The main objective of this research is to examine high level of military and defense expenditure compared to other sectors in Sri Lanka during the 30-year period of civil conflict as well as in the post-war period. Even though Sri Lanka is currently facing an economic crisis, more money has been allocated for military and defense expenditure compared to other sectors for the year 2023.
As a consequence, this study is based on studying what causes more money to be spent on military and defense expenditure in such a context. This research is done in accordance with qualitative and quantitative research methods and academic research, educational books and journals etc. are utilized for data collection. dependency theory, patron-client relationship, political economy, geo-politics, globalization etc. were used to analyze the data. It can be defined as a situation in which a number of factors affect the social, economic and political spheres of Sri Lanka.
Inhaltsverzeichnis
Introduction
01. History
02. Education
03. Political Agenda
04. Economic Affections and Implications
05. Geo-Political Context
06. Western Affections
07. National Security and Need for Military Expenditure
References
Abstract
A state's military and defense spending is a mirror of the state's economic, social and political conditions. The relationship of a state's military and defense expenditure to its economic development is relative. This is because the economic development and underdevelopment of a state is directly related to the defense expenditure. The main objective of this research is to examine high level of military and defense expenditure compared to other sectors in Sri Lanka during the 30-year period of civil conflict as well as in the post-war period. Even though Sri Lanka is currently facing an economic crisis, more money has been allocated for military and defense expenditure compared to other sectors for the year 2023. As a consequence, this study is based on studying what causes more money to be spent on military and defense expenditure in such a context. This research is done in accordance with qualitative and quantitative research methods and academic research, educational books and journals etc. are utilized for data collection. dependency theory, patron-client relationship, political economy, geo-politics, globalization etc. were used to analyze the data. It can be defined as a situation in which a number of factors affect the social, economic and political spheres of Sri Lanka. Therefore, it may be concluded that all these domains and factors are directly related to the existing political system in Sri Lanka as well as to the client-client relationship.
Key Words: Economic, Military Expenditure, National Security, Patron-Client Relationship, Political Sphere,
Introduction
Is defense expenditure essential for a country? Should a country's defense expenditure be lower than other social welfare expenditure? Isn't military expenditure a component of social security or social welfare? Is defense expenditure reduction feasible in Sri Lanka? Can it be done through social change? A number of issues etc. are problematic situations that need to be solved no matter which government comes to power. In the budget announced by the current president Mr. Ranil Wickramasinghe government for the year 2023, 539 billion Sri Lankan rupees were allocated to the Ministry of Defense and the Ministry of Public Security (Sri Lanka Budget, 2022)1.
Literature Review
What is the meaning of military expenditure? According to the Stockholm International Peace Research institute; military and defense expenditure can be interpreted as follows;
-The armed forces, civil defence, including peace keeping forces
-Defence ministries and other government agencies engaged in defence projects
-Paramilitary forces when judged to be trained, equipped and available for military operations
-Military space activities: - Military research & development, military construction, military aid (in the military expenditures of the donor country)
-Personal: - Military & civil retirement pensions of military personnel, social services for personnel & their families, operations & maintenance
-Other expenditures: - Veterans benefits, demobilization, conversion of arms production facilities, destruction of weapons2
One of the few core responsibilities of the federal government mandated by the Constitution of the United States is “to provide for the common defense. Upon commissioning, every American military officer swears an oath to “support and defend” this Constitution. Accordingly, the core mission of the American military is to protect and defend our nation. This means deterring potential aggressors and, if deterrence fails, fighting and winning wars.
Arunatilake et al (2001 shows that by the late-1990s, almost two decades of civil war in Sri Lanka had twisted a heavy economic cost: the physical destruction of economic infrastructure, lost production, foregone investment, the flight of human capital, and the diversion of vast resources to military purposes were quantified as over a full year’s worth of lost GDP. Selvarathnam S (2007), World Bank (2004) and other studies quantified the cost of the war as a loss of between 2-4 percent of economic growth per year, implying that ceteris paribus, Sri Lanka’s 2002 GDP of $900 per capita was half of what it would have been if there had been no war.
