The Abbott government should abandon its pledge to spend 2 percent of Australia’s GDP on Defence, argues this report.
• In 2012-13 Gross Domestic Product (GDP) was used to measure and define the debate over Australia’s Defence spending.
• While GDP has some uses, it can be highly misleading as a form of comparison and analysis.
• A better approach is to follow the established literature by examining the interests of the nation, the environment it finds itself in, and the nation’s financial capacity.
• A return to an orthodox strategic approach will better protect the nation, do so more efficiently, and help sustain long-term public support.
• The Abbott government should abandon its pledge to spend 2 percent of Australia’s GDP on Defence and return to an orthodox strategic planning approach, allocating financial resources as appropriate.