Arms industry
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The AK-47 has been produced in greater numbers than any other assault rifle and has been used in conflicts all over the world. |
The
arms industry is a massive global industry. Its products include
guns,
ammunition,
missiles,
military aircraft, and their associated consumables and systems. The
arms trade is the exchange of arms or
weapons among two or more parties, generally but not exclusively sovereign
nations.
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Russian arms, such as this Ground-to-air system, remain among the most exported [1] |
It is estimated that yearly, over 900 billion dollars is spent on arms.[
2] Almost every industrialized country in the world has a domestic arms industry to supply its own
military forces. Some countries also have a substantial legal or illegal domestic trade in weapons for use by its citizens. The illegal trade in
small arms is prevalent in many countries and regions affected by political instability. Frequently, there are links between the legal arms trade and the illegal arms trade, with legally purchased weaponry being re-sold for illegal purposes. The arms industry can thus pose problems related to its lack of transparency, as both legal and illegal contracts are often made in secret.
Contracts to supply a given county's military are awarded by the government, making arms contracts of substantial political importance. The link between politics and the arms trade can result in the development of what President
Eisenhower described as a
military-industrial complex, where the armed forces, commerce, and politics become closely linked.
The
Control Arms Campaign, founded by
Amnesty International,
Oxfam, and the
International Network on Small Arms, estimates that there are over 600 million items of small arms in circulation, and that over 1135 companies based in more than 98 different countries are manufacturing small arms as well as their various components and ammunition. An average of over 500,000 deaths are caused by small arms every year, approximately one death per minute.[
3]
For many people, the arms trade is problematic as they may see supplying the weapons for a conflict as morally akin to becoming involved oneself, but at negligible personal, national or corporate risk. Essentially, they view the arms industry as a means of profiting from war and death when failure to supply arms could lead to an early disengagement.
India and
China were the biggest arms importers in 2002, 2003 and 2004 [
4].
Top 8 arms exporters in 2004| Country | Current US dollars | 1990 US dollars |
|---|
| United States | $18,500,000,000 | $5,400,000,000 |
| Russia | $4,600,000,000 | $6,200,000,000 |
| France | $4,400,000,000 | $2,100,000,000 |
| United Kingdom | $1,900,000,000 | $985,000,000 |
| Germany | $900,000,000 | $1,100,000,000 |
| Canada | $900,000,000 | $543,000,000 |
| China | $700,000,000 | $125,000,000 |
| Israel | $500,000,000 | $283,000,000 |
Figures are in
United States dollars.
Sources:
CRS,
SIPRIand
the UN websiteSource:
Arms Export Trends, [
5]Source:
Arms Production Trends 2004, [
6]
The United States is by far the largest exporter of weapons in the world, selling more weapons than the next 14 countries combined. Military sales account for about 18 percent of the national budget, far and away the greatest proportion of any other nation. (Estimated budget authority as presented in the President's budget.) Saul states that the American government cannot reduce arms sales because of the consequent fall in GDP. (See John Ralston Saul's
The Collapse of Globalism, 2005)
U.S. arms are sold either as
foreign military sales (FMS), in which
the Pentagon is an intermediate negotiator, and
direct commercial sales (DCS), where a company directly negotiates with its buyer. Many sales require a license from the
State Department. The
Defense Department manages the
excess defense articles (EDA), weapons from the US military given away or sold at bargain prices, emergency drawdowns, assistance provided at the discretion of the
President, and
international military education and training (IMET).
From
1989 to
1996, the global value of direct commercial arms sales was US$257 billion, of which 45% was exported from the US. According to the 2005 annual US
congress reports, 58% of all US arms trade contracts are made with
developing countries.
International military education and training
In fiscal year 2002, $70 million USD was spent on IMET for 113 countries. During this same year, $46 million worth of drawdowns were provided to
Nigeria ($4 million),
Afghanistan ($2 million),
Georgia ($25 million), the
Philippines ($10 million) and
Tunisia ($5 million).
Defense contractors are weapon manufacturers or companies participating in weapon research and warfare simulation.
See also
private military contractor.
For a complete list, see: List of modern armament manufacturers
