May 2025
In a world where geopolitical tensions often dominate headlines, some nations are choosing a different path—one of diplomacy, development, and peace. These countries allocate a minimal portion of their Gross Domestic Product (GDP) to defense spending, focusing instead on social welfare, education, and infrastructure. Let’s explore the countries leading this trend in 2025.
Countries with the Lowest Defense Budgets (2025)
Based on data from the World Bank, here are the countries with the lowest defense spending as a percentage of their GDP:
Rank Country Defense Spending (% of GDP) Notes
1 Costa Rica 0.0% Abolished military in 1949; invests in education and health.
2 Panama 0.1% Maintains a small police force; focuses on civilian infrastructure.
3 Iceland 0.2% NATO member with no standing army; relies on international agreements.
4 Liechtenstein 0.2% No military; defense provided by Switzerland.
5 San Marino 0.3% Small military; defense agreements with Italy.
6 Andorra 0.4% No standing army; defense provided by France and Spain.
7 Monaco 0.5% Small military; relies on France for defense.
8 Switzerland 0.6% Neutral country; maintains a militia system.
9 Bhutan 0.7% Small military; focuses on Gross National Happiness.
10 Japan 0.9% Pacifist constitution; Self-Defense Forces with limited capabilities.
Note: Defense spending percentages are approximate and based on the most recent data available.
Why These Countries Choose Minimal Defense Spending
Several factors contribute to the low defense budgets in these nations:
Neutrality and Non-Alignment: Countries like Switzerland and Japan maintain neutral stances in international conflicts, reducing the need for large military forces.
Defense Agreements: Nations such as Andorra and Monaco rely on defense pacts with neighboring countries, allowing them to allocate resources elsewhere.
Focus on Social Development: Costa Rica and Bhutan prioritize education, healthcare, and environmental sustainability over military expenditure.
Historical Decisions: Some countries, like Panama and Iceland, have historical precedents of demilitarization that continue to influence their defense policies.
Global Implications
While these countries spend a small fraction of their GDP on defense, they often invest heavily in other areas:
Education: Costa Rica spends a significant portion of its budget on education, leading to high literacy rates and a well-educated populace.
Healthcare: Nations like Switzerland and Japan offer universal healthcare systems, contributing to high life expectancy and quality of life.
Environmental Sustainability: Bhutan is renowned for its commitment to environmental conservation, aiming to maintain a carbon-negative status.
These examples demonstrate that low defense spending does not equate to weakness; rather, it reflects a strategic choice to invest in human development and global cooperation.
Conclusion
In a world where military expenditure often correlates with power, these countries prove that peace, diplomacy, and development can lead to prosperity and security. Their commitment to minimal defense spending highlights an alternative path—one that prioritizes human well-being over military might.
Note: This article is based on publicly available information as of May 2025. For the most current updates, please refer to official government releases and international news outlets.
