Military spending need not be ruinous to the economy |
Publication |
Business Day |
Date | 2013-05-27 |
Reporter |
Helmoed Römer Heitman |
Web Link | www.bday.co.za |
Picture: Sowetan
THE old Latin saying has it that "he who
wants peace prepares for war", and somewhat
more recently, then German chancellor Konrad
Adenauer defended the decision to
re-establish that country’s armed forces by
remarking that "every country has an army on
its soil; either its own, or someone
else’s". Some argue that South Africa should
not waste funds on defence "because there is
no threat" at present. But:
• It takes two or three decades to build a
defence force; threats can develop within a
few years and sometimes even within a few
months. There is no guarantee of fair
warning. Buying a fire-extinguisher after
your house has started burning will not to
help.
• South Africa finds itself in an unstable
region during an unstable era of world
history. It would be foolish to expect
"peace in our time" in our region, let alone
on our continent, as the past two decades
have quite clearly shown.
Accepting that South Africa needs a defence
force, the issue becomes one of deciding
what defence capability South Africa should
have.
There is talk of the percentage of gross
domestic product (GDP) that can or should be
spend on defence. In reality, that is
irrelevant except as a measure of how
serious countries in similar strategic
situations are about defence. The reality is
that a country should spend on defence
whatever its strategic situation demands in
any given period.
The key decision required from the
government is, thus, what it actually wants
the defence force to be able to do: Does it
just want a border guard and a small
contingency force? Does it want a defence
force able to act effectively in concert
with the other Southern African Development
Community (Sadc) forces? Does it want to be
able to act as a regional or even
continental power?
Once that has been decided, the defence
force must develop and cost a suitable force
design and present it to the government for
funding. If that is not affordable, the
government must reconsider its policies.
What South Africa cannot do is go on as it
is: expecting the defence force to provide
regional capability on what amounts to
little more than border-guard funding.
If we are unlucky, that lesson will be
driven home by a large number of body bags
coming back from some mission to which we
sent a force too small and too lightly armed
and which we could not reinforce or extract
because we did not have the airlift to do
so. That could easily have been the outcome
at Bangui were it not for the outstanding
quality of the soldiers who fought there; or
at Goma in November last year, had M23
decided to attack the airport.
But should South Africa even have troops
deployed outside our borders? Here it is
perhaps apposite to quote former Tanzanian
president Benjamin Mkapa: "If your neighbour
is not stable, you cannot be stable for too
long. If your neighbour collapses, the
fallout will not respect the boundary
between you."
South Africa needs stable and prosperous
neighbours as customers and a stable
environment around us to attract the foreign
investment we need. If South Africa does not
help bring about that stability, either no
one will do anything or foreign powers will
do so in their interests, not ours.
We also need to be able to protect vital
interests outside South Africa, such as the
shipping lane through the Mozambique Channel
that carries most of our imported oil and to
help our neighbours protect key national
interests of ours that lie in their
countries, such as the Katse Dam in Lesotho
and the Cahora Bassa power station in
Mozambique. The Sadc as such, for the same
reasons, also needs a stable and preferably
prosperous periphery. Against that
background, it is clear that South Africa
needs at least limited regional capability.
That is not affordable on the present R40bn
budget: The army is overstretched and its
equipment obsolete; the navy can patrol
South African waters or the Mozambique
Channel but not both, let alone important
West African shipping routes; the air force
has no maritime patrol aircraft and
inadequate airlift capabilities.
If the defence force is to protect our
borders, waters and airspace, protect our
external vital interests and work with our
partners to help stabilise the Sadc
periphery, defence will need about R60bn a
year.
True regional capability, which is what much
of Africa expects of South Africa, given
that we have the 27th-largest economy in the
world and by far the largest in Africa,
would cost about R75bn.
Much of that would be spent inside South
Africa salaries, general stores, and
equipment that could then be developed
locally reducing the actual effect on the
economy.
Alternatively, we must settle for an
enhanced border guard, which could even
allow some reduction in defence funding. But
we must also understand that this would cost
about 35,000 jobs cut from the defence force
and from the industry it could no longer
support; loss of that industry’s annual R8bn
export income; and the currency outflows
resulting from having to buy all equipment
from overseas. And, of course, we would lose
all influence in the region.
Here it is perhaps also worth quoting a
former chief of the Angolan navy: "The
politicians always talk about the cost of
having a navy; they never consider the cost
of not having a navy." That applies equally
to the defence force.
It is worth considering the notion that
defence funding is necessarily ruinous to
the economy. It certainly is if, as the
Soviet Union did towards the end, about 20%
of GDP is spent on defence.