Ekanayake E.M.S A (2000) analyzes the impact of conflict on poverty in Sri Lanka. Poverty in Sri Lanka is predominantly a rural phenomenon; the rural sector accounts for about four-fifth of aggregate poverty. The share of the rural, urban and estate sectors in the total number of the poor in post-independence Sri Lanka, the dominant Sinhala ethnic group excluded the minorities in the formulation of constitution and policies in the national government. As a consequences ethnic conflicts arose in the country and the mid- 1980’s witnessed the emergence of a civil war.
Consistently, it is clear from the above interpretation related to military and military expenditure (military budget), also known as a defense budget, is the amount of financial resources dedicated by a nation to raising and maintaining an armed forces or other methods essential for defense purposes (company acquisition, manufacturing, cyber security, Data management, Data collection & store, personal training, infrastructure facilities when using for the govern ext.) Adam Smith, a father of free-market economics, identified the defence of society as one of the primary functions of government and a justification for reasonable taxation.
Research Methods & Methodology
It is difficult to collect war related data in Sri Lanka in actual figures. This study utilizes the data, given in previous studies and other sources such as reports from World Bank, central bank of Sri Lanka and department census and statistics of Sri Lanka. Poverty data to Sri Lanka is collected secondary sources of department of census and statistics, Sri Lanka. Data for military variable is taken from independent studies of World Bank, Nation master and Rajesh Venugopal (2011). Data covers 20 years for time series analysis and 23 observations based on districts data to cross sectional analysis in 2010. Poverty data for North and East province is available from various years.
After 2009, it is difficult to get accurate figures on military and defense spending in the post-war period. The main reason is that individual governments do not provide specific explanations regarding it. The annual budget and interim budget documents have also been used as secondary data sources. It can also be identified as a basic challenge that had to be faced in conducting the research. The research is based on qualitative data and theories like patron-client relationship, dependency theory, political economy and hegemony are used to analyze the data. This study engages with some statistical tools, graphs, and qualitative approaches to prove that military. It is easy to build a conceptual framework in order to make the results of the research more successful as well as to build a more analytical end.
Conceptual Framework
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Research Findings
When studying Sri Lanka's defence spending and reality, it can be explained through several main contexts. Namely that;
-History & Education
-Political Agenda
-Economic Affections & Implications
-National Security
-Geo - Political Context
-Geo - Topological
-Western Affections
-Need for Military Expenditure
It is expected to study this based on the ideas, debates and ideologies of the Sri Lankan society.
01. History
Since the end of the Cold War in 1990, defense outlays have declined both as a share of government spending and of the economy’s total output (GDP). This has made room for other forms of public spending, such as on education, health, and infrastructure.3 Nevertheless, Sri Lanka's problem is not only during the 30-year war period but also after the war till now, the military and defense expenditure is high compared to GDP and other government expenditure. After the end of the two world wars, the influence of other international tensions ended after the 1970s, and military spending in many countries of the world declined. Nevertheless, since the 1990s, the governments of the world have tried to allocate more money for military and defense expenses.4
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Figure 01: (World Military Expenditure, 1988-2019)
During the colonial and neo-colonial periods of Sri Lanka from the time of King Vijaya, various methods were used to manage military and defense expenditure. During the colonial period in Sri Lanka, the British administration used various methods to manage the defense and military sector. Clearly, that a series of policy lapses followed by Sinhala-Buddhist governments since independence led to a Sinhala-Tamil war (Uyangoda,2009). The question is whether the government that have come to power since 1948 have been able to accurately reflect the actual Sinhala-Buddhist public opinion, despite being historically defined as a Sinhala-Buddhist government. The best example is the government of Bandaranaike.
Although he was born from Catholic parents, he established the ‘Sinhala Mahasabha’ and won the five great powers (Monks (සඝ), Doctors (වෙද), Teachers (ගුරු), Farmers (ගොවි), Workers (කම්කරු) by introducing the language policy (Sinhala Only Act). Therefore, it can be concluded that the political leadership implements its agenda and government policies in such a way that problems arise in the society in order to lead and control public opinion in the way they want.
