Defense budget of Japan
Encyclopedia
Even during the Cold War
arms race
of the 1980s, the Defense budget was accorded a relatively low priority in Japan
. According to Japanese security policy
, maintaining a military establishment is only one method—and by no means the best method—to achieve national security. Diplomacy
, economic aid and development, and a close relationship with the United States
under the terms of the 1960 security treaty
are all considered more important. For FY 1986 through FY 1990, defense's share of the general budget
was around 6.5 %, compared with approximately 28 % for the United States. In 1987 Japan ranked sixth in the world in total defense expenditures behind the Soviet Union
, the United States, France
, the Federal Republic of Germany (West Germany
), and Britain
. By 1989 it ranked third after the United States and the Soviet Union, mainly because of the increased value of the yen. In FY 1991, defense accounted for 6.2 % of the budget. According to the Stockholm International Peace Research Institute
, Japan was ranked fourth in world in 2004-2005, spending $42.1 billion; according to The World Factbook
, CIA, Japan was fifth, spending $44.7 billion (the ranking is different because of the CIA's radically higher estimate of spending by the People's Republic of China
).
In addition to annual budgets, the Defense Agency
prepared a series of cabinet-approved buildup plans beginning in 1957, which set goals for specific task capabilities and established procurement targets to achieve them. Under the first three plans (for 1958-60, 1962–66, and 1967–71), funding priorities were set to establish the ability to counter limited aggression. Economic difficulties following the 1973 oil crisis
, however, caused major problems in achieving the Fourth Defense Buildup Plan (1972–76), and forced funding to be cut, raising questions about the basic concepts underlying defense policies.
In 1976 the government recognized that substantial increases in spending, personnel, and bases would be virtually impossible. Instead, a "standard defense concept" was suggested, one stressing qualitative improvements in the Self-Defense Forces
, rather than quantitative ones. It was decided that defense spending would focus on achieving a basic level of defense as set forth in the 1976 National Defense Program Outline. Thereafter, the government ceased to offer buildup plans that alarmed the public by their seemingly open-ended nature and switched to reliance on single fiscal year formulas that offered explicit, attainable goals.
Defense spending increased slightly during the late 1970s, and in the 1980s only the defense and Official Development Assistance budgets were allowed to increase in real terms. In 1985 the Defense Agency developed the Mid-Term Defense Estimate objectives for FY 1986 through FY 1990, to improve SDF front-line equipment and upgrade logistic support systems. For the GSDF
, these measures included the purchase of advanced weapons and equipment to improve antitank, artillery, ground-to-sea firepower, and mobile capabilities. For the MSDF
, the focus was on upgrading antisubmarine capabilities, with the purchase of new destroyer escort
s equipped with the Aegis system
and SH-60J antisubmarine helicopters, and on improving antimine warfare and air defense
systems. ASDF
funds were concentrated on the purchase of fighter aircraft
and rescue helicopters. The entire cost of the Mid-Term Defense Estimate for FY 1986 through FY 1990 was projected at approximately ¥18.4 trillion (approximately US$83.2 billion, at the 1985 exchange rate).
In FY 1989, the ¥3.9 trillion defense budget accounted for 6.49 % of the total budget, or 1.006 % of GNP. In addition to the Defense Agency itself, the defense budget supported the Defense Facilities Administration Agency and the Security Council
. Defense Agency funding covered the GSDF, the MSDF, the ASDF, the internal bureaus, the Joint Staff Council, the National Defense Academy, the National Defense Medical College, the National Institute for Defense Studies, the Technical Research and Development Institute, and the Central Procurement Office.
