In this article, we will discuss the 15 most peaceful countries in the world. You can skip our detailed analysis of the most peaceful countries and go directly to the 5 Most Peaceful Countries in the World.
Recent Trends in Global Defense Spending
Defense spending globally has increased in light of recent events. The Russian-Ukraine war has been a catalyst for this change. The Russian invasion of Ukraine, initiated in February 2022, has made countries more conscious of their security. According to SIPRI, global military spending increased by 3.7% in 2022. The Western countries are largely united against Russian aggression and have supplied aid and weapons to Ukraine. In 2022, according to SIPRI, the world military expenditure reached its highest, amounting to $2.2 trillion. Even the more peaceful European countries have expanded their military budgets following the war. European defense expenditure increased by 13% in 2022.
The defense industry has received record investment post the Russian invasion of Ukraine. These increased investments feel immune to the possibility of a global recession as the high inflation rates have failed to impact these growing numbers. Major developments are taking place globally in defense. According to SIPRI, the increase in European military spending has been the most rapid compared to the past thirty years. 4.1% of the Russian GDP accounts for military spending. In 2022, 2.3% of the total military budget of the United States was given to Ukraine as aid. This small percentage corresponds to a significant amount of $19.9 billion. India and Saudi Arabia have also tremendously increased their defense spending. As reported by SIPRI, defense spending in India rose by 6%, whereas a 16% increase was seen in the spending by Saudi Arabia.
The top three countries with the largest defense budget include; the United States, China, and Russia. According to SIPRI, these three contributed to 56% of the entire global spending on defense in 2022. The United States is one of the main contributors to global defense spending. It has a military budget of $886 billion for fiscal 2024. From 2012 to 2021, the United States’ investment in military research and development increased by 24%.
Some of the Biggest Defense Contractors
The defense industry has been one of the least impacted industries by the pandemic. It has maintained a stable growth rate throughout this time. According to a report by the Business Research Company, the global defense market expanded from $534.79 billion in 2022 to $577.19 billion in 2023 at a compound annual growth rate of 7.9%. The defense market is further expected to grow at a compound annual growth rate of 5.6% from 2023 through 2027 and reach a valuation of $718.12 billion by the end of the forecasted period.
The business for defense contractors has been improving recently due to the geopolitical turmoil. The Boeing Company (NYSE:BA), Huntington Ingalls Industries, Inc. (NYSE:HII), and Lockheed Martin Corporation (NYSE:LMT) are some of the most prominent names in the defense industry.
Lockheed Martin Corporation (NYSE:LMT) is primarily a security and aerospace company. It is a pertinent defense contractor for the United States government. Lockheed Martin Corporation (NYSE:LMT) provides the United States with cutting-edge aircraft like F16 and F35. These aircraft greatly contribute to the United State’s military strength and can even carry nuclear weapons. On July 18, Lockheed Martin Corporation (NYSE:LMT) reported earnings for the fiscal second first quarter of 2023. The company reported earnings per share of $6.73 and outperformed EPS estimates by $0.28. The company reported a revenue of $16.69 billion and was ahead of Wall Street estimates by $798.54 million.
Huntington Ingalls Industries, Inc. (NYSE:HII) is the biggest military shipbuilder company operating in the United States. In the first quarter of 2023, Huntington Ingalls Industries, Inc. (NYSE:HII) reported earnings per share of $3.23 and outperformed EPS estimates by $0.31. The company reported a revenue of $2.67 billion and was ahead of Wall Street estimates by $74.23 million. Huntington Ingalls Industries, Inc. (NYSE:HII) is responsible for more ships than any other shipbuilder in U.S. naval history.
The Boeing Company (NYSE:BA) mainly deals in the manufacturing and selling of commercial and military aircraft. The Boeing Company (NYSE:BA) provides the United States with the Minuteman nuclear missiles. This infamous missile is capable of reaching its destination by traveling 23 times the speed of sound. It can reach targets as far as 13,000 km from the original launch site. On July 26, The Boeing Company (NYSE:BA) reported strong earnings for the fiscal second quarter of 2023. The company reported a revenue of $19.75 billion. This revenue was up 18.4% year over year and ahead of Wall Street estimates by $1.18 billion. Here are some comments from the company’s Q2 2023 earnings call:
“The quarter was solid, very solid for all of our businesses. We continue to make steady progress on our recovery. We do have challenges. The supply chain notably is the most significant, but it’s steadily getting better. Overall, we feel good about our operational and financial outlook, including the free cash flow and delivery ranges that we set for 2023 as well as for that 2025 and ‘26 timeframe. We are particularly encouraged by generating $2.6 billion in free cash flow in the quarter. Cash flow is the best metric that we have to measure progress against this recovery. We had a very strong second quarter and we are confident in the $3 billion to $5 billion target for the year.”
