The following sample charts and graphs demonstrate key strategic trends in the areas of politics and security, health and society, and trade and economics.

Politics and Security
Shifts in the military expenditure of Asian powers reflect an evolving regional security environment. In 2004, the United States alone accounted for 61% of military expenditure in the Asia-Pacific, followed by China (11%), Russia (8%), Japan (6%), and India (3%). Notably, China’s defense expenditure has consistently increased since 1995, while Japan’s and India’s have stayed relatively the same, and Russia’s has precipitously decreased. The surface vessel assets of these countries have followed a similar trajectory, with China’s assets increasing from 50 in 1995 to 71 in 2005. While the United States still has significantly more surface vessels than any of these countries, the difference between U.S. assets and those of China, for example, has declined from 87 in 1995 to 47 in 2005. An understanding of the reasons for and implications of these complex trends will be required to assess force postures in the Asia-Pacific.

Health and Society Demographic trends are a key indicator of the health of a society and often hint at security issues on the horizon. The following graphic example suggests that countries in Asia are experiencing dramatic demographic transformations and illustrates two key trends:

• Russia’s population has declined to such a great extent that it is now smaller than Bangladesh’s—a country with less than 1% of Russia’s total area. Given population growth rates in each country, moreover, it is likely that this disparity will continue to increase, with Bangladesh’s population becoming significantly greater.
• While life expectancy is still higher in Russia than in Bangladesh, the difference between the national averages of each country is decreasing. Since 2000, Russian life expectancy has dropped by 1.4 years, and Bangladeshi life expectancy has increased by 1.9 years.

Trade and Economics
The Asian financial crisis (1997–1998) cast a shadow of doubt on the sustainability of Asia’s impressive economic growth and awakened the international community to the region’s financial vulnerabilities. As indicated by the graphs below, China weathered the crisis considerably better than other affected countries. Indonesia, on the other hand, was particularly hard hit, with GDP growth bottoming out at -13.7% and inflation peaking at 77%. Since these setbacks, the GDP growth of these countries has rebounded to near pre-crisis levels. Among other efforts to insulate themselves from future liquidity crises, countries such as China and South Korea have significantly increased their foreign reserve holdings. While these measures may provide a degree of economic security for China and South Korea, they have nonetheless adversely affected relations with the United States. The interplay between economic policies, trade, and international relations will certainly play a pivotal role in driving regional security.