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. Last Updated: 07/27/2016

Study: Military Spending Hit $794Bln in 2002

STOCKHOLM, Sweden -- World military spending rose by 6 percent last year, growing twice as fast as in 2001 to reach $794 billion, largely as a result of the U.S.-led war on terrorism, a respected think tank said Tuesday.

Washington accounted for three-quarters of the increase, the Stockholm International Peace Research Institute said in its Yearbook, a defense and security policy publication widely recognized for the reliability of its data.

Russia overtook the United States as the world largest arms exporter while China was the largest importer, followed by India, locked in an arms race with impoverished nuclear rival Pakistan.

But with outlays up 10 percent year on year at $336 billion, the United States accounted for 43 percent of global military expenditure in 2002, up from 36 percent in 2001.

"The rest of the world is not prepared, or cannot, follow the U.S example in increasing military expenditure," SIPRI said, noting that combined arms expenditure of the West European members of the NATO defense alliance fell by 3 percent in real terms between 2000 and 2002.

"While in the U.S.A. the war on terrorism was a major factor in the huge growth in military expenditure in 2002, this was not the case in Europe."

U.S. defense budget estimates for fiscal year 2003 showed a planned increase in arms procurement of 32 percent over the 2002-07 period to $78 billion this year. Total U.S. defense spending was set to rise by just over 6 percent in 2003.

Russia's defense budget was flat in 2002 but looked set to increase by 7 percent to 8 percent in real terms this year, SIPRI said.

The value of Russian arms exports, on the rise since 1999, increased by more than $1 billion to $4.8 billion last year. With 36 percent of global deliveries, Russia overtook the United States as the world's largest supplier of arms to other countries, primarily China and India.

China's military spending was estimated by SIPRI to have risen by 18 percent in 2002 and would grow 9.6 percent in 2003.

China was the No. 1 arms importer last year with 14 percent of the world's total.

India's arms imports increased 72 percent in 2002, making it the second-largest buyer of arms from abroad. Arms imports by Pakistan also grew considerably last year, SIPRI said.

Both countries continued to produce fissile materials and to develop missiles, the think-tank said, noting that the size of the two countries' arsenals was not known but might consist of from 100 to more than 400 nuclear weapons.

Pakistan, the poorer of the two, was the underdog measured by both conventional and nuclear arms, SIPRI said.

The dispute over the Kashmir region, which has twice taken the neighbors to war, made the arms race more dangerous.

"The situation is likely to become worse with the future nuclear deployments by both India and Pakistan," SIPRI said, noting that both were preparing doctrines for nuclear weapons use.