panties are used (See Conversion Rates page 35)

Due to dilferences in concepls coverage and reliability data on public education and health expenditures do not permit accurate comparisons between countries or in some cases between years for the same country

3 Public expendHures on education in 1968 are ACDA estimates based primarily on dala for 1967 or earlier (See Educalion page 34)

Informallon on educational expenditures which are made outside of governmentbudgets is not available on a worldwide baSis The rellive importance of these expenditures vanes sharply from co~nlry to country In the United States private expe~dltures In 1968 were $118 billion or 20 of the total Private expendilures conslltut~d the follOWing percentages of total national expenditures In 1967 (or Ih indicated year) according to UNESCO estimates

EI Salvador ______ Sudan

Percent Percent Argenlina (1966) __ __ Australia ____ __ Canada ____ __ Chile (1966) bull China Republic of ~_ poundcuador bull __ __ __ __

51 38 23 28 29 34

Israel (I966)~ __ Japan _____ Jordan __Kenya __ _ Malawi _ __ Philippines_

26 20 14 70 15 24

23 __ ___ __ 27 Bhiopia (1966) 47 Venezuela __ __ _______ __ 27Greece ________ __ 39 Vietnam Republic of (1965) __ 58Guatemala _______ __ __ 25 Zambia (1966) __ __ 73India __ 44

In Communist countrie~ extramiddotbudgetary expenditures are also significan For example according 10 offiCial data education expenditures by state cooperative and trade union enterprises and collective farms in the Soviet Union make up about 13 percent of the total parental payments to childrens institutions and schools mayconstitute another 6 percent

17 III 49 15 44 4 58 II 4 26

19 55 10 4 20 47 154 4 8 25 204 106 40 124

9

I

90 I 5 29 15 112 132 [ 83 108 18 230 42 I 13 -3 18 220 29 14 48 9 137 9 3 111

47 62 3 I 26 I

25 731 450 195 47 106 69 22 I 29 14 78 30 13 34 14 120 4 2 13

13 16

224 122

i 57 I

15

I 15

14 I 88 20

lO 1 9 50 i 6 I 23 15 326

1

I 20 I e 18 51

I

33 2131 1 1303 I 921 157 36 18

2211 1 781

i

i 1132

171 697 224 i

157

I 4 I I

4 I

62

I 70 I 5 5 i

2

8 38 24 4 1

2 I 2 I 3 i

I I

97 84 shy13 I

4

3250 1000 1250 8000 1226

3000 1300 4200 3000 1500

1000 9368 3083 3250 3000

609 2667 2500 6667

10866 11524 6615

Public expenditures on health in 1968 are based in part on data for earlier years(See Health page 35)

As 10 educational expenditures Ihe portion of tolal health expenditures which is exlramiddotbudgetary varies greatly from country to country Scattered information suggests that on average Ihe private portion of health expenditures may be higherthan the private portion of education expenditures In the United States in 1968 private health expenditures amounted to $352 billion or 62 percent of total health expenditures

In Communist countries extramiddotbudgetary health expenditures are made by state cooperative and trade unum enterprises anj collective farms as well as households In the Soviet Union for example they constitute about 20 percent of total health expenditures according to official sources

Economic aid given by Communist countries to nonmiddotCommunist counlries is included in the world total of aid received It is not distributed by individual recipientcounlries or regions however as accurate data on such distribution are no available (See Foreign Economic Aid page 34_)

Military expenditures and GNP are not fully comparable due to the use of different dollar conversion rates lor the two variables in the Soviet Union (see footnote 9)Using the more valid ralios shown in parentheses for the Soviet Union and Ihe Warsaw Pact total the ratio for the world is eslimated to be 6-7 percent and for Europe 5-6 percent

1 Ineludes West Berlin Includes paramililary as well as regular forces The implied relationship between dollar amounts of Soviet GNP and military

expenditures (or GNP and public expenditures on educalion and health) is not valid due 10 the use of di~erent types of conversion rates lor GNP and particular sectors It is estimated Ihat the actual ratio of military expenditures to GNP would fall somemiddot where within the range indicated in parentheses the lower part of the range reflecting a comparison of military expenditures and GNP in faclormiddoteost ruble values and the upper estimate representing dollar values converted on a comparable basis (See Conversion Rates page 35)

10 Since either or both military expenditures and GNP estimates are approximations the resulting ratio should be viewed with particular caution

II For Sweden SWitzerland and Israel the high rate of military expendilures per man rellects small standing forces with a capability for extremely rapid mobilization of large reserve forces

13

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 2: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

INTRODUCTION

World Military Expenditures 1970 is the fifth report by the United StatEs Arms Control and Disarmament Agency on the size and impact of arms expenditures of the nations of the world

This report shows that world military expenditures inflated by further increases in prices reached a record peak of $204000000000 in 1970 The increase in military spending over the previous year was the smallest in recent years and relatively less than the apparent price rise-a hopeful sign that the sharp upward trend of the 1960s has been blunted

Vast sums continue to flow to the acquisition of arms and the supshyport of mihtary forces It is unfortunately still evident that the poorer countries are increasing arms spending at a faster rate than the wealthier ones There is an eloquent case in the stark figures for reshydoubling of efforts to end conflicts remove the causes of war and reach equitable agreements for the control and reduction of arms and milItary forces

GERARD C SMITH

Director

WORLD MILITARY EXPENDITURES 1970

and Related Data

for 120 Countries

CONTENTS Page

Highlights of the Data 1

Charts

I Military expenditures 1964-70 1 II Military expenditures and GNP estimated III

constant prices indexes 1964-70 2 III World military and other public expenditures

1964 and 1968 3 IV Shares of world total in 1968 4 V Per capita expenditures for military education

and health by region 1968 5 VI Military expenditures and armed forces by region

1964 and 1968 6 VII Relative burden of military expenditures 1968 8

VIII Ten major military powers 1968 31

Definitions of Terms 7

Statistical Tables 8

Tables

I Summary trends in military expenditures and GNP 1964-70 9

II Military expenditures and relatltd unta 1968 10 III Per capita military expenditures and related data

1968 14 IV IIlitary expenditures and GNP 1964-68 18 V Armed forces 1964-68 26

VI Military and economic ranking of countries 1968 30

Statistical Notes 32

ii

I II lUll b t I n

HIGHLIGHTS OF THE DATA

This fifth annual survey of m-ilitary expenditures and related data by the Us Arms Control and Disarmament Agency (ACDA) covers 1969 and 1970 insofar as prelimnary information permit rough estimates on a regional or global basis The estimates jor the latest years as well as the detailed national data for 1964-68 are subject to qualifications which could affect both trend and crrmparative levels They should be regarded as reasonable approxishymations rather than as precise statistical indicators

Summary Chart I

World military expenditures inflated by further increases in prices reached a new peak in 1970 MILITARYLast years vorld total reached an estimated 204

EXPENDITURES$204000000000 the equivalent in dollar value of Bittion dollars current prices a years income produced by the 1800000000 people in the poorer half of the worlds population

In actual expenditures the increase in world military spcnding over the previous year wos the smallest in recent years (chart I) In terms of

World Total constant dollars ie had prices been unchanged there would have been a slight declillo--a hopeful Developed

countriessign that the sharp uptrend of the 1960s has been blunted (chart II) Expressed as a ratio to GNP military spending was slightly lower for the thinl ~--- 103

year in a 10- In 1970 these outlays took 64 percent of the world product

NATO _In the 6 years since the first world survey 71_ military outlays in current dollars htye risen _ _0 almost 50 percent HOveyer about three-fifths of ---shyWarsaw Pact this increase reflects price inflation If prices h11lt1 been unchanged military expenditures of 1970 would have exceeded those of 1964 by roughly 20 bullOther bullbull - 27bullbull

30

------shyDeveloping Figures in current dollars reflect the prices and exshy countries

change rates of the respective years to which they apply 1964196519661967196B196if1970middot Figures in constant dollars have been adjusted for changes

Calendar years in both prices and exchange rates to show real values middotEstlmated

in terms of a single year (See discussion of prices page 36)

177

CharI II MILITARY EXPENDITURES AND GNP

ESTIMATED IN CONSTANT PRICES

Index 1964 == 100 140r-1r~----r--~~

World Wide

bull 130 GNP total

--- shyMilitary 7 expendilures shy

120 bullbullbullbullbullbullbullbull ~

p~ t

110 Ji t _Y--GNP per capita

I Plloyen---------I-L----l

1964 65 r6i 67 68 69 70 140~_r--r_-r--T--r~

Developed Countries

shy130

GNP total I- 1P

120 ~- dJmiddot-1---bullbullbullbull

bull J

GNP per shy-t ----capita110 l--Military1 p expendItures

~ 10

1964 65 66 67 68 69 70 150r-1r---~-r~r-

d p

Developing Countries shy

140 1 Military l f shyexpenditures bullbullbullbullbull

130 ~I shy

hNP~total120

~

bull 1 I

110 ~GNP per capita

100~~~~~~--~~

1964 65 66 67 68 69 70 Estimated

percent Thus the 20 percent rise measures the real or physical increase in military effort since 1964 Some of the increase is reflected in the increased numbers of personnel in the armed forces which are up more than 10 percent some in investment in higher quality increasingly sophisticated military equipment The rise in expenditures includes strategic forces as well as the conventioIl11 forces which represent four-fifths of world military spending

The current survey produces no evidence that a widesprcad shift from military to civilian uses of resources has begun Nor docs the slower rate of increase in total military expenditures in the Pl1st 2 years reflect a worldwide tendency to restrict 8uch outlays In the vast majority of countries for which recent information is available there was a further rise in military budgets in current prices in 1970 While NATO spending went down largely as 11 result of a decrease in US defense expenditures the total for developed countries as a whole did not decline In developing countries as a group military expenditures again moved higher Thu8 developing countries continued as they had in the years preceding to inerease their share of world military outlays devoting to military programs funds that could have been allocated to economic development

More public funds continued to flow into milishytary programs than into public education or public health pIognuns for the yorIds pOJlulation of 36 billioll (chart III) In developing countries for example the increase in military spending in the period since 1964 represented the equivalent of 3 years expenditures on public education for the billion school-age children in those countries

The text below amplifies some of these summary points and provides additional information on global and regional trends and comparisons (See table I page 9) National datn are not compared here but may be found for 1968 nnd earlier years ill tables II through VI page8 10 to 30

The Trend of Military Expenditures

Military expenditures prodde a useful baromshyeter of the momentum of the arms race Howshyever th( yorId totnl like lll aHmgps may

The criteria llsed in classifying countries as developshying arc described in the Statistical ~otes page 32

2

Chart III

WORLO MILITARY AND OTHER PUBUC EXPENDITURES

1964 amp 1968 --------------------------------200

Billion current dollars

1964 -r50

1J68

~--~------~--oo

~----50

Military Education Health Foreign Economic

Aid

conceal geographic and other changes which are of major importance in gauging trends

Chart I shows trends in military expenditures in current prices for the ~odd (vertical hite bllrs) and for each of the major eategories of countries for whicb projections through 1970 are attempted It should be noted that the categories of countries shown on the charts are overlapping lVIost vVarshysaw Pact and NATO countries and some other countries are represented in the developed group Developed and developing countries together make up the world total as do KATO middotWnrSlW Pllct and the other category

The chart shows the NATO line in current prices declining after a rnpid rise from 1965 to 1968 Although the Warsaw Pact line continues on a slIlrp llI)nlld slant developed conntrirs as n whole hardly changed sp(1nding levels bctween 1969 Ilnd 1970

Chart II shows trends in military expenditures after allowance is made for tho effect of price ris(ls

(Correction for price changes on a worldwide basis is necessarily rough) Expressed in constant dollars military (lxpeuditnr(ls of developed COUllshy

tries are estimated to have leveled off between 1967 and 1969 and to have declined in 1970 led by a downturn in the NATO totnl This is the first such drop since ACDAs odd survey began in 1964 and a significant one in overall effect since expenditures of the developed conn tries acshycount for approximately 90 percent of world military spending

The trends in developing conntries as a group are rather different In current and even in constant prices the recent rapid increase of military spending in these countries has continll(ld Within this classification of countries however major differences in military expenditure trends are evident The rate of expnnsion of expendishytures is by far the shnrpest in the Nem East Smaller increases have occurred in the Fill East LnJin America and Africa In South Asia spending rates have ehanged relatively little sinee 1966

As chart II indieates in the developing countries as a whole the rate of in(Teast in military spending continues to outstrip the adnll1ce in GXP at tlw expense of populations hose an~llg() illeoIlw p(lr eapita is still barely $200 a year

Comparisons With Economic Growth

Since 1968 when th(l advance in wodd military expenditures began to moderate tho growth rute of world GNP hus been faster than the onrall rise in military spending (see chart II) As it

cons(lquence the shale of world GNP going to military programs has declined from 11 high of 71 p(lrcent in 1967 to 64 percent in 1970

This chango suggests that oHrall the military burden has beOul1 to lessen somewhat in relation

b

to the yorld economy On the oth~r hand dlllllg(ls onr time in the ratio of military spending to GNP must be evaluated cautiollsly both as meUSlrs of relative burden and HS indicators of arms l(strnint Economie groyth is JlopU lation-rela ted Unless the civilinn portion of world GNP-till innstm(lnt and consumption componont~-grows with rising population liying standards full Un(ss the eidlian portion adjust(d for tilr popushylation rise (lxpands with rising GNP lidllg stnndnrds hn ( not b(IWfi ted flllly from t h( growth di dd(lld

3

The record for 1970 as compared with 1964 the year of ACDAs first annual Sllvey shows that military eXJlenditures haye absorbod some of this growth diddend although the shure of world GNP that they tnke has diminished The changos expressed in dollar equivalonts are summarized in the table b(low

WORLD GROWTH DIVIDEND 1970 OVER 1964 (Billion dollars)

Increase in GNP in current dollars 1752 of which

price inflation 514 population increment

(valued at 1964 GNP per capitet) 288

Increase in GNP (adjusted for price and popnlation changes) (450)

of which increase in military expenditures 28

Leaving an actual growth dividend for civilian Uses of 422

In 1970 the dollar value of world GNP vas $1252 billion higher than in 1964 Price rises and population growth however accounted for It

major part of this apparent gain in yalue The increase in GKP when higher prices and larger popUlation are considered as $450 billion or only one-third of the apparent increase The increase in world arms spending in constant prices took $28 billion of this dividend J represell ting a larger share of real growth in devol oping thall in develshyoped countrios

As an indicator of arms restraint a downward trond in tho ratio of military expenJitures to GNP

Chart IV

SHARES OF WORLD TOTAL IN 1968

Developed countries Developing countries

Military Exps

Armed Forces

Population

GNP

Puhlic Education

Public Health

o 20 40 60 80 100 Per cent

is not sufficient With 1 rapidly growing oconomy even a declining ratio to GNP can cOllceal un inshytOllsified arms race

Compared with the immediate pre-World War II period military expenditures in 1970 probably took a somewhat smallor share of world GNP HOveeI the yorld economic base has boen so vastly cnlargod that todays share ropresents II

fonrfol(l increase in expenditures ill real terms as compared ith 1937 It is estimated that worldshywide military oxpenditures of 1937 based on a League of Nations study of that prewar yoar totnled about $ljO billion in 1970 prices in contrast to todays $204 billion

Developed and Developing Countries

Poorer countries suffer most from arms races For example military equipment which they proshyduce themselves may tap the high-quality 10shy

sources that are most noedod for investment in eivilian industry ~Iilitary oquipmont bought from abroad may take some foreign exchange that could have helped to modernize tho economy and improve living stawlards

For the past 6 years ACDAs survey shows military expenditures have grown eonsidorably faster ill developing tlum in developed countries The GNP increase in developing economies from 1964 to 1970 expressed in constant prices is substantial but the rate of growth per capita has beon less than that in developod countries

For the dceloping countries 11 calculation of the llnnual growth dividond similar to that shown in the table above for the world total reveals thLt they have devoted to military spending tice llS large a proportion of their GNP growth dividend as havo developed countries whell allowance is made for price increases and the more rapid population growth in the poorer countries Togcthor theso flletors have limited their actual growth dividend for civilian uses to a 6-year gain of only $30 per person In deshyveloped countries by eOlltrast the civilian inshycremen t from 1964 to 1970 was 16 times as mn ch or $469 per person

Chart IV illustrates the end-results of these tlends as of 1968 The 93 developing countries in ACDAs survey lopresented 73 percent of the worlds population but had only 17 percent of

4

Chart V

Dollars PER CAPITA EXPENDITURES FOR400------------------------shy MILITARY EDUCATION AND HEALTH BY REGION 1968

bull Military

bull Public Education

D Public Health Dollars

------------------------------------------------------------200

------------------------------------------------------100

NORTH EUROPE OCEANIA NEAR AMERICA EAST

current world income They accounted for only 7 percent of world public expenditures on henlth care and for 10 percent on education The inshyclusion of international economic assistance would of course add somewhat to the resources available to developing countries but the addition would represent a relatively minor proportion of their GNP All foreign economic aid loans as ell as grants amounts to less than 2 percent of GNP of developing countries

On the other hand the developing areas with their large populations accounted ill 1968 for more than half the 24 million men under arms in the world

While the budgeted military expenditures of the developing countries were only 12 percent of the world total in 1968 this is not the full amount that went into maintaining military forces in these countries Military aid contributions of the major powers are a significant supplement to the military expenditures of developing countries Military aid according to the standard budgetary conshycept of this report is counted among the military expenditures of the donors-not in the recipients military budgets In this respect the expenditure data and chart IV tend to understate the relative military capacity of the developing world

Growth rates recorded since 1964 (see table

FAR EAST LATIN AFRICA AMERICA

below) suggest that developing countries have gradually enlarged their share of world milishytary effort maintaining it rate of increase in pershysonnel in the armed forces as well as in military expenditures considerably larger than that of developed countries Howmer this expunsion of military effort was accompanied by a lowering of their relative economic standing when jlopulnshytion increase is taken into account

AVERAGE ANNUAL GROWTH RATES 1964-70

(Values in cunstant prices)

World Developed Developing

Military expenditures 2 8 2 3 ii 9 Armed forces 19 O 0 l i

Total GNP 4 9 4 8 j 7 Population 2 1 10 2) Civilian GNP per capita 30 4 0 1 1

GNP le6~ military expenditure

Other Public Expenditures

A comparison of world military expenditures with other pnblic expenditures such as public education public health and foreign economic assistance is set forth ill chart III (page 3) Reshygional comparisons are shown ill rhart V and national data may be found in statistical tables II and III Comprehensive data on private expendishytures on these civilian programs are not avail-

SOUTH ASIA

5

Chart VI

MILITARY EXPENDITURES AND ARMED FORCES 1964 amp 1968

80

1964 1968 60 6Expenditures (b j I 5)

~ ~ Forces (million men) shy c-0 QJ-0

EE c

0

~ c ~ 0

ii5

20

EUROPE FAR EAST

2

AFRICA OCEANIA

able See table II footnotes a and 4 for available data on private spending in individual countries

Manpower

Following a steady upward trend between 1964 and 1968 the number of men under arms began to decline in 1969 and 1970 At year-end total armed forces numbered an estimated 23 million about 05 million fewer than at the 1968 peak although still more than 2 million higher than in 1964

Chart VI shows the large numbers of active duty forces belonging to two of the seven geoshygraphic regions In 1968 almost 16 million or two-thirds of the men under arms were in the forces of European and Far Eastern countries North America ranked next with 36 million under arms and the Ncar East next with 18 million All regions increased forces between 1964 and 1968 the largest rise in absolute numbers being in the Far East

Both developing and developed countries havo increased military expenditures more rapidly than personnel The trend is to larger outlays per man in uniform even when allowance is made for price rises This rate of course varies widely among individual countries Chart VIII (page 31) showing several indicators for the 10 major military powers illustrates the range in expendishytures per man in uniform

In addition to the men and women serving directly in the armed forces military-related emshyployment remained high particularly in the inshydustrialized countries In Europe as a whole manshypower in the armed forces and in industries and trades related to military requirements was estishymated at almost 10 percent of the economically active population Worldwide manpower in the armed forces and in military-related employment in 1968 was close to 60 million a number equaling the total population of West Germany

6

418-790 0

DEFINITIONS OF TERMS

Gross National Product (GNP) represents an economys total output of goods and services valued at current market prices paid by the ultimate COIlsumer

JiilitarJ Expenditures are current and capital expenditures to meet the needs of the armed forces including expenditures of national defense agencies for military programs expenditures for the military components of such mLxed activities as atomic energy space ami research and development military assistance to foreign countries and expenditures on paramilitary forces where they contribute subshystantially to a countrys military capabilities

Foreign Economic Aid Reeeited by developing countries comprises official bilateral grants and loans (gross of repayments) disbursed by Development Assistance CommIttee (DAC) countries and net aid received from multilateral agencies (Aid received from Communist countnes is shmvn in the world total but is not included in country or regional totals) Aid given by DAC countries includes official bilateral aid and net contributions to multilateral agencies Aid given by Communist countries represents deliveries to non-Comshymunist developing countries only Aid from private sources and milishytary assistance are not included

Public Education Expenditures include current and capital expendishytures for preschool primary secondary and university-level educashytion Wherever possible expenditures by all levels of government are covered Private spending is not included

PIblie Health Etpenditlfs represent current expenditures (and whershyever possible capital expenditures) by all levels of government for the provision of medical services Private spending is not included

Armed Forces refer to military personnel actually on duty including paramilitary forces where these forces contribute substantially to 11

countrys military capabilities Reserve forces are not included

DeulopinJ OOlntrie~ 93 in number are the countries listed under Latin America the Far East except Japan South Asia and the Near East and Africa except the Republic of South Africa and also include in Europe Albania Bulgaria Greece Portugal Spain Turkey and Yugoslavia

Dueloped COllntric) 27 in number are the countries listld under North America Oceania European NATO except Greece Portugal and Turkey the Varsaw Pact except Bulgaria and include Austria Ireland Finland Sweden Switzerland Japan and South Africa

For further discussion of terms as used in this report ee Statistical Notes page 32

- 71 - 2 7

STATlSTICAL TABLES

Table I presents a summary of recent trends in two key indicators military expenditures and GNP by major groups of countries In order to provide as current a picture as present statistical resources permit estimates for 1969 and 1970 are included However since national data for the latter years are preliminary and incomplete these estimates are subject to revision The data in constant 1968 dollars are approximate estimates based on the use of average price and exchange rate adjustment factors for groups of countries and do not reflect adjustments by individual country

Table II is the basic table showing a variety of data on each of 120 individual countries in 1968

the latest year for which data are available on a worldwide basis Table III shovs some of these same data expressed on a per capita basis Hisshytorical trends by country and year 1964-68 are presented in table IV (military expenditures and GNP) and table V (armed forces)

Table VI ranks the first 30 countries of the world in terms of six main factors of military and economic strength

Chart VII RELATIVE BURDEN OF MILITARY EXPENDITURES 1968

ll Z G LI o tf CIl laquo CIl lLJ 0 gt l-e z lLJ ll X lLJ

gtshy0 laquo IshyJ E

OVER 10

5-10

~------

2-5

---~~-

1-2

UNDER 1

UNDER $100middot

1~0$

BURMA

CHAO CONGO

KlNSUA5A DAHOMEY ETHiOP(A HIIII INDIA INOllNJSIAsbt1Ju

REPUBliC UGANOA

AfGflANISTAN MAll tANZANIA u~PEflOtTil

~ -~

tfALAN1 NEPAL NIGet

$100-199

UNITED AS

R9II1JIIC YIETNAM

NORTH VIETtiAM

IEPU911COF

CAMBQI)IA CHINA

MAINLANO

BOLIVIA CAMEROON GIJINEA (ORA

REPfBtlC OF MAIIRUANIA PAKISTAN SUIAti TIAlIANO YEMEN

CENTRAL AFRICAN REPIlBlIC

KENVil MAUGASY

RtII~LlC NERIA TOGO

CEYLON SIERRA LEDflE

GROSS NATIONAL PRODUCT PER CAPITA

$200-299 $300-499 $500-999 $1000-1999 i $2000-2999 OVER$3000

cmNA SAUDI ARABIA ISRAEl REItf811COF

IRAQ IJORDAN

KOREA NORTH

___ f -------- shy--~------

UlAN IALBANIA CUBA POLAND UNITED SYRIMtARAB PORTUGAL USSR STATES

REPUBLIC UNITED KINGDOM

ALGERIA BRAZIL CHILE BULGARIA AUSTRALIA CANADA CONGO LEBAtiON GREECE CZECHOmiddot BElGIUM KUWAIT

BRAZllVILLE MALAYSIA SOUlli AFRICA SLOVAKIA DENMARK SWEDEN MM1NICtN MONGOLIA REPUBLIC OF GERMANY EAST FRANCE

I BUe fRU SfAIN HUNGARY GERMANY GHANA TURKEY VENEZUElA ITALY WEST MOROCCO YUGOSLAVIA NETHERLANDS NORWAY

ROMANIA SWITZERLAND

___ shy _-shy --------COLOMelA QABON ARGENTINA AUSTRIA LUXEMBOURG ECUADOR IVORY COAST CYIRUS FINLAND ElSALVA[)OR IllCARIGUA URUGUAY LIBYA GUATEMALA ZAMBIA NEW ZEALAND HONDURAS lIIiiRIA PARAGUAY PHilI PPI NES RHODpoundSIA

$OUTHERN SENEGAL nJfUSIA

-~------ shyCOSTA RICA Msueo IRELAND ICELANO GUYANA PANAMA JAPAN JAMAICA TRINIDAD amp

I TOBAGO

I

C_~1____l1li11II1II_________111l1li_______IIII_I_UIIIIJ_IIIIIJIIIIbull __IIIII11IIIIIIII1IIIIIIII1III11III1I1I11i11111lflllll1illliililil_-__

8

TABLE I-SUMMARY TRENDS IN MILITARY EXPENDITURES AND GNP 1964-70

Military Expenditures Gross National Product

1964 1965 1966 1967 1968 1969 1970 1964 1965 1966 1967 1968 1969 1970 est est est est

TOTAL

(Billions of Current Dollars)

WORLD 140 144 161 180 191 199 204 1936 2106 2301 2464 2685 2936 3188 Developed 125 127 143 160 169 175 177 1603 1734 1907 2048 2235 2421 2625 Developing _ 15 17 18 20 22 24 27 333 372 394 416 450 515 563

NATO __ _ 73 74 86 100 105 106 103 1073 1165 1268 1352 1462 1587 l681 Warsaw Pact 49 51 54 57 61 66 71 397 428 466 506 553 593 655 Other _ 18 19 21 23 25 27 30 466 513 567 606 670 756 852

811110ns of Constantl968 Dollars) (

WORLDbullbullbull _bullbullbullbullbullbullbull 158 159 172 188 191 192 186 22112 2325 2452 25711 2685 2830 2940 Developedbullbullbullbullbullbullbullbullbull _bullbull 141 141 154 168 169 169 162 1838 1936 2047 2148 2235 2346 2431 Devl1lopingbull __ ____ ______ bull____ 17 18 18 20 22 23 24 364 389 405 422 4511 484 509

NATObullbullbullbullbull __ bullbullbullbullbullbullbullbull __ 83 82 92 105 105 102 94 1231 1301 1360 1418 1462 1539 1558 Warsaw PacL__ ________ bull__ 55 56 58 59 61 63 64 446 472 501 526 553 566 594 Other__ ____ bull ________ bull __ bull __ 20 21 22 24 25 27 28 525 552 591 626 670 725 788

PER CAPITA

(Current Dollars)

WORLD __ 43 44 48 52 54 56 56 599 637 682 716 765 820 873 Developed _ ___ 134 135 151 167 174 179 180 1725 1 845 2009 2126 2310 2479 2666 Deyeloping __ 7 7 9 10 145 157 163 168 177 198 211

NATO _ 145 146 168 193 201 201 192 2139 2295 2469 2607 2792 3003 3151 Warsaw Pact 151 153 162 169 180 192 205 1213 1292 1398 1501 1626 1730 1897 Other __ ____ 7 8 9 9 10 11 194 208 224 235 253 279 307

(Comltanll968 Dollars)

WORlD____ __ bull _bull _____ bullbull ______ 49 48 51 55 54 54 51 682 703 727 747 765 790 805 Oeveloped ______ bullbull __ __ __ _____ bullbull 152 150 162 175 174 173 164 1978 2060 2157 2230 2310 2402 2469 Developlnllbull __ _____ __ bull ______ 7 8 8 8 9 9 9 158 165 167 170 177 186 191

NATO bullbull _ __ __ bull____________ _ bull ___ bull __ 165 162 180 202 201 194 177 2455 2563 2648 2734 2792 2911 2921 Warsaw PacL ________ ___________ 170 169 174 176 180 183 186 1362 1425 1502 1562 1626 1 652 1718 other _ ______ _____ __ 8 8 9 9 9 10 10 219 224 234 242 253 268 284

9

----

___

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968 [I n current dollars)

Relative burden Other public expend itures Armed forces

GrossMilitary ForcesforeignPopu- Militarynationalexpend-

MilitaryArmedeconomic aidPublic Publicexpend- GNPproductitures lation expend-health 14 forcesper educashyitures as

(per iturestion 23percent capita thou- per manReceived Givenof GNP sand

(thoushy popushy(million (million(million(million(dolshy(million(million (dollars)lation)sands)dollars) dollars)dollars)lars) dollars)dollars) (millions) ()dollars)

SUMMARY

WORLD TOT AL ---- Developed DEvEloping ----- shy

NORTH AMERICAmiddot - - - ---~ - shy

EUROPL Developed Developing

LATIN AMERiCAmiddotmiddot shy ~ --~

FAR EASL Developed - -_ - ~ ~

Developing_

SOUTH ASiA --

NEAR EAST _ - - ~ ~ ~

AFRICA - - - - _ shyDeveloped - - shy

~ ~ shy

_ -~ Developing

OCEANIA

WORLD TOTAL __ ____

NORTH AMERICA_ __ United Statesmiddot __ Canadamiddotbull _ __

EUROPL

NATO European Belgium __ __ Denmark France Germany WesP _____

Greece Icelandmiddot _ Italy __ Luxembourg Netherlands __

See footnotes at end 01 table

65521 60769 4752

23788

37051 35552 1499

1364

889 313 576

403

412

693 195 498

921

86387382

~ 8541 7382 97

shy 4282

576 3353 ~ 3306

47

1410

576

~

1551 846 796-50

1721

350

1324

1551

~

I 324

shy 157

23819 7 10973 II 12846 5

3602 16

8612 12 6986 II 1626 14

1153 4

7161 6 250 2

6911 6

1752 3

993 11 i

449 2 38 2

411 2

i 97 7 I

I

800 15381 170

2287o

1008 12002 1872

1938

1618 4584 I 573

1230

2921

2457 9368 1818

10866

190733 168779 21954

82379

86888 83844 3044

2235

12018 1146

10872

2155

2901

1103 356 747

1054

190733

82379 80596 I 783

86888

22668 602 345

6118 5278

367

2245

90 I

2685006 2234940

450066

931800

1185000 1115700

69300

113551

281335 141 920 139415

62090

29594

50130 14020 36 110

31500

2685006

931800 865700 66 100

1185000

529900 20700 12400

126600 132700

7600 500

74800 800

25 200

35091 9675

25416

221 9

7256 6106 1150

2617

12338 10LO

11327

6892

91 5

2708 192

2516

148

I

35091

221 9 201 2 208

7256

I 3016 I

96 50

499 602

I

88

21 528

3 127 1

71 72 49

118

73 75 44

20

43 8

78

35

98

22 25 21

33

765 2310

177

4199

1633 1827

603

434

228 1404

123

90

324

185 731 144

2131 i

BY COUNTRY

611

118 93 27

73

43 29 28 48 40

48

30 10 36

7651

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 I 418 2381 I 978

130172 117313 12859

50815

60318 58745 1573

2567

11138 6000 5138

1324

1085

1622 450

1172

1303

130172

50815 46400 4415

60318

17883 893 600

3354 3863

157 12

2730 29

1214

65521 7 382 1

J23788 4282 I

21 382 4 048 1 2406 234

8008

22870 23027 17480

100898612 12

7491 99

103026 10 6081

46 7500 505

9 12 115

486 10

108608

18 2280161

510244~ t 8000

129 i 10 3

7023

37051

15327 530 670 292

6874

middot90 5

696 -20 973

3353576

2829

-I 93 313

29 980 755 i

72

257

~I 139

10

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued I n current dollars]

Relative burden i Other public expenditures 1

Armed lorces

I---I--~-~I----Imiddot ----------shyMilitary Gross Popushy Military Foreign Forces i

Ituresexpendmiddot national

product lation expend GNP Public Public economic aid Armed Military itures as per educa- health 24 bull lorces Iexpend-percent capita tlon 3 1 (per itures 01 GNP Received Given thoumiddot per man

sand) (million (million (dolshy (million (million (million (million (thou- popumiddotdollars) dollars) (millions) () lars) dollars) dollars) dollars) dollars) I sands) lalion) I (dollars)

BY COUNTRY~Continued

NATO-Continued Norway Portugal _ Turkey United Kindgom

322 359 573

5545

9 000 5000

11600 103000

38 95

335 553

36 72 49 54

2357 528 346

1863

403 57

321 4450

180 79

139 4779

241

24 47

505

35 183 514 427

9 19 15 8

9200 1 962 1115

12986

NATO Total 105047 1461700 5235 72 2792 68698 39117 313 7 III 6628 13 15849

Warsaw PacL Bulgaria __ Czechoslovakia _ Germany East __ ___ Hungary _____ __

61 100 300

1 360 1 450

340

553200 9100

28400 30800 13800

3402 84

144 171 103

(7-9) 33 48 47 25

1626 1083 1972 1801 1340

38604 367

1093 I 031

580

18281 272 982 792 339

400

100

4783 173 265 196 l37

14 21 18 II 13

12774 1734 5132 7398 2482

Poland__ ____ __ __ _ Romania __ Soviet Union

1950 700

55000

37400 20700

413000

323 197

2380

521158 34 1051

(8-10) 1735

1643 890

33000

1396 600

13900 300

319 223

3470

10 II 15

6113 3139

15850

Other European Albania ___ Austria _ Finland _ _ __ _ Ireland _

3120 76

150 156

27

101900 800

11400 8 000 3 000

838 20 74 47 29

31 1095

13 2 a 9

I 216 400

1551 1706 1 031

3831 70

402 585 110

3443 30 567 344

ll4

263 124

31

803 51

50 39

10

10 26 7 8 3

3885 1490 3 000 4000 2700

Spain _ Sweden_ _ Switzerland _ Yugoslavia _

913 977 365 456

25200 26300 17200 10000

3261 79 61

202

36 37 21 46

773 3322 2798

496

290 1486

577 3ll

403 1 070

429 486

181

82

72 21

305 78 31

239

91 10 5

12

2993 u 12526 11 11774

1908

LATIN AMERICA __ Argentina _ Bolivia _ BraziL_ Chile _ Colombia _

2235 380 17

651 127 98

113557 171l1

786 27353 5670 5638

261 7 236 44

802 92

198

20 22 22 24 22 17

434 725 177 310 614 284

2567 I 346

25 169 205 111

1364 26 3

81 155

96

1410 15 52

319 220 170

1153 8144

18 225 63 55

4 6 4 3 7

1938 2639

944 2893 2016 1782

Cost Ricbull _ _ Cuba bullbull ___ __ _ Dominican Republic_ _ Ecuadoc ___ EI Salvador

300 30 26 10

734 bull 5 000

1169 1475

930

16 76 4 a 57 32

106 a 26 18 11

449 658 295 259 290

33 281

26 35 24

20 60 -14

6 14

15 1

54 28 10

394 18 17 6

52 5 3 2

761 1667 1529 1667

Guatemala _ __ Guyana _ _ HaitL __ Honduras _ Jamaica _

16 2

1500 215 326 621 951

5 a 7

50 25 L9

11 9

21 14 5

299 303

65 245 497

27 8 3

17 22

34 8 4 7

17

24 16 6

15 28

9 1 5

2 1 1 2 1

1778 2000 1 400 1800 2500

Mexico_ Nicaragua __ _ Panama _ __ Paraguay _ Peru ____

184 10 1

10 132

26310 697 826 511

4287

473 19 14 22

128

7 14 1

20 31

557 374 602 229 336

504 16 33 9

151

316 5

16 3

51

210 19 19 23 57

70 i6

13 50

6

2629 1667

769 2640

Trinidad amp Tobago __ Uruguay_ bull Venezuela

3 23

194

748 1589 9110

10 28 97

4 14 21

726 564 941

19 13

396

10 21 78

1 13

38

3 000 1 769 5105

See footnotes at end of table

11

TABLE It-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued (I n current dollars) 1

Military expendshy

itures

Gross national product

Popushylation

Relative burden Other public expenditures

I

I Public

ForeignMilitary GNP Public economic aid S expendshy per I educashyitures as I capita 1 tion Zbull1 I health

Armed forces

I 1Forces Armed 1 Military forces 1 flfer expend-

percent I Received Given 1 taumiddot itures of GNP 1 sand I per man

(million (million I

(dol- (million (million (million (million I (thou- popushy1dollars) dollars) I(millions) () lars)

dollars) dollars) 1 dollars) dollars) I sands) lation) (dollars)

I I

__------_--

FAR EAST Burma Cambodia China Mainland China Republic 01 Indonesia

Japan+ Korea North Korea Republic oL Laos Malaysia

Mongolia Philippines Thailand Vietnam North Vietnam Republic of

SOUTH ASiA Afghanista n Ceylon India NepaL Pakistan

NEAR EAST Cyprus Iran Iraq I srae __ Jordan I

Kuwait I lebanon Saudi Arabia Syrian Arab Republic -

Yemen

United Arab Republic

AFRICA 0shy

Algeria Cameroon Cenlral African Republic Chad Congo (Brazzaville)

Congo (Kinshasa) Dahomey __ I Ethiopia Gabon Ghana _

Guinea __ Ivory Coast Kenya liberia libya

See footnotes at end of table

middot20 116 157

550 613

2155 16 13

1603 5

518

2901 I 6

530

280 I 672 105

63 45 I

383 i 137 I 14 I 666 I

1103 1

100 I 19 I 3

8 1

6 I

44 I 4

41 I 3

44 i

14 I 17 I 15 I 3 I

37 I

575 I 7276 1 5512

2300 3050

62090 1370 1781

43 000 800

15139

29594 1 438

8 020 I 2400 i 4042

575 i

2220 i

1 424 2200 I 1425

550

5740

50130 3365

800 200 270 174

1330 182

1534 200

1 994

669 1242 1330

254 2965

BY COUNTRY--Continued

12338 264 66

806 a 141

1137

43 57 66

F 8 3 101 29

4 000 99

100

101 1 134 305

28 103

8 10180

41 168 32

1 404 I 261 188 I 721

326 I

6000 100 110

7 140

12 359 351 193 174

1[gt 35 16 28

10 239 20 I

479 I 203 157 i 119

175 I

198 168 91

32

6892 161 120

5271 107

1234

35 12 7

37 6

34

90 1 85 I

149

82 I 75

123 I

1324 6

66 1 130

4 118

91 5 6

27 I 86 27 2 I

98 14 66

117 166 183

324 704 296 278

1472 I 274

1085 9

182 133 225

19

5 27 46 57 5 a

28 32

174 96

) 2 5

4111 519 478 250 110

87 34

107 54 3

31 7 I 6 181 232

2708 129 56 15 35 9

22 3 a 24

10 1 5 10 3 a to 34

185 260 43 134 78

200

1622 155 23 7 8

111

17 a 26

242 5

84

33 lfr 2 2

27 15 22

78

711 63 I

417

238 1

69 I 7

15 10 67

38 4 a

102 11 18

21 4 11 12 12

174 312 130 225

1644

37 60 22 7

74

313 I 11 I II 2

123

2

23 29

18 24

403 9 46

283 5

60

412 I 4 1

135 I 28 57

44 8

33 7

8

80

693 59 11 3

bull 4 6

28 I 5 1

1~ I 16

17 10 3

37

11

95 333

314 60 50

139 79

448

1721 30 48

1107 2

534

350 I

132 14 70 48

14 13

-15 11 1

61

1324 117

45 18 22 42

67 18 50 11 87

9 49 61 23 6

50

796

i I I i

s 33 47

167 447 735

1752 70 10

11133 1

15 1

bull 524 1

I 99i I

bull 225 I 992 1

771 55 I

I 7

12 956 69

8

bull 391

449 58 5

1 1 2 I

I 31 2 I

45 i 1 1

15 i

4 3-I 4

I 8 I

2 I 31 20 I 34 6

28

5 23

42

3 4 i 2 i I I 4 I

I 11 2 i 8

II 28 26 I

13 4

12 1

12 1

2 I

12 I 2 I 4 I 1 I 1

4 1 4 I

1678 775 774

2419 805 696

4584 1 534

379 358

1 895

606 2468

940 1 230

834

1230 229

1300 1415

333 989

2921 6000 2356 3043 8727 1 909

9 000 3750 6839 1986 1750

1703

2457 1724 3800 3 000 8 000 3 000

1419 2 000

911 3000 2933

2800 4250 5 000

750 4625

12

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968-Continued [In current dollarsjt

I Relative burden I Other public expenditures I Armed forcesI

IMilitary ForeignGross expend- national Popu- Military GNP Public economic aid S Forces MilitaryIArmeditures product lation expend- per educa- Public expendshy

tion 23 (perhealth 2 ituresitures as capita forces thoupercent per manReceived Given

of GNP sand (million (million (million (million (million (thoushy(dolshy (million popushydollars) dollars) (millions) lars) dollars) dollars) dollars) dollars) sands) lation)

I(dollars)()

I

BY COUNTRY -Continued

AFRICA-Continued Malagasy Republic MalawL __ MaIL __ Mauritania Morocco_

Niger Nigeria____ Rhodesia Southern__ __ _ Senegal ____ Sierra leone __ __

Somali Republic __ __ __ South Africa Republic of Sudan __ __ Tanzania Togo ____

Tunisia Ugandabull Upper Volta~ __ Zambia ______

OCEANIA ____ Australia __ ___ New Zealand

13 780 I 247 5 264 8 172

76 2981

342 91 3

6000 21 1138 15 827

340

8 170 356 14020

74 1560 13 943 I 121

183 213 I 14 471048 16 994 81 -5 5 I257 20 1325 41

1054 31500 148 26600 120

9~ I 4900 I 28 I

70 43 48 11

146

38 535 49 38 25

27 192 148

Oeveloped country or region (Country without asterisk is developing) All countries in region are developing Rough ACDA estimate

None or negligible I For most countries conversion into US dollars Is at official par value exchange

rates as rounded by AID For all Communist and several developing countries esllmated purchaSing power panties are used (See Conversion Rates page 35)

Due to dilferences in concepls coverage and reliability data on public education and health expenditures do not permit accurate comparisons between countries or in some cases between years for the same country

3 Public expendHures on education in 1968 are ACDA estimates based primarily on dala for 1967 or earlier (See Educalion page 34)

Informallon on educational expenditures which are made outside of governmentbudgets is not available on a worldwide baSis The rellive importance of these expenditures vanes sharply from co~nlry to country In the United States private expe~dltures In 1968 were $118 billion or 20 of the total Private expendilures conslltut~d the follOWing percentages of total national expenditures In 1967 (or Ih indicated year) according to UNESCO estimates

EI Salvador ______ Sudan

Percent Percent Argenlina (1966) __ __ Australia ____ __ Canada ____ __ Chile (1966) bull China Republic of ~_ poundcuador bull __ __ __ __

51 38 23 28 29 34

Israel (I966)~ __ Japan _____ Jordan __Kenya __ _ Malawi _ __ Philippines_

26 20 14 70 15 24

23 __ ___ __ 27 Bhiopia (1966) 47 Venezuela __ __ _______ __ 27Greece ________ __ 39 Vietnam Republic of (1965) __ 58Guatemala _______ __ __ 25 Zambia (1966) __ __ 73India __ 44

In Communist countrie~ extramiddotbudgetary expenditures are also significan For example according 10 offiCial data education expenditures by state cooperative and trade union enterprises and collective farms in the Soviet Union make up about 13 percent of the total parental payments to childrens institutions and schools mayconstitute another 6 percent

17 III 49 15 44 4 58 II 4 26

19 55 10 4 20 47 154 4 8 25 204 106 40 124

9

I

90 I 5 29 15 112 132 [ 83 108 18 230 42 I 13 -3 18 220 29 14 48 9 137 9 3 111

47 62 3 I 26 I

25 731 450 195 47 106 69 22 I 29 14 78 30 13 34 14 120 4 2 13

13 16

224 122

i 57 I

15

I 15

14 I 88 20

lO 1 9 50 i 6 I 23 15 326

1

I 20 I e 18 51

I

33 2131 1 1303 I 921 157 36 18

2211 1 781

i

i 1132

171 697 224 i

157

I 4 I I

4 I

62

I 70 I 5 5 i

2

8 38 24 4 1

2 I 2 I 3 i

I I

97 84 shy13 I

4

3250 1000 1250 8000 1226

3000 1300 4200 3000 1500

1000 9368 3083 3250 3000

609 2667 2500 6667

10866 11524 6615

Public expenditures on health in 1968 are based in part on data for earlier years(See Health page 35)

As 10 educational expenditures Ihe portion of tolal health expenditures which is exlramiddotbudgetary varies greatly from country to country Scattered information suggests that on average Ihe private portion of health expenditures may be higherthan the private portion of education expenditures In the United States in 1968 private health expenditures amounted to $352 billion or 62 percent of total health expenditures

In Communist countries extramiddotbudgetary health expenditures are made by state cooperative and trade unum enterprises anj collective farms as well as households In the Soviet Union for example they constitute about 20 percent of total health expenditures according to official sources

Economic aid given by Communist countries to nonmiddotCommunist counlries is included in the world total of aid received It is not distributed by individual recipientcounlries or regions however as accurate data on such distribution are no available (See Foreign Economic Aid page 34_)

Military expenditures and GNP are not fully comparable due to the use of different dollar conversion rates lor the two variables in the Soviet Union (see footnote 9)Using the more valid ralios shown in parentheses for the Soviet Union and Ihe Warsaw Pact total the ratio for the world is eslimated to be 6-7 percent and for Europe 5-6 percent

1 Ineludes West Berlin Includes paramililary as well as regular forces The implied relationship between dollar amounts of Soviet GNP and military

expenditures (or GNP and public expenditures on educalion and health) is not valid due 10 the use of di~erent types of conversion rates lor GNP and particular sectors It is estimated Ihat the actual ratio of military expenditures to GNP would fall somemiddot where within the range indicated in parentheses the lower part of the range reflecting a comparison of military expenditures and GNP in faclormiddoteost ruble values and the upper estimate representing dollar values converted on a comparable basis (See Conversion Rates page 35)

10 Since either or both military expenditures and GNP estimates are approximations the resulting ratio should be viewed with particular caution

II For Sweden SWitzerland and Israel the high rate of military expendilures per man rellects small standing forces with a capability for extremely rapid mobilization of large reserve forces

13

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 3: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

WORLD MILITARY EXPENDITURES 1970

and Related Data

for 120 Countries

CONTENTS Page

Highlights of the Data 1

Charts

I Military expenditures 1964-70 1 II Military expenditures and GNP estimated III

constant prices indexes 1964-70 2 III World military and other public expenditures

1964 and 1968 3 IV Shares of world total in 1968 4 V Per capita expenditures for military education

and health by region 1968 5 VI Military expenditures and armed forces by region

1964 and 1968 6 VII Relative burden of military expenditures 1968 8

VIII Ten major military powers 1968 31

Definitions of Terms 7

Statistical Tables 8

Tables

I Summary trends in military expenditures and GNP 1964-70 9

II Military expenditures and relatltd unta 1968 10 III Per capita military expenditures and related data

1968 14 IV IIlitary expenditures and GNP 1964-68 18 V Armed forces 1964-68 26

VI Military and economic ranking of countries 1968 30

Statistical Notes 32

ii

I II lUll b t I n

HIGHLIGHTS OF THE DATA

This fifth annual survey of m-ilitary expenditures and related data by the Us Arms Control and Disarmament Agency (ACDA) covers 1969 and 1970 insofar as prelimnary information permit rough estimates on a regional or global basis The estimates jor the latest years as well as the detailed national data for 1964-68 are subject to qualifications which could affect both trend and crrmparative levels They should be regarded as reasonable approxishymations rather than as precise statistical indicators

Summary Chart I

World military expenditures inflated by further increases in prices reached a new peak in 1970 MILITARYLast years vorld total reached an estimated 204

EXPENDITURES$204000000000 the equivalent in dollar value of Bittion dollars current prices a years income produced by the 1800000000 people in the poorer half of the worlds population

In actual expenditures the increase in world military spcnding over the previous year wos the smallest in recent years (chart I) In terms of

World Total constant dollars ie had prices been unchanged there would have been a slight declillo--a hopeful Developed

countriessign that the sharp uptrend of the 1960s has been blunted (chart II) Expressed as a ratio to GNP military spending was slightly lower for the thinl ~--- 103

year in a 10- In 1970 these outlays took 64 percent of the world product

NATO _In the 6 years since the first world survey 71_ military outlays in current dollars htye risen _ _0 almost 50 percent HOveyer about three-fifths of ---shyWarsaw Pact this increase reflects price inflation If prices h11lt1 been unchanged military expenditures of 1970 would have exceeded those of 1964 by roughly 20 bullOther bullbull - 27bullbull

30

------shyDeveloping Figures in current dollars reflect the prices and exshy countries

change rates of the respective years to which they apply 1964196519661967196B196if1970middot Figures in constant dollars have been adjusted for changes

Calendar years in both prices and exchange rates to show real values middotEstlmated

in terms of a single year (See discussion of prices page 36)

177

CharI II MILITARY EXPENDITURES AND GNP

ESTIMATED IN CONSTANT PRICES

Index 1964 == 100 140r-1r~----r--~~

World Wide

bull 130 GNP total

--- shyMilitary 7 expendilures shy

120 bullbullbullbullbullbullbullbull ~

p~ t

110 Ji t _Y--GNP per capita

I Plloyen---------I-L----l

1964 65 r6i 67 68 69 70 140~_r--r_-r--T--r~

Developed Countries

shy130

GNP total I- 1P

120 ~- dJmiddot-1---bullbullbullbull

bull J

GNP per shy-t ----capita110 l--Military1 p expendItures

~ 10

1964 65 66 67 68 69 70 150r-1r---~-r~r-

d p

Developing Countries shy

140 1 Military l f shyexpenditures bullbullbullbullbull

130 ~I shy

hNP~total120

~

bull 1 I

110 ~GNP per capita

100~~~~~~--~~

1964 65 66 67 68 69 70 Estimated

percent Thus the 20 percent rise measures the real or physical increase in military effort since 1964 Some of the increase is reflected in the increased numbers of personnel in the armed forces which are up more than 10 percent some in investment in higher quality increasingly sophisticated military equipment The rise in expenditures includes strategic forces as well as the conventioIl11 forces which represent four-fifths of world military spending

The current survey produces no evidence that a widesprcad shift from military to civilian uses of resources has begun Nor docs the slower rate of increase in total military expenditures in the Pl1st 2 years reflect a worldwide tendency to restrict 8uch outlays In the vast majority of countries for which recent information is available there was a further rise in military budgets in current prices in 1970 While NATO spending went down largely as 11 result of a decrease in US defense expenditures the total for developed countries as a whole did not decline In developing countries as a group military expenditures again moved higher Thu8 developing countries continued as they had in the years preceding to inerease their share of world military outlays devoting to military programs funds that could have been allocated to economic development

More public funds continued to flow into milishytary programs than into public education or public health pIognuns for the yorIds pOJlulation of 36 billioll (chart III) In developing countries for example the increase in military spending in the period since 1964 represented the equivalent of 3 years expenditures on public education for the billion school-age children in those countries

The text below amplifies some of these summary points and provides additional information on global and regional trends and comparisons (See table I page 9) National datn are not compared here but may be found for 1968 nnd earlier years ill tables II through VI page8 10 to 30

The Trend of Military Expenditures

Military expenditures prodde a useful baromshyeter of the momentum of the arms race Howshyever th( yorId totnl like lll aHmgps may

The criteria llsed in classifying countries as developshying arc described in the Statistical ~otes page 32

2

Chart III

WORLO MILITARY AND OTHER PUBUC EXPENDITURES

1964 amp 1968 --------------------------------200

Billion current dollars

1964 -r50

1J68

~--~------~--oo

~----50

Military Education Health Foreign Economic

Aid

conceal geographic and other changes which are of major importance in gauging trends

Chart I shows trends in military expenditures in current prices for the ~odd (vertical hite bllrs) and for each of the major eategories of countries for whicb projections through 1970 are attempted It should be noted that the categories of countries shown on the charts are overlapping lVIost vVarshysaw Pact and NATO countries and some other countries are represented in the developed group Developed and developing countries together make up the world total as do KATO middotWnrSlW Pllct and the other category

The chart shows the NATO line in current prices declining after a rnpid rise from 1965 to 1968 Although the Warsaw Pact line continues on a slIlrp llI)nlld slant developed conntrirs as n whole hardly changed sp(1nding levels bctween 1969 Ilnd 1970

Chart II shows trends in military expenditures after allowance is made for tho effect of price ris(ls

(Correction for price changes on a worldwide basis is necessarily rough) Expressed in constant dollars military (lxpeuditnr(ls of developed COUllshy

tries are estimated to have leveled off between 1967 and 1969 and to have declined in 1970 led by a downturn in the NATO totnl This is the first such drop since ACDAs odd survey began in 1964 and a significant one in overall effect since expenditures of the developed conn tries acshycount for approximately 90 percent of world military spending

The trends in developing conntries as a group are rather different In current and even in constant prices the recent rapid increase of military spending in these countries has continll(ld Within this classification of countries however major differences in military expenditure trends are evident The rate of expnnsion of expendishytures is by far the shnrpest in the Nem East Smaller increases have occurred in the Fill East LnJin America and Africa In South Asia spending rates have ehanged relatively little sinee 1966

As chart II indieates in the developing countries as a whole the rate of in(Teast in military spending continues to outstrip the adnll1ce in GXP at tlw expense of populations hose an~llg() illeoIlw p(lr eapita is still barely $200 a year

Comparisons With Economic Growth

Since 1968 when th(l advance in wodd military expenditures began to moderate tho growth rute of world GNP hus been faster than the onrall rise in military spending (see chart II) As it

cons(lquence the shale of world GNP going to military programs has declined from 11 high of 71 p(lrcent in 1967 to 64 percent in 1970

This chango suggests that oHrall the military burden has beOul1 to lessen somewhat in relation

b

to the yorld economy On the oth~r hand dlllllg(ls onr time in the ratio of military spending to GNP must be evaluated cautiollsly both as meUSlrs of relative burden and HS indicators of arms l(strnint Economie groyth is JlopU lation-rela ted Unless the civilinn portion of world GNP-till innstm(lnt and consumption componont~-grows with rising population liying standards full Un(ss the eidlian portion adjust(d for tilr popushylation rise (lxpands with rising GNP lidllg stnndnrds hn ( not b(IWfi ted flllly from t h( growth di dd(lld

3

The record for 1970 as compared with 1964 the year of ACDAs first annual Sllvey shows that military eXJlenditures haye absorbod some of this growth diddend although the shure of world GNP that they tnke has diminished The changos expressed in dollar equivalonts are summarized in the table b(low

WORLD GROWTH DIVIDEND 1970 OVER 1964 (Billion dollars)

Increase in GNP in current dollars 1752 of which

price inflation 514 population increment

(valued at 1964 GNP per capitet) 288

Increase in GNP (adjusted for price and popnlation changes) (450)

of which increase in military expenditures 28

Leaving an actual growth dividend for civilian Uses of 422

In 1970 the dollar value of world GNP vas $1252 billion higher than in 1964 Price rises and population growth however accounted for It

major part of this apparent gain in yalue The increase in GKP when higher prices and larger popUlation are considered as $450 billion or only one-third of the apparent increase The increase in world arms spending in constant prices took $28 billion of this dividend J represell ting a larger share of real growth in devol oping thall in develshyoped countrios

As an indicator of arms restraint a downward trond in tho ratio of military expenJitures to GNP

Chart IV

SHARES OF WORLD TOTAL IN 1968

Developed countries Developing countries

Military Exps

Armed Forces

Population

GNP

Puhlic Education

Public Health

o 20 40 60 80 100 Per cent

is not sufficient With 1 rapidly growing oconomy even a declining ratio to GNP can cOllceal un inshytOllsified arms race

Compared with the immediate pre-World War II period military expenditures in 1970 probably took a somewhat smallor share of world GNP HOveeI the yorld economic base has boen so vastly cnlargod that todays share ropresents II

fonrfol(l increase in expenditures ill real terms as compared ith 1937 It is estimated that worldshywide military oxpenditures of 1937 based on a League of Nations study of that prewar yoar totnled about $ljO billion in 1970 prices in contrast to todays $204 billion

Developed and Developing Countries

Poorer countries suffer most from arms races For example military equipment which they proshyduce themselves may tap the high-quality 10shy

sources that are most noedod for investment in eivilian industry ~Iilitary oquipmont bought from abroad may take some foreign exchange that could have helped to modernize tho economy and improve living stawlards

For the past 6 years ACDAs survey shows military expenditures have grown eonsidorably faster ill developing tlum in developed countries The GNP increase in developing economies from 1964 to 1970 expressed in constant prices is substantial but the rate of growth per capita has beon less than that in developod countries

For the dceloping countries 11 calculation of the llnnual growth dividond similar to that shown in the table above for the world total reveals thLt they have devoted to military spending tice llS large a proportion of their GNP growth dividend as havo developed countries whell allowance is made for price increases and the more rapid population growth in the poorer countries Togcthor theso flletors have limited their actual growth dividend for civilian uses to a 6-year gain of only $30 per person In deshyveloped countries by eOlltrast the civilian inshycremen t from 1964 to 1970 was 16 times as mn ch or $469 per person

Chart IV illustrates the end-results of these tlends as of 1968 The 93 developing countries in ACDAs survey lopresented 73 percent of the worlds population but had only 17 percent of

4

Chart V

Dollars PER CAPITA EXPENDITURES FOR400------------------------shy MILITARY EDUCATION AND HEALTH BY REGION 1968

bull Military

bull Public Education

D Public Health Dollars

------------------------------------------------------------200

------------------------------------------------------100

NORTH EUROPE OCEANIA NEAR AMERICA EAST

current world income They accounted for only 7 percent of world public expenditures on henlth care and for 10 percent on education The inshyclusion of international economic assistance would of course add somewhat to the resources available to developing countries but the addition would represent a relatively minor proportion of their GNP All foreign economic aid loans as ell as grants amounts to less than 2 percent of GNP of developing countries

On the other hand the developing areas with their large populations accounted ill 1968 for more than half the 24 million men under arms in the world

While the budgeted military expenditures of the developing countries were only 12 percent of the world total in 1968 this is not the full amount that went into maintaining military forces in these countries Military aid contributions of the major powers are a significant supplement to the military expenditures of developing countries Military aid according to the standard budgetary conshycept of this report is counted among the military expenditures of the donors-not in the recipients military budgets In this respect the expenditure data and chart IV tend to understate the relative military capacity of the developing world

Growth rates recorded since 1964 (see table

FAR EAST LATIN AFRICA AMERICA

below) suggest that developing countries have gradually enlarged their share of world milishytary effort maintaining it rate of increase in pershysonnel in the armed forces as well as in military expenditures considerably larger than that of developed countries Howmer this expunsion of military effort was accompanied by a lowering of their relative economic standing when jlopulnshytion increase is taken into account

AVERAGE ANNUAL GROWTH RATES 1964-70

(Values in cunstant prices)

World Developed Developing

Military expenditures 2 8 2 3 ii 9 Armed forces 19 O 0 l i

Total GNP 4 9 4 8 j 7 Population 2 1 10 2) Civilian GNP per capita 30 4 0 1 1

GNP le6~ military expenditure

Other Public Expenditures

A comparison of world military expenditures with other pnblic expenditures such as public education public health and foreign economic assistance is set forth ill chart III (page 3) Reshygional comparisons are shown ill rhart V and national data may be found in statistical tables II and III Comprehensive data on private expendishytures on these civilian programs are not avail-

