Future of Transatlantic Future of Transatlantic Future of - - PowerPoint PPT Presentation

Future of Transatlantic Future of Transatlantic Future of Transatlantic Future of Transatlantic Cooperation Cooperation

An international perspective An international perspective

Martin Neill – Counsellor Defence Acquisition and Technology, British Embassy

Fundamentals of the US/UK Security Fundamentals of the US/UK Security R l ti hi R l ti hi Relationship Relationship

► Common Values

Common Values

► Common Values

Common Values

► Shared Global interests

Shared Global interests

► Shared Global interests

Shared Global interests

► High Technology

High Technology Uniquely Interoperable Armed Uniquely Interoperable Armed

► High Technology

High Technology – – Uniquely Interoperable Armed Uniquely Interoperable Armed Forces across spectrum of conflict Forces across spectrum of conflict

► Intelligence, Nuclear, Science, Special Forces

Intelligence, Nuclear, Science, Special Forces

Similarities Similarities Similarities Similarities

► Security interests:

Security interests:

► Security interests:

Security interests:

• P5, NATO, G8, Global Trade

P5, NATO, G8, Global Trade ► Common Threats

Common Threats

• International Terrorism, Piracy, Conventional Warfare

International Terrorism, Piracy, Conventional Warfare ► UK shares some key high end niche capabilities

UK shares some key high end niche capabilities with US with US – – Intelligence, Special Forces, Nuclear Intelligence, Special Forces, Nuclear

US Spending 1946 US Spending 1946-2009 2009 US Spending 1946 US Spending 1946 2009 2009

US Defense Spending 1946 - 2009

600 700 800 300 400 500 $(Bn) 100 200 300 1 9 4 6 1 9 5 1 9 5 4 1 9 5 8 1 9 6 2 1 9 6 6 1 9 7 1 9 7 4 1 9 7 7 1 9 8 1 1 9 8 5 1 9 8 9 1 9 9 3 1 9 9 7 2 1 2 5 2 9 e s t i m a t e Year 2 In Year Value $ 2009 Value

* 1976 Dip Caused by Transitional Quarter – not sudden drop in spending

UK Spending 1948 UK Spending 1948-2009 2009 UK Spending 1948 UK Spending 1948 2009 2009

Estimated UK Defence Expenditure: 1946/7 to 2008/09

35,000 40,000 45,000 20,000 25,000 30,000

£ Millions

5 000 10,000 15,000

£

Near Cash line Cash (until 2000/01) Net Cash Requirement (from 2001/02)

• 5,000

1946/47 1947/48 1948/49 1949/50 1950/51 1951/52 1952/53 1953/54 1954/55 1955/56 1956/57 1957/58 1958/59 1959/60 1960/61 1961/62 1962/63 1963/64 1964/65 1965/66 1966/67 1967/68 1968/69 1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08

Financial Year Nominal Defence Expenditure* Defence Expenditure at 2008/09 Constant prices* Near Cash**

Spending as % of GDP 1948 Spending as % of GDP 1948-2008 2008 Spending as % of GDP 1948 Spending as % of GDP 1948 2008 2008

Defence Spending as % of GDP 1948 - 2008 p g

12 14 16 4 6 8 10 12 % of GDP UK US 2 4 Year 951 955 959 963 967 971 975 979 983 987 991 995 999 003 007 Y 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 Year

Top 10 Spenders Top 10 Spenders Top 10 Spenders Top 10 Spenders

2008 Top 10 Military Spenders ($Bn)* 2008 Top 10 Military Spenders ($Bn)*

40.6 38.2 30 USA 58 6 46.8 46.3 30 China France UK 607 65 7 65.3 58.6 Russia Germany Japan 84.9 65.7 Italy Saudi Arabia India

* Source SIPRI 2009 Yearbook * Source SIPRI 2009 Yearbook

AK (240)

