Arms industry
Encyclopedia
The arms industry is a global industry
and business
which manufactures and sells weapons and military technology and equipment. It comprises government
and commercial
industry
involved in research, development, production, and service of military
material
, equipment and facilities. Arms producing companies, also referred to as defence companies
or military industry, produce arms mainly for the armed forces
of states
. Departments of government also operate in the arms industry, buying and selling weapons, munitions and other military items. Products include gun
s, ammunition
, missile
s, military aircraft
, military vehicle
s, ship
s, electronic systems
, and more. The arms industry also conducts significant research and development
.
It is estimated that yearly, over 1.5 trillion dollars are spent on military expenditures worldwide (2.7% of World GDP). This represents a decline from 1990 when military expenditures made up 4% of world GDP. Part of this goes to the procurement of military hardware and services from the military industry. The combined arms sales of the top 100 largest arms producing companies amounted to an estimated $315 billion in 2006. In 2004 over $30 billion were spent in the international arms trade (a figure that excludes domestic sales of arms). The arms trade has also been one of the sectors impacted by the credit crunch
, with total deal value in the market halving from US$32.9bn to US$14.3bn in 2008. Many industrialized countries have a domestic arms industry to supply their own military forces. Some countries also have a substantial legal or illegal domestic trade in weapons for use by its citizens. An illegal trade in small arms
is prevalent in many countries and regions affected by political instability.
Contracts to supply a given country'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 US President Dwight D. Eisenhower
described as a military-industrial-congressional complex, where the armed forces, commerce, and politics become closely linked. The European defence procurement
is more or less analogous to the U.S. military-industrial complex
. Various corporations, some publicly held, others private, bid for these contracts, which are often worth many billions of dollars. Sometimes, such as the contract for the new Joint Strike Fighter, a competitive tendering process takes place, where the decision is made on the merits of the design submitted by the companies involved. Other times, no bidding or competition takes place.
In the Cold War Era
, arms exports were used by both the Soviet Union
and the United States
to influence their standings in other countries, particularly Third World Countries
.
to heavy artillery, and the majority of producers are small. Many are located in Third World
countries. International trade in handgun
s, machine gun
s, tanks, armored personnel carriers and other relatively inexpensive weapons is substantial. There is relatively little regulation at the international level, and as a result, many weapons fall into the hands of rebel forces, terrorists, or regimes under sanctions.
, founded by Amnesty International
, Oxfam
, and the International Action Network on Small Arms, estimated in 2003 that there are over 639 million small arms in circulation, and that over 1,135 companies based in more than 98 different countries manufacture small arms as well as their various components and ammunition.
), conventional missiles, and military satellites, this is the most technologically advanced sector of the market. It is also the least competitive from an economic standpoint, with a handful of companies dominating the entire market. The top clients and major producers are virtually all located in the western world
, with the United States easily in first place. Prominent aerospace firms include Dassault Aviation
, Sukhoi
, EADS
, Finmeccanica
, Thales Group
, Lockheed Martin
, Boeing
, and BAE Systems
. There are also several multinational
consortia mostly involved in the manufacturing of fighter jets, such as the Eurofighter. The largest military contract in history, signed in October 2001, involved the development of the Joint Strike Fighter.
All of the world's major powers maintain substantial maritime forces to provide a global presence, with the largest nations possessing aircraft carrier
s, nuclear submarine
s and advanced anti-air defense systems
. The vast majority of military ships are conventionally powered, but some are nuclear-powered. There is also a large global market in second-hand naval vessels, generally purchased by developing countries from Western
governments.
. Total world spending amounted to $1.63 trillion USD in 2010.
The unit in this table are so-called trend indicator values expressed in millions of US dollars at 1990s prices. These values do not represent real financial flows but are a crude instrument to estimate volumes of arms transfers, regardless of the contracted prices, which can be as low as zero in the case of military aid. Ordered by descending 2000-2010 values. The information is from the Stockholm International Peace Research Institute
.
The information is also from the Stockholm International Peace Research Institute or from the national defence commissions where available and is updated at least once a year.
