The Finnish Defense Forces' Budget, 1986-2020: Analysis of Funding Variability
Abstract
Funding is the backbone of national defense; without adequate funding there will not be adequate capabilities to defend a nation. In many cases, the largest discretionary part of a nation's budget is defense related. This is the case also in Finland. Based on a review on the literature on factors influencing defense budgets in Western nations, this paper builds a theoretical model and uses it to analyze the changes in the Finnish Defense Forces budget between 1986 and 2020. The developed model and analysis consider the following variables: Gross domestic product (GDP), political composition of government, threat, and public support. The analysis reveals that the typical variables known to correlate with Western defense appropriations are not valid for Finland. The explanatory variables that do correlate with the Finnish Defense Forces' budget are GDP and threat. The study, however, also acknowledges that unlike its Western counterparts, Finland not only shares a border with Russia and has engaged in conflicts with that country twice, but Finland is also not a member of the North Atlantic Treaty Organization. Such factors may emphasize Finland's self-reliance in defense matters. Furthermore, the small sample size used in the study may also account for the differences in the correlation of variables and the Finnish Defense Forces' budget and suggest opportunities for follow-on research.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 2021
- Accession Number
- AD1164977
Entities
People
- Tuomas A. Pernu
Organizations
- Naval Postgraduate School