But the example beloved of several prolific
correspondents is Costa Rica, which does not
have a military, although its police does
look suspiciously like a small army. The
champions of the Costa Rica option always
compare its economic performance with that
of its neighbours. That is less than fair,
given that those countries all faced
insurgencies to some degree. Let us instead
compare Costa Rica’s performance with that
of another country that has not seen war or
insurgency.
Singapore is a good example. Both are small
countries in unstable regions and had
economies of similar size in 1960. Costa
Rica spends nothing on defence; Singapore
has spent about 4% of GDP on defence for
decades and invested heavily in developing a
defence industry. So Costa Rica should have
done vastly better than Singapore. The facts
are rather different: in 1960, Costa Rica’s
GDP was $507m and Singapore’s was $650m,
while per-capita GDP was $380 and $395
respectively. By 2011, Costa Rica’s GDP was
$40.6bn and Singapore’s was $133.2bn, while
per-capita GDP had risen to $8,870 versus
$50,285 respectively.
Clearly, defence spending does not have to
be ruinous. A closer study of Singapore and
other countries that have focused their
defence expenditure wisely shows that it can
serve as an incubator for engineers and
technology, spreading capabilities through
the wider economy, while many developing
countries have found that combining military
service with education and training is a
cost-effective way of building skills.
• Heitman is a defence analyst.
With acknowledgement to Helmoed Römer Heitman and Business Day.
chattabox
I do not
agree with your assessment. We are
surrounded by very poor countries with
little or no military capability and we
couldn't possibly protect ourselves from
invasion from western powers. The main
requirement for our military at this point
is to a) protect our borders b) retain
institutional knowledge in the event we need
to scale up in the future.
________________
rmyoung
I will
support a R60 billion defence budget.
So long as we buy the right stuff and from
the right suppliers and use it wisely.
Or maybe use it at all.
But the history is bad. In the SDPs (Arms
Deal) it is clear that not only was the
wrong stuff bought, but that the main reason
for buying most of it was not military
necessity or even utility.
The Gripens were surreptitiously reduced in
number from 28 to 26 and then half of those
put into storage because the SAAF has no
budget to operate them.
The SAAF's 54 Cheetah Cs could still quite
happily be flying about as most of these are
currently doing in the Ecuadorian Air Force.
The SAN acquired four of the most modern
frigates in the world under the guise of
patrol corvettes. The latest of these is
completely non-operational and will remain
so until funds get allocated out of the
half-life refit budget to remedy its
essential defects.
Not long after delivery in 2007 the SAN's
first submarine got critically damaged by a
combination of lack of proper training,
procedures and supervision and that boat has
stood alongside or in the shed for six
years. It is now receiving some attention
from the original supplier, but it remains
to be seen whether that will be sufficient
to get it fully operational again or merely
into the water.
But in general the SAN operates at most one
frigate and one submarine at a time and that
is not all the time, indeed not much of the
time.
So in my view it is impossible to be
justifying the acquisition on another
submarine, another two to four frigates and
another fourteen maritime helicopters that
this force design calls for and R60 billion
budget allows for.
The SA Army "lost out" in the SDPs. Actually
in hindsight it was very lucky to do so,
otherwise it would have 108 new main battle
tanks (later reduced to 54).
Where would we use those?
How would we get them there?
Meanwhile the SA army's 35-year old Ratel
infantry fighting vehicles have long since
been retired. Yet instead of replacing these
with a South African product, and South
Africa is one of the best designers and
manufacturers of mine-protected armoured
vehicles in the world, we go and buy a
Finnish product.
In May 2007, Denel Land Systems as prime
contractor placed a contract for 264 Finnish
Patria AMV vehicles, the Badger under
Project Hoefyster, for the South African
Army.
So far we have seen none of them.
It does not take 6 years to produce a final
product of that type, particularly from an
existing design..
But no wonder, the Department of Defence
wants to play a direct role in the
restructuring of the local defence industry.
This was revealed by Defence and Military
Veterans Minister Nosiviwe Mapisa-Nqakula in
her departmental Budget Vote speech on
Thursday last week.
BAE Systems are on record in 2010 suggesting
the scrapping of the Badger acquisition and
replacing it with its RG41 armoured combat
vehicle. That this was three years after the
award of contract is particularly
noteworthy.
Clearly that the fat lady is yet to sing is
an appropriate colloquialism in this
instance.
Watch that space.
____________
rmyoung
@chattabox
I agree with your assessment - for reasons
other than those I have set out in my
subsequent posting.
But I have vested interests - because I am a
South African defence supplier.
I hope eventually to get some of the action
- supply action, not military action, that
is.
One thing :
Helmoed Heitman is infatigable.