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 R l ti Relationship Relationship hi hi ► Common Values ► Common Values Common Values Common Values ► Shared Global interests ► Shared Global interests Shared Global interests Shared Global interests ► High Technology ► High Technology High Technology High Technology – – Uniquely Interoperable Armed Uniquely Interoperable Armed 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 US Spending 1946 2009 US Spending 1946-2009 2009 2009 US Defense Spending 1946 - 2009 800 700 600 500 $(Bn) 400 300 300 200 100 0 e 6 0 4 8 2 6 0 4 7 1 5 9 3 7 1 5 t 4 5 5 5 6 6 7 7 7 8 8 8 9 9 0 0 a 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 m 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 i t s e 9 Year 0 0 0 2 2 In Year Value $ 2009 Value * 1976 Dip Caused by Transitional Quarter – not sudden drop in spending

£ Millions £ 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 5 000 5,000 - 1946/47 1947/48 UK Spending 1948-2009 UK Spending 1948 2009 UK Spending 1948 UK Spending 1948 1948/49 1949/50 1950/51 1951/52 1952/53 1953/54 Nominal Defence Expenditure* 1954/55 1955/56 1956/57 1957/58 1958/59 Estimated UK Defence Expenditure: 1946/7 to 2008/09 1959/60 1960/61 1961/62 1962/63 1963/64 1964/65 1965/66 1966/67 1967/68 1968/69 1969/70 1970/71 Defence Expenditure at 2008/09 Constant prices* 1971/72 1972/73 1973/74 Financial Year 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 2009 2009 2000/01) Cash (until 1991/92 (from 2001/02) Requirement Net Cash 1992/93 1993/94 1994/95 1995/96 1996/97 Near Cash** 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 Cash line Near 2005/06 2006/07 2007/08

Spending as % of GDP 1948 Spending as % of GDP 1948 Spending as % of GDP 1948 2008 Spending as % of GDP 1948-2008 2008 2008 Defence Spending as % of GDP 1948 - 2008 p g 16 14 12 12 % of GDP 10 UK 8 US 6 4 4 2 0 Year 951 955 959 963 967 971 975 979 983 987 991 995 999 003 007 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 Y 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)* 38.2 40.6 USA 30 30 China 46.3 France 46.8 UK 58.6 58 6 Russia 65.3 Germany 607 Japan 65 7 65.7 Italy 84.9 Saudi Arabia India * Source SIPRI 2009 Yearbook * Source SIPRI 2009 Yearbook

US JOBS DIRECTLY SUPPORTED BY UK DEFENCE SECTOR* US JOBS DIRECTLY SUPPORTED BY UK DEFENCE SECTOR* AK (240) NH (5835) WA (787) VT (18) ME (19) MT (39) ND (79) MN (1630) ( ) MA (2960) MA (2960) OR (402) WI NY ID (65) (561) (4080) SD (153) MI WY (131) (755) IA IA PA (5301) PA (5301) RI (98) RI (98) NV (71) NE (360) (427) OH IL (3557) CT (422) IN (686) UT (24) WV (6725) NJ (1866) CO (1109) VA KS (83) CA MO (11876) DE (10) (206) (22023) KY (1017) (2966) NC (688) MD (4814) TN (1780) AZ (3383) OK AR NM (152) (379) DC (1829) SC (1738) (10) HI (869) MS AL GA (4179) (265) (3862) ( ) TX (11728) TX (11728) LA * Includes: (233) • UK direct investment in the US • UK prime contracts placed with US companies FL • US suppliers to UK primes (4546) Puerto Rico - 2 * Does not include: 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 Scale – budget approximately 10% of US Scale budget approximately 10% of US 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 Inter-operability Inter operability operability operability ► Cost reduction C Cost reduction C t t d d ti ti ► Different perspectives Different perspectives ► Wider S&T Wider S&T

Broad Spectrum of Technology Broad Spectrum of Technology C C Cooperation & Collaboration Cooperation & Collaboration ti ti & C ll b & C ll b ti ti ► Nuclear Nuclear ► Land Land  Survivability, Lethality, Fuel, Power for Dismounted Solider, Survivability, Lethality, Fuel, Power for Dismounted Solider, Protected mobility Protected mobility otected otected ob ty ob 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 of power? of power? ► Importance of interoperable coalitions Importance of interoperable coalitions

Q estions? Q estions? Questions? Questions?