SOUTH ASIA

5

Chart VI

MILITARY EXPENDITURES AND ARMED FORCES 1964 amp 1968

80

1964 1968 60 6Expenditures (b j I 5)

~ ~ Forces (million men) shy c-0 QJ-0

EE c

0

~ c ~ 0

ii5

20

EUROPE FAR EAST

2

AFRICA OCEANIA

able See table II footnotes a and 4 for available data on private spending in individual countries

Manpower

Following a steady upward trend between 1964 and 1968 the number of men under arms began to decline in 1969 and 1970 At year-end total armed forces numbered an estimated 23 million about 05 million fewer than at the 1968 peak although still more than 2 million higher than in 1964

Chart VI shows the large numbers of active duty forces belonging to two of the seven geoshygraphic regions In 1968 almost 16 million or two-thirds of the men under arms were in the forces of European and Far Eastern countries North America ranked next with 36 million under arms and the Ncar East next with 18 million All regions increased forces between 1964 and 1968 the largest rise in absolute numbers being in the Far East

Both developing and developed countries havo increased military expenditures more rapidly than personnel The trend is to larger outlays per man in uniform even when allowance is made for price rises This rate of course varies widely among individual countries Chart VIII (page 31) showing several indicators for the 10 major military powers illustrates the range in expendishytures per man in uniform

In addition to the men and women serving directly in the armed forces military-related emshyployment remained high particularly in the inshydustrialized countries In Europe as a whole manshypower in the armed forces and in industries and trades related to military requirements was estishymated at almost 10 percent of the economically active population Worldwide manpower in the armed forces and in military-related employment in 1968 was close to 60 million a number equaling the total population of West Germany

6

418-790 0

DEFINITIONS OF TERMS

Gross National Product (GNP) represents an economys total output of goods and services valued at current market prices paid by the ultimate COIlsumer

JiilitarJ Expenditures are current and capital expenditures to meet the needs of the armed forces including expenditures of national defense agencies for military programs expenditures for the military components of such mLxed activities as atomic energy space ami research and development military assistance to foreign countries and expenditures on paramilitary forces where they contribute subshystantially to a countrys military capabilities

Foreign Economic Aid Reeeited by developing countries comprises official bilateral grants and loans (gross of repayments) disbursed by Development Assistance CommIttee (DAC) countries and net aid received from multilateral agencies (Aid received from Communist countnes is shmvn in the world total but is not included in country or regional totals) Aid given by DAC countries includes official bilateral aid and net contributions to multilateral agencies Aid given by Communist countries represents deliveries to non-Comshymunist developing countries only Aid from private sources and milishytary assistance are not included

Public Education Expenditures include current and capital expendishytures for preschool primary secondary and university-level educashytion Wherever possible expenditures by all levels of government are covered Private spending is not included

PIblie Health Etpenditlfs represent current expenditures (and whershyever possible capital expenditures) by all levels of government for the provision of medical services Private spending is not included

Armed Forces refer to military personnel actually on duty including paramilitary forces where these forces contribute substantially to 11

countrys military capabilities Reserve forces are not included

DeulopinJ OOlntrie~ 93 in number are the countries listed under Latin America the Far East except Japan South Asia and the Near East and Africa except the Republic of South Africa and also include in Europe Albania Bulgaria Greece Portugal Spain Turkey and Yugoslavia

Dueloped COllntric) 27 in number are the countries listld under North America Oceania European NATO except Greece Portugal and Turkey the Varsaw Pact except Bulgaria and include Austria Ireland Finland Sweden Switzerland Japan and South Africa

For further discussion of terms as used in this report ee Statistical Notes page 32

- 71 - 2 7

STATlSTICAL TABLES

Table I presents a summary of recent trends in two key indicators military expenditures and GNP by major groups of countries In order to provide as current a picture as present statistical resources permit estimates for 1969 and 1970 are included However since national data for the latter years are preliminary and incomplete these estimates are subject to revision The data in constant 1968 dollars are approximate estimates based on the use of average price and exchange rate adjustment factors for groups of countries and do not reflect adjustments by individual country

Table II is the basic table showing a variety of data on each of 120 individual countries in 1968

the latest year for which data are available on a worldwide basis Table III shovs some of these same data expressed on a per capita basis Hisshytorical trends by country and year 1964-68 are presented in table IV (military expenditures and GNP) and table V (armed forces)

Table VI ranks the first 30 countries of the world in terms of six main factors of military and economic strength

Chart VII RELATIVE BURDEN OF MILITARY EXPENDITURES 1968

ll Z G LI o tf CIl laquo CIl lLJ 0 gt l-e z lLJ ll X lLJ

gtshy0 laquo IshyJ E

OVER 10

5-10

~------

2-5

---~~-

1-2

UNDER 1

UNDER $100middot

1~0$

BURMA

CHAO CONGO

KlNSUA5A DAHOMEY ETHiOP(A HIIII INDIA INOllNJSIAsbt1Ju

REPUBliC UGANOA

AfGflANISTAN MAll tANZANIA u~PEflOtTil

~ -~

tfALAN1 NEPAL NIGet

$100-199

UNITED AS

R9II1JIIC YIETNAM

NORTH VIETtiAM

IEPU911COF

CAMBQI)IA CHINA

MAINLANO

BOLIVIA CAMEROON GIJINEA (ORA

REPfBtlC OF MAIIRUANIA PAKISTAN SUIAti TIAlIANO YEMEN

CENTRAL AFRICAN REPIlBlIC

KENVil MAUGASY

RtII~LlC NERIA TOGO

CEYLON SIERRA LEDflE

GROSS NATIONAL PRODUCT PER CAPITA

$200-299 $300-499 $500-999 $1000-1999 i $2000-2999 OVER$3000

cmNA SAUDI ARABIA ISRAEl REItf811COF

IRAQ IJORDAN

KOREA NORTH

___ f -------- shy--~------

UlAN IALBANIA CUBA POLAND UNITED SYRIMtARAB PORTUGAL USSR STATES

REPUBLIC UNITED KINGDOM

ALGERIA BRAZIL CHILE BULGARIA AUSTRALIA CANADA CONGO LEBAtiON GREECE CZECHOmiddot BElGIUM KUWAIT

BRAZllVILLE MALAYSIA SOUlli AFRICA SLOVAKIA DENMARK SWEDEN MM1NICtN MONGOLIA REPUBLIC OF GERMANY EAST FRANCE

I BUe fRU SfAIN HUNGARY GERMANY GHANA TURKEY VENEZUElA ITALY WEST MOROCCO YUGOSLAVIA NETHERLANDS NORWAY

ROMANIA SWITZERLAND

___ shy _-shy --------COLOMelA QABON ARGENTINA AUSTRIA LUXEMBOURG ECUADOR IVORY COAST CYIRUS FINLAND ElSALVA[)OR IllCARIGUA URUGUAY LIBYA GUATEMALA ZAMBIA NEW ZEALAND HONDURAS lIIiiRIA PARAGUAY PHilI PPI NES RHODpoundSIA

$OUTHERN SENEGAL nJfUSIA

-~------ shyCOSTA RICA Msueo IRELAND ICELANO GUYANA PANAMA JAPAN JAMAICA TRINIDAD amp

I TOBAGO

I

C_~1____l1li11II1II_________111l1li_______IIII_I_UIIIIJ_IIIIIJIIIIbull __IIIII11IIIIIIII1IIIIIIII1III11III1I1I11i11111lflllll1illliililil_-__

8

TABLE I-SUMMARY TRENDS IN MILITARY EXPENDITURES AND GNP 1964-70

Military Expenditures Gross National Product

1964 1965 1966 1967 1968 1969 1970 1964 1965 1966 1967 1968 1969 1970 est est est est

TOTAL

(Billions of Current Dollars)

WORLD 140 144 161 180 191 199 204 1936 2106 2301 2464 2685 2936 3188 Developed 125 127 143 160 169 175 177 1603 1734 1907 2048 2235 2421 2625 Developing _ 15 17 18 20 22 24 27 333 372 394 416 450 515 563

NATO __ _ 73 74 86 100 105 106 103 1073 1165 1268 1352 1462 1587 l681 Warsaw Pact 49 51 54 57 61 66 71 397 428 466 506 553 593 655 Other _ 18 19 21 23 25 27 30 466 513 567 606 670 756 852

811110ns of Constantl968 Dollars) (

WORLDbullbullbull _bullbullbullbullbullbullbull 158 159 172 188 191 192 186 22112 2325 2452 25711 2685 2830 2940 Developedbullbullbullbullbullbullbullbullbull _bullbull 141 141 154 168 169 169 162 1838 1936 2047 2148 2235 2346 2431 Devl1lopingbull __ ____ ______ bull____ 17 18 18 20 22 23 24 364 389 405 422 4511 484 509

NATObullbullbullbullbull __ bullbullbullbullbullbullbullbull __ 83 82 92 105 105 102 94 1231 1301 1360 1418 1462 1539 1558 Warsaw PacL__ ________ bull__ 55 56 58 59 61 63 64 446 472 501 526 553 566 594 Other__ ____ bull ________ bull __ bull __ 20 21 22 24 25 27 28 525 552 591 626 670 725 788

PER CAPITA

(Current Dollars)

WORLD __ 43 44 48 52 54 56 56 599 637 682 716 765 820 873 Developed _ ___ 134 135 151 167 174 179 180 1725 1 845 2009 2126 2310 2479 2666 Deyeloping __ 7 7 9 10 145 157 163 168 177 198 211

NATO _ 145 146 168 193 201 201 192 2139 2295 2469 2607 2792 3003 3151 Warsaw Pact 151 153 162 169 180 192 205 1213 1292 1398 1501 1626 1730 1897 Other __ ____ 7 8 9 9 10 11 194 208 224 235 253 279 307

(Comltanll968 Dollars)

WORlD____ __ bull _bull _____ bullbull ______ 49 48 51 55 54 54 51 682 703 727 747 765 790 805 Oeveloped ______ bullbull __ __ __ _____ bullbull 152 150 162 175 174 173 164 1978 2060 2157 2230 2310 2402 2469 Developlnllbull __ _____ __ bull ______ 7 8 8 8 9 9 9 158 165 167 170 177 186 191

NATO bullbull _ __ __ bull____________ _ bull ___ bull __ 165 162 180 202 201 194 177 2455 2563 2648 2734 2792 2911 2921 Warsaw PacL ________ ___________ 170 169 174 176 180 183 186 1362 1425 1502 1562 1626 1 652 1718 other _ ______ _____ __ 8 8 9 9 9 10 10 219 224 234 242 253 268 284

9

----

___

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968 [I n current dollars)

Relative burden Other public expend itures Armed forces

GrossMilitary ForcesforeignPopu- Militarynationalexpend-

MilitaryArmedeconomic aidPublic Publicexpend- GNPproductitures lation expend-health 14 forcesper educashyitures as

(per iturestion 23percent capita thou- per manReceived Givenof GNP sand

(thoushy popushy(million (million(million(million(dolshy(million(million (dollars)lation)sands)dollars) dollars)dollars)lars) dollars)dollars) (millions) ()dollars)

SUMMARY

WORLD TOT AL ---- Developed DEvEloping ----- shy

NORTH AMERICAmiddot - - - ---~ - shy

EUROPL Developed Developing

LATIN AMERiCAmiddotmiddot shy ~ --~

FAR EASL Developed - -_ - ~ ~

Developing_

SOUTH ASiA --

NEAR EAST _ - - ~ ~ ~

AFRICA - - - - _ shyDeveloped - - shy

~ ~ shy

_ -~ Developing

OCEANIA

WORLD TOTAL __ ____

NORTH AMERICA_ __ United Statesmiddot __ Canadamiddotbull _ __

EUROPL

NATO European Belgium __ __ Denmark France Germany WesP _____

Greece Icelandmiddot _ Italy __ Luxembourg Netherlands __

See footnotes at end 01 table

65521 60769 4752

23788

37051 35552 1499

1364

889 313 576

403

412

693 195 498

921

86387382

~ 8541 7382 97

shy 4282

576 3353 ~ 3306

47

1410

576

~

1551 846 796-50

1721

350

1324

1551

~

I 324

shy 157

23819 7 10973 II 12846 5

3602 16

8612 12 6986 II 1626 14

1153 4

7161 6 250 2

6911 6

1752 3

993 11 i

449 2 38 2

411 2

i 97 7 I

I

800 15381 170

2287o

1008 12002 1872

1938

1618 4584 I 573

1230

2921

2457 9368 1818

10866

190733 168779 21954

82379

86888 83844 3044

2235

12018 1146

10872

2155

2901

1103 356 747

1054

190733

82379 80596 I 783

86888

22668 602 345

6118 5278

367

2245

90 I

2685006 2234940

450066

931800

1185000 1115700

69300

113551

281335 141 920 139415

62090

29594

50130 14020 36 110

31500

2685006

931800 865700 66 100

1185000

529900 20700 12400

126600 132700

7600 500

74800 800

25 200

35091 9675

25416

221 9

7256 6106 1150

2617

12338 10LO

11327

6892

91 5

2708 192

2516

148

I

35091

221 9 201 2 208

7256

I 3016 I

96 50

499 602

I

88

21 528

3 127 1

71 72 49

118

73 75 44

20

43 8

78

35

98

22 25 21

33

765 2310

177

4199

1633 1827

603

434

228 1404

123

90

324

185 731 144

2131 i

BY COUNTRY

611

118 93 27

73

43 29 28 48 40

48

30 10 36

7651

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 I 418 2381 I 978

130172 117313 12859

50815

60318 58745 1573

2567

11138 6000 5138

1324

1085

1622 450

1172

1303

130172

50815 46400 4415

60318

17883 893 600

3354 3863

157 12

2730 29

1214

65521 7 382 1

J23788 4282 I

21 382 4 048 1 2406 234

8008

22870 23027 17480

100898612 12

7491 99

103026 10 6081

46 7500 505

9 12 115

486 10

108608

18 2280161

510244~ t 8000

129 i 10 3

7023

37051

15327 530 670 292

6874

middot90 5

696 -20 973

3353576

2829

-I 93 313

29 980 755 i

72

257

~I 139

10

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued I n current dollars]

Relative burden i Other public expenditures 1

Armed lorces

I---I--~-~I----Imiddot ----------shyMilitary Gross Popushy Military Foreign Forces i

Ituresexpendmiddot national

product lation expend GNP Public Public economic aid Armed Military itures as per educa- health 24 bull lorces Iexpend-percent capita tlon 3 1 (per itures 01 GNP Received Given thoumiddot per man

sand) (million (million (dolshy (million (million (million (million (thou- popumiddotdollars) dollars) (millions) () lars) dollars) dollars) dollars) dollars) I sands) lalion) I (dollars)

BY COUNTRY~Continued

NATO-Continued Norway Portugal _ Turkey United Kindgom

322 359 573

5545

9 000 5000

11600 103000

38 95

335 553

36 72 49 54

2357 528 346

1863

403 57

321 4450

180 79

139 4779

241

24 47

505

35 183 514 427

9 19 15 8

9200 1 962 1115

12986

NATO Total 105047 1461700 5235 72 2792 68698 39117 313 7 III 6628 13 15849

Warsaw PacL Bulgaria __ Czechoslovakia _ Germany East __ ___ Hungary _____ __

61 100 300

1 360 1 450

340

553200 9100

28400 30800 13800

3402 84

144 171 103

(7-9) 33 48 47 25

1626 1083 1972 1801 1340

38604 367

1093 I 031

580

18281 272 982 792 339

400

100

4783 173 265 196 l37

14 21 18 II 13

12774 1734 5132 7398 2482

Poland__ ____ __ __ _ Romania __ Soviet Union

1950 700

55000

37400 20700

413000

323 197

2380

521158 34 1051

(8-10) 1735

1643 890

33000

1396 600

13900 300

319 223

3470

10 II 15

6113 3139

15850

Other European Albania ___ Austria _ Finland _ _ __ _ Ireland _

3120 76

150 156

27

101900 800

11400 8 000 3 000

838 20 74 47 29

31 1095

13 2 a 9

I 216 400

1551 1706 1 031

3831 70

402 585 110

3443 30 567 344

ll4

263 124

31

803 51

50 39

10

10 26 7 8 3

3885 1490 3 000 4000 2700

Spain _ Sweden_ _ Switzerland _ Yugoslavia _

913 977 365 456

25200 26300 17200 10000

3261 79 61

202

36 37 21 46

773 3322 2798

496

290 1486

577 3ll

403 1 070

429 486

181

82

72 21

305 78 31

239

91 10 5

12

2993 u 12526 11 11774

1908

LATIN AMERICA __ Argentina _ Bolivia _ BraziL_ Chile _ Colombia _

2235 380 17

651 127 98

113557 171l1

786 27353 5670 5638

261 7 236 44

802 92

198

20 22 22 24 22 17

434 725 177 310 614 284

2567 I 346

25 169 205 111

1364 26 3

81 155

96

1410 15 52

319 220 170

1153 8144

18 225 63 55

4 6 4 3 7

1938 2639

944 2893 2016 1782

Cost Ricbull _ _ Cuba bullbull ___ __ _ Dominican Republic_ _ Ecuadoc ___ EI Salvador

300 30 26 10

734 bull 5 000

1169 1475

930

16 76 4 a 57 32

106 a 26 18 11

449 658 295 259 290

33 281

26 35 24

20 60 -14

6 14

15 1

54 28 10

394 18 17 6

52 5 3 2

761 1667 1529 1667

Guatemala _ __ Guyana _ _ HaitL __ Honduras _ Jamaica _

16 2

1500 215 326 621 951

5 a 7

50 25 L9

11 9

21 14 5

299 303

65 245 497

27 8 3

17 22

34 8 4 7

17

24 16 6

15 28

9 1 5

2 1 1 2 1

1778 2000 1 400 1800 2500

Mexico_ Nicaragua __ _ Panama _ __ Paraguay _ Peru ____

184 10 1

10 132

26310 697 826 511

4287

473 19 14 22

128

7 14 1

20 31

557 374 602 229 336

504 16 33 9

151

316 5

16 3

51

210 19 19 23 57

70 i6

13 50

6

2629 1667

769 2640

Trinidad amp Tobago __ Uruguay_ bull Venezuela

3 23

194

748 1589 9110

10 28 97

4 14 21

726 564 941

19 13

396

10 21 78

1 13

38

3 000 1 769 5105

See footnotes at end of table

11

TABLE It-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued (I n current dollars) 1

Military expendshy

itures

Gross national product

Popushylation

Relative burden Other public expenditures

I

I Public

ForeignMilitary GNP Public economic aid S expendshy per I educashyitures as I capita 1 tion Zbull1 I health

Armed forces

I 1Forces Armed 1 Military forces 1 flfer expend-

percent I Received Given 1 taumiddot itures of GNP 1 sand I per man

(million (million I

(dol- (million (million (million (million I (thou- popushy1dollars) dollars) I(millions) () lars)

dollars) dollars) 1 dollars) dollars) I sands) lation) (dollars)

I I

__------_--

FAR EAST Burma Cambodia China Mainland China Republic 01 Indonesia

Japan+ Korea North Korea Republic oL Laos Malaysia

Mongolia Philippines Thailand Vietnam North Vietnam Republic of

SOUTH ASiA Afghanista n Ceylon India NepaL Pakistan

NEAR EAST Cyprus Iran Iraq I srae __ Jordan I

Kuwait I lebanon Saudi Arabia Syrian Arab Republic -

Yemen

United Arab Republic

AFRICA 0shy

Algeria Cameroon Cenlral African Republic Chad Congo (Brazzaville)

Congo (Kinshasa) Dahomey __ I Ethiopia Gabon Ghana _

Guinea __ Ivory Coast Kenya liberia libya

See footnotes at end of table

middot20 116 157

550 613

2155 16 13

1603 5

518

2901 I 6

530

280 I 672 105

63 45 I

383 i 137 I 14 I 666 I

1103 1

100 I 19 I 3

8 1

6 I

44 I 4

41 I 3

44 i

14 I 17 I 15 I 3 I

37 I

575 I 7276 1 5512

2300 3050

62090 1370 1781

43 000 800

15139

29594 1 438

8 020 I 2400 i 4042

575 i

2220 i

1 424 2200 I 1425

550

5740

50130 3365

800 200 270 174

1330 182

1534 200

1 994

669 1242 1330

254 2965

BY COUNTRY--Continued

12338 264 66

806 a 141

1137

43 57 66

F 8 3 101 29

4 000 99

100

101 1 134 305

28 103

8 10180

41 168 32

1 404 I 261 188 I 721

326 I

6000 100 110

7 140

12 359 351 193 174

1[gt 35 16 28

10 239 20 I

479 I 203 157 i 119

175 I

198 168 91

32

6892 161 120

5271 107

1234

35 12 7

37 6

34

90 1 85 I

149

82 I 75

123 I

1324 6

66 1 130

4 118

91 5 6

27 I 86 27 2 I

98 14 66

117 166 183

324 704 296 278

1472 I 274

1085 9

182 133 225

19

5 27 46 57 5 a

28 32

174 96

) 2 5

4111 519 478 250 110

87 34

107 54 3

31 7 I 6 181 232

2708 129 56 15 35 9

22 3 a 24

10 1 5 10 3 a to 34

185 260 43 134 78

200

1622 155 23 7 8

111

17 a 26

242 5

84

33 lfr 2 2

27 15 22

78

711 63 I

417

238 1

69 I 7

15 10 67

38 4 a

102 11 18

21 4 11 12 12

174 312 130 225

1644

37 60 22 7

74

313 I 11 I II 2

123

2

23 29

18 24

403 9 46

283 5

60

412 I 4 1

135 I 28 57

44 8

33 7

8

80

693 59 11 3

bull 4 6

28 I 5 1

1~ I 16

17 10 3

37

11

95 333

314 60 50

139 79

448

1721 30 48

1107 2

534

350 I

132 14 70 48

14 13

-15 11 1

61

1324 117

45 18 22 42

67 18 50 11 87

9 49 61 23 6

50

796

i I I i

s 33 47

167 447 735

1752 70 10

11133 1

15 1

bull 524 1

I 99i I

bull 225 I 992 1

771 55 I

I 7

12 956 69

8

bull 391

449 58 5

1 1 2 I

I 31 2 I

45 i 1 1

15 i

4 3-I 4

I 8 I

2 I 31 20 I 34 6

28

5 23

42

3 4 i 2 i I I 4 I

I 11 2 i 8

II 28 26 I

13 4

12 1

12 1

2 I

12 I 2 I 4 I 1 I 1

4 1 4 I

1678 775 774

2419 805 696

4584 1 534

379 358

1 895

606 2468

940 1 230

834

1230 229

1300 1415

333 989

2921 6000 2356 3043 8727 1 909

9 000 3750 6839 1986 1750

1703

2457 1724 3800 3 000 8 000 3 000

1419 2 000

911 3000 2933

2800 4250 5 000

750 4625

12

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968-Continued [In current dollarsjt

I Relative burden I Other public expenditures I Armed forcesI

IMilitary ForeignGross expend- national Popu- Military GNP Public economic aid S Forces MilitaryIArmeditures product lation expend- per educa- Public expendshy

tion 23 (perhealth 2 ituresitures as capita forces thoupercent per manReceived Given

of GNP sand (million (million (million (million (million (thoushy(dolshy (million popushydollars) dollars) (millions) lars) dollars) dollars) dollars) dollars) sands) lation)

I(dollars)()

I

BY COUNTRY -Continued

AFRICA-Continued Malagasy Republic MalawL __ MaIL __ Mauritania Morocco_

Niger Nigeria____ Rhodesia Southern__ __ _ Senegal ____ Sierra leone __ __

Somali Republic __ __ __ South Africa Republic of Sudan __ __ Tanzania Togo ____

Tunisia Ugandabull Upper Volta~ __ Zambia ______

OCEANIA ____ Australia __ ___ New Zealand

13 780 I 247 5 264 8 172

76 2981

342 91 3

6000 21 1138 15 827

340

8 170 356 14020

74 1560 13 943 I 121

183 213 I 14 471048 16 994 81 -5 5 I257 20 1325 41

1054 31500 148 26600 120

9~ I 4900 I 28 I

70 43 48 11

146

38 535 49 38 25

27 192 148

Oeveloped country or region (Country without asterisk is developing) All countries in region are developing Rough ACDA estimate

None or negligible I For most countries conversion into US dollars Is at official par value exchange

rates as rounded by AID For all Communist and several developing countries esllmated purchaSing power panties are used (See Conversion Rates page 35)

Due to dilferences in concepls coverage and reliability data on public education and health expenditures do not permit accurate comparisons between countries or in some cases between years for the same country

3 Public expendHures on education in 1968 are ACDA estimates based primarily on dala for 1967 or earlier (See Educalion page 34)

Informallon on educational expenditures which are made outside of governmentbudgets is not available on a worldwide baSis The rellive importance of these expenditures vanes sharply from co~nlry to country In the United States private expe~dltures In 1968 were $118 billion or 20 of the total Private expendilures conslltut~d the follOWing percentages of total national expenditures In 1967 (or Ih indicated year) according to UNESCO estimates

EI Salvador ______ Sudan

Percent Percent Argenlina (1966) __ __ Australia ____ __ Canada ____ __ Chile (1966) bull China Republic of ~_ poundcuador bull __ __ __ __

51 38 23 28 29 34

Israel (I966)~ __ Japan _____ Jordan __Kenya __ _ Malawi _ __ Philippines_

26 20 14 70 15 24

23 __ ___ __ 27 Bhiopia (1966) 47 Venezuela __ __ _______ __ 27Greece ________ __ 39 Vietnam Republic of (1965) __ 58Guatemala _______ __ __ 25 Zambia (1966) __ __ 73India __ 44

In Communist countrie~ extramiddotbudgetary expenditures are also significan For example according 10 offiCial data education expenditures by state cooperative and trade union enterprises and collective farms in the Soviet Union make up about 13 percent of the total parental payments to childrens institutions and schools mayconstitute another 6 percent

17 III 49 15 44 4 58 II 4 26

19 55 10 4 20 47 154 4 8 25 204 106 40 124

9

I

90 I 5 29 15 112 132 [ 83 108 18 230 42 I 13 -3 18 220 29 14 48 9 137 9 3 111

47 62 3 I 26 I

25 731 450 195 47 106 69 22 I 29 14 78 30 13 34 14 120 4 2 13

13 16

224 122

i 57 I

15

I 15

14 I 88 20

lO 1 9 50 i 6 I 23 15 326

1

I 20 I e 18 51

I

33 2131 1 1303 I 921 157 36 18

2211 1 781

i

i 1132

171 697 224 i

157

I 4 I I

4 I

62

I 70 I 5 5 i

2

8 38 24 4 1

2 I 2 I 3 i

I I

97 84 shy13 I

4

3250 1000 1250 8000 1226

3000 1300 4200 3000 1500

1000 9368 3083 3250 3000

609 2667 2500 6667

10866 11524 6615

Public expenditures on health in 1968 are based in part on data for earlier years(See Health page 35)

As 10 educational expenditures Ihe portion of tolal health expenditures which is exlramiddotbudgetary varies greatly from country to country Scattered information suggests that on average Ihe private portion of health expenditures may be higherthan the private portion of education expenditures In the United States in 1968 private health expenditures amounted to $352 billion or 62 percent of total health expenditures

In Communist countries extramiddotbudgetary health expenditures are made by state cooperative and trade unum enterprises anj collective farms as well as households In the Soviet Union for example they constitute about 20 percent of total health expenditures according to official sources

Economic aid given by Communist countries to nonmiddotCommunist counlries is included in the world total of aid received It is not distributed by individual recipientcounlries or regions however as accurate data on such distribution are no available (See Foreign Economic Aid page 34_)

Military expenditures and GNP are not fully comparable due to the use of different dollar conversion rates lor the two variables in the Soviet Union (see footnote 9)Using the more valid ralios shown in parentheses for the Soviet Union and Ihe Warsaw Pact total the ratio for the world is eslimated to be 6-7 percent and for Europe 5-6 percent

1 Ineludes West Berlin Includes paramililary as well as regular forces The implied relationship between dollar amounts of Soviet GNP and military

expenditures (or GNP and public expenditures on educalion and health) is not valid due 10 the use of di~erent types of conversion rates lor GNP and particular sectors It is estimated Ihat the actual ratio of military expenditures to GNP would fall somemiddot where within the range indicated in parentheses the lower part of the range reflecting a comparison of military expenditures and GNP in faclormiddoteost ruble values and the upper estimate representing dollar values converted on a comparable basis (See Conversion Rates page 35)

10 Since either or both military expenditures and GNP estimates are approximations the resulting ratio should be viewed with particular caution

II For Sweden SWitzerland and Israel the high rate of military expendilures per man rellects small standing forces with a capability for extremely rapid mobilization of large reserve forces

13

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 4: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

HIGHLIGHTS OF THE DATA

This fifth annual survey of m-ilitary expenditures and related data by the Us Arms Control and Disarmament Agency (ACDA) covers 1969 and 1970 insofar as prelimnary information permit rough estimates on a regional or global basis The estimates jor the latest years as well as the detailed national data for 1964-68 are subject to qualifications which could affect both trend and crrmparative levels They should be regarded as reasonable approxishymations rather than as precise statistical indicators

Summary Chart I

World military expenditures inflated by further increases in prices reached a new peak in 1970 MILITARYLast years vorld total reached an estimated 204

EXPENDITURES$204000000000 the equivalent in dollar value of Bittion dollars current prices a years income produced by the 1800000000 people in the poorer half of the worlds population

In actual expenditures the increase in world military spcnding over the previous year wos the smallest in recent years (chart I) In terms of

World Total constant dollars ie had prices been unchanged there would have been a slight declillo--a hopeful Developed

countriessign that the sharp uptrend of the 1960s has been blunted (chart II) Expressed as a ratio to GNP military spending was slightly lower for the thinl ~--- 103

year in a 10- In 1970 these outlays took 64 percent of the world product

NATO _In the 6 years since the first world survey 71_ military outlays in current dollars htye risen _ _0 almost 50 percent HOveyer about three-fifths of ---shyWarsaw Pact this increase reflects price inflation If prices h11lt1 been unchanged military expenditures of 1970 would have exceeded those of 1964 by roughly 20 bullOther bullbull - 27bullbull

30

------shyDeveloping Figures in current dollars reflect the prices and exshy countries

change rates of the respective years to which they apply 1964196519661967196B196if1970middot Figures in constant dollars have been adjusted for changes

Calendar years in both prices and exchange rates to show real values middotEstlmated

in terms of a single year (See discussion of prices page 36)

177

CharI II MILITARY EXPENDITURES AND GNP

ESTIMATED IN CONSTANT PRICES

Index 1964 == 100 140r-1r~----r--~~

World Wide

bull 130 GNP total

--- shyMilitary 7 expendilures shy

120 bullbullbullbullbullbullbullbull ~

p~ t

110 Ji t _Y--GNP per capita

I Plloyen---------I-L----l

1964 65 r6i 67 68 69 70 140~_r--r_-r--T--r~

Developed Countries

shy130

GNP total I- 1P

120 ~- dJmiddot-1---bullbullbullbull

bull J

GNP per shy-t ----capita110 l--Military1 p expendItures

~ 10

1964 65 66 67 68 69 70 150r-1r---~-r~r-

d p

Developing Countries shy

140 1 Military l f shyexpenditures bullbullbullbullbull

130 ~I shy

hNP~total120

~

bull 1 I

110 ~GNP per capita

100~~~~~~--~~

1964 65 66 67 68 69 70 Estimated

percent Thus the 20 percent rise measures the real or physical increase in military effort since 1964 Some of the increase is reflected in the increased numbers of personnel in the armed forces which are up more than 10 percent some in investment in higher quality increasingly sophisticated military equipment The rise in expenditures includes strategic forces as well as the conventioIl11 forces which represent four-fifths of world military spending

The current survey produces no evidence that a widesprcad shift from military to civilian uses of resources has begun Nor docs the slower rate of increase in total military expenditures in the Pl1st 2 years reflect a worldwide tendency to restrict 8uch outlays In the vast majority of countries for which recent information is available there was a further rise in military budgets in current prices in 1970 While NATO spending went down largely as 11 result of a decrease in US defense expenditures the total for developed countries as a whole did not decline In developing countries as a group military expenditures again moved higher Thu8 developing countries continued as they had in the years preceding to inerease their share of world military outlays devoting to military programs funds that could have been allocated to economic development

More public funds continued to flow into milishytary programs than into public education or public health pIognuns for the yorIds pOJlulation of 36 billioll (chart III) In developing countries for example the increase in military spending in the period since 1964 represented the equivalent of 3 years expenditures on public education for the billion school-age children in those countries

The text below amplifies some of these summary points and provides additional information on global and regional trends and comparisons (See table I page 9) National datn are not compared here but may be found for 1968 nnd earlier years ill tables II through VI page8 10 to 30

The Trend of Military Expenditures

Military expenditures prodde a useful baromshyeter of the momentum of the arms race Howshyever th( yorId totnl like lll aHmgps may

The criteria llsed in classifying countries as developshying arc described in the Statistical ~otes page 32

2

Chart III

WORLO MILITARY AND OTHER PUBUC EXPENDITURES

1964 amp 1968 --------------------------------200

Billion current dollars

1964 -r50

1J68

~--~------~--oo

~----50

Military Education Health Foreign Economic

Aid

conceal geographic and other changes which are of major importance in gauging trends

Chart I shows trends in military expenditures in current prices for the ~odd (vertical hite bllrs) and for each of the major eategories of countries for whicb projections through 1970 are attempted It should be noted that the categories of countries shown on the charts are overlapping lVIost vVarshysaw Pact and NATO countries and some other countries are represented in the developed group Developed and developing countries together make up the world total as do KATO middotWnrSlW Pllct and the other category

The chart shows the NATO line in current prices declining after a rnpid rise from 1965 to 1968 Although the Warsaw Pact line continues on a slIlrp llI)nlld slant developed conntrirs as n whole hardly changed sp(1nding levels bctween 1969 Ilnd 1970

Chart II shows trends in military expenditures after allowance is made for tho effect of price ris(ls

(Correction for price changes on a worldwide basis is necessarily rough) Expressed in constant dollars military (lxpeuditnr(ls of developed COUllshy

tries are estimated to have leveled off between 1967 and 1969 and to have declined in 1970 led by a downturn in the NATO totnl This is the first such drop since ACDAs odd survey began in 1964 and a significant one in overall effect since expenditures of the developed conn tries acshycount for approximately 90 percent of world military spending

The trends in developing conntries as a group are rather different In current and even in constant prices the recent rapid increase of military spending in these countries has continll(ld Within this classification of countries however major differences in military expenditure trends are evident The rate of expnnsion of expendishytures is by far the shnrpest in the Nem East Smaller increases have occurred in the Fill East LnJin America and Africa In South Asia spending rates have ehanged relatively little sinee 1966

As chart II indieates in the developing countries as a whole the rate of in(Teast in military spending continues to outstrip the adnll1ce in GXP at tlw expense of populations hose an~llg() illeoIlw p(lr eapita is still barely $200 a year

Comparisons With Economic Growth

Since 1968 when th(l advance in wodd military expenditures began to moderate tho growth rute of world GNP hus been faster than the onrall rise in military spending (see chart II) As it

cons(lquence the shale of world GNP going to military programs has declined from 11 high of 71 p(lrcent in 1967 to 64 percent in 1970

This chango suggests that oHrall the military burden has beOul1 to lessen somewhat in relation

b

to the yorld economy On the oth~r hand dlllllg(ls onr time in the ratio of military spending to GNP must be evaluated cautiollsly both as meUSlrs of relative burden and HS indicators of arms l(strnint Economie groyth is JlopU lation-rela ted Unless the civilinn portion of world GNP-till innstm(lnt and consumption componont~-grows with rising population liying standards full Un(ss the eidlian portion adjust(d for tilr popushylation rise (lxpands with rising GNP lidllg stnndnrds hn ( not b(IWfi ted flllly from t h( growth di dd(lld

3

The record for 1970 as compared with 1964 the year of ACDAs first annual Sllvey shows that military eXJlenditures haye absorbod some of this growth diddend although the shure of world GNP that they tnke has diminished The changos expressed in dollar equivalonts are summarized in the table b(low

WORLD GROWTH DIVIDEND 1970 OVER 1964 (Billion dollars)

Increase in GNP in current dollars 1752 of which

price inflation 514 population increment

(valued at 1964 GNP per capitet) 288

Increase in GNP (adjusted for price and popnlation changes) (450)

of which increase in military expenditures 28

Leaving an actual growth dividend for civilian Uses of 422

In 1970 the dollar value of world GNP vas $1252 billion higher than in 1964 Price rises and population growth however accounted for It

major part of this apparent gain in yalue The increase in GKP when higher prices and larger popUlation are considered as $450 billion or only one-third of the apparent increase The increase in world arms spending in constant prices took $28 billion of this dividend J represell ting a larger share of real growth in devol oping thall in develshyoped countrios

As an indicator of arms restraint a downward trond in tho ratio of military expenJitures to GNP

Chart IV

SHARES OF WORLD TOTAL IN 1968

Developed countries Developing countries

Military Exps

Armed Forces

Population

GNP

Puhlic Education

Public Health

o 20 40 60 80 100 Per cent

is not sufficient With 1 rapidly growing oconomy even a declining ratio to GNP can cOllceal un inshytOllsified arms race

Compared with the immediate pre-World War II period military expenditures in 1970 probably took a somewhat smallor share of world GNP HOveeI the yorld economic base has boen so vastly cnlargod that todays share ropresents II

fonrfol(l increase in expenditures ill real terms as compared ith 1937 It is estimated that worldshywide military oxpenditures of 1937 based on a League of Nations study of that prewar yoar totnled about $ljO billion in 1970 prices in contrast to todays $204 billion

Developed and Developing Countries

Poorer countries suffer most from arms races For example military equipment which they proshyduce themselves may tap the high-quality 10shy

sources that are most noedod for investment in eivilian industry ~Iilitary oquipmont bought from abroad may take some foreign exchange that could have helped to modernize tho economy and improve living stawlards

For the past 6 years ACDAs survey shows military expenditures have grown eonsidorably faster ill developing tlum in developed countries The GNP increase in developing economies from 1964 to 1970 expressed in constant prices is substantial but the rate of growth per capita has beon less than that in developod countries

For the dceloping countries 11 calculation of the llnnual growth dividond similar to that shown in the table above for the world total reveals thLt they have devoted to military spending tice llS large a proportion of their GNP growth dividend as havo developed countries whell allowance is made for price increases and the more rapid population growth in the poorer countries Togcthor theso flletors have limited their actual growth dividend for civilian uses to a 6-year gain of only $30 per person In deshyveloped countries by eOlltrast the civilian inshycremen t from 1964 to 1970 was 16 times as mn ch or $469 per person

Chart IV illustrates the end-results of these tlends as of 1968 The 93 developing countries in ACDAs survey lopresented 73 percent of the worlds population but had only 17 percent of

4

Chart V

Dollars PER CAPITA EXPENDITURES FOR400------------------------shy MILITARY EDUCATION AND HEALTH BY REGION 1968

bull Military

bull Public Education

D Public Health Dollars

------------------------------------------------------------200

------------------------------------------------------100

NORTH EUROPE OCEANIA NEAR AMERICA EAST

current world income They accounted for only 7 percent of world public expenditures on henlth care and for 10 percent on education The inshyclusion of international economic assistance would of course add somewhat to the resources available to developing countries but the addition would represent a relatively minor proportion of their GNP All foreign economic aid loans as ell as grants amounts to less than 2 percent of GNP of developing countries

On the other hand the developing areas with their large populations accounted ill 1968 for more than half the 24 million men under arms in the world

While the budgeted military expenditures of the developing countries were only 12 percent of the world total in 1968 this is not the full amount that went into maintaining military forces in these countries Military aid contributions of the major powers are a significant supplement to the military expenditures of developing countries Military aid according to the standard budgetary conshycept of this report is counted among the military expenditures of the donors-not in the recipients military budgets In this respect the expenditure data and chart IV tend to understate the relative military capacity of the developing world

Growth rates recorded since 1964 (see table

FAR EAST LATIN AFRICA AMERICA

below) suggest that developing countries have gradually enlarged their share of world milishytary effort maintaining it rate of increase in pershysonnel in the armed forces as well as in military expenditures considerably larger than that of developed countries Howmer this expunsion of military effort was accompanied by a lowering of their relative economic standing when jlopulnshytion increase is taken into account

AVERAGE ANNUAL GROWTH RATES 1964-70

(Values in cunstant prices)

World Developed Developing

Military expenditures 2 8 2 3 ii 9 Armed forces 19 O 0 l i

Total GNP 4 9 4 8 j 7 Population 2 1 10 2) Civilian GNP per capita 30 4 0 1 1

GNP le6~ military expenditure

Other Public Expenditures

A comparison of world military expenditures with other pnblic expenditures such as public education public health and foreign economic assistance is set forth ill chart III (page 3) Reshygional comparisons are shown ill rhart V and national data may be found in statistical tables II and III Comprehensive data on private expendishytures on these civilian programs are not avail-

SOUTH ASIA

5

Chart VI

MILITARY EXPENDITURES AND ARMED FORCES 1964 amp 1968

80

1964 1968 60 6Expenditures (b j I 5)

~ ~ Forces (million men) shy c-0 QJ-0

EE c

0

~ c ~ 0

ii5

20

EUROPE FAR EAST

2

AFRICA OCEANIA

able See table II footnotes a and 4 for available data on private spending in individual countries

Manpower

Following a steady upward trend between 1964 and 1968 the number of men under arms began to decline in 1969 and 1970 At year-end total armed forces numbered an estimated 23 million about 05 million fewer than at the 1968 peak although still more than 2 million higher than in 1964

Chart VI shows the large numbers of active duty forces belonging to two of the seven geoshygraphic regions In 1968 almost 16 million or two-thirds of the men under arms were in the forces of European and Far Eastern countries North America ranked next with 36 million under arms and the Ncar East next with 18 million All regions increased forces between 1964 and 1968 the largest rise in absolute numbers being in the Far East

Both developing and developed countries havo increased military expenditures more rapidly than personnel The trend is to larger outlays per man in uniform even when allowance is made for price rises This rate of course varies widely among individual countries Chart VIII (page 31) showing several indicators for the 10 major military powers illustrates the range in expendishytures per man in uniform

In addition to the men and women serving directly in the armed forces military-related emshyployment remained high particularly in the inshydustrialized countries In Europe as a whole manshypower in the armed forces and in industries and trades related to military requirements was estishymated at almost 10 percent of the economically active population Worldwide manpower in the armed forces and in military-related employment in 1968 was close to 60 million a number equaling the total population of West Germany

6

418-790 0

DEFINITIONS OF TERMS

Gross National Product (GNP) represents an economys total output of goods and services valued at current market prices paid by the ultimate COIlsumer

JiilitarJ Expenditures are current and capital expenditures to meet the needs of the armed forces including expenditures of national defense agencies for military programs expenditures for the military components of such mLxed activities as atomic energy space ami research and development military assistance to foreign countries and expenditures on paramilitary forces where they contribute subshystantially to a countrys military capabilities

Foreign Economic Aid Reeeited by developing countries comprises official bilateral grants and loans (gross of repayments) disbursed by Development Assistance CommIttee (DAC) countries and net aid received from multilateral agencies (Aid received from Communist countnes is shmvn in the world total but is not included in country or regional totals) Aid given by DAC countries includes official bilateral aid and net contributions to multilateral agencies Aid given by Communist countries represents deliveries to non-Comshymunist developing countries only Aid from private sources and milishytary assistance are not included

Public Education Expenditures include current and capital expendishytures for preschool primary secondary and university-level educashytion Wherever possible expenditures by all levels of government are covered Private spending is not included

PIblie Health Etpenditlfs represent current expenditures (and whershyever possible capital expenditures) by all levels of government for the provision of medical services Private spending is not included

Armed Forces refer to military personnel actually on duty including paramilitary forces where these forces contribute substantially to 11

countrys military capabilities Reserve forces are not included

DeulopinJ OOlntrie~ 93 in number are the countries listed under Latin America the Far East except Japan South Asia and the Near East and Africa except the Republic of South Africa and also include in Europe Albania Bulgaria Greece Portugal Spain Turkey and Yugoslavia

Dueloped COllntric) 27 in number are the countries listld under North America Oceania European NATO except Greece Portugal and Turkey the Varsaw Pact except Bulgaria and include Austria Ireland Finland Sweden Switzerland Japan and South Africa

For further discussion of terms as used in this report ee Statistical Notes page 32

- 71 - 2 7

STATlSTICAL TABLES

Table I presents a summary of recent trends in two key indicators military expenditures and GNP by major groups of countries In order to provide as current a picture as present statistical resources permit estimates for 1969 and 1970 are included However since national data for the latter years are preliminary and incomplete these estimates are subject to revision The data in constant 1968 dollars are approximate estimates based on the use of average price and exchange rate adjustment factors for groups of countries and do not reflect adjustments by individual country

Table II is the basic table showing a variety of data on each of 120 individual countries in 1968

the latest year for which data are available on a worldwide basis Table III shovs some of these same data expressed on a per capita basis Hisshytorical trends by country and year 1964-68 are presented in table IV (military expenditures and GNP) and table V (armed forces)

Table VI ranks the first 30 countries of the world in terms of six main factors of military and economic strength

Chart VII RELATIVE BURDEN OF MILITARY EXPENDITURES 1968

ll Z G LI o tf CIl laquo CIl lLJ 0 gt l-e z lLJ ll X lLJ

gtshy0 laquo IshyJ E

OVER 10

5-10

~------

2-5

---~~-

1-2

UNDER 1

UNDER $100middot

1~0$

BURMA

CHAO CONGO

KlNSUA5A DAHOMEY ETHiOP(A HIIII INDIA INOllNJSIAsbt1Ju

REPUBliC UGANOA

AfGflANISTAN MAll tANZANIA u~PEflOtTil

~ -~

tfALAN1 NEPAL NIGet

$100-199

UNITED AS

R9II1JIIC YIETNAM

NORTH VIETtiAM

IEPU911COF

CAMBQI)IA CHINA

MAINLANO

BOLIVIA CAMEROON GIJINEA (ORA

REPfBtlC OF MAIIRUANIA PAKISTAN SUIAti TIAlIANO YEMEN

CENTRAL AFRICAN REPIlBlIC

KENVil MAUGASY

RtII~LlC NERIA TOGO

CEYLON SIERRA LEDflE

GROSS NATIONAL PRODUCT PER CAPITA

$200-299 $300-499 $500-999 $1000-1999 i $2000-2999 OVER$3000

cmNA SAUDI ARABIA ISRAEl REItf811COF

IRAQ IJORDAN

KOREA NORTH

___ f -------- shy--~------

UlAN IALBANIA CUBA POLAND UNITED SYRIMtARAB PORTUGAL USSR STATES

REPUBLIC UNITED KINGDOM

ALGERIA BRAZIL CHILE BULGARIA AUSTRALIA CANADA CONGO LEBAtiON GREECE CZECHOmiddot BElGIUM KUWAIT

BRAZllVILLE MALAYSIA SOUlli AFRICA SLOVAKIA DENMARK SWEDEN MM1NICtN MONGOLIA REPUBLIC OF GERMANY EAST FRANCE

I BUe fRU SfAIN HUNGARY GERMANY GHANA TURKEY VENEZUElA ITALY WEST MOROCCO YUGOSLAVIA NETHERLANDS NORWAY

ROMANIA SWITZERLAND

___ shy _-shy --------COLOMelA QABON ARGENTINA AUSTRIA LUXEMBOURG ECUADOR IVORY COAST CYIRUS FINLAND ElSALVA[)OR IllCARIGUA URUGUAY LIBYA GUATEMALA ZAMBIA NEW ZEALAND HONDURAS lIIiiRIA PARAGUAY PHilI PPI NES RHODpoundSIA

$OUTHERN SENEGAL nJfUSIA

-~------ shyCOSTA RICA Msueo IRELAND ICELANO GUYANA PANAMA JAPAN JAMAICA TRINIDAD amp

I TOBAGO

I

C_~1____l1li11II1II_________111l1li_______IIII_I_UIIIIJ_IIIIIJIIIIbull __IIIII11IIIIIIII1IIIIIIII1III11III1I1I11i11111lflllll1illliililil_-__

8

TABLE I-SUMMARY TRENDS IN MILITARY EXPENDITURES AND GNP 1964-70

Military Expenditures Gross National Product

1964 1965 1966 1967 1968 1969 1970 1964 1965 1966 1967 1968 1969 1970 est est est est

TOTAL

(Billions of Current Dollars)

WORLD 140 144 161 180 191 199 204 1936 2106 2301 2464 2685 2936 3188 Developed 125 127 143 160 169 175 177 1603 1734 1907 2048 2235 2421 2625 Developing _ 15 17 18 20 22 24 27 333 372 394 416 450 515 563

NATO __ _ 73 74 86 100 105 106 103 1073 1165 1268 1352 1462 1587 l681 Warsaw Pact 49 51 54 57 61 66 71 397 428 466 506 553 593 655 Other _ 18 19 21 23 25 27 30 466 513 567 606 670 756 852

811110ns of Constantl968 Dollars) (

WORLDbullbullbull _bullbullbullbullbullbullbull 158 159 172 188 191 192 186 22112 2325 2452 25711 2685 2830 2940 Developedbullbullbullbullbullbullbullbullbull _bullbull 141 141 154 168 169 169 162 1838 1936 2047 2148 2235 2346 2431 Devl1lopingbull __ ____ ______ bull____ 17 18 18 20 22 23 24 364 389 405 422 4511 484 509

NATObullbullbullbullbull __ bullbullbullbullbullbullbullbull __ 83 82 92 105 105 102 94 1231 1301 1360 1418 1462 1539 1558 Warsaw PacL__ ________ bull__ 55 56 58 59 61 63 64 446 472 501 526 553 566 594 Other__ ____ bull ________ bull __ bull __ 20 21 22 24 25 27 28 525 552 591 626 670 725 788

PER CAPITA

(Current Dollars)

WORLD __ 43 44 48 52 54 56 56 599 637 682 716 765 820 873 Developed _ ___ 134 135 151 167 174 179 180 1725 1 845 2009 2126 2310 2479 2666 Deyeloping __ 7 7 9 10 145 157 163 168 177 198 211

NATO _ 145 146 168 193 201 201 192 2139 2295 2469 2607 2792 3003 3151 Warsaw Pact 151 153 162 169 180 192 205 1213 1292 1398 1501 1626 1730 1897 Other __ ____ 7 8 9 9 10 11 194 208 224 235 253 279 307

(Comltanll968 Dollars)

WORlD____ __ bull _bull _____ bullbull ______ 49 48 51 55 54 54 51 682 703 727 747 765 790 805 Oeveloped ______ bullbull __ __ __ _____ bullbull 152 150 162 175 174 173 164 1978 2060 2157 2230 2310 2402 2469 Developlnllbull __ _____ __ bull ______ 7 8 8 8 9 9 9 158 165 167 170 177 186 191

NATO bullbull _ __ __ bull____________ _ bull ___ bull __ 165 162 180 202 201 194 177 2455 2563 2648 2734 2792 2911 2921 Warsaw PacL ________ ___________ 170 169 174 176 180 183 186 1362 1425 1502 1562 1626 1 652 1718 other _ ______ _____ __ 8 8 9 9 9 10 10 219 224 234 242 253 268 284

9

----

___

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968 [I n current dollars)

Relative burden Other public expend itures Armed forces

GrossMilitary ForcesforeignPopu- Militarynationalexpend-

MilitaryArmedeconomic aidPublic Publicexpend- GNPproductitures lation expend-health 14 forcesper educashyitures as

(per iturestion 23percent capita thou- per manReceived Givenof GNP sand

(thoushy popushy(million (million(million(million(dolshy(million(million (dollars)lation)sands)dollars) dollars)dollars)lars) dollars)dollars) (millions) ()dollars)

SUMMARY

WORLD TOT AL ---- Developed DEvEloping ----- shy

NORTH AMERICAmiddot - - - ---~ - shy

EUROPL Developed Developing

LATIN AMERiCAmiddotmiddot shy ~ --~

FAR EASL Developed - -_ - ~ ~

Developing_

SOUTH ASiA --

NEAR EAST _ - - ~ ~ ~

AFRICA - - - - _ shyDeveloped - - shy

~ ~ shy

_ -~ Developing

OCEANIA

WORLD TOTAL __ ____

NORTH AMERICA_ __ United Statesmiddot __ Canadamiddotbull _ __

EUROPL

NATO European Belgium __ __ Denmark France Germany WesP _____

Greece Icelandmiddot _ Italy __ Luxembourg Netherlands __

See footnotes at end 01 table

65521 60769 4752

23788

37051 35552 1499

1364

889 313 576

403

412

693 195 498

921

86387382

~ 8541 7382 97

shy 4282

576 3353 ~ 3306

47

1410

576

~

1551 846 796-50

1721

350

1324

1551

~

I 324

shy 157

23819 7 10973 II 12846 5

3602 16

8612 12 6986 II 1626 14

1153 4

7161 6 250 2

6911 6

1752 3

993 11 i

449 2 38 2

411 2

i 97 7 I

I

800 15381 170

2287o

1008 12002 1872

1938

1618 4584 I 573

1230

2921

2457 9368 1818

10866

190733 168779 21954

82379

86888 83844 3044

2235

12018 1146

10872

2155

2901

1103 356 747

1054

190733

82379 80596 I 783

86888

22668 602 345

6118 5278

367

2245

90 I

2685006 2234940

450066

931800

1185000 1115700

69300

113551

281335 141 920 139415

62090

29594

50130 14020 36 110

31500

2685006

931800 865700 66 100

1185000

529900 20700 12400

126600 132700

7600 500

74800 800

25 200

35091 9675

25416

221 9

7256 6106 1150

2617

12338 10LO

11327

6892

91 5

2708 192

2516

148

I

35091

221 9 201 2 208

7256

I 3016 I

96 50

499 602

I

88

21 528

3 127 1

71 72 49

118

73 75 44

20

43 8

78

35

98

22 25 21

33

765 2310

177

4199

1633 1827

603

434

228 1404

123

90

324

185 731 144

2131 i

BY COUNTRY

611

118 93 27

73

43 29 28 48 40

48

30 10 36

7651

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 I 418 2381 I 978

130172 117313 12859

50815

60318 58745 1573

2567

11138 6000 5138

1324

1085

1622 450

1172

1303

130172

50815 46400 4415

60318

17883 893 600

3354 3863

157 12

2730 29

1214

65521 7 382 1

J23788 4282 I

21 382 4 048 1 2406 234

8008

22870 23027 17480

100898612 12

7491 99

103026 10 6081

46 7500 505

9 12 115

486 10

108608

18 2280161

510244~ t 8000

129 i 10 3

7023

37051

15327 530 670 292

6874

middot90 5

696 -20 973

3353576

2829

-I 93 313

29 980 755 i

72

257

~I 139

10

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued I n current dollars]

Relative burden i Other public expenditures 1

Armed lorces

I---I--~-~I----Imiddot ----------shyMilitary Gross Popushy Military Foreign Forces i

Ituresexpendmiddot national

product lation expend GNP Public Public economic aid Armed Military itures as per educa- health 24 bull lorces Iexpend-percent capita tlon 3 1 (per itures 01 GNP Received Given thoumiddot per man

sand) (million (million (dolshy (million (million (million (million (thou- popumiddotdollars) dollars) (millions) () lars) dollars) dollars) dollars) dollars) I sands) lalion) I (dollars)

BY COUNTRY~Continued

NATO-Continued Norway Portugal _ Turkey United Kindgom

322 359 573

5545

9 000 5000

11600 103000

38 95

335 553

36 72 49 54

2357 528 346

1863

403 57

321 4450

180 79

139 4779

241

24 47

505

35 183 514 427

9 19 15 8

9200 1 962 1115

12986

NATO Total 105047 1461700 5235 72 2792 68698 39117 313 7 III 6628 13 15849

Warsaw PacL Bulgaria __ Czechoslovakia _ Germany East __ ___ Hungary _____ __

61 100 300

1 360 1 450

340

553200 9100

28400 30800 13800

3402 84

144 171 103

(7-9) 33 48 47 25

1626 1083 1972 1801 1340

38604 367

1093 I 031

580

18281 272 982 792 339

400

100

4783 173 265 196 l37

14 21 18 II 13

12774 1734 5132 7398 2482

Poland__ ____ __ __ _ Romania __ Soviet Union

1950 700

55000

37400 20700

413000

323 197

2380

521158 34 1051

(8-10) 1735

1643 890

33000

1396 600

13900 300

319 223

3470

10 II 15

6113 3139

15850

Other European Albania ___ Austria _ Finland _ _ __ _ Ireland _

3120 76

150 156

27

101900 800

11400 8 000 3 000

838 20 74 47 29

31 1095

13 2 a 9

I 216 400

1551 1706 1 031

3831 70

402 585 110

3443 30 567 344

ll4

263 124

31

803 51

50 39

10

10 26 7 8 3

3885 1490 3 000 4000 2700

Spain _ Sweden_ _ Switzerland _ Yugoslavia _

913 977 365 456

25200 26300 17200 10000

3261 79 61

202

36 37 21 46

773 3322 2798

496

290 1486

577 3ll

403 1 070

429 486

181

82

72 21

305 78 31

239

91 10 5

12

2993 u 12526 11 11774

1908

LATIN AMERICA __ Argentina _ Bolivia _ BraziL_ Chile _ Colombia _

2235 380 17

651 127 98

113557 171l1

786 27353 5670 5638

261 7 236 44

802 92

198

20 22 22 24 22 17

434 725 177 310 614 284

2567 I 346

25 169 205 111

1364 26 3

81 155

96

1410 15 52

319 220 170

1153 8144

18 225 63 55

4 6 4 3 7

1938 2639

944 2893 2016 1782

Cost Ricbull _ _ Cuba bullbull ___ __ _ Dominican Republic_ _ Ecuadoc ___ EI Salvador

300 30 26 10

734 bull 5 000

1169 1475

930

16 76 4 a 57 32

106 a 26 18 11

449 658 295 259 290

33 281

26 35 24

20 60 -14

6 14

15 1

54 28 10

394 18 17 6

52 5 3 2

761 1667 1529 1667

Guatemala _ __ Guyana _ _ HaitL __ Honduras _ Jamaica _

16 2

1500 215 326 621 951

5 a 7

50 25 L9

11 9

21 14 5

299 303

65 245 497

27 8 3

17 22

34 8 4 7

17

24 16 6

15 28

9 1 5

2 1 1 2 1

1778 2000 1 400 1800 2500

Mexico_ Nicaragua __ _ Panama _ __ Paraguay _ Peru ____

184 10 1

10 132

26310 697 826 511

4287

473 19 14 22

128

7 14 1

20 31

557 374 602 229 336

504 16 33 9

151

316 5

16 3

51

210 19 19 23 57

70 i6

13 50

6

2629 1667

769 2640

Trinidad amp Tobago __ Uruguay_ bull Venezuela

3 23

194

748 1589 9110

10 28 97

4 14 21

726 564 941

19 13

396

10 21 78

1 13

38

3 000 1 769 5105

See footnotes at end of table

11

TABLE It-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued (I n current dollars) 1

Military expendshy

itures

Gross national product

Popushylation

Relative burden Other public expenditures

I

I Public

ForeignMilitary GNP Public economic aid S expendshy per I educashyitures as I capita 1 tion Zbull1 I health

Armed forces

I 1Forces Armed 1 Military forces 1 flfer expend-

percent I Received Given 1 taumiddot itures of GNP 1 sand I per man

(million (million I

(dol- (million (million (million (million I (thou- popushy1dollars) dollars) I(millions) () lars)

dollars) dollars) 1 dollars) dollars) I sands) lation) (dollars)

I I

__------_--

FAR EAST Burma Cambodia China Mainland China Republic 01 Indonesia

Japan+ Korea North Korea Republic oL Laos Malaysia

Mongolia Philippines Thailand Vietnam North Vietnam Republic of

SOUTH ASiA Afghanista n Ceylon India NepaL Pakistan

NEAR EAST Cyprus Iran Iraq I srae __ Jordan I

Kuwait I lebanon Saudi Arabia Syrian Arab Republic -

Yemen

United Arab Republic

AFRICA 0shy

Algeria Cameroon Cenlral African Republic Chad Congo (Brazzaville)