The FY 1990 defense budget, at 0.997 % of the forecast GNP, dipped below the 1 % level for the first time since it was reached in 1987. But the more than ¥4.1 trillion budget still marked a 6.1 % increase over the FY 1989 defense budget and provided virtually all of the ¥104 billion requested for research and development, including substantial funds for guided-missile
and communications technologies. Although some ¥34.6 billion was authorized over several years for joint Japan-United States research and development of the experimental FSX
fighter aircraft, disputes over this project were believed to have convinced the Defense Agency to strengthen the capability of the domestic arms industry
and increase its share of SDF contracts. After originally being cut, funds were also restored for thirty advanced model tanks and the last Aegis multiple-targeting-equipped destroyer escort needed to complete the Mid-Term Defense Estimate. The 6.1 % defense increase was accompanied by an even larger (8.2 %) increase in Official Development Assistance funding. The defense budget continued to grow in real terms in the early 1990s to ¥4.38 trillion in 1991 and ¥4.55 trillion in 1992 but remained less than 1 % of GNP.
Japanese officials resist United States pressure to agree formally that Japan will support more of the cost of maintaining United States troops
, claiming that such a move will require revision of agreements between the two nations. But in FY 1989, the Japanese government
contributed US$2.4 billion—roughly 40 %—of the total cost. The contribution slated for FY 1990 was increased to US$2.8 billion—nearly 10 % of the total defense budget—and by the end of FY 1990 the Japanese government expected to assume all expenses for utilities and building maintenance costs for United States troops stationed in Japan.
According to the Ministry of Defense of Japan, the 2008 defense budget was ¥4.74 trillion, down by 0.8% from the ¥4.78 trillion recorded in 2007. This slight decline came despite attempts by the governing LDP to enhance the status of national defense by upgrading the Defense Agency to the Ministry of Defense, effective January 9, 2007.
Cold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...
arms race
Arms race
The term arms race, in its original usage, describes a competition between two or more parties for the best armed forces. Each party competes to produce larger numbers of weapons, greater armies, or superior military technology in a technological escalation...
of the 1980s, the Defense budget was accorded a relatively low priority in Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
. According to Japanese security policy
National security of Japan
The defence policy of Japan reflects the unusual position of the country. Although it is a major diplomatic and economic power, and one with a historical reputation of military aggressiveness, Japan resists the development of armed forces with a military capability for military power projection...
, maintaining a military establishment is only one method—and by no means the best method—to achieve national security. Diplomacy
Foreign relations of Japan
Foreign relations of Japan is handled by the Ministry of Foreign Affairs of Japan.Since the surrender after World War II and the Treaty of San Francisco, Japanese diplomatic policy has been based on close partnership with the United States and the emphasis on the international cooperation such as...
, economic aid and development, and a close relationship with the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
under the terms of the 1960 security treaty
Treaty of Mutual Cooperation and Security between the United States and Japan
The was signed between the United States and Japan in Washington, D.C. on January 19, 1960. It strengthened Japan's ties to the West during the Cold War era...
are all considered more important. For FY 1986 through FY 1990, defense's share of the general budget
Monetary and fiscal policy of Japan
Monetary policy pertains to the regulatio, availability, and cost of credit, while fiscal policy deals with government expenditures, taxes, and debt...
was around 6.5 %, compared with approximately 28 % for the United States. In 1987 Japan ranked sixth in the world in total defense expenditures behind the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
, the United States, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, the Federal Republic of Germany (West Germany
West Germany
West Germany is the common English, but not official, name for the Federal Republic of Germany or FRG in the period between its creation in May 1949 to German reunification on 3 October 1990....
), and Britain
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. By 1989 it ranked third after the United States and the Soviet Union, mainly because of the increased value of the yen. In FY 1991, defense accounted for 6.2 % of the budget. According to the Stockholm International Peace Research Institute
SIPRI
Stockholm International Peace Research Institute is an independent international institute dedicated to research into conflict, armaments, arms control and disarmament...
, Japan was ranked fourth in world in 2004-2005, spending $42.1 billion; according to The World Factbook
The World Factbook
The World Factbook is a reference resource produced by the Central Intelligence Agency of the United States with almanac-style information about the countries of the world. The official paper copy version is available from the National Technical Information Service and the Government Printing Office...
, CIA, Japan was fifth, spending $44.7 billion (the ranking is different because of the CIA's radically higher estimate of spending by the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
).
