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Military


Timor - Military Spending

Timor's nominal wealth began to increase in 2005 when revenue from a gas field shared with Australia began to come online. The increased income went overwhelmingly to purchasing imported goods and cash pay-outs to resolve the political problems of IDPs and pensioners, however, leaving domestic production little changed and poverty levels actually worse than ten years ago. The UN ranks Timor-Leste 158th of 179 countries in terms of human development indicators. Petroleum revenue boosted nominal statistics like gross national income, making Timor-Leste look more prosperous on paper, but that stimulative demand effect had yet to filter into the real domestic economy.

During the decade of the 1990s, after the Cold War, the ASEAN States showed a consistent trend of increasing their national expenditure on the Defence sector, defining their armament procurement programmes to correspond to the imperatives of a self-sustaining reinforcement in the growing strategic uncertainty that characterised the post-Cold War period. This increase in expenditure on the Defence sector is inseparable from growth in national economic capacity, which created the opportunity to respond to the growing strategic concerns about regional and global security. In general terms, ASEAN demonstrated a positive correlation between economic growth and Defence expenditure. On this topic, the countries with the highest rates of growth in GDP showed higher rates of growth in Defence expenditure, as was the case with Singapore and Malaysia. The countries with lower rates of economic growth also increased their spending in the sector, although at a slower growth rate, as was the case with Indonesia and the Philippines.

The Defence and Armed Forces Budget have shown a significant growth over the first five years after independence. However, the development indicators of the Armed Forces are presented as less satisfactory due to the inexistence of budget execution and bad management in the development of Armed Forces.

The level of the operational state and the readiness of the Armed Forces, since the creation of the Force until the end of 2005, had positive results as the Armed Forced reached approximately 80% of its operational requirements. Having said this, the continuous absence of the legal framework itself and the lack of a retaining strategy of the military in the institutions of the Armed Forces, has significantly reduced the quality of the regular military which is incorporated in the Armed Forces. This institutional deficiency of a structural character has provoked an immediate impact on the development of the force by the quantitative reduction of permanent elements due to constant desertion which currently totals approximately 42% of total permanent elements of the Force.

Among others, factors which originate this institutional deficiency are located in the lack of decision making and in the lack of Defence Budget Planning which should constantly take into consideration the creation of feasibility mechanisms of operational funds to respond to the immediate needs of the Armed Forces in the area of operational readiness, the well-being of the military as a factor for moral support and other incentives.