Congo (Kinshasa) Dahomey __ I Ethiopia Gabon Ghana _

Guinea __ Ivory Coast Kenya liberia libya

See footnotes at end of table

middot20 116 157

550 613

2155 16 13

1603 5

518

2901 I 6

530

280 I 672 105

63 45 I

383 i 137 I 14 I 666 I

1103 1

100 I 19 I 3

8 1

6 I

44 I 4

41 I 3

44 i

14 I 17 I 15 I 3 I

37 I

575 I 7276 1 5512

2300 3050

62090 1370 1781

43 000 800

15139

29594 1 438

8 020 I 2400 i 4042

575 i

2220 i

1 424 2200 I 1425

550

5740

50130 3365

800 200 270 174

1330 182

1534 200

1 994

669 1242 1330

254 2965

BY COUNTRY--Continued

12338 264 66

806 a 141

1137

43 57 66

F 8 3 101 29

4 000 99

100

101 1 134 305

28 103

8 10180

41 168 32

1 404 I 261 188 I 721

326 I

6000 100 110

7 140

12 359 351 193 174

1[gt 35 16 28

10 239 20 I

479 I 203 157 i 119

175 I

198 168 91

32

6892 161 120

5271 107

1234

35 12 7

37 6

34

90 1 85 I

149

82 I 75

123 I

1324 6

66 1 130

4 118

91 5 6

27 I 86 27 2 I

98 14 66

117 166 183

324 704 296 278

1472 I 274

1085 9

182 133 225

19

5 27 46 57 5 a

28 32

174 96

) 2 5

4111 519 478 250 110

87 34

107 54 3

31 7 I 6 181 232

2708 129 56 15 35 9

22 3 a 24

10 1 5 10 3 a to 34

185 260 43 134 78

200

1622 155 23 7 8

111

17 a 26

242 5

84

33 lfr 2 2

27 15 22

78

711 63 I

417

238 1

69 I 7

15 10 67

38 4 a

102 11 18

21 4 11 12 12

174 312 130 225

1644

37 60 22 7

74

313 I 11 I II 2

123

2

23 29

18 24

403 9 46

283 5

60

412 I 4 1

135 I 28 57

44 8

33 7

8

80

693 59 11 3

bull 4 6

28 I 5 1

1~ I 16

17 10 3

37

11

95 333

314 60 50

139 79

448

1721 30 48

1107 2

534

350 I

132 14 70 48

14 13

-15 11 1

61

1324 117

45 18 22 42

67 18 50 11 87

9 49 61 23 6

50

796

i I I i

s 33 47

167 447 735

1752 70 10

11133 1

15 1

bull 524 1

I 99i I

bull 225 I 992 1

771 55 I

I 7

12 956 69

8

bull 391

449 58 5

1 1 2 I

I 31 2 I

45 i 1 1

15 i

4 3-I 4

I 8 I

2 I 31 20 I 34 6

28

5 23

42

3 4 i 2 i I I 4 I

I 11 2 i 8

II 28 26 I

13 4

12 1

12 1

2 I

12 I 2 I 4 I 1 I 1

4 1 4 I

1678 775 774

2419 805 696

4584 1 534

379 358

1 895

606 2468

940 1 230

834

1230 229

1300 1415

333 989

2921 6000 2356 3043 8727 1 909

9 000 3750 6839 1986 1750

1703

2457 1724 3800 3 000 8 000 3 000

1419 2 000

911 3000 2933

2800 4250 5 000

750 4625

12

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968-Continued [In current dollarsjt

I Relative burden I Other public expenditures I Armed forcesI

IMilitary ForeignGross expend- national Popu- Military GNP Public economic aid S Forces MilitaryIArmeditures product lation expend- per educa- Public expendshy

tion 23 (perhealth 2 ituresitures as capita forces thoupercent per manReceived Given

of GNP sand (million (million (million (million (million (thoushy(dolshy (million popushydollars) dollars) (millions) lars) dollars) dollars) dollars) dollars) sands) lation)

I(dollars)()

I

BY COUNTRY -Continued

AFRICA-Continued Malagasy Republic MalawL __ MaIL __ Mauritania Morocco_

Niger Nigeria____ Rhodesia Southern__ __ _ Senegal ____ Sierra leone __ __

Somali Republic __ __ __ South Africa Republic of Sudan __ __ Tanzania Togo ____

Tunisia Ugandabull Upper Volta~ __ Zambia ______

OCEANIA ____ Australia __ ___ New Zealand

13 780 I 247 5 264 8 172

76 2981

342 91 3

6000 21 1138 15 827

340

8 170 356 14020

74 1560 13 943 I 121

183 213 I 14 471048 16 994 81 -5 5 I257 20 1325 41

1054 31500 148 26600 120

9~ I 4900 I 28 I

70 43 48 11

146

38 535 49 38 25

27 192 148

Oeveloped country or region (Country without asterisk is developing) All countries in region are developing Rough ACDA estimate

None or negligible I For most countries conversion into US dollars Is at official par value exchange

rates as rounded by AID For all Communist and several developing countries esllmated purchaSing power panties are used (See Conversion Rates page 35)

Due to dilferences in concepls coverage and reliability data on public education and health expenditures do not permit accurate comparisons between countries or in some cases between years for the same country

3 Public expendHures on education in 1968 are ACDA estimates based primarily on dala for 1967 or earlier (See Educalion page 34)

Informallon on educational expenditures which are made outside of governmentbudgets is not available on a worldwide baSis The rellive importance of these expenditures vanes sharply from co~nlry to country In the United States private expe~dltures In 1968 were $118 billion or 20 of the total Private expendilures conslltut~d the follOWing percentages of total national expenditures In 1967 (or Ih indicated year) according to UNESCO estimates

EI Salvador ______ Sudan

Percent Percent Argenlina (1966) __ __ Australia ____ __ Canada ____ __ Chile (1966) bull China Republic of ~_ poundcuador bull __ __ __ __

51 38 23 28 29 34

Israel (I966)~ __ Japan _____ Jordan __Kenya __ _ Malawi _ __ Philippines_

26 20 14 70 15 24

23 __ ___ __ 27 Bhiopia (1966) 47 Venezuela __ __ _______ __ 27Greece ________ __ 39 Vietnam Republic of (1965) __ 58Guatemala _______ __ __ 25 Zambia (1966) __ __ 73India __ 44

In Communist countrie~ extramiddotbudgetary expenditures are also significan For example according 10 offiCial data education expenditures by state cooperative and trade union enterprises and collective farms in the Soviet Union make up about 13 percent of the total parental payments to childrens institutions and schools mayconstitute another 6 percent

17 III 49 15 44 4 58 II 4 26

19 55 10 4 20 47 154 4 8 25 204 106 40 124

9

I

90 I 5 29 15 112 132 [ 83 108 18 230 42 I 13 -3 18 220 29 14 48 9 137 9 3 111

47 62 3 I 26 I

25 731 450 195 47 106 69 22 I 29 14 78 30 13 34 14 120 4 2 13

13 16

224 122

i 57 I

15

I 15

14 I 88 20

lO 1 9 50 i 6 I 23 15 326

1

I 20 I e 18 51

I

33 2131 1 1303 I 921 157 36 18

2211 1 781

i

i 1132

171 697 224 i

157

I 4 I I

4 I

62

I 70 I 5 5 i

2

8 38 24 4 1

2 I 2 I 3 i

I I

97 84 shy13 I

4

3250 1000 1250 8000 1226

3000 1300 4200 3000 1500

1000 9368 3083 3250 3000

609 2667 2500 6667

10866 11524 6615

Public expenditures on health in 1968 are based in part on data for earlier years(See Health page 35)

As 10 educational expenditures Ihe portion of tolal health expenditures which is exlramiddotbudgetary varies greatly from country to country Scattered information suggests that on average Ihe private portion of health expenditures may be higherthan the private portion of education expenditures In the United States in 1968 private health expenditures amounted to $352 billion or 62 percent of total health expenditures

In Communist countries extramiddotbudgetary health expenditures are made by state cooperative and trade unum enterprises anj collective farms as well as households In the Soviet Union for example they constitute about 20 percent of total health expenditures according to official sources

Economic aid given by Communist countries to nonmiddotCommunist counlries is included in the world total of aid received It is not distributed by individual recipientcounlries or regions however as accurate data on such distribution are no available (See Foreign Economic Aid page 34_)

Military expenditures and GNP are not fully comparable due to the use of different dollar conversion rates lor the two variables in the Soviet Union (see footnote 9)Using the more valid ralios shown in parentheses for the Soviet Union and Ihe Warsaw Pact total the ratio for the world is eslimated to be 6-7 percent and for Europe 5-6 percent

1 Ineludes West Berlin Includes paramililary as well as regular forces The implied relationship between dollar amounts of Soviet GNP and military

expenditures (or GNP and public expenditures on educalion and health) is not valid due 10 the use of di~erent types of conversion rates lor GNP and particular sectors It is estimated Ihat the actual ratio of military expenditures to GNP would fall somemiddot where within the range indicated in parentheses the lower part of the range reflecting a comparison of military expenditures and GNP in faclormiddoteost ruble values and the upper estimate representing dollar values converted on a comparable basis (See Conversion Rates page 35)

10 Since either or both military expenditures and GNP estimates are approximations the resulting ratio should be viewed with particular caution

II For Sweden SWitzerland and Israel the high rate of military expendilures per man rellects small standing forces with a capability for extremely rapid mobilization of large reserve forces

13

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 5: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

CharI II MILITARY EXPENDITURES AND GNP

ESTIMATED IN CONSTANT PRICES

Index 1964 == 100 140r-1r~----r--~~

World Wide

bull 130 GNP total

--- shyMilitary 7 expendilures shy

120 bullbullbullbullbullbullbullbull ~

p~ t

110 Ji t _Y--GNP per capita

I Plloyen---------I-L----l

1964 65 r6i 67 68 69 70 140~_r--r_-r--T--r~

Developed Countries

shy130

GNP total I- 1P

120 ~- dJmiddot-1---bullbullbullbull

bull J

GNP per shy-t ----capita110 l--Military1 p expendItures

~ 10

1964 65 66 67 68 69 70 150r-1r---~-r~r-

d p

Developing Countries shy

140 1 Military l f shyexpenditures bullbullbullbullbull

130 ~I shy

hNP~total120

~

bull 1 I

110 ~GNP per capita

100~~~~~~--~~

1964 65 66 67 68 69 70 Estimated

percent Thus the 20 percent rise measures the real or physical increase in military effort since 1964 Some of the increase is reflected in the increased numbers of personnel in the armed forces which are up more than 10 percent some in investment in higher quality increasingly sophisticated military equipment The rise in expenditures includes strategic forces as well as the conventioIl11 forces which represent four-fifths of world military spending

The current survey produces no evidence that a widesprcad shift from military to civilian uses of resources has begun Nor docs the slower rate of increase in total military expenditures in the Pl1st 2 years reflect a worldwide tendency to restrict 8uch outlays In the vast majority of countries for which recent information is available there was a further rise in military budgets in current prices in 1970 While NATO spending went down largely as 11 result of a decrease in US defense expenditures the total for developed countries as a whole did not decline In developing countries as a group military expenditures again moved higher Thu8 developing countries continued as they had in the years preceding to inerease their share of world military outlays devoting to military programs funds that could have been allocated to economic development

More public funds continued to flow into milishytary programs than into public education or public health pIognuns for the yorIds pOJlulation of 36 billioll (chart III) In developing countries for example the increase in military spending in the period since 1964 represented the equivalent of 3 years expenditures on public education for the billion school-age children in those countries

The text below amplifies some of these summary points and provides additional information on global and regional trends and comparisons (See table I page 9) National datn are not compared here but may be found for 1968 nnd earlier years ill tables II through VI page8 10 to 30

The Trend of Military Expenditures

Military expenditures prodde a useful baromshyeter of the momentum of the arms race Howshyever th( yorId totnl like lll aHmgps may

The criteria llsed in classifying countries as developshying arc described in the Statistical ~otes page 32

2

Chart III

WORLO MILITARY AND OTHER PUBUC EXPENDITURES

1964 amp 1968 --------------------------------200

Billion current dollars

1964 -r50

1J68

~--~------~--oo

~----50

Military Education Health Foreign Economic

Aid

conceal geographic and other changes which are of major importance in gauging trends

Chart I shows trends in military expenditures in current prices for the ~odd (vertical hite bllrs) and for each of the major eategories of countries for whicb projections through 1970 are attempted It should be noted that the categories of countries shown on the charts are overlapping lVIost vVarshysaw Pact and NATO countries and some other countries are represented in the developed group Developed and developing countries together make up the world total as do KATO middotWnrSlW Pllct and the other category

The chart shows the NATO line in current prices declining after a rnpid rise from 1965 to 1968 Although the Warsaw Pact line continues on a slIlrp llI)nlld slant developed conntrirs as n whole hardly changed sp(1nding levels bctween 1969 Ilnd 1970

Chart II shows trends in military expenditures after allowance is made for tho effect of price ris(ls

(Correction for price changes on a worldwide basis is necessarily rough) Expressed in constant dollars military (lxpeuditnr(ls of developed COUllshy

tries are estimated to have leveled off between 1967 and 1969 and to have declined in 1970 led by a downturn in the NATO totnl This is the first such drop since ACDAs odd survey began in 1964 and a significant one in overall effect since expenditures of the developed conn tries acshycount for approximately 90 percent of world military spending

The trends in developing conntries as a group are rather different In current and even in constant prices the recent rapid increase of military spending in these countries has continll(ld Within this classification of countries however major differences in military expenditure trends are evident The rate of expnnsion of expendishytures is by far the shnrpest in the Nem East Smaller increases have occurred in the Fill East LnJin America and Africa In South Asia spending rates have ehanged relatively little sinee 1966

As chart II indieates in the developing countries as a whole the rate of in(Teast in military spending continues to outstrip the adnll1ce in GXP at tlw expense of populations hose an~llg() illeoIlw p(lr eapita is still barely $200 a year

Comparisons With Economic Growth

Since 1968 when th(l advance in wodd military expenditures began to moderate tho growth rute of world GNP hus been faster than the onrall rise in military spending (see chart II) As it

cons(lquence the shale of world GNP going to military programs has declined from 11 high of 71 p(lrcent in 1967 to 64 percent in 1970

This chango suggests that oHrall the military burden has beOul1 to lessen somewhat in relation

b

to the yorld economy On the oth~r hand dlllllg(ls onr time in the ratio of military spending to GNP must be evaluated cautiollsly both as meUSlrs of relative burden and HS indicators of arms l(strnint Economie groyth is JlopU lation-rela ted Unless the civilinn portion of world GNP-till innstm(lnt and consumption componont~-grows with rising population liying standards full Un(ss the eidlian portion adjust(d for tilr popushylation rise (lxpands with rising GNP lidllg stnndnrds hn ( not b(IWfi ted flllly from t h( growth di dd(lld

3

The record for 1970 as compared with 1964 the year of ACDAs first annual Sllvey shows that military eXJlenditures haye absorbod some of this growth diddend although the shure of world GNP that they tnke has diminished The changos expressed in dollar equivalonts are summarized in the table b(low

WORLD GROWTH DIVIDEND 1970 OVER 1964 (Billion dollars)

Increase in GNP in current dollars 1752 of which

price inflation 514 population increment

(valued at 1964 GNP per capitet) 288

Increase in GNP (adjusted for price and popnlation changes) (450)

of which increase in military expenditures 28

Leaving an actual growth dividend for civilian Uses of 422

In 1970 the dollar value of world GNP vas $1252 billion higher than in 1964 Price rises and population growth however accounted for It

major part of this apparent gain in yalue The increase in GKP when higher prices and larger popUlation are considered as $450 billion or only one-third of the apparent increase The increase in world arms spending in constant prices took $28 billion of this dividend J represell ting a larger share of real growth in devol oping thall in develshyoped countrios

As an indicator of arms restraint a downward trond in tho ratio of military expenJitures to GNP

Chart IV

SHARES OF WORLD TOTAL IN 1968

Developed countries Developing countries

Military Exps

Armed Forces

Population

GNP

Puhlic Education

Public Health

o 20 40 60 80 100 Per cent

is not sufficient With 1 rapidly growing oconomy even a declining ratio to GNP can cOllceal un inshytOllsified arms race

Compared with the immediate pre-World War II period military expenditures in 1970 probably took a somewhat smallor share of world GNP HOveeI the yorld economic base has boen so vastly cnlargod that todays share ropresents II

fonrfol(l increase in expenditures ill real terms as compared ith 1937 It is estimated that worldshywide military oxpenditures of 1937 based on a League of Nations study of that prewar yoar totnled about $ljO billion in 1970 prices in contrast to todays $204 billion

Developed and Developing Countries

Poorer countries suffer most from arms races For example military equipment which they proshyduce themselves may tap the high-quality 10shy

sources that are most noedod for investment in eivilian industry ~Iilitary oquipmont bought from abroad may take some foreign exchange that could have helped to modernize tho economy and improve living stawlards

For the past 6 years ACDAs survey shows military expenditures have grown eonsidorably faster ill developing tlum in developed countries The GNP increase in developing economies from 1964 to 1970 expressed in constant prices is substantial but the rate of growth per capita has beon less than that in developod countries

For the dceloping countries 11 calculation of the llnnual growth dividond similar to that shown in the table above for the world total reveals thLt they have devoted to military spending tice llS large a proportion of their GNP growth dividend as havo developed countries whell allowance is made for price increases and the more rapid population growth in the poorer countries Togcthor theso flletors have limited their actual growth dividend for civilian uses to a 6-year gain of only $30 per person In deshyveloped countries by eOlltrast the civilian inshycremen t from 1964 to 1970 was 16 times as mn ch or $469 per person

Chart IV illustrates the end-results of these tlends as of 1968 The 93 developing countries in ACDAs survey lopresented 73 percent of the worlds population but had only 17 percent of

4

Chart V

Dollars PER CAPITA EXPENDITURES FOR400------------------------shy MILITARY EDUCATION AND HEALTH BY REGION 1968

bull Military

bull Public Education

D Public Health Dollars

------------------------------------------------------------200

------------------------------------------------------100

NORTH EUROPE OCEANIA NEAR AMERICA EAST

current world income They accounted for only 7 percent of world public expenditures on henlth care and for 10 percent on education The inshyclusion of international economic assistance would of course add somewhat to the resources available to developing countries but the addition would represent a relatively minor proportion of their GNP All foreign economic aid loans as ell as grants amounts to less than 2 percent of GNP of developing countries

On the other hand the developing areas with their large populations accounted ill 1968 for more than half the 24 million men under arms in the world

While the budgeted military expenditures of the developing countries were only 12 percent of the world total in 1968 this is not the full amount that went into maintaining military forces in these countries Military aid contributions of the major powers are a significant supplement to the military expenditures of developing countries Military aid according to the standard budgetary conshycept of this report is counted among the military expenditures of the donors-not in the recipients military budgets In this respect the expenditure data and chart IV tend to understate the relative military capacity of the developing world

Growth rates recorded since 1964 (see table

FAR EAST LATIN AFRICA AMERICA

below) suggest that developing countries have gradually enlarged their share of world milishytary effort maintaining it rate of increase in pershysonnel in the armed forces as well as in military expenditures considerably larger than that of developed countries Howmer this expunsion of military effort was accompanied by a lowering of their relative economic standing when jlopulnshytion increase is taken into account

AVERAGE ANNUAL GROWTH RATES 1964-70

(Values in cunstant prices)

World Developed Developing

Military expenditures 2 8 2 3 ii 9 Armed forces 19 O 0 l i

Total GNP 4 9 4 8 j 7 Population 2 1 10 2) Civilian GNP per capita 30 4 0 1 1

GNP le6~ military expenditure

Other Public Expenditures

A comparison of world military expenditures with other pnblic expenditures such as public education public health and foreign economic assistance is set forth ill chart III (page 3) Reshygional comparisons are shown ill rhart V and national data may be found in statistical tables II and III Comprehensive data on private expendishytures on these civilian programs are not avail-

SOUTH ASIA

5

Chart VI

MILITARY EXPENDITURES AND ARMED FORCES 1964 amp 1968

80

1964 1968 60 6Expenditures (b j I 5)

~ ~ Forces (million men) shy c-0 QJ-0

EE c

0

~ c ~ 0

ii5

20

EUROPE FAR EAST

2

AFRICA OCEANIA

able See table II footnotes a and 4 for available data on private spending in individual countries

Manpower

Following a steady upward trend between 1964 and 1968 the number of men under arms began to decline in 1969 and 1970 At year-end total armed forces numbered an estimated 23 million about 05 million fewer than at the 1968 peak although still more than 2 million higher than in 1964

Chart VI shows the large numbers of active duty forces belonging to two of the seven geoshygraphic regions In 1968 almost 16 million or two-thirds of the men under arms were in the forces of European and Far Eastern countries North America ranked next with 36 million under arms and the Ncar East next with 18 million All regions increased forces between 1964 and 1968 the largest rise in absolute numbers being in the Far East

Both developing and developed countries havo increased military expenditures more rapidly than personnel The trend is to larger outlays per man in uniform even when allowance is made for price rises This rate of course varies widely among individual countries Chart VIII (page 31) showing several indicators for the 10 major military powers illustrates the range in expendishytures per man in uniform

In addition to the men and women serving directly in the armed forces military-related emshyployment remained high particularly in the inshydustrialized countries In Europe as a whole manshypower in the armed forces and in industries and trades related to military requirements was estishymated at almost 10 percent of the economically active population Worldwide manpower in the armed forces and in military-related employment in 1968 was close to 60 million a number equaling the total population of West Germany

6

418-790 0

DEFINITIONS OF TERMS

Gross National Product (GNP) represents an economys total output of goods and services valued at current market prices paid by the ultimate COIlsumer

JiilitarJ Expenditures are current and capital expenditures to meet the needs of the armed forces including expenditures of national defense agencies for military programs expenditures for the military components of such mLxed activities as atomic energy space ami research and development military assistance to foreign countries and expenditures on paramilitary forces where they contribute subshystantially to a countrys military capabilities

Foreign Economic Aid Reeeited by developing countries comprises official bilateral grants and loans (gross of repayments) disbursed by Development Assistance CommIttee (DAC) countries and net aid received from multilateral agencies (Aid received from Communist countnes is shmvn in the world total but is not included in country or regional totals) Aid given by DAC countries includes official bilateral aid and net contributions to multilateral agencies Aid given by Communist countries represents deliveries to non-Comshymunist developing countries only Aid from private sources and milishytary assistance are not included

Public Education Expenditures include current and capital expendishytures for preschool primary secondary and university-level educashytion Wherever possible expenditures by all levels of government are covered Private spending is not included

PIblie Health Etpenditlfs represent current expenditures (and whershyever possible capital expenditures) by all levels of government for the provision of medical services Private spending is not included

Armed Forces refer to military personnel actually on duty including paramilitary forces where these forces contribute substantially to 11

countrys military capabilities Reserve forces are not included

DeulopinJ OOlntrie~ 93 in number are the countries listed under Latin America the Far East except Japan South Asia and the Near East and Africa except the Republic of South Africa and also include in Europe Albania Bulgaria Greece Portugal Spain Turkey and Yugoslavia

Dueloped COllntric) 27 in number are the countries listld under North America Oceania European NATO except Greece Portugal and Turkey the Varsaw Pact except Bulgaria and include Austria Ireland Finland Sweden Switzerland Japan and South Africa

For further discussion of terms as used in this report ee Statistical Notes page 32

- 71 - 2 7

STATlSTICAL TABLES

Table I presents a summary of recent trends in two key indicators military expenditures and GNP by major groups of countries In order to provide as current a picture as present statistical resources permit estimates for 1969 and 1970 are included However since national data for the latter years are preliminary and incomplete these estimates are subject to revision The data in constant 1968 dollars are approximate estimates based on the use of average price and exchange rate adjustment factors for groups of countries and do not reflect adjustments by individual country

Table II is the basic table showing a variety of data on each of 120 individual countries in 1968

the latest year for which data are available on a worldwide basis Table III shovs some of these same data expressed on a per capita basis Hisshytorical trends by country and year 1964-68 are presented in table IV (military expenditures and GNP) and table V (armed forces)

Table VI ranks the first 30 countries of the world in terms of six main factors of military and economic strength

Chart VII RELATIVE BURDEN OF MILITARY EXPENDITURES 1968

ll Z G LI o tf CIl laquo CIl lLJ 0 gt l-e z lLJ ll X lLJ

gtshy0 laquo IshyJ E

OVER 10

5-10

~------

2-5

---~~-

1-2

UNDER 1

UNDER $100middot

1~0$

BURMA

CHAO CONGO

KlNSUA5A DAHOMEY ETHiOP(A HIIII INDIA INOllNJSIAsbt1Ju

REPUBliC UGANOA

AfGflANISTAN MAll tANZANIA u~PEflOtTil

~ -~

tfALAN1 NEPAL NIGet

$100-199

UNITED AS

R9II1JIIC YIETNAM

NORTH VIETtiAM

IEPU911COF

CAMBQI)IA CHINA

MAINLANO

BOLIVIA CAMEROON GIJINEA (ORA

REPfBtlC OF MAIIRUANIA PAKISTAN SUIAti TIAlIANO YEMEN

CENTRAL AFRICAN REPIlBlIC

KENVil MAUGASY

RtII~LlC NERIA TOGO

CEYLON SIERRA LEDflE

GROSS NATIONAL PRODUCT PER CAPITA

$200-299 $300-499 $500-999 $1000-1999 i $2000-2999 OVER$3000

cmNA SAUDI ARABIA ISRAEl REItf811COF

IRAQ IJORDAN

KOREA NORTH

___ f -------- shy--~------

UlAN IALBANIA CUBA POLAND UNITED SYRIMtARAB PORTUGAL USSR STATES

REPUBLIC UNITED KINGDOM

ALGERIA BRAZIL CHILE BULGARIA AUSTRALIA CANADA CONGO LEBAtiON GREECE CZECHOmiddot BElGIUM KUWAIT

BRAZllVILLE MALAYSIA SOUlli AFRICA SLOVAKIA DENMARK SWEDEN MM1NICtN MONGOLIA REPUBLIC OF GERMANY EAST FRANCE

I BUe fRU SfAIN HUNGARY GERMANY GHANA TURKEY VENEZUElA ITALY WEST MOROCCO YUGOSLAVIA NETHERLANDS NORWAY

ROMANIA SWITZERLAND

___ shy _-shy --------COLOMelA QABON ARGENTINA AUSTRIA LUXEMBOURG ECUADOR IVORY COAST CYIRUS FINLAND ElSALVA[)OR IllCARIGUA URUGUAY LIBYA GUATEMALA ZAMBIA NEW ZEALAND HONDURAS lIIiiRIA PARAGUAY PHilI PPI NES RHODpoundSIA

$OUTHERN SENEGAL nJfUSIA

-~------ shyCOSTA RICA Msueo IRELAND ICELANO GUYANA PANAMA JAPAN JAMAICA TRINIDAD amp

I TOBAGO

I

C_~1____l1li11II1II_________111l1li_______IIII_I_UIIIIJ_IIIIIJIIIIbull __IIIII11IIIIIIII1IIIIIIII1III11III1I1I11i11111lflllll1illliililil_-__

8

TABLE I-SUMMARY TRENDS IN MILITARY EXPENDITURES AND GNP 1964-70

Military Expenditures Gross National Product

1964 1965 1966 1967 1968 1969 1970 1964 1965 1966 1967 1968 1969 1970 est est est est

TOTAL

(Billions of Current Dollars)

WORLD 140 144 161 180 191 199 204 1936 2106 2301 2464 2685 2936 3188 Developed 125 127 143 160 169 175 177 1603 1734 1907 2048 2235 2421 2625 Developing _ 15 17 18 20 22 24 27 333 372 394 416 450 515 563

NATO __ _ 73 74 86 100 105 106 103 1073 1165 1268 1352 1462 1587 l681 Warsaw Pact 49 51 54 57 61 66 71 397 428 466 506 553 593 655 Other _ 18 19 21 23 25 27 30 466 513 567 606 670 756 852

811110ns of Constantl968 Dollars) (

WORLDbullbullbull _bullbullbullbullbullbullbull 158 159 172 188 191 192 186 22112 2325 2452 25711 2685 2830 2940 Developedbullbullbullbullbullbullbullbullbull _bullbull 141 141 154 168 169 169 162 1838 1936 2047 2148 2235 2346 2431 Devl1lopingbull __ ____ ______ bull____ 17 18 18 20 22 23 24 364 389 405 422 4511 484 509

NATObullbullbullbullbull __ bullbullbullbullbullbullbullbull __ 83 82 92 105 105 102 94 1231 1301 1360 1418 1462 1539 1558 Warsaw PacL__ ________ bull__ 55 56 58 59 61 63 64 446 472 501 526 553 566 594 Other__ ____ bull ________ bull __ bull __ 20 21 22 24 25 27 28 525 552 591 626 670 725 788

PER CAPITA

(Current Dollars)

WORLD __ 43 44 48 52 54 56 56 599 637 682 716 765 820 873 Developed _ ___ 134 135 151 167 174 179 180 1725 1 845 2009 2126 2310 2479 2666 Deyeloping __ 7 7 9 10 145 157 163 168 177 198 211

NATO _ 145 146 168 193 201 201 192 2139 2295 2469 2607 2792 3003 3151 Warsaw Pact 151 153 162 169 180 192 205 1213 1292 1398 1501 1626 1730 1897 Other __ ____ 7 8 9 9 10 11 194 208 224 235 253 279 307

(Comltanll968 Dollars)

WORlD____ __ bull _bull _____ bullbull ______ 49 48 51 55 54 54 51 682 703 727 747 765 790 805 Oeveloped ______ bullbull __ __ __ _____ bullbull 152 150 162 175 174 173 164 1978 2060 2157 2230 2310 2402 2469 Developlnllbull __ _____ __ bull ______ 7 8 8 8 9 9 9 158 165 167 170 177 186 191

NATO bullbull _ __ __ bull____________ _ bull ___ bull __ 165 162 180 202 201 194 177 2455 2563 2648 2734 2792 2911 2921 Warsaw PacL ________ ___________ 170 169 174 176 180 183 186 1362 1425 1502 1562 1626 1 652 1718 other _ ______ _____ __ 8 8 9 9 9 10 10 219 224 234 242 253 268 284

9

----

___

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968 [I n current dollars)

Relative burden Other public expend itures Armed forces

GrossMilitary ForcesforeignPopu- Militarynationalexpend-

MilitaryArmedeconomic aidPublic Publicexpend- GNPproductitures lation expend-health 14 forcesper educashyitures as

(per iturestion 23percent capita thou- per manReceived Givenof GNP sand

(thoushy popushy(million (million(million(million(dolshy(million(million (dollars)lation)sands)dollars) dollars)dollars)lars) dollars)dollars) (millions) ()dollars)

SUMMARY

WORLD TOT AL ---- Developed DEvEloping ----- shy

NORTH AMERICAmiddot - - - ---~ - shy

EUROPL Developed Developing

LATIN AMERiCAmiddotmiddot shy ~ --~

FAR EASL Developed - -_ - ~ ~

Developing_

SOUTH ASiA --

NEAR EAST _ - - ~ ~ ~

AFRICA - - - - _ shyDeveloped - - shy

~ ~ shy

_ -~ Developing

OCEANIA

WORLD TOTAL __ ____

NORTH AMERICA_ __ United Statesmiddot __ Canadamiddotbull _ __

EUROPL

NATO European Belgium __ __ Denmark France Germany WesP _____

Greece Icelandmiddot _ Italy __ Luxembourg Netherlands __

See footnotes at end 01 table

65521 60769 4752

23788

37051 35552 1499

1364

889 313 576

403

412

693 195 498

921

86387382

~ 8541 7382 97

shy 4282

576 3353 ~ 3306

47

1410

576

~

1551 846 796-50

1721

350

1324

1551

~

I 324

shy 157

23819 7 10973 II 12846 5

3602 16

8612 12 6986 II 1626 14

1153 4

7161 6 250 2

6911 6

1752 3

993 11 i

449 2 38 2

411 2

i 97 7 I

I

800 15381 170

2287o

1008 12002 1872

1938

1618 4584 I 573

1230

2921

2457 9368 1818

10866

190733 168779 21954

82379

86888 83844 3044

2235

12018 1146

10872

2155

2901

1103 356 747

1054

190733

82379 80596 I 783

86888

22668 602 345

6118 5278

367

2245

90 I

2685006 2234940

450066

931800

1185000 1115700

69300

113551

281335 141 920 139415

62090

29594

50130 14020 36 110

31500

2685006

931800 865700 66 100

1185000

529900 20700 12400

126600 132700

7600 500

74800 800

25 200

35091 9675

25416

221 9

7256 6106 1150

2617

12338 10LO

11327

6892

91 5

2708 192

2516

148

I

35091

221 9 201 2 208

7256

I 3016 I

96 50

499 602

I

88

21 528

3 127 1

71 72 49

118

73 75 44

20

43 8

78

35

98

22 25 21

33

765 2310

177

4199

1633 1827

603

434

228 1404

123

90

324

185 731 144

2131 i

BY COUNTRY

611

118 93 27

73

43 29 28 48 40

48

30 10 36

7651

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 I 418 2381 I 978

130172 117313 12859

50815

60318 58745 1573

2567

11138 6000 5138

1324

1085

1622 450

1172

1303

130172

50815 46400 4415

60318

17883 893 600

3354 3863

157 12

2730 29

1214

65521 7 382 1

J23788 4282 I

21 382 4 048 1 2406 234

8008

22870 23027 17480

100898612 12

7491 99

103026 10 6081

46 7500 505

9 12 115

486 10

108608

18 2280161

510244~ t 8000

129 i 10 3

7023

37051

15327 530 670 292

6874

middot90 5

696 -20 973

3353576

2829

-I 93 313

29 980 755 i

72

257

~I 139

10

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued I n current dollars]

Relative burden i Other public expenditures 1

Armed lorces

I---I--~-~I----Imiddot ----------shyMilitary Gross Popushy Military Foreign Forces i

Ituresexpendmiddot national

product lation expend GNP Public Public economic aid Armed Military itures as per educa- health 24 bull lorces Iexpend-percent capita tlon 3 1 (per itures 01 GNP Received Given thoumiddot per man

sand) (million (million (dolshy (million (million (million (million (thou- popumiddotdollars) dollars) (millions) () lars) dollars) dollars) dollars) dollars) I sands) lalion) I (dollars)

BY COUNTRY~Continued

NATO-Continued Norway Portugal _ Turkey United Kindgom

322 359 573

5545

9 000 5000

11600 103000

38 95

335 553

36 72 49 54

2357 528 346

1863

403 57

321 4450

180 79

139 4779

241

24 47

505

35 183 514 427

9 19 15 8

9200 1 962 1115

12986

NATO Total 105047 1461700 5235 72 2792 68698 39117 313 7 III 6628 13 15849

Warsaw PacL Bulgaria __ Czechoslovakia _ Germany East __ ___ Hungary _____ __

61 100 300

1 360 1 450

340

553200 9100

28400 30800 13800

3402 84

144 171 103

(7-9) 33 48 47 25

1626 1083 1972 1801 1340

38604 367

1093 I 031

580

18281 272 982 792 339

400

100

4783 173 265 196 l37

14 21 18 II 13

12774 1734 5132 7398 2482

Poland__ ____ __ __ _ Romania __ Soviet Union

1950 700

55000

37400 20700

413000

323 197

2380

521158 34 1051

(8-10) 1735

1643 890

33000

1396 600

13900 300

319 223

3470

10 II 15

6113 3139

15850

Other European Albania ___ Austria _ Finland _ _ __ _ Ireland _

3120 76

150 156

27

101900 800

11400 8 000 3 000

838 20 74 47 29

31 1095

13 2 a 9

I 216 400

1551 1706 1 031

3831 70

402 585 110

3443 30 567 344

ll4

263 124

31

803 51

50 39

10

10 26 7 8 3

3885 1490 3 000 4000 2700

Spain _ Sweden_ _ Switzerland _ Yugoslavia _

913 977 365 456

25200 26300 17200 10000

3261 79 61

202

36 37 21 46

773 3322 2798

496

290 1486

577 3ll

403 1 070

429 486

181

82

72 21

305 78 31

239

91 10 5

12

2993 u 12526 11 11774

1908

LATIN AMERICA __ Argentina _ Bolivia _ BraziL_ Chile _ Colombia _

2235 380 17

651 127 98

113557 171l1

786 27353 5670 5638

261 7 236 44

802 92

198

20 22 22 24 22 17

434 725 177 310 614 284

2567 I 346

25 169 205 111

1364 26 3

81 155

96

1410 15 52

319 220 170

1153 8144

18 225 63 55

4 6 4 3 7

1938 2639

944 2893 2016 1782

Cost Ricbull _ _ Cuba bullbull ___ __ _ Dominican Republic_ _ Ecuadoc ___ EI Salvador

300 30 26 10

734 bull 5 000

1169 1475

930

16 76 4 a 57 32

106 a 26 18 11

449 658 295 259 290

33 281

26 35 24

20 60 -14

6 14

15 1

54 28 10

394 18 17 6

52 5 3 2

761 1667 1529 1667

Guatemala _ __ Guyana _ _ HaitL __ Honduras _ Jamaica _

16 2

1500 215 326 621 951

5 a 7

50 25 L9

11 9

21 14 5

299 303

65 245 497

27 8 3

17 22

34 8 4 7

17

24 16 6

15 28

9 1 5

2 1 1 2 1

1778 2000 1 400 1800 2500

Mexico_ Nicaragua __ _ Panama _ __ Paraguay _ Peru ____

184 10 1

10 132

26310 697 826 511

4287

473 19 14 22

128

7 14 1

20 31

557 374 602 229 336

504 16 33 9

151

316 5

16 3

51

210 19 19 23 57

70 i6

13 50

6

2629 1667

769 2640

Trinidad amp Tobago __ Uruguay_ bull Venezuela

3 23

194

748 1589 9110

10 28 97

4 14 21

726 564 941

19 13

396

10 21 78

1 13

38

3 000 1 769 5105

See footnotes at end of table

11

TABLE It-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued (I n current dollars) 1

Military expendshy

itures

Gross national product

Popushylation

Relative burden Other public expenditures

I

I Public

ForeignMilitary GNP Public economic aid S expendshy per I educashyitures as I capita 1 tion Zbull1 I health

Armed forces

I 1Forces Armed 1 Military forces 1 flfer expend-

percent I Received Given 1 taumiddot itures of GNP 1 sand I per man

(million (million I

(dol- (million (million (million (million I (thou- popushy1dollars) dollars) I(millions) () lars)

dollars) dollars) 1 dollars) dollars) I sands) lation) (dollars)

I I

__------_--

FAR EAST Burma Cambodia China Mainland China Republic 01 Indonesia

Japan+ Korea North Korea Republic oL Laos Malaysia

Mongolia Philippines Thailand Vietnam North Vietnam Republic of

SOUTH ASiA Afghanista n Ceylon India NepaL Pakistan

NEAR EAST Cyprus Iran Iraq I srae __ Jordan I

Kuwait I lebanon Saudi Arabia Syrian Arab Republic -

Yemen

United Arab Republic

AFRICA 0shy

Algeria Cameroon Cenlral African Republic Chad Congo (Brazzaville)

Congo (Kinshasa) Dahomey __ I Ethiopia Gabon Ghana _

Guinea __ Ivory Coast Kenya liberia libya

See footnotes at end of table

middot20 116 157

550 613

2155 16 13

1603 5

518

2901 I 6

530

280 I 672 105

63 45 I

383 i 137 I 14 I 666 I

1103 1

100 I 19 I 3

8 1

6 I

44 I 4

41 I 3

44 i

14 I 17 I 15 I 3 I

37 I

575 I 7276 1 5512

2300 3050

62090 1370 1781

43 000 800

15139

29594 1 438

8 020 I 2400 i 4042

575 i

2220 i

1 424 2200 I 1425

550

5740

50130 3365

800 200 270 174

1330 182

1534 200

1 994

669 1242 1330

254 2965

BY COUNTRY--Continued

12338 264 66

806 a 141

1137

43 57 66

F 8 3 101 29

4 000 99

100

101 1 134 305

28 103

8 10180

41 168 32

1 404 I 261 188 I 721

326 I

6000 100 110

7 140

12 359 351 193 174

1[gt 35 16 28

10 239 20 I

479 I 203 157 i 119

175 I

198 168 91

32

6892 161 120

5271 107

1234

35 12 7

37 6

34

90 1 85 I

149

82 I 75

123 I

1324 6

66 1 130

4 118

91 5 6

27 I 86 27 2 I

98 14 66

117 166 183

324 704 296 278

1472 I 274

1085 9

182 133 225

19

5 27 46 57 5 a

28 32

174 96

) 2 5

4111 519 478 250 110

87 34

107 54 3

31 7 I 6 181 232

2708 129 56 15 35 9

22 3 a 24

10 1 5 10 3 a to 34

185 260 43 134 78

200

1622 155 23 7 8

111

17 a 26

242 5

84

33 lfr 2 2

27 15 22

78

711 63 I

417

238 1

69 I 7

15 10 67

38 4 a

102 11 18

21 4 11 12 12

174 312 130 225

1644

37 60 22 7

74

313 I 11 I II 2

123

2

23 29

18 24

403 9 46

283 5

60

412 I 4 1

135 I 28 57

44 8

33 7

8

80

693 59 11 3

bull 4 6

28 I 5 1

1~ I 16

17 10 3

37

11

95 333

314 60 50

139 79

448

1721 30 48

1107 2

534

350 I

132 14 70 48

14 13

-15 11 1

61

1324 117

45 18 22 42

67 18 50 11 87

9 49 61 23 6

50

796

i I I i

s 33 47

167 447 735

1752 70 10

11133 1

15 1

bull 524 1

I 99i I

bull 225 I 992 1

771 55 I

I 7

12 956 69

8

bull 391

449 58 5

1 1 2 I

I 31 2 I

45 i 1 1

15 i

4 3-I 4

I 8 I

2 I 31 20 I 34 6

28

5 23

42

3 4 i 2 i I I 4 I

I 11 2 i 8

II 28 26 I

13 4

12 1

12 1

2 I

12 I 2 I 4 I 1 I 1

4 1 4 I

1678 775 774

2419 805 696

4584 1 534

379 358

1 895

606 2468

940 1 230

834

1230 229

1300 1415

333 989

2921 6000 2356 3043 8727 1 909

9 000 3750 6839 1986 1750

1703

2457 1724 3800 3 000 8 000 3 000

1419 2 000

911 3000 2933

2800 4250 5 000

750 4625

12

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968-Continued [In current dollarsjt

I Relative burden I Other public expenditures I Armed forcesI

IMilitary ForeignGross expend- national Popu- Military GNP Public economic aid S Forces MilitaryIArmeditures product lation expend- per educa- Public expendshy

tion 23 (perhealth 2 ituresitures as capita forces thoupercent per manReceived Given

of GNP sand (million (million (million (million (million (thoushy(dolshy (million popushydollars) dollars) (millions) lars) dollars) dollars) dollars) dollars) sands) lation)

I(dollars)()

I

BY COUNTRY -Continued

AFRICA-Continued Malagasy Republic MalawL __ MaIL __ Mauritania Morocco_

Niger Nigeria____ Rhodesia Southern__ __ _ Senegal ____ Sierra leone __ __

Somali Republic __ __ __ South Africa Republic of Sudan __ __ Tanzania Togo ____

Tunisia Ugandabull Upper Volta~ __ Zambia ______

OCEANIA ____ Australia __ ___ New Zealand

13 780 I 247 5 264 8 172

76 2981

342 91 3

6000 21 1138 15 827

340

8 170 356 14020

74 1560 13 943 I 121

183 213 I 14 471048 16 994 81 -5 5 I257 20 1325 41

1054 31500 148 26600 120

9~ I 4900 I 28 I

70 43 48 11

146

38 535 49 38 25

27 192 148

Oeveloped country or region (Country without asterisk is developing) All countries in region are developing Rough ACDA estimate

None or negligible I For most countries conversion into US dollars Is at official par value exchange

rates as rounded by AID For all Communist and several developing countries esllmated purchaSing power panties are used (See Conversion Rates page 35)

Due to dilferences in concepls coverage and reliability data on public education and health expenditures do not permit accurate comparisons between countries or in some cases between years for the same country

3 Public expendHures on education in 1968 are ACDA estimates based primarily on dala for 1967 or earlier (See Educalion page 34)

Informallon on educational expenditures which are made outside of governmentbudgets is not available on a worldwide baSis The rellive importance of these expenditures vanes sharply from co~nlry to country In the United States private expe~dltures In 1968 were $118 billion or 20 of the total Private expendilures conslltut~d the follOWing percentages of total national expenditures In 1967 (or Ih indicated year) according to UNESCO estimates

EI Salvador ______ Sudan

Percent Percent Argenlina (1966) __ __ Australia ____ __ Canada ____ __ Chile (1966) bull China Republic of ~_ poundcuador bull __ __ __ __

51 38 23 28 29 34

Israel (I966)~ __ Japan _____ Jordan __Kenya __ _ Malawi _ __ Philippines_

26 20 14 70 15 24

23 __ ___ __ 27 Bhiopia (1966) 47 Venezuela __ __ _______ __ 27Greece ________ __ 39 Vietnam Republic of (1965) __ 58Guatemala _______ __ __ 25 Zambia (1966) __ __ 73India __ 44

In Communist countrie~ extramiddotbudgetary expenditures are also significan For example according 10 offiCial data education expenditures by state cooperative and trade union enterprises and collective farms in the Soviet Union make up about 13 percent of the total parental payments to childrens institutions and schools mayconstitute another 6 percent

17 III 49 15 44 4 58 II 4 26

19 55 10 4 20 47 154 4 8 25 204 106 40 124

9

I

90 I 5 29 15 112 132 [ 83 108 18 230 42 I 13 -3 18 220 29 14 48 9 137 9 3 111

47 62 3 I 26 I

25 731 450 195 47 106 69 22 I 29 14 78 30 13 34 14 120 4 2 13

13 16

224 122

i 57 I

15

I 15

14 I 88 20

lO 1 9 50 i 6 I 23 15 326

1

I 20 I e 18 51

I

33 2131 1 1303 I 921 157 36 18

2211 1 781

i

i 1132

171 697 224 i

157

I 4 I I

4 I

62

I 70 I 5 5 i

2

8 38 24 4 1

2 I 2 I 3 i

I I

97 84 shy13 I

4

3250 1000 1250 8000 1226

3000 1300 4200 3000 1500

1000 9368 3083 3250 3000

609 2667 2500 6667

10866 11524 6615

Public expenditures on health in 1968 are based in part on data for earlier years(See Health page 35)

As 10 educational expenditures Ihe portion of tolal health expenditures which is exlramiddotbudgetary varies greatly from country to country Scattered information suggests that on average Ihe private portion of health expenditures may be higherthan the private portion of education expenditures In the United States in 1968 private health expenditures amounted to $352 billion or 62 percent of total health expenditures

In Communist countries extramiddotbudgetary health expenditures are made by state cooperative and trade unum enterprises anj collective farms as well as households In the Soviet Union for example they constitute about 20 percent of total health expenditures according to official sources

Economic aid given by Communist countries to nonmiddotCommunist counlries is included in the world total of aid received It is not distributed by individual recipientcounlries or regions however as accurate data on such distribution are no available (See Foreign Economic Aid page 34_)

Military expenditures and GNP are not fully comparable due to the use of different dollar conversion rates lor the two variables in the Soviet Union (see footnote 9)Using the more valid ralios shown in parentheses for the Soviet Union and Ihe Warsaw Pact total the ratio for the world is eslimated to be 6-7 percent and for Europe 5-6 percent

1 Ineludes West Berlin Includes paramililary as well as regular forces The implied relationship between dollar amounts of Soviet GNP and military

expenditures (or GNP and public expenditures on educalion and health) is not valid due 10 the use of di~erent types of conversion rates lor GNP and particular sectors It is estimated Ihat the actual ratio of military expenditures to GNP would fall somemiddot where within the range indicated in parentheses the lower part of the range reflecting a comparison of military expenditures and GNP in faclormiddoteost ruble values and the upper estimate representing dollar values converted on a comparable basis (See Conversion Rates page 35)

10 Since either or both military expenditures and GNP estimates are approximations the resulting ratio should be viewed with particular caution

II For Sweden SWitzerland and Israel the high rate of military expendilures per man rellects small standing forces with a capability for extremely rapid mobilization of large reserve forces

13

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 6: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

Chart III

WORLO MILITARY AND OTHER PUBUC EXPENDITURES

1964 amp 1968 --------------------------------200

Billion current dollars

1964 -r50

1J68

~--~------~--oo

~----50

Military Education Health Foreign Economic

Aid

conceal geographic and other changes which are of major importance in gauging trends

Chart I shows trends in military expenditures in current prices for the ~odd (vertical hite bllrs) and for each of the major eategories of countries for whicb projections through 1970 are attempted It should be noted that the categories of countries shown on the charts are overlapping lVIost vVarshysaw Pact and NATO countries and some other countries are represented in the developed group Developed and developing countries together make up the world total as do KATO middotWnrSlW Pllct and the other category

The chart shows the NATO line in current prices declining after a rnpid rise from 1965 to 1968 Although the Warsaw Pact line continues on a slIlrp llI)nlld slant developed conntrirs as n whole hardly changed sp(1nding levels bctween 1969 Ilnd 1970

Chart II shows trends in military expenditures after allowance is made for tho effect of price ris(ls

(Correction for price changes on a worldwide basis is necessarily rough) Expressed in constant dollars military (lxpeuditnr(ls of developed COUllshy

tries are estimated to have leveled off between 1967 and 1969 and to have declined in 1970 led by a downturn in the NATO totnl This is the first such drop since ACDAs odd survey began in 1964 and a significant one in overall effect since expenditures of the developed conn tries acshycount for approximately 90 percent of world military spending

The trends in developing conntries as a group are rather different In current and even in constant prices the recent rapid increase of military spending in these countries has continll(ld Within this classification of countries however major differences in military expenditure trends are evident The rate of expnnsion of expendishytures is by far the shnrpest in the Nem East Smaller increases have occurred in the Fill East LnJin America and Africa In South Asia spending rates have ehanged relatively little sinee 1966

As chart II indieates in the developing countries as a whole the rate of in(Teast in military spending continues to outstrip the adnll1ce in GXP at tlw expense of populations hose an~llg() illeoIlw p(lr eapita is still barely $200 a year

Comparisons With Economic Growth

Since 1968 when th(l advance in wodd military expenditures began to moderate tho growth rute of world GNP hus been faster than the onrall rise in military spending (see chart II) As it

cons(lquence the shale of world GNP going to military programs has declined from 11 high of 71 p(lrcent in 1967 to 64 percent in 1970

This chango suggests that oHrall the military burden has beOul1 to lessen somewhat in relation

b

to the yorld economy On the oth~r hand dlllllg(ls onr time in the ratio of military spending to GNP must be evaluated cautiollsly both as meUSlrs of relative burden and HS indicators of arms l(strnint Economie groyth is JlopU lation-rela ted Unless the civilinn portion of world GNP-till innstm(lnt and consumption componont~-grows with rising population liying standards full Un(ss the eidlian portion adjust(d for tilr popushylation rise (lxpands with rising GNP lidllg stnndnrds hn ( not b(IWfi ted flllly from t h( growth di dd(lld

3

The record for 1970 as compared with 1964 the year of ACDAs first annual Sllvey shows that military eXJlenditures haye absorbod some of this growth diddend although the shure of world GNP that they tnke has diminished The changos expressed in dollar equivalonts are summarized in the table b(low

WORLD GROWTH DIVIDEND 1970 OVER 1964 (Billion dollars)

Increase in GNP in current dollars 1752 of which

price inflation 514 population increment

(valued at 1964 GNP per capitet) 288

Increase in GNP (adjusted for price and popnlation changes) (450)

of which increase in military expenditures 28

Leaving an actual growth dividend for civilian Uses of 422

In 1970 the dollar value of world GNP vas $1252 billion higher than in 1964 Price rises and population growth however accounted for It

major part of this apparent gain in yalue The increase in GKP when higher prices and larger popUlation are considered as $450 billion or only one-third of the apparent increase The increase in world arms spending in constant prices took $28 billion of this dividend J represell ting a larger share of real growth in devol oping thall in develshyoped countrios

As an indicator of arms restraint a downward trond in tho ratio of military expenJitures to GNP

Chart IV

SHARES OF WORLD TOTAL IN 1968

Developed countries Developing countries

Military Exps

Armed Forces

Population

GNP

Puhlic Education

Public Health

o 20 40 60 80 100 Per cent

is not sufficient With 1 rapidly growing oconomy even a declining ratio to GNP can cOllceal un inshytOllsified arms race

Compared with the immediate pre-World War II period military expenditures in 1970 probably took a somewhat smallor share of world GNP HOveeI the yorld economic base has boen so vastly cnlargod that todays share ropresents II

fonrfol(l increase in expenditures ill real terms as compared ith 1937 It is estimated that worldshywide military oxpenditures of 1937 based on a League of Nations study of that prewar yoar totnled about $ljO billion in 1970 prices in contrast to todays $204 billion

Developed and Developing Countries

Poorer countries suffer most from arms races For example military equipment which they proshyduce themselves may tap the high-quality 10shy

sources that are most noedod for investment in eivilian industry ~Iilitary oquipmont bought from abroad may take some foreign exchange that could have helped to modernize tho economy and improve living stawlards

For the past 6 years ACDAs survey shows military expenditures have grown eonsidorably faster ill developing tlum in developed countries The GNP increase in developing economies from 1964 to 1970 expressed in constant prices is substantial but the rate of growth per capita has beon less than that in developod countries

For the dceloping countries 11 calculation of the llnnual growth dividond similar to that shown in the table above for the world total reveals thLt they have devoted to military spending tice llS large a proportion of their GNP growth dividend as havo developed countries whell allowance is made for price increases and the more rapid population growth in the poorer countries Togcthor theso flletors have limited their actual growth dividend for civilian uses to a 6-year gain of only $30 per person In deshyveloped countries by eOlltrast the civilian inshycremen t from 1964 to 1970 was 16 times as mn ch or $469 per person

Chart IV illustrates the end-results of these tlends as of 1968 The 93 developing countries in ACDAs survey lopresented 73 percent of the worlds population but had only 17 percent of

4

Chart V

Dollars PER CAPITA EXPENDITURES FOR400------------------------shy MILITARY EDUCATION AND HEALTH BY REGION 1968

bull Military

bull Public Education

D Public Health Dollars

------------------------------------------------------------200

------------------------------------------------------100

NORTH EUROPE OCEANIA NEAR AMERICA EAST

current world income They accounted for only 7 percent of world public expenditures on henlth care and for 10 percent on education The inshyclusion of international economic assistance would of course add somewhat to the resources available to developing countries but the addition would represent a relatively minor proportion of their GNP All foreign economic aid loans as ell as grants amounts to less than 2 percent of GNP of developing countries

On the other hand the developing areas with their large populations accounted ill 1968 for more than half the 24 million men under arms in the world

While the budgeted military expenditures of the developing countries were only 12 percent of the world total in 1968 this is not the full amount that went into maintaining military forces in these countries Military aid contributions of the major powers are a significant supplement to the military expenditures of developing countries Military aid according to the standard budgetary conshycept of this report is counted among the military expenditures of the donors-not in the recipients military budgets In this respect the expenditure data and chart IV tend to understate the relative military capacity of the developing world

Growth rates recorded since 1964 (see table

FAR EAST LATIN AFRICA AMERICA

below) suggest that developing countries have gradually enlarged their share of world milishytary effort maintaining it rate of increase in pershysonnel in the armed forces as well as in military expenditures considerably larger than that of developed countries Howmer this expunsion of military effort was accompanied by a lowering of their relative economic standing when jlopulnshytion increase is taken into account

AVERAGE ANNUAL GROWTH RATES 1964-70

(Values in cunstant prices)

World Developed Developing

Military expenditures 2 8 2 3 ii 9 Armed forces 19 O 0 l i

Total GNP 4 9 4 8 j 7 Population 2 1 10 2) Civilian GNP per capita 30 4 0 1 1

GNP le6~ military expenditure

Other Public Expenditures

A comparison of world military expenditures with other pnblic expenditures such as public education public health and foreign economic assistance is set forth ill chart III (page 3) Reshygional comparisons are shown ill rhart V and national data may be found in statistical tables II and III Comprehensive data on private expendishytures on these civilian programs are not avail-

SOUTH ASIA

5

Chart VI

MILITARY EXPENDITURES AND ARMED FORCES 1964 amp 1968

80

1964 1968 60 6Expenditures (b j I 5)

~ ~ Forces (million men) shy c-0 QJ-0

EE c

0

~ c ~ 0

ii5

20

EUROPE FAR EAST

2

AFRICA OCEANIA

able See table II footnotes a and 4 for available data on private spending in individual countries

Manpower

Following a steady upward trend between 1964 and 1968 the number of men under arms began to decline in 1969 and 1970 At year-end total armed forces numbered an estimated 23 million about 05 million fewer than at the 1968 peak although still more than 2 million higher than in 1964

Chart VI shows the large numbers of active duty forces belonging to two of the seven geoshygraphic regions In 1968 almost 16 million or two-thirds of the men under arms were in the forces of European and Far Eastern countries North America ranked next with 36 million under arms and the Ncar East next with 18 million All regions increased forces between 1964 and 1968 the largest rise in absolute numbers being in the Far East

Both developing and developed countries havo increased military expenditures more rapidly than personnel The trend is to larger outlays per man in uniform even when allowance is made for price rises This rate of course varies widely among individual countries Chart VIII (page 31) showing several indicators for the 10 major military powers illustrates the range in expendishytures per man in uniform

In addition to the men and women serving directly in the armed forces military-related emshyployment remained high particularly in the inshydustrialized countries In Europe as a whole manshypower in the armed forces and in industries and trades related to military requirements was estishymated at almost 10 percent of the economically active population Worldwide manpower in the armed forces and in military-related employment in 1968 was close to 60 million a number equaling the total population of West Germany

6

418-790 0

DEFINITIONS OF TERMS

Gross National Product (GNP) represents an economys total output of goods and services valued at current market prices paid by the ultimate COIlsumer

JiilitarJ Expenditures are current and capital expenditures to meet the needs of the armed forces including expenditures of national defense agencies for military programs expenditures for the military components of such mLxed activities as atomic energy space ami research and development military assistance to foreign countries and expenditures on paramilitary forces where they contribute subshystantially to a countrys military capabilities

Foreign Economic Aid Reeeited by developing countries comprises official bilateral grants and loans (gross of repayments) disbursed by Development Assistance CommIttee (DAC) countries and net aid received from multilateral agencies (Aid received from Communist countnes is shmvn in the world total but is not included in country or regional totals) Aid given by DAC countries includes official bilateral aid and net contributions to multilateral agencies Aid given by Communist countries represents deliveries to non-Comshymunist developing countries only Aid from private sources and milishytary assistance are not included

Public Education Expenditures include current and capital expendishytures for preschool primary secondary and university-level educashytion Wherever possible expenditures by all levels of government are covered Private spending is not included

PIblie Health Etpenditlfs represent current expenditures (and whershyever possible capital expenditures) by all levels of government for the provision of medical services Private spending is not included

Armed Forces refer to military personnel actually on duty including paramilitary forces where these forces contribute substantially to 11

countrys military capabilities Reserve forces are not included

DeulopinJ OOlntrie~ 93 in number are the countries listed under Latin America the Far East except Japan South Asia and the Near East and Africa except the Republic of South Africa and also include in Europe Albania Bulgaria Greece Portugal Spain Turkey and Yugoslavia

Dueloped COllntric) 27 in number are the countries listld under North America Oceania European NATO except Greece Portugal and Turkey the Varsaw Pact except Bulgaria and include Austria Ireland Finland Sweden Switzerland Japan and South Africa

For further discussion of terms as used in this report ee Statistical Notes page 32

- 71 - 2 7

STATlSTICAL TABLES

Table I presents a summary of recent trends in two key indicators military expenditures and GNP by major groups of countries In order to provide as current a picture as present statistical resources permit estimates for 1969 and 1970 are included However since national data for the latter years are preliminary and incomplete these estimates are subject to revision The data in constant 1968 dollars are approximate estimates based on the use of average price and exchange rate adjustment factors for groups of countries and do not reflect adjustments by individual country

