June 4, 2010 - 15:51 AMT
Azerbaijan's military can put fragile truce with Armenia under threat

Worldwide military spending jumped 5.9% in 2009 to $1.5 trillion, according to a new report that underscores the long-term decision of many countries to prioritize defense. This is despite a recession that shrunk the global economy 2.2%.

The U.S. remains by far the biggest military spender, followed by China, the Stockholm International Peace Research Institute (SIPRI) said in its annual report on worldwide military expenditures, released June 2. Last year saw the steepest jump in worldwide military spending since the start of the Iraq War in 2003.

But, as the world's military spending increased nearly 50% over the past decade, the biggest military budget increases were seen in small, oil-rich countries flooded with new wealth.

In Central Asia, Azerbaijan has used oil revenues to beef up forces along its border with Armenia, which has traditionally had a stronger army and enjoys strategic terrain advantages. The International Crisis Group said in a report last year that “Azerbaijan's stronger military could put the fragile truce with Armenia under threat”, Christian Science Monitor reported.