US JOBS DIRECTLY SUPPORTED BY UK DEFENCE SECTOR* US JOBS DIRECTLY SUPPORTED BY UK DEFENCE SECTOR*

WA (787) ND (79) MN (1630) NH (5835) MA (2960) MT (39) ME (19) VT (18) ID (65) MI (755) ( ) NY (4080) MA (2960) RI (98) PA (5301) SD (153) WY (131) IA OR (402) WI (561) CA (22023) CO (1109) IN (6725) OH (3557) IL (686) CT (422) NE (360) RI (98) PA (5301) VA (11876) KY (1017) MO (2966) NJ (1866) IA (427) KS (206) UT (24) NV (71) WV (83) DE (10) HI (869) TX (11728) GA (4179) AZ (3383) NC (688) MS (265) AL (3862) SC (1738) MD (4814) DC (1829) TN (1780) OK (379) AR (10) NM (152) TX (11728) FL (4546) ( ) LA (233) * Includes:

• UK direct investment in the US
• UK prime contracts placed with US companies
• US suppliers to UK primes

* Does not include: Puerto Rico - 2 Does not include:

• UK collaborative projects

TOTAL US JOBS (August 2009) = >117,000 IN 50 STATES, TOTAL US JOBS (August 2009) = >117,000 IN 50 STATES, D.C. & US Territories D.C. & US Territories

Differences Differences Differences Differences

►Scale

Scale – budget approximately 10% of US budget approximately 10% of US

►Scale

Scale budget approximately 10% of US budget approximately 10% of US spending spending

►Legislative/political/fiscal processes

Legislative/political/fiscal processes

►Cultural

Cultural

►UK experience of collaborative projects

UK experience of collaborative projects

Opportunities Opportunities Opportunities Opportunities

►Inter

Inter-operability

• perability

►Inter

Inter operability

• perability

C t d ti C t d ti

►Cost reduction

Cost reduction

►Different perspectives

Different perspectives

►Wider S&T

Wider S&T

Broad Spectrum of Technology Broad Spectrum of Technology C ti & C ll b ti C ti & C ll b ti Cooperation & Collaboration Cooperation & Collaboration

► Nuclear

Nuclear

► Land

Land

• Survivability, Lethality, Fuel, Power for Dismounted Solider,

Survivability, Lethality, Fuel, Power for Dismounted Solider, Protected mobility Protected mobility

• tected
• b ty
• tected
• b ty

► Maritime

Maritime

• From Protection against Fast Inshore vessels to the development of

From Protection against Fast Inshore vessels to the development of Future Submarine Future Submarine Future Submarine Future Submarine ► Air

Air

• Propulsion Systems, Stealth Technologies and Strategic Unmanned

Propulsion Systems, Stealth Technologies and Strategic Unmanned Air Vehicles Air Vehicles Air Vehicles Air Vehicles ► Special Forces and Counter Terrorism

Special Forces and Counter Terrorism

• Night Vision, Electronic Counter Measures (ECM), Communication

Night Vision, Electronic Counter Measures (ECM), Communication Systems Specialist Land/Maritime/Air Vehicles Systems Specialist Land/Maritime/Air Vehicles Systems, Specialist Land/Maritime/Air Vehicles Systems, Specialist Land/Maritime/Air Vehicles

Acquisition Reform Acquisition Reform Acquisition Reform Acquisition Reform

►UK’s resource limitations meant it started

UK’s resource limitations meant it started

►UK s resource limitations meant it started

UK s resource limitations meant it started far far-

• reaching reforms 10 years ago

reaching reforms 10 years ago

►Mixed success

Mixed success

►Some observations that may be useful to

Some observations that may be useful to y the US the US – – both good and bad of our own both good and bad of our own experience experience p

The Future? The Future? The Future? The Future?

► Continuation of increase in personnel costs to the

Continuation of increase in personnel costs to the detriment of equipment budgets detriment of equipment budgets

► Pressure on US and UK public finances

Pressure on US and UK public finances

► Uncertainty

Uncertainty -

• Global instability and shift in balance

Global instability and shift in balance

• f power?
• f power?

► Importance of interoperable coalitions

Importance of interoperable coalitions

Q estions? Q estions? Questions? Questions?