Table II is the basic table showing a variety of data on each of 120 individual countries in 1968

the latest year for which data are available on a worldwide basis Table III shovs some of these same data expressed on a per capita basis Hisshytorical trends by country and year 1964-68 are presented in table IV (military expenditures and GNP) and table V (armed forces)

Table VI ranks the first 30 countries of the world in terms of six main factors of military and economic strength

Chart VII RELATIVE BURDEN OF MILITARY EXPENDITURES 1968

ll Z G LI o tf CIl laquo CIl lLJ 0 gt l-e z lLJ ll X lLJ

gtshy0 laquo IshyJ E

OVER 10

5-10

~------

2-5

---~~-

1-2

UNDER 1

UNDER $100middot

1~0$

BURMA

CHAO CONGO

KlNSUA5A DAHOMEY ETHiOP(A HIIII INDIA INOllNJSIAsbt1Ju

REPUBliC UGANOA

AfGflANISTAN MAll tANZANIA u~PEflOtTil

~ -~

tfALAN1 NEPAL NIGet

$100-199

UNITED AS

R9II1JIIC YIETNAM

NORTH VIETtiAM

IEPU911COF

CAMBQI)IA CHINA

MAINLANO

BOLIVIA CAMEROON GIJINEA (ORA

REPfBtlC OF MAIIRUANIA PAKISTAN SUIAti TIAlIANO YEMEN

CENTRAL AFRICAN REPIlBlIC

KENVil MAUGASY

RtII~LlC NERIA TOGO

CEYLON SIERRA LEDflE

GROSS NATIONAL PRODUCT PER CAPITA

$200-299 $300-499 $500-999 $1000-1999 i $2000-2999 OVER$3000

cmNA SAUDI ARABIA ISRAEl REItf811COF

IRAQ IJORDAN

KOREA NORTH

___ f -------- shy--~------

UlAN IALBANIA CUBA POLAND UNITED SYRIMtARAB PORTUGAL USSR STATES

REPUBLIC UNITED KINGDOM

ALGERIA BRAZIL CHILE BULGARIA AUSTRALIA CANADA CONGO LEBAtiON GREECE CZECHOmiddot BElGIUM KUWAIT

BRAZllVILLE MALAYSIA SOUlli AFRICA SLOVAKIA DENMARK SWEDEN MM1NICtN MONGOLIA REPUBLIC OF GERMANY EAST FRANCE

I BUe fRU SfAIN HUNGARY GERMANY GHANA TURKEY VENEZUElA ITALY WEST MOROCCO YUGOSLAVIA NETHERLANDS NORWAY

ROMANIA SWITZERLAND

___ shy _-shy --------COLOMelA QABON ARGENTINA AUSTRIA LUXEMBOURG ECUADOR IVORY COAST CYIRUS FINLAND ElSALVA[)OR IllCARIGUA URUGUAY LIBYA GUATEMALA ZAMBIA NEW ZEALAND HONDURAS lIIiiRIA PARAGUAY PHilI PPI NES RHODpoundSIA

$OUTHERN SENEGAL nJfUSIA

-~------ shyCOSTA RICA Msueo IRELAND ICELANO GUYANA PANAMA JAPAN JAMAICA TRINIDAD amp

I TOBAGO

I

C_~1____l1li11II1II_________111l1li_______IIII_I_UIIIIJ_IIIIIJIIIIbull __IIIII11IIIIIIII1IIIIIIII1III11III1I1I11i11111lflllll1illliililil_-__

8

TABLE I-SUMMARY TRENDS IN MILITARY EXPENDITURES AND GNP 1964-70

Military Expenditures Gross National Product

1964 1965 1966 1967 1968 1969 1970 1964 1965 1966 1967 1968 1969 1970 est est est est

TOTAL

(Billions of Current Dollars)

WORLD 140 144 161 180 191 199 204 1936 2106 2301 2464 2685 2936 3188 Developed 125 127 143 160 169 175 177 1603 1734 1907 2048 2235 2421 2625 Developing _ 15 17 18 20 22 24 27 333 372 394 416 450 515 563

NATO __ _ 73 74 86 100 105 106 103 1073 1165 1268 1352 1462 1587 l681 Warsaw Pact 49 51 54 57 61 66 71 397 428 466 506 553 593 655 Other _ 18 19 21 23 25 27 30 466 513 567 606 670 756 852

811110ns of Constantl968 Dollars) (

WORLDbullbullbull _bullbullbullbullbullbullbull 158 159 172 188 191 192 186 22112 2325 2452 25711 2685 2830 2940 Developedbullbullbullbullbullbullbullbullbull _bullbull 141 141 154 168 169 169 162 1838 1936 2047 2148 2235 2346 2431 Devl1lopingbull __ ____ ______ bull____ 17 18 18 20 22 23 24 364 389 405 422 4511 484 509

NATObullbullbullbullbull __ bullbullbullbullbullbullbullbull __ 83 82 92 105 105 102 94 1231 1301 1360 1418 1462 1539 1558 Warsaw PacL__ ________ bull__ 55 56 58 59 61 63 64 446 472 501 526 553 566 594 Other__ ____ bull ________ bull __ bull __ 20 21 22 24 25 27 28 525 552 591 626 670 725 788

PER CAPITA

(Current Dollars)

WORLD __ 43 44 48 52 54 56 56 599 637 682 716 765 820 873 Developed _ ___ 134 135 151 167 174 179 180 1725 1 845 2009 2126 2310 2479 2666 Deyeloping __ 7 7 9 10 145 157 163 168 177 198 211

NATO _ 145 146 168 193 201 201 192 2139 2295 2469 2607 2792 3003 3151 Warsaw Pact 151 153 162 169 180 192 205 1213 1292 1398 1501 1626 1730 1897 Other __ ____ 7 8 9 9 10 11 194 208 224 235 253 279 307

(Comltanll968 Dollars)

WORlD____ __ bull _bull _____ bullbull ______ 49 48 51 55 54 54 51 682 703 727 747 765 790 805 Oeveloped ______ bullbull __ __ __ _____ bullbull 152 150 162 175 174 173 164 1978 2060 2157 2230 2310 2402 2469 Developlnllbull __ _____ __ bull ______ 7 8 8 8 9 9 9 158 165 167 170 177 186 191

NATO bullbull _ __ __ bull____________ _ bull ___ bull __ 165 162 180 202 201 194 177 2455 2563 2648 2734 2792 2911 2921 Warsaw PacL ________ ___________ 170 169 174 176 180 183 186 1362 1425 1502 1562 1626 1 652 1718 other _ ______ _____ __ 8 8 9 9 9 10 10 219 224 234 242 253 268 284

9

----

___

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968 [I n current dollars)

Relative burden Other public expend itures Armed forces

GrossMilitary ForcesforeignPopu- Militarynationalexpend-

MilitaryArmedeconomic aidPublic Publicexpend- GNPproductitures lation expend-health 14 forcesper educashyitures as

(per iturestion 23percent capita thou- per manReceived Givenof GNP sand

(thoushy popushy(million (million(million(million(dolshy(million(million (dollars)lation)sands)dollars) dollars)dollars)lars) dollars)dollars) (millions) ()dollars)

SUMMARY

WORLD TOT AL ---- Developed DEvEloping ----- shy

NORTH AMERICAmiddot - - - ---~ - shy

EUROPL Developed Developing

LATIN AMERiCAmiddotmiddot shy ~ --~

FAR EASL Developed - -_ - ~ ~

Developing_

SOUTH ASiA --

NEAR EAST _ - - ~ ~ ~

AFRICA - - - - _ shyDeveloped - - shy

~ ~ shy

_ -~ Developing

OCEANIA

WORLD TOTAL __ ____

NORTH AMERICA_ __ United Statesmiddot __ Canadamiddotbull _ __

EUROPL

NATO European Belgium __ __ Denmark France Germany WesP _____

Greece Icelandmiddot _ Italy __ Luxembourg Netherlands __

See footnotes at end 01 table

65521 60769 4752

23788

37051 35552 1499

1364

889 313 576

403

412

693 195 498

921

86387382

~ 8541 7382 97

shy 4282

576 3353 ~ 3306

47

1410

576

~

1551 846 796-50

1721

350

1324

1551

~

I 324

shy 157

23819 7 10973 II 12846 5

3602 16

8612 12 6986 II 1626 14

1153 4

7161 6 250 2

6911 6

1752 3

993 11 i

449 2 38 2

411 2

i 97 7 I

I

800 15381 170

2287o

1008 12002 1872

1938

1618 4584 I 573

1230

2921

2457 9368 1818

10866

190733 168779 21954

82379

86888 83844 3044

2235

12018 1146

10872

2155

2901

1103 356 747

1054

190733

82379 80596 I 783

86888

22668 602 345

6118 5278

367

2245

90 I

2685006 2234940

450066

931800

1185000 1115700

69300

113551

281335 141 920 139415

62090

29594

50130 14020 36 110

31500

2685006

931800 865700 66 100

1185000

529900 20700 12400

126600 132700

7600 500

74800 800

25 200

35091 9675

25416

221 9

7256 6106 1150

2617

12338 10LO

11327

6892

91 5

2708 192

2516

148

I

35091

221 9 201 2 208

7256

I 3016 I

96 50

499 602

I

88

21 528

3 127 1

71 72 49

118

73 75 44

20

43 8

78

35

98

22 25 21

33

765 2310

177

4199

1633 1827

603

434

228 1404

123

90

324

185 731 144

2131 i

BY COUNTRY

611

118 93 27

73

43 29 28 48 40

48

30 10 36

7651

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 I 418 2381 I 978

130172 117313 12859

50815

60318 58745 1573

2567

11138 6000 5138

1324

1085

1622 450

1172

1303

130172

50815 46400 4415

60318

17883 893 600

3354 3863

157 12

2730 29

1214

65521 7 382 1

J23788 4282 I

21 382 4 048 1 2406 234

8008

22870 23027 17480

100898612 12

7491 99

103026 10 6081

46 7500 505

9 12 115

486 10

108608

18 2280161

510244~ t 8000

129 i 10 3

7023

37051

15327 530 670 292

6874

middot90 5

696 -20 973

3353576

2829

-I 93 313

29 980 755 i

72

257

~I 139

10

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued I n current dollars]

Relative burden i Other public expenditures 1

Armed lorces

I---I--~-~I----Imiddot ----------shyMilitary Gross Popushy Military Foreign Forces i

Ituresexpendmiddot national

product lation expend GNP Public Public economic aid Armed Military itures as per educa- health 24 bull lorces Iexpend-percent capita tlon 3 1 (per itures 01 GNP Received Given thoumiddot per man

sand) (million (million (dolshy (million (million (million (million (thou- popumiddotdollars) dollars) (millions) () lars) dollars) dollars) dollars) dollars) I sands) lalion) I (dollars)

BY COUNTRY~Continued

NATO-Continued Norway Portugal _ Turkey United Kindgom

322 359 573

5545

9 000 5000

11600 103000

38 95

335 553

36 72 49 54

2357 528 346

1863

403 57

321 4450

180 79

139 4779

241

24 47

505

35 183 514 427

9 19 15 8

9200 1 962 1115

12986

NATO Total 105047 1461700 5235 72 2792 68698 39117 313 7 III 6628 13 15849

Warsaw PacL Bulgaria __ Czechoslovakia _ Germany East __ ___ Hungary _____ __

61 100 300

1 360 1 450

340

553200 9100

28400 30800 13800

3402 84

144 171 103

(7-9) 33 48 47 25

1626 1083 1972 1801 1340

38604 367

1093 I 031

580

18281 272 982 792 339

400

100

4783 173 265 196 l37

14 21 18 II 13

12774 1734 5132 7398 2482

Poland__ ____ __ __ _ Romania __ Soviet Union

1950 700

55000

37400 20700

413000

323 197

2380

521158 34 1051

(8-10) 1735

1643 890

33000

1396 600

13900 300

319 223

3470

10 II 15

6113 3139

15850

Other European Albania ___ Austria _ Finland _ _ __ _ Ireland _

3120 76

150 156

27

101900 800

11400 8 000 3 000

838 20 74 47 29

31 1095

13 2 a 9

I 216 400

1551 1706 1 031

3831 70

402 585 110

3443 30 567 344

ll4

263 124

31

803 51

50 39

10

10 26 7 8 3

3885 1490 3 000 4000 2700

Spain _ Sweden_ _ Switzerland _ Yugoslavia _

913 977 365 456

25200 26300 17200 10000

3261 79 61

202

36 37 21 46

773 3322 2798

496

290 1486

577 3ll

403 1 070

429 486

181

82

72 21

305 78 31

239

91 10 5

12

2993 u 12526 11 11774

1908

LATIN AMERICA __ Argentina _ Bolivia _ BraziL_ Chile _ Colombia _

2235 380 17

651 127 98

113557 171l1

786 27353 5670 5638

261 7 236 44

802 92

198

20 22 22 24 22 17

434 725 177 310 614 284

2567 I 346

25 169 205 111

1364 26 3

81 155

96

1410 15 52

319 220 170

1153 8144

18 225 63 55

4 6 4 3 7

1938 2639

944 2893 2016 1782

Cost Ricbull _ _ Cuba bullbull ___ __ _ Dominican Republic_ _ Ecuadoc ___ EI Salvador

300 30 26 10

734 bull 5 000

1169 1475

930

16 76 4 a 57 32

106 a 26 18 11

449 658 295 259 290

33 281

26 35 24

20 60 -14

6 14

15 1

54 28 10

394 18 17 6

52 5 3 2

761 1667 1529 1667

Guatemala _ __ Guyana _ _ HaitL __ Honduras _ Jamaica _

16 2

1500 215 326 621 951

5 a 7

50 25 L9

11 9

21 14 5

299 303

65 245 497

27 8 3

17 22

34 8 4 7

17

24 16 6

15 28

9 1 5

2 1 1 2 1

1778 2000 1 400 1800 2500

Mexico_ Nicaragua __ _ Panama _ __ Paraguay _ Peru ____

184 10 1

10 132

26310 697 826 511

4287

473 19 14 22

128

7 14 1

20 31

557 374 602 229 336

504 16 33 9

151

316 5

16 3

51

210 19 19 23 57

70 i6

13 50

6

2629 1667

769 2640

Trinidad amp Tobago __ Uruguay_ bull Venezuela

3 23

194

748 1589 9110

10 28 97

4 14 21

726 564 941

19 13

396

10 21 78

1 13

38

3 000 1 769 5105

See footnotes at end of table

11

TABLE It-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued (I n current dollars) 1

Military expendshy

itures

Gross national product

Popushylation

Relative burden Other public expenditures

I

I Public

ForeignMilitary GNP Public economic aid S expendshy per I educashyitures as I capita 1 tion Zbull1 I health

Armed forces

I 1Forces Armed 1 Military forces 1 flfer expend-

percent I Received Given 1 taumiddot itures of GNP 1 sand I per man

(million (million I

(dol- (million (million (million (million I (thou- popushy1dollars) dollars) I(millions) () lars)

dollars) dollars) 1 dollars) dollars) I sands) lation) (dollars)

I I

__------_--

FAR EAST Burma Cambodia China Mainland China Republic 01 Indonesia

Japan+ Korea North Korea Republic oL Laos Malaysia

Mongolia Philippines Thailand Vietnam North Vietnam Republic of

SOUTH ASiA Afghanista n Ceylon India NepaL Pakistan

NEAR EAST Cyprus Iran Iraq I srae __ Jordan I

Kuwait I lebanon Saudi Arabia Syrian Arab Republic -

Yemen

United Arab Republic

AFRICA 0shy

Algeria Cameroon Cenlral African Republic Chad Congo (Brazzaville)

Congo (Kinshasa) Dahomey __ I Ethiopia Gabon Ghana _

Guinea __ Ivory Coast Kenya liberia libya

See footnotes at end of table

middot20 116 157

550 613

2155 16 13

1603 5

518

2901 I 6

530

280 I 672 105

63 45 I

383 i 137 I 14 I 666 I

1103 1

100 I 19 I 3

8 1

6 I

44 I 4

41 I 3

44 i

14 I 17 I 15 I 3 I

37 I

575 I 7276 1 5512

2300 3050

62090 1370 1781

43 000 800

15139

29594 1 438

8 020 I 2400 i 4042

575 i

2220 i

1 424 2200 I 1425

550

5740

50130 3365

800 200 270 174

1330 182

1534 200

1 994

669 1242 1330

254 2965

BY COUNTRY--Continued

12338 264 66

806 a 141

1137

43 57 66

F 8 3 101 29

4 000 99

100

101 1 134 305

28 103

8 10180

41 168 32

1 404 I 261 188 I 721

326 I

6000 100 110

7 140

12 359 351 193 174

1[gt 35 16 28

10 239 20 I

479 I 203 157 i 119

175 I

198 168 91

32

6892 161 120

5271 107

1234

35 12 7

37 6

34

90 1 85 I

149

82 I 75

123 I

1324 6

66 1 130

4 118

91 5 6

27 I 86 27 2 I

98 14 66

117 166 183

324 704 296 278

1472 I 274

1085 9

182 133 225

19

5 27 46 57 5 a

28 32

174 96

) 2 5

4111 519 478 250 110

87 34

107 54 3

31 7 I 6 181 232

2708 129 56 15 35 9

22 3 a 24

10 1 5 10 3 a to 34

185 260 43 134 78

200

1622 155 23 7 8

111

17 a 26

242 5

84

33 lfr 2 2

27 15 22

78

711 63 I

417

238 1

69 I 7

15 10 67

38 4 a

102 11 18

21 4 11 12 12

174 312 130 225

1644

37 60 22 7

74

313 I 11 I II 2

123

2

23 29

18 24

403 9 46

283 5

60

412 I 4 1

135 I 28 57

44 8

33 7

8

80

693 59 11 3

bull 4 6

28 I 5 1

1~ I 16

17 10 3

37

11

95 333

314 60 50

139 79

448

1721 30 48

1107 2

534

350 I

132 14 70 48

14 13

-15 11 1

61

1324 117

45 18 22 42

67 18 50 11 87

9 49 61 23 6

50

796

i I I i

s 33 47

167 447 735

1752 70 10

11133 1

15 1

bull 524 1

I 99i I

bull 225 I 992 1

771 55 I

I 7

12 956 69

8

bull 391

449 58 5

1 1 2 I

I 31 2 I

45 i 1 1

15 i

4 3-I 4

I 8 I

2 I 31 20 I 34 6

28

5 23

42

3 4 i 2 i I I 4 I

I 11 2 i 8

II 28 26 I

13 4

12 1

12 1

2 I

12 I 2 I 4 I 1 I 1

4 1 4 I

1678 775 774

2419 805 696

4584 1 534

379 358

1 895

606 2468

940 1 230

834

1230 229

1300 1415

333 989

2921 6000 2356 3043 8727 1 909

9 000 3750 6839 1986 1750

1703

2457 1724 3800 3 000 8 000 3 000

1419 2 000

911 3000 2933

2800 4250 5 000

750 4625

12

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968-Continued [In current dollarsjt

I Relative burden I Other public expenditures I Armed forcesI

IMilitary ForeignGross expend- national Popu- Military GNP Public economic aid S Forces MilitaryIArmeditures product lation expend- per educa- Public expendshy

tion 23 (perhealth 2 ituresitures as capita forces thoupercent per manReceived Given

of GNP sand (million (million (million (million (million (thoushy(dolshy (million popushydollars) dollars) (millions) lars) dollars) dollars) dollars) dollars) sands) lation)

I(dollars)()

I

BY COUNTRY -Continued

AFRICA-Continued Malagasy Republic MalawL __ MaIL __ Mauritania Morocco_

Niger Nigeria____ Rhodesia Southern__ __ _ Senegal ____ Sierra leone __ __

Somali Republic __ __ __ South Africa Republic of Sudan __ __ Tanzania Togo ____

Tunisia Ugandabull Upper Volta~ __ Zambia ______

OCEANIA ____ Australia __ ___ New Zealand

13 780 I 247 5 264 8 172

76 2981

342 91 3

6000 21 1138 15 827

340

8 170 356 14020

74 1560 13 943 I 121

183 213 I 14 471048 16 994 81 -5 5 I257 20 1325 41

1054 31500 148 26600 120

9~ I 4900 I 28 I

70 43 48 11

146

38 535 49 38 25

27 192 148

Oeveloped country or region (Country without asterisk is developing) All countries in region are developing Rough ACDA estimate

None or negligible I For most countries conversion into US dollars Is at official par value exchange

rates as rounded by AID For all Communist and several developing countries esllmated purchaSing power panties are used (See Conversion Rates page 35)

Due to dilferences in concepls coverage and reliability data on public education and health expenditures do not permit accurate comparisons between countries or in some cases between years for the same country

3 Public expendHures on education in 1968 are ACDA estimates based primarily on dala for 1967 or earlier (See Educalion page 34)

Informallon on educational expenditures which are made outside of governmentbudgets is not available on a worldwide baSis The rellive importance of these expenditures vanes sharply from co~nlry to country In the United States private expe~dltures In 1968 were $118 billion or 20 of the total Private expendilures conslltut~d the follOWing percentages of total national expenditures In 1967 (or Ih indicated year) according to UNESCO estimates

EI Salvador ______ Sudan

Percent Percent Argenlina (1966) __ __ Australia ____ __ Canada ____ __ Chile (1966) bull China Republic of ~_ poundcuador bull __ __ __ __

51 38 23 28 29 34

Israel (I966)~ __ Japan _____ Jordan __Kenya __ _ Malawi _ __ Philippines_

26 20 14 70 15 24

23 __ ___ __ 27 Bhiopia (1966) 47 Venezuela __ __ _______ __ 27Greece ________ __ 39 Vietnam Republic of (1965) __ 58Guatemala _______ __ __ 25 Zambia (1966) __ __ 73India __ 44

In Communist countrie~ extramiddotbudgetary expenditures are also significan For example according 10 offiCial data education expenditures by state cooperative and trade union enterprises and collective farms in the Soviet Union make up about 13 percent of the total parental payments to childrens institutions and schools mayconstitute another 6 percent

17 III 49 15 44 4 58 II 4 26

19 55 10 4 20 47 154 4 8 25 204 106 40 124

9

I

90 I 5 29 15 112 132 [ 83 108 18 230 42 I 13 -3 18 220 29 14 48 9 137 9 3 111

47 62 3 I 26 I

25 731 450 195 47 106 69 22 I 29 14 78 30 13 34 14 120 4 2 13

13 16

224 122

i 57 I

15

I 15

14 I 88 20

lO 1 9 50 i 6 I 23 15 326

1

I 20 I e 18 51

I

33 2131 1 1303 I 921 157 36 18

2211 1 781

i

i 1132

171 697 224 i

157

I 4 I I

4 I

62

I 70 I 5 5 i

2

8 38 24 4 1

2 I 2 I 3 i

I I

97 84 shy13 I

4

3250 1000 1250 8000 1226

3000 1300 4200 3000 1500

1000 9368 3083 3250 3000

609 2667 2500 6667

10866 11524 6615

Public expenditures on health in 1968 are based in part on data for earlier years(See Health page 35)

As 10 educational expenditures Ihe portion of tolal health expenditures which is exlramiddotbudgetary varies greatly from country to country Scattered information suggests that on average Ihe private portion of health expenditures may be higherthan the private portion of education expenditures In the United States in 1968 private health expenditures amounted to $352 billion or 62 percent of total health expenditures

In Communist countries extramiddotbudgetary health expenditures are made by state cooperative and trade unum enterprises anj collective farms as well as households In the Soviet Union for example they constitute about 20 percent of total health expenditures according to official sources

Economic aid given by Communist countries to nonmiddotCommunist counlries is included in the world total of aid received It is not distributed by individual recipientcounlries or regions however as accurate data on such distribution are no available (See Foreign Economic Aid page 34_)

Military expenditures and GNP are not fully comparable due to the use of different dollar conversion rates lor the two variables in the Soviet Union (see footnote 9)Using the more valid ralios shown in parentheses for the Soviet Union and Ihe Warsaw Pact total the ratio for the world is eslimated to be 6-7 percent and for Europe 5-6 percent

1 Ineludes West Berlin Includes paramililary as well as regular forces The implied relationship between dollar amounts of Soviet GNP and military

expenditures (or GNP and public expenditures on educalion and health) is not valid due 10 the use of di~erent types of conversion rates lor GNP and particular sectors It is estimated Ihat the actual ratio of military expenditures to GNP would fall somemiddot where within the range indicated in parentheses the lower part of the range reflecting a comparison of military expenditures and GNP in faclormiddoteost ruble values and the upper estimate representing dollar values converted on a comparable basis (See Conversion Rates page 35)

10 Since either or both military expenditures and GNP estimates are approximations the resulting ratio should be viewed with particular caution

II For Sweden SWitzerland and Israel the high rate of military expendilures per man rellects small standing forces with a capability for extremely rapid mobilization of large reserve forces

13

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 7: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

The record for 1970 as compared with 1964 the year of ACDAs first annual Sllvey shows that military eXJlenditures haye absorbod some of this growth diddend although the shure of world GNP that they tnke has diminished The changos expressed in dollar equivalonts are summarized in the table b(low

WORLD GROWTH DIVIDEND 1970 OVER 1964 (Billion dollars)

Increase in GNP in current dollars 1752 of which

price inflation 514 population increment

(valued at 1964 GNP per capitet) 288

Increase in GNP (adjusted for price and popnlation changes) (450)

of which increase in military expenditures 28

Leaving an actual growth dividend for civilian Uses of 422

In 1970 the dollar value of world GNP vas $1252 billion higher than in 1964 Price rises and population growth however accounted for It

major part of this apparent gain in yalue The increase in GKP when higher prices and larger popUlation are considered as $450 billion or only one-third of the apparent increase The increase in world arms spending in constant prices took $28 billion of this dividend J represell ting a larger share of real growth in devol oping thall in develshyoped countrios

As an indicator of arms restraint a downward trond in tho ratio of military expenJitures to GNP

Chart IV

SHARES OF WORLD TOTAL IN 1968

Developed countries Developing countries

Military Exps

Armed Forces

Population

GNP

Puhlic Education

Public Health

o 20 40 60 80 100 Per cent

is not sufficient With 1 rapidly growing oconomy even a declining ratio to GNP can cOllceal un inshytOllsified arms race

Compared with the immediate pre-World War II period military expenditures in 1970 probably took a somewhat smallor share of world GNP HOveeI the yorld economic base has boen so vastly cnlargod that todays share ropresents II

fonrfol(l increase in expenditures ill real terms as compared ith 1937 It is estimated that worldshywide military oxpenditures of 1937 based on a League of Nations study of that prewar yoar totnled about $ljO billion in 1970 prices in contrast to todays $204 billion

Developed and Developing Countries

Poorer countries suffer most from arms races For example military equipment which they proshyduce themselves may tap the high-quality 10shy

sources that are most noedod for investment in eivilian industry ~Iilitary oquipmont bought from abroad may take some foreign exchange that could have helped to modernize tho economy and improve living stawlards

For the past 6 years ACDAs survey shows military expenditures have grown eonsidorably faster ill developing tlum in developed countries The GNP increase in developing economies from 1964 to 1970 expressed in constant prices is substantial but the rate of growth per capita has beon less than that in developod countries

For the dceloping countries 11 calculation of the llnnual growth dividond similar to that shown in the table above for the world total reveals thLt they have devoted to military spending tice llS large a proportion of their GNP growth dividend as havo developed countries whell allowance is made for price increases and the more rapid population growth in the poorer countries Togcthor theso flletors have limited their actual growth dividend for civilian uses to a 6-year gain of only $30 per person In deshyveloped countries by eOlltrast the civilian inshycremen t from 1964 to 1970 was 16 times as mn ch or $469 per person

Chart IV illustrates the end-results of these tlends as of 1968 The 93 developing countries in ACDAs survey lopresented 73 percent of the worlds population but had only 17 percent of

4

Chart V

Dollars PER CAPITA EXPENDITURES FOR400------------------------shy MILITARY EDUCATION AND HEALTH BY REGION 1968

bull Military

bull Public Education

D Public Health Dollars

------------------------------------------------------------200

------------------------------------------------------100

NORTH EUROPE OCEANIA NEAR AMERICA EAST

current world income They accounted for only 7 percent of world public expenditures on henlth care and for 10 percent on education The inshyclusion of international economic assistance would of course add somewhat to the resources available to developing countries but the addition would represent a relatively minor proportion of their GNP All foreign economic aid loans as ell as grants amounts to less than 2 percent of GNP of developing countries

On the other hand the developing areas with their large populations accounted ill 1968 for more than half the 24 million men under arms in the world

While the budgeted military expenditures of the developing countries were only 12 percent of the world total in 1968 this is not the full amount that went into maintaining military forces in these countries Military aid contributions of the major powers are a significant supplement to the military expenditures of developing countries Military aid according to the standard budgetary conshycept of this report is counted among the military expenditures of the donors-not in the recipients military budgets In this respect the expenditure data and chart IV tend to understate the relative military capacity of the developing world

Growth rates recorded since 1964 (see table

FAR EAST LATIN AFRICA AMERICA

below) suggest that developing countries have gradually enlarged their share of world milishytary effort maintaining it rate of increase in pershysonnel in the armed forces as well as in military expenditures considerably larger than that of developed countries Howmer this expunsion of military effort was accompanied by a lowering of their relative economic standing when jlopulnshytion increase is taken into account

AVERAGE ANNUAL GROWTH RATES 1964-70

(Values in cunstant prices)

World Developed Developing

Military expenditures 2 8 2 3 ii 9 Armed forces 19 O 0 l i

Total GNP 4 9 4 8 j 7 Population 2 1 10 2) Civilian GNP per capita 30 4 0 1 1

GNP le6~ military expenditure

Other Public Expenditures

A comparison of world military expenditures with other pnblic expenditures such as public education public health and foreign economic assistance is set forth ill chart III (page 3) Reshygional comparisons are shown ill rhart V and national data may be found in statistical tables II and III Comprehensive data on private expendishytures on these civilian programs are not avail-

SOUTH ASIA

5

Chart VI

MILITARY EXPENDITURES AND ARMED FORCES 1964 amp 1968

80

1964 1968 60 6Expenditures (b j I 5)

~ ~ Forces (million men) shy c-0 QJ-0

EE c

0

~ c ~ 0

ii5

20

EUROPE FAR EAST

2

AFRICA OCEANIA

able See table II footnotes a and 4 for available data on private spending in individual countries

Manpower

Following a steady upward trend between 1964 and 1968 the number of men under arms began to decline in 1969 and 1970 At year-end total armed forces numbered an estimated 23 million about 05 million fewer than at the 1968 peak although still more than 2 million higher than in 1964

Chart VI shows the large numbers of active duty forces belonging to two of the seven geoshygraphic regions In 1968 almost 16 million or two-thirds of the men under arms were in the forces of European and Far Eastern countries North America ranked next with 36 million under arms and the Ncar East next with 18 million All regions increased forces between 1964 and 1968 the largest rise in absolute numbers being in the Far East

Both developing and developed countries havo increased military expenditures more rapidly than personnel The trend is to larger outlays per man in uniform even when allowance is made for price rises This rate of course varies widely among individual countries Chart VIII (page 31) showing several indicators for the 10 major military powers illustrates the range in expendishytures per man in uniform

In addition to the men and women serving directly in the armed forces military-related emshyployment remained high particularly in the inshydustrialized countries In Europe as a whole manshypower in the armed forces and in industries and trades related to military requirements was estishymated at almost 10 percent of the economically active population Worldwide manpower in the armed forces and in military-related employment in 1968 was close to 60 million a number equaling the total population of West Germany

6

418-790 0

DEFINITIONS OF TERMS

Gross National Product (GNP) represents an economys total output of goods and services valued at current market prices paid by the ultimate COIlsumer

JiilitarJ Expenditures are current and capital expenditures to meet the needs of the armed forces including expenditures of national defense agencies for military programs expenditures for the military components of such mLxed activities as atomic energy space ami research and development military assistance to foreign countries and expenditures on paramilitary forces where they contribute subshystantially to a countrys military capabilities

Foreign Economic Aid Reeeited by developing countries comprises official bilateral grants and loans (gross of repayments) disbursed by Development Assistance CommIttee (DAC) countries and net aid received from multilateral agencies (Aid received from Communist countnes is shmvn in the world total but is not included in country or regional totals) Aid given by DAC countries includes official bilateral aid and net contributions to multilateral agencies Aid given by Communist countries represents deliveries to non-Comshymunist developing countries only Aid from private sources and milishytary assistance are not included

Public Education Expenditures include current and capital expendishytures for preschool primary secondary and university-level educashytion Wherever possible expenditures by all levels of government are covered Private spending is not included

PIblie Health Etpenditlfs represent current expenditures (and whershyever possible capital expenditures) by all levels of government for the provision of medical services Private spending is not included

Armed Forces refer to military personnel actually on duty including paramilitary forces where these forces contribute substantially to 11

countrys military capabilities Reserve forces are not included

DeulopinJ OOlntrie~ 93 in number are the countries listed under Latin America the Far East except Japan South Asia and the Near East and Africa except the Republic of South Africa and also include in Europe Albania Bulgaria Greece Portugal Spain Turkey and Yugoslavia

Dueloped COllntric) 27 in number are the countries listld under North America Oceania European NATO except Greece Portugal and Turkey the Varsaw Pact except Bulgaria and include Austria Ireland Finland Sweden Switzerland Japan and South Africa

For further discussion of terms as used in this report ee Statistical Notes page 32

- 71 - 2 7

STATlSTICAL TABLES

Table I presents a summary of recent trends in two key indicators military expenditures and GNP by major groups of countries In order to provide as current a picture as present statistical resources permit estimates for 1969 and 1970 are included However since national data for the latter years are preliminary and incomplete these estimates are subject to revision The data in constant 1968 dollars are approximate estimates based on the use of average price and exchange rate adjustment factors for groups of countries and do not reflect adjustments by individual country

Table II is the basic table showing a variety of data on each of 120 individual countries in 1968

the latest year for which data are available on a worldwide basis Table III shovs some of these same data expressed on a per capita basis Hisshytorical trends by country and year 1964-68 are presented in table IV (military expenditures and GNP) and table V (armed forces)

Table VI ranks the first 30 countries of the world in terms of six main factors of military and economic strength

Chart VII RELATIVE BURDEN OF MILITARY EXPENDITURES 1968

ll Z G LI o tf CIl laquo CIl lLJ 0 gt l-e z lLJ ll X lLJ

gtshy0 laquo IshyJ E

OVER 10

5-10

~------

2-5

---~~-

1-2

UNDER 1

UNDER $100middot

1~0$

BURMA

CHAO CONGO

KlNSUA5A DAHOMEY ETHiOP(A HIIII INDIA INOllNJSIAsbt1Ju

REPUBliC UGANOA

AfGflANISTAN MAll tANZANIA u~PEflOtTil

~ -~

tfALAN1 NEPAL NIGet

$100-199

UNITED AS

R9II1JIIC YIETNAM

NORTH VIETtiAM

IEPU911COF

CAMBQI)IA CHINA

MAINLANO

BOLIVIA CAMEROON GIJINEA (ORA

REPfBtlC OF MAIIRUANIA PAKISTAN SUIAti TIAlIANO YEMEN

CENTRAL AFRICAN REPIlBlIC

KENVil MAUGASY

RtII~LlC NERIA TOGO

CEYLON SIERRA LEDflE

GROSS NATIONAL PRODUCT PER CAPITA

$200-299 $300-499 $500-999 $1000-1999 i $2000-2999 OVER$3000

cmNA SAUDI ARABIA ISRAEl REItf811COF

IRAQ IJORDAN

KOREA NORTH

___ f -------- shy--~------

UlAN IALBANIA CUBA POLAND UNITED SYRIMtARAB PORTUGAL USSR STATES

REPUBLIC UNITED KINGDOM

ALGERIA BRAZIL CHILE BULGARIA AUSTRALIA CANADA CONGO LEBAtiON GREECE CZECHOmiddot BElGIUM KUWAIT

BRAZllVILLE MALAYSIA SOUlli AFRICA SLOVAKIA DENMARK SWEDEN MM1NICtN MONGOLIA REPUBLIC OF GERMANY EAST FRANCE

I BUe fRU SfAIN HUNGARY GERMANY GHANA TURKEY VENEZUElA ITALY WEST MOROCCO YUGOSLAVIA NETHERLANDS NORWAY

ROMANIA SWITZERLAND

___ shy _-shy --------COLOMelA QABON ARGENTINA AUSTRIA LUXEMBOURG ECUADOR IVORY COAST CYIRUS FINLAND ElSALVA[)OR IllCARIGUA URUGUAY LIBYA GUATEMALA ZAMBIA NEW ZEALAND HONDURAS lIIiiRIA PARAGUAY PHilI PPI NES RHODpoundSIA

$OUTHERN SENEGAL nJfUSIA

-~------ shyCOSTA RICA Msueo IRELAND ICELANO GUYANA PANAMA JAPAN JAMAICA TRINIDAD amp

I TOBAGO

I

C_~1____l1li11II1II_________111l1li_______IIII_I_UIIIIJ_IIIIIJIIIIbull __IIIII11IIIIIIII1IIIIIIII1III11III1I1I11i11111lflllll1illliililil_-__

8

TABLE I-SUMMARY TRENDS IN MILITARY EXPENDITURES AND GNP 1964-70

Military Expenditures Gross National Product

1964 1965 1966 1967 1968 1969 1970 1964 1965 1966 1967 1968 1969 1970 est est est est

TOTAL

(Billions of Current Dollars)

WORLD 140 144 161 180 191 199 204 1936 2106 2301 2464 2685 2936 3188 Developed 125 127 143 160 169 175 177 1603 1734 1907 2048 2235 2421 2625 Developing _ 15 17 18 20 22 24 27 333 372 394 416 450 515 563

NATO __ _ 73 74 86 100 105 106 103 1073 1165 1268 1352 1462 1587 l681 Warsaw Pact 49 51 54 57 61 66 71 397 428 466 506 553 593 655 Other _ 18 19 21 23 25 27 30 466 513 567 606 670 756 852

811110ns of Constantl968 Dollars) (

WORLDbullbullbull _bullbullbullbullbullbullbull 158 159 172 188 191 192 186 22112 2325 2452 25711 2685 2830 2940 Developedbullbullbullbullbullbullbullbullbull _bullbull 141 141 154 168 169 169 162 1838 1936 2047 2148 2235 2346 2431 Devl1lopingbull __ ____ ______ bull____ 17 18 18 20 22 23 24 364 389 405 422 4511 484 509

NATObullbullbullbullbull __ bullbullbullbullbullbullbullbull __ 83 82 92 105 105 102 94 1231 1301 1360 1418 1462 1539 1558 Warsaw PacL__ ________ bull__ 55 56 58 59 61 63 64 446 472 501 526 553 566 594 Other__ ____ bull ________ bull __ bull __ 20 21 22 24 25 27 28 525 552 591 626 670 725 788

PER CAPITA

(Current Dollars)

WORLD __ 43 44 48 52 54 56 56 599 637 682 716 765 820 873 Developed _ ___ 134 135 151 167 174 179 180 1725 1 845 2009 2126 2310 2479 2666 Deyeloping __ 7 7 9 10 145 157 163 168 177 198 211

NATO _ 145 146 168 193 201 201 192 2139 2295 2469 2607 2792 3003 3151 Warsaw Pact 151 153 162 169 180 192 205 1213 1292 1398 1501 1626 1730 1897 Other __ ____ 7 8 9 9 10 11 194 208 224 235 253 279 307

(Comltanll968 Dollars)

WORlD____ __ bull _bull _____ bullbull ______ 49 48 51 55 54 54 51 682 703 727 747 765 790 805 Oeveloped ______ bullbull __ __ __ _____ bullbull 152 150 162 175 174 173 164 1978 2060 2157 2230 2310 2402 2469 Developlnllbull __ _____ __ bull ______ 7 8 8 8 9 9 9 158 165 167 170 177 186 191

NATO bullbull _ __ __ bull____________ _ bull ___ bull __ 165 162 180 202 201 194 177 2455 2563 2648 2734 2792 2911 2921 Warsaw PacL ________ ___________ 170 169 174 176 180 183 186 1362 1425 1502 1562 1626 1 652 1718 other _ ______ _____ __ 8 8 9 9 9 10 10 219 224 234 242 253 268 284

9

----

___

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968 [I n current dollars)

Relative burden Other public expend itures Armed forces

GrossMilitary ForcesforeignPopu- Militarynationalexpend-

MilitaryArmedeconomic aidPublic Publicexpend- GNPproductitures lation expend-health 14 forcesper educashyitures as

(per iturestion 23percent capita thou- per manReceived Givenof GNP sand

(thoushy popushy(million (million(million(million(dolshy(million(million (dollars)lation)sands)dollars) dollars)dollars)lars) dollars)dollars) (millions) ()dollars)

SUMMARY

WORLD TOT AL ---- Developed DEvEloping ----- shy

NORTH AMERICAmiddot - - - ---~ - shy

EUROPL Developed Developing

LATIN AMERiCAmiddotmiddot shy ~ --~

FAR EASL Developed - -_ - ~ ~

Developing_

SOUTH ASiA --

NEAR EAST _ - - ~ ~ ~

AFRICA - - - - _ shyDeveloped - - shy

~ ~ shy

_ -~ Developing

OCEANIA

WORLD TOTAL __ ____

NORTH AMERICA_ __ United Statesmiddot __ Canadamiddotbull _ __

EUROPL

NATO European Belgium __ __ Denmark France Germany WesP _____

Greece Icelandmiddot _ Italy __ Luxembourg Netherlands __

See footnotes at end 01 table

65521 60769 4752

23788

37051 35552 1499

1364

889 313 576

403

412

693 195 498

921

86387382

~ 8541 7382 97

shy 4282

576 3353 ~ 3306

47

1410

576

~

1551 846 796-50

1721

350

1324

1551

~

I 324

shy 157

23819 7 10973 II 12846 5

3602 16

8612 12 6986 II 1626 14

1153 4

7161 6 250 2

6911 6

1752 3

993 11 i

449 2 38 2

411 2

i 97 7 I

I

800 15381 170

2287o

1008 12002 1872

1938

1618 4584 I 573

1230

2921

2457 9368 1818

10866

190733 168779 21954

82379

86888 83844 3044

2235

12018 1146

10872

2155

2901

1103 356 747

1054

190733

82379 80596 I 783

86888

22668 602 345

6118 5278

367

2245

90 I

2685006 2234940

450066

931800

1185000 1115700

69300

113551

281335 141 920 139415

62090

29594

50130 14020 36 110

31500

2685006

931800 865700 66 100

1185000

529900 20700 12400

126600 132700

7600 500

74800 800

25 200

35091 9675

25416

221 9

7256 6106 1150

2617

12338 10LO

11327

6892

91 5

2708 192

2516

148

I

35091

221 9 201 2 208

7256

I 3016 I

96 50

499 602

I

88

21 528

3 127 1

71 72 49

118

73 75 44

20

43 8

78

35

98

22 25 21

33

765 2310

177

4199

1633 1827

603

434

228 1404

123

90

324

185 731 144

2131 i

BY COUNTRY

611

118 93 27

73

43 29 28 48 40

48

30 10 36

7651

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 I 418 2381 I 978

130172 117313 12859

50815

60318 58745 1573

2567

11138 6000 5138

1324

1085

1622 450

1172

1303

130172

50815 46400 4415

60318

17883 893 600

3354 3863

157 12

2730 29

1214

65521 7 382 1

J23788 4282 I

21 382 4 048 1 2406 234

8008

22870 23027 17480

100898612 12

7491 99

103026 10 6081

46 7500 505

9 12 115

486 10

108608

18 2280161

510244~ t 8000

129 i 10 3

7023

37051

15327 530 670 292

6874

middot90 5

696 -20 973

3353576

2829

-I 93 313

29 980 755 i

72

257

~I 139

10

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued I n current dollars]

Relative burden i Other public expenditures 1

Armed lorces

I---I--~-~I----Imiddot ----------shyMilitary Gross Popushy Military Foreign Forces i

Ituresexpendmiddot national

product lation expend GNP Public Public economic aid Armed Military itures as per educa- health 24 bull lorces Iexpend-percent capita tlon 3 1 (per itures 01 GNP Received Given thoumiddot per man

sand) (million (million (dolshy (million (million (million (million (thou- popumiddotdollars) dollars) (millions) () lars) dollars) dollars) dollars) dollars) I sands) lalion) I (dollars)

BY COUNTRY~Continued

NATO-Continued Norway Portugal _ Turkey United Kindgom

322 359 573

5545

9 000 5000

11600 103000

38 95

335 553

36 72 49 54

2357 528 346

1863

403 57

321 4450

180 79

139 4779

241

24 47

505

35 183 514 427

9 19 15 8

9200 1 962 1115

12986

NATO Total 105047 1461700 5235 72 2792 68698 39117 313 7 III 6628 13 15849

Warsaw PacL Bulgaria __ Czechoslovakia _ Germany East __ ___ Hungary _____ __

61 100 300

1 360 1 450

340

553200 9100

28400 30800 13800

3402 84

144 171 103

(7-9) 33 48 47 25

1626 1083 1972 1801 1340

38604 367

1093 I 031

580

18281 272 982 792 339

400

100

4783 173 265 196 l37

14 21 18 II 13

12774 1734 5132 7398 2482

Poland__ ____ __ __ _ Romania __ Soviet Union

1950 700

55000

37400 20700

413000

323 197

2380

521158 34 1051

(8-10) 1735

1643 890

33000

1396 600

13900 300

319 223

3470

10 II 15

6113 3139

15850

Other European Albania ___ Austria _ Finland _ _ __ _ Ireland _

3120 76

150 156

27

101900 800

11400 8 000 3 000

838 20 74 47 29

31 1095

13 2 a 9

I 216 400

1551 1706 1 031

3831 70

402 585 110

3443 30 567 344

ll4

263 124

31

803 51

50 39

10

10 26 7 8 3

3885 1490 3 000 4000 2700

Spain _ Sweden_ _ Switzerland _ Yugoslavia _

913 977 365 456

25200 26300 17200 10000

3261 79 61

202

36 37 21 46

773 3322 2798

496

290 1486

577 3ll

403 1 070

429 486

181

82

72 21

305 78 31

239

91 10 5

12

2993 u 12526 11 11774

1908

LATIN AMERICA __ Argentina _ Bolivia _ BraziL_ Chile _ Colombia _

2235 380 17

651 127 98

113557 171l1

786 27353 5670 5638

261 7 236 44

802 92

198

20 22 22 24 22 17

434 725 177 310 614 284

2567 I 346

25 169 205 111

1364 26 3

81 155

96

1410 15 52

319 220 170

1153 8144

18 225 63 55

4 6 4 3 7

1938 2639

944 2893 2016 1782

Cost Ricbull _ _ Cuba bullbull ___ __ _ Dominican Republic_ _ Ecuadoc ___ EI Salvador

300 30 26 10

734 bull 5 000

1169 1475

930

16 76 4 a 57 32

106 a 26 18 11

449 658 295 259 290

33 281

26 35 24

20 60 -14

6 14

15 1

54 28 10

394 18 17 6

52 5 3 2

761 1667 1529 1667

Guatemala _ __ Guyana _ _ HaitL __ Honduras _ Jamaica _

16 2

1500 215 326 621 951

5 a 7

50 25 L9

11 9

21 14 5

299 303

65 245 497

27 8 3

17 22

34 8 4 7

17

24 16 6

15 28

9 1 5

2 1 1 2 1

1778 2000 1 400 1800 2500

Mexico_ Nicaragua __ _ Panama _ __ Paraguay _ Peru ____

184 10 1

10 132

26310 697 826 511

4287

473 19 14 22

128

7 14 1

20 31

557 374 602 229 336

504 16 33 9

151

316 5

16 3

51

210 19 19 23 57

70 i6

13 50

6

2629 1667

769 2640

Trinidad amp Tobago __ Uruguay_ bull Venezuela

3 23

194

748 1589 9110

10 28 97

4 14 21

726 564 941

19 13

396

10 21 78

1 13

38

3 000 1 769 5105

See footnotes at end of table

11

TABLE It-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued (I n current dollars) 1

Military expendshy

itures

Gross national product

Popushylation

Relative burden Other public expenditures

I

I Public

ForeignMilitary GNP Public economic aid S expendshy per I educashyitures as I capita 1 tion Zbull1 I health

Armed forces

I 1Forces Armed 1 Military forces 1 flfer expend-

percent I Received Given 1 taumiddot itures of GNP 1 sand I per man

(million (million I

(dol- (million (million (million (million I (thou- popushy1dollars) dollars) I(millions) () lars)

dollars) dollars) 1 dollars) dollars) I sands) lation) (dollars)

I I

__------_--

FAR EAST Burma Cambodia China Mainland China Republic 01 Indonesia

Japan+ Korea North Korea Republic oL Laos Malaysia

Mongolia Philippines Thailand Vietnam North Vietnam Republic of

SOUTH ASiA Afghanista n Ceylon India NepaL Pakistan

NEAR EAST Cyprus Iran Iraq I srae __ Jordan I

Kuwait I lebanon Saudi Arabia Syrian Arab Republic -

Yemen

United Arab Republic

AFRICA 0shy

Algeria Cameroon Cenlral African Republic Chad Congo (Brazzaville)

Congo (Kinshasa) Dahomey __ I Ethiopia Gabon Ghana _

Guinea __ Ivory Coast Kenya liberia libya

See footnotes at end of table

middot20 116 157

550 613

2155 16 13

1603 5

518

2901 I 6

530

280 I 672 105

63 45 I

383 i 137 I 14 I 666 I

1103 1

100 I 19 I 3

8 1

6 I

44 I 4

41 I 3

44 i

14 I 17 I 15 I 3 I

37 I

575 I 7276 1 5512

2300 3050

62090 1370 1781

43 000 800

15139

29594 1 438

8 020 I 2400 i 4042

575 i

2220 i

1 424 2200 I 1425

550

5740

50130 3365

800 200 270 174

1330 182

1534 200

1 994

669 1242 1330

254 2965

BY COUNTRY--Continued

12338 264 66

806 a 141

1137

43 57 66

F 8 3 101 29

4 000 99

100

101 1 134 305

28 103

8 10180

41 168 32

1 404 I 261 188 I 721

326 I

6000 100 110

7 140

12 359 351 193 174

1[gt 35 16 28

10 239 20 I

479 I 203 157 i 119

175 I

198 168 91

32

6892 161 120

5271 107

1234

35 12 7

37 6

34

90 1 85 I

149

82 I 75

123 I

1324 6

66 1 130

4 118

91 5 6

27 I 86 27 2 I

98 14 66

117 166 183

324 704 296 278

1472 I 274

1085 9

182 133 225

19

5 27 46 57 5 a

28 32

174 96

) 2 5

4111 519 478 250 110

87 34

107 54 3

31 7 I 6 181 232

2708 129 56 15 35 9

22 3 a 24

10 1 5 10 3 a to 34

185 260 43 134 78

200

1622 155 23 7 8

111

17 a 26

242 5

84

33 lfr 2 2

27 15 22

78

711 63 I

417

238 1

69 I 7

15 10 67

38 4 a

102 11 18

21 4 11 12 12

174 312 130 225

1644

37 60 22 7

74

313 I 11 I II 2

123

2

23 29

18 24

403 9 46

283 5

60

412 I 4 1

135 I 28 57

44 8

33 7

8

80

693 59 11 3

bull 4 6

28 I 5 1

1~ I 16

17 10 3

37

11

95 333

314 60 50

139 79

448

1721 30 48

1107 2

534

350 I

132 14 70 48

14 13

-15 11 1

61

1324 117

45 18 22 42

67 18 50 11 87

9 49 61 23 6

50

796

i I I i

s 33 47

167 447 735

1752 70 10

11133 1

15 1

bull 524 1

I 99i I

bull 225 I 992 1

771 55 I

I 7

12 956 69

8

bull 391

449 58 5

1 1 2 I

I 31 2 I

45 i 1 1

15 i

4 3-I 4

I 8 I

2 I 31 20 I 34 6

28

5 23

42

3 4 i 2 i I I 4 I

I 11 2 i 8

II 28 26 I

13 4

12 1

12 1

2 I

12 I 2 I 4 I 1 I 1

4 1 4 I

1678 775 774

2419 805 696

4584 1 534

379 358

1 895

606 2468

940 1 230

834

1230 229

1300 1415

333 989

2921 6000 2356 3043 8727 1 909

9 000 3750 6839 1986 1750

1703

2457 1724 3800 3 000 8 000 3 000

1419 2 000

911 3000 2933

2800 4250 5 000

750 4625

12

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968-Continued [In current dollarsjt

I Relative burden I Other public expenditures I Armed forcesI

IMilitary ForeignGross expend- national Popu- Military GNP Public economic aid S Forces MilitaryIArmeditures product lation expend- per educa- Public expendshy

tion 23 (perhealth 2 ituresitures as capita forces thoupercent per manReceived Given

of GNP sand (million (million (million (million (million (thoushy(dolshy (million popushydollars) dollars) (millions) lars) dollars) dollars) dollars) dollars) sands) lation)

I(dollars)()

I

BY COUNTRY -Continued

AFRICA-Continued Malagasy Republic MalawL __ MaIL __ Mauritania Morocco_

Niger Nigeria____ Rhodesia Southern__ __ _ Senegal ____ Sierra leone __ __

Somali Republic __ __ __ South Africa Republic of Sudan __ __ Tanzania Togo ____

Tunisia Ugandabull Upper Volta~ __ Zambia ______

OCEANIA ____ Australia __ ___ New Zealand

13 780 I 247 5 264 8 172

76 2981

342 91 3

6000 21 1138 15 827

340

8 170 356 14020

74 1560 13 943 I 121

183 213 I 14 471048 16 994 81 -5 5 I257 20 1325 41

1054 31500 148 26600 120

9~ I 4900 I 28 I

70 43 48 11

146

38 535 49 38 25

27 192 148

Oeveloped country or region (Country without asterisk is developing) All countries in region are developing Rough ACDA estimate

None or negligible I For most countries conversion into US dollars Is at official par value exchange

rates as rounded by AID For all Communist and several developing countries esllmated purchaSing power panties are used (See Conversion Rates page 35)

Due to dilferences in concepls coverage and reliability data on public education and health expenditures do not permit accurate comparisons between countries or in some cases between years for the same country

3 Public expendHures on education in 1968 are ACDA estimates based primarily on dala for 1967 or earlier (See Educalion page 34)

Informallon on educational expenditures which are made outside of governmentbudgets is not available on a worldwide baSis The rellive importance of these expenditures vanes sharply from co~nlry to country In the United States private expe~dltures In 1968 were $118 billion or 20 of the total Private expendilures conslltut~d the follOWing percentages of total national expenditures In 1967 (or Ih indicated year) according to UNESCO estimates

EI Salvador ______ Sudan

Percent Percent Argenlina (1966) __ __ Australia ____ __ Canada ____ __ Chile (1966) bull China Republic of ~_ poundcuador bull __ __ __ __

51 38 23 28 29 34

Israel (I966)~ __ Japan _____ Jordan __Kenya __ _ Malawi _ __ Philippines_

26 20 14 70 15 24

23 __ ___ __ 27 Bhiopia (1966) 47 Venezuela __ __ _______ __ 27Greece ________ __ 39 Vietnam Republic of (1965) __ 58Guatemala _______ __ __ 25 Zambia (1966) __ __ 73India __ 44

In Communist countrie~ extramiddotbudgetary expenditures are also significan For example according 10 offiCial data education expenditures by state cooperative and trade union enterprises and collective farms in the Soviet Union make up about 13 percent of the total parental payments to childrens institutions and schools mayconstitute another 6 percent

17 III 49 15 44 4 58 II 4 26

19 55 10 4 20 47 154 4 8 25 204 106 40 124

9

I

90 I 5 29 15 112 132 [ 83 108 18 230 42 I 13 -3 18 220 29 14 48 9 137 9 3 111

47 62 3 I 26 I

25 731 450 195 47 106 69 22 I 29 14 78 30 13 34 14 120 4 2 13

13 16

224 122

i 57 I

15

I 15

14 I 88 20

lO 1 9 50 i 6 I 23 15 326

1

I 20 I e 18 51

I

33 2131 1 1303 I 921 157 36 18

2211 1 781

i

i 1132

171 697 224 i

157

I 4 I I

4 I

62

I 70 I 5 5 i

2

8 38 24 4 1

2 I 2 I 3 i

I I

97 84 shy13 I

4

3250 1000 1250 8000 1226

3000 1300 4200 3000 1500

1000 9368 3083 3250 3000

609 2667 2500 6667

10866 11524 6615

Public expenditures on health in 1968 are based in part on data for earlier years(See Health page 35)

As 10 educational expenditures Ihe portion of tolal health expenditures which is exlramiddotbudgetary varies greatly from country to country Scattered information suggests that on average Ihe private portion of health expenditures may be higherthan the private portion of education expenditures In the United States in 1968 private health expenditures amounted to $352 billion or 62 percent of total health expenditures

In Communist countries extramiddotbudgetary health expenditures are made by state cooperative and trade unum enterprises anj collective farms as well as households In the Soviet Union for example they constitute about 20 percent of total health expenditures according to official sources

Economic aid given by Communist countries to nonmiddotCommunist counlries is included in the world total of aid received It is not distributed by individual recipientcounlries or regions however as accurate data on such distribution are no available (See Foreign Economic Aid page 34_)

Military expenditures and GNP are not fully comparable due to the use of different dollar conversion rates lor the two variables in the Soviet Union (see footnote 9)Using the more valid ralios shown in parentheses for the Soviet Union and Ihe Warsaw Pact total the ratio for the world is eslimated to be 6-7 percent and for Europe 5-6 percent

1 Ineludes West Berlin Includes paramililary as well as regular forces The implied relationship between dollar amounts of Soviet GNP and military

expenditures (or GNP and public expenditures on educalion and health) is not valid due 10 the use of di~erent types of conversion rates lor GNP and particular sectors It is estimated Ihat the actual ratio of military expenditures to GNP would fall somemiddot where within the range indicated in parentheses the lower part of the range reflecting a comparison of military expenditures and GNP in faclormiddoteost ruble values and the upper estimate representing dollar values converted on a comparable basis (See Conversion Rates page 35)

10 Since either or both military expenditures and GNP estimates are approximations the resulting ratio should be viewed with particular caution

II For Sweden SWitzerland and Israel the high rate of military expendilures per man rellects small standing forces with a capability for extremely rapid mobilization of large reserve forces

13

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 8: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

Chart V

Dollars PER CAPITA EXPENDITURES FOR400------------------------shy MILITARY EDUCATION AND HEALTH BY REGION 1968

bull Military

bull Public Education

D Public Health Dollars

------------------------------------------------------------200

------------------------------------------------------100

NORTH EUROPE OCEANIA NEAR AMERICA EAST

current world income They accounted for only 7 percent of world public expenditures on henlth care and for 10 percent on education The inshyclusion of international economic assistance would of course add somewhat to the resources available to developing countries but the addition would represent a relatively minor proportion of their GNP All foreign economic aid loans as ell as grants amounts to less than 2 percent of GNP of developing countries

On the other hand the developing areas with their large populations accounted ill 1968 for more than half the 24 million men under arms in the world

While the budgeted military expenditures of the developing countries were only 12 percent of the world total in 1968 this is not the full amount that went into maintaining military forces in these countries Military aid contributions of the major powers are a significant supplement to the military expenditures of developing countries Military aid according to the standard budgetary conshycept of this report is counted among the military expenditures of the donors-not in the recipients military budgets In this respect the expenditure data and chart IV tend to understate the relative military capacity of the developing world

Growth rates recorded since 1964 (see table

FAR EAST LATIN AFRICA AMERICA

below) suggest that developing countries have gradually enlarged their share of world milishytary effort maintaining it rate of increase in pershysonnel in the armed forces as well as in military expenditures considerably larger than that of developed countries Howmer this expunsion of military effort was accompanied by a lowering of their relative economic standing when jlopulnshytion increase is taken into account

AVERAGE ANNUAL GROWTH RATES 1964-70

(Values in cunstant prices)