During the Colonial period of Sri Lanka, the English administration utilized several methods to manage the defense and military sector. It is clear that a series of policy failures legislated by the Sri Lankan governments since independence led to a Sri Lankan civil war. A number of factors such as the agrarian movement implemented by the D.S. Senanayake government as well as the language policy ( Sinhala only Act ) followed by the Bandaranaike government influenced the military and defense expenditure to rise from one regime to another. The increase in the military and defense expenditure can be explained through the following data;
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Figure 02 : Central Bank Report, 2021
In the 1980s, at the war’s inception, the military consisted of 30,000 personnel. Now, despite the no-war situation, this figure has ballooned into hundreds of thousands.5 Sri Lanka's military and defense expenditure was high as a percentage of GDP during the period 1990-2000 and the L.T.T.E. war situation was a primary factor for that. A number of structural reforms carried out by the state, as well as relations built through international cooperation during the period of the war, can be identified in military and defense spending. 15% of the total government expenditure is earmarked for military and defense expenditure. Among the recommendations made by the International Monetary Fund, debt sustainability is an important condition and for that, it is extremely important to manage military and defense expenses.
Even during the covid-19 pandemic in 2022, the government spent a lot of money on military expenses and currently the government is spending more than 2% of the total gross domestic product on military and defense expenses. Sri Lanka does not have a military industrial sector or similar facilities to manufacture arms or ammunition. Historical data can be utilized to demonstrate how money was spent for defense and military expenses because of a number of such reasons.
02. Education
Education is a key factor for boosting country's economy and is considered as one of the necessary conditions to achieve better outcomes on social welfare. The social benefits of education provide a powerful set of arguments in favor of public investment to achieve the social optimum (Harsha, 2004). Education and history are two distinct yet related concepts. The historical data on Sri Lanka's armed forces and defense spending so suggest a mutually beneficial link with education. In other words, it is expected to conduct this research with the hypothesis that military and defense spending is related to both educational opportunities and educational gaps.
With the language policy of making Sinhala the primary language in 1956, educational opportunities that were reserved only for the Sri Lankan elite began to center around the have not of the society. For that reason, there was an opportunity for a large number of students to get university education under the Sinhala language. Nevertheless, how to manage such graduates or connect them with the society? None of the governments that came to power after 1960 had any understanding of this.
For that reason, after 1970, governments invited graduate youths for an agricultural revolution and this problem also primarily influenced the rise of the Janata Vimukthi Peramuna (JVP). In such a situation, the youth community took the opportunity to join the security forces or armed services. On the other hand, the amount used by the government for its security and military activities was increased to suppress the rise of Janatha Vimukti Peramuna (JVP). From the 1970s to the 1975s, the government spent $0.03 billion on military and defense activities. Again the expenditure increased after the 1980s and by 1985 it had risen to $0.19B.
In 1994, during the tenure of President Chandrika, military and defence expenditure increased again and by 1995 it was 0.76 billion. As of 2007, it is 1.07 billion. Due to the intense period of war approaching after 2005, more than 100,000 people were recruited for the security services. Since the 1980s, the direction of Sri Lanka's military and defence spending has become increasingly complex, and with the Mahinda Rajapaksa regime in 2005, a number of trends have emerged. Representing the rural community, a large number of young people from low-income families were given the opportunity to access jobs in the security sector. The peculiarity is that only passing grade 9 is considered as an educational qualification.
In 1986, the National Home Guard was started by the Minister of Defence, Mr. Lalith Athulathmudali, with the aim of protecting the border villages from terrorist acts, with about 5000 members. The Civil Defence Force can be identified as a new division introduced to the security services. The Civil Defence Department was established on September 13, 2006 under Gazette No. 1462/20.6 No educational qualification was required to join it and almost 50,000 unemployed youths had the opportunity to join. However, after the end of the war, no positive proposals have been followed regarding the management of this organization and its members. Currently, it has around 36,000 members who are engaged in agriculture, welfare and various industries. Examples include brick cutting, cultivation, and other self-employment. Accordingly, it is crystal clear that education shows a direct relationship with Sri Lanka's military and defence spending from the past until now.
03.Political Agenda
There is already an opinion in the society that the discourse related to the current defence and military spending in Sri Lanka is connected with a political agenda. Sri Lanka's political agenda is a tool that maintains the patron-client relationship well. It can be explained through Sri Lankan examples that the defence and military expenses were used in practice to maintain the relationship between the politician and the voter.
