Country Survey: An Economic Analysis Of Military Expenditures In The Netherlands, 1990--2009

Robert Beeres, Eric Jan De Bakker, Myriame Bollen and Eibert Westerink

Defence and Peace Economics, 2012, vol. 23, issue 4, 365-387

Abstract: This article examines the pattern of expenditures for national security of the Netherlands from 1990 until 2009. In 1990, military spending amounted to 2.7% of Gross Domestic Product (GDP). In 2009, almost two decades later, this ratio dropped by more than a full percent. During this period, the reduction of funds available for national security was in concurrence with the Dutch government’s spending policies. The Netherlands Armed Forces (NAF) changed dramatically in terms of capabilities, size, equipment and personnel in this two-decade time span. Our investigative results indicate that in spite of this transition, no significant changes have been implemented since 1990 in how the Dutch defence budget is allocated for the Navy, Army and Air Force. Furthermore, the mix of expenditures for salaries, operations and maintenance, as well as those for capital investment, stayed roughly the same for the duration of the period studied.

Date: 2012
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DOI: 10.1080/10242694.2011.607283

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