Next to SIPRI there are several other sources that provide data on international transfers of arms. These include national reports by national governments about arms exports, the UN register on conventional arms and an annual publication by the US Congressional Research Service that includes data on arms exports to developing countries as compiled by US intelligence agencies. A list of such sources can be found at the SIPRI website. http://www.sipri.org/contents/armstrad/ Due to the different methodologies and definitions used different sources often provide significantly different data. For example, according to Statistisk sentralbyrå (Norway state statistics), Norway exports a greater value (in USD) of arms than many of the nations listed above.
Some of the differences are possibly due to deliberate over- or under-reporting by some of the sources. Governments may claim high arms exports as part of their role in marketing
efforts of their national arms industry or they may claim low arms exports in order to be perceived as a responsible international actor.
As of 2008 Britain has become the worlds leading developer of arms with British company BAE Systems.http://www.sipri.org/research/armaments/production/Top100/data/copy2_of_top1002008 Defence group BAE Systems is the first company outside the U.S. to reach the top position,thanks to a deal with the Pentagon for mine-resistant vehicles to be used in Iraq and Afghanistan. According to the Stockholm International Peace Research Institute, a defence think tank, the former British Aerospace group's arms sales are ahead of American market leaders Lockheed Martin and Boeing. The report reveals BAE's U.S. subsidiary was alone responsible for 61.5 per cent of the group's arms sales and around 58.5 per cent of total group sales. This demonstrates BAE's increasing reliance on orders for conventional weapons as the U.S. cuts back on its nuclear arsenal. The British figures were also boosted by orders for Eurofighter Typhoon jets from Saudi Arabia.
The unit in this table are so-called trend indicator values expressed in millions of US dollars. These values do not represent real financial flows but are a crude instrument to estimate volumes of arms transfers, regardless of the contracted prices, which can be as low as zero in the case of military aid.
, manpower, and other expenditures for a military force.
(awarded the Nobel Peace Prize
in 1987 for his efforts to end civil wars across Central America through the Esquipulas II Accords) has stated:
The European Council
stated to the United Nations General Assembly
:
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...
and business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
which manufactures and sells weapons and military technology and equipment. It comprises government
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
and commercial
Commerce
While business refers to the value-creating activities of an organization for profit, commerce means the whole system of an economy that constitutes an environment for business. The system includes legal, economic, political, social, cultural, and technological systems that are in operation in any...
industry
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...
involved in research, development, production, and service of military
Military
A military is an organization authorized by its greater society to use lethal force, usually including use of weapons, in defending its country by combating actual or perceived threats. The military may have additional functions of use to its greater society, such as advancing a political agenda e.g...
material
Material
Material is anything made of matter, constituted of one or more substances. Wood, cement, hydrogen, air and water are all examples of materials. Sometimes the term "material" is used more narrowly to refer to substances or components with certain physical properties that are used as inputs to...
, equipment and facilities. Arms producing companies, also referred to as defence companies
Defense contractor
A defense contractor is a business organization or individual that provides products or services to a military department of a government. Products typically include military aircraft, ships, vehicles, weaponry, and electronic systems...
or military industry, produce arms mainly for the armed forces
Armed forces
The armed forces of a country are its government-sponsored defense, fighting forces, and organizations. They exist to further the foreign and domestic policies of their governing body, and to defend that body and the nation it represents from external aggressors. In some countries paramilitary...
of states
State (polity)
A state is an organized political community, living under a government. States may be sovereign and may enjoy a monopoly on the legal initiation of force and are not dependent on, or subject to any other power or state. Many states are federated states which participate in a federal union...
. Departments of government also operate in the arms industry, buying and selling weapons, munitions and other military items. Products include gun
Gun
A gun is a muzzle or breech-loaded projectile-firing weapon. There are various definitions depending on the nation and branch of service. A "gun" may be distinguished from other firearms in being a crew-served weapon such as a howitzer or mortar, as opposed to a small arm like a rifle or pistol,...
s, ammunition
Ammunition
Ammunition is a generic term derived from the French language la munition which embraced all material used for war , but which in time came to refer specifically to gunpowder and artillery. The collective term for all types of ammunition is munitions...
