Australia is in a similar position with half of its army forces soon to be deployed overseas (we have a tiny army btw). Mainly in Iraq, Afghanistan, East Timor and the Solomon's along with a small amount of rotations to units with other nations forces and UN peacekeeping duties.

But less and less people are joining up... the primary cause hasn't been touted as fear or poor morale... it is the crap pay rates and lack of a career ladder once you leave.