World Developed Developing

Military expenditures 2 8 2 3 ii 9 Armed forces 19 O 0 l i

Total GNP 4 9 4 8 j 7 Population 2 1 10 2) Civilian GNP per capita 30 4 0 1 1

GNP le6~ military expenditure

Other Public Expenditures

A comparison of world military expenditures with other pnblic expenditures such as public education public health and foreign economic assistance is set forth ill chart III (page 3) Reshygional comparisons are shown ill rhart V and national data may be found in statistical tables II and III Comprehensive data on private expendishytures on these civilian programs are not avail-

SOUTH ASIA

5

Chart VI

MILITARY EXPENDITURES AND ARMED FORCES 1964 amp 1968

80

1964 1968 60 6Expenditures (b j I 5)

~ ~ Forces (million men) shy c-0 QJ-0

EE c

0

~ c ~ 0

ii5

20

EUROPE FAR EAST

2

AFRICA OCEANIA

able See table II footnotes a and 4 for available data on private spending in individual countries

Manpower

Following a steady upward trend between 1964 and 1968 the number of men under arms began to decline in 1969 and 1970 At year-end total armed forces numbered an estimated 23 million about 05 million fewer than at the 1968 peak although still more than 2 million higher than in 1964

Chart VI shows the large numbers of active duty forces belonging to two of the seven geoshygraphic regions In 1968 almost 16 million or two-thirds of the men under arms were in the forces of European and Far Eastern countries North America ranked next with 36 million under arms and the Ncar East next with 18 million All regions increased forces between 1964 and 1968 the largest rise in absolute numbers being in the Far East

Both developing and developed countries havo increased military expenditures more rapidly than personnel The trend is to larger outlays per man in uniform even when allowance is made for price rises This rate of course varies widely among individual countries Chart VIII (page 31) showing several indicators for the 10 major military powers illustrates the range in expendishytures per man in uniform

In addition to the men and women serving directly in the armed forces military-related emshyployment remained high particularly in the inshydustrialized countries In Europe as a whole manshypower in the armed forces and in industries and trades related to military requirements was estishymated at almost 10 percent of the economically active population Worldwide manpower in the armed forces and in military-related employment in 1968 was close to 60 million a number equaling the total population of West Germany

6

418-790 0

DEFINITIONS OF TERMS

Gross National Product (GNP) represents an economys total output of goods and services valued at current market prices paid by the ultimate COIlsumer

JiilitarJ Expenditures are current and capital expenditures to meet the needs of the armed forces including expenditures of national defense agencies for military programs expenditures for the military components of such mLxed activities as atomic energy space ami research and development military assistance to foreign countries and expenditures on paramilitary forces where they contribute subshystantially to a countrys military capabilities

Foreign Economic Aid Reeeited by developing countries comprises official bilateral grants and loans (gross of repayments) disbursed by Development Assistance CommIttee (DAC) countries and net aid received from multilateral agencies (Aid received from Communist countnes is shmvn in the world total but is not included in country or regional totals) Aid given by DAC countries includes official bilateral aid and net contributions to multilateral agencies Aid given by Communist countries represents deliveries to non-Comshymunist developing countries only Aid from private sources and milishytary assistance are not included

Public Education Expenditures include current and capital expendishytures for preschool primary secondary and university-level educashytion Wherever possible expenditures by all levels of government are covered Private spending is not included

PIblie Health Etpenditlfs represent current expenditures (and whershyever possible capital expenditures) by all levels of government for the provision of medical services Private spending is not included

Armed Forces refer to military personnel actually on duty including paramilitary forces where these forces contribute substantially to 11

countrys military capabilities Reserve forces are not included

DeulopinJ OOlntrie~ 93 in number are the countries listed under Latin America the Far East except Japan South Asia and the Near East and Africa except the Republic of South Africa and also include in Europe Albania Bulgaria Greece Portugal Spain Turkey and Yugoslavia

Dueloped COllntric) 27 in number are the countries listld under North America Oceania European NATO except Greece Portugal and Turkey the Varsaw Pact except Bulgaria and include Austria Ireland Finland Sweden Switzerland Japan and South Africa

For further discussion of terms as used in this report ee Statistical Notes page 32

- 71 - 2 7

STATlSTICAL TABLES

Table I presents a summary of recent trends in two key indicators military expenditures and GNP by major groups of countries In order to provide as current a picture as present statistical resources permit estimates for 1969 and 1970 are included However since national data for the latter years are preliminary and incomplete these estimates are subject to revision The data in constant 1968 dollars are approximate estimates based on the use of average price and exchange rate adjustment factors for groups of countries and do not reflect adjustments by individual country

Table II is the basic table showing a variety of data on each of 120 individual countries in 1968

the latest year for which data are available on a worldwide basis Table III shovs some of these same data expressed on a per capita basis Hisshytorical trends by country and year 1964-68 are presented in table IV (military expenditures and GNP) and table V (armed forces)

Table VI ranks the first 30 countries of the world in terms of six main factors of military and economic strength

Chart VII RELATIVE BURDEN OF MILITARY EXPENDITURES 1968

ll Z G LI o tf CIl laquo CIl lLJ 0 gt l-e z lLJ ll X lLJ

gtshy0 laquo IshyJ E

OVER 10

5-10

~------

2-5

---~~-

1-2

UNDER 1

UNDER $100middot

1~0$

BURMA

CHAO CONGO

KlNSUA5A DAHOMEY ETHiOP(A HIIII INDIA INOllNJSIAsbt1Ju

REPUBliC UGANOA

AfGflANISTAN MAll tANZANIA u~PEflOtTil

~ -~

tfALAN1 NEPAL NIGet

$100-199

UNITED AS

R9II1JIIC YIETNAM

NORTH VIETtiAM

IEPU911COF

CAMBQI)IA CHINA

MAINLANO

BOLIVIA CAMEROON GIJINEA (ORA

REPfBtlC OF MAIIRUANIA PAKISTAN SUIAti TIAlIANO YEMEN

CENTRAL AFRICAN REPIlBlIC

KENVil MAUGASY

RtII~LlC NERIA TOGO

CEYLON SIERRA LEDflE

GROSS NATIONAL PRODUCT PER CAPITA

$200-299 $300-499 $500-999 $1000-1999 i $2000-2999 OVER$3000

cmNA SAUDI ARABIA ISRAEl REItf811COF

IRAQ IJORDAN

KOREA NORTH

___ f -------- shy--~------

UlAN IALBANIA CUBA POLAND UNITED SYRIMtARAB PORTUGAL USSR STATES

REPUBLIC UNITED KINGDOM

ALGERIA BRAZIL CHILE BULGARIA AUSTRALIA CANADA CONGO LEBAtiON GREECE CZECHOmiddot BElGIUM KUWAIT

BRAZllVILLE MALAYSIA SOUlli AFRICA SLOVAKIA DENMARK SWEDEN MM1NICtN MONGOLIA REPUBLIC OF GERMANY EAST FRANCE

I BUe fRU SfAIN HUNGARY GERMANY GHANA TURKEY VENEZUElA ITALY WEST MOROCCO YUGOSLAVIA NETHERLANDS NORWAY

ROMANIA SWITZERLAND

___ shy _-shy --------COLOMelA QABON ARGENTINA AUSTRIA LUXEMBOURG ECUADOR IVORY COAST CYIRUS FINLAND ElSALVA[)OR IllCARIGUA URUGUAY LIBYA GUATEMALA ZAMBIA NEW ZEALAND HONDURAS lIIiiRIA PARAGUAY PHilI PPI NES RHODpoundSIA

$OUTHERN SENEGAL nJfUSIA

-~------ shyCOSTA RICA Msueo IRELAND ICELANO GUYANA PANAMA JAPAN JAMAICA TRINIDAD amp

I TOBAGO

I

C_~1____l1li11II1II_________111l1li_______IIII_I_UIIIIJ_IIIIIJIIIIbull __IIIII11IIIIIIII1IIIIIIII1III11III1I1I11i11111lflllll1illliililil_-__

8

TABLE I-SUMMARY TRENDS IN MILITARY EXPENDITURES AND GNP 1964-70

Military Expenditures Gross National Product

1964 1965 1966 1967 1968 1969 1970 1964 1965 1966 1967 1968 1969 1970 est est est est

TOTAL

(Billions of Current Dollars)

WORLD 140 144 161 180 191 199 204 1936 2106 2301 2464 2685 2936 3188 Developed 125 127 143 160 169 175 177 1603 1734 1907 2048 2235 2421 2625 Developing _ 15 17 18 20 22 24 27 333 372 394 416 450 515 563

NATO __ _ 73 74 86 100 105 106 103 1073 1165 1268 1352 1462 1587 l681 Warsaw Pact 49 51 54 57 61 66 71 397 428 466 506 553 593 655 Other _ 18 19 21 23 25 27 30 466 513 567 606 670 756 852

811110ns of Constantl968 Dollars) (

WORLDbullbullbull _bullbullbullbullbullbullbull 158 159 172 188 191 192 186 22112 2325 2452 25711 2685 2830 2940 Developedbullbullbullbullbullbullbullbullbull _bullbull 141 141 154 168 169 169 162 1838 1936 2047 2148 2235 2346 2431 Devl1lopingbull __ ____ ______ bull____ 17 18 18 20 22 23 24 364 389 405 422 4511 484 509

NATObullbullbullbullbull __ bullbullbullbullbullbullbullbull __ 83 82 92 105 105 102 94 1231 1301 1360 1418 1462 1539 1558 Warsaw PacL__ ________ bull__ 55 56 58 59 61 63 64 446 472 501 526 553 566 594 Other__ ____ bull ________ bull __ bull __ 20 21 22 24 25 27 28 525 552 591 626 670 725 788

PER CAPITA

(Current Dollars)

WORLD __ 43 44 48 52 54 56 56 599 637 682 716 765 820 873 Developed _ ___ 134 135 151 167 174 179 180 1725 1 845 2009 2126 2310 2479 2666 Deyeloping __ 7 7 9 10 145 157 163 168 177 198 211

NATO _ 145 146 168 193 201 201 192 2139 2295 2469 2607 2792 3003 3151 Warsaw Pact 151 153 162 169 180 192 205 1213 1292 1398 1501 1626 1730 1897 Other __ ____ 7 8 9 9 10 11 194 208 224 235 253 279 307

(Comltanll968 Dollars)

WORlD____ __ bull _bull _____ bullbull ______ 49 48 51 55 54 54 51 682 703 727 747 765 790 805 Oeveloped ______ bullbull __ __ __ _____ bullbull 152 150 162 175 174 173 164 1978 2060 2157 2230 2310 2402 2469 Developlnllbull __ _____ __ bull ______ 7 8 8 8 9 9 9 158 165 167 170 177 186 191

NATO bullbull _ __ __ bull____________ _ bull ___ bull __ 165 162 180 202 201 194 177 2455 2563 2648 2734 2792 2911 2921 Warsaw PacL ________ ___________ 170 169 174 176 180 183 186 1362 1425 1502 1562 1626 1 652 1718 other _ ______ _____ __ 8 8 9 9 9 10 10 219 224 234 242 253 268 284

9

----

___

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968 [I n current dollars)

Relative burden Other public expend itures Armed forces

GrossMilitary ForcesforeignPopu- Militarynationalexpend-

MilitaryArmedeconomic aidPublic Publicexpend- GNPproductitures lation expend-health 14 forcesper educashyitures as

(per iturestion 23percent capita thou- per manReceived Givenof GNP sand

(thoushy popushy(million (million(million(million(dolshy(million(million (dollars)lation)sands)dollars) dollars)dollars)lars) dollars)dollars) (millions) ()dollars)

SUMMARY

WORLD TOT AL ---- Developed DEvEloping ----- shy

NORTH AMERICAmiddot - - - ---~ - shy

EUROPL Developed Developing

LATIN AMERiCAmiddotmiddot shy ~ --~

FAR EASL Developed - -_ - ~ ~

Developing_

SOUTH ASiA --

NEAR EAST _ - - ~ ~ ~

AFRICA - - - - _ shyDeveloped - - shy

~ ~ shy

_ -~ Developing

OCEANIA

WORLD TOTAL __ ____

NORTH AMERICA_ __ United Statesmiddot __ Canadamiddotbull _ __

EUROPL

NATO European Belgium __ __ Denmark France Germany WesP _____

Greece Icelandmiddot _ Italy __ Luxembourg Netherlands __

See footnotes at end 01 table

65521 60769 4752

23788

37051 35552 1499

1364

889 313 576

403

412

693 195 498

921

86387382

~ 8541 7382 97

shy 4282

576 3353 ~ 3306

47

1410

576

~

1551 846 796-50

1721

350

1324

1551

~

I 324

shy 157

23819 7 10973 II 12846 5

3602 16

8612 12 6986 II 1626 14

1153 4

7161 6 250 2

6911 6

1752 3

993 11 i

449 2 38 2

411 2

i 97 7 I

I

800 15381 170

2287o

1008 12002 1872

1938

1618 4584 I 573

1230

2921

2457 9368 1818

10866

190733 168779 21954

82379

86888 83844 3044

2235

12018 1146

10872

2155

2901

1103 356 747

1054

190733

82379 80596 I 783

86888

22668 602 345

6118 5278

367

2245

90 I

2685006 2234940

450066

931800

1185000 1115700

69300

113551

281335 141 920 139415

62090

29594

50130 14020 36 110

31500

2685006

931800 865700 66 100

1185000

529900 20700 12400

126600 132700

7600 500

74800 800

25 200

35091 9675

25416

221 9

7256 6106 1150

2617

12338 10LO

11327

6892

91 5

2708 192

2516

148

I

35091

221 9 201 2 208

7256

I 3016 I

96 50

499 602

I

88

21 528

3 127 1

71 72 49

118

73 75 44

20

43 8

78

35

98

22 25 21

33

765 2310

177

4199

1633 1827

603

434

228 1404

123

90

324

185 731 144

2131 i

BY COUNTRY

611

118 93 27

73

43 29 28 48 40

48

30 10 36

7651

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 I 418 2381 I 978

130172 117313 12859

50815

60318 58745 1573

2567

11138 6000 5138

1324

1085

1622 450

1172

1303

130172

50815 46400 4415

60318

17883 893 600

3354 3863

157 12

2730 29

1214

65521 7 382 1

J23788 4282 I

21 382 4 048 1 2406 234

8008

22870 23027 17480

100898612 12

7491 99

103026 10 6081

46 7500 505

9 12 115

486 10

108608

18 2280161

510244~ t 8000

129 i 10 3

7023

37051

15327 530 670 292

6874

middot90 5

696 -20 973

3353576

2829

-I 93 313

29 980 755 i

72

257

~I 139

10

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued I n current dollars]

Relative burden i Other public expenditures 1

Armed lorces

I---I--~-~I----Imiddot ----------shyMilitary Gross Popushy Military Foreign Forces i

Ituresexpendmiddot national

product lation expend GNP Public Public economic aid Armed Military itures as per educa- health 24 bull lorces Iexpend-percent capita tlon 3 1 (per itures 01 GNP Received Given thoumiddot per man

sand) (million (million (dolshy (million (million (million (million (thou- popumiddotdollars) dollars) (millions) () lars) dollars) dollars) dollars) dollars) I sands) lalion) I (dollars)

BY COUNTRY~Continued

NATO-Continued Norway Portugal _ Turkey United Kindgom

322 359 573

5545

9 000 5000

11600 103000

38 95

335 553

36 72 49 54

2357 528 346

1863

403 57

321 4450

180 79

139 4779

241

24 47

505

35 183 514 427

9 19 15 8

9200 1 962 1115

12986

NATO Total 105047 1461700 5235 72 2792 68698 39117 313 7 III 6628 13 15849

Warsaw PacL Bulgaria __ Czechoslovakia _ Germany East __ ___ Hungary _____ __

61 100 300

1 360 1 450

340

553200 9100

28400 30800 13800

3402 84

144 171 103

(7-9) 33 48 47 25

1626 1083 1972 1801 1340

38604 367

1093 I 031

580

18281 272 982 792 339

400

100

4783 173 265 196 l37

14 21 18 II 13

12774 1734 5132 7398 2482

Poland__ ____ __ __ _ Romania __ Soviet Union

1950 700

55000

37400 20700

413000

323 197

2380

521158 34 1051

(8-10) 1735

1643 890

33000

1396 600

13900 300

319 223

3470

10 II 15

6113 3139

15850

Other European Albania ___ Austria _ Finland _ _ __ _ Ireland _

3120 76

150 156

27

101900 800

11400 8 000 3 000

838 20 74 47 29

31 1095

13 2 a 9

I 216 400

1551 1706 1 031

3831 70

402 585 110

3443 30 567 344

ll4

263 124

31

803 51

50 39

10

10 26 7 8 3

3885 1490 3 000 4000 2700

Spain _ Sweden_ _ Switzerland _ Yugoslavia _

913 977 365 456

25200 26300 17200 10000

3261 79 61

202

36 37 21 46

773 3322 2798

496

290 1486

577 3ll

403 1 070

429 486

181

82

72 21

305 78 31

239

91 10 5

12

2993 u 12526 11 11774

1908

LATIN AMERICA __ Argentina _ Bolivia _ BraziL_ Chile _ Colombia _

2235 380 17

651 127 98

113557 171l1

786 27353 5670 5638

261 7 236 44

802 92

198

20 22 22 24 22 17

434 725 177 310 614 284

2567 I 346

25 169 205 111

1364 26 3

81 155

96

1410 15 52

319 220 170

1153 8144

18 225 63 55

4 6 4 3 7

1938 2639

944 2893 2016 1782

Cost Ricbull _ _ Cuba bullbull ___ __ _ Dominican Republic_ _ Ecuadoc ___ EI Salvador

300 30 26 10

734 bull 5 000

1169 1475

930

16 76 4 a 57 32

106 a 26 18 11

449 658 295 259 290

33 281

26 35 24

20 60 -14

6 14

15 1

54 28 10

394 18 17 6

52 5 3 2

761 1667 1529 1667

Guatemala _ __ Guyana _ _ HaitL __ Honduras _ Jamaica _

16 2

1500 215 326 621 951

5 a 7

50 25 L9

11 9

21 14 5

299 303

65 245 497

27 8 3

17 22

34 8 4 7

17

24 16 6

15 28

9 1 5

2 1 1 2 1

1778 2000 1 400 1800 2500

Mexico_ Nicaragua __ _ Panama _ __ Paraguay _ Peru ____

184 10 1

10 132

26310 697 826 511

4287

473 19 14 22

128

7 14 1

20 31

557 374 602 229 336

504 16 33 9

151

316 5

16 3

51

210 19 19 23 57

70 i6

13 50

6

2629 1667

769 2640

Trinidad amp Tobago __ Uruguay_ bull Venezuela

3 23

194

748 1589 9110

10 28 97

4 14 21

726 564 941

19 13

396

10 21 78

1 13

38

3 000 1 769 5105

See footnotes at end of table

11

TABLE It-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued (I n current dollars) 1

Military expendshy

itures

Gross national product

Popushylation

Relative burden Other public expenditures

I

I Public

ForeignMilitary GNP Public economic aid S expendshy per I educashyitures as I capita 1 tion Zbull1 I health

Armed forces

I 1Forces Armed 1 Military forces 1 flfer expend-

percent I Received Given 1 taumiddot itures of GNP 1 sand I per man

(million (million I

(dol- (million (million (million (million I (thou- popushy1dollars) dollars) I(millions) () lars)

dollars) dollars) 1 dollars) dollars) I sands) lation) (dollars)

I I

__------_--

FAR EAST Burma Cambodia China Mainland China Republic 01 Indonesia

Japan+ Korea North Korea Republic oL Laos Malaysia

Mongolia Philippines Thailand Vietnam North Vietnam Republic of

SOUTH ASiA Afghanista n Ceylon India NepaL Pakistan

NEAR EAST Cyprus Iran Iraq I srae __ Jordan I

Kuwait I lebanon Saudi Arabia Syrian Arab Republic -

Yemen

United Arab Republic

AFRICA 0shy

Algeria Cameroon Cenlral African Republic Chad Congo (Brazzaville)

Congo (Kinshasa) Dahomey __ I Ethiopia Gabon Ghana _

Guinea __ Ivory Coast Kenya liberia libya

See footnotes at end of table

middot20 116 157

550 613

2155 16 13

1603 5

518

2901 I 6

530

280 I 672 105

63 45 I

383 i 137 I 14 I 666 I

1103 1

100 I 19 I 3

8 1

6 I

44 I 4

41 I 3

44 i

14 I 17 I 15 I 3 I

37 I

575 I 7276 1 5512

2300 3050

62090 1370 1781

43 000 800

15139

29594 1 438

8 020 I 2400 i 4042

575 i

2220 i

1 424 2200 I 1425

550

5740

50130 3365

800 200 270 174

1330 182

1534 200

1 994

669 1242 1330

254 2965

BY COUNTRY--Continued

12338 264 66

806 a 141

1137

43 57 66

F 8 3 101 29

4 000 99

100

101 1 134 305

28 103

8 10180

41 168 32

1 404 I 261 188 I 721

326 I

6000 100 110

7 140

12 359 351 193 174

1[gt 35 16 28

10 239 20 I

479 I 203 157 i 119

175 I

198 168 91

32

6892 161 120

5271 107

1234

35 12 7

37 6

34

90 1 85 I

149

82 I 75

123 I

1324 6

66 1 130

4 118

91 5 6

27 I 86 27 2 I

98 14 66

117 166 183

324 704 296 278

1472 I 274

1085 9

182 133 225

19

5 27 46 57 5 a

28 32

174 96

) 2 5

4111 519 478 250 110

87 34

107 54 3

31 7 I 6 181 232

2708 129 56 15 35 9

22 3 a 24

10 1 5 10 3 a to 34

185 260 43 134 78

200

1622 155 23 7 8

111

17 a 26

242 5

84

33 lfr 2 2

27 15 22

78

711 63 I

417

238 1

69 I 7

15 10 67

38 4 a

102 11 18

21 4 11 12 12

174 312 130 225

1644

37 60 22 7

74

313 I 11 I II 2

123

2

23 29

18 24

403 9 46

283 5

60

412 I 4 1

135 I 28 57

44 8

33 7

8

80

693 59 11 3

bull 4 6

28 I 5 1

1~ I 16

17 10 3

37

11

95 333

314 60 50

139 79

448

1721 30 48

1107 2

534

350 I

132 14 70 48

14 13

-15 11 1

61

1324 117

45 18 22 42

67 18 50 11 87

9 49 61 23 6

50

796

i I I i

s 33 47

167 447 735

1752 70 10

11133 1

15 1

bull 524 1

I 99i I

bull 225 I 992 1

771 55 I

I 7

12 956 69

8

bull 391

449 58 5

1 1 2 I

I 31 2 I

45 i 1 1

15 i

4 3-I 4

I 8 I

2 I 31 20 I 34 6

28

5 23

42

3 4 i 2 i I I 4 I

I 11 2 i 8

II 28 26 I

13 4

12 1

12 1

2 I

12 I 2 I 4 I 1 I 1

4 1 4 I

1678 775 774

2419 805 696

4584 1 534

379 358

1 895

606 2468

940 1 230

834

1230 229

1300 1415

333 989

2921 6000 2356 3043 8727 1 909

9 000 3750 6839 1986 1750

1703

2457 1724 3800 3 000 8 000 3 000

1419 2 000

911 3000 2933

2800 4250 5 000

750 4625

12

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968-Continued [In current dollarsjt

I Relative burden I Other public expenditures I Armed forcesI

IMilitary ForeignGross expend- national Popu- Military GNP Public economic aid S Forces MilitaryIArmeditures product lation expend- per educa- Public expendshy

tion 23 (perhealth 2 ituresitures as capita forces thoupercent per manReceived Given

of GNP sand (million (million (million (million (million (thoushy(dolshy (million popushydollars) dollars) (millions) lars) dollars) dollars) dollars) dollars) sands) lation)

I(dollars)()

I

BY COUNTRY -Continued

AFRICA-Continued Malagasy Republic MalawL __ MaIL __ Mauritania Morocco_

Niger Nigeria____ Rhodesia Southern__ __ _ Senegal ____ Sierra leone __ __

Somali Republic __ __ __ South Africa Republic of Sudan __ __ Tanzania Togo ____

Tunisia Ugandabull Upper Volta~ __ Zambia ______

OCEANIA ____ Australia __ ___ New Zealand

13 780 I 247 5 264 8 172

76 2981

342 91 3

6000 21 1138 15 827

340

8 170 356 14020

74 1560 13 943 I 121

183 213 I 14 471048 16 994 81 -5 5 I257 20 1325 41

1054 31500 148 26600 120

9~ I 4900 I 28 I

70 43 48 11

146

38 535 49 38 25

27 192 148

Oeveloped country or region (Country without asterisk is developing) All countries in region are developing Rough ACDA estimate

None or negligible I For most countries conversion into US dollars Is at official par value exchange

rates as rounded by AID For all Communist and several developing countries esllmated purchaSing power panties are used (See Conversion Rates page 35)

Due to dilferences in concepls coverage and reliability data on public education and health expenditures do not permit accurate comparisons between countries or in some cases between years for the same country

3 Public expendHures on education in 1968 are ACDA estimates based primarily on dala for 1967 or earlier (See Educalion page 34)

Informallon on educational expenditures which are made outside of governmentbudgets is not available on a worldwide baSis The rellive importance of these expenditures vanes sharply from co~nlry to country In the United States private expe~dltures In 1968 were $118 billion or 20 of the total Private expendilures conslltut~d the follOWing percentages of total national expenditures In 1967 (or Ih indicated year) according to UNESCO estimates

EI Salvador ______ Sudan

Percent Percent Argenlina (1966) __ __ Australia ____ __ Canada ____ __ Chile (1966) bull China Republic of ~_ poundcuador bull __ __ __ __

51 38 23 28 29 34

Israel (I966)~ __ Japan _____ Jordan __Kenya __ _ Malawi _ __ Philippines_

26 20 14 70 15 24

23 __ ___ __ 27 Bhiopia (1966) 47 Venezuela __ __ _______ __ 27Greece ________ __ 39 Vietnam Republic of (1965) __ 58Guatemala _______ __ __ 25 Zambia (1966) __ __ 73India __ 44

In Communist countrie~ extramiddotbudgetary expenditures are also significan For example according 10 offiCial data education expenditures by state cooperative and trade union enterprises and collective farms in the Soviet Union make up about 13 percent of the total parental payments to childrens institutions and schools mayconstitute another 6 percent

17 III 49 15 44 4 58 II 4 26

19 55 10 4 20 47 154 4 8 25 204 106 40 124

9

I

90 I 5 29 15 112 132 [ 83 108 18 230 42 I 13 -3 18 220 29 14 48 9 137 9 3 111

47 62 3 I 26 I

25 731 450 195 47 106 69 22 I 29 14 78 30 13 34 14 120 4 2 13

13 16

224 122

i 57 I

15

I 15

14 I 88 20

lO 1 9 50 i 6 I 23 15 326

1

I 20 I e 18 51

I

33 2131 1 1303 I 921 157 36 18

2211 1 781

i

i 1132

171 697 224 i

157

I 4 I I

4 I

62

I 70 I 5 5 i

2

8 38 24 4 1

2 I 2 I 3 i

I I

97 84 shy13 I

4

3250 1000 1250 8000 1226

3000 1300 4200 3000 1500

1000 9368 3083 3250 3000

609 2667 2500 6667

10866 11524 6615

Public expenditures on health in 1968 are based in part on data for earlier years(See Health page 35)

As 10 educational expenditures Ihe portion of tolal health expenditures which is exlramiddotbudgetary varies greatly from country to country Scattered information suggests that on average Ihe private portion of health expenditures may be higherthan the private portion of education expenditures In the United States in 1968 private health expenditures amounted to $352 billion or 62 percent of total health expenditures

In Communist countries extramiddotbudgetary health expenditures are made by state cooperative and trade unum enterprises anj collective farms as well as households In the Soviet Union for example they constitute about 20 percent of total health expenditures according to official sources

Economic aid given by Communist countries to nonmiddotCommunist counlries is included in the world total of aid received It is not distributed by individual recipientcounlries or regions however as accurate data on such distribution are no available (See Foreign Economic Aid page 34_)

Military expenditures and GNP are not fully comparable due to the use of different dollar conversion rates lor the two variables in the Soviet Union (see footnote 9)Using the more valid ralios shown in parentheses for the Soviet Union and Ihe Warsaw Pact total the ratio for the world is eslimated to be 6-7 percent and for Europe 5-6 percent

1 Ineludes West Berlin Includes paramililary as well as regular forces The implied relationship between dollar amounts of Soviet GNP and military

expenditures (or GNP and public expenditures on educalion and health) is not valid due 10 the use of di~erent types of conversion rates lor GNP and particular sectors It is estimated Ihat the actual ratio of military expenditures to GNP would fall somemiddot where within the range indicated in parentheses the lower part of the range reflecting a comparison of military expenditures and GNP in faclormiddoteost ruble values and the upper estimate representing dollar values converted on a comparable basis (See Conversion Rates page 35)

10 Since either or both military expenditures and GNP estimates are approximations the resulting ratio should be viewed with particular caution

II For Sweden SWitzerland and Israel the high rate of military expendilures per man rellects small standing forces with a capability for extremely rapid mobilization of large reserve forces

13

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 9: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

Chart VI

MILITARY EXPENDITURES AND ARMED FORCES 1964 amp 1968

80

1964 1968 60 6Expenditures (b j I 5)

~ ~ Forces (million men) shy c-0 QJ-0

EE c

0

~ c ~ 0

ii5

20

EUROPE FAR EAST

2

AFRICA OCEANIA

able See table II footnotes a and 4 for available data on private spending in individual countries

Manpower

Following a steady upward trend between 1964 and 1968 the number of men under arms began to decline in 1969 and 1970 At year-end total armed forces numbered an estimated 23 million about 05 million fewer than at the 1968 peak although still more than 2 million higher than in 1964

Chart VI shows the large numbers of active duty forces belonging to two of the seven geoshygraphic regions In 1968 almost 16 million or two-thirds of the men under arms were in the forces of European and Far Eastern countries North America ranked next with 36 million under arms and the Ncar East next with 18 million All regions increased forces between 1964 and 1968 the largest rise in absolute numbers being in the Far East

Both developing and developed countries havo increased military expenditures more rapidly than personnel The trend is to larger outlays per man in uniform even when allowance is made for price rises This rate of course varies widely among individual countries Chart VIII (page 31) showing several indicators for the 10 major military powers illustrates the range in expendishytures per man in uniform

In addition to the men and women serving directly in the armed forces military-related emshyployment remained high particularly in the inshydustrialized countries In Europe as a whole manshypower in the armed forces and in industries and trades related to military requirements was estishymated at almost 10 percent of the economically active population Worldwide manpower in the armed forces and in military-related employment in 1968 was close to 60 million a number equaling the total population of West Germany

6

418-790 0

DEFINITIONS OF TERMS

Gross National Product (GNP) represents an economys total output of goods and services valued at current market prices paid by the ultimate COIlsumer

JiilitarJ Expenditures are current and capital expenditures to meet the needs of the armed forces including expenditures of national defense agencies for military programs expenditures for the military components of such mLxed activities as atomic energy space ami research and development military assistance to foreign countries and expenditures on paramilitary forces where they contribute subshystantially to a countrys military capabilities

Foreign Economic Aid Reeeited by developing countries comprises official bilateral grants and loans (gross of repayments) disbursed by Development Assistance CommIttee (DAC) countries and net aid received from multilateral agencies (Aid received from Communist countnes is shmvn in the world total but is not included in country or regional totals) Aid given by DAC countries includes official bilateral aid and net contributions to multilateral agencies Aid given by Communist countries represents deliveries to non-Comshymunist developing countries only Aid from private sources and milishytary assistance are not included

Public Education Expenditures include current and capital expendishytures for preschool primary secondary and university-level educashytion Wherever possible expenditures by all levels of government are covered Private spending is not included

PIblie Health Etpenditlfs represent current expenditures (and whershyever possible capital expenditures) by all levels of government for the provision of medical services Private spending is not included

Armed Forces refer to military personnel actually on duty including paramilitary forces where these forces contribute substantially to 11

countrys military capabilities Reserve forces are not included

DeulopinJ OOlntrie~ 93 in number are the countries listed under Latin America the Far East except Japan South Asia and the Near East and Africa except the Republic of South Africa and also include in Europe Albania Bulgaria Greece Portugal Spain Turkey and Yugoslavia

Dueloped COllntric) 27 in number are the countries listld under North America Oceania European NATO except Greece Portugal and Turkey the Varsaw Pact except Bulgaria and include Austria Ireland Finland Sweden Switzerland Japan and South Africa

For further discussion of terms as used in this report ee Statistical Notes page 32

- 71 - 2 7

STATlSTICAL TABLES

Table I presents a summary of recent trends in two key indicators military expenditures and GNP by major groups of countries In order to provide as current a picture as present statistical resources permit estimates for 1969 and 1970 are included However since national data for the latter years are preliminary and incomplete these estimates are subject to revision The data in constant 1968 dollars are approximate estimates based on the use of average price and exchange rate adjustment factors for groups of countries and do not reflect adjustments by individual country

Table II is the basic table showing a variety of data on each of 120 individual countries in 1968

the latest year for which data are available on a worldwide basis Table III shovs some of these same data expressed on a per capita basis Hisshytorical trends by country and year 1964-68 are presented in table IV (military expenditures and GNP) and table V (armed forces)

Table VI ranks the first 30 countries of the world in terms of six main factors of military and economic strength

Chart VII RELATIVE BURDEN OF MILITARY EXPENDITURES 1968

ll Z G LI o tf CIl laquo CIl lLJ 0 gt l-e z lLJ ll X lLJ

gtshy0 laquo IshyJ E

OVER 10

5-10

~------

2-5

---~~-

1-2

UNDER 1

UNDER $100middot

1~0$

BURMA

CHAO CONGO

KlNSUA5A DAHOMEY ETHiOP(A HIIII INDIA INOllNJSIAsbt1Ju

REPUBliC UGANOA

AfGflANISTAN MAll tANZANIA u~PEflOtTil

~ -~

tfALAN1 NEPAL NIGet

$100-199

UNITED AS

R9II1JIIC YIETNAM

NORTH VIETtiAM

IEPU911COF

CAMBQI)IA CHINA

MAINLANO

BOLIVIA CAMEROON GIJINEA (ORA

REPfBtlC OF MAIIRUANIA PAKISTAN SUIAti TIAlIANO YEMEN

CENTRAL AFRICAN REPIlBlIC

KENVil MAUGASY

RtII~LlC NERIA TOGO

CEYLON SIERRA LEDflE

GROSS NATIONAL PRODUCT PER CAPITA

$200-299 $300-499 $500-999 $1000-1999 i $2000-2999 OVER$3000

cmNA SAUDI ARABIA ISRAEl REItf811COF

IRAQ IJORDAN

KOREA NORTH

___ f -------- shy--~------

UlAN IALBANIA CUBA POLAND UNITED SYRIMtARAB PORTUGAL USSR STATES

REPUBLIC UNITED KINGDOM

ALGERIA BRAZIL CHILE BULGARIA AUSTRALIA CANADA CONGO LEBAtiON GREECE CZECHOmiddot BElGIUM KUWAIT

BRAZllVILLE MALAYSIA SOUlli AFRICA SLOVAKIA DENMARK SWEDEN MM1NICtN MONGOLIA REPUBLIC OF GERMANY EAST FRANCE

I BUe fRU SfAIN HUNGARY GERMANY GHANA TURKEY VENEZUElA ITALY WEST MOROCCO YUGOSLAVIA NETHERLANDS NORWAY

ROMANIA SWITZERLAND

___ shy _-shy --------COLOMelA QABON ARGENTINA AUSTRIA LUXEMBOURG ECUADOR IVORY COAST CYIRUS FINLAND ElSALVA[)OR IllCARIGUA URUGUAY LIBYA GUATEMALA ZAMBIA NEW ZEALAND HONDURAS lIIiiRIA PARAGUAY PHilI PPI NES RHODpoundSIA

$OUTHERN SENEGAL nJfUSIA

-~------ shyCOSTA RICA Msueo IRELAND ICELANO GUYANA PANAMA JAPAN JAMAICA TRINIDAD amp

I TOBAGO

I

C_~1____l1li11II1II_________111l1li_______IIII_I_UIIIIJ_IIIIIJIIIIbull __IIIII11IIIIIIII1IIIIIIII1III11III1I1I11i11111lflllll1illliililil_-__

8

TABLE I-SUMMARY TRENDS IN MILITARY EXPENDITURES AND GNP 1964-70

Military Expenditures Gross National Product

1964 1965 1966 1967 1968 1969 1970 1964 1965 1966 1967 1968 1969 1970 est est est est

TOTAL

(Billions of Current Dollars)

WORLD 140 144 161 180 191 199 204 1936 2106 2301 2464 2685 2936 3188 Developed 125 127 143 160 169 175 177 1603 1734 1907 2048 2235 2421 2625 Developing _ 15 17 18 20 22 24 27 333 372 394 416 450 515 563

NATO __ _ 73 74 86 100 105 106 103 1073 1165 1268 1352 1462 1587 l681 Warsaw Pact 49 51 54 57 61 66 71 397 428 466 506 553 593 655 Other _ 18 19 21 23 25 27 30 466 513 567 606 670 756 852

811110ns of Constantl968 Dollars) (

WORLDbullbullbull _bullbullbullbullbullbullbull 158 159 172 188 191 192 186 22112 2325 2452 25711 2685 2830 2940 Developedbullbullbullbullbullbullbullbullbull _bullbull 141 141 154 168 169 169 162 1838 1936 2047 2148 2235 2346 2431 Devl1lopingbull __ ____ ______ bull____ 17 18 18 20 22 23 24 364 389 405 422 4511 484 509

NATObullbullbullbullbull __ bullbullbullbullbullbullbullbull __ 83 82 92 105 105 102 94 1231 1301 1360 1418 1462 1539 1558 Warsaw PacL__ ________ bull__ 55 56 58 59 61 63 64 446 472 501 526 553 566 594 Other__ ____ bull ________ bull __ bull __ 20 21 22 24 25 27 28 525 552 591 626 670 725 788

PER CAPITA

(Current Dollars)

WORLD __ 43 44 48 52 54 56 56 599 637 682 716 765 820 873 Developed _ ___ 134 135 151 167 174 179 180 1725 1 845 2009 2126 2310 2479 2666 Deyeloping __ 7 7 9 10 145 157 163 168 177 198 211

NATO _ 145 146 168 193 201 201 192 2139 2295 2469 2607 2792 3003 3151 Warsaw Pact 151 153 162 169 180 192 205 1213 1292 1398 1501 1626 1730 1897 Other __ ____ 7 8 9 9 10 11 194 208 224 235 253 279 307

(Comltanll968 Dollars)

WORlD____ __ bull _bull _____ bullbull ______ 49 48 51 55 54 54 51 682 703 727 747 765 790 805 Oeveloped ______ bullbull __ __ __ _____ bullbull 152 150 162 175 174 173 164 1978 2060 2157 2230 2310 2402 2469 Developlnllbull __ _____ __ bull ______ 7 8 8 8 9 9 9 158 165 167 170 177 186 191

NATO bullbull _ __ __ bull____________ _ bull ___ bull __ 165 162 180 202 201 194 177 2455 2563 2648 2734 2792 2911 2921 Warsaw PacL ________ ___________ 170 169 174 176 180 183 186 1362 1425 1502 1562 1626 1 652 1718 other _ ______ _____ __ 8 8 9 9 9 10 10 219 224 234 242 253 268 284

9

----

___

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968 [I n current dollars)

Relative burden Other public expend itures Armed forces

GrossMilitary ForcesforeignPopu- Militarynationalexpend-

MilitaryArmedeconomic aidPublic Publicexpend- GNPproductitures lation expend-health 14 forcesper educashyitures as

(per iturestion 23percent capita thou- per manReceived Givenof GNP sand

(thoushy popushy(million (million(million(million(dolshy(million(million (dollars)lation)sands)dollars) dollars)dollars)lars) dollars)dollars) (millions) ()dollars)

SUMMARY

WORLD TOT AL ---- Developed DEvEloping ----- shy

NORTH AMERICAmiddot - - - ---~ - shy

EUROPL Developed Developing

LATIN AMERiCAmiddotmiddot shy ~ --~

FAR EASL Developed - -_ - ~ ~

Developing_

SOUTH ASiA --

NEAR EAST _ - - ~ ~ ~

AFRICA - - - - _ shyDeveloped - - shy

~ ~ shy

_ -~ Developing

OCEANIA

WORLD TOTAL __ ____

NORTH AMERICA_ __ United Statesmiddot __ Canadamiddotbull _ __

EUROPL

NATO European Belgium __ __ Denmark France Germany WesP _____

Greece Icelandmiddot _ Italy __ Luxembourg Netherlands __

See footnotes at end 01 table

65521 60769 4752

23788

37051 35552 1499

1364

889 313 576

403

412

693 195 498

921

86387382

~ 8541 7382 97

shy 4282

576 3353 ~ 3306

47

1410

576

~

1551 846 796-50

1721

350

1324

1551

~

I 324

shy 157

23819 7 10973 II 12846 5

3602 16

8612 12 6986 II 1626 14

1153 4

7161 6 250 2

6911 6

1752 3

993 11 i

449 2 38 2

411 2

i 97 7 I

I

800 15381 170

2287o

1008 12002 1872

1938

1618 4584 I 573

1230

2921

2457 9368 1818

10866

190733 168779 21954

82379

86888 83844 3044

2235

12018 1146

10872

2155

2901

1103 356 747

1054

190733

82379 80596 I 783

86888

22668 602 345

6118 5278

367

2245

90 I

2685006 2234940

450066

931800

1185000 1115700

69300

113551

281335 141 920 139415

62090

29594

50130 14020 36 110

31500

2685006

931800 865700 66 100

1185000

529900 20700 12400

126600 132700

7600 500

74800 800

25 200

35091 9675

25416

221 9

7256 6106 1150

2617

12338 10LO

11327

6892

91 5

2708 192

2516

148

I

35091

221 9 201 2 208

7256

I 3016 I

96 50

499 602

I

88

21 528

3 127 1

71 72 49

118

73 75 44

20

43 8

78

35

98

22 25 21

33

765 2310

177

4199

1633 1827

603

434

228 1404

123

90

324

185 731 144

2131 i

BY COUNTRY

611

118 93 27

73

43 29 28 48 40

48

30 10 36

7651

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 I 418 2381 I 978

130172 117313 12859

50815

60318 58745 1573

2567

11138 6000 5138

1324

1085

1622 450

1172

1303

130172

50815 46400 4415

60318

17883 893 600

3354 3863

157 12

2730 29

1214

65521 7 382 1

J23788 4282 I

21 382 4 048 1 2406 234

8008

22870 23027 17480

100898612 12

7491 99

103026 10 6081

46 7500 505

9 12 115

486 10

108608

18 2280161

510244~ t 8000

129 i 10 3

7023

37051

15327 530 670 292

6874

middot90 5

696 -20 973

3353576

2829

-I 93 313

29 980 755 i

72

257

~I 139

10

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued I n current dollars]

Relative burden i Other public expenditures 1

Armed lorces

I---I--~-~I----Imiddot ----------shyMilitary Gross Popushy Military Foreign Forces i

Ituresexpendmiddot national

product lation expend GNP Public Public economic aid Armed Military itures as per educa- health 24 bull lorces Iexpend-percent capita tlon 3 1 (per itures 01 GNP Received Given thoumiddot per man

sand) (million (million (dolshy (million (million (million (million (thou- popumiddotdollars) dollars) (millions) () lars) dollars) dollars) dollars) dollars) I sands) lalion) I (dollars)

BY COUNTRY~Continued

NATO-Continued Norway Portugal _ Turkey United Kindgom

322 359 573

5545

9 000 5000

11600 103000

38 95

335 553

36 72 49 54

2357 528 346

1863

403 57

321 4450

180 79

139 4779

241

24 47

505

35 183 514 427

9 19 15 8

9200 1 962 1115

12986

NATO Total 105047 1461700 5235 72 2792 68698 39117 313 7 III 6628 13 15849

Warsaw PacL Bulgaria __ Czechoslovakia _ Germany East __ ___ Hungary _____ __

61 100 300

1 360 1 450

340

553200 9100

28400 30800 13800

3402 84

144 171 103

(7-9) 33 48 47 25

1626 1083 1972 1801 1340

38604 367

1093 I 031

580

18281 272 982 792 339

400

100

4783 173 265 196 l37

14 21 18 II 13

12774 1734 5132 7398 2482

Poland__ ____ __ __ _ Romania __ Soviet Union

1950 700

55000

37400 20700

413000

323 197

2380

521158 34 1051

(8-10) 1735

1643 890

33000

1396 600

13900 300

319 223

3470

10 II 15

6113 3139

15850

Other European Albania ___ Austria _ Finland _ _ __ _ Ireland _

3120 76

150 156

27

101900 800

11400 8 000 3 000

838 20 74 47 29

31 1095

13 2 a 9

I 216 400

1551 1706 1 031

3831 70

402 585 110

3443 30 567 344

ll4

263 124

31

803 51

50 39

10

10 26 7 8 3

3885 1490 3 000 4000 2700

Spain _ Sweden_ _ Switzerland _ Yugoslavia _

913 977 365 456

25200 26300 17200 10000

3261 79 61

202

36 37 21 46

773 3322 2798

496

290 1486

577 3ll

403 1 070

429 486

181

82

72 21

305 78 31

239

91 10 5

12

2993 u 12526 11 11774

1908

LATIN AMERICA __ Argentina _ Bolivia _ BraziL_ Chile _ Colombia _

2235 380 17

651 127 98

113557 171l1

786 27353 5670 5638

261 7 236 44

802 92

198

20 22 22 24 22 17

434 725 177 310 614 284

2567 I 346

25 169 205 111

1364 26 3

81 155

96

1410 15 52

319 220 170

1153 8144

18 225 63 55

4 6 4 3 7

1938 2639

944 2893 2016 1782

Cost Ricbull _ _ Cuba bullbull ___ __ _ Dominican Republic_ _ Ecuadoc ___ EI Salvador

300 30 26 10

734 bull 5 000

1169 1475

930

16 76 4 a 57 32

106 a 26 18 11

449 658 295 259 290

33 281

26 35 24

20 60 -14

6 14

15 1

54 28 10

394 18 17 6

52 5 3 2

761 1667 1529 1667

Guatemala _ __ Guyana _ _ HaitL __ Honduras _ Jamaica _

16 2

1500 215 326 621 951

5 a 7

50 25 L9

11 9

21 14 5

299 303

65 245 497

27 8 3

17 22

34 8 4 7

17

24 16 6

15 28

9 1 5

2 1 1 2 1

1778 2000 1 400 1800 2500

Mexico_ Nicaragua __ _ Panama _ __ Paraguay _ Peru ____

184 10 1

10 132

26310 697 826 511

4287

473 19 14 22

128

7 14 1

20 31

557 374 602 229 336

504 16 33 9

151

316 5

16 3

51

210 19 19 23 57

70 i6

13 50

6

2629 1667

769 2640

Trinidad amp Tobago __ Uruguay_ bull Venezuela

3 23

194

748 1589 9110

10 28 97

4 14 21

726 564 941

19 13

396

10 21 78

1 13

38

3 000 1 769 5105

See footnotes at end of table

11

TABLE It-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued (I n current dollars) 1

Military expendshy

itures

Gross national product

Popushylation

Relative burden Other public expenditures

I

I Public

ForeignMilitary GNP Public economic aid S expendshy per I educashyitures as I capita 1 tion Zbull1 I health

Armed forces

I 1Forces Armed 1 Military forces 1 flfer expend-

percent I Received Given 1 taumiddot itures of GNP 1 sand I per man

(million (million I

(dol- (million (million (million (million I (thou- popushy1dollars) dollars) I(millions) () lars)

dollars) dollars) 1 dollars) dollars) I sands) lation) (dollars)

I I

__------_--

FAR EAST Burma Cambodia China Mainland China Republic 01 Indonesia

Japan+ Korea North Korea Republic oL Laos Malaysia

Mongolia Philippines Thailand Vietnam North Vietnam Republic of

SOUTH ASiA Afghanista n Ceylon India NepaL Pakistan

NEAR EAST Cyprus Iran Iraq I srae __ Jordan I

Kuwait I lebanon Saudi Arabia Syrian Arab Republic -

Yemen

United Arab Republic

AFRICA 0shy

Algeria Cameroon Cenlral African Republic Chad Congo (Brazzaville)

Congo (Kinshasa) Dahomey __ I Ethiopia Gabon Ghana _

Guinea __ Ivory Coast Kenya liberia libya

See footnotes at end of table

middot20 116 157

550 613

2155 16 13

1603 5

518

2901 I 6

530

280 I 672 105

63 45 I

383 i 137 I 14 I 666 I

1103 1

100 I 19 I 3

8 1

6 I

44 I 4

41 I 3

44 i

14 I 17 I 15 I 3 I

37 I

575 I 7276 1 5512

2300 3050

62090 1370 1781

43 000 800

15139

29594 1 438

8 020 I 2400 i 4042

575 i

2220 i

1 424 2200 I 1425

550

5740

50130 3365

800 200 270 174

1330 182

1534 200

1 994

669 1242 1330

254 2965

BY COUNTRY--Continued

12338 264 66

806 a 141

1137

43 57 66

F 8 3 101 29

4 000 99

100

101 1 134 305

28 103

8 10180

41 168 32

1 404 I 261 188 I 721

326 I

6000 100 110

7 140

12 359 351 193 174

1[gt 35 16 28

10 239 20 I

479 I 203 157 i 119

175 I

198 168 91

32

6892 161 120

5271 107

1234

35 12 7

37 6

34

90 1 85 I

149

82 I 75

123 I

1324 6

66 1 130

4 118

91 5 6

27 I 86 27 2 I

98 14 66

117 166 183

324 704 296 278

1472 I 274

1085 9

182 133 225

19

5 27 46 57 5 a

28 32

174 96

) 2 5

4111 519 478 250 110

87 34

107 54 3

31 7 I 6 181 232

2708 129 56 15 35 9

22 3 a 24

10 1 5 10 3 a to 34

185 260 43 134 78

200

1622 155 23 7 8

111

17 a 26

242 5

84

33 lfr 2 2

27 15 22

78

711 63 I

417

238 1

69 I 7

15 10 67

38 4 a

102 11 18

21 4 11 12 12

174 312 130 225

1644

37 60 22 7

74

313 I 11 I II 2

123

2

23 29

18 24

403 9 46

283 5

60

412 I 4 1

135 I 28 57

44 8

33 7

8

80

693 59 11 3

bull 4 6

28 I 5 1

1~ I 16

17 10 3

37

11

95 333

314 60 50

139 79

448

1721 30 48

1107 2

534

350 I

132 14 70 48

14 13

-15 11 1

61

1324 117

45 18 22 42

67 18 50 11 87

9 49 61 23 6

50

796

i I I i

s 33 47

167 447 735

1752 70 10

11133 1

15 1

bull 524 1

I 99i I

bull 225 I 992 1

771 55 I

I 7

12 956 69

8

bull 391

449 58 5

1 1 2 I

I 31 2 I

45 i 1 1

15 i

4 3-I 4

I 8 I

2 I 31 20 I 34 6

28

5 23

42

3 4 i 2 i I I 4 I

I 11 2 i 8

II 28 26 I

13 4

12 1

12 1

2 I

12 I 2 I 4 I 1 I 1

4 1 4 I

1678 775 774

2419 805 696

4584 1 534

379 358

1 895

606 2468

940 1 230

834

1230 229

1300 1415

333 989

2921 6000 2356 3043 8727 1 909

9 000 3750 6839 1986 1750

1703

2457 1724 3800 3 000 8 000 3 000

1419 2 000

911 3000 2933

2800 4250 5 000

750 4625

12

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968-Continued [In current dollarsjt

I Relative burden I Other public expenditures I Armed forcesI

IMilitary ForeignGross expend- national Popu- Military GNP Public economic aid S Forces MilitaryIArmeditures product lation expend- per educa- Public expendshy

tion 23 (perhealth 2 ituresitures as capita forces thoupercent per manReceived Given

of GNP sand (million (million (million (million (million (thoushy(dolshy (million popushydollars) dollars) (millions) lars) dollars) dollars) dollars) dollars) sands) lation)

I(dollars)()

I

BY COUNTRY -Continued

AFRICA-Continued Malagasy Republic MalawL __ MaIL __ Mauritania Morocco_

Niger Nigeria____ Rhodesia Southern__ __ _ Senegal ____ Sierra leone __ __

Somali Republic __ __ __ South Africa Republic of Sudan __ __ Tanzania Togo ____

Tunisia Ugandabull Upper Volta~ __ Zambia ______

OCEANIA ____ Australia __ ___ New Zealand

13 780 I 247 5 264 8 172

76 2981

342 91 3

6000 21 1138 15 827

340

8 170 356 14020

74 1560 13 943 I 121

183 213 I 14 471048 16 994 81 -5 5 I257 20 1325 41

1054 31500 148 26600 120

9~ I 4900 I 28 I

70 43 48 11

146

38 535 49 38 25

27 192 148

Oeveloped country or region (Country without asterisk is developing) All countries in region are developing Rough ACDA estimate

None or negligible I For most countries conversion into US dollars Is at official par value exchange

rates as rounded by AID For all Communist and several developing countries esllmated purchaSing power panties are used (See Conversion Rates page 35)

Due to dilferences in concepls coverage and reliability data on public education and health expenditures do not permit accurate comparisons between countries or in some cases between years for the same country

3 Public expendHures on education in 1968 are ACDA estimates based primarily on dala for 1967 or earlier (See Educalion page 34)

Informallon on educational expenditures which are made outside of governmentbudgets is not available on a worldwide baSis The rellive importance of these expenditures vanes sharply from co~nlry to country In the United States private expe~dltures In 1968 were $118 billion or 20 of the total Private expendilures conslltut~d the follOWing percentages of total national expenditures In 1967 (or Ih indicated year) according to UNESCO estimates

EI Salvador ______ Sudan

Percent Percent Argenlina (1966) __ __ Australia ____ __ Canada ____ __ Chile (1966) bull China Republic of ~_ poundcuador bull __ __ __ __

51 38 23 28 29 34

Israel (I966)~ __ Japan _____ Jordan __Kenya __ _ Malawi _ __ Philippines_

26 20 14 70 15 24

23 __ ___ __ 27 Bhiopia (1966) 47 Venezuela __ __ _______ __ 27Greece ________ __ 39 Vietnam Republic of (1965) __ 58Guatemala _______ __ __ 25 Zambia (1966) __ __ 73India __ 44

In Communist countrie~ extramiddotbudgetary expenditures are also significan For example according 10 offiCial data education expenditures by state cooperative and trade union enterprises and collective farms in the Soviet Union make up about 13 percent of the total parental payments to childrens institutions and schools mayconstitute another 6 percent

17 III 49 15 44 4 58 II 4 26

19 55 10 4 20 47 154 4 8 25 204 106 40 124

9

I

90 I 5 29 15 112 132 [ 83 108 18 230 42 I 13 -3 18 220 29 14 48 9 137 9 3 111

47 62 3 I 26 I

25 731 450 195 47 106 69 22 I 29 14 78 30 13 34 14 120 4 2 13

13 16

224 122

i 57 I

15

I 15

14 I 88 20

lO 1 9 50 i 6 I 23 15 326

1

I 20 I e 18 51

I

33 2131 1 1303 I 921 157 36 18

2211 1 781

i

i 1132

171 697 224 i

157

I 4 I I

4 I

62

I 70 I 5 5 i

2

8 38 24 4 1

2 I 2 I 3 i

I I

97 84 shy13 I

4

3250 1000 1250 8000 1226

3000 1300 4200 3000 1500

1000 9368 3083 3250 3000

609 2667 2500 6667

10866 11524 6615

Public expenditures on health in 1968 are based in part on data for earlier years(See Health page 35)

As 10 educational expenditures Ihe portion of tolal health expenditures which is exlramiddotbudgetary varies greatly from country to country Scattered information suggests that on average Ihe private portion of health expenditures may be higherthan the private portion of education expenditures In the United States in 1968 private health expenditures amounted to $352 billion or 62 percent of total health expenditures

In Communist countries extramiddotbudgetary health expenditures are made by state cooperative and trade unum enterprises anj collective farms as well as households In the Soviet Union for example they constitute about 20 percent of total health expenditures according to official sources

Economic aid given by Communist countries to nonmiddotCommunist counlries is included in the world total of aid received It is not distributed by individual recipientcounlries or regions however as accurate data on such distribution are no available (See Foreign Economic Aid page 34_)

Military expenditures and GNP are not fully comparable due to the use of different dollar conversion rates lor the two variables in the Soviet Union (see footnote 9)Using the more valid ralios shown in parentheses for the Soviet Union and Ihe Warsaw Pact total the ratio for the world is eslimated to be 6-7 percent and for Europe 5-6 percent

1 Ineludes West Berlin Includes paramililary as well as regular forces The implied relationship between dollar amounts of Soviet GNP and military

expenditures (or GNP and public expenditures on educalion and health) is not valid due 10 the use of di~erent types of conversion rates lor GNP and particular sectors It is estimated Ihat the actual ratio of military expenditures to GNP would fall somemiddot where within the range indicated in parentheses the lower part of the range reflecting a comparison of military expenditures and GNP in faclormiddoteost ruble values and the upper estimate representing dollar values converted on a comparable basis (See Conversion Rates page 35)

10 Since either or both military expenditures and GNP estimates are approximations the resulting ratio should be viewed with particular caution

II For Sweden SWitzerland and Israel the high rate of military expendilures per man rellects small standing forces with a capability for extremely rapid mobilization of large reserve forces

13

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 10: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

418-790 0

DEFINITIONS OF TERMS

Gross National Product (GNP) represents an economys total output of goods and services valued at current market prices paid by the ultimate COIlsumer

JiilitarJ Expenditures are current and capital expenditures to meet the needs of the armed forces including expenditures of national defense agencies for military programs expenditures for the military components of such mLxed activities as atomic energy space ami research and development military assistance to foreign countries and expenditures on paramilitary forces where they contribute subshystantially to a countrys military capabilities

Foreign Economic Aid Reeeited by developing countries comprises official bilateral grants and loans (gross of repayments) disbursed by Development Assistance CommIttee (DAC) countries and net aid received from multilateral agencies (Aid received from Communist countnes is shmvn in the world total but is not included in country or regional totals) Aid given by DAC countries includes official bilateral aid and net contributions to multilateral agencies Aid given by Communist countries represents deliveries to non-Comshymunist developing countries only Aid from private sources and milishytary assistance are not included

Public Education Expenditures include current and capital expendishytures for preschool primary secondary and university-level educashytion Wherever possible expenditures by all levels of government are covered Private spending is not included

PIblie Health Etpenditlfs represent current expenditures (and whershyever possible capital expenditures) by all levels of government for the provision of medical services Private spending is not included

Armed Forces refer to military personnel actually on duty including paramilitary forces where these forces contribute substantially to 11

countrys military capabilities Reserve forces are not included

DeulopinJ OOlntrie~ 93 in number are the countries listed under Latin America the Far East except Japan South Asia and the Near East and Africa except the Republic of South Africa and also include in Europe Albania Bulgaria Greece Portugal Spain Turkey and Yugoslavia

Dueloped COllntric) 27 in number are the countries listld under North America Oceania European NATO except Greece Portugal and Turkey the Varsaw Pact except Bulgaria and include Austria Ireland Finland Sweden Switzerland Japan and South Africa

For further discussion of terms as used in this report ee Statistical Notes page 32

- 71 - 2 7

STATlSTICAL TABLES

Table I presents a summary of recent trends in two key indicators military expenditures and GNP by major groups of countries In order to provide as current a picture as present statistical resources permit estimates for 1969 and 1970 are included However since national data for the latter years are preliminary and incomplete these estimates are subject to revision The data in constant 1968 dollars are approximate estimates based on the use of average price and exchange rate adjustment factors for groups of countries and do not reflect adjustments by individual country

Table II is the basic table showing a variety of data on each of 120 individual countries in 1968

the latest year for which data are available on a worldwide basis Table III shovs some of these same data expressed on a per capita basis Hisshytorical trends by country and year 1964-68 are presented in table IV (military expenditures and GNP) and table V (armed forces)

Table VI ranks the first 30 countries of the world in terms of six main factors of military and economic strength

