It could not become one nation, since it is made up of various ethnicies. but it could become a willensnation like switzerland, perhaps. Especially during the war, there was some kind of national feeling within austria...
Among many Kakanians, there was some sort of feeling of belonging to this strange construction, which in my opinion sprang from two sources:
a) loyalty to the dynasty, especially the person of Franz Josef
b) a knowledge that while far from perfect, Austria-Hungary was not a worst-case scenario either and a break-up could be a turn for the worse
The problem is:
a) FJ is not immortal and nobody could be expected to replace his role (despite him lacking charisma as well as... a lot of other things)
b) many people who say the situation in the way I described had a feeling that it was futile nevertheless and that their way of live was doomed.
Interestingly, secular Jews were a part of the population which usually felt rather attached to the multinational monarchy.
Yes, A-H is weaker than Germany, USA or UK, and the A-H could have had a vastly better military. Not enough to beat Russia one one on one, but much, much more competitive. An A-H that has to fight a German or French quality Army has some additional challenging issues.
You are absolutely right. The German Army alone against the k.k.s? It would be 1866 all over again.
But I also agree with whoever said that considering the enemies, Austria-Hungary didn't fail that badly. Russia was an empire far more powerful - and Germany chose to concentrate on France for a long time; which didn't make the Austrian general staff happy.
And Italy was a challenge, too, especially at the point of time when they declared war.
The spending levels are so low for A-H, that they get a huge bang for the buck on spending. Just small things like Lviv and Pvov only having modern guns would do wonders. Or for that matter, having another major fortress city to anchor the eastern front. While it would be a large amount of gold to pay for it, when spread over 15-20 years, the spending is quite manageable. Or just adding a few more corps.
I agree. My opinion is that WW1 was (in some aspects) a close run thing, or at least could have been. "Every little helps". Also I think we can reconcile our opinions when better infrastructure and economic development go hand in hand with improvement of defense.
So even if we add a little to their budgets (and do not waste it but spend wisely), Austria's position improves. But still I doubt they can go to 5%, that sort of spending (resp. the mass recruitment going with it) even was a burden on France and Germany.