, missile
Missile
Though a missile may be any thrown or launched object, it colloquially almost always refers to a self-propelled guided weapon system.-Etymology:The word missile comes from the Latin verb mittere, meaning "to send"...
s, military aircraft
Military aircraft
A military aircraft is any fixed-wing or rotary-wing aircraft that is operated by a legal or insurrectionary armed service of any type. Military aircraft can be either combat or non-combat:...
, military vehicle
Military vehicle
A military vehicle is a vehicle that includes all land combat and transportation vehicles, which are designed for or are in significant use by military forces throughout the world. Vehicles that are armored or intended for combat are often referred to as armoured fighting vehicles....
s, ship
Ship
Since the end of the age of sail a ship has been any large buoyant marine vessel. Ships are generally distinguished from boats based on size and cargo or passenger capacity. Ships are used on lakes, seas, and rivers for a variety of activities, such as the transport of people or goods, fishing,...
s, electronic systems
Electronic Systems
Electronic systems are groupings of electronic circuits and components which are designed to accomplish one or more complex functions. Examples include telecommunication systems, computer systems, power distribution systems, radar systems, electronic music systems, and many others.Electronic...
, and more. The arms industry also conducts significant research and development
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...
.
It is estimated that yearly, over 1.5 trillion dollars are spent on military expenditures worldwide (2.7% of World GDP). This represents a decline from 1990 when military expenditures made up 4% of world GDP. Part of this goes to the procurement of military hardware and services from the military industry. The combined arms sales of the top 100 largest arms producing companies amounted to an estimated $315 billion in 2006. In 2004 over $30 billion were spent in the international arms trade (a figure that excludes domestic sales of arms). The arms trade has also been one of the sectors impacted by the credit crunch
Credit crunch
A credit crunch is a reduction in the general availability of loans or a sudden tightening of the conditions required to obtain a loan from the banks. A credit crunch generally involves a reduction in the availability of credit independent of a rise in official interest rates...
, with total deal value in the market halving from US$32.9bn to US$14.3bn in 2008. Many industrialized countries have a domestic arms industry to supply their own military forces. Some countries also have a substantial legal or illegal domestic trade in weapons for use by its citizens. An illegal trade in small arms
Small arms
Small arms is a term of art used by armed forces to denote infantry weapons an individual soldier may carry. The description is usually limited to revolvers, pistols, submachine guns, carbines, assault rifles, battle rifles, multiple barrel firearms, sniper rifles, squad automatic weapons, light...
is prevalent in many countries and regions affected by political instability.
Contracts to supply a given country'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 US President Dwight D. Eisenhower
Dwight D. Eisenhower
Dwight David "Ike" Eisenhower was the 34th President of the United States, from 1953 until 1961. He was a five-star general in the United States Army...
described as a military-industrial-congressional complex, where the armed forces, commerce, and politics become closely linked. The European defence procurement
European defence procurement
European defence procurement refers to the collective armaments purchasing policies of European nations.Traditionally European countries have either developed their own weapon systems or bought 'off the shelf' systems usually NATO-sponsored from the United States or from the Soviet Union, now from...
is more or less analogous to the U.S. military-industrial complex
Military-industrial complex
Military–industrial complex , or Military–industrial-congressional complex is a concept commonly used to refer to policy and monetary relationships between legislators, national armed forces, and the industrial sector that supports them...
. Various corporations, some publicly held, others private, bid for these contracts, which are often worth many billions of dollars. Sometimes, such as the contract for the new Joint Strike Fighter, a competitive tendering process takes place, where the decision is made on the merits of the design submitted by the companies involved. Other times, no bidding or competition takes place.
In the Cold War Era
Cold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...
, arms exports were used by both the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
to influence their standings in other countries, particularly Third World Countries
Third World
The term Third World arose during the Cold War to define countries that remained non-aligned with either capitalism and NATO , or communism and the Soviet Union...
.
