Understanding Swedish Military Expenditures

Abstract

For most of the 20th century the Swedish policy of non-alignment and neutrality has remained the same. In this, the resources set aside for defence have been an important consideration. An independent ability to defend the country has been seen as an asset for maintaining international credibility. This article presents information on Swedish military expenditures since 1913 using official and comparable indicators for different historical periods. It shows a close association between swings in military expenditures and fluctuations in international tensions. Also, the impact of the creation of an officially encouraged Swedish military industry on military expenditures is discussed. This is a development which began in the late 1930s during a period of increasing international tension. Industrial considerations have been important also during the Cold War. In this period military expenditures were influenced by major arms production projects, although reductions in international tensions could sometimes have been expected to lead to lower military expenditures. The local and regional economic impact of military industrial production is also illustrated and constitutes a significant consideration when debating possible reductions for the future.