With Houthi attacks, war in Gaza and Ukraine, and the return of Trump, the wider West must spend more on security.
In the early 1990s, following the end of the Cold War, U.S. President George H.W. Bush heralded the “peace dividend,” a period of reduced defense budgets and a sense of security for the West. The fall of the Soviet Union, he argued, would allow for permanent reductions in military spending. The West, including the United States, was quick to embrace this idea, with many convinced that the era of great-power competition had ended. China’s entry into the World Trade Organization in 2001 and Russia’s then perceived shift towards reform under Vladimir Putin further reinforced the belief in a new global order focused on economic cooperation rather than military confrontation.
However, the so-called peace dividend is now rapidly disappearing. The West is facing a host of growing threats, beginning with Russia’s unprovoked and ongoing war in Ukraine. Russia’s aggressive actions have reignited fears of great-power conflict, especially in Europe, where countries are being forced to reconsider their defense postures and military spending. As this war unfolds, NATO and European countries find themselves confronting not only Russian military power but also its influence over global energy markets and political alliances.
Simultaneously, China has grown more assertive in its regional ambitions. The rise of China as a global power is challenging U.S. dominance, particularly in the Asia-Pacific region. The looming threat to Taiwan, a democratically governed island claimed by Beijing, has become one of the most pressing security concerns. With Chinese naval and air activity increasing near Taiwan, the possibility of military conflict in the region has escalated, prompting both the U.S. and its allies to reconsider defense strategies and the costs associated with maintaining military readiness.
Meanwhile, in the Middle East, a new set of challenges is emerging. The conflict in Gaza has exacerbated tensions in the region, with Iran leading an “axis of resistance” that includes groups such as Hamas, Hezbollah, and the Houthis. These groups, fueled by anti-Western and anti-Israeli sentiment, are actively challenging the regional status quo. The recent attacks by Houthi fighters on international shipping in the Red Sea serve as a stark reminder of the continuing volatility in the region. These incidents underscore the growing instability in the Middle East, where traditional alliances are being tested, and the influence of Iran is expanding.
The world’s security landscape is now more complex and unpredictable than it has been in decades. The era of relative peace, marked by the post-Cold War optimism, is over. As conflicts intensify across Ukraine, the Taiwan Strait, and the Middle East, the need for robust defense spending has never been clearer. The West can no longer afford to ignore the realities of great-power competition and regional conflicts. It must reassess its security strategies and commit to spending more on defense to ensure its place in an increasingly unstable world order.
This renewed emphasis on security comes at a time when the global political scene is also becoming more turbulent. The return of Donald Trump to the political stage has further complicated matters, as his policies and rhetoric regarding foreign intervention, defense spending, and international relations continue to challenge the status quo. As the world faces a multitude of threats, from Russia and China to Iran and non-state actors like the Houthis, the West must confront the harsh reality that the era of easy peace is no more.
