The economic cost of war
‘I
suggested humorously the other day that if we spent $900bn [a year] on
development, we probably wouldn't need to spend more than $50bn on
defence.’
James Wolfensohn, president of the World Bank in 2004, commenting on the fact that in reality these figures are reversed*
The world currently spends just under a trillion dollars each year for military purposes.* That’s five times the estimated cost of achieving the UN’s Millennium Development Goals by 2015.*
One-fifth of global military spending could halve extreme poverty throughout the world, ensure that all children complete primary education, reduce maternal and infant mortality by at least two-thirds, halt the spread of HIV/AIDS, and deliver clean drinking water and sanitation to 500 million people.*
A further one-fifth of global military spending would help speed the world’s transition to a sustainable energy base, avoiding the worst effects of global warming. The same amount again would go a long way towards solving the world’s major environmental problems.
In other words, an investment of $600 billion a year over the next 10 years could dramatically improve the lives of billions of people and lay the foundations for a sustainable global future. That would still leave $400 billion a year for military expenditure. But if we invested that much in peace, we might find we had little to fight about.
See also our sections on The arms trade and Conflict resolution.