Since the 1960s, unemployment has transformed into a social crisis due to reforms in the education sector. The political space of Sri Lanka was able to maintain it through a political agenda for a long time. Rural unemployed youths were given the opportunity to join the Armed Forces by various governments and it intensified by starting a Civil Defence Department in 2006 and giving the opportunity to join the Civil Defence Force even to youths without formal education. During the civil war, the armed forces were used as a dominant tool to maintain the patron-client relationship in the rural society.
04. Economic Affections & Implications
Sri Lanka's military and defence expenditure is linked to economic impacts and implications. In 1990, the defence force was about 22,000 and by 2012, it had increased to 300000. Arunatilake et al (2001 shows that by the late-1990s, almost two decades of civil war in Sri Lanka had twisted a heavy economic cost: the physical destruction of economic infrastructure, lost production, foregone investment, the flight of human capital, and the diversion of vast resources to military purposes were quantified as over a full year’s worth of lost GDP.
Arye L. Hillman (2002) explains William Easterly book and shows why poverty persistence in developing countries. He pointed out government and political elites who use their poor as hostages from personally benefits from aids resource and debt relief. Military and defense expenditures are directly and indirectly as well as positively and negatively related to economic impacts and implications. Sri Lanka's military expenditure is not only related to controlling poor rural society but also related to other infrastructure. The Famous economist, Robinson in 1960s had stated that Sri Lanka had tasted fruits (welfarism) without growing tree (Economic growth). Economic growth and welfare are similar to two railways that are connected. It is obvious that the expansion of jobs in the defense sector as a response unemployment has left us with a lot of significant economic issues to deal with today. Some advocates for decreased military expenditures might tie it to a real or potential increase in the mortgage rates people pay, given the relationship between Treasury yields and commercial lending.
According to the state budget of 2023 in Sri Lanka, there are various logical explanations for why the highest allocation has been made for military and defense expenses during a severe economic crisis. The Constitution also does not have the ability to explain the legitimacy or legality of the current President. Since the society can also be understood whether it is legal for a person without a mandate to be appointed to an important position in the country. On the other hand, the mandate of 69 lakhs ended in a social crisis and social revolution. Nevertheless, the government is concerned about the change expected by the people and the control of public protests in a background where their goals are not realistic.
For this, the government must import the required equipment (tear gas, weapons, blankets, bullets and other equipment). Because Sri Lanka does not have that technical or productive capacity. Developed countries in the world produce arms and other defense equipment and contribute to the national economy by importing them to other countries.
However, it is also difficult to implement these proposals because of the government's lack of understanding of these investment activities in Sri Lanka. In such a background, it can be analyzed that they will have to use protection methods this year more than last year in order to get rid of political orphans in accordance with their political agenda. Also, the necessary facilities should be provided for the members of the security sector involved in the process. Delays or wage cuts cannot be applied to the defense sector as compared to other sectors because the political agenda is managed on the basis of their situation.
On the other hand, the government should also be held responsible for failing to make effective use of the experience and expertise of the security sector in such a crisis. Since Sri Lanka's security sector has a very mature experiences, it's unproductive to use it to unnecessarily protect elites or institutions. According to the Silva K.T, (2003), ethnic conflict in Sri Lanka is embedded in and is an expression of existing social, political, economic and cultural structures. Since 1983 the war has had a devastating effect on all ethnic groups in the affected areas causing widespread misery, inclusive of displacement, loss of property, injury and deaths, and break up of communities, During the civil war period, welfare allowance is given to the wives, children and parents of the deceased members of the security forces, and it is not easy to maintain such conditions continuously in the current situation of Sri Lanka.
05. Geo - Political Context
Increasing military and defence expenditure is a fundamental trend that can be seen in the states as a result of the geopolitical relationships and competition that exist between the states of the world. National security now has a higher economic value since geopolitical relationships and competition are closely tied to a state's sovereignty. For Sri Lanka’s military and defence costs, received a number of foreign subsidies from the start of the civil war until 2009. Rajiv Gandhi's introduction of the 13th amendment to control the civil war, the 2004 peace negotiations mediated by Norway, and India's engagement in the Sri Lankan civil war process all highlight the geopolitical significance of Sri Lanka for military and security matters.
