Global Defense Outlook 2016

Perspectives

Global Defence Outlook 2016

Shifting postures and emerging fault lines

The global business environment is shaped by national defence policies. How are these crucial policies evolving, and what do they portend for business and operating risks? The Deloitte Global Defence Outlook can help you gain a fact-based perspective on the impact of defence policy on your enterprise.

Global Defence Outlook overview

Rapid, sustained economic growth combined with broad-based declines in global levels of military operations continues to transform the global defence environment. Over the next five years, these economic forces appear likely to continue moderating global defence postures. Deloitte’s unique seven-dimension Defence Posture Index (DPI) shows that only seven of the fifty largest defence spenders have raised their defence posture since 2011.

Global defence postures continue to moderate, and economic development is reducing dependence on defence spending globally. But five global fault lines have emerged. Weak global institutions and advancing technology raise risks of conflict along these fault lines:

  • Russia/NATO: conventional forces confrontation in Eastern Europe
  • China/Pacific States: maritime confrontation in the South China Sea
  • States/Terrorists: asymmetric confrontation in Africa, the Middle East, and South Asia
  • Mature/Emerging Nuclear Powers: emerging asymmetries among nuclear states
  • Information Economies/Emerging Economies: confrontation in cyberspace 

The 2016 Global Defence Outlook examines policies, practices, and trends affecting the defence strategies and resources of 50 nations whose combined defence budgets total over 95% of projected global defence spending in 2020. The Global Defence Outlook also explores implications for defence policymakers and offers recommendations for managing shocks along the fault lines.

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