In an increasingly interconnected world where conflicts and geopolitical tensions often make headlines, it is essential to recognize that there are countries that prioritize peace and stability. On one hand, we have countries grappling with armed conflicts and violence. On the other hand, we have countries that prioritize diplomacy, cooperation, and social harmony to promote peaceful coexistence. Let’s now take a look at some of the most peaceful countries in the world.
Copyright: tbotelho / 123RF Stock Photo
Our Methodology
Amidst the rising global defense spending, some countries have been able to keep their defense spending low. This minimal defense spending can be attributed to geography, economic or political conditions. To compile the list of the most peaceful countries in the world, we have analyzed their defense spending. To get this data, we mainly reviewed the SIPRI Military Expenditure Database. We have used defense spending as a percentage of GDP as our primary metric. However, this metric failed to explain countries like Japan. Japan has a low percentage of defense spending in GDP. This low spending does not correspond to Japan being a peaceful country. It corresponds to the United States policies that prevent Japan’s defense spending from increasing beyond a certain limit.
We have removed the countries involved in major violent conflicts over the past 100 years to accommodate such cases. Some of these countries had conflicts in the past, like civil wars; nevertheless, they have not been involved in major wars like WWI, WW2, Korea, or Vietnam War. Countries with turbulent environments and low military spending percentages have been ranked lower than countries with stable environments and low percentages of military spending. Thus, the list includes countries not involved in any major conflicts, regardless of the present status, and low military spending percentage in GDP. The data for each country has been verified manually for accuracy from multiple sources, including Global Fire Power, Wise Voter, and World Bank. These 25 countries have been ranked in descending order of their military spending as a percentage of GDP, or according to our hypothesis, from the least to most peaceful.
Please note there are some exceptions for countries that have low military spending but are ranked as “less peaceful”. We have given a reason for each of these country’s ranks.
15 Most Peaceful Countries in the World
15. Moldova
Military Spending as a Percentage of GDP: 0.32%
Moldova is located in Europe. The Russian invasion of Ukraine has impacted the peace situation in the country. For this reason, we have ranked it lower than other countries with relatively more military spending. Moldova, however, has avoided involvement in any major wars.
14. Benin
Military Spending as a Percentage of GDP: 0.56%
Benin is located in Western Africa. It is a peaceful country with low military spending. Being part of ECOWAS (Economic Community of West African States) has enabled these low rates. The internal crime rates have led to this lower ranking despite having minimal military spending.
14. Kazakhstan
Military Spending as a Percentage of GDP: 0.51%
Kazakhstan is located in Central Asia. It has vast mineral resources and a budding economy. Regional security treaty CSTO (Collective Security Treaty Organization) has promoted low military spending rates. The 2022 conflicts within the country have led to it being ranked lower despite having low military spending.
12. Switzerland
Military Spending as a Percentage of GDP: 0.76%
Switzerland is a country in Europe. Switzerland has maintained a history of neutrality and has avoided major wars. The geography of the country facilitates its defense greatly. Military spending is relatively lower than in other countries in the same region.
11. Trinidad and Tobago
Military Spending as a Percentage of GDP: 0.72%
Trinidad and Tobago is located in the Caribbean Sea. It is a peaceful country and has not been involved in any major conflicts. Despite having a strong economy, the country focuses on peaceful policies and maintains low military spending rates.
10. Dominican Republic
Military Spending as a Percentage of GDP: 0.72%
The Dominican Republic is a country in the Caribbean. Regional organizations like OAS (Organization of American States) have enabled it to maintain low military spending rates. It is a largely peaceful country.
9. Luxembourg
Military Spending as a Percentage of GDP: 0.7%
Luxembourg is a peaceful country located in Europe. This country has successfully maintained a peaceful environment since World War II. It is also a member of NATO that facilitates this peaceful environment while keeping military spending minimal.
8. Gambia
Military Spending as a Percentage of GDP: 0.69%
Gambia is located in West Africa. The regional organization ECOWAS (Economic Community of West African States) has facilitated the low military spending rates in the country. The country has maintained a relatively more peaceful environment than countries in the region.
7. Malawi
Military Spending as a Percentage of GDP: 0.64%
Malawi is located in southern Africa. It is a landlocked country and has not been a part of any major conflict. SADC (Southern African Development Community), a regional organization, facilitates maintaining an environment of harmony in the country. Malawi is a peaceful country and has low military spending.
6. Mongolia
Military Spending as a Percentage of GDP: 0.6%
Mongolia is located in East Asia. The country has maintained a peaceful environment and low military spending. The regional organization CSTO (Collective Security Treaty Organization) facilitates these low rates.
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Disclosure: None. 15 Most Peaceful Countries in the World is originally published on Insider Monkey
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