Oil Price shocks and military expenditure
Our Campaign goal focuses on spreading citizens’ awareness on their country’s military expenditure and on helping them to realize how is their tax money invested on sectors that do not benefit neither them nor their human rights and security. However, there are other sectors that merit our full attention influencing the political sphere. And today, we are dedicating this article to the influence of the oil prices on the military expenditure.
In the SIPRI yearbook 2017, a section is dedicated to the oil price shock effects and its relationship with the military complex as well as in countries in conflict.
Oil revenues are thought to play a role in determining the level of military spending in oil exporting economies. In Africa, Middle East, and South America, the decline of their military spending in 2016 was a consequence of a fall in the price of oil that started in 2014.
A major drop in oil price has a wide range of macroeconomic impacts and can affect a country GDP, fiscal balance, government debt among other things. These impacts have led to resource prioritization choices, where many oil-dependent countries have decreased its military expenditure as well as sometimes some fundamental social sectors.
Not only we have experienced many oil spills harming drastically the environment, but it has been years since Scientists declared that we are reaching the limit of natural resources available on Earth. Some Governments try harder than others to motivate their citizens to consume less and concentrate on renewable energy.
Only 10% of the world military expenditure can save our planet! This year, we invite you to assist the live streaming Earth Overshoot Day on August 1st. Plenty of solutions exist, but we need our governments to redirect their investments to other human security sectors. We all must put pressure on reducing military spending and oil consumption while addressing human needs.