In addition to annual budgets, the Defense Agency
Japan Defense Agency
The is a cabinet-level ministry of the Japanese government. As a result of a law enacted on December 15, 2006, it became a ministry on January 9, 2007. Prior to that, it was the Japan Defense Agency ...
prepared a series of cabinet-approved buildup plans beginning in 1957, which set goals for specific task capabilities and established procurement targets to achieve them. Under the first three plans (for 1958-60, 1962–66, and 1967–71), funding priorities were set to establish the ability to counter limited aggression. Economic difficulties following the 1973 oil crisis
1973 oil crisis
The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC proclaimed an oil embargo. This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. It lasted until March 1974. With the...
, however, caused major problems in achieving the Fourth Defense Buildup Plan (1972–76), and forced funding to be cut, raising questions about the basic concepts underlying defense policies.
In 1976 the government recognized that substantial increases in spending, personnel, and bases would be virtually impossible. Instead, a "standard defense concept" was suggested, one stressing qualitative improvements in the Self-Defense Forces
Japan Self-Defense Forces
The , or JSDF, occasionally referred to as JSF or SDF, are the unified military forces of Japan that were established after the end of the post–World War II Allied occupation of Japan. For most of the post-war period the JSDF was confined to the islands of Japan and not permitted to be deployed...
, rather than quantitative ones. It was decided that defense spending would focus on achieving a basic level of defense as set forth in the 1976 National Defense Program Outline. Thereafter, the government ceased to offer buildup plans that alarmed the public by their seemingly open-ended nature and switched to reliance on single fiscal year formulas that offered explicit, attainable goals.
Defense spending increased slightly during the late 1970s, and in the 1980s only the defense and Official Development Assistance budgets were allowed to increase in real terms. In 1985 the Defense Agency developed the Mid-Term Defense Estimate objectives for FY 1986 through FY 1990, to improve SDF front-line equipment and upgrade logistic support systems. For the GSDF
Japan Ground Self-Defense Force
The , or JGSDF, is the army of Japan. The largest of the three services of the Japan Self-Defense Forces, the Ground Self-Defense Force operates under the command of the chief of the ground staff, based in the city of Ichigaya, Tokyo. The present chief of ground staff is General Yoshifumi Hibako...
, these measures included the purchase of advanced weapons and equipment to improve antitank, artillery, ground-to-sea firepower, and mobile capabilities. For the MSDF
Japan Maritime Self-Defense Force
The , or JMSDF, is the naval branch of the Japan Self-Defense Forces, tasked with the naval defense of Japan. It was formed following the dissolution of the Imperial Japanese Navy after World War II....
, the focus was on upgrading antisubmarine capabilities, with the purchase of new destroyer escort
Destroyer escort
A destroyer escort is the classification for a smaller, lightly armed warship designed to be used to escort convoys of merchant marine ships, primarily of the United States Merchant Marine in World War II. It is employed primarily for anti-submarine warfare, but also provides some protection...
s equipped with the Aegis system
Aegis combat system
The Aegis Combat System is an integrated naval weapons system developed by the Missile and Surface Radar Division of RCA, and now produced by Lockheed Martin...
and SH-60J antisubmarine helicopters, and on improving antimine warfare and air defense
Anti-aircraft warfare
NATO defines air defence as "all measures designed to nullify or reduce the effectiveness of hostile air action." They include ground and air based weapon systems, associated sensor systems, command and control arrangements and passive measures. It may be to protect naval, ground and air forces...
systems. ASDF
Japan Air Self-Defense Force
The , or JASDF, is the aviation branch of the Japan Self-Defense Forces responsible for the defense of Japanese airspace and other aerospace operations. The JASDF carries out combat air patrols around Japan, while also maintaining an extensive network of ground and air early warning radar systems...
funds were concentrated on the purchase of fighter aircraft
Fighter aircraft
A fighter aircraft is a military aircraft designed primarily for air-to-air combat with other aircraft, as opposed to a bomber, which is designed primarily to attack ground targets...
and rescue helicopters. The entire cost of the Mid-Term Defense Estimate for FY 1986 through FY 1990 was projected at approximately ¥18.4 trillion (approximately US$83.2 billion, at the 1985 exchange rate).
