This monograph explores the impact that oil revenue had on the national defense spending of five oil-exporting countries: Venezuela, Iran, Saudi Arabia, Kuwait, and Nigeria. Despite periods of falling oil revenues, these countries typically did not lower defense spending. In some cases, defense spending increased sharply, or the rate of decrease was much lower than the drop in oil revenues. This condition creates challenges for national security professionals. If nations face falling oil revenues and still have the will and ability to expand their military or security capabilities, then they might do so through the sacrifice of domestic spending or regional stability. Economic sanctions, worldwide recession, or falling oil demand may not stop these oil-exporting nations from purchasing weapons and creating large security forces. Although oil might have been a key to provide past or future earnings expectations to fund defense, perhaps there are other reasons why nations want relatively high defense spending levels despite lower oil revenue. The politics of oil and its impact on government control, regional threats, national interests, and other strategic factors may explain why these nations pursue defense spending despite falling oil revenue. Policies that attempt to limit oil revenues of potential enemies alone may not be sufficient to inhibit them from creating regional instability through expansion of their defense capabilities. Hopes for reduced defense expenditures, by countries like Iran, as a result of a drop in energy demand seem to be diminished by these findings. A more complex picture emerges that forces analysts and policy makers to search more broadly for options to stem potential arms races that may be fueled by the riches of oil-exporting countries.
Do Oil Exports Fuel Defense Spending
2010
63 pages
Report
No indication
English
Business & Economics , Behavior & Society , Military Sciences , Exports , Crude oil , Military procurement , Military forces(Foreign) , Military capabilities , Income , Developing nations , Military budgets , Saudi arabia , Venezuela , Nigeria , Demand(Economics) , Iran , Instability , Enemy , Political alliances , Threats , Government(Foreign) , Policies , Economic sanctions , Kuwait , Oil revenues , Defense spending , Oil-exporting countries , Oil exports , Oil profits , Regional instability , Oil prices , Rentier economies , Rentier nations , Elasticity of demand , Enemy nations , Aggressor nations , Oil exporters
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