East Asia Geographic group   31     Table I:     Green figures are highly uncertain
3.000 Political population quintile         Military expenditure, armed forces, GDP, population,     Blue figures are extremely uncertain
5.000 Economic population quintile at MER         labor force, and their ratios, 2002 - 2012     n/a indicates unpublished estimate
5.000 Economic population quintile at PPP                      
See country note at bottom of page.                        
Parameter / Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Mean
Demographic parameters
Armed forces personnel (AF) (in thousands) 1 1 1 1 1 1 1 1 1 1 1 1
- Armed forces personnel as % of population 0.07% 0.07% 0.07% 0.08% 0.10% 0.11% 0.11% 0.12% 0.12% 0.13% 0.13% 0.10%
- Armed forces personnel as % of labor force 0.26% 0.25% 0.25% 0.30% 0.40% 0.45% 0.51% 0.55% 0.61% 0.64% 0.62% 0.43%
Population (midyear, in millions) 0.9 1.0 1.0 1.0 1.0 1.0 1.0 1.1 1.1 1.1 1.1 1.0
Labor force (LF) (midyear, in millions) 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2
- Labor force as % of population 27.5% 26.6% 26.4% 25.6% 24.6% 23.4% 22.2% 21.0% 19.9% 20.4% 20.5% 23.3%
Armed forces composition (in thousands)[1]
- Army (land forces) 1 1 1 1 1 1 1 1 1 1 1 1.0
- Navy (may include marines) 0 0 0 0 0 0 0 0 0 0 0 0.1
- Air force (may include air defense) 0 0 0 0 0 0 0 0 0 0 0 0.0
- Other regular forces (incl. joint & support) 0 0 0 0 0 0 0 0 0 0 0 0.0
- Paramilitary and irregular forces 0 0 0 0 0 0 0 0 0 0 0 0.0
Economic parameters in national currency
Military expenditure (ME)
- current national currency units (millions) 4 3 5 10 17 25 25 30 30 35 40
- constant 2012 ncu (millions) 6 4 7 14 25 30 30 30 35 35 40 24
ME/AF (constant 2012 ncu) 9,350 6,710 10,900 18,600 24,500 28,900 26,800 26,100 25,600 25,300 27,600 20,900
ME per capita (constant 2012 ncu) 7 4 7 14 25 30 30 30 30 35 35 23
Gross domestic product (GDP)
- current national currency units (millions) 440 450 470 490 460 560 690 820 930 1,120 1,270
- constant 2012 ncu (millions) 660 650 650 690 650 730 830 940 1,030 1,180 1,270 844
GDP per capita (constant 2012 ncu) 730 680 670 700 650 720 800 880 940 1,060 1,110 813
(ME/AF) / (GDP/LF)[2] 3.5 2.6 4.3 6.8 9.2 9.5 7.4 6.2 5.4 4.9 5.1 5.9
ME/GDP ("military burden")[3] 0.9% 0.7% 1.1% 2.0% 3.7% 4.3% 3.8% 3.4% 3.3% 3.1% 3.1% 2.7%
Economic parameters in US dollars
Converted at real MER, base year = 2012
Military expenditure (ME)
- Current dollars (millions) 5 4 6 12 20 30 30 30 35 35 40
- constant 2012 dollars (millions) 6 4 7 14 25 30 30 30 35 35 40 24
ME/AF (constant 2012 dollars) 9,350 6,710 10,900 18,600 24,500 28,900 26,800 26,100 25,600 25,300 27,600 22,900
ME per capita (constant 2012 dollars) 7 4 7 14 25 30 30 30 30 35 35 23
Gross domestic product (GDP)
- Current dollars (millions) 540 540 550 610 590 670 780 890 990 1,160 1,270
- constant 2012 dollars (millions) 660 650 650 690 650 730 830 940 1,030 1,180 1,270 844
GDP per capita (constant 2012 dollars) 730 680 670 700 650 720 800 880 940 1,060 1,110 822
Converted at current-year-average MER
Military expenditure (ME)
- Current dollars (millions) 4 3 5 10 17 25 25 30 30 35 40
- constant 2012 dollars (millions) 5 4 6 11 19 25 30 30 30 35 40 22
ME/AF (constant 2012 dollars) 7,730 5,680 9,220 15,000 19,200 24,000 23,700 23,900 24,200 24,600 27,600 20,700
ME per capita (constant 2012 dollars) 5 4 6 12 19 25 25 30 30 30 35 21
Gross domestic product (GDP)
- Current dollars (millions) 440 450 470 490 460 560 690 820 930 1,120 1,270
- constant 2012 dollars (millions) 550 550 550 560 510 600 740 860 970 1,140 1,270 755
GDP per capita (constant 2012 dollars) 600 570 570 570 510 590 710 810 890 1,020 1,110 736
Converted at real MER, base is mean of 11
real yr.-av. MERs, assigned to the 6th year
Military expenditure (ME)
- Current dollars (millions) 4 3 5 10 18 25 25 25 30 30 35
- constant 2012 dollars (millions) 5 4 6 12 20 25 25 25 30 30 35 20
ME/AF (constant 2012 dollars) 7,880 5,660 9,210 15,600 20,600 24,400 22,600 22,000 21,600 21,300 23,300 19,300
ME per capita (constant 2012 dollars) 6 4 6 12 20 25 25 25 25 30 30 20
Gross domestic product (GDP)
- Current dollars (millions) 450 450 470 510 500 570 660 750 830 980 1,070
- constant 2012 dollars (millions) 560 550 550 580 550 610 700 790 870 990 1,070 711
GDP per capita (constant 2012 dollars) 610 570 570 590 550 600 670 750 800 890 940 693
Converted at PPP-for-GDP rate
Military expenditure (ME)
- Current dollars (millions) 9 7 11 25 40 55 55 55 60 70 75
- constant 2012 dollars (millions) 11 8 13 25 45 60 60 60 65 70 75 45
ME/AF (constant 2012 dollars) 17,600 12,600 20,500 34,900 46,000 54,400 50,300 49,100 48,100 47,600 51,800 43,100
ME per capita (constant 2012 dollars) 12 8 14 25 45 60 55 55 60 60 65 44
Gross domestic product (GDP)
- Current dollars (millions) 1,010 1,010 1,040 1,140 1,110 1,270 1,470 1,680 1,860 2,170 2,390
- constant 2012 dollars (millions) 1,250 1,220 1,220 1,300 1,230 1,370 1,560 1,760 1,930 2,210 2,390 1,590
GDP per capita (constant 2012 dollars) 1,370 1,270 1,260 1,320 1,230 1,340 1,500 1,660 1,770 1,980 2,090 1,550
Converted at est. defense sector PPP rate
Military expenditure (ME)
- Current dollars (millions) 5 4 6 12 20 30 30 30 35 40 40
- constant 2012 dollars (millions) 7 5 8 14 25 30 30 30 35 40 40 24
ME/AF (constant 2012 dollars) 10,600 8,300 11,800 18,500 23,400 27,600 26,300 26,400 26,500 26,700 28,900 23,300
ME per capita (constant 2012 dollars) 7 6 8 14 25 30 30 30 30 35 35 24
(ME/AF) / (GDP @ PPP-for-GDP /LF) 2.1 1.7 2.5 3.6 4.7 4.8 3.9 3.3 3.0 2.7 2.8 3.5
(ME @ sectoral PPP)/(GDP @ PPP-for-GDP) 0.5% 0.4% 0.6% 1.1% 1.9% 2.2% 2.0% 1.8% 1.8% 1.7% 1.8% 1.5%
("military burden")
Political parameters
Freedom House political rights score * 29 28 27 29 26 28 28 28 28 28 29 28.0
WBI voice and accountability score ** 0.34 0.20 -0.07 -0.21 0.04 0.12 0.20 0.07 0.02 0.10 0.06 0.08
* range 0 to 40; ** range -2.30 to +1.85
   