In FY 1989, the ¥3.9 trillion defense budget accounted for 6.49 % of the total budget, or 1.006 % of GNP. In addition to the Defense Agency itself, the defense budget supported the Defense Facilities Administration Agency and the Security Council
Security Council (Japan)
The of Japan is the nine-person national security council which advises the prime minister on national security and the military and deals with a wide spectrum of issues which indirectly affect Japan's broader interests, including basic national defense policy, the National Defense Program...
. Defense Agency funding covered the GSDF, the MSDF, the ASDF, the internal bureaus, the Joint Staff Council, the National Defense Academy, the National Defense Medical College, the National Institute for Defense Studies, the Technical Research and Development Institute, and the Central Procurement Office.
The FY 1990 defense budget, at 0.997 % of the forecast GNP, dipped below the 1 % level for the first time since it was reached in 1987. But the more than ¥4.1 trillion budget still marked a 6.1 % increase over the FY 1989 defense budget and provided virtually all of the ¥104 billion requested for research and development, including substantial funds for guided-missile
Guided Missile
Guided Missile is a London based independent record label set up by Paul Kearney in 1994.Guided Missile has always focused on 'the underground', preferring to put out a steady flow of releases and developing the numerous GM events around London and beyond....
and communications technologies. Although some ¥34.6 billion was authorized over several years for joint Japan-United States research and development of the experimental FSX
Mitsubishi F-2
The Mitsubishi F-2 is a multirole fighter manufactured by Mitsubishi Heavy Industries and Lockheed Martin for the Japan Air Self-Defense Force, with a 60/40 split in manufacturing between Japan and the USA. Production started in 1996 and the first aircraft entered service in 2000. The first 76...
fighter aircraft, disputes over this project were believed to have convinced the Defense Agency to strengthen the capability of the domestic arms industry
Arms industry
The arms industry is a global industry and business which manufactures and sells weapons and military technology and equipment. It comprises government and commercial industry involved in research, development, production, and service of military material, equipment and facilities...
and increase its share of SDF contracts. After originally being cut, funds were also restored for thirty advanced model tanks and the last Aegis multiple-targeting-equipped destroyer escort needed to complete the Mid-Term Defense Estimate. The 6.1 % defense increase was accompanied by an even larger (8.2 %) increase in Official Development Assistance funding. The defense budget continued to grow in real terms in the early 1990s to ¥4.38 trillion in 1991 and ¥4.55 trillion in 1992 but remained less than 1 % of GNP.
Japanese officials resist United States pressure to agree formally that Japan will support more of the cost of maintaining United States troops
United States Forces Japan
The refers to the various divisions of the United States Armed Forces that are stationed in Japan. Under the Treaty of Mutual Cooperation and Security between the United States and Japan, the United States is obliged to defend Japan in close cooperation with the Japan Self-Defense Forces for...
, claiming that such a move will require revision of agreements between the two nations. But in FY 1989, the Japanese government
Government of Japan
The government of Japan is a constitutional monarchy where the power of the Emperor is very limited. As a ceremonial figurehead, he is defined by the 1947 constitution as "the symbol of the state and of the unity of the people". Power is held chiefly by the Prime Minister of Japan and other elected...
contributed US$2.4 billion—roughly 40 %—of the total cost. The contribution slated for FY 1990 was increased to US$2.8 billion—nearly 10 % of the total defense budget—and by the end of FY 1990 the Japanese government expected to assume all expenses for utilities and building maintenance costs for United States troops stationed in Japan.
According to the Ministry of Defense of Japan, the 2008 defense budget was ¥4.74 trillion, down by 0.8% from the ¥4.78 trillion recorded in 2007. This slight decline came despite attempts by the governing LDP to enhance the status of national defense by upgrading the Defense Agency to the Ministry of Defense, effective January 9, 2007.