Chart VII RELATIVE BURDEN OF MILITARY EXPENDITURES 1968

ll Z G LI o tf CIl laquo CIl lLJ 0 gt l-e z lLJ ll X lLJ

gtshy0 laquo IshyJ E

OVER 10

5-10

~------

2-5

---~~-

1-2

UNDER 1

UNDER $100middot

1~0$

BURMA

CHAO CONGO

KlNSUA5A DAHOMEY ETHiOP(A HIIII INDIA INOllNJSIAsbt1Ju

REPUBliC UGANOA

AfGflANISTAN MAll tANZANIA u~PEflOtTil

~ -~

tfALAN1 NEPAL NIGet

$100-199

UNITED AS

R9II1JIIC YIETNAM

NORTH VIETtiAM

IEPU911COF

CAMBQI)IA CHINA

MAINLANO

BOLIVIA CAMEROON GIJINEA (ORA

REPfBtlC OF MAIIRUANIA PAKISTAN SUIAti TIAlIANO YEMEN

CENTRAL AFRICAN REPIlBlIC

KENVil MAUGASY

RtII~LlC NERIA TOGO

CEYLON SIERRA LEDflE

GROSS NATIONAL PRODUCT PER CAPITA

$200-299 $300-499 $500-999 $1000-1999 i $2000-2999 OVER$3000

cmNA SAUDI ARABIA ISRAEl REItf811COF

IRAQ IJORDAN

KOREA NORTH

___ f -------- shy--~------

UlAN IALBANIA CUBA POLAND UNITED SYRIMtARAB PORTUGAL USSR STATES

REPUBLIC UNITED KINGDOM

ALGERIA BRAZIL CHILE BULGARIA AUSTRALIA CANADA CONGO LEBAtiON GREECE CZECHOmiddot BElGIUM KUWAIT

BRAZllVILLE MALAYSIA SOUlli AFRICA SLOVAKIA DENMARK SWEDEN MM1NICtN MONGOLIA REPUBLIC OF GERMANY EAST FRANCE

I BUe fRU SfAIN HUNGARY GERMANY GHANA TURKEY VENEZUElA ITALY WEST MOROCCO YUGOSLAVIA NETHERLANDS NORWAY

ROMANIA SWITZERLAND

___ shy _-shy --------COLOMelA QABON ARGENTINA AUSTRIA LUXEMBOURG ECUADOR IVORY COAST CYIRUS FINLAND ElSALVA[)OR IllCARIGUA URUGUAY LIBYA GUATEMALA ZAMBIA NEW ZEALAND HONDURAS lIIiiRIA PARAGUAY PHilI PPI NES RHODpoundSIA

$OUTHERN SENEGAL nJfUSIA

-~------ shyCOSTA RICA Msueo IRELAND ICELANO GUYANA PANAMA JAPAN JAMAICA TRINIDAD amp

I TOBAGO

I

C_~1____l1li11II1II_________111l1li_______IIII_I_UIIIIJ_IIIIIJIIIIbull __IIIII11IIIIIIII1IIIIIIII1III11III1I1I11i11111lflllll1illliililil_-__

8

TABLE I-SUMMARY TRENDS IN MILITARY EXPENDITURES AND GNP 1964-70

Military Expenditures Gross National Product

1964 1965 1966 1967 1968 1969 1970 1964 1965 1966 1967 1968 1969 1970 est est est est

TOTAL

(Billions of Current Dollars)

WORLD 140 144 161 180 191 199 204 1936 2106 2301 2464 2685 2936 3188 Developed 125 127 143 160 169 175 177 1603 1734 1907 2048 2235 2421 2625 Developing _ 15 17 18 20 22 24 27 333 372 394 416 450 515 563

NATO __ _ 73 74 86 100 105 106 103 1073 1165 1268 1352 1462 1587 l681 Warsaw Pact 49 51 54 57 61 66 71 397 428 466 506 553 593 655 Other _ 18 19 21 23 25 27 30 466 513 567 606 670 756 852

811110ns of Constantl968 Dollars) (

WORLDbullbullbull _bullbullbullbullbullbullbull 158 159 172 188 191 192 186 22112 2325 2452 25711 2685 2830 2940 Developedbullbullbullbullbullbullbullbullbull _bullbull 141 141 154 168 169 169 162 1838 1936 2047 2148 2235 2346 2431 Devl1lopingbull __ ____ ______ bull____ 17 18 18 20 22 23 24 364 389 405 422 4511 484 509

NATObullbullbullbullbull __ bullbullbullbullbullbullbullbull __ 83 82 92 105 105 102 94 1231 1301 1360 1418 1462 1539 1558 Warsaw PacL__ ________ bull__ 55 56 58 59 61 63 64 446 472 501 526 553 566 594 Other__ ____ bull ________ bull __ bull __ 20 21 22 24 25 27 28 525 552 591 626 670 725 788

PER CAPITA

(Current Dollars)

WORLD __ 43 44 48 52 54 56 56 599 637 682 716 765 820 873 Developed _ ___ 134 135 151 167 174 179 180 1725 1 845 2009 2126 2310 2479 2666 Deyeloping __ 7 7 9 10 145 157 163 168 177 198 211

NATO _ 145 146 168 193 201 201 192 2139 2295 2469 2607 2792 3003 3151 Warsaw Pact 151 153 162 169 180 192 205 1213 1292 1398 1501 1626 1730 1897 Other __ ____ 7 8 9 9 10 11 194 208 224 235 253 279 307

(Comltanll968 Dollars)

WORlD____ __ bull _bull _____ bullbull ______ 49 48 51 55 54 54 51 682 703 727 747 765 790 805 Oeveloped ______ bullbull __ __ __ _____ bullbull 152 150 162 175 174 173 164 1978 2060 2157 2230 2310 2402 2469 Developlnllbull __ _____ __ bull ______ 7 8 8 8 9 9 9 158 165 167 170 177 186 191

NATO bullbull _ __ __ bull____________ _ bull ___ bull __ 165 162 180 202 201 194 177 2455 2563 2648 2734 2792 2911 2921 Warsaw PacL ________ ___________ 170 169 174 176 180 183 186 1362 1425 1502 1562 1626 1 652 1718 other _ ______ _____ __ 8 8 9 9 9 10 10 219 224 234 242 253 268 284

9

----

___

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968 [I n current dollars)

Relative burden Other public expend itures Armed forces

GrossMilitary ForcesforeignPopu- Militarynationalexpend-

MilitaryArmedeconomic aidPublic Publicexpend- GNPproductitures lation expend-health 14 forcesper educashyitures as

(per iturestion 23percent capita thou- per manReceived Givenof GNP sand

(thoushy popushy(million (million(million(million(dolshy(million(million (dollars)lation)sands)dollars) dollars)dollars)lars) dollars)dollars) (millions) ()dollars)

SUMMARY

WORLD TOT AL ---- Developed DEvEloping ----- shy

NORTH AMERICAmiddot - - - ---~ - shy

EUROPL Developed Developing

LATIN AMERiCAmiddotmiddot shy ~ --~

FAR EASL Developed - -_ - ~ ~

Developing_

SOUTH ASiA --

NEAR EAST _ - - ~ ~ ~

AFRICA - - - - _ shyDeveloped - - shy

~ ~ shy

_ -~ Developing

OCEANIA

WORLD TOTAL __ ____

NORTH AMERICA_ __ United Statesmiddot __ Canadamiddotbull _ __

EUROPL

NATO European Belgium __ __ Denmark France Germany WesP _____

Greece Icelandmiddot _ Italy __ Luxembourg Netherlands __

See footnotes at end 01 table

65521 60769 4752

23788

37051 35552 1499

1364

889 313 576

403

412

693 195 498

921

86387382

~ 8541 7382 97

shy 4282

576 3353 ~ 3306

47

1410

576

~

1551 846 796-50

1721

350

1324

1551

~

I 324

shy 157

23819 7 10973 II 12846 5

3602 16

8612 12 6986 II 1626 14

1153 4

7161 6 250 2

6911 6

1752 3

993 11 i

449 2 38 2

411 2

i 97 7 I

I

800 15381 170

2287o

1008 12002 1872

1938

1618 4584 I 573

1230

2921

2457 9368 1818

10866

190733 168779 21954

82379

86888 83844 3044

2235

12018 1146

10872

2155

2901

1103 356 747

1054

190733

82379 80596 I 783

86888

22668 602 345

6118 5278

367

2245

90 I

2685006 2234940

450066

931800

1185000 1115700

69300

113551

281335 141 920 139415

62090

29594

50130 14020 36 110

31500

2685006

931800 865700 66 100

1185000

529900 20700 12400

126600 132700

7600 500

74800 800

25 200

35091 9675

25416

221 9

7256 6106 1150

2617

12338 10LO

11327

6892

91 5

2708 192

2516

148

I

35091

221 9 201 2 208

7256

I 3016 I

96 50

499 602

I

88

21 528

3 127 1

71 72 49

118

73 75 44

20

43 8

78

35

98

22 25 21

33

765 2310

177

4199

1633 1827

603

434

228 1404

123

90

324

185 731 144

2131 i

BY COUNTRY

611

118 93 27

73

43 29 28 48 40

48

30 10 36

7651

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 I 418 2381 I 978

130172 117313 12859

50815

60318 58745 1573

2567

11138 6000 5138

1324

1085

1622 450

1172

1303

130172

50815 46400 4415

60318

17883 893 600

3354 3863

157 12

2730 29

1214

65521 7 382 1

J23788 4282 I

21 382 4 048 1 2406 234

8008

22870 23027 17480

100898612 12

7491 99

103026 10 6081

46 7500 505

9 12 115

486 10

108608

18 2280161

510244~ t 8000

129 i 10 3

7023

37051

15327 530 670 292

6874

middot90 5

696 -20 973

3353576

2829

-I 93 313

29 980 755 i

72

257

~I 139

10

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued I n current dollars]

Relative burden i Other public expenditures 1

Armed lorces

I---I--~-~I----Imiddot ----------shyMilitary Gross Popushy Military Foreign Forces i

Ituresexpendmiddot national

product lation expend GNP Public Public economic aid Armed Military itures as per educa- health 24 bull lorces Iexpend-percent capita tlon 3 1 (per itures 01 GNP Received Given thoumiddot per man

sand) (million (million (dolshy (million (million (million (million (thou- popumiddotdollars) dollars) (millions) () lars) dollars) dollars) dollars) dollars) I sands) lalion) I (dollars)

BY COUNTRY~Continued

NATO-Continued Norway Portugal _ Turkey United Kindgom

322 359 573

5545

9 000 5000

11600 103000

38 95

335 553

36 72 49 54

2357 528 346

1863

403 57

321 4450

180 79

139 4779

241

24 47

505

35 183 514 427

9 19 15 8

9200 1 962 1115

12986

NATO Total 105047 1461700 5235 72 2792 68698 39117 313 7 III 6628 13 15849

Warsaw PacL Bulgaria __ Czechoslovakia _ Germany East __ ___ Hungary _____ __

61 100 300

1 360 1 450

340

553200 9100

28400 30800 13800

3402 84

144 171 103

(7-9) 33 48 47 25

1626 1083 1972 1801 1340

38604 367

1093 I 031

580

18281 272 982 792 339

400

100

4783 173 265 196 l37

14 21 18 II 13

12774 1734 5132 7398 2482

Poland__ ____ __ __ _ Romania __ Soviet Union

1950 700

55000

37400 20700

413000

323 197

2380

521158 34 1051

(8-10) 1735

1643 890

33000

1396 600

13900 300

319 223

3470

10 II 15

6113 3139

15850

Other European Albania ___ Austria _ Finland _ _ __ _ Ireland _

3120 76

150 156

27

101900 800

11400 8 000 3 000

838 20 74 47 29

31 1095

13 2 a 9

I 216 400

1551 1706 1 031

3831 70

402 585 110

3443 30 567 344

ll4

263 124

31

803 51

50 39

10

10 26 7 8 3

3885 1490 3 000 4000 2700

Spain _ Sweden_ _ Switzerland _ Yugoslavia _

913 977 365 456

25200 26300 17200 10000

3261 79 61

202

36 37 21 46

773 3322 2798

496

290 1486

577 3ll

403 1 070

429 486

181

82

72 21

305 78 31

239

91 10 5

12

2993 u 12526 11 11774

1908

LATIN AMERICA __ Argentina _ Bolivia _ BraziL_ Chile _ Colombia _

2235 380 17

651 127 98

113557 171l1

786 27353 5670 5638

261 7 236 44

802 92

198

20 22 22 24 22 17

434 725 177 310 614 284

2567 I 346

25 169 205 111

1364 26 3

81 155

96

1410 15 52

319 220 170

1153 8144

18 225 63 55

4 6 4 3 7

1938 2639

944 2893 2016 1782

Cost Ricbull _ _ Cuba bullbull ___ __ _ Dominican Republic_ _ Ecuadoc ___ EI Salvador

300 30 26 10

734 bull 5 000

1169 1475

930

16 76 4 a 57 32

106 a 26 18 11

449 658 295 259 290

33 281

26 35 24

20 60 -14

6 14

15 1

54 28 10

394 18 17 6

52 5 3 2

761 1667 1529 1667

Guatemala _ __ Guyana _ _ HaitL __ Honduras _ Jamaica _

16 2

1500 215 326 621 951

5 a 7

50 25 L9

11 9

21 14 5

299 303

65 245 497

27 8 3

17 22

34 8 4 7

17

24 16 6

15 28

9 1 5

2 1 1 2 1

1778 2000 1 400 1800 2500

Mexico_ Nicaragua __ _ Panama _ __ Paraguay _ Peru ____

184 10 1

10 132

26310 697 826 511

4287

473 19 14 22

128

7 14 1

20 31

557 374 602 229 336

504 16 33 9

151

316 5

16 3

51

210 19 19 23 57

70 i6

13 50

6

2629 1667

769 2640

Trinidad amp Tobago __ Uruguay_ bull Venezuela

3 23

194

748 1589 9110

10 28 97

4 14 21

726 564 941

19 13

396

10 21 78

1 13

38

3 000 1 769 5105

See footnotes at end of table

11

TABLE It-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued (I n current dollars) 1

Military expendshy

itures

Gross national product

Popushylation

Relative burden Other public expenditures

I

I Public

ForeignMilitary GNP Public economic aid S expendshy per I educashyitures as I capita 1 tion Zbull1 I health

Armed forces

I 1Forces Armed 1 Military forces 1 flfer expend-

percent I Received Given 1 taumiddot itures of GNP 1 sand I per man

(million (million I

(dol- (million (million (million (million I (thou- popushy1dollars) dollars) I(millions) () lars)

dollars) dollars) 1 dollars) dollars) I sands) lation) (dollars)

I I

__------_--

FAR EAST Burma Cambodia China Mainland China Republic 01 Indonesia

Japan+ Korea North Korea Republic oL Laos Malaysia

Mongolia Philippines Thailand Vietnam North Vietnam Republic of

SOUTH ASiA Afghanista n Ceylon India NepaL Pakistan

NEAR EAST Cyprus Iran Iraq I srae __ Jordan I

Kuwait I lebanon Saudi Arabia Syrian Arab Republic -

Yemen

United Arab Republic

AFRICA 0shy

Algeria Cameroon Cenlral African Republic Chad Congo (Brazzaville)

Congo (Kinshasa) Dahomey __ I Ethiopia Gabon Ghana _

Guinea __ Ivory Coast Kenya liberia libya

See footnotes at end of table

middot20 116 157

550 613

2155 16 13

1603 5

518

2901 I 6

530

280 I 672 105

63 45 I

383 i 137 I 14 I 666 I

1103 1

100 I 19 I 3

8 1

6 I

44 I 4

41 I 3

44 i

14 I 17 I 15 I 3 I

37 I

575 I 7276 1 5512

2300 3050

62090 1370 1781

43 000 800

15139

29594 1 438

8 020 I 2400 i 4042

575 i

2220 i

1 424 2200 I 1425

550

5740

50130 3365

800 200 270 174

1330 182

1534 200

1 994

669 1242 1330

254 2965

BY COUNTRY--Continued

12338 264 66

806 a 141

1137

43 57 66

F 8 3 101 29

4 000 99

100

101 1 134 305

28 103

8 10180

41 168 32

1 404 I 261 188 I 721

326 I

6000 100 110

7 140

12 359 351 193 174

1[gt 35 16 28

10 239 20 I

479 I 203 157 i 119

175 I

198 168 91

32

6892 161 120

5271 107

1234

35 12 7

37 6

34

90 1 85 I

149

82 I 75

123 I

1324 6

66 1 130

4 118

91 5 6

27 I 86 27 2 I

98 14 66

117 166 183

324 704 296 278

1472 I 274

1085 9

182 133 225

19

5 27 46 57 5 a

28 32

174 96

) 2 5

4111 519 478 250 110

87 34

107 54 3

31 7 I 6 181 232

2708 129 56 15 35 9

22 3 a 24

10 1 5 10 3 a to 34

185 260 43 134 78

200

1622 155 23 7 8

111

17 a 26

242 5

84

33 lfr 2 2

27 15 22

78

711 63 I

417

238 1

69 I 7

15 10 67

38 4 a

102 11 18

21 4 11 12 12

174 312 130 225

1644

37 60 22 7

74

313 I 11 I II 2

123

2

23 29

18 24

403 9 46

283 5

60

412 I 4 1

135 I 28 57

44 8

33 7

8

80

693 59 11 3

bull 4 6

28 I 5 1

1~ I 16

17 10 3

37

11

95 333

314 60 50

139 79

448

1721 30 48

1107 2

534

350 I

132 14 70 48

14 13

-15 11 1

61

1324 117

45 18 22 42

67 18 50 11 87

9 49 61 23 6

50

796

i I I i

s 33 47

167 447 735

1752 70 10

11133 1

15 1

bull 524 1

I 99i I

bull 225 I 992 1

771 55 I

I 7

12 956 69

8

bull 391

449 58 5

1 1 2 I

I 31 2 I

45 i 1 1

15 i

4 3-I 4

I 8 I

2 I 31 20 I 34 6

28

5 23

42

3 4 i 2 i I I 4 I

I 11 2 i 8

II 28 26 I

13 4

12 1

12 1

2 I

12 I 2 I 4 I 1 I 1

4 1 4 I

1678 775 774

2419 805 696

4584 1 534

379 358

1 895

606 2468

940 1 230

834

1230 229

1300 1415

333 989

2921 6000 2356 3043 8727 1 909

9 000 3750 6839 1986 1750

1703

2457 1724 3800 3 000 8 000 3 000

1419 2 000

911 3000 2933

2800 4250 5 000

750 4625

12

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968-Continued [In current dollarsjt

I Relative burden I Other public expenditures I Armed forcesI

IMilitary ForeignGross expend- national Popu- Military GNP Public economic aid S Forces MilitaryIArmeditures product lation expend- per educa- Public expendshy

tion 23 (perhealth 2 ituresitures as capita forces thoupercent per manReceived Given

of GNP sand (million (million (million (million (million (thoushy(dolshy (million popushydollars) dollars) (millions) lars) dollars) dollars) dollars) dollars) sands) lation)

I(dollars)()

I

BY COUNTRY -Continued

AFRICA-Continued Malagasy Republic MalawL __ MaIL __ Mauritania Morocco_

Niger Nigeria____ Rhodesia Southern__ __ _ Senegal ____ Sierra leone __ __

Somali Republic __ __ __ South Africa Republic of Sudan __ __ Tanzania Togo ____

Tunisia Ugandabull Upper Volta~ __ Zambia ______

OCEANIA ____ Australia __ ___ New Zealand

13 780 I 247 5 264 8 172

76 2981

342 91 3

6000 21 1138 15 827

340

8 170 356 14020

74 1560 13 943 I 121

183 213 I 14 471048 16 994 81 -5 5 I257 20 1325 41

1054 31500 148 26600 120

9~ I 4900 I 28 I

70 43 48 11

146

38 535 49 38 25

27 192 148

Oeveloped country or region (Country without asterisk is developing) All countries in region are developing Rough ACDA estimate

None or negligible I For most countries conversion into US dollars Is at official par value exchange

rates as rounded by AID For all Communist and several developing countries esllmated purchaSing power panties are used (See Conversion Rates page 35)

Due to dilferences in concepls coverage and reliability data on public education and health expenditures do not permit accurate comparisons between countries or in some cases between years for the same country

3 Public expendHures on education in 1968 are ACDA estimates based primarily on dala for 1967 or earlier (See Educalion page 34)

Informallon on educational expenditures which are made outside of governmentbudgets is not available on a worldwide baSis The rellive importance of these expenditures vanes sharply from co~nlry to country In the United States private expe~dltures In 1968 were $118 billion or 20 of the total Private expendilures conslltut~d the follOWing percentages of total national expenditures In 1967 (or Ih indicated year) according to UNESCO estimates

EI Salvador ______ Sudan

Percent Percent Argenlina (1966) __ __ Australia ____ __ Canada ____ __ Chile (1966) bull China Republic of ~_ poundcuador bull __ __ __ __

51 38 23 28 29 34

Israel (I966)~ __ Japan _____ Jordan __Kenya __ _ Malawi _ __ Philippines_

26 20 14 70 15 24

23 __ ___ __ 27 Bhiopia (1966) 47 Venezuela __ __ _______ __ 27Greece ________ __ 39 Vietnam Republic of (1965) __ 58Guatemala _______ __ __ 25 Zambia (1966) __ __ 73India __ 44

In Communist countrie~ extramiddotbudgetary expenditures are also significan For example according 10 offiCial data education expenditures by state cooperative and trade union enterprises and collective farms in the Soviet Union make up about 13 percent of the total parental payments to childrens institutions and schools mayconstitute another 6 percent

17 III 49 15 44 4 58 II 4 26

19 55 10 4 20 47 154 4 8 25 204 106 40 124

9

I

90 I 5 29 15 112 132 [ 83 108 18 230 42 I 13 -3 18 220 29 14 48 9 137 9 3 111

47 62 3 I 26 I

25 731 450 195 47 106 69 22 I 29 14 78 30 13 34 14 120 4 2 13

13 16

224 122

i 57 I

15

I 15

14 I 88 20

lO 1 9 50 i 6 I 23 15 326

1

I 20 I e 18 51

I

33 2131 1 1303 I 921 157 36 18

2211 1 781

i

i 1132

171 697 224 i

157

I 4 I I

4 I

62

I 70 I 5 5 i

2

8 38 24 4 1

2 I 2 I 3 i

I I

97 84 shy13 I

4

3250 1000 1250 8000 1226

3000 1300 4200 3000 1500

1000 9368 3083 3250 3000

609 2667 2500 6667

10866 11524 6615

Public expenditures on health in 1968 are based in part on data for earlier years(See Health page 35)

As 10 educational expenditures Ihe portion of tolal health expenditures which is exlramiddotbudgetary varies greatly from country to country Scattered information suggests that on average Ihe private portion of health expenditures may be higherthan the private portion of education expenditures In the United States in 1968 private health expenditures amounted to $352 billion or 62 percent of total health expenditures

In Communist countries extramiddotbudgetary health expenditures are made by state cooperative and trade unum enterprises anj collective farms as well as households In the Soviet Union for example they constitute about 20 percent of total health expenditures according to official sources

Economic aid given by Communist countries to nonmiddotCommunist counlries is included in the world total of aid received It is not distributed by individual recipientcounlries or regions however as accurate data on such distribution are no available (See Foreign Economic Aid page 34_)

Military expenditures and GNP are not fully comparable due to the use of different dollar conversion rates lor the two variables in the Soviet Union (see footnote 9)Using the more valid ralios shown in parentheses for the Soviet Union and Ihe Warsaw Pact total the ratio for the world is eslimated to be 6-7 percent and for Europe 5-6 percent

1 Ineludes West Berlin Includes paramililary as well as regular forces The implied relationship between dollar amounts of Soviet GNP and military

expenditures (or GNP and public expenditures on educalion and health) is not valid due 10 the use of di~erent types of conversion rates lor GNP and particular sectors It is estimated Ihat the actual ratio of military expenditures to GNP would fall somemiddot where within the range indicated in parentheses the lower part of the range reflecting a comparison of military expenditures and GNP in faclormiddoteost ruble values and the upper estimate representing dollar values converted on a comparable basis (See Conversion Rates page 35)

10 Since either or both military expenditures and GNP estimates are approximations the resulting ratio should be viewed with particular caution

II For Sweden SWitzerland and Israel the high rate of military expendilures per man rellects small standing forces with a capability for extremely rapid mobilization of large reserve forces

13

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 11: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

STATlSTICAL TABLES

Table I presents a summary of recent trends in two key indicators military expenditures and GNP by major groups of countries In order to provide as current a picture as present statistical resources permit estimates for 1969 and 1970 are included However since national data for the latter years are preliminary and incomplete these estimates are subject to revision The data in constant 1968 dollars are approximate estimates based on the use of average price and exchange rate adjustment factors for groups of countries and do not reflect adjustments by individual country

Table II is the basic table showing a variety of data on each of 120 individual countries in 1968

the latest year for which data are available on a worldwide basis Table III shovs some of these same data expressed on a per capita basis Hisshytorical trends by country and year 1964-68 are presented in table IV (military expenditures and GNP) and table V (armed forces)

Table VI ranks the first 30 countries of the world in terms of six main factors of military and economic strength

Chart VII RELATIVE BURDEN OF MILITARY EXPENDITURES 1968

ll Z G LI o tf CIl laquo CIl lLJ 0 gt l-e z lLJ ll X lLJ

gtshy0 laquo IshyJ E

OVER 10

5-10

~------

2-5

---~~-

1-2

UNDER 1

UNDER $100middot

1~0$

BURMA

CHAO CONGO

KlNSUA5A DAHOMEY ETHiOP(A HIIII INDIA INOllNJSIAsbt1Ju

REPUBliC UGANOA

AfGflANISTAN MAll tANZANIA u~PEflOtTil

~ -~

tfALAN1 NEPAL NIGet

$100-199

UNITED AS

R9II1JIIC YIETNAM

NORTH VIETtiAM

IEPU911COF

CAMBQI)IA CHINA

MAINLANO

BOLIVIA CAMEROON GIJINEA (ORA

REPfBtlC OF MAIIRUANIA PAKISTAN SUIAti TIAlIANO YEMEN

CENTRAL AFRICAN REPIlBlIC

KENVil MAUGASY

RtII~LlC NERIA TOGO

CEYLON SIERRA LEDflE

GROSS NATIONAL PRODUCT PER CAPITA

$200-299 $300-499 $500-999 $1000-1999 i $2000-2999 OVER$3000

cmNA SAUDI ARABIA ISRAEl REItf811COF

IRAQ IJORDAN

KOREA NORTH

___ f -------- shy--~------

UlAN IALBANIA CUBA POLAND UNITED SYRIMtARAB PORTUGAL USSR STATES

REPUBLIC UNITED KINGDOM

ALGERIA BRAZIL CHILE BULGARIA AUSTRALIA CANADA CONGO LEBAtiON GREECE CZECHOmiddot BElGIUM KUWAIT

BRAZllVILLE MALAYSIA SOUlli AFRICA SLOVAKIA DENMARK SWEDEN MM1NICtN MONGOLIA REPUBLIC OF GERMANY EAST FRANCE

I BUe fRU SfAIN HUNGARY GERMANY GHANA TURKEY VENEZUElA ITALY WEST MOROCCO YUGOSLAVIA NETHERLANDS NORWAY

ROMANIA SWITZERLAND

___ shy _-shy --------COLOMelA QABON ARGENTINA AUSTRIA LUXEMBOURG ECUADOR IVORY COAST CYIRUS FINLAND ElSALVA[)OR IllCARIGUA URUGUAY LIBYA GUATEMALA ZAMBIA NEW ZEALAND HONDURAS lIIiiRIA PARAGUAY PHilI PPI NES RHODpoundSIA

$OUTHERN SENEGAL nJfUSIA

-~------ shyCOSTA RICA Msueo IRELAND ICELANO GUYANA PANAMA JAPAN JAMAICA TRINIDAD amp

I TOBAGO

I

C_~1____l1li11II1II_________111l1li_______IIII_I_UIIIIJ_IIIIIJIIIIbull __IIIII11IIIIIIII1IIIIIIII1III11III1I1I11i11111lflllll1illliililil_-__

8

TABLE I-SUMMARY TRENDS IN MILITARY EXPENDITURES AND GNP 1964-70

Military Expenditures Gross National Product

1964 1965 1966 1967 1968 1969 1970 1964 1965 1966 1967 1968 1969 1970 est est est est

TOTAL

(Billions of Current Dollars)

WORLD 140 144 161 180 191 199 204 1936 2106 2301 2464 2685 2936 3188 Developed 125 127 143 160 169 175 177 1603 1734 1907 2048 2235 2421 2625 Developing _ 15 17 18 20 22 24 27 333 372 394 416 450 515 563

NATO __ _ 73 74 86 100 105 106 103 1073 1165 1268 1352 1462 1587 l681 Warsaw Pact 49 51 54 57 61 66 71 397 428 466 506 553 593 655 Other _ 18 19 21 23 25 27 30 466 513 567 606 670 756 852

811110ns of Constantl968 Dollars) (

WORLDbullbullbull _bullbullbullbullbullbullbull 158 159 172 188 191 192 186 22112 2325 2452 25711 2685 2830 2940 Developedbullbullbullbullbullbullbullbullbull _bullbull 141 141 154 168 169 169 162 1838 1936 2047 2148 2235 2346 2431 Devl1lopingbull __ ____ ______ bull____ 17 18 18 20 22 23 24 364 389 405 422 4511 484 509

NATObullbullbullbullbull __ bullbullbullbullbullbullbullbull __ 83 82 92 105 105 102 94 1231 1301 1360 1418 1462 1539 1558 Warsaw PacL__ ________ bull__ 55 56 58 59 61 63 64 446 472 501 526 553 566 594 Other__ ____ bull ________ bull __ bull __ 20 21 22 24 25 27 28 525 552 591 626 670 725 788

PER CAPITA

(Current Dollars)

WORLD __ 43 44 48 52 54 56 56 599 637 682 716 765 820 873 Developed _ ___ 134 135 151 167 174 179 180 1725 1 845 2009 2126 2310 2479 2666 Deyeloping __ 7 7 9 10 145 157 163 168 177 198 211

NATO _ 145 146 168 193 201 201 192 2139 2295 2469 2607 2792 3003 3151 Warsaw Pact 151 153 162 169 180 192 205 1213 1292 1398 1501 1626 1730 1897 Other __ ____ 7 8 9 9 10 11 194 208 224 235 253 279 307

(Comltanll968 Dollars)

WORlD____ __ bull _bull _____ bullbull ______ 49 48 51 55 54 54 51 682 703 727 747 765 790 805 Oeveloped ______ bullbull __ __ __ _____ bullbull 152 150 162 175 174 173 164 1978 2060 2157 2230 2310 2402 2469 Developlnllbull __ _____ __ bull ______ 7 8 8 8 9 9 9 158 165 167 170 177 186 191

NATO bullbull _ __ __ bull____________ _ bull ___ bull __ 165 162 180 202 201 194 177 2455 2563 2648 2734 2792 2911 2921 Warsaw PacL ________ ___________ 170 169 174 176 180 183 186 1362 1425 1502 1562 1626 1 652 1718 other _ ______ _____ __ 8 8 9 9 9 10 10 219 224 234 242 253 268 284

9

----

___

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968 [I n current dollars)

Relative burden Other public expend itures Armed forces

GrossMilitary ForcesforeignPopu- Militarynationalexpend-

MilitaryArmedeconomic aidPublic Publicexpend- GNPproductitures lation expend-health 14 forcesper educashyitures as

(per iturestion 23percent capita thou- per manReceived Givenof GNP sand

(thoushy popushy(million (million(million(million(dolshy(million(million (dollars)lation)sands)dollars) dollars)dollars)lars) dollars)dollars) (millions) ()dollars)

SUMMARY

WORLD TOT AL ---- Developed DEvEloping ----- shy

NORTH AMERICAmiddot - - - ---~ - shy

EUROPL Developed Developing

LATIN AMERiCAmiddotmiddot shy ~ --~

FAR EASL Developed - -_ - ~ ~

Developing_

SOUTH ASiA --

NEAR EAST _ - - ~ ~ ~

AFRICA - - - - _ shyDeveloped - - shy

~ ~ shy

_ -~ Developing

OCEANIA

WORLD TOTAL __ ____

NORTH AMERICA_ __ United Statesmiddot __ Canadamiddotbull _ __

EUROPL

NATO European Belgium __ __ Denmark France Germany WesP _____

Greece Icelandmiddot _ Italy __ Luxembourg Netherlands __

See footnotes at end 01 table

65521 60769 4752

23788

37051 35552 1499

1364

889 313 576

403

412

693 195 498

921

86387382

~ 8541 7382 97

shy 4282

576 3353 ~ 3306

47

1410

576

~

1551 846 796-50

1721

350

1324

1551

~

I 324

shy 157

23819 7 10973 II 12846 5

3602 16

8612 12 6986 II 1626 14

1153 4

7161 6 250 2

6911 6

1752 3

993 11 i

449 2 38 2

411 2

i 97 7 I

I

800 15381 170

2287o

1008 12002 1872

1938

1618 4584 I 573

1230

2921

2457 9368 1818

10866

190733 168779 21954

82379

86888 83844 3044

2235

12018 1146

10872

2155

2901

1103 356 747

1054

190733

82379 80596 I 783

86888

22668 602 345

6118 5278

367

2245

90 I

2685006 2234940

450066

931800

1185000 1115700

69300

113551

281335 141 920 139415

62090

29594

50130 14020 36 110

31500

2685006

931800 865700 66 100

1185000

529900 20700 12400

126600 132700

7600 500

74800 800

25 200

35091 9675

25416

221 9

7256 6106 1150

2617

12338 10LO

11327

6892

91 5

2708 192

2516

148

I

35091

221 9 201 2 208

7256

I 3016 I

96 50

499 602

I

88

21 528

3 127 1

71 72 49

118

73 75 44

20

43 8

78

35

98

22 25 21

33

765 2310

177

4199

1633 1827

603

434

228 1404

123

90

324

185 731 144

2131 i

BY COUNTRY

611

118 93 27

73

43 29 28 48 40

48

30 10 36

7651

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 I 418 2381 I 978

130172 117313 12859

50815

60318 58745 1573

2567

11138 6000 5138

1324

1085

1622 450

1172

1303

130172

50815 46400 4415

60318

17883 893 600

3354 3863

157 12

2730 29

1214

65521 7 382 1

J23788 4282 I

21 382 4 048 1 2406 234

8008

22870 23027 17480

100898612 12

7491 99

103026 10 6081

46 7500 505

9 12 115

486 10

108608

18 2280161

510244~ t 8000

129 i 10 3

7023

37051

15327 530 670 292

6874

middot90 5

696 -20 973

3353576

2829

-I 93 313

29 980 755 i

72

257

~I 139

10

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued I n current dollars]

Relative burden i Other public expenditures 1

Armed lorces

I---I--~-~I----Imiddot ----------shyMilitary Gross Popushy Military Foreign Forces i

Ituresexpendmiddot national

product lation expend GNP Public Public economic aid Armed Military itures as per educa- health 24 bull lorces Iexpend-percent capita tlon 3 1 (per itures 01 GNP Received Given thoumiddot per man

sand) (million (million (dolshy (million (million (million (million (thou- popumiddotdollars) dollars) (millions) () lars) dollars) dollars) dollars) dollars) I sands) lalion) I (dollars)

BY COUNTRY~Continued

NATO-Continued Norway Portugal _ Turkey United Kindgom

322 359 573

5545

9 000 5000

11600 103000

38 95

335 553

36 72 49 54

2357 528 346

1863

403 57

321 4450

180 79

139 4779

241

24 47

505

35 183 514 427

9 19 15 8

9200 1 962 1115

12986

NATO Total 105047 1461700 5235 72 2792 68698 39117 313 7 III 6628 13 15849

Warsaw PacL Bulgaria __ Czechoslovakia _ Germany East __ ___ Hungary _____ __

61 100 300

1 360 1 450

340

553200 9100

28400 30800 13800

3402 84

144 171 103

(7-9) 33 48 47 25

1626 1083 1972 1801 1340

38604 367

1093 I 031

580

18281 272 982 792 339

400

100

4783 173 265 196 l37

14 21 18 II 13

12774 1734 5132 7398 2482

Poland__ ____ __ __ _ Romania __ Soviet Union

1950 700

55000

37400 20700

413000

323 197

2380

521158 34 1051

(8-10) 1735

1643 890

33000

1396 600

13900 300

319 223

3470

10 II 15

6113 3139

15850

Other European Albania ___ Austria _ Finland _ _ __ _ Ireland _

3120 76

150 156

27

101900 800

11400 8 000 3 000

838 20 74 47 29

31 1095

13 2 a 9

I 216 400

1551 1706 1 031

3831 70

402 585 110

3443 30 567 344

ll4

263 124

31

803 51

50 39

10

10 26 7 8 3

3885 1490 3 000 4000 2700

Spain _ Sweden_ _ Switzerland _ Yugoslavia _

913 977 365 456

25200 26300 17200 10000

3261 79 61

202

36 37 21 46

773 3322 2798

496

290 1486

577 3ll

403 1 070

429 486

181

82

72 21

305 78 31

239

91 10 5

12

2993 u 12526 11 11774

1908

LATIN AMERICA __ Argentina _ Bolivia _ BraziL_ Chile _ Colombia _

2235 380 17

651 127 98

113557 171l1

786 27353 5670 5638

261 7 236 44

802 92

198

20 22 22 24 22 17

434 725 177 310 614 284

2567 I 346

25 169 205 111

1364 26 3

81 155

96

1410 15 52

319 220 170

1153 8144

18 225 63 55

4 6 4 3 7

1938 2639

944 2893 2016 1782

Cost Ricbull _ _ Cuba bullbull ___ __ _ Dominican Republic_ _ Ecuadoc ___ EI Salvador

300 30 26 10

734 bull 5 000

1169 1475

930

16 76 4 a 57 32

106 a 26 18 11

449 658 295 259 290

33 281

26 35 24

20 60 -14

6 14

15 1

54 28 10

394 18 17 6

52 5 3 2

761 1667 1529 1667

Guatemala _ __ Guyana _ _ HaitL __ Honduras _ Jamaica _

16 2

1500 215 326 621 951

5 a 7

50 25 L9

11 9

21 14 5

299 303

65 245 497

27 8 3

17 22

34 8 4 7

17

24 16 6

15 28

9 1 5

2 1 1 2 1

1778 2000 1 400 1800 2500

Mexico_ Nicaragua __ _ Panama _ __ Paraguay _ Peru ____

184 10 1

10 132

26310 697 826 511

4287

473 19 14 22

128

7 14 1

20 31

557 374 602 229 336

504 16 33 9

151

316 5

16 3

51

210 19 19 23 57

70 i6

13 50

6

2629 1667

769 2640

Trinidad amp Tobago __ Uruguay_ bull Venezuela

3 23

194

748 1589 9110

10 28 97

4 14 21

726 564 941

19 13

396

10 21 78

1 13

38

3 000 1 769 5105

See footnotes at end of table

11

TABLE It-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued (I n current dollars) 1

Military expendshy

itures

Gross national product

Popushylation

Relative burden Other public expenditures

I

I Public

ForeignMilitary GNP Public economic aid S expendshy per I educashyitures as I capita 1 tion Zbull1 I health

Armed forces

I 1Forces Armed 1 Military forces 1 flfer expend-

percent I Received Given 1 taumiddot itures of GNP 1 sand I per man

(million (million I

(dol- (million (million (million (million I (thou- popushy1dollars) dollars) I(millions) () lars)

dollars) dollars) 1 dollars) dollars) I sands) lation) (dollars)

I I

__------_--

FAR EAST Burma Cambodia China Mainland China Republic 01 Indonesia

Japan+ Korea North Korea Republic oL Laos Malaysia

Mongolia Philippines Thailand Vietnam North Vietnam Republic of

SOUTH ASiA Afghanista n Ceylon India NepaL Pakistan

NEAR EAST Cyprus Iran Iraq I srae __ Jordan I

Kuwait I lebanon Saudi Arabia Syrian Arab Republic -

Yemen

United Arab Republic

AFRICA 0shy

Algeria Cameroon Cenlral African Republic Chad Congo (Brazzaville)

Congo (Kinshasa) Dahomey __ I Ethiopia Gabon Ghana _

Guinea __ Ivory Coast Kenya liberia libya

See footnotes at end of table

middot20 116 157

550 613

2155 16 13

1603 5

518

2901 I 6

530

280 I 672 105

63 45 I

383 i 137 I 14 I 666 I

1103 1

100 I 19 I 3

8 1

6 I

44 I 4

41 I 3

44 i

14 I 17 I 15 I 3 I

37 I

575 I 7276 1 5512

2300 3050

62090 1370 1781

43 000 800

15139

29594 1 438

8 020 I 2400 i 4042

575 i

2220 i

1 424 2200 I 1425

550

5740

50130 3365

800 200 270 174

1330 182

1534 200

1 994

669 1242 1330

254 2965

BY COUNTRY--Continued

12338 264 66

806 a 141

1137

43 57 66

F 8 3 101 29

4 000 99

100

101 1 134 305

28 103

8 10180

41 168 32

1 404 I 261 188 I 721

326 I

6000 100 110

7 140

12 359 351 193 174

1[gt 35 16 28

10 239 20 I

479 I 203 157 i 119

175 I

198 168 91

32

6892 161 120

5271 107

1234

35 12 7

37 6

34

90 1 85 I

149

82 I 75

123 I

1324 6

66 1 130

4 118

91 5 6

27 I 86 27 2 I

98 14 66

117 166 183

324 704 296 278

1472 I 274

1085 9

182 133 225

19

5 27 46 57 5 a

28 32

174 96

) 2 5

4111 519 478 250 110

87 34

107 54 3

31 7 I 6 181 232

2708 129 56 15 35 9

22 3 a 24

10 1 5 10 3 a to 34

185 260 43 134 78

200

1622 155 23 7 8

111

17 a 26

242 5

84

33 lfr 2 2

27 15 22

78

711 63 I

417

238 1

69 I 7

15 10 67

38 4 a

102 11 18

21 4 11 12 12

174 312 130 225

1644

37 60 22 7

74

313 I 11 I II 2

123

2

23 29

18 24

403 9 46

283 5

60

412 I 4 1

135 I 28 57

44 8

33 7

8

80

693 59 11 3

bull 4 6

28 I 5 1

1~ I 16

17 10 3

37

11

95 333

314 60 50

139 79

448

1721 30 48

1107 2

534

350 I

132 14 70 48

14 13

-15 11 1

61

1324 117

45 18 22 42

67 18 50 11 87

9 49 61 23 6

50

796

i I I i

s 33 47

167 447 735

1752 70 10

11133 1

15 1

bull 524 1

I 99i I

bull 225 I 992 1

771 55 I

I 7

12 956 69

8

bull 391

449 58 5

1 1 2 I

I 31 2 I

45 i 1 1

15 i

4 3-I 4

I 8 I

2 I 31 20 I 34 6

28

5 23

42

3 4 i 2 i I I 4 I

I 11 2 i 8

II 28 26 I

13 4

12 1

12 1

2 I

12 I 2 I 4 I 1 I 1

4 1 4 I

1678 775 774

2419 805 696

4584 1 534

379 358

1 895

606 2468

940 1 230

834

1230 229

1300 1415

333 989

2921 6000 2356 3043 8727 1 909

9 000 3750 6839 1986 1750

1703

2457 1724 3800 3 000 8 000 3 000

1419 2 000

911 3000 2933

2800 4250 5 000

750 4625

12

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968-Continued [In current dollarsjt

I Relative burden I Other public expenditures I Armed forcesI

IMilitary ForeignGross expend- national Popu- Military GNP Public economic aid S Forces MilitaryIArmeditures product lation expend- per educa- Public expendshy

tion 23 (perhealth 2 ituresitures as capita forces thoupercent per manReceived Given

of GNP sand (million (million (million (million (million (thoushy(dolshy (million popushydollars) dollars) (millions) lars) dollars) dollars) dollars) dollars) sands) lation)

I(dollars)()

I

BY COUNTRY -Continued

AFRICA-Continued Malagasy Republic MalawL __ MaIL __ Mauritania Morocco_

Niger Nigeria____ Rhodesia Southern__ __ _ Senegal ____ Sierra leone __ __

Somali Republic __ __ __ South Africa Republic of Sudan __ __ Tanzania Togo ____

Tunisia Ugandabull Upper Volta~ __ Zambia ______

OCEANIA ____ Australia __ ___ New Zealand

13 780 I 247 5 264 8 172

76 2981

342 91 3

6000 21 1138 15 827

340

8 170 356 14020

74 1560 13 943 I 121

183 213 I 14 471048 16 994 81 -5 5 I257 20 1325 41

1054 31500 148 26600 120

9~ I 4900 I 28 I

70 43 48 11

146

38 535 49 38 25

27 192 148

Oeveloped country or region (Country without asterisk is developing) All countries in region are developing Rough ACDA estimate

None or negligible I For most countries conversion into US dollars Is at official par value exchange

rates as rounded by AID For all Communist and several developing countries esllmated purchaSing power panties are used (See Conversion Rates page 35)

Due to dilferences in concepls coverage and reliability data on public education and health expenditures do not permit accurate comparisons between countries or in some cases between years for the same country

3 Public expendHures on education in 1968 are ACDA estimates based primarily on dala for 1967 or earlier (See Educalion page 34)

Informallon on educational expenditures which are made outside of governmentbudgets is not available on a worldwide baSis The rellive importance of these expenditures vanes sharply from co~nlry to country In the United States private expe~dltures In 1968 were $118 billion or 20 of the total Private expendilures conslltut~d the follOWing percentages of total national expenditures In 1967 (or Ih indicated year) according to UNESCO estimates

EI Salvador ______ Sudan

Percent Percent Argenlina (1966) __ __ Australia ____ __ Canada ____ __ Chile (1966) bull China Republic of ~_ poundcuador bull __ __ __ __

51 38 23 28 29 34

Israel (I966)~ __ Japan _____ Jordan __Kenya __ _ Malawi _ __ Philippines_

26 20 14 70 15 24

23 __ ___ __ 27 Bhiopia (1966) 47 Venezuela __ __ _______ __ 27Greece ________ __ 39 Vietnam Republic of (1965) __ 58Guatemala _______ __ __ 25 Zambia (1966) __ __ 73India __ 44

In Communist countrie~ extramiddotbudgetary expenditures are also significan For example according 10 offiCial data education expenditures by state cooperative and trade union enterprises and collective farms in the Soviet Union make up about 13 percent of the total parental payments to childrens institutions and schools mayconstitute another 6 percent

17 III 49 15 44 4 58 II 4 26

19 55 10 4 20 47 154 4 8 25 204 106 40 124

9

I

90 I 5 29 15 112 132 [ 83 108 18 230 42 I 13 -3 18 220 29 14 48 9 137 9 3 111

47 62 3 I 26 I

25 731 450 195 47 106 69 22 I 29 14 78 30 13 34 14 120 4 2 13

13 16

224 122

i 57 I

15

I 15

14 I 88 20

lO 1 9 50 i 6 I 23 15 326

1

I 20 I e 18 51

I

33 2131 1 1303 I 921 157 36 18

2211 1 781

i

i 1132

171 697 224 i

157

I 4 I I

4 I

62

I 70 I 5 5 i

2

8 38 24 4 1

2 I 2 I 3 i

I I

97 84 shy13 I

4

3250 1000 1250 8000 1226

3000 1300 4200 3000 1500

1000 9368 3083 3250 3000

609 2667 2500 6667

10866 11524 6615

Public expenditures on health in 1968 are based in part on data for earlier years(See Health page 35)

As 10 educational expenditures Ihe portion of tolal health expenditures which is exlramiddotbudgetary varies greatly from country to country Scattered information suggests that on average Ihe private portion of health expenditures may be higherthan the private portion of education expenditures In the United States in 1968 private health expenditures amounted to $352 billion or 62 percent of total health expenditures

In Communist countries extramiddotbudgetary health expenditures are made by state cooperative and trade unum enterprises anj collective farms as well as households In the Soviet Union for example they constitute about 20 percent of total health expenditures according to official sources

Economic aid given by Communist countries to nonmiddotCommunist counlries is included in the world total of aid received It is not distributed by individual recipientcounlries or regions however as accurate data on such distribution are no available (See Foreign Economic Aid page 34_)

Military expenditures and GNP are not fully comparable due to the use of different dollar conversion rates lor the two variables in the Soviet Union (see footnote 9)Using the more valid ralios shown in parentheses for the Soviet Union and Ihe Warsaw Pact total the ratio for the world is eslimated to be 6-7 percent and for Europe 5-6 percent

1 Ineludes West Berlin Includes paramililary as well as regular forces The implied relationship between dollar amounts of Soviet GNP and military

expenditures (or GNP and public expenditures on educalion and health) is not valid due 10 the use of di~erent types of conversion rates lor GNP and particular sectors It is estimated Ihat the actual ratio of military expenditures to GNP would fall somemiddot where within the range indicated in parentheses the lower part of the range reflecting a comparison of military expenditures and GNP in faclormiddoteost ruble values and the upper estimate representing dollar values converted on a comparable basis (See Conversion Rates page 35)

10 Since either or both military expenditures and GNP estimates are approximations the resulting ratio should be viewed with particular caution

II For Sweden SWitzerland and Israel the high rate of military expendilures per man rellects small standing forces with a capability for extremely rapid mobilization of large reserve forces

13

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 12: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

TABLE I-SUMMARY TRENDS IN MILITARY EXPENDITURES AND GNP 1964-70

Military Expenditures Gross National Product

1964 1965 1966 1967 1968 1969 1970 1964 1965 1966 1967 1968 1969 1970 est est est est

TOTAL

(Billions of Current Dollars)

WORLD 140 144 161 180 191 199 204 1936 2106 2301 2464 2685 2936 3188 Developed 125 127 143 160 169 175 177 1603 1734 1907 2048 2235 2421 2625 Developing _ 15 17 18 20 22 24 27 333 372 394 416 450 515 563

NATO __ _ 73 74 86 100 105 106 103 1073 1165 1268 1352 1462 1587 l681 Warsaw Pact 49 51 54 57 61 66 71 397 428 466 506 553 593 655 Other _ 18 19 21 23 25 27 30 466 513 567 606 670 756 852

811110ns of Constantl968 Dollars) (

WORLDbullbullbull _bullbullbullbullbullbullbull 158 159 172 188 191 192 186 22112 2325 2452 25711 2685 2830 2940 Developedbullbullbullbullbullbullbullbullbull _bullbull 141 141 154 168 169 169 162 1838 1936 2047 2148 2235 2346 2431 Devl1lopingbull __ ____ ______ bull____ 17 18 18 20 22 23 24 364 389 405 422 4511 484 509

NATObullbullbullbullbull __ bullbullbullbullbullbullbullbull __ 83 82 92 105 105 102 94 1231 1301 1360 1418 1462 1539 1558 Warsaw PacL__ ________ bull__ 55 56 58 59 61 63 64 446 472 501 526 553 566 594 Other__ ____ bull ________ bull __ bull __ 20 21 22 24 25 27 28 525 552 591 626 670 725 788

PER CAPITA

(Current Dollars)

WORLD __ 43 44 48 52 54 56 56 599 637 682 716 765 820 873 Developed _ ___ 134 135 151 167 174 179 180 1725 1 845 2009 2126 2310 2479 2666 Deyeloping __ 7 7 9 10 145 157 163 168 177 198 211

NATO _ 145 146 168 193 201 201 192 2139 2295 2469 2607 2792 3003 3151 Warsaw Pact 151 153 162 169 180 192 205 1213 1292 1398 1501 1626 1730 1897 Other __ ____ 7 8 9 9 10 11 194 208 224 235 253 279 307

(Comltanll968 Dollars)

WORlD____ __ bull _bull _____ bullbull ______ 49 48 51 55 54 54 51 682 703 727 747 765 790 805 Oeveloped ______ bullbull __ __ __ _____ bullbull 152 150 162 175 174 173 164 1978 2060 2157 2230 2310 2402 2469 Developlnllbull __ _____ __ bull ______ 7 8 8 8 9 9 9 158 165 167 170 177 186 191

NATO bullbull _ __ __ bull____________ _ bull ___ bull __ 165 162 180 202 201 194 177 2455 2563 2648 2734 2792 2911 2921 Warsaw PacL ________ ___________ 170 169 174 176 180 183 186 1362 1425 1502 1562 1626 1 652 1718 other _ ______ _____ __ 8 8 9 9 9 10 10 219 224 234 242 253 268 284

9

----

___

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968 [I n current dollars)

Relative burden Other public expend itures Armed forces

GrossMilitary ForcesforeignPopu- Militarynationalexpend-

MilitaryArmedeconomic aidPublic Publicexpend- GNPproductitures lation expend-health 14 forcesper educashyitures as

(per iturestion 23percent capita thou- per manReceived Givenof GNP sand

(thoushy popushy(million (million(million(million(dolshy(million(million (dollars)lation)sands)dollars) dollars)dollars)lars) dollars)dollars) (millions) ()dollars)

SUMMARY

WORLD TOT AL ---- Developed DEvEloping ----- shy

NORTH AMERICAmiddot - - - ---~ - shy

EUROPL Developed Developing

LATIN AMERiCAmiddotmiddot shy ~ --~

FAR EASL Developed - -_ - ~ ~

Developing_

SOUTH ASiA --

NEAR EAST _ - - ~ ~ ~

AFRICA - - - - _ shyDeveloped - - shy

~ ~ shy

_ -~ Developing

OCEANIA

WORLD TOTAL __ ____

NORTH AMERICA_ __ United Statesmiddot __ Canadamiddotbull _ __

EUROPL

NATO European Belgium __ __ Denmark France Germany WesP _____

Greece Icelandmiddot _ Italy __ Luxembourg Netherlands __

See footnotes at end 01 table

65521 60769 4752

23788

37051 35552 1499

1364

889 313 576

403

412

693 195 498

921

86387382

~ 8541 7382 97

shy 4282

576 3353 ~ 3306

47

1410

576

~

1551 846 796-50

1721

350

1324

1551

~

I 324

shy 157

23819 7 10973 II 12846 5

3602 16

8612 12 6986 II 1626 14

1153 4

7161 6 250 2

6911 6

1752 3

993 11 i

449 2 38 2

411 2

i 97 7 I

I

800 15381 170

2287o

1008 12002 1872

1938

1618 4584 I 573

1230

2921

2457 9368 1818

10866

190733 168779 21954

82379

86888 83844 3044

2235

12018 1146

10872

2155

2901

1103 356 747

1054

190733

82379 80596 I 783

86888

22668 602 345

6118 5278

367

2245

90 I

2685006 2234940

450066

931800

1185000 1115700

69300

113551

281335 141 920 139415

62090

29594

50130 14020 36 110

31500

2685006

931800 865700 66 100

1185000

529900 20700 12400

126600 132700

7600 500

74800 800

25 200

35091 9675

25416

221 9

7256 6106 1150

2617

12338 10LO

11327

6892

91 5

2708 192

2516

148

I

35091

221 9 201 2 208

7256

I 3016 I

96 50

499 602

I

88

21 528

3 127 1

71 72 49

118

73 75 44

20

43 8

78

35

98

22 25 21

33

765 2310

177

4199

1633 1827

603

434

228 1404

123

90

324

185 731 144

2131 i

BY COUNTRY

611

118 93 27

73

43 29 28 48 40

48

30 10 36

7651

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 I 418 2381 I 978

130172 117313 12859

50815

60318 58745 1573

2567

11138 6000 5138

1324

1085

1622 450

1172

1303

130172

50815 46400 4415

60318

17883 893 600

3354 3863

157 12

2730 29

1214

65521 7 382 1

J23788 4282 I

21 382 4 048 1 2406 234

8008

22870 23027 17480

100898612 12

7491 99

103026 10 6081

46 7500 505

9 12 115

486 10

108608

18 2280161

510244~ t 8000

129 i 10 3

7023

37051

15327 530 670 292

6874

middot90 5

696 -20 973

3353576

2829

-I 93 313

29 980 755 i

72

257

~I 139

10

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued I n current dollars]

Relative burden i Other public expenditures 1

Armed lorces

I---I--~-~I----Imiddot ----------shyMilitary Gross Popushy Military Foreign Forces i

Ituresexpendmiddot national

product lation expend GNP Public Public economic aid Armed Military itures as per educa- health 24 bull lorces Iexpend-percent capita tlon 3 1 (per itures 01 GNP Received Given thoumiddot per man

sand) (million (million (dolshy (million (million (million (million (thou- popumiddotdollars) dollars) (millions) () lars) dollars) dollars) dollars) dollars) I sands) lalion) I (dollars)

BY COUNTRY~Continued

NATO-Continued Norway Portugal _ Turkey United Kindgom

322 359 573

5545

9 000 5000

11600 103000

38 95

335 553

36 72 49 54

2357 528 346

1863

403 57

321 4450

180 79

139 4779

241

24 47

505

35 183 514 427

9 19 15 8

9200 1 962 1115

12986

NATO Total 105047 1461700 5235 72 2792 68698 39117 313 7 III 6628 13 15849

Warsaw PacL Bulgaria __ Czechoslovakia _ Germany East __ ___ Hungary _____ __

61 100 300

1 360 1 450

340

553200 9100

28400 30800 13800

3402 84

144 171 103

(7-9) 33 48 47 25

1626 1083 1972 1801 1340

38604 367

1093 I 031

580

18281 272 982 792 339

400

100

4783 173 265 196 l37

14 21 18 II 13

12774 1734 5132 7398 2482

Poland__ ____ __ __ _ Romania __ Soviet Union

1950 700

55000

37400 20700

413000

323 197

2380

521158 34 1051

(8-10) 1735

1643 890

33000

1396 600

13900 300

319 223

3470

10 II 15

6113 3139

15850

Other European Albania ___ Austria _ Finland _ _ __ _ Ireland _

3120 76

150 156

27

101900 800

11400 8 000 3 000

838 20 74 47 29

31 1095

13 2 a 9

I 216 400

1551 1706 1 031

3831 70

402 585 110

3443 30 567 344

ll4

263 124

31

803 51

50 39

10

10 26 7 8 3

3885 1490 3 000 4000 2700

Spain _ Sweden_ _ Switzerland _ Yugoslavia _

913 977 365 456

25200 26300 17200 10000

3261 79 61

202

36 37 21 46

773 3322 2798

496

290 1486

577 3ll

403 1 070

429 486

181

82

72 21

305 78 31

239

91 10 5

12

2993 u 12526 11 11774

1908

LATIN AMERICA __ Argentina _ Bolivia _ BraziL_ Chile _ Colombia _

2235 380 17

651 127 98

113557 171l1

786 27353 5670 5638

261 7 236 44

802 92

198

20 22 22 24 22 17

434 725 177 310 614 284

2567 I 346

25 169 205 111

1364 26 3

81 155

96

1410 15 52

319 220 170

1153 8144

18 225 63 55

4 6 4 3 7

1938 2639

944 2893 2016 1782

Cost Ricbull _ _ Cuba bullbull ___ __ _ Dominican Republic_ _ Ecuadoc ___ EI Salvador

300 30 26 10

734 bull 5 000

1169 1475

930

16 76 4 a 57 32

106 a 26 18 11

449 658 295 259 290

33 281

26 35 24

20 60 -14

6 14

15 1

54 28 10

394 18 17 6

52 5 3 2

761 1667 1529 1667

Guatemala _ __ Guyana _ _ HaitL __ Honduras _ Jamaica _

16 2

1500 215 326 621 951

5 a 7

50 25 L9

11 9

21 14 5

299 303

65 245 497

27 8 3

17 22

34 8 4 7

17

24 16 6

15 28

9 1 5

2 1 1 2 1

1778 2000 1 400 1800 2500

Mexico_ Nicaragua __ _ Panama _ __ Paraguay _ Peru ____

184 10 1

10 132

26310 697 826 511

4287

473 19 14 22

128

7 14 1

20 31

557 374 602 229 336

504 16 33 9

151

316 5

16 3

51

210 19 19 23 57

70 i6

13 50

6

2629 1667

769 2640

Trinidad amp Tobago __ Uruguay_ bull Venezuela

3 23

194

748 1589 9110

10 28 97

4 14 21

726 564 941

19 13

396

10 21 78

1 13

38

3 000 1 769 5105

See footnotes at end of table

11

TABLE It-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued (I n current dollars) 1