As proportion of world total or world value:
Demographic parameters
Armed forces personnel (AF) as % of world 0.00% 0.00% 0.00% 0.00% 0.00% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.00%
- AF/population as multiple of world ratio 0.20 0.20 0.20 0.24 0.30 0.33 0.36 0.37 0.40 0.42 0.42 0.31
- AF/labor force as multiple of world ratio 0.33 0.35 0.35 0.43 0.58 0.67 0.75 0.82 0.92 0.96 0.95 0.63
Population (midyear) as % of world 0.01% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02%
Labor force (LF) (midyear) as % of world 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
- LF/population as multiple of world ratio 0.38 0.28 0.45 0.85 1.51 1.80 1.48 1.25 1.30 1.26 1.29 0.50
Economic parameters in US dollars
Converted at real MER, base year = 2012
Military expenditure (ME) as % of world 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- ME/AF as multiple of world ratio 0.16 0.11 0.16 0.27 0.34 0.39 0.33 0.30 0.30 0.30 0.33 0.31
- ME per capita as multiple of world ratio 0.03 0.02 0.03 0.06 0.10 0.13 0.12 0.11 0.12 0.13 0.14 0.10
GDP as % of world 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- GDP per capita as multiple of world ratio 0.08 0.08 0.07 0.07 0.07 0.07 0.08 0.09 0.09 0.10 0.11 0.08
(ME/AF)/(GDP/LF) as multiple of world ratio 1.17 0.80 1.28 1.98 2.66 2.73 1.97 1.52 1.40 1.29 1.35 1.82
ME/GDP as multiple of world ratio 0.38 0.28 0.45 0.85 1.53 1.81 1.48 1.25 1.29 1.24 1.29 1.14
Converted at current-year-average MER
Military expenditure (ME) as % of world 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- ME/AF as multiple of world ratio 0.17 0.11 0.16 0.25 0.30 0.34 0.29 0.30 0.30 0.29 0.33 0.30
- ME per capita as multiple of world ratio 0.03 0.02 0.03 0.06 0.09 0.11 0.11 0.11 0.12 0.12 0.14 0.09
GDP as % of world 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- GDP per capita as multiple of world ratio 0.09 0.08 0.07 0.07 0.06 0.06 0.07 0.09 0.09 0.10 0.11 0.08
(ME/AF)/(GDP/LF) as multiple of world ratio 1.17 0.80 1.28 1.96 2.61 2.71 1.96 1.52 1.41 1.31 1.35 1.83
ME/GDP as multiple of world ratio 0.38 0.28 0.45 0.85 1.51 1.80 1.48 1.25 1.30 1.26 1.29 1.15
Converted at real MER, base is mean of 11
real yr.-av. MERs, assigned to the 6th year
Military expenditure (ME) as % of world 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- ME/AF as multiple of world ratio 0.15 0.10 0.15 0.25 0.31 0.35 0.30 0.28 0.28 0.28 0.30 0.28
- ME per capita as multiple of world ratio 0.03 0.02 0.03 0.06 0.09 0.12 0.11 0.10 0.11 0.12 0.13 0.09
GDP as % of world 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- GDP per capita as multiple of world ratio 0.08 0.07 0.07 0.07 0.06 0.07 0.07 0.08 0.09 0.10 0.10 0.08
(ME/AF)/(GDP/LF) as multiple of world ratio 1.18 0.80 1.27 1.96 2.63 2.69 1.92 1.49 1.37 1.27 1.33 1.80
ME/GDP as multiple of world ratio 0.39 0.28 0.45 0.85 1.51 1.79 1.45 1.22 1.27 1.22 1.27 1.12
Converted at PPP-for-GDP rate
Military expenditure (ME) as % of world 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- ME/AF as multiple of world ratio 0.25 0.16 0.25 0.41 0.51 0.57 0.49 0.44 0.44 0.43 0.45 0.45
- ME per capita as multiple of world ratio 0.05 0.03 0.05 0.10 0.15 0.19 0.17 0.16 0.17 0.18 0.19 0.14
GDP as % of world 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- GDP per capita as multiple of world ratio 0.13 0.12 0.11 0.12 0.10 0.11 0.12 0.13 0.13 0.15 0.15 0.13
(ME/AF)/(GDP/LF) as multiple of world ratio 1.12 0.77 1.25 1.93 2.61 2.69 1.98 1.52 1.40 1.29 1.34 1.79
ME/GDP as multiple of world ratio 0.37 0.27 0.44 0.83 1.51 1.79 1.49 1.25 1.29 1.25 1.27 1.12
Converted at est. defense sector PPP rate
Military expenditure (ME) as % of world 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- ME/AF as multiple of world ratio 0.18 0.13 0.17 0.26 0.31 0.35 0.30 0.29 0.30 0.30 0.32 0.30
- ME per capita as multiple of world ratio 0.03 0.03 0.03 0.06 0.09 0.12 0.11 0.11 0.12 0.13 0.13 0.09
(ME/AF)/(GDP/LF) as multiple of world ratio 0.80 0.60 0.85 1.22 1.59 1.64 1.24 1.01 0.95 0.90 0.95 1.18
(ME @ sectoral PPP)/(GDP @ PPP-for-GDP) 0.26 0.21 0.30 0.53 0.92 1.09 0.93 0.83 0.88 0.87 0.90 0.74
as multiple of world ratio
                         
