FIGURE 31.2 Global Comparison: Countries with the Highest Military Expenditures, 2005 During the Cold War, the military budgets of the United States and the Soviet Union were relatively even. Even before the Iraq War began in 2003, the U.S. military budget constituted 47 percent of total world military expenditures. Massive defense budgets reflected the determination of Democratic and Republican administrations alike to maintain dominance in the world, even while the capacities of traditional enemies shrank.