Annual defense budget: $330bn 

Defense spending trend: Up 10% in 2002

Even before the 9/11 attacks, emphasis in defense policy had been shifting away from strategic nuclear deterrence and large warships to "smart" missile systems and "long-range power projection," with rapid intervention capabilities built around air power. Despite setbacks in early tests, the first "interceptor" missiles of the national missile defense "shield" system are due to be in place by 2004.

The enormous US military–industrial complex dates only from the close of World War II. In the 1990s, the end of the Cold War and the need to cut the budget deficit combined to slash defense funds to their lowest level in real terms since 1945. Nuclear weapons tests were superseded by computerized "virtual" tests after the creation of the powerful ASCI White computer.

However, the Bush administration has steadily increased defense spending. The 2004 budget saw a return to Cold War levels, passing $400 billion – amounting to more than the combined defense budgets of the world's next twelve largest military spenders. The government has also hinted that it is considering developing small and "precision" nuclear weapons as part of its expanding arsenal.

Fearing that its troops could be prosecuted for political reasons, the US opposed the establishment of the International Criminal Court. This stance threatens to undermine overseas peacekeeping missions, and has led to cuts in military aid to countries which have not agreed to protect US soldiers from prosecution.

US ARMED FORCES

Army
		7620 main battle tanks (Abrams M-1)		485,000 personnel
Navy
		70 submarines, 12 carriers, 27 cruisers, 49 destroyers, 30 frigates, 21 patrol boats		400,000 personnel
Air force
		3716 combat aircraft (B-52H, B-1B, F-4, F-15, F-16, F-111, F-117, OA-10A)		367,600 personnel
Nuclear capability
		432 SLBM in 18 SSBN, 550 ICBM

From "The Financial Times World Desk Reference" © Dorling Kindersley 2004