Currency conversion rates used
(current ncu per current U.S. dollar)
Real MER, base year = 2012 0.827 0.847 0.843 0.810 0.786 0.830 0.885 0.916 0.945 0.971 1.000
Current-year-average MER 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000
Real MER, base is mean of 11 real year- 0.981 1.004 1.001 0.961 0.933 0.984 1.050 1.087 1.121 1.152 1.186
average MERs, assigned to the 6th year
PPP-for-GDP rate 0.440 0.451 0.449 0.431 0.419 0.442 0.471 0.488 0.503 0.517 0.532
Defense sector PPP rate, notional estimate 0.728 0.685 0.778 0.813 0.823 0.871 0.901 0.907 0.914 0.921 0.956
Currency notes:
The national currency unit on this page is the U.S. dollar.
All national-currency-denominated values on this page are in the U.S. dollar, which Timor l'Este has used as its currency since becoming independent in May 2002.
Country notes (if any):
Timor l'Este became independent in May 2002.
The national-currency GDP figures on this page are from the World Bank's WDI database as published online in April 2015. The GDP figures for Timor l'Este published in the National Accounts
Main Aggregates database of the U.N. Statitistical Division are much greater for recent years (by a factor of more than four for 2102), and, if used, would render both the "military burden"
and the (ME/AF) / (GDP/LF) ratio much smaller in national currency terms.
Selected country-specific websites (which may not be the sources of figures shown above, and may, for some countries, open slowly or be accessible only intermittently):
General Directorate of Statistics:
http://www.statistics.gov.tl
Ministry of Finance:
http://www.mof.gov.tl/




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Page last modified: 29-09-2016 20:02:09 ZULU