The report's authors note that both countries allocate significant funds to finance the military sphere. If Armenia spends about $ 400 million per year for this purpose, Azerbaijan’s military expenditures are estimated at $ 1 billion 770 million. Moreover, compared to 2011 in the year 2012, this amount increased by $ 90 million.
In general, the document says, Azerbaijan spends about 2,5% of GDP for military spending, Armenia - 4%.
The authors of the report also estimated the level of combat effectiveness of the two armies. In this comparison, according to specialists from the International Institute for Strategic Studies, Armenia wins. "The Armenian Armed Forces are quite qualified and clearly represent the goals and tasks set for them. At the same time, the number of professional military personnel serving on a contract basis continues to grow in the Armed Forces of Armenia, although the call for military service continues.
Analyzing the most pressing problems of the Armenian Armed Forces, analysts concluded that the most vulnerable in their composition are the Air Force. “The main problem of the air forces of Armenia is their service, as well as their overall efficiency. That is why Russia’s defense of Armenia’s airspace is through a leased airbase,” the report authors write.
The experts also touched upon the reforms carried out in the Armenian army. In their opinion, the main goal of the reforms is to increase the share of contractors, as well as to improve the quality of arms procurement. "At the same time, attempts at more serious structural changes, aimed, in particular, at raising the level of exercises and the professionalism of the personnel, are faced with quite deep-seated problems.
At the same time, they say in IISS, despite the serious funds allocated by Armenia to upgrade and modernize the available weapons, the Armenian armed forces are still far from the level of saturation with the latest technology. This, in particular, is due to corruption, as well as the low efficiency of financial management in the Armenian Ministry of Defense.
Regarding the situation on the contact line of the Armed Forces of Azerbaijan and Nagorno-Karabakh, the authors of the report note that in 2012, at least twice (in spring and summer) there was a sharp increase in tension in the conflict zone, which, however, did not lead to the resumption of hostilities in the region .
Experts are quite critical of the capabilities of the Azerbaijani army. The report notes that despite the impressive purchases of weapons that were made possible by the profits from the sale of oil, the Azerbaijani Armed Forces in the air arena cannot achieve a definite advantage, which can become a serious risk factor during possible military actions in Karabakh. "The same oil has allowed Azerbaijan to acquire the latest C-300 systems, but it is not yet clear that this generally gives Baku from the point of view of increasing combat capability," the report says.