COUNTRY SURVEY XXI: THE UNITED KINGDOM

The UK defence economy has some distinctive features. Its Armed Forces have a worldwide capability reflected in modern air, land and sea forces with an expeditionary role. Its world role is further reflected in a nuclear capability and a high technology defence industrial base, substantial defence R&D with the UK as a major arms exporter. This survey focuses on the period 1970 to 2008. It explains the military-industrial complex and estimates a demand for military expenditure function. There follows an analysis of procurement and defence industrial policy. Future policy issues are outlined, namely, the costs of the UK's world role and its relations with European defence policy. It is concluded that the UK faces some difficult defence choices.