Scholarly record

THE INCREASE TENDENCY IN THE DEFENCE BUDGET AND STATE SECURITY AND ITS INFLUENCE ON ECONOMIC DEVELOPMENT IN THE CURRENT POLITICAL CONTEXT. THE CASE OF THE EU AND NATO MEMBER STATES INWESTERN EUROPE

O. R. GLONT

Abstract

This article highlights some aspects of the existing correlation between increasing the effort of allocating a larger defence budget to governments and the effect on economic development and material well-being of the population. Following the basic international rules imposed by NATO on the Member States, each state tries to adapt it to its internal conditions. The results of the existing relationship between defence spending and the economic development index are presented through the statistical analysis of twenty countries in Western Europe and NATO member states. Based on observations on the development index of economic welfare (HDI) and the methodology using regression analysis and meta-analysis method through the MD model, the period 2009-2016 has been identified as a period in which there is a causal relationship between the dependent variable positive effects, defence spending and HDI. It was applied in countries such as Denmark, Luxembourg, Malta, developed countries or structurally, organizationally, regionally different from the others in Western Europe. Moreover, the vast majority of states was remarked by a one-way relationship with effects such as Iceland, Portugal, Turkey, Austria and Ireland, i.e. developing countries. The results confirm that macroeconomic factors and geostrategic ones, including pole shift of power from west to east, demographic changes and resource constraints, represent elements that will reconfigure profoundly trends defence expenditures. Hence we can observe changes in less developed areas of the world where mega-trends will bring instability and will put additional internal and external pressure, on the challenges of defence and security. Regarding policy implications, the results we are welcome decisions by governments analysed for a more precise analysis of the effects of maintaining growth trend and focus of the allocation fund defence states.

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