Sectors
Land-based weapons
This category includes everything from light armsSALW
SALW is an acronym, meaning Small Arms and Light Weapons, a term used in arms control protocols to refer to two main classes of weapons:...
to heavy artillery, and the majority of producers are small. Many are located in Third World
Third World
The term Third World arose during the Cold War to define countries that remained non-aligned with either capitalism and NATO , or communism and the Soviet Union...
countries. International trade in handgun
Handgun
A handgun is a firearm designed to be held and operated by one hand. This characteristic differentiates handguns as a general class of firearms from long guns such as rifles and shotguns ....
s, machine gun
Machine gun
A machine gun is a fully automatic mounted or portable firearm, usually designed to fire rounds in quick succession from an ammunition belt or large-capacity magazine, typically at a rate of several hundred rounds per minute....
s, tanks, armored personnel carriers and other relatively inexpensive weapons is substantial. There is relatively little regulation at the international level, and as a result, many weapons fall into the hands of rebel forces, terrorists, or regimes under sanctions.
Small arms
The Control Arms CampaignControl Arms Campaign
Control Arms is a campaign jointly run by Amnesty International, IANSA and Oxfam International.The campaign focuses on the international trade in arms, arguing that the lack of controls on the arms trade is fuelling armed conflict, poverty and human rights abuses worldwide.The campaign seeks to...
, founded by Amnesty International
Amnesty International
Amnesty International is an international non-governmental organisation whose stated mission is "to conduct research and generate action to prevent and end grave abuses of human rights, and to demand justice for those whose rights have been violated."Following a publication of Peter Benenson's...
, Oxfam
Oxfam
Oxfam is an international confederation of 15 organizations working in 98 countries worldwide to find lasting solutions to poverty and related injustice around the world. In all Oxfam’s actions, the ultimate goal is to enable people to exercise their rights and manage their own lives...
, and the International Action Network on Small Arms, estimated in 2003 that there are over 639 million small arms in circulation, and that over 1,135 companies based in more than 98 different countries manufacture small arms as well as their various components and ammunition.
Aerospace systems
Encompassing military aircraft (both land-based and naval aviationNaval aviation
Naval aviation is the application of manned military air power by navies, including ships that embark fixed-wing aircraft or helicopters. In contrast, maritime aviation is the operation of aircraft in a maritime role under the command of non-naval forces such as the former RAF Coastal Command or a...
), conventional missiles, and military satellites, this is the most technologically advanced sector of the market. It is also the least competitive from an economic standpoint, with a handful of companies dominating the entire market. The top clients and major producers are virtually all located in the western world
Western world
The Western world, also known as the West and the Occident , is a term referring to the countries of Western Europe , the countries of the Americas, as well all countries of Northern and Central Europe, Australia and New Zealand...
, with the United States easily in first place. Prominent aerospace firms include Dassault Aviation
Dassault Aviation
Dassault Aviation is a French aircraft manufacturer of military, regional and business jets, a subsidiary of Dassault Group.It was founded in 1930 by Marcel Bloch as Société des Avions Marcel Bloch or "MB". After World War II, Marcel Bloch changed his name to Marcel Dassault, and the name of the...
, Sukhoi
Sukhoi
Sukhoi Company is a major Russian aircraft manufacturer, headquartered in Begovoy District, Northern Administrative Okrug, Moscow, famous for its fighters...
, EADS
EADS
The European Aeronautic Defence and Space Company N.V. is a global pan-European aerospace and defence corporation and a leading defence and military contractor worldwide...
, Finmeccanica
Finmeccanica
Finmeccanica S.p.A. is an Italian conglomerate. Finmeccanica is the second largest industrial group and the largest of the hi-tech industrial groups based in Italy. It works in the fields of defence, aerospace, security, automation, transport and energy...
, Thales Group
Thales Group
The Thales Group is a French electronics company delivering information systems and services for the aerospace, defense, transportation and security markets...
, Lockheed Martin
Lockheed Martin
Lockheed Martin is an American global aerospace, defense, security, and advanced technology company with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It is headquartered in Bethesda, Maryland, in the Washington Metropolitan Area....