After Sri Lanka's civil war, a significant debate about human rights developed in the international world, and a number of issues including the militarization of the country's northern region and the Sri Lankan army's seizure of civilian lands were challenged.7 In relation to Sri Lanka's national security and sovereignty around the time of the Easter attack, issues over geopolitical identity resurfaced, and one of the main criticisms was that the country's security apparatus had weakened since 2015.
This can be explained on the basis of the provisions set aside for security. In 2014, defence expenditure was 2.4 million dollars, which increased to 2.6 million dollars in The 2015 election history can be seen as a situation that influenced it. After that, it was 2.1 from 2016 to 2017, and 1.8 in 2018 and 2019. There was a shortfall in the allocated funds because the Sri Lankan government had provided the necessary retirement facility for members of the security forces in 2015.
The foreign policies followed by Sri Lanka can also be identified as influencing the geopolitical relationship. It is clear that the situation has a direct impact on defence spending, especially as the foreign policies of the governments that come to power are oscillating between the two main ideologies (capitalism & socialism). Since Sri Lanka has already become a participant in the power competition between China and India, Sri Lanka's military research as well as modern technical methods should be introduced to it. For instance, China should design advanced technical methods such as the modern technical military operation systems planned to be built near the Hambantota port.
According to Raoul Prebish's dependency theory (1960), Sri Lanka is a periphery country. The government system of the world is classified into two main categories, centre (core) and periphery, and the centre represents the developed states. What makes it special is that despite their limitations in terms of natural resources, they are ahead in terms of soft power. Nevertheless, periphery states are developing states with geo-political importance. The military and technical knowledge of those states is limited. There is no development in their political culture either. This situation is directly related to war and military expenditure.
Sri Lanka also has such a problematic situation. It is clear that geo-political relations directly influence military and security decisions as well as policy making. Currently, China and India can be identified as the decisive forces in Sri Lanka's geo-political relations. Because of the friendly relationship between India and America, Sri Lanka has to face the ambitions of the two parties through India.
06. Western Affections
Although the geopolitical context and Western influence are two interrelated phenomena, this influence can be separately linked to military and defence spending due to the existing dynamics and trends of the international community. America's influence can be uniquely recognized in the Western influence, because the ambitions of many powerful organizations such as the United Nations, NATO, the International Monetary Fund, the World Bank, etc. are primarily decided by the Western powers.
In addition, a number of non-governmental organizations are currently expanding on the influence of America. In particular, all their policies and measures are linked to developing countries and not solely on the basis of its welfare or security. There are a number of geo-political implications evident in it, both directly and indirectly. Especially due to the current power competition in the world, the western states are studying the latest ways to achieve their ambitions.
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Figure 02: Defence Budgets in World Countries, 2023 8
Apart from China and India, the major powers of the world are Western countries. Third world countries like Sri Lanka have to constantly face their policies and actions. Such situations directly affect Sri Lanka's military and security policies because of the similarities and disparities between Sri Lanka's national security policies and foreign policies.
07. National Security & Need for Military Expenditure
National security is essential to protect the people and the nation from internal and external threat. Similarly, security is the basis for the smooth communication of economic agents and functioning of market activities. It is also an essential factor that contributes to economic growth. National security is a very sensitive issue of a state. Nevertheless, the problem is that Sri Lanka's national security is directly related to the political agenda. For instance, changes have been made in national security to suit the security of the current government.
A state's military and defense expenditure must also include emergency and supplementary expenditure. For example, America has included these costs in its budget since 2010. Afghanistan, Iraq, as well as Ukraine at present, are provided the necessary aids through this policy. A major argument for military and defense expenditure is that it is vital to a nation's security. Because of the national security of a state is a major condition influencing the future of that state. The need for military and defense expenditure is a vacillation between theory and practice (pragmatic scenarios). This can be explained with ‘Maslow's needs theory’. The hierarchy of interests of the people living in a state is a relative thing.
