Our new defence strategy highlights shifting global landscape – Editorial
THREE KEY FACTS
- The Government’s defence spending will reach over 2% of GDP within eight years, with $12 billion in funding planned over the next four years.
- Major investments include replacing the Boeing 757 fleet, enhancing strike capabilities and acquiring new maritime helicopters.
- The plan focuses on critical investments, extending the life of Anzac frigates, and aims for greater interoperability with partners.
As British Prime Minister Sir Keir Starmer wrote over the weekend, the world as we knew it is gone.
The pillars we have relied on to largely maintain a long-standing global peace since the end of World War II are showing more than just a few cracks, now chunks of the foundation is crumbling.
This erosion pre-dates Donald Trump’s return to the White House, but his global trade war has greatly accelerated the decline.
As a small, trading nation, New Zealand has relied on our friends to provide the security for our economic prosperity for decades.
Whether people want to admit it or not, the US Navy has been a global protector of trade routes for the cars, televisions and clothes we buy and the goods we sell to the world.
With an increasingly isolationist American foreign and trade policy, however, how long can we continue to rely on this being maintained?
Trump’s tariff tirade in the last week appears born out of spite and ignorance. But it also reveals a wider American resentment - that the West for too long has taken the United States for granted.
The US has often put pressure on its allies and partners like New Zealand to lift defence spending. Most have ignored the calls, believing American might would always be there.
Our Government’s announcement that defence spending will increase to more than 2% of GDP within the next eight years is a recognition of how the global power dynamics have shifted. There will be $12 billion of funding over the next four years, including $9b of new spending.
It is a recognition that in this new world we must be able to protect our own economic prosperity if required.
With a threat at its gates and without the guarantee of an American security blanket, Europe has entered a period of massive defence spending increases. Our sole formal ally, Australia had already been increasing defence spending for several years and has a future defence budget increasing to 2.4% of GDP.
Canberra largely sees a threat coming from a confident China, with the possibility of disrupted trade routes and interference in economic areas.
In announcing our increased defence budget on Monday, Prime Minister Christopher Luxon said it “represents the floor, not the ceiling”.
It must be, as Luxon indicated, part of our new long-term strategy.
Defence Minister Judith Collins says more money for the New Zealand Defence Force is not about beating the drums of war or choosing sides in a potential future conflict, but protecting what we have.
Some have already criticised the increased spending as a step away from an independent foreign policy, but in this new world this must be our foreign policy.
Collins said Kiwis needed to realise “we’re not playing tiddlywinks here”, while Labour leader Chris Hipkins is “broadly” supportive of the new plan.
Our economy and way of life has been abundantly safer with America in it, but we must be prepared for this new world.
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