Military expendshy

itures

Gross national product

Popushylation

Relative burden Other public expenditures

I

I Public

ForeignMilitary GNP Public economic aid S expendshy per I educashyitures as I capita 1 tion Zbull1 I health

Armed forces

I 1Forces Armed 1 Military forces 1 flfer expend-

percent I Received Given 1 taumiddot itures of GNP 1 sand I per man

(million (million I

(dol- (million (million (million (million I (thou- popushy1dollars) dollars) I(millions) () lars)

dollars) dollars) 1 dollars) dollars) I sands) lation) (dollars)

I I

__------_--

FAR EAST Burma Cambodia China Mainland China Republic 01 Indonesia

Japan+ Korea North Korea Republic oL Laos Malaysia

Mongolia Philippines Thailand Vietnam North Vietnam Republic of

SOUTH ASiA Afghanista n Ceylon India NepaL Pakistan

NEAR EAST Cyprus Iran Iraq I srae __ Jordan I

Kuwait I lebanon Saudi Arabia Syrian Arab Republic -

Yemen

United Arab Republic

AFRICA 0shy

Algeria Cameroon Cenlral African Republic Chad Congo (Brazzaville)

Congo (Kinshasa) Dahomey __ I Ethiopia Gabon Ghana _

Guinea __ Ivory Coast Kenya liberia libya

See footnotes at end of table

middot20 116 157

550 613

2155 16 13

1603 5

518

2901 I 6

530

280 I 672 105

63 45 I

383 i 137 I 14 I 666 I

1103 1

100 I 19 I 3

8 1

6 I

44 I 4

41 I 3

44 i

14 I 17 I 15 I 3 I

37 I

575 I 7276 1 5512

2300 3050

62090 1370 1781

43 000 800

15139

29594 1 438

8 020 I 2400 i 4042

575 i

2220 i

1 424 2200 I 1425

550

5740

50130 3365

800 200 270 174

1330 182

1534 200

1 994

669 1242 1330

254 2965

BY COUNTRY--Continued

12338 264 66

806 a 141

1137

43 57 66

F 8 3 101 29

4 000 99

100

101 1 134 305

28 103

8 10180

41 168 32

1 404 I 261 188 I 721

326 I

6000 100 110

7 140

12 359 351 193 174

1[gt 35 16 28

10 239 20 I

479 I 203 157 i 119

175 I

198 168 91

32

6892 161 120

5271 107

1234

35 12 7

37 6

34

90 1 85 I

149

82 I 75

123 I

1324 6

66 1 130

4 118

91 5 6

27 I 86 27 2 I

98 14 66

117 166 183

324 704 296 278

1472 I 274

1085 9

182 133 225

19

5 27 46 57 5 a

28 32

174 96

) 2 5

4111 519 478 250 110

87 34

107 54 3

31 7 I 6 181 232

2708 129 56 15 35 9

22 3 a 24

10 1 5 10 3 a to 34

185 260 43 134 78

200

1622 155 23 7 8

111

17 a 26

242 5

84

33 lfr 2 2

27 15 22

78

711 63 I

417

238 1

69 I 7

15 10 67

38 4 a

102 11 18

21 4 11 12 12

174 312 130 225

1644

37 60 22 7

74

313 I 11 I II 2

123

2

23 29

18 24

403 9 46

283 5

60

412 I 4 1

135 I 28 57

44 8

33 7

8

80

693 59 11 3

bull 4 6

28 I 5 1

1~ I 16

17 10 3

37

11

95 333

314 60 50

139 79

448

1721 30 48

1107 2

534

350 I

132 14 70 48

14 13

-15 11 1

61

1324 117

45 18 22 42

67 18 50 11 87

9 49 61 23 6

50

796

i I I i

s 33 47

167 447 735

1752 70 10

11133 1

15 1

bull 524 1

I 99i I

bull 225 I 992 1

771 55 I

I 7

12 956 69

8

bull 391

449 58 5

1 1 2 I

I 31 2 I

45 i 1 1

15 i

4 3-I 4

I 8 I

2 I 31 20 I 34 6

28

5 23

42

3 4 i 2 i I I 4 I

I 11 2 i 8

II 28 26 I

13 4

12 1

12 1

2 I

12 I 2 I 4 I 1 I 1

4 1 4 I

1678 775 774

2419 805 696

4584 1 534

379 358

1 895

606 2468

940 1 230

834

1230 229

1300 1415

333 989

2921 6000 2356 3043 8727 1 909

9 000 3750 6839 1986 1750

1703

2457 1724 3800 3 000 8 000 3 000

1419 2 000

911 3000 2933

2800 4250 5 000

750 4625

12

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968-Continued [In current dollarsjt

I Relative burden I Other public expenditures I Armed forcesI

IMilitary ForeignGross expend- national Popu- Military GNP Public economic aid S Forces MilitaryIArmeditures product lation expend- per educa- Public expendshy

tion 23 (perhealth 2 ituresitures as capita forces thoupercent per manReceived Given

of GNP sand (million (million (million (million (million (thoushy(dolshy (million popushydollars) dollars) (millions) lars) dollars) dollars) dollars) dollars) sands) lation)

I(dollars)()

I

BY COUNTRY -Continued

AFRICA-Continued Malagasy Republic MalawL __ MaIL __ Mauritania Morocco_

Niger Nigeria____ Rhodesia Southern__ __ _ Senegal ____ Sierra leone __ __

Somali Republic __ __ __ South Africa Republic of Sudan __ __ Tanzania Togo ____

Tunisia Ugandabull Upper Volta~ __ Zambia ______

OCEANIA ____ Australia __ ___ New Zealand

13 780 I 247 5 264 8 172

76 2981

342 91 3

6000 21 1138 15 827

340

8 170 356 14020

74 1560 13 943 I 121

183 213 I 14 471048 16 994 81 -5 5 I257 20 1325 41

1054 31500 148 26600 120

9~ I 4900 I 28 I

70 43 48 11

146

38 535 49 38 25

27 192 148

Oeveloped country or region (Country without asterisk is developing) All countries in region are developing Rough ACDA estimate

None or negligible I For most countries conversion into US dollars Is at official par value exchange

rates as rounded by AID For all Communist and several developing countries esllmated purchaSing power panties are used (See Conversion Rates page 35)

Due to dilferences in concepls coverage and reliability data on public education and health expenditures do not permit accurate comparisons between countries or in some cases between years for the same country

3 Public expendHures on education in 1968 are ACDA estimates based primarily on dala for 1967 or earlier (See Educalion page 34)

Informallon on educational expenditures which are made outside of governmentbudgets is not available on a worldwide baSis The rellive importance of these expenditures vanes sharply from co~nlry to country In the United States private expe~dltures In 1968 were $118 billion or 20 of the total Private expendilures conslltut~d the follOWing percentages of total national expenditures In 1967 (or Ih indicated year) according to UNESCO estimates

EI Salvador ______ Sudan

Percent Percent Argenlina (1966) __ __ Australia ____ __ Canada ____ __ Chile (1966) bull China Republic of ~_ poundcuador bull __ __ __ __

51 38 23 28 29 34

Israel (I966)~ __ Japan _____ Jordan __Kenya __ _ Malawi _ __ Philippines_

26 20 14 70 15 24

23 __ ___ __ 27 Bhiopia (1966) 47 Venezuela __ __ _______ __ 27Greece ________ __ 39 Vietnam Republic of (1965) __ 58Guatemala _______ __ __ 25 Zambia (1966) __ __ 73India __ 44

In Communist countrie~ extramiddotbudgetary expenditures are also significan For example according 10 offiCial data education expenditures by state cooperative and trade union enterprises and collective farms in the Soviet Union make up about 13 percent of the total parental payments to childrens institutions and schools mayconstitute another 6 percent

17 III 49 15 44 4 58 II 4 26

19 55 10 4 20 47 154 4 8 25 204 106 40 124

9

I

90 I 5 29 15 112 132 [ 83 108 18 230 42 I 13 -3 18 220 29 14 48 9 137 9 3 111

47 62 3 I 26 I

25 731 450 195 47 106 69 22 I 29 14 78 30 13 34 14 120 4 2 13

13 16

224 122

i 57 I

15

I 15

14 I 88 20

lO 1 9 50 i 6 I 23 15 326

1

I 20 I e 18 51

I

33 2131 1 1303 I 921 157 36 18

2211 1 781

i

i 1132

171 697 224 i

157

I 4 I I

4 I

62

I 70 I 5 5 i

2

8 38 24 4 1

2 I 2 I 3 i

I I

97 84 shy13 I

4

3250 1000 1250 8000 1226

3000 1300 4200 3000 1500

1000 9368 3083 3250 3000

609 2667 2500 6667

10866 11524 6615

Public expenditures on health in 1968 are based in part on data for earlier years(See Health page 35)

As 10 educational expenditures Ihe portion of tolal health expenditures which is exlramiddotbudgetary varies greatly from country to country Scattered information suggests that on average Ihe private portion of health expenditures may be higherthan the private portion of education expenditures In the United States in 1968 private health expenditures amounted to $352 billion or 62 percent of total health expenditures

In Communist countries extramiddotbudgetary health expenditures are made by state cooperative and trade unum enterprises anj collective farms as well as households In the Soviet Union for example they constitute about 20 percent of total health expenditures according to official sources

Economic aid given by Communist countries to nonmiddotCommunist counlries is included in the world total of aid received It is not distributed by individual recipientcounlries or regions however as accurate data on such distribution are no available (See Foreign Economic Aid page 34_)

Military expenditures and GNP are not fully comparable due to the use of different dollar conversion rates lor the two variables in the Soviet Union (see footnote 9)Using the more valid ralios shown in parentheses for the Soviet Union and Ihe Warsaw Pact total the ratio for the world is eslimated to be 6-7 percent and for Europe 5-6 percent

1 Ineludes West Berlin Includes paramililary as well as regular forces The implied relationship between dollar amounts of Soviet GNP and military

expenditures (or GNP and public expenditures on educalion and health) is not valid due 10 the use of di~erent types of conversion rates lor GNP and particular sectors It is estimated Ihat the actual ratio of military expenditures to GNP would fall somemiddot where within the range indicated in parentheses the lower part of the range reflecting a comparison of military expenditures and GNP in faclormiddoteost ruble values and the upper estimate representing dollar values converted on a comparable basis (See Conversion Rates page 35)

10 Since either or both military expenditures and GNP estimates are approximations the resulting ratio should be viewed with particular caution

II For Sweden SWitzerland and Israel the high rate of military expendilures per man rellects small standing forces with a capability for extremely rapid mobilization of large reserve forces

13

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 13: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

----

___

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968 [I n current dollars)

Relative burden Other public expend itures Armed forces

GrossMilitary ForcesforeignPopu- Militarynationalexpend-

MilitaryArmedeconomic aidPublic Publicexpend- GNPproductitures lation expend-health 14 forcesper educashyitures as

(per iturestion 23percent capita thou- per manReceived Givenof GNP sand

(thoushy popushy(million (million(million(million(dolshy(million(million (dollars)lation)sands)dollars) dollars)dollars)lars) dollars)dollars) (millions) ()dollars)

SUMMARY

WORLD TOT AL ---- Developed DEvEloping ----- shy

NORTH AMERICAmiddot - - - ---~ - shy

EUROPL Developed Developing

LATIN AMERiCAmiddotmiddot shy ~ --~

FAR EASL Developed - -_ - ~ ~

Developing_

SOUTH ASiA --

NEAR EAST _ - - ~ ~ ~

AFRICA - - - - _ shyDeveloped - - shy

~ ~ shy

_ -~ Developing

OCEANIA

WORLD TOTAL __ ____

NORTH AMERICA_ __ United Statesmiddot __ Canadamiddotbull _ __

EUROPL

NATO European Belgium __ __ Denmark France Germany WesP _____

Greece Icelandmiddot _ Italy __ Luxembourg Netherlands __

See footnotes at end 01 table

65521 60769 4752

23788

37051 35552 1499

1364

889 313 576

403

412

693 195 498

921

86387382

~ 8541 7382 97

shy 4282

576 3353 ~ 3306

47

1410

576

~

1551 846 796-50

1721

350

1324

1551

~

I 324

shy 157

23819 7 10973 II 12846 5

3602 16

8612 12 6986 II 1626 14

1153 4

7161 6 250 2

6911 6

1752 3

993 11 i

449 2 38 2

411 2

i 97 7 I

I

800 15381 170

2287o

1008 12002 1872

1938

1618 4584 I 573

1230

2921

2457 9368 1818

10866

190733 168779 21954

82379

86888 83844 3044

2235

12018 1146

10872

2155

2901

1103 356 747

1054

190733

82379 80596 I 783

86888

22668 602 345

6118 5278

367

2245

90 I

2685006 2234940

450066

931800

1185000 1115700

69300

113551

281335 141 920 139415

62090

29594

50130 14020 36 110

31500

2685006

931800 865700 66 100

1185000

529900 20700 12400

126600 132700

7600 500

74800 800

25 200

35091 9675

25416

221 9

7256 6106 1150

2617

12338 10LO

11327

6892

91 5

2708 192

2516

148

I

35091

221 9 201 2 208

7256

I 3016 I

96 50

499 602

I

88

21 528

3 127 1

71 72 49

118

73 75 44

20

43 8

78

35

98

22 25 21

33

765 2310

177

4199

1633 1827

603

434

228 1404

123

90

324

185 731 144

2131 i

BY COUNTRY

611

118 93 27

73

43 29 28 48 40

48

30 10 36

7651

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 I 418 2381 I 978

130172 117313 12859

50815

60318 58745 1573

2567

11138 6000 5138

1324

1085

1622 450

1172

1303

130172

50815 46400 4415

60318

17883 893 600

3354 3863

157 12

2730 29

1214

65521 7 382 1

J23788 4282 I

21 382 4 048 1 2406 234

8008

22870 23027 17480

100898612 12

7491 99

103026 10 6081

46 7500 505

9 12 115

486 10

108608

18 2280161

510244~ t 8000

129 i 10 3

7023

37051

15327 530 670 292

6874

middot90 5

696 -20 973

3353576

2829

-I 93 313

29 980 755 i

72

257

~I 139

10

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued I n current dollars]

Relative burden i Other public expenditures 1

Armed lorces

I---I--~-~I----Imiddot ----------shyMilitary Gross Popushy Military Foreign Forces i

Ituresexpendmiddot national

product lation expend GNP Public Public economic aid Armed Military itures as per educa- health 24 bull lorces Iexpend-percent capita tlon 3 1 (per itures 01 GNP Received Given thoumiddot per man

sand) (million (million (dolshy (million (million (million (million (thou- popumiddotdollars) dollars) (millions) () lars) dollars) dollars) dollars) dollars) I sands) lalion) I (dollars)

BY COUNTRY~Continued

NATO-Continued Norway Portugal _ Turkey United Kindgom

322 359 573

5545

9 000 5000

11600 103000

38 95

335 553

36 72 49 54

2357 528 346

1863

403 57

321 4450

180 79

139 4779

241

24 47

505

35 183 514 427

9 19 15 8

9200 1 962 1115

12986

NATO Total 105047 1461700 5235 72 2792 68698 39117 313 7 III 6628 13 15849

Warsaw PacL Bulgaria __ Czechoslovakia _ Germany East __ ___ Hungary _____ __

61 100 300

1 360 1 450

340

553200 9100

28400 30800 13800

3402 84

144 171 103

(7-9) 33 48 47 25

1626 1083 1972 1801 1340

38604 367

1093 I 031

580

18281 272 982 792 339

400

100

4783 173 265 196 l37

14 21 18 II 13

12774 1734 5132 7398 2482

Poland__ ____ __ __ _ Romania __ Soviet Union

1950 700

55000

37400 20700

413000

323 197

2380

521158 34 1051

(8-10) 1735

1643 890

33000

1396 600

13900 300

319 223

3470

10 II 15

6113 3139

15850

Other European Albania ___ Austria _ Finland _ _ __ _ Ireland _

3120 76

150 156

27

101900 800

11400 8 000 3 000

838 20 74 47 29

31 1095

13 2 a 9

I 216 400

1551 1706 1 031

3831 70

402 585 110

3443 30 567 344

ll4

263 124

31

803 51

50 39

10

10 26 7 8 3

3885 1490 3 000 4000 2700

Spain _ Sweden_ _ Switzerland _ Yugoslavia _

913 977 365 456

25200 26300 17200 10000

3261 79 61

202

36 37 21 46

773 3322 2798

496

290 1486

577 3ll

403 1 070

429 486

181

82

72 21

305 78 31

239

91 10 5

12

2993 u 12526 11 11774

1908

LATIN AMERICA __ Argentina _ Bolivia _ BraziL_ Chile _ Colombia _

2235 380 17

651 127 98

113557 171l1

786 27353 5670 5638

261 7 236 44

802 92

198

20 22 22 24 22 17

434 725 177 310 614 284

2567 I 346

25 169 205 111

1364 26 3

81 155

96

1410 15 52

319 220 170

1153 8144

18 225 63 55

4 6 4 3 7

1938 2639

944 2893 2016 1782

Cost Ricbull _ _ Cuba bullbull ___ __ _ Dominican Republic_ _ Ecuadoc ___ EI Salvador

300 30 26 10

734 bull 5 000

1169 1475

930

16 76 4 a 57 32

106 a 26 18 11

449 658 295 259 290

33 281

26 35 24

20 60 -14

6 14

15 1

54 28 10

394 18 17 6

52 5 3 2

761 1667 1529 1667

Guatemala _ __ Guyana _ _ HaitL __ Honduras _ Jamaica _

16 2

1500 215 326 621 951

5 a 7

50 25 L9

11 9

21 14 5

299 303

65 245 497

27 8 3

17 22

34 8 4 7

17

24 16 6

15 28

9 1 5

2 1 1 2 1

1778 2000 1 400 1800 2500

Mexico_ Nicaragua __ _ Panama _ __ Paraguay _ Peru ____

184 10 1

10 132

26310 697 826 511

4287

473 19 14 22

128

7 14 1

20 31

557 374 602 229 336

504 16 33 9

151

316 5

16 3

51

210 19 19 23 57

70 i6

13 50

6

2629 1667

769 2640

Trinidad amp Tobago __ Uruguay_ bull Venezuela

3 23

194

748 1589 9110

10 28 97

4 14 21

726 564 941

19 13

396

10 21 78

1 13

38

3 000 1 769 5105

See footnotes at end of table

11

TABLE It-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued (I n current dollars) 1

Military expendshy

itures

Gross national product

Popushylation

Relative burden Other public expenditures

I

I Public

ForeignMilitary GNP Public economic aid S expendshy per I educashyitures as I capita 1 tion Zbull1 I health

Armed forces

I 1Forces Armed 1 Military forces 1 flfer expend-

percent I Received Given 1 taumiddot itures of GNP 1 sand I per man

(million (million I

(dol- (million (million (million (million I (thou- popushy1dollars) dollars) I(millions) () lars)

dollars) dollars) 1 dollars) dollars) I sands) lation) (dollars)

I I

__------_--

FAR EAST Burma Cambodia China Mainland China Republic 01 Indonesia

Japan+ Korea North Korea Republic oL Laos Malaysia

Mongolia Philippines Thailand Vietnam North Vietnam Republic of

SOUTH ASiA Afghanista n Ceylon India NepaL Pakistan

NEAR EAST Cyprus Iran Iraq I srae __ Jordan I

Kuwait I lebanon Saudi Arabia Syrian Arab Republic -

Yemen

United Arab Republic

AFRICA 0shy

Algeria Cameroon Cenlral African Republic Chad Congo (Brazzaville)

Congo (Kinshasa) Dahomey __ I Ethiopia Gabon Ghana _

Guinea __ Ivory Coast Kenya liberia libya

See footnotes at end of table

middot20 116 157

550 613

2155 16 13

1603 5

518

2901 I 6

530

280 I 672 105

63 45 I

383 i 137 I 14 I 666 I

1103 1

100 I 19 I 3

8 1

6 I

44 I 4

41 I 3

44 i

14 I 17 I 15 I 3 I

37 I

575 I 7276 1 5512

2300 3050

62090 1370 1781

43 000 800

15139

29594 1 438

8 020 I 2400 i 4042

575 i

2220 i

1 424 2200 I 1425

550

5740

50130 3365

800 200 270 174

1330 182

1534 200

1 994

669 1242 1330

254 2965

BY COUNTRY--Continued

12338 264 66

806 a 141

1137

43 57 66

F 8 3 101 29

4 000 99

100

101 1 134 305

28 103

8 10180

41 168 32

1 404 I 261 188 I 721

326 I

6000 100 110

7 140

12 359 351 193 174

1[gt 35 16 28

10 239 20 I

479 I 203 157 i 119

175 I

198 168 91

32

6892 161 120

5271 107

1234

35 12 7

37 6

34

90 1 85 I

149

82 I 75

123 I

1324 6

66 1 130

4 118

91 5 6

27 I 86 27 2 I

98 14 66

117 166 183

324 704 296 278

1472 I 274

1085 9

182 133 225

19

5 27 46 57 5 a

28 32

174 96

) 2 5

4111 519 478 250 110

87 34

107 54 3

31 7 I 6 181 232

2708 129 56 15 35 9

22 3 a 24

10 1 5 10 3 a to 34

185 260 43 134 78

200

1622 155 23 7 8

111

17 a 26

242 5

84

33 lfr 2 2

27 15 22

78

711 63 I

417

238 1

69 I 7

15 10 67

38 4 a

102 11 18

21 4 11 12 12

174 312 130 225

1644

37 60 22 7

74

313 I 11 I II 2

123

2

23 29

18 24

403 9 46

283 5

60

412 I 4 1

135 I 28 57

44 8

33 7

8

80

693 59 11 3

bull 4 6

28 I 5 1

1~ I 16

17 10 3

37

11

95 333

314 60 50

139 79

448

1721 30 48

1107 2

534

350 I

132 14 70 48

14 13

-15 11 1

61

1324 117

45 18 22 42

67 18 50 11 87

9 49 61 23 6

50

796

i I I i

s 33 47

167 447 735

1752 70 10

11133 1

15 1

bull 524 1

I 99i I

bull 225 I 992 1

771 55 I

I 7

12 956 69

8

bull 391

449 58 5

1 1 2 I

I 31 2 I

45 i 1 1

15 i

4 3-I 4

I 8 I

2 I 31 20 I 34 6

28

5 23

42

3 4 i 2 i I I 4 I

I 11 2 i 8

II 28 26 I

13 4

12 1

12 1

2 I

12 I 2 I 4 I 1 I 1

4 1 4 I

1678 775 774

2419 805 696

4584 1 534

379 358

1 895

606 2468

940 1 230

834

1230 229

1300 1415

333 989

2921 6000 2356 3043 8727 1 909

9 000 3750 6839 1986 1750

1703

2457 1724 3800 3 000 8 000 3 000

1419 2 000

911 3000 2933

2800 4250 5 000

750 4625

12

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968-Continued [In current dollarsjt

I Relative burden I Other public expenditures I Armed forcesI

IMilitary ForeignGross expend- national Popu- Military GNP Public economic aid S Forces MilitaryIArmeditures product lation expend- per educa- Public expendshy

tion 23 (perhealth 2 ituresitures as capita forces thoupercent per manReceived Given

of GNP sand (million (million (million (million (million (thoushy(dolshy (million popushydollars) dollars) (millions) lars) dollars) dollars) dollars) dollars) sands) lation)

I(dollars)()

I

BY COUNTRY -Continued

AFRICA-Continued Malagasy Republic MalawL __ MaIL __ Mauritania Morocco_

Niger Nigeria____ Rhodesia Southern__ __ _ Senegal ____ Sierra leone __ __

Somali Republic __ __ __ South Africa Republic of Sudan __ __ Tanzania Togo ____

Tunisia Ugandabull Upper Volta~ __ Zambia ______

OCEANIA ____ Australia __ ___ New Zealand

13 780 I 247 5 264 8 172

76 2981

342 91 3

6000 21 1138 15 827

340

8 170 356 14020

74 1560 13 943 I 121

183 213 I 14 471048 16 994 81 -5 5 I257 20 1325 41

1054 31500 148 26600 120

9~ I 4900 I 28 I

70 43 48 11

146

38 535 49 38 25

27 192 148

Oeveloped country or region (Country without asterisk is developing) All countries in region are developing Rough ACDA estimate

None or negligible I For most countries conversion into US dollars Is at official par value exchange

rates as rounded by AID For all Communist and several developing countries esllmated purchaSing power panties are used (See Conversion Rates page 35)

Due to dilferences in concepls coverage and reliability data on public education and health expenditures do not permit accurate comparisons between countries or in some cases between years for the same country

3 Public expendHures on education in 1968 are ACDA estimates based primarily on dala for 1967 or earlier (See Educalion page 34)

Informallon on educational expenditures which are made outside of governmentbudgets is not available on a worldwide baSis The rellive importance of these expenditures vanes sharply from co~nlry to country In the United States private expe~dltures In 1968 were $118 billion or 20 of the total Private expendilures conslltut~d the follOWing percentages of total national expenditures In 1967 (or Ih indicated year) according to UNESCO estimates

EI Salvador ______ Sudan

Percent Percent Argenlina (1966) __ __ Australia ____ __ Canada ____ __ Chile (1966) bull China Republic of ~_ poundcuador bull __ __ __ __

51 38 23 28 29 34

Israel (I966)~ __ Japan _____ Jordan __Kenya __ _ Malawi _ __ Philippines_

26 20 14 70 15 24

23 __ ___ __ 27 Bhiopia (1966) 47 Venezuela __ __ _______ __ 27Greece ________ __ 39 Vietnam Republic of (1965) __ 58Guatemala _______ __ __ 25 Zambia (1966) __ __ 73India __ 44

In Communist countrie~ extramiddotbudgetary expenditures are also significan For example according 10 offiCial data education expenditures by state cooperative and trade union enterprises and collective farms in the Soviet Union make up about 13 percent of the total parental payments to childrens institutions and schools mayconstitute another 6 percent

17 III 49 15 44 4 58 II 4 26

19 55 10 4 20 47 154 4 8 25 204 106 40 124

9

I

90 I 5 29 15 112 132 [ 83 108 18 230 42 I 13 -3 18 220 29 14 48 9 137 9 3 111

47 62 3 I 26 I

25 731 450 195 47 106 69 22 I 29 14 78 30 13 34 14 120 4 2 13

13 16

224 122

i 57 I

15

I 15

14 I 88 20

lO 1 9 50 i 6 I 23 15 326

1

I 20 I e 18 51

I

33 2131 1 1303 I 921 157 36 18

2211 1 781

i

i 1132

171 697 224 i

157

I 4 I I

4 I

62

I 70 I 5 5 i

2

8 38 24 4 1

2 I 2 I 3 i

I I

97 84 shy13 I

4

3250 1000 1250 8000 1226

3000 1300 4200 3000 1500

1000 9368 3083 3250 3000

609 2667 2500 6667

10866 11524 6615

Public expenditures on health in 1968 are based in part on data for earlier years(See Health page 35)

As 10 educational expenditures Ihe portion of tolal health expenditures which is exlramiddotbudgetary varies greatly from country to country Scattered information suggests that on average Ihe private portion of health expenditures may be higherthan the private portion of education expenditures In the United States in 1968 private health expenditures amounted to $352 billion or 62 percent of total health expenditures

In Communist countries extramiddotbudgetary health expenditures are made by state cooperative and trade unum enterprises anj collective farms as well as households In the Soviet Union for example they constitute about 20 percent of total health expenditures according to official sources

Economic aid given by Communist countries to nonmiddotCommunist counlries is included in the world total of aid received It is not distributed by individual recipientcounlries or regions however as accurate data on such distribution are no available (See Foreign Economic Aid page 34_)

Military expenditures and GNP are not fully comparable due to the use of different dollar conversion rates lor the two variables in the Soviet Union (see footnote 9)Using the more valid ralios shown in parentheses for the Soviet Union and Ihe Warsaw Pact total the ratio for the world is eslimated to be 6-7 percent and for Europe 5-6 percent

1 Ineludes West Berlin Includes paramililary as well as regular forces The implied relationship between dollar amounts of Soviet GNP and military

expenditures (or GNP and public expenditures on educalion and health) is not valid due 10 the use of di~erent types of conversion rates lor GNP and particular sectors It is estimated Ihat the actual ratio of military expenditures to GNP would fall somemiddot where within the range indicated in parentheses the lower part of the range reflecting a comparison of military expenditures and GNP in faclormiddoteost ruble values and the upper estimate representing dollar values converted on a comparable basis (See Conversion Rates page 35)

10 Since either or both military expenditures and GNP estimates are approximations the resulting ratio should be viewed with particular caution

II For Sweden SWitzerland and Israel the high rate of military expendilures per man rellects small standing forces with a capability for extremely rapid mobilization of large reserve forces

13

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 14: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued I n current dollars]

Relative burden i Other public expenditures 1

Armed lorces

I---I--~-~I----Imiddot ----------shyMilitary Gross Popushy Military Foreign Forces i

Ituresexpendmiddot national

product lation expend GNP Public Public economic aid Armed Military itures as per educa- health 24 bull lorces Iexpend-percent capita tlon 3 1 (per itures 01 GNP Received Given thoumiddot per man

sand) (million (million (dolshy (million (million (million (million (thou- popumiddotdollars) dollars) (millions) () lars) dollars) dollars) dollars) dollars) I sands) lalion) I (dollars)

BY COUNTRY~Continued

NATO-Continued Norway Portugal _ Turkey United Kindgom

322 359 573

5545

9 000 5000

11600 103000

38 95

335 553

36 72 49 54

2357 528 346

1863

403 57

321 4450

180 79

139 4779

241

24 47

505

35 183 514 427

9 19 15 8

9200 1 962 1115

12986

NATO Total 105047 1461700 5235 72 2792 68698 39117 313 7 III 6628 13 15849

Warsaw PacL Bulgaria __ Czechoslovakia _ Germany East __ ___ Hungary _____ __

61 100 300

1 360 1 450

340

553200 9100

28400 30800 13800

3402 84

144 171 103

(7-9) 33 48 47 25

1626 1083 1972 1801 1340

38604 367

1093 I 031

580

18281 272 982 792 339

400

100

4783 173 265 196 l37

14 21 18 II 13

12774 1734 5132 7398 2482

Poland__ ____ __ __ _ Romania __ Soviet Union

1950 700

55000

37400 20700

413000

323 197

2380

521158 34 1051

(8-10) 1735

1643 890

33000

1396 600

13900 300

319 223

3470

10 II 15

6113 3139

15850

Other European Albania ___ Austria _ Finland _ _ __ _ Ireland _

3120 76

150 156

27

101900 800

11400 8 000 3 000

838 20 74 47 29

31 1095

13 2 a 9

I 216 400

1551 1706 1 031

3831 70

402 585 110

3443 30 567 344

ll4

263 124

31

803 51

50 39

10

10 26 7 8 3

3885 1490 3 000 4000 2700

Spain _ Sweden_ _ Switzerland _ Yugoslavia _

913 977 365 456

25200 26300 17200 10000

3261 79 61

202

36 37 21 46

773 3322 2798

496

290 1486

577 3ll

403 1 070

429 486

181

82

72 21

305 78 31

239

91 10 5

12

2993 u 12526 11 11774

1908

LATIN AMERICA __ Argentina _ Bolivia _ BraziL_ Chile _ Colombia _

2235 380 17

651 127 98

113557 171l1

786 27353 5670 5638

261 7 236 44

802 92

198

20 22 22 24 22 17

434 725 177 310 614 284

2567 I 346

25 169 205 111

1364 26 3

81 155

96

1410 15 52

319 220 170

1153 8144

18 225 63 55

4 6 4 3 7

1938 2639

944 2893 2016 1782

Cost Ricbull _ _ Cuba bullbull ___ __ _ Dominican Republic_ _ Ecuadoc ___ EI Salvador

300 30 26 10

734 bull 5 000

1169 1475

930

16 76 4 a 57 32

106 a 26 18 11

449 658 295 259 290

33 281

26 35 24

20 60 -14

6 14

15 1

54 28 10

394 18 17 6

52 5 3 2

761 1667 1529 1667

Guatemala _ __ Guyana _ _ HaitL __ Honduras _ Jamaica _

16 2

1500 215 326 621 951

5 a 7

50 25 L9

11 9

21 14 5

299 303

65 245 497

27 8 3

17 22

34 8 4 7

17

24 16 6

15 28

9 1 5

2 1 1 2 1

1778 2000 1 400 1800 2500

Mexico_ Nicaragua __ _ Panama _ __ Paraguay _ Peru ____

184 10 1

10 132

26310 697 826 511

4287

473 19 14 22

128

7 14 1

20 31

557 374 602 229 336

504 16 33 9

151

316 5

16 3

51

210 19 19 23 57

70 i6

13 50

6

2629 1667

769 2640

Trinidad amp Tobago __ Uruguay_ bull Venezuela

3 23

194

748 1589 9110

10 28 97

4 14 21

726 564 941

19 13

396

10 21 78

1 13

38

3 000 1 769 5105

See footnotes at end of table

11

TABLE It-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued (I n current dollars) 1

Military expendshy

itures

Gross national product

Popushylation

Relative burden Other public expenditures

I

I Public

ForeignMilitary GNP Public economic aid S expendshy per I educashyitures as I capita 1 tion Zbull1 I health

Armed forces

I 1Forces Armed 1 Military forces 1 flfer expend-

percent I Received Given 1 taumiddot itures of GNP 1 sand I per man

(million (million I

(dol- (million (million (million (million I (thou- popushy1dollars) dollars) I(millions) () lars)

dollars) dollars) 1 dollars) dollars) I sands) lation) (dollars)

I I

__------_--

FAR EAST Burma Cambodia China Mainland China Republic 01 Indonesia

Japan+ Korea North Korea Republic oL Laos Malaysia

Mongolia Philippines Thailand Vietnam North Vietnam Republic of

SOUTH ASiA Afghanista n Ceylon India NepaL Pakistan

NEAR EAST Cyprus Iran Iraq I srae __ Jordan I

Kuwait I lebanon Saudi Arabia Syrian Arab Republic -

Yemen

United Arab Republic

AFRICA 0shy

Algeria Cameroon Cenlral African Republic Chad Congo (Brazzaville)

Congo (Kinshasa) Dahomey __ I Ethiopia Gabon Ghana _

Guinea __ Ivory Coast Kenya liberia libya

See footnotes at end of table

middot20 116 157

550 613

2155 16 13

1603 5

518

2901 I 6

530

280 I 672 105

63 45 I

383 i 137 I 14 I 666 I

1103 1

100 I 19 I 3

8 1

6 I

44 I 4

41 I 3

44 i

14 I 17 I 15 I 3 I

37 I

575 I 7276 1 5512

2300 3050

62090 1370 1781

43 000 800

15139

29594 1 438

8 020 I 2400 i 4042

575 i

2220 i

1 424 2200 I 1425

550

5740

50130 3365

800 200 270 174

1330 182

1534 200

1 994

669 1242 1330

254 2965

BY COUNTRY--Continued

12338 264 66

806 a 141

1137

43 57 66

F 8 3 101 29

4 000 99

100

101 1 134 305

28 103

8 10180

41 168 32

1 404 I 261 188 I 721

326 I

6000 100 110

7 140

12 359 351 193 174

1[gt 35 16 28

10 239 20 I

479 I 203 157 i 119

175 I

198 168 91

32

6892 161 120

5271 107

1234

35 12 7

37 6

34

90 1 85 I

149

82 I 75

123 I

1324 6

66 1 130

4 118

91 5 6

27 I 86 27 2 I

98 14 66

117 166 183

324 704 296 278

1472 I 274

1085 9

182 133 225

19

5 27 46 57 5 a

28 32

174 96

) 2 5

4111 519 478 250 110

87 34

107 54 3

31 7 I 6 181 232

2708 129 56 15 35 9

22 3 a 24

10 1 5 10 3 a to 34

185 260 43 134 78

200

1622 155 23 7 8

111

17 a 26

242 5

84

33 lfr 2 2

27 15 22

78

711 63 I

417

238 1

69 I 7

15 10 67

38 4 a

102 11 18

21 4 11 12 12

174 312 130 225

1644

37 60 22 7

74

313 I 11 I II 2

123

2

23 29

18 24

403 9 46

283 5

60

412 I 4 1

135 I 28 57

44 8

33 7

8

80

693 59 11 3

bull 4 6

28 I 5 1

1~ I 16

17 10 3

37

11

95 333

314 60 50

139 79

448

1721 30 48

1107 2

534

350 I

132 14 70 48

14 13

-15 11 1

61

1324 117

45 18 22 42

67 18 50 11 87

9 49 61 23 6

50

796

i I I i

s 33 47

167 447 735

1752 70 10

11133 1

15 1

bull 524 1

I 99i I

bull 225 I 992 1

771 55 I

I 7

12 956 69

8

bull 391

449 58 5

1 1 2 I

I 31 2 I

45 i 1 1

15 i

4 3-I 4

I 8 I

2 I 31 20 I 34 6

28

5 23

42

3 4 i 2 i I I 4 I

I 11 2 i 8

II 28 26 I

13 4

12 1

12 1

2 I

12 I 2 I 4 I 1 I 1

4 1 4 I

1678 775 774

2419 805 696

4584 1 534

379 358

1 895

606 2468

940 1 230

834

1230 229

1300 1415

333 989

2921 6000 2356 3043 8727 1 909

9 000 3750 6839 1986 1750

1703

2457 1724 3800 3 000 8 000 3 000

1419 2 000

911 3000 2933

2800 4250 5 000

750 4625

12

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968-Continued [In current dollarsjt

I Relative burden I Other public expenditures I Armed forcesI

IMilitary ForeignGross expend- national Popu- Military GNP Public economic aid S Forces MilitaryIArmeditures product lation expend- per educa- Public expendshy

tion 23 (perhealth 2 ituresitures as capita forces thoupercent per manReceived Given

of GNP sand (million (million (million (million (million (thoushy(dolshy (million popushydollars) dollars) (millions) lars) dollars) dollars) dollars) dollars) sands) lation)

I(dollars)()

I

BY COUNTRY -Continued

AFRICA-Continued Malagasy Republic MalawL __ MaIL __ Mauritania Morocco_

Niger Nigeria____ Rhodesia Southern__ __ _ Senegal ____ Sierra leone __ __

Somali Republic __ __ __ South Africa Republic of Sudan __ __ Tanzania Togo ____

Tunisia Ugandabull Upper Volta~ __ Zambia ______

OCEANIA ____ Australia __ ___ New Zealand

13 780 I 247 5 264 8 172

76 2981

342 91 3

6000 21 1138 15 827

340

8 170 356 14020

74 1560 13 943 I 121

183 213 I 14 471048 16 994 81 -5 5 I257 20 1325 41

1054 31500 148 26600 120

9~ I 4900 I 28 I

70 43 48 11

146

38 535 49 38 25

27 192 148

Oeveloped country or region (Country without asterisk is developing) All countries in region are developing Rough ACDA estimate

None or negligible I For most countries conversion into US dollars Is at official par value exchange

rates as rounded by AID For all Communist and several developing countries esllmated purchaSing power panties are used (See Conversion Rates page 35)

Due to dilferences in concepls coverage and reliability data on public education and health expenditures do not permit accurate comparisons between countries or in some cases between years for the same country

3 Public expendHures on education in 1968 are ACDA estimates based primarily on dala for 1967 or earlier (See Educalion page 34)

Informallon on educational expenditures which are made outside of governmentbudgets is not available on a worldwide baSis The rellive importance of these expenditures vanes sharply from co~nlry to country In the United States private expe~dltures In 1968 were $118 billion or 20 of the total Private expendilures conslltut~d the follOWing percentages of total national expenditures In 1967 (or Ih indicated year) according to UNESCO estimates

EI Salvador ______ Sudan

Percent Percent Argenlina (1966) __ __ Australia ____ __ Canada ____ __ Chile (1966) bull China Republic of ~_ poundcuador bull __ __ __ __

51 38 23 28 29 34

Israel (I966)~ __ Japan _____ Jordan __Kenya __ _ Malawi _ __ Philippines_

26 20 14 70 15 24

23 __ ___ __ 27 Bhiopia (1966) 47 Venezuela __ __ _______ __ 27Greece ________ __ 39 Vietnam Republic of (1965) __ 58Guatemala _______ __ __ 25 Zambia (1966) __ __ 73India __ 44

In Communist countrie~ extramiddotbudgetary expenditures are also significan For example according 10 offiCial data education expenditures by state cooperative and trade union enterprises and collective farms in the Soviet Union make up about 13 percent of the total parental payments to childrens institutions and schools mayconstitute another 6 percent

17 III 49 15 44 4 58 II 4 26

19 55 10 4 20 47 154 4 8 25 204 106 40 124

9

I

90 I 5 29 15 112 132 [ 83 108 18 230 42 I 13 -3 18 220 29 14 48 9 137 9 3 111

47 62 3 I 26 I

25 731 450 195 47 106 69 22 I 29 14 78 30 13 34 14 120 4 2 13

13 16

224 122

i 57 I

15

I 15

14 I 88 20

lO 1 9 50 i 6 I 23 15 326

1

I 20 I e 18 51

I

33 2131 1 1303 I 921 157 36 18

2211 1 781

i

i 1132

171 697 224 i

157

I 4 I I

4 I

62

I 70 I 5 5 i

2

8 38 24 4 1

2 I 2 I 3 i

I I

97 84 shy13 I

4

3250 1000 1250 8000 1226

3000 1300 4200 3000 1500

1000 9368 3083 3250 3000

609 2667 2500 6667

10866 11524 6615

Public expenditures on health in 1968 are based in part on data for earlier years(See Health page 35)

As 10 educational expenditures Ihe portion of tolal health expenditures which is exlramiddotbudgetary varies greatly from country to country Scattered information suggests that on average Ihe private portion of health expenditures may be higherthan the private portion of education expenditures In the United States in 1968 private health expenditures amounted to $352 billion or 62 percent of total health expenditures

In Communist countries extramiddotbudgetary health expenditures are made by state cooperative and trade unum enterprises anj collective farms as well as households In the Soviet Union for example they constitute about 20 percent of total health expenditures according to official sources

Economic aid given by Communist countries to nonmiddotCommunist counlries is included in the world total of aid received It is not distributed by individual recipientcounlries or regions however as accurate data on such distribution are no available (See Foreign Economic Aid page 34_)

Military expenditures and GNP are not fully comparable due to the use of different dollar conversion rates lor the two variables in the Soviet Union (see footnote 9)Using the more valid ralios shown in parentheses for the Soviet Union and Ihe Warsaw Pact total the ratio for the world is eslimated to be 6-7 percent and for Europe 5-6 percent

1 Ineludes West Berlin Includes paramililary as well as regular forces The implied relationship between dollar amounts of Soviet GNP and military

expenditures (or GNP and public expenditures on educalion and health) is not valid due 10 the use of di~erent types of conversion rates lor GNP and particular sectors It is estimated Ihat the actual ratio of military expenditures to GNP would fall somemiddot where within the range indicated in parentheses the lower part of the range reflecting a comparison of military expenditures and GNP in faclormiddoteost ruble values and the upper estimate representing dollar values converted on a comparable basis (See Conversion Rates page 35)

10 Since either or both military expenditures and GNP estimates are approximations the resulting ratio should be viewed with particular caution

II For Sweden SWitzerland and Israel the high rate of military expendilures per man rellects small standing forces with a capability for extremely rapid mobilization of large reserve forces

13

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 15: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

TABLE It-MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued (I n current dollars) 1

Military expendshy

itures

Gross national product

Popushylation

Relative burden Other public expenditures

I

I Public

ForeignMilitary GNP Public economic aid S expendshy per I educashyitures as I capita 1 tion Zbull1 I health

Armed forces

I 1Forces Armed 1 Military forces 1 flfer expend-

percent I Received Given 1 taumiddot itures of GNP 1 sand I per man

(million (million I

(dol- (million (million (million (million I (thou- popushy1dollars) dollars) I(millions) () lars)

dollars) dollars) 1 dollars) dollars) I sands) lation) (dollars)

I I

__------_--

FAR EAST Burma Cambodia China Mainland China Republic 01 Indonesia

Japan+ Korea North Korea Republic oL Laos Malaysia

Mongolia Philippines Thailand Vietnam North Vietnam Republic of

SOUTH ASiA Afghanista n Ceylon India NepaL Pakistan

NEAR EAST Cyprus Iran Iraq I srae __ Jordan I

Kuwait I lebanon Saudi Arabia Syrian Arab Republic -

Yemen

United Arab Republic

AFRICA 0shy

Algeria Cameroon Cenlral African Republic Chad Congo (Brazzaville)

Congo (Kinshasa) Dahomey __ I Ethiopia Gabon Ghana _

Guinea __ Ivory Coast Kenya liberia libya

See footnotes at end of table

middot20 116 157

550 613

2155 16 13

1603 5

518

2901 I 6

530

280 I 672 105

63 45 I

383 i 137 I 14 I 666 I

1103 1

100 I 19 I 3

8 1

6 I

44 I 4

41 I 3

44 i

14 I 17 I 15 I 3 I

37 I

575 I 7276 1 5512

2300 3050

62090 1370 1781

43 000 800

15139

29594 1 438

8 020 I 2400 i 4042

575 i

2220 i

1 424 2200 I 1425

550

5740

50130 3365

800 200 270 174

1330 182

1534 200

1 994

669 1242 1330

254 2965

BY COUNTRY--Continued

12338 264 66

806 a 141

1137

43 57 66

F 8 3 101 29

4 000 99

100

101 1 134 305

28 103

8 10180

41 168 32

1 404 I 261 188 I 721

326 I

6000 100 110

7 140

12 359 351 193 174

1[gt 35 16 28

10 239 20 I

479 I 203 157 i 119

175 I

198 168 91

32

6892 161 120

5271 107

1234

35 12 7

37 6

34

90 1 85 I

149

82 I 75

123 I

1324 6

66 1 130

4 118

91 5 6

27 I 86 27 2 I

98 14 66

117 166 183

324 704 296 278

1472 I 274

1085 9

182 133 225

19

5 27 46 57 5 a

28 32

174 96

) 2 5

4111 519 478 250 110

87 34

107 54 3

31 7 I 6 181 232

2708 129 56 15 35 9

22 3 a 24

10 1 5 10 3 a to 34

185 260 43 134 78

200

1622 155 23 7 8

111

17 a 26

242 5

84

33 lfr 2 2

27 15 22

78

711 63 I

417

238 1

69 I 7

15 10 67

38 4 a

102 11 18

21 4 11 12 12

174 312 130 225

1644

37 60 22 7

74

313 I 11 I II 2

123

2

23 29

18 24

403 9 46

283 5

60

412 I 4 1

135 I 28 57

44 8

33 7

8

80

693 59 11 3

bull 4 6

28 I 5 1

1~ I 16

17 10 3

37

11

95 333

314 60 50

139 79

448

1721 30 48

1107 2

534

350 I

132 14 70 48

14 13

-15 11 1

61

1324 117

45 18 22 42

67 18 50 11 87

9 49 61 23 6

50

796

i I I i

s 33 47

167 447 735

1752 70 10

11133 1

15 1

bull 524 1

I 99i I

bull 225 I 992 1

771 55 I

I 7

12 956 69

8

bull 391

449 58 5

1 1 2 I

I 31 2 I

45 i 1 1

15 i

4 3-I 4

I 8 I

2 I 31 20 I 34 6

28

5 23

42

3 4 i 2 i I I 4 I

I 11 2 i 8

II 28 26 I

13 4

12 1

12 1

2 I

12 I 2 I 4 I 1 I 1

4 1 4 I

1678 775 774

2419 805 696

4584 1 534

379 358

1 895

606 2468

940 1 230

834

1230 229

1300 1415

333 989

2921 6000 2356 3043 8727 1 909

9 000 3750 6839 1986 1750

1703

2457 1724 3800 3 000 8 000 3 000

1419 2 000

911 3000 2933

2800 4250 5 000

750 4625

12

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968-Continued [In current dollarsjt

I Relative burden I Other public expenditures I Armed forcesI

IMilitary ForeignGross expend- national Popu- Military GNP Public economic aid S Forces MilitaryIArmeditures product lation expend- per educa- Public expendshy

tion 23 (perhealth 2 ituresitures as capita forces thoupercent per manReceived Given

of GNP sand (million (million (million (million (million (thoushy(dolshy (million popushydollars) dollars) (millions) lars) dollars) dollars) dollars) dollars) sands) lation)

I(dollars)()

I

BY COUNTRY -Continued

AFRICA-Continued Malagasy Republic MalawL __ MaIL __ Mauritania Morocco_

Niger Nigeria____ Rhodesia Southern__ __ _ Senegal ____ Sierra leone __ __

Somali Republic __ __ __ South Africa Republic of Sudan __ __ Tanzania Togo ____

Tunisia Ugandabull Upper Volta~ __ Zambia ______

OCEANIA ____ Australia __ ___ New Zealand

13 780 I 247 5 264 8 172

76 2981

342 91 3

6000 21 1138 15 827

340

8 170 356 14020

74 1560 13 943 I 121

183 213 I 14 471048 16 994 81 -5 5 I257 20 1325 41

1054 31500 148 26600 120

9~ I 4900 I 28 I

70 43 48 11

146

38 535 49 38 25

27 192 148

Oeveloped country or region (Country without asterisk is developing) All countries in region are developing Rough ACDA estimate

None or negligible I For most countries conversion into US dollars Is at official par value exchange

rates as rounded by AID For all Communist and several developing countries esllmated purchaSing power panties are used (See Conversion Rates page 35)

Due to dilferences in concepls coverage and reliability data on public education and health expenditures do not permit accurate comparisons between countries or in some cases between years for the same country

3 Public expendHures on education in 1968 are ACDA estimates based primarily on dala for 1967 or earlier (See Educalion page 34)

Informallon on educational expenditures which are made outside of governmentbudgets is not available on a worldwide baSis The rellive importance of these expenditures vanes sharply from co~nlry to country In the United States private expe~dltures In 1968 were $118 billion or 20 of the total Private expendilures conslltut~d the follOWing percentages of total national expenditures In 1967 (or Ih indicated year) according to UNESCO estimates

EI Salvador ______ Sudan

Percent Percent Argenlina (1966) __ __ Australia ____ __ Canada ____ __ Chile (1966) bull China Republic of ~_ poundcuador bull __ __ __ __

51 38 23 28 29 34

Israel (I966)~ __ Japan _____ Jordan __Kenya __ _ Malawi _ __ Philippines_

26 20 14 70 15 24

23 __ ___ __ 27 Bhiopia (1966) 47 Venezuela __ __ _______ __ 27Greece ________ __ 39 Vietnam Republic of (1965) __ 58Guatemala _______ __ __ 25 Zambia (1966) __ __ 73India __ 44

In Communist countrie~ extramiddotbudgetary expenditures are also significan For example according 10 offiCial data education expenditures by state cooperative and trade union enterprises and collective farms in the Soviet Union make up about 13 percent of the total parental payments to childrens institutions and schools mayconstitute another 6 percent

17 III 49 15 44 4 58 II 4 26

19 55 10 4 20 47 154 4 8 25 204 106 40 124

9

I

90 I 5 29 15 112 132 [ 83 108 18 230 42 I 13 -3 18 220 29 14 48 9 137 9 3 111

47 62 3 I 26 I

25 731 450 195 47 106 69 22 I 29 14 78 30 13 34 14 120 4 2 13

13 16

224 122

i 57 I

15

I 15

14 I 88 20

lO 1 9 50 i 6 I 23 15 326

1

I 20 I e 18 51

I

33 2131 1 1303 I 921 157 36 18

2211 1 781

i

i 1132

171 697 224 i

157

I 4 I I

4 I

62

I 70 I 5 5 i

2

8 38 24 4 1

2 I 2 I 3 i

I I

97 84 shy13 I

4

3250 1000 1250 8000 1226

3000 1300 4200 3000 1500

1000 9368 3083 3250 3000

609 2667 2500 6667

10866 11524 6615

Public expenditures on health in 1968 are based in part on data for earlier years(See Health page 35)

As 10 educational expenditures Ihe portion of tolal health expenditures which is exlramiddotbudgetary varies greatly from country to country Scattered information suggests that on average Ihe private portion of health expenditures may be higherthan the private portion of education expenditures In the United States in 1968 private health expenditures amounted to $352 billion or 62 percent of total health expenditures

In Communist countries extramiddotbudgetary health expenditures are made by state cooperative and trade unum enterprises anj collective farms as well as households In the Soviet Union for example they constitute about 20 percent of total health expenditures according to official sources

Economic aid given by Communist countries to nonmiddotCommunist counlries is included in the world total of aid received It is not distributed by individual recipientcounlries or regions however as accurate data on such distribution are no available (See Foreign Economic Aid page 34_)

Military expenditures and GNP are not fully comparable due to the use of different dollar conversion rates lor the two variables in the Soviet Union (see footnote 9)Using the more valid ralios shown in parentheses for the Soviet Union and Ihe Warsaw Pact total the ratio for the world is eslimated to be 6-7 percent and for Europe 5-6 percent

1 Ineludes West Berlin Includes paramililary as well as regular forces The implied relationship between dollar amounts of Soviet GNP and military

expenditures (or GNP and public expenditures on educalion and health) is not valid due 10 the use of di~erent types of conversion rates lor GNP and particular sectors It is estimated Ihat the actual ratio of military expenditures to GNP would fall somemiddot where within the range indicated in parentheses the lower part of the range reflecting a comparison of military expenditures and GNP in faclormiddoteost ruble values and the upper estimate representing dollar values converted on a comparable basis (See Conversion Rates page 35)

10 Since either or both military expenditures and GNP estimates are approximations the resulting ratio should be viewed with particular caution

II For Sweden SWitzerland and Israel the high rate of military expendilures per man rellects small standing forces with a capability for extremely rapid mobilization of large reserve forces

13

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 16: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

TABLE II-MILITARY EXPENDITURES AND RELATED DATA 1968-Continued [In current dollarsjt

I Relative burden I Other public expenditures I Armed forcesI

IMilitary ForeignGross expend- national Popu- Military GNP Public economic aid S Forces MilitaryIArmeditures product lation expend- per educa- Public expendshy

tion 23 (perhealth 2 ituresitures as capita forces thoupercent per manReceived Given

of GNP sand (million (million (million (million (million (thoushy(dolshy (million popushydollars) dollars) (millions) lars) dollars) dollars) dollars) dollars) sands) lation)

I(dollars)()

I

BY COUNTRY -Continued

AFRICA-Continued Malagasy Republic MalawL __ MaIL __ Mauritania Morocco_

Niger Nigeria____ Rhodesia Southern__ __ _ Senegal ____ Sierra leone __ __

Somali Republic __ __ __ South Africa Republic of Sudan __ __ Tanzania Togo ____

Tunisia Ugandabull Upper Volta~ __ Zambia ______

OCEANIA ____ Australia __ ___ New Zealand

13 780 I 247 5 264 8 172

76 2981

342 91 3

6000 21 1138 15 827

340

8 170 356 14020

74 1560 13 943 I 121

183 213 I 14 471048 16 994 81 -5 5 I257 20 1325 41

1054 31500 148 26600 120

9~ I 4900 I 28 I

70 43 48 11

146

38 535 49 38 25

27 192 148

Oeveloped country or region (Country without asterisk is developing) All countries in region are developing Rough ACDA estimate

None or negligible I For most countries conversion into US dollars Is at official par value exchange

rates as rounded by AID For all Communist and several developing countries esllmated purchaSing power panties are used (See Conversion Rates page 35)

Due to dilferences in concepls coverage and reliability data on public education and health expenditures do not permit accurate comparisons between countries or in some cases between years for the same country

3 Public expendHures on education in 1968 are ACDA estimates based primarily on dala for 1967 or earlier (See Educalion page 34)

Informallon on educational expenditures which are made outside of governmentbudgets is not available on a worldwide baSis The rellive importance of these expenditures vanes sharply from co~nlry to country In the United States private expe~dltures In 1968 were $118 billion or 20 of the total Private expendilures conslltut~d the follOWing percentages of total national expenditures In 1967 (or Ih indicated year) according to UNESCO estimates

EI Salvador ______ Sudan

Percent Percent Argenlina (1966) __ __ Australia ____ __ Canada ____ __ Chile (1966) bull China Republic of ~_ poundcuador bull __ __ __ __

51 38 23 28 29 34

Israel (I966)~ __ Japan _____ Jordan __Kenya __ _ Malawi _ __ Philippines_

26 20 14 70 15 24

23 __ ___ __ 27 Bhiopia (1966) 47 Venezuela __ __ _______ __ 27Greece ________ __ 39 Vietnam Republic of (1965) __ 58Guatemala _______ __ __ 25 Zambia (1966) __ __ 73India __ 44

In Communist countrie~ extramiddotbudgetary expenditures are also significan For example according 10 offiCial data education expenditures by state cooperative and trade union enterprises and collective farms in the Soviet Union make up about 13 percent of the total parental payments to childrens institutions and schools mayconstitute another 6 percent

17 III 49 15 44 4 58 II 4 26

19 55 10 4 20 47 154 4 8 25 204 106 40 124

9

I

90 I 5 29 15 112 132 [ 83 108 18 230 42 I 13 -3 18 220 29 14 48 9 137 9 3 111

47 62 3 I 26 I

25 731 450 195 47 106 69 22 I 29 14 78 30 13 34 14 120 4 2 13

13 16

224 122

i 57 I

15

I 15

14 I 88 20

lO 1 9 50 i 6 I 23 15 326

1

I 20 I e 18 51

I

33 2131 1 1303 I 921 157 36 18

2211 1 781

i

i 1132

171 697 224 i

157

I 4 I I

4 I

62

I 70 I 5 5 i

2

8 38 24 4 1

2 I 2 I 3 i

I I

97 84 shy13 I

4

3250 1000 1250 8000 1226

3000 1300 4200 3000 1500

1000 9368 3083 3250 3000

609 2667 2500 6667

10866 11524 6615

Public expenditures on health in 1968 are based in part on data for earlier years(See Health page 35)

As 10 educational expenditures Ihe portion of tolal health expenditures which is exlramiddotbudgetary varies greatly from country to country Scattered information suggests that on average Ihe private portion of health expenditures may be higherthan the private portion of education expenditures In the United States in 1968 private health expenditures amounted to $352 billion or 62 percent of total health expenditures

In Communist countries extramiddotbudgetary health expenditures are made by state cooperative and trade unum enterprises anj collective farms as well as households In the Soviet Union for example they constitute about 20 percent of total health expenditures according to official sources

Economic aid given by Communist countries to nonmiddotCommunist counlries is included in the world total of aid received It is not distributed by individual recipientcounlries or regions however as accurate data on such distribution are no available (See Foreign Economic Aid page 34_)

Military expenditures and GNP are not fully comparable due to the use of different dollar conversion rates lor the two variables in the Soviet Union (see footnote 9)Using the more valid ralios shown in parentheses for the Soviet Union and Ihe Warsaw Pact total the ratio for the world is eslimated to be 6-7 percent and for Europe 5-6 percent

1 Ineludes West Berlin Includes paramililary as well as regular forces The implied relationship between dollar amounts of Soviet GNP and military

expenditures (or GNP and public expenditures on educalion and health) is not valid due 10 the use of di~erent types of conversion rates lor GNP and particular sectors It is estimated Ihat the actual ratio of military expenditures to GNP would fall somemiddot where within the range indicated in parentheses the lower part of the range reflecting a comparison of military expenditures and GNP in faclormiddoteost ruble values and the upper estimate representing dollar values converted on a comparable basis (See Conversion Rates page 35)

10 Since either or both military expenditures and GNP estimates are approximations the resulting ratio should be viewed with particular caution

II For Sweden SWitzerland and Israel the high rate of military expendilures per man rellects small standing forces with a capability for extremely rapid mobilization of large reserve forces

13

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 17: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

-----------

----------

TABLE II I-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968

fin current dollars per capital

Military Gross Public Public Foreignexpendishy national education health economic

tures product expendlshy expend 1shy aid given tures tures

SUMMARY

WORLD__ bull Developed __ _ __ Developing_ bullbullbull

NORTH AMERICA _ bullbull _ __ __

EUROPEbull _ Developed bullbull ___ Developingbullbullbull

LATIN AMERICAmiddotmiddot _bullbull ____ _

FAR EAST ____ bull ___ _ _bull _bullbull Developed __ _bull Developing bullbull ___ bull