As the national security of a state is determined by the existing social, economic and political situation of a state, the relationship of military and defense expenditure with those components varies. Arguments have arisen regarding the necessity of military and security needs in the post-war period compared to the war period of Sri Lanka. Because it is clear that Sri Lanka's political system is also strong enough to justify such conditions due to the obstacles and challenges to be faced in the post-war period.
Sri Lankan politicians also worked to rationalize the need for military and defense expenditure after the 2019 Easter attacks. Especially the political change that happened in 2020 is based on the necessity of military and security situations. It is clear that the entire political process in Sri Lanka was driven not only during the war but also during the post-war period on the basis of military and security needs. So, why does such a situation continue to be maintained in Sri Lankan society? That is the problem related to the main topic of this analysis. It is clear that a combination of all the phenomena mentioned above drives Sri Lanka's military and defense needs.
Accordingly, it is clear that the need for Sri Lanka's military and defense expenditure is a phenomenon that maintains a broad relationship with Sri Lanka's political system even at this moment. The political system has realized that the rural society is the most sensitive structure especially when it comes to military and defense expenditure. The primary factor affecting this is the patron-client relationship maintained between the village and the politician in Sri Lanka.
Sri Lanka's political system is supported by national and international facilitators. The national and international facilitators include all the elements mentioned above and it can be concluded that the inter-relationship between those elements influences the rise of military and defense costs. And it is clear that the military and security requirement as well as the expenditure is not only the maintenance of the security forces or the welfare because it is also related to the developed state's modern technology, production as well as research activities.
Eventually, it is clear that military expenditure is highly valued compared to other expenses in Sri Lanka, and that it is only used to maintain the political system or structure, and its effect is directly related to economic stability.
References
Books
Amartya Sen. (1999). Development as freedom, Anchor Book, NY
Arunatilake, N., S. K. Jayasuriya, and S. Kelegama. (2001). The Economic Cost of the War in Sri Lanka. World Development. 29: 1483-1500
Dileni Gunewardena (2007) Consumption Poverty in Sri Lanka 1985-2002, Working Paper Series No. 14- 2007, CEPA, Colombo
Rajesh Venugopal. (2011). Military Fiscalism and the Politics of Market Reform at a Time Civil War, Economic and Political Weekly (EPW) vol 49, issue 49.
O’Sullivan, M. (2001). Sri Lanka: Civil Strife, Civil Society, and the State 1983-1995 in F. Stewart and E.V.K. FitzGerald (ed.), War and Underdevelopment, Oxford University Press
Patricia, Justino. (2012). war and poverty, Institute of development studies, working paper.
Sarvananthan, M. (2008). Economy of the Conflict Region of Sri Lanka: From Embargo to Repression. East West Center Policy Studies
Reports
Worlds Bank & Central Bank Reports
Journal Articles
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8 https://www.bing.com/ck/a?!&&p=a6ddb7d68ab9858eJmltdHM9MTY3NTkwMDgwMCZpZ3VpZD0wNzRlZTljYS1hMGM2LTY3NGMtMmY1Zi1mYmQ0YTE5YzY2YWEmaW5zaWQ9NTM4MQ&ptn=3&hsh=3&fclid=074ee9ca-a0c6-674c-2f5f-fbd4a19c66aa&psq=top+defence+budget+in+2022&u=a1aHR0cHM6Ly93b3JsZHBvcHVsYXRpb25yZXZpZXcuY29tL2NvdW50cnktcmFua2luZ3MvZGVmZW5zZS1zcGVuZGluZy1ieS1jb3VudHJ5Izp-OnRleHQ9VGhlJTIwdGVuJTIwY291bnRyaWVzJTIwd2l0aCUyMHRoZSUyMGhpZ2hlc3QlMjBkZWZlbnNlJTIwc3BlbmRpbmcsJTI4JTI0NDklMjBiaWxsaW9uJTI5JTIwOCUyMFJ1c3NpYSUyMCUyOCUyNDQ4JTIwYmlsbGlvbiUyOSUyME1vcmUlMjBpdGVtcw&ntb=1
- Quote paper
- Sachini Geethanjalee (Author), 2023, Why Defense Cuts are not in Sri Lanka's Interest. The Reality of the Military Expenditure in Sri Lanka, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/1353902