By Ambassador Sheikh Mohammed Belal, CEO, Common Fund for Commodities
The math is simple: War = Poverty Investment in people = Prosperity
I write this from The Hague—a city whose very cobblestones echo with the footsteps of diplomats, jurists, and dreamers who believed that peace is not an ideal, but a duty. The same city where, over a century ago, nations gathered not to plan wars, but to prevent them.
Today, as we weigh missiles against medicine, we might recall the haunting words posed to a soldier in an ancient tale: “If all are killed, who do you serve?”
As global leaders converge on The Hague—long hailed as the City of Peace and Justice—for the NATO summit, this question deserves an answer. Defence budgets are reaching historic highs, yet so too are poverty, hunger, and social inequality. The question is not whether nations have the right to defend themselves—it is whether the world can afford the cost of doing so in a way that erodes the very foundations of human dignity.
Once envisioned as a beacon of diplomacy, The Hague now risks being overshadowed by the machinery of militarism. As bombs are prioritized over bread, tanks over teachers, and drones over doctors, we must ask: are we protecting our societies, or impoverishing them?
Staggering Disparities
In 2024, NATO’s overall military spending rose by 11%, with European members increasing their budgets by 19%. Meanwhile, critical infrastructure crumbles. Germany is committing 2% of its GDP to defence even as 40% of its schools lack heating and digital tools. France allocates €50 billion to its military while 20,000 people sleep rough on the streets of Paris.
Globally, military expenditures have soared to an eye-watering $2.7 trillion per year—enough to fund the entire UN system for 75 years. The United States alone accounts for 37% of this, while Russia and Ukraine dedicate 7.1% and 34% of their GDPs respectively to military budgets. These figures are not just unsustainable—they are unjust.
In the Global South, the consequences are even more dire. Many developing countries now spend twice as much on defence as on healthcare. Ethiopia, for example, allocates 17% of its government budget to military spending and just 1% to health. These are not statistics—they are choices that sacrifice futures.
Weapons Over Wellbeing
The opportunity costs are devastating. One modern heavy bomber costs as much as:
- Building 30 schools
- Powering two towns
- Equipping two fully operational hospitals
The war in Afghanistan has already cost the U.S. over $2 trillion, much of it in long-term liabilities like veterans’ care and debt interest. And still, the cycle of violence continues.
For every €1 invested in peacebuilding, the world spends €16 on war. We are allocating 200 times more to armies than to conflict prevention.
An Investment in Justice and Dignity
The Hague is home to the International Court of Justice, the International Criminal Court, and the OPCW—all institutions grounded in the belief that sustainable peace comes from justice, not domination. Yet these ideals are increasingly dwarfed by the shadow of militarized politics.
At the Common Fund for Commodities (CFC), we see daily how small investments can transform lives. Over the past three years, we have received 873 viable project proposals requesting $770 million—initiatives that could lift communities out of poverty through sustainable agriculture, inclusive finance, and climate-resilient development.
We were able to fund just 6% of them.
The shortfall represents just 0.06% of NATO’s annual budget—a rounding error for global security alliances, yet a lifeline for millions.
With similar modest reallocations:
- $13 billion could provide clean water and sanitation to 100 million people
- $5 billion could fund universal primary education in 20 developing nations
- $500 million could create 2.6 million green jobs
And it’s not just the Global South that would benefit. Germany’s schools require $50 billion in upgrades—just two years’ worth of its new defence spending. France could resolve its housing crisis with a fifth of its military budget. The dividends of peace are local as well as global.
Toward a New Peace Compact
The current trajectory is not inevitable—it is a choice. A better path exists, and it begins here, in The Hague:
- Launch a NATO Peace Dividend Initiative, earmarking at least 1% of defence budgets for development.
- Create a Hague-based accountability mechanism to track defence spending versus human development outcomes.
- Establish binding national commitments that no country spends more on military than on education and healthcare individually, not combined.
Security Rooted in Dignity
True security is not measured in missiles or military drills—it is measured in children who are fed, schools that are built, jobs that sustain dignity, and communities that thrive.
The Hague was not built to host summits of steel and sanctions. It was founded as a sanctuary for justice. It must now reclaim that mantle by advocating for a more just and equitable global order—one in which investment in peace and people outweighs the call to arms.
Let us not confuse deterrence with development. Let us not conflate security with superiority. The world does not need more weapons. It needs more wisdom.
As stewards of peace, we must ask: Why destroy when we can build? Why rob dignity, when we can restore it?
In this city of peace, the answer should be clear.
Disclaimer: The views expressed in this article are solely those of the author and do not necessarily reflect the official position of the Common Fund for Commodities or any affiliated institution
