Outside In | As indebted governments boost military spending, what about climate change and other pressing needs?

As Russia’s cynically named “special military operation” in Ukraine grinds ruinously on, the direct toll in lives, dollars and the dislocation of the global food trade continues to mount. The cost of military and humanitarian support to Ukraine, according to the Kiel Institute, had risen to US$185 billion by the end of May.

But of even greater concern, the indirect cost runs to trillions, in particular as governments boost defence budgets in the name of national security. For arms producers, their lobbying efforts have rarely been more effortless and rewarding. But few citizens can share their joy.

It means more procrastination across the “rich” world over unkept promises to provide US$100 billion a year in climate finance to developing economies struggling to keep their heads above water – sometimes literally.

It means dollars not available to rebuild healthcare after Covid-19, and protect us against the next pandemic. It is a major contributor to the big squeeze on government budgets across the world, with few political leaders clear on where new funds for defence will come from, and where spending will have to be cut. The challenges are made worse by the surge in inflation, which has sent debt-service costs soaring.

Among the first to boost military spending after Russia’s invasion of Ukraine was Germany, with Chancellor Olaf Scholz promising a €100 billion (US$112 billion) increase (over an unclear timeframe) in his speech about a Zeitenwende, or start of a new era. Since then, many European countries have followed, pledging increases in defence spending to levels not seen since the Cold War.