Increased Threats Drive Higher Expenditures
In recent years, threats to national and global security have escalated significantly. From conflicts in the Middle East and Eastern Europe to threats of terrorism and cyberattacks, countries around the world now feel less secure. In response to these growing dangers, spending on security measures by governments and private organizations has risen substantially. Experts estimate that global security expenditures topped $1 trillion for the first time in history in 2017 and continue climbing higher each year. The primary driver of higher costs is countries allocating greater portions of their budgets to Security Spending  as fears about the changing geopolitical landscape intensify.
Defense Budgets See Boosts Across Continents
Nearly every developed nation has boosted their defense budgets over the past five years. From the United States to China, Europe and elsewhere, leaders are fretting over new security dangers and seeking to strengthen their nations’ military capabilities in response. The U.S. remains the globe’s largest spender, allocating over $600 billion to the Pentagon in 2018, though China’s expenditures are rising swiftly as well. Much of Europe has awoken to renewed security threats coming from Russia and is investing more after years of leaning on the United States’ alliance structure for protection. Countries like Germany, the United Kingdom and others have notably hiked defense outlays to replace aging equipment and boost troop numbers. Even smaller nations like Norway are chipping in more as unease about bordering rival Russia continues running high.
Rise of Non-State Actors Spurs Expansion of Counterterrorism Efforts
In addition to nation-state threats, the rise of terrorist and rebel organizations has prompted substantial spending increases aimed at countering those dangers. Groups like al-Qaeda, ISIS and Boko Haram have waged lethal campaigns across multiple continents, sparking fearful reactions from targeted governments. As a result, counterterrorism has become a booming sector for public safety and intelligence agencies. The United States continues leading the way in devoting generous resources towards tracking would-be attackers and addressing root causes of radicalization. Western European states have also invested heavily in domestic security forces, surveillance technologies, and international military cooperation focused on dismantling militant networks abroad. Even nations that once thought themselves out of harm’s way, like those in Southeast Asia, have recognized new risks and bolstered relevant agencies accordingly.
Private Sector Security Costs Also Escalating
It isn’t just governments that are spending more to boost safety in the current environment. Private firms and organizations are likewise allocating greater sums towards protecting facilities, infrastructure, information systems and personnel from 21st century perils. While publicly less visible than military outlays, private security expenditures from businesses are thought to comprise a significant portion of overall security costs globally. On the physical security front, companies are hardening structures, expanding guarded perimeters, enhancing access controls and investing in robust monitoring systems. In virtual space, the cybersecurity industry has swelled massively in recent years as corporations aim to contain mushrooming risks from hacker threats, data theft and online disruption. Major global brands now assign security enormous importance and routinely dedicate enormous budgets and staff towards shoring up defenses amid today’s swirling dangers. The private security marketplace overall has become a multi-billion dollar profit center supplying in-demand safety solutions.
Balancing Security Needs With Social Pressures Remains a Challenge
While most agree that higher security spending is broadly necessary given emergent threats, paying for it all presents challenges—especially as fiscal prudence gets tested. Taxpayers and legislatures closely scrutinize rising defense outlays, seeking reassurance that every dollar is being well-spent and not wasted. In some countries with generous social safety nets, voters are reluctant to significantly cut benefits even in the face of new security realities. Meanwhile, human and civil rights organizations warn that overbearing counterterrorism regimes can impinge on liberties if not properly overseen. As dangers persist into the 2020s, balancing security, fiscal constraints and civil freedoms will remain an ongoing balancing act for governments. Proving that expenditures are rigorously overseen, targeted, and delivering tangible benefits will be key to sustaining public and legislative support amid inevitable budget pressures down the road.
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- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