SOUTH ASIA__ ___ ___

NEAR EASTmiddotbullbullbullbull __ _ ___

AFRICAbullbullbullbullbull _ Developed _ Developingbullbullbullbull _bullbull

OCEANIAmiddot_ __

------~--

54 174

9

371

120 137

26

10 11 10

3

32

4 19 3

71

19 63 2

101 19

51 58 13

1 8

3 10

61 11

BY COUNTRY

WORLD

NORTH AMERICA United States bullbull Canada bullbullbullbullbullbull

EUROPE

NATO European___ bull Belgium Denmarkmiddot____ bull France Germany

Greece_ bull Iceland Italybull _ _ __ Luxembourg ___ _ Netnerlands _bull_ _

Norway PortugaL _ ___ Turkey ____ _ __ United Kingdom bull _ _ __

NATO TotaL_ bull

See lootnotes at end 01 table

165 2310

177

4199

1633 I 827

603

434

228 1404

123

90

324

185 731 144

2131

31 121

5

229

83 96 14

10

9 59 5

2

12

6 23 5

88

31

229 231 213

83

59 93

121 67 61

18 60 52 86 95

106 6

10 80

131

54

371 401

85

120

75 63 70

123 88

42

43 24 71

84 38 17

100

201

765

4199 4304 3182

1633

1757 2152 2504 2536 2206

863 2488 1418 2381 1978

2357 528 346

1853

2792

-------------~--~-

19

107 106 116

51

51 55

135 6

114

10 25 13 60 76

47 8 4

86

75 I

19 20 11

10 10 6

20 13

11

6 5

9

14

14

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 18: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19GB-Continued

lin current dollars per capital

Warsaw PacL

Other European

9

I

Militaryexpendshy

tures

Gross national product

Public education expendlshy

tures

Public health

expendishytures

Foreigneconomic aid given

BY COUNTRY-Continued

________________ OPE-ContinuedEUR

180 1626 113 54 Bulgarla ______________________ Czechoslovakia ________________

_______________ Hungary_____________________ Germany East

36 94 85 33

1083 1972 1801 1340

44 76 60 56

32 68 46 33 I

Poland ______________________ Romania _____________________

60 36

1158 1051

51 45

43 30 J

_________________oviet UnionS 231 1 735 139 58

______________ 37 1216 46 41 Albania ______________________ 38 400 35 15 Austria 20 1 551 55 77 Finland ______________________ 33 1706 125 73 Ireland _____________________ 9 1 031 38 39

Spain ________________________ 28 773 9 12 Sweden _____________________ 123 3322 188 135 Switzerland 59 2798 94 70 Yugoslavia ____________________ 23 496 15 24

LATIN AMERICA ______ 9 434 10 5 Argentina_______ 16 725 15 1 Bolivia ______________________ 4 117 6 1 BraziL _________________ 7 310 2 1 Chile_______________________ 14 614 22 17 Colombia _____________________ 5 284 6 5

C 449 20 12 Cuba _________________________

osta Rica _____________________

39 658 37 8 ____________Dominican Republic 8 295 7 4

Ecuador _____________ 5 259 6 1 EI Salvador ________ 3 290 7 4

Guatemala _________ 299 5 7 Guyana _______________________

ailL ________________________ 303 11 11

H 65 1 1 Honduras__________ _________ 245 7 3 Jamaica ______________________ 497 12 9

Mexico ________________ 4 557 11 Nlcaragua ____________________ 5 374 9 3 Panama ______________________ 1 602 24 12 Paraguay_____________________ 4 229 4 1

_________________________ 10 336 12

_____________rinidad amp TobagoT 3 726 25 18 Uruguay_____________ 8 564 22 5 Venezuela ___________ 20 941 35 47

10 228 9 Burma ___ 4 71 2 Cambodia __________ 10 150

____China Mainland 9 112 __China Republic oL 30 298

Indonesla ____________ 95

Japan ________ 11 1 404 59 ___Korea Norih 47 261 7

__________Korea Republic oL 8 188 4 ___________________ 12 72 2 1

Malaysia __________________ 10 326 14 12

Peru

FAR EAST_

8

Laos

See foolnoles al end of Table

418-790 0 71 - 3 15

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 19: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 1968-Continued

(I n current dollars per capital

Military Public ForeignGross I Publicexpendi national education health economic

tures product expendi- expendishy aid given I tures tures

BY COUNTRY-Continued

FAR EAST-Continued Mongolia ________________ _ phiippines_____________ _ Thailand ____________________ _ Vietnam North_______________ _ Vietnam Republic 01 ________ _

SOUTH ASIA_________________ _ Afghanistan __________________ _ Ceylon ______________________ _ India ________________________ _ NepaL ______________________ _ Pakistan_____________________ _

NEAR EAST __________________ _ Cyprus______________________ _ 1ran________________________ _ 1raq ________________________ _ Israel ______________________ _ Jordan ______________________ _

KuwaiL _____________________ _ lebanon_____________________ _ Saudi Arabia _________________ _ Syrian Arab Republic _________ _ Yemen ______________________ _

United Arab Republic _________ _

AFRICA _________________________ _ Algeria ______________________ _ Cameroon ___________________ _

Central African Republic_______ _Chad _______________ _

Congo (Brazzaville) __ _

Congo (Kinshasa) _____________ _ Dahomey____________________ _ Ethiopia _____________________ _ Gabon ______________________ _ Ghana _______________________ _

Guinea ______________________ _

Ivory Coast Kenya _______________________ _ liberia______________________ _ libya ________________ _

Malagasy Republic ________ _ Malawi ______________________ _ MaIL ___________________ _ Mauritania____________________ _ Morocco_____________________ _

Niger_____ ______________ _ Nigeria_______________ _ Rhodesia Southern______ _ SenegaL __________________ _ Sierra leone _____________ _

See footnotes at end of table_

17 3 4

28 35

3 I 1 3 I

32 10 20 32

245 50

117 16 83 24 3

21

4 8 3 2 2

3 2 2 6 5

4 4 1 3

21

479 203 157 119 175

90 85

149 82 75

123

324 704 296 278

1472 274

4111 519 478 250 110

181

185 260 143 134

78 200

78 71 63

417 238

174 312 130 225

1644

III 58 55

154 204

90 112 230 220 137

6 5 5 2

12 14 7

15 82 9

161 12 23 9 I

6 12 4 5 2

13

4 3 1

21 8

10 15 2 6

41

3 2 4 7

1 1 4 1

5 6 5 3

21 4

81 3 7 I 2

3 5 2 2

2 2 1

10 2

3 21

I I

16

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 20: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

TABLE III-PER CAPITA MILITARY EXPENDITURES AND RELATED DATA 19G5-Continued

[In current dollars per capita)

Military Gross Public Public Foreignexpendlshy national education health economic

tures product expendishy expendlshy aid given tures tures

IIY COUNTRY-Continued

AFRICA-Continued Somali Republic_____________ _

South Africa Republic of __ _ Sudan ____________ _

Tan~ania ___ _ Togo _______ _

Tunisia ___ _ Uganda_____________ _ Upper Volta _______ _ Zambia ____ _

OCEANIA ______________ _ Australia ____ _

New Zealand

62 13 19 731 23 5 106 5 4 78 2 2 120 2

224 12 122 2 50

326

71 2131 88 80 2211 92 31 1781 62

1 10 1 1

67 58 81

11 13

Developed country or region (Country without Note See footnotes to Table II and Statistical asterisk is developing) Notes for descriptions and sources of data

All countries in region are developing - rhne or negligible

17

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 21: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing _

LATIN AMERICA--_ _

FAR EAST __ Developed Developing_

SOUTH ASIA-

NEAR EAST

AFRICA_ bull Developed Developing

OCEANIAmiddot

WORLD TOTAL_ __

NORTH AMERICA ___ _ United Statesmiddot _ _ Canadamiddot __

EUROPE ___ ______

NATO European__ _____ Belgium __ Denmark-_ ___ __ France _ _ __ Germany West______

Greece___ Iceland ___ Italy ___ bull _______ _ Luxembourg __ Netherlands _ __ __

Norwaymiddot __ PortugaL _ Turkey ____ United Kingdommiddot ____ bull

NATDtota-- ___

See footnotes at end of table

Military expenditures Military expenditures as percentof GNP

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

SUMMARY

___ 139637 143936 160874 180394 190733 366 72 68 70 73 71 ______ --shy 124488 127031 142997 160328 168779 356 78 74 75 78 76 ___________ 15149 16905 17877 20066 21954 449 46 45 45 48 49

____ 53001 53379 64883 77301 82379 554 78 73 81 91 88

____________ _ 71614 73760 78079 83187 86888 213 82 79 76 75 73 __ ___ __ 69546 71600 75665 80357 83844 206 84 82 79 77 75

___ _ 2 068 2160 2414 2830 3044 472 43 39 39 42 44

1780 1833 2159 2179 2235 256 21 20 21 20 20

___ bull __ bull 8144 8714 9527 10769 12018 476 47 45 44 44 43 _____ bull ______ 836 781 933 1040 1146 371 12 9 10 9 8

_ _ 7308 7933 8594 9729 10872 488 70 72 72 75 78

___ __ bull 2120 2706 2158 2013 2155 17 39 43 40 38 35

______ 1381 1665 1869 2596 2901 1101 72 74 76 95 98

___ __ bull ___ _ 867 928 1014 1089 1103 272 25 24 24 24 22 ____ _ 375 320 331 370 356 51 36 30 28 28 25 ___ ____ 492 608 683 719 747 51 8 2 a 22 23 23 21

_ ___ bull 730 951 1185 1260 1054 444 29 34 39 41 33

BY COUNTRY

139637

53001 51323 1678

71614

19672 497 255

4918 4888

185

1789 9

735

220 229 385

5562

72673

143936

53379 51884 1535

73760

20578 501 286

5125 4979

210

1939 10

750

266 232 425

5855

73957

160874

64883 63283 1600

78079

21335 530 310

5300 4950

240

2125 10

775

260 240 445

6150

86218

lBO 394

17301 75484 1817

83187

23054 569 326

5856 5349

313

2175 8

884

294 333 511

6436

100355

190733

82379 80596 1783

86888

22668 602 345

6118 5278

367

2245 8

906

322 359 573

5545

105047

366

554 570 63

213

152 211 353 244 80

984

255 -111

233

464 568 488

-03

445

72

78 81 39

82

49 32 28 56 47

37

34 15 43

34 74 53 60

68

68

73 76 32

79

48 30 29 55 44

36

34 16 39

37 63 52 59

63

70

81 84 30

76

46 29 28 52 41

36

35 14 37

34 59 47 58

68

73

91 95 32

75

46 29 27 51 44

45

32 11 39

35 72 48 58

74

71

88 93 27

73

43

291 28 48 40

48

30 10 36

36 72 49 54

72

18

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 22: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

NATIONAL PRODUCT 1964-68 current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964--68

SUMMARY

1935863 2106380 2300921 1603300 1734080 1906540

332563 372300 394381

675900 733000 803200

872000 933600 1025300 824200 871900 963300 47800 55700 62000

83610 92458 103580

111116 195303 217193 68000 84560 97480

103176 110743 119713

54193 62572 54266

19176 22605 24751

35008 38942 42031 10400 10720 11960 24608 28222 30 071

24800 27900 30800

1935863 2106380 2300921

675900 733000 803200 632400 684900 749900 43500 48100 53300

872000 933600 1025300

401000 421200 466800 15300 16800 18100 9000 10 000 11100

88200 93500 101400 103500 112200 119600

5000 5900 6700 300 500 600

52600 56700 61400 600 600 700

17100 19 000 20800

6400 7100 7600 3100 3700 4100 7300 8 lao 9400

92600 99200 105300

1 073200 1 165300 1267700

2464143 2047740

416403

2685006 2234940

450 066

387 394 353

850900 931800 379

1105000 037300

67700

1185000 1115700

69300

359 354 450

101080 113557 358

244836 115660 129176

281335 141920 139415

644 1087 351

53307 62090 146

27312 29594 543

44908 13080 31828

50130 14 020 36 110

432 348 467

30800 31500 270

WORLD TOTAL Developed Developing

NORTH AMERICA

EUROPE Developed Developing

LATIN AMERICA

FAR EAST Developed Developing

SOUTH ASIA

NEAR EAST

AFRICA Developed Developing

OCEANIA

BY COUNTRY ~----------~~~~------~----

2464143 2685006 387

850900 931800 319 793500 865700 369 57400 66100 52 a

105000 1185000 359

501 000 529900 321 19500 20700 353 12200 12400 378

115900 126600 435 121 000 132700 282

7000 7600 520 600 500 667

67 000 74800 422 700 800 333

22700 25200 474

8300 9 000 406 4600 5000 613

10600 11600 589 no 900 103 000 112

I 351 900 1461700 362

WORLD TOTAL

NORTH AMERICA United States Canada

EUROPE

NATO European Belgium Denmark Francemiddot Germany West

Greece Iceland Italy Luxembourg Netherlands

Norway Portugal Turkey United Kingdom

NATO total

19

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 23: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures

Percent

Military expenditures as percentof GNP

1964 1965 1966 1967 1968 enange 1964 1965 1966 1967 1968 19~

BY COUNTRY-Continued

IEUROPE-Continued Warsaw PacL (7-9) (1-9) (7-9) (7-9) (7-9)49480 50650 53890 57070 61100 235

45 31 35 32 33280 250 260 260 300 71Bulgariabullbull 65 63 60 51 481380 1410 1450 1340 1360 -14Czechoslovakia _ 28 29 28 31 47Germany East 680 740 170 890 1450 1132 31 30 24 23 25320 320 280 290 340 63Hungary__ bull

49 48 50 5 a 521310 l390 1560 1680 1950 489Poland __ 36 35 33 32 34510 540 570 610 100 313Romania __

(8-10) (8-10) (8-10) (8-10) (8-10) 45 000 46000 49000 52000 55 000 222Soviet Union__ bullbull

33 30 31 31 312462 2532 2854 3063 3120 267Other European__ 100 100 100 99 9570 70 70 69 76 86Albania 16 13 14 14 13

Finland 135 118 135 144 150 11 1 Austriabullbull __

16 17 16 21 20105 139 141 148 156 486 23 12 13 12 9Ireland __ bull 59 33 37 39 27 -542

29 26 31 35 36Spain ____ 516 571 753 948 913 769 48 44 43 40 37Sweden __ ____ 826 843 924 945 977 183 27 26 26 23 21348 356 388 374 365 49Switzerland __ __ __ 52 45 45 41 56403 396 406 396 456 132Yugoslavia

21 20 21 20 201780 1833 2159 2119 2235 256LATIN AMERICA 24 21 24 23 22R 402 R 412 R 469 R 355 380 -55Argentina ______ 22 25 23 21 2212 15 15 15 17 41 7BoIIvia__ 32 23 25 25 24R 451 R 449 R611 H 692 651 425BraziL _

R 108 R 119 H 143 R 132 127 176 21 21 23 21 22Chile __ ___ 16 17 17 14 17Colombia _____ ltshy It 82 R 61 1 71 171 98 195

Costa Rica ____ Cuba_ -_ 67 61 66 63 60

Dominican Republic _ 35 35 32 31 30 -143 R200 R 213 R 230 R 250 300 500

33 38 32 29 26 Ecuador ___ ______ 20 21 23 20 1821 24 28 27 26 238

12 11 12 11 11EI Salvador_____ 9 9 10 10 10 111

09 11 11 11 1111 14 15 16 16 455Guatemala_ _- NA NA 05 09 09

HaitL ____________ __ NA NA I 2 2 NAGuyana bullbull

24 28 24 23 218 9 8 7 -125 13 12 13 14 14Honduras _ 6 6 1 9 500

Jamaica ____ ____ 05 06 05 05 054 5 5 5 25 a

Mexico ____ ___ ____ 07 07 08 07 07128 134 168 168 184 418 14 14 15 16 14Nicaragua ___ _____ 7 8 9 10 10 429

Panama _______ 02 02 01 01 011 1 1 1 I 12 16 17 21 2 aParaguay _ ______ 5 7 8 10 10 lOa a

Peru_______ ______ __ 29 27 23 34 31 II 104 R 115 R 117 R 135 132 269

08 08 07 063 -400Trinidad amp Tobago____ 04115 17 15 19 14

Venezuela_ __ R 23 R 18 R 22 R 27 23Uruguay

21 23 23 24 21152 174 184 202 194 276

i 47 45 44 44 4318144 8714 9527 10169 12018 476FAR EAST _ __ 65 62 65 57 57Burma ____ 104 no 113 103 107 29 51 64 62 59 6645 53 54 57 65 444Cambodia __ 79 80 81 82 83China Mainland____ 5500 6000 6 SOD 7000 7500 364 95 77 II 2 115 101China Republic of ____ 218 218 350 415 425 950 15 10 14 18 29121 87 123 172 313 1587Indonesia

Japan _____ 12 9 10 9 8

Korea North ___ 836 781 933 R 1040 1146 371

120 14 a 103 153 180R 300 R 350 R 300 R 460 629 1097 45 56 39 40 41Korea Republic of _ 123 113 150 184 235 911

laos____ __ _______ 108 156 185 180 168 I Malaysia __ ________ bull 90 117 121 123 108 200

11 27 35 35 34 1000 33 40 4 a 39 32

See footnotes at end of table

20

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 24: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

1964 1965 1966 1967 1968 Percent change1964-68

BY COUNTRY~Continued ~-~-~

397000 427700 466400 505900 553200 6200 6700 7 SOD 8200 9100

21 300 22 500 24300 26300 28400 24200 25700 27200 29100 30800 10400 10700 1700 12600 13800

26700 28700 31500 33900 37400 14200 15400 17200 18800 20700

Ilt 294 000 Ilt 318 000 R 347 000 Ilt 377 000 413 000

74 000 84700 92100 98100 101900 700 700 700 700 800

8500 9300 10 000 10600 11400 6600 8100 8600 7100 8 000 2600 2800 2900 3200 3000

17700 21800 24600 26900 25200 17200 19300 21300 23900 26300 12900 13900 15 000 16 000 17200 7800 8800 9 000 9700 10000

83610 92458 103580 107080 113551 R 16793 R 19182 R 19320 R 15568 1711

536 606 661 712 786 R 14317 R 19264 R 23975 R 27 197 27353

R 5265 R 5601 R 6 139 R 6317 5670 R 5 047 II 3 636 R 4270 R 5034 5638

549 581 624 671 734 Ilt 3 000 It 3200 R 3 500 Ilt 4000 5 000

1072 918 I 012 1 068 1169 1052 I 124 1238 1350 1475

741 790 837 882 930

1277 1316 1375 1416 1500 NA NA 220 230 215 330 327 334 300 326 466 512 545 577 621 823 889 946 994 951

17968 19416 21768 24 112 26310 485 573 600 641 697 572 630 698 713 826 401 436 460 477 511

R 3 542 R 4213 R 4996 R 3997 4287

600 600 672 816 748 R 1559 R 1 069 HI 455 R 1433 1589

7215 7575 7935 8515 9110

171176 195303 217193 244836 281335 1610 1760 1740 1803 1883

785 830 875 962 983 70 000 75000 80 000 85 000 90 000 2290 2828 3138 3602 4200 8 000 8500 9000 9600 10840

68000 84560 97480 115660 141920 2500 2500 2900 3 000 3500 2745 2901 3822 4612 5730

158 173 189 194 202 2733 2890 3056 3176 3364

--------- shy

EUROPE-Continued Warsaw Pact393

Bulgaria468 Czechoslovakia333 Germany East273 Hungary327

401 Poland 458 Romania 405 Soviet Union

Other European353 143 Albania 341 Austria

Finland212 154 Ireland

424 Spain 529 Sweden

Switzerland333 51 Yugoslavia

358 i LATIN AMERICA 19 Argentina

466 Bolivia Brazil911

77 Chile Colombia117

Costa Rica337 667 Cuba

Ooninican Republic91 Ecuador402

255 EI Salvador

Guatemala NA

175 Guyana

-12 Haiti Honduras333

156 Jamaica

464 Mexico Nicaragua437

444 Panama Paraguay274

210 Peru

247 Trinidad amp Tobago 19 Uruguay

263 Venezuela

644 fAR EAST 17 a Burma 252 Cambodia 286 China Mainland 834 China Republic of 355 Indonesia

1087 Japan Korea North400 Korea Republic of1087 Laos278

231 Malaysia

21

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 25: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

TABLE IV-MILITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNP

1964 1965 1966 1967 1968 Percent

change 1964-68

1964 1965 1966 1967 1968

fAR EAST-Continued Mongolia _____________ Philippines___________ Thailand ____________ Vietnam North _______ Vietnam Republic of

SOUTH ASIAmiddot ________ Afghanistan _______ Ceylon _______________ India ____ NepaL _______________ Pakistan _____________

NEAR EASTmiddot _________ Cyprus _________ ____ Iran ___ __________ __ Iraq ___________ IsraeL_____________ Jordan __________

Kuwait _________ lebanon_ ___________ Saudi Arabia_________ Syrian Arab Republic __ yemen _______________

United Arab Republic __

AFRICA ______________ Algeria ____________ Cameroon ____________ Central African Rep___ Chad________________

Congo (Brazzaville)___

Congo (Kinshasa)_____ Dahomey _____________ Ethiopia______________ Gabon _______________ Ghana _______________

Guinea ___________ ~ __ Ivory CoasL _____ ___ Kenya_______________ liberiL ________ libya_________ _____

Malagasy Republic____ MalawL _____________ MalL _______________

Mauritania__ Morocco_

Niger ___ Nigeria___ Rhodesia Southern____ SenegaL __________ Sierra leone ___ ______

BY COUNTRY-Continued ~~----~--~-~~

R 15 R 15 R 15 R 20 20 333 72 76 84 108 16 611 86 84 97 133 157 826

R 350 R 425 R 350 500 550 571 267 258 302 419 613 129_ 6

2120 2706 2158 2013 2155 17 13 23 15 16 16 231 15 13 14 IS 13 -134

1800 2017 R 1641 1486 1603 -11 0 S 5 RS R4 5

287 588 483 492 518 80 S

1381 1665 1869 2596 2901 1101 8 9 8 9 6 -250

233 296 328 418 530 1275 140 197 207 268 280 1000 372 413 400 R 584 672 806 59 60 61 77 105 780

20 31 55 55 63 2150 26 30 38 40 -45 731

113 131 202 341 383 2389 100 95 97 125 137 370 10 11 12 13 14 400

300 392 461 666 666 1220

867 928 1014 1089 1103 272 70 100 100 100 100 429 17 15 16 18 19 IlS 2 3 3 3 500 2 5 8 8 3000 5 7 6 6 200

laquo 12 laquo 31 Jlt 32 37 44 2667 I 4 4 4 4 4

22 30 34 37 41 864 2 3 3 3 3 500

39 R 42 R 43 R 48 44 128

5 11 13 14 14 1800 II 13 13 17 17 545 8 8 12 15 15 875 2 3 3 3 3 500

17 28 27 30 37 1176

9 11 II 12 13 444 R 1 I 1 1 NA

9 10 5 5 5 -445 2 2 4 6 8 3000

113 103 103 75 76 -328

5 6 3 3 -400 48 66 66 89 91 896 8 10 15 19 21 1625

11 15 15 15 15 364 2 3 3 3 500

--~---~---

30 30 29 36 35 5 5 5 17 6 26 22 21 26 28

194 224 175 238 239 141 136 145 141 201

39 43 40 38 35 12 18 11 12 12 2 10 8 8 7 44 43 44 41 37 8 7 6 5 6

28 53 37 36 34

72 74 76 95 98 23 22 18 19 14 46 50 51 56 66 78 103 93 120 117

120 122 105 146 166 144 130 II 7 134 183

17 20 32 30 28 33 27 30 30 32 91 8_6 121 171 174

119 84 88 11 1 96 27 22 23 25 25

74 8-3 91 117 1 I 6

25 24 24 24 22 32 38 38 33 3 a 43 22 22 23 24 7 25 6 6 15 10 13 20 30 38 50 42 50 38 40

9 24 25 28 33 25 24 24 22 21 22 26 23 24 27 21 23 20 17 15 23 19 25 28 22

23 43 45 45 21 4 13 3 16 14 10 9 11 3 11 2 4 3 13 12 22 27 21 9 12

17 19 17 16 17 5 5 4 4

41 43 21 20 19 17 15 28 39 47 47 40 42 28 25

20 24 11 10 10 2 14 2 17 15 9 10 5 18 18

16 22 21 19 18 7 9 8 8 9

See footnotes at end of table_

22

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 26: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1964 1965 1966 1967 1968 change

1964-68

500 4825 3330 1 800 1900

54193 1100

11 1300 11 1 071

603 10119

19176 350

5030 1785 3111

410

1200 785

1240 840 375

4050

35008 2200

400 20

200 100

1375 160 982 95

675

215 760 829 170 782

533 11 200 R 220

120 R 2 424

245 4120

920 700 300

500 5198 3854 1900 1900

62512 1250

R 1319 11 48235

736 11 032

22605 417

5947 1909 3397

462

1518 1120 1521 I 125

489

4700

38942 2630

670 122 240 120

1273 165

1171 130

2207

257 963 846 213

1 038

578 R211 11 230

130 R 2 548

250 4852 1022

680 340

BY COUNTRY~Continued

R 525 11 550 575 5728 6519 7276 4654 5078 5512 2 000 2100 2300 2086 2980 3 050

54266 53307 62090 1355 1340 1370

R 1750 11 1902 1781 R 37375 11 36267 43 000

772 794 800 R 13014 R 13798 15139

24751 27312 29594 440 469 438

6423 7495 8 020 2235 2240 2400 3822 4005 4042

520 575 575

1700 1860 2220 1250 R 1325 1424 1670 2 000 2200 1101 1130 1425

515 520 550

5075 5693 5740

42031 44908 50130 2662 3000 3365

720 775 800 183 190 200 250 270 270 140 160 174

1300 1332 1330 170 180 182

1484 1551 1534 150 180 200

1743 1734 1994

290 310 669 1020 1071 1242 1 ll4 1181 1330

226 240 254 1300 1580 2965

665 730 780 R 216 R 228 247 R 240 R 250 264

145 155 172 R 2475 11 2655 2981

270 300 342 5450 5340 6000

997 1074 1138 716 790 827 370 380 340

150 508 655 278 605

146 245 370

-47 327 496

543 251 594 345 299 402

850 81 4 774 696 467

417

432 53 a

100 a 667

-350 740

-33 188 562

llO5 190

21t 2 634 604 494

2792

463 235 200 4t 7 230

224 456 237 181 133

FAR EAST-Con Mongolia Philippines Thailand Vietnam North Vietnam Republic 01

SOUTH ASIA Afghanistan Ceylon India Nepal Pakistan

NEAR EAST Cyprus Iran Iraq Israel Jordan

Kuwait Lebanon Saudi Arabia Syrian Arab Republic Yemen

United Arab Republic

AFRICA Algeria Cameroon Central African Rep Chad Congo (Brazzaville)

Congo (Kinshasa) DahOmey Ethiopia Gabon Ghana

Guinea Ivory Coast Kenya Liberia Libya

Malagasy Republic Malawi Mali Mauritania Morocco

Niger Nigeria Rhodesia Southern Senegal Sierra LQona

23

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 27: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

TABLE IY-MllITARY EXPENDITURES AND GROSS (Millions of

Military expenditures Military expenditures as percent of GNPI

Percent I1964 1965 1966 1967 1968 change 1964 1965 1966 1967 1968

1964-68

BY COUNTRY-Continued

AFRICA-Continued Somali

Tanzania bull Togo

Tunisia Uganda Upper Volta

OCEANIA _

R5

375 30

730 640 90

R5

320 33 6

14 9 3 9

951 838 113

H7 8 331 370 356

R 63 R7 74 8 12 13 3 3 3

17 14 14 20 15 16 4 5 5

20 21 20

1185 1260 1054 1065 1155 968

120 105 86

600 -51 1242 3333

1000 1286 667

1222

444 51 3

-45

34 36 23 4

21

33 30 24 8

19

45 28 43 9

16

44 28 46 13 15

47 25 47 14 14

8

9 12 15

15 11 12 11

18 22 16 20

14 16 20 18

13 16 19 15

29 31 20

34 37 22

39 42 22

41 46 19

33 36 18

-Developed country or region (Cou ntry Without asterisk HRevised from previouS report is developing) NA Not applicable

All countries in region are developing Note-See footnotes to Table II and Statistical Notes for - None or negligible description and sources of data

24

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 28: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

1964

NATIONAL PRODUCT 1964-68-Continued current dollars)

Gross national product

Percent 1965 1966 1967 1968 change

1964-68

BY COUNTRY-Continued -------~-------

R 145 150 155 R 160 170 172 10400 10720 11960 13080 14020 348 1285 1387 I 457 1554 1560 21 4

715 750 860 898 943 31 9 140 156 190 205 213 521

853 936 939 R 973 1048 229 R 770 R 854 R 910 It 952 994 291

250 257 H 250 253 257 28 605 846 R 1 014 1177 1325 1190

24800 27900 80600 30800 31500 270 20400 22700 25100 25200 26600 304

4400 5200 5500 5600 4900 11 4

AFRICA-Continued Somli Republic So Africa Rep of Sudan Tanzania Togo

Tunisia Uganda Upper Volta Zambia

OCEANIA Australia New Zealand

25

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 29: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

TABLE V-ARMED FORCES 1964-68 II n thousandsl

I Percent

1964 1965 1966 1967 1968 change 1964-68

SUMMARY

WORLD TOTAL 20971 21231 21844 22978 23819 136 Developed __ 10118 10156 10544 10896 10973 85 Developing__ 10853 11075 11300 12082 12846 184

NORTH AMERICA ___ 2810 2780 3201 3503 3602 282

EUROPE- bull _ ___ _ 8524 8604 8569 8563 8612 10 Developed_ bullbull 6973 7021 6985 7020 6986 2 Developing_ 1551 1583 1584 1543 1626 48

LATIN AMERICA ____ 1011 1067 1073 1083 1153 134

FAR EAST 6190 6243 6358 6810 7161 157 Developedbullbull 244 246 246 246 250 25 Developing__ 5946 5997 6 Ll2 6564 6911 162

SOUTH ASIA- bull 1297 1301 1363 1580 1752 351

NEAR EAST 766 834 866 965 993 296

AFRICAbull ____ ~ shy -shy - -~ shy - -~ 302 320 332 381 449 487

Developedbullbull _ 26 27 30 34 38 462

Developing 276 293 302 347 411 489

OCEANIA_ 65 82 82 93 97 492

WORLD TOTALbull __

NORTH AMERICA United Slatesmiddot Canada _~

EUROPE-

France __

Greece bull _ Icelandmiddot __ Italymiddot Luxembourg Netherlands

Norwaymiddot_ Portugal Turkeybull United Kingdom

NATO TotaL _

Seelootnotes at end ollable

BY COUNTRY

20971 21231 23819 136

2810 2780 3201 3503 3602 282 2690 2660 3094 3400 3500 301

120 120 107 103 102 -15_0

8524 8504 8569 8563 8612 10

3063 3052 3OLl 2995 3026 -12 IlO 107 107 102 99 -100

52 51 50 46 46 I -1l5

620 458

557 466

523 470

520 I

490 I 505 486

-185 61

I 162 160 159 158 I 161 -6

480 470 471 455 440 -83

S 6 2 1 I -833

124 135 129 130 129 40

37 32 I 34 35 35 -54

109 148 148 149 183 679

480 480 480 480 514 1

425 440 438 429 427 I

i 5873 583l 6212 6498 i 6628 i 129

~~-=----------------------------__1l1li __lIIIfllIIl_1IIIIIIIiIIIIInIlIIllIIlllUIllIIIIIiUllltUIIlIUIIIIIIIIIIIIIIUIIIirIIIlliIi ~bullI I IIJtlIiOnlilil~i~tmiddot~_t lj-~

26

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 30: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

TABLE V-ARMED FORCES 1964-68-Continued (I n thousands]

Percent 1964 1965 1966 1967 1968 change

1964-68

BY COUNTRY--Continued

4783Warsaw Pact-_ 4619 364723 4733 4778 Bulgaria __________ 48165 167 171 173171 Czechoslovakia ______ 265 265 -19270 270 255 Germany East _______ 196 11 4197176 192182 Hungarymiddot ________ -14137139 144 144 137

Poland ___ 315 319 6317 325322 Romania ___________________ 251 223 -209282 258 223 Soviet Union __ 3470 3470 613270 3380 3395

Other European ____ _ ____ 46803842 825 790829 Sl 51 51 51Albania I ___ -- ---- shy 52

AUstria ______________ 4442 42 47 50 191 Finland_ _ 46 4546 46 39 -152 Ireland _ __ 8 9 10 10 2508

Spai n_____________ __________ 305 -9335 330 275291 Sweden____________________ -2580 74 69 72 78 Switzerland______________ 31 31 31 Yugoslavia __ - ~ _ - - _ - -- shy

31 31 259 -40249 247 239~ ~ 283

LATIN AMERICAmiddot ______________ 11117 1067 11531073 1083 134 Argentina ________ 144 144130 108132 133 BOlivia ___________ 592017 15 15 18 Brazill ____ 225191 225 178220 220 Chile ______ -1664 63 6365 66

55 56 56 55 55Colombia shy

Costa Rica ___ Cuba ____ 359290 316 394321321 Dominican Republic __ -5319 19 19 19 18 Ecuador _______ __ 19 17 17 19121 19 EI SalvadoL ____ ___ 66 6 6 6

Guatemala__ 9 1259 9 98 Guyana ______ 11 1 1 1 HaitL __ 55 5 5 5 Honduras____ 6 5 -1675 5 5--- - -- - - ~ - shyJamaica_____ 2 2

66 68 69 70 70 61Mexico_ bull Nicaragua _______ _ 5 6 6 66 200 Panama____________ Paraguay___ -23517 15 13 1317 Peru_________________ 49 50 50 50 2050

Trinidad amp Tobago_______ _ _ 1 I 1 Uruguay

1 I -2781318 17 17 13

Venezuela _____ ______ _____ 5636 38 3838 38

FAR EAST____ ___ _ _____ 15761911 6243 6358 6810 7161 Burma __ ____ 109 110 138 266 Cambodia 1______ ____

110 137 8475 76 12083 83

China Mainland_ _____ 2750 2750 2800 3000 3100 127 China Republic of_ __ 600 -120524 544 547 528

w_w __ 412 450 92Indonesia__ __ ____ 412 3723721 Japan___ 244 246 246 250 25246

362 383 410 133378 383Korea 604600 572 612 620 33Korea Republic of _

Laos_ _________ 55 9560 85 80 583 Malaysia ________ 49 52 53 56 57 163

See footnotes at end oflable

27

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 31: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

TABLE V-ARMED FORCES 1964-68-Continued lin thousandsl

Percent 1964 1965 1966 1967 1968 chane

1964- 3

BY COUNTRY~Conlinued

FAR EAST-Continued Mongolia bullbull 30 30 32 33 33 10 a Philippines ____ _ _ 58 5453 47 47 -19_0 Thailand ___ __ 85 132 151 151 167 965 Vietnam North _______ 256 256 256 418 447 746 Vietnam Republic of _ __ 500 565 617 645 735 470

SOUTH ASIA ___ 1297 1301 1363 1580 1752 351 Afghanistan ____ 100 90 90 75 70 -300 Ceylon _____ 10 10 10 10 10 India ___ 914 914 920 1 077 1133 240 Nepal ____ 20 20 20 1515 -250

253Pakistan _ 267 403 524323 1071

NEAR EAST_ _________ 766 834 866 965 993 296 1 1 1 11

Iran ______ 208 206 225 225 225 82 Iraq 1 ____ 92 91 91 92 92

65 67 68 71 77 185 Jordan _____ 38 40 40 5550 447

KuwaiL ____ 73 6 600 a Lebanon_ _____ 10 12 12 12 12 200 Saudi Arabia ________ 41 50 5450 56 366 Syrian Arab Republic ____ 58 64 64 68 69 190 yemen _____ ___ 2 2 2 6 8 300 a

United Arab Republic 1____ 250 300 310 380 391 564

AFRICA _ _ ___ ___ 302 320 I 332 I 381 449 487 Algeria _______ 47 48 50 58 58 234 Cameroon 1 _____ 5 6 551 Central African Republic NA1 1 11 Chad ______ bull ______ NA Congo Brazzavill e__

1 1 1 I 10002 2 2

Congo Kinshasa_ 28 30 10731 3130 I Dahomey ____ 100_01 I Imiddot 2 2 Ethiopa _____ 35 43 4535 35 286 Gabon_ 1 1 NA Ghana_

1 15 50010 10 1 I 15

1

Guinea ______ 5 Ivory Coasl ______

5 5 5 5 4 4 4 4 4

Kenya _____ 3 3 3 33 Liberia _____ 3 4 4 4 4 333 Libya ____ 8 8 8 8 8

Malagasy Republic __ 333 Malawi _____ NA Mali __ __

1 4 4 3333

Mauritania____ NAI 11 Morocco ________ 62 21 651 53 53 58

Niger ____ _ _ NA1 1 Nigeria __ __ __ bull Rhodesia Southern_ SenegaL ________ i 4 Sierra Leone 2

See footnotes at end of table

4 2

4 2

20 7750 4 7~ I5 250 2 2 I

28

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 32: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

TABLE V-ARMED FORCES 1964-68-Continued )1 n thousands)

1964 I 1965 1966 1967

I

I I

1968 I Percent

Change i 1964-68 i

BY COUNTRY~Conlinued

AFRICA-Continued Somali Republic ___ South Africa Republic of __ _ Sudan_ Tanzania Togo __

Tunisia 1_

Uganda _______ Upper Volla ___ Zambia _

OCEANIA___ Australia _ ---1 New Zealand -~~~~~~~~-~~~~~

5 26 18

20 3

65 52 13

6 27 18 2 I

I 21

82 69 13

8 30 18

21 4 1 3

82 69 13

34 18 4 1

23 6 1 3

93 80 13

8 38 24 4 1

23 6 2

97 84 13

600 462 333

1000

150 1000

NA 2000

492 615

Developed country or region (Country without - None or negligible asterisk is developing) NA Not applicable

All counlries in region are developing I Includes paramilitary as well as regular forces

29

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 33: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

TABLE VI-MIUTARY AND ECONOMIC RANKING OF COUNTRIES 1968

MILITARY STRENGTH

------------------~--------------~~---------------RANK Military expenditures

(billion dollars)

United States 8060 Soviet Union bullbullbull 5500

3 Mainland China 750 4 France 612 5 United Kingdom 554 6 West Germany 528 7 Italy 224 8 Poland 1 95 9 Canada __ 178

10 Indi __ 160 11 East Germany____ I 45 12 Czechoslovakia 1 36 13 Japan 115 14 Sweden 098 15 AustraIiL 097 16 Spain 091 17 Netherlands 091 18 Romania D70 19 IsraeL __ bull ____ 067 20 United Arab Rep 067 21 BraziL bull bull __ 065 22 North Korea 063 23 Rep of Vietnam 061 24 Belgium 060 25 Turkey 057 26 North Vietnam 055 27 IraL ___ 053

281 Pakistan 052 29 Yugoslavia _ 046 30 RepofChina bullbull _ 042

Armed forces Expenditures per man (thousands) (dollars)

UnitedStates _ 3500 UnitedStates __ bull _ 23027 Soviet Union 3470 Canada ___ bull 17480 Mainland China 3100 Soviet Unionbullbullbull _bull 15850 Indiabullbullbull__ l133 United Kingdom bullbullbullbullbull __ 12986 Rep of Vietnam 735 Sweden__ 12526 Rep of Korea 620 France 12115 Rep of China 528 Switzerland __ 11774 Pakistan 524 Australia ____ __ 11524 Turkeybullbull __ bull 514 West Germany______ 10860 France 505 Rep of South Africa 9368 West Germany 486 Norway 9200 Indonesia 450 KuwaiL 9000 North Vietnam ___ 447 IsraeL 8727 Italybull __ 440 Mauritania __ 8000 United Kingdom 427 Chadbullbullbull _bullbull __ _ 8000 North Koreabullbull 410 i Denmark ____ 7500 Cuba_ __ __ 394 East Germany 7398 United Arab Rep bullbullbull __ 391 Netherlands 7023 Poland 319 Saudi Arabia __ 6839 Spain_ ____ __ 305 Zambia ________ 6667 Czechoslovakia 265 New Zealand 6615 Japan 250 Poland 6113 yugoslavia 239 Belgium 6081 BraziL 225 Cyprus bull _ 6000 Iran_ 225 Czechoslovakia 5132 Romania 223 Venezuela 5105 East Germany 196 Italy 5102 Portugal __ _ 183 Kenya ___ 5000 Bulgaria__ 173 LibYL 4625 Thailand__ 167 Japan__ 4584

ECONOMIC STRENGTH

Gross national product Population GNP per capita (billion dollars) (millions) (doliars)

1 i United States_ 8657

RANK

Mainland China 8060 United States bull 4304 2 Soviet Union 4130 India ___ __ 5271 KuwaiL 4111 3 Japan____ 1419 Sweden~ _ 3322 4 West Germany __ 1327

Soviet Union~~ 2380 United States bull 201 2 Canada_ bullbull 3182

5 France_ 1266 Pakistan__ 1234 Switzerland _ 2798 6 United Kingdom_ 1030 Indonesia 1137 france 2536 7 Mainland China_ 900 Japan_ __ _ 1011 Denmark _ 2504 8 Italy _ 748 Brazil_ bull 802 Iceland 2488 9 Canada 661 West Germany_ 602 Luxembourg 2381

10 India____ 430 Norway_ _ 2357 11 Poland ___ 374

United Kingdom 553 Nigeria_ 535 Australia __ 2211

12 East Germany 308 Wesl Germany __ 2206 13 Czechoslovaka _ 284

Italy_ 528 france 499 Belgium 2152

14 BraziL _ 274 Mexico __ 473 Netherlands 1978 15 Australia_ __ _ 266 Philippines_ _ 359 Czechoslovakia 1972 16 Mexico ___ 263 Thailand_ _ 351 United Kingdom _ 1863 17 Sweden _ 263 East Germany ___ 1801 18 Netherlands 252

Turkey 335 Spain_ 326 New Zealand_ 1781

19 SpaiL 252 Poland _ 323 Soviet Union bullbull _ 1735 20 Belgium _ 207 United Arab Rep _ 317 Finlandbullbull 1706 21 Romania 207 Rep of Korea _ 305 Libya 1644

22 Switzerland 172 Iran __ __ 271 Austria 1551

23 ATllentina 171 Burma_ 264 IsraeL __ 1472 24 Pakistan_ 151 Italy___ bull 1418 25 Rep of South Africa _ 140

Ethiopia_ bull _ 242 Japan 1404

26 Hungary 138 Argentinabullbull _ 236 Canada _ 208 Hungary _ 1340

27 Denmark_ 124 Poland 1158 28 Turkey 116

Yugoslavia_ 202 ColombL_____ 198 Bulgaria 1083

29 Austria _ 11 4 Romaniabull __ 1051 30 IndonesiL_ _ 108

Romania_ __ 197 Iretand _ 1031North Vietnam 193

Nole-See footnotes to Table II and Statistical Noles for description and sources of dala

III i nr1 I III II It

30

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 34: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

Chart VIII

TEN MAJOR MILITARY POWERS 1968

Military Expenditures Armed Forces Military Expenditure Per Man

United States U S S R

China France

United Kingdom West Germany

Italy Poland

Canada India

Billion dollars Million men Dollars

31

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 35: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

STATISTICAL NOTES

Since a major purpose of this report is to comshypile worldwide and regional totals of mIlitary spending and to provide a basis for comparison with olhcr economic information coverage was made as broad as possible In doing so it was often necessary to include national data representshying approximate estimates It is believed that worldwide and regional totals adequately show orders of magnitude and can be viewed with some confidence For some individual countries ho-shyever particularly those with national statistical systems in early stages of development or those having a policy of limited disclosure of data considerable allowance should be made for imshyprecise statistics

Limitations on the accurlWY of the data origishynate in numerous factors For examplc elements of lla tional production particularly in a developing country may escape measurement in gross national product military programs may draw from scveral parts of national budgets social service expenditures are undertaken by various levels of government and are not always reported consistently conversion of national currencies into dollars is unavoidably somewhat inexact

The comparability of national data is also affected by national differences in economie conshycepts and organization The public versus private sharcs in the support of national programs vary significantly among countries In planned-economy countries the share of public support through national budgets tends to be larger than in market-economy countries In some countries religious or other nongovernmental organizations provide services analogous to those provided by governments in other countries

The data presented here for non-Communist countries have been obtained in large part from statistical materiols prepared by the US Agency for International Development (AID) AID comshypiles population gross national product military expenditures and olher public expcnditurc (latn for most non-Communist countrics These

materials are contained in AIDs economIC data books for various regions and individual countries as well as in other spccial purpose AID publications and compilations The considerable effort made by AID to adjust reported national data in accordance with standard concepts and definitions and in the light of evaluations by US missions abroad makes this body of material particularly useful for present purposes

In addition to A1D data have also been obtained from various international agencies particularly the Orgnnization for Economic Coshyoperation and Development (OECD) the World Health Organization (WHO) and the United Nations Ed ncational Scientific and Cultural Organization (UNESCO) These agencies also seek to provide standard dnta for compnrisons between countries and from yenr to year but because of limitations and ambiguities in national reports they like AID are not always able to achieve full comparability

Data for Communist countries have been obtained from It variety of Vestern sources particularly various compcndia published by the Joint Economic Committee of the US Congress and the annual Alilitary Balance reports of the Institute for Strategic Studies N ationnl statistical publications including the Soviet annual statistishycal handbook have also been used

Further discussion of data concepts sources and methods will be found belo

Country Coverage

This report covers a total of 120 countries Sixteen of the 127 members of the United N ati0118 are not covered for various reasons Data for the Byelorussiall and Ukrainian Soviet Soeilllist Republies are included vitli those of the Soviet Union as 11 yhole The other 14 UN members not covered 11rc small developing Bl1tions almost 1111 of which have gailled indepcndence sillce the initiation of this report and for which data would

32

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 36: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

not always be available On the other hand this report eo vcrs nine countries whieh are not U~ members East and West Germany Switzerland Mainland China North Korea and the Republic of Korea North Vietnam and the Republic of Vietnam and Southern Rhodesia

Coulltry groupings and regions follow AID practiee They are essentially geographical It should be noted however that the term North America is lIsed here to include only the United States and Canada that Iexico and all of Central and South America are included in Latin America and that the United Arab Republic is assigned to the Near East with other Asian countries and not to Africa Total NATO consists of North America and European NATO with the latter including Turkey

Developed and Developing Countries

Of the 120 countries covered in the report 93 are classified as developing and 27 as develshyoped (See Definitions of Terms page 7 for the countries falling into each category) In tables II III IV and V developed countries arc designated by the symbol () all others are developing

For the non-Communist countries the assignshyment of COUll tries to one or the other category follows AID practice For both nOll-Communist and Communist the assignment is primarily bllsed on per capita GNP Most of the countries classishyfied as developing have a per capita GNP below $500 and all but Bulgaria Israel Kuwait and Libya have less thlln $1000 Although it also is belOv the alOOO lovel the Ropublic of South Africa is classed Ufl developed In these latter cafles other factors which are taken into account include national literacy and mortality rates leels of industrialization and terms of trade

Gross Natiol101 Product (GNP)

AID is the source of the GKP data used in this report for 93 non-Communist countries In most cnses these data are based on national aecoullts published by the country ill question ~everal developing country estimates (those marked e) are based Oll very limited information and intershycounUy (~omparisons on such a basis should bt avoided

Warsaw Pact GNP estimates are based on data

in compilations of the Joint Eeonomic Committee of the US Congress Stanley H Cohn General Growth Performance of the Soviet Economy ill Economic Performance and the lvlilitary Burden in the Soviet Umon (Joint Committee Print 1970) and Thad P Alton Economic Structure and Growth in EaflLern Europe in Economic Developments -in Countries oj Eastern Europe (Joint Committee Print 1970) GNP estimates for Albllniu Iailliand China Cuba longoliu North Korea and North Vietnam are rough approximations

Military Expenditures

AID compiles figures on military expenditures for most non-Communist countries adjusting national data to a standard definition of military expenditures where possible The standard definishytion calls for current and capital expenditures made to meet the needs of the armed forces This includes all expenditures of national defense agencies except those for dvilian programs Also included are the military components of mixed military-civilian activities such as atomic energy space research and development and significant paramilitary forces where such components can be distinguished

Military assistance to foreign countries retireshyment pensions of career prrsonnel and military stockpiling are included in the standard concept of military expenditures whereas civil defense eiyilian space and industrial stockpiling aI( exclml ed

The estimates of Soviet military spending in US dollars are adapLd from national data and vurious estimates made by Vestern analysts 1any Western obseners believe that the unnoullced Soviet defense budget omits some exshyponditure categories in the stanclard definition such as milittlry research and development outshylays military space and nuclear energy programs and subsidies to defense industries The present estimates uttempt to allow for such omissions It should be noted that the estimates of Somiddotdet military expenditures which represent the estishymated nIne of Soviet military spending in terms of US prices aro Hot directly comparable to thp estimates of Soiet GNP b(cttusc of the usc of dissimilar cOllversioll rates (See Conversion Rates page 35)

Iilitary expenditures for the remainder of the vVarsaw Pact countries ure based Oil tllll1011nCCll

33

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 37: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

military budgets with no allowance made for possible omissions in coverage Like the Soviet estimates the other Warsaw Pact defense outlays are converted into dollars at approximate purchasing power parities

For Mainland China very rough estimates are derived from fragmentary information No budgshyetary data have been issued since 1960

Foreign Economic Aid

With the exception of estimates for Varsaw Pact countries and Mainland China the data are based on information made available by the Development Assistance Committee (DAC) of OECD These data cover aid given by the 16 donor countries which report to the DAC Ausshytralia Austria Belgium Canada Denmark France Vest Germany Italy Japan Nethershylands Norway Portugal Sweden Switzerland United Kingdom and the United States Their aid is made up of disbursements of official (ie governmental) net bilateral grants and similar aid gross bilateral lending (gross of repayments of principal and service charges) and net conshytributions to multilateral agencies

Data shown for DAC donor countries include bilateral aid to countries territories and dependshyencies not covered by the present report (In the case of Portugal which is considered developed by OECD and developing in this report the aid shmm in table II is given entirely to Portushyguese overseas territories) Consequently the bilateral aid component of all DAC aid given exceeds by $14 billion the bilateral aid component of aid received by the countries covered in this report

On the other hand the contributions of DAC donors to multilateral agencies were $01 billion less than the aid extended by these agencies in 1968 The net result of these bvo partially offshysetting disparities-the incomplete coverage of recipients in the case of bilateral aid and the excess of aid given over contributions received by multilateral agencies-accounts for the disshycrepancy of $13 billion between total worldwide aid received and given as shown in table II

Economic aid provided by Communist counshytries to nOll-Communist countries is showll by dOllor in the Given column in the Received column hmyever this aid is shown only in the

world total and not by recipient country and region Entries for Communist donors show estimated gross aid delivered to all non-Comshymunist developing countries as a total aid between Communist countries is excluded Estimates of Communist aid delivered on a worldwide basis are derived by ACDA from dollar estimates of aid commitments as published by the CS Deshypartment of State roughly adjusted on the basis of apparent marked differences in the past between aid commitments and actual deliveries by Comshymunist donors

Education

For both education and health national data have been compiled on a worldwide basis for public that is governmental expenditures only Very limited data are available on private spendshying (see footnotes 3 and 4 to table II)

The user should be cautioned that although both UNESCO Ilnd WHO provide respondent countries with standard data definitions the da to reported by these sources may not be fully COIIlshy

parable in terms of coverage and revisions of previOUSly published data often make comparisons over time for individual countries uncertain

Worldwide data for 1968 public education expenditures are not expected to be publicly available from UNESCO until late 1971 Except for the United States Varsaw Pact and some developing countries the expenditures shown in the present report are ACDA estimates based on the latest available dattt (generally 1967) provided to ACDA by UNESCO Projections for 1968 vere made on the assumption of a constant rado to GNP In a number of developing countries where 1968 data were available from AID these data were used in preference to earlier UNESCO data The Soviet estimate is based on budget data reported in the national statistical yearbook These data are converted into dollars at rates adapted from estimates by Abram Bergson and Morris Bornstein (see Conversion Rates page 35) Other Warsaw Pact figures are generally from published budget data converted to dollars using rough purchasing power factor ttpplicable to GNP as a whole

The entry for the United States is from the US Office of Educations Digest oj Educational Statistics 1969 edition

I I III 1 II

34

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 38: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

Health

Public health expenditures are drawn from a variety of sources and are not fully comparable from country to country and from year to year Capital as wen as current expenditures by all levels of government are included wherever data permit (In previous ACDA reports capital expenditures had been exclud(ld) The world and regional totals are believed to reflect reasonably accurate orders of magnitude

For 68 countries data in table II were prepared from local currency series published World Health Statistics Report Vol 23 No 11 1970 World Health Organization Gen(lva Data for 1968 W(lr(l not always aVlilable in th(l WHO report and numerous (lstimates for 1968 were project(ld by ACDA from earlier year data on the basis of GNP growth

AID provided data for 21 other countries These data however usually represent central governshyment expenditures and exclude expenditures by other levels of government

Data for three other countries are from official national budget sources

For 26 remaining countries (those marked e in table II) estimates were made on the basis of the average portion of GNP devoted to public health expenditures in other countries in the same region or in contiguous countries with similar economies

As with education the estimate for the USSR is based on budget data as reported in national statistical handbooks and converted to dollars at an estimated purchasing power equivalent rate for health services

The US figure is from UN ational Health Expenditures FY 1929-79 and CY 1929-69 Research and Statisticnl Note 25 December 14 1970 US Social Security Administration Washington

Popvlation

Population estimates for midmiddot 1968 are primarshyily from the United Kations Monthly Bulletin of Statistics August 1970 In selected cases AID modifications made on the basis of evaluations from US missions abroad were used The estimate for Mainland China was supplied by John S Airel based 011 his Estimates and Proiections of the Population oj Mainland China 1263-1986 US

Bureau of the Census International Population Reports Series P-91 No 17 Washington 1968

Armed Forces

The data are intended to cover military pershysonnel actually on duty including paramilitary forces where such forces add substantially to a nations military capabilities Reserves are exshycluded for all countries in the present report

Estimates for the number of men under arms were derived from data in The Statesmans Yearshybook MacMillan London (1963 ]966 1967 and 1968 editions) the Injormation Please Almanac and Yearbook Simon and Schuster New York (1965 1966 and 1967 editions) and The Institute for Strategic Studies The Military Balance London (1964 through 1970 editions)

Conversion Rates

For most countries official exchange rates were used to convert from national currencies to US dollars Alternative rates vere used for the Warsaw Pact and most other Communist nations including the Soviet Union and for several countries in Latin America and the Far East where official rates appear to yield unrealistic dollar equivalents have not been established or nre not in use

For the Warsaw Pact countries rough purshychasing power parities were used in place of official rates For the Soviet Union different conversion factors were used for GNP military expenditures public health and education These were adapted and updated primarily from dollarruble parities for the year 1955 estimated by Abram Bergson (The Comparative National Income oj the USSR and the USA Conference on Research and Vealth Toronto May 1970 forthcoming) and by 1orris Bornstein (A Comparison of Soviet and United States N atioual Product in the Joint Economic Committee compendium Comparisons of the United States and Soviet Economies Part II 1959)

It should be noted that the conversion rates for Soviet GNP are constructed on a different basis from those for military expenditures public education and public health As a result the GNP estimate is not directly compamble to the public expenditures shown for the Soviet Union Acshycording to the source (see GNP page 33 above)

35

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 39: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

GNP was converted at a parity reflecting an average of US and Soviet product compositions this is believed to provide the best single measure of the size of Soviet GNP relative to the Lnited States in dollars The conversion rates for military education l1ud health expenditures on the other hand arc based on the Soviet composition of spending 011 personnel and other outlay If Soviet GNP were converted to dollars on a comparable basis (that is with price ratios weighted by the Soviet composition of goods and serviceraquo it is estimated that GNP would be some 30~40 higher than that shown in the table (See also table II footnote 9)

For other Warsaw Pact countries conversion rates were derived from dollar estimates of GNP as provided by the source in constant dollars and converted to current dollars by use of the US GNP deflator and national currency estimates of GNP The latter were based on official data on net material product and ratios of the latter to GNP as estimated by Alton and associates for earlier years (For sources see Thad P Alton op cit under GNP)

The implicit rates derived in this manner from dollar and national currency estimates of GNP were used for public education and public health These rates were further modified when applied to military expenditures by eliminating turnover taxes from GNP to approximate a factor cost valuation

The conversion factors used for Argentina Brazil Chile Colombia Indonesia Peru and Uruguay are average annual free market rates cited in World Ourrency Charts American Intershynational Investment Corporation San Francisco June 1970

It is recognized that the official exchange rates used for most countries 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 devalun tions produce such large changes that trends are distorted

Ideally to compare and sum up the GNP and military and other public expenditures of various countries outlays in the respective cllrrencies should be converted to n eommon eurrellCY by

use of purchasing power pantIes which would reflect the internal purchasing powers of the curshyrencies for all goods and services making np GNP Furthermore these parities should differ for each component sector of GNP since the approshypriate parity depends 011 the particular mix of goods and services involved

However purchasing power pnrities of this type are difficult to estimate and nro availnble only for a relatively few countries (In addition to the estishymates for the Soviet Union cited above the wellshyknown calculations for the United States and major European countries and Japan by 1Iiltoll Gilbert Irving Kravis and associates for the OECD are virtually the only ones available and they are now relttively old)

An attempt was made in previous ACDA reshyports in this series (for 1965 and 1966-67) to estimate such parities for n broad number of countries and to use these pnrities to convert national aggregates into dollars (A description of these estimates is nvailable on request) For many countries however a sufficiently relinble basis for estimnting purchasing power pnrities does not yet appenr to be available and the prepamtioll of world ostimntes on this basis has been discontinued for the time being It is hoped that improvement in methods of conversion cnn be made in future reports

Prices

Militnry spending and GNP from 1964 through 1970 in eonstant 1968 prices as shown ill table I ami charted ill the text wcre approximated through the use of US GNP deflators for the Cnited States nnd Communist couutries and average adjustment factors for the tlevelope(l nIHl less-developcd groups of non-Communist counshytries The avemge adjustment fltctOrs for these latter two groups of countries yere derived by ACDA from GKP growth rntes estimated by AID for these group 011 a worldwide bnsis using constant 1968 prices and exchange mtes (as reshyported in AID Gross National Product Growth Rates and Trend Data by Region and Oountry RC- W-138 April 30 1970) These growth mtns togethrr with growth rntes derived from data at ellrren t prices and exchange rntes as set forth in table IV and estimnted for recent years yield factors for converting current dollars into constant

36

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37

Page 40: 5t - U.S. Department of State | Home Page 5t antral d Oi a am nt A GERARD SMITH, V ir-eoto/' PHILIP . J. FARLEY, Del),l£ty Di1'ectOl' ... at tlw expense of populations \\'hose an~l'!lg()

dollars which adjust for both price and exchange rate cbanges

For the Communist countries whose estimates in current dollars are intended to reflect current purchasing power equivalence the implicit price deflators applicable to US GNP (Economic Report oj the President Washington February 1970 and a preliminary Department of Commerce estimate for 1970) were used to convert to 1968 dollars

For all groups the same deflator was used for GNP and military expenditures It should be noted that the difference between the current dollar and constant dollar series in table I

does not fully reflect price changes since the current dollar series incorporates some changes in conversion rates which partially offset price changes The changes in rates result from changes in official exchange parities and from the usc of purchasing power parities for Communist and several high-inflation developing countries which take account of relative price movements

Estimates in constant prices ill table I are in terms of 1968 dollars to facilitate comparison with the individual country data ill table II It is roughly estimated that the world data in table I would be about 12 percent higher ill 1970 dollars than in 1968 dollars

U S GOVERNMENT PRINTING OFFICE 1971 0 418middot790

37