, Boeing
Boeing
The Boeing Company is an American multinational aerospace and defense corporation, founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing Corporate headquarters has been in Chicago, Illinois since 2001...
, and BAE Systems
BAE Systems
BAE Systems plc is a British multinational defence, security and aerospace company headquartered in London, United Kingdom, that has global interests, particularly in North America through its subsidiary BAE Systems Inc. BAE is among the world's largest military contractors; in 2009 it was the...
. There are also several multinational
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
consortia mostly involved in the manufacturing of fighter jets, such as the Eurofighter. The largest military contract in history, signed in October 2001, involved the development of the Joint Strike Fighter.
Naval systems
Aircraft carrier
An aircraft carrier is a warship designed with a primary mission of deploying and recovering aircraft, acting as a seagoing airbase. Aircraft carriers thus allow a naval force to project air power worldwide without having to depend on local bases for staging aircraft operations...
s, nuclear submarine
Nuclear submarine
A nuclear submarine is a submarine powered by a nuclear reactor . The performance advantages of nuclear submarines over "conventional" submarines are considerable: nuclear propulsion, being completely independent of air, frees the submarine from the need to surface frequently, as is necessary for...
s and advanced anti-air defense systems
Anti-aircraft warfare
NATO defines air defence as "all measures designed to nullify or reduce the effectiveness of hostile air action." They include ground and air based weapon systems, associated sensor systems, command and control arrangements and passive measures. It may be to protect naval, ground and air forces...
. The vast majority of military ships are conventionally powered, but some are nuclear-powered. There is also a large global market in second-hand naval vessels, generally purchased by developing countries from Western
Western world
The Western world, also known as the West and the Occident , is a term referring to the countries of Western Europe , the countries of the Americas, as well all countries of Northern and Central Europe, Australia and New Zealand...
governments.
World's largest defense budgets
This is a list of the ten countries with the highest defence budgets for the year 2010, which is $1.22 trillion or 76% of total world expenditures. The information is from the Stockholm International Peace Research InstituteSIPRI
Stockholm International Peace Research Institute is an independent international institute dedicated to research into conflict, armaments, arms control and disarmament...
. Total world spending amounted to $1.63 trillion USD in 2010.
| Rank | Country | Spending ($ b.) | World Share (%) | % of GDP, 2010 |
| — | World Total | 1630 | 100 | — |
| 1 | 698.0 | 42.8 | 4.8 | |
| 2 | 119.0 | 7.3 | 2.1 | |
| 3 | 59.6 | 3.7 | 2.7 | |
| 4 | 59.3 | 3.6 | 2.3 | |
| 5 | 58.7 | 3.6 | 4.0 | |
| 6 | 54.5 | 3.3 | 1.0 | |
| 7 | 45.2 | 2.8 | 1.3 | |
| 8 | 45.2 | 2.8 | 10.4 | |
| 9 | 41.3 | 2.5 | 2.7 | |
| 10 | 36.0 | 1.8 | 1.7 | |
- SIPRI estimate
World's largest arms exporters
The unit in this table are so-called trend indicator values expressed in millions of US dollars at 1990s prices. These values do not represent real financial flows but are a crude instrument to estimate volumes of arms transfers, regardless of the contracted prices, which can be as low as zero in the case of military aid. Ordered by descending 2000-2010 values. The information is from the Stockholm International Peace Research Institute
SIPRI
Stockholm International Peace Research Institute is an independent international institute dedicated to research into conflict, armaments, arms control and disarmament...
.
| 2001-10 Rank | Supplier | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 5908 | 5229 | 5698 | 6866 | 6700 | 7453 | 8003 | 6288 | 6658 | 8641 | |
| 2 | 5896 | 5705 | 5236 | 6178 | 5134 | 5095 | 5426 | 5953 | 5575 | 6039 | |
| 3 | 850 | 916 | 1713 | 1105 | 2080 | 2567 | 3194 | 2500 | 2432 | 2340 | |
| 4 | 1297 | 1368 | 1345 | 2219 | 1724 | 1643 | 2432 | 1994 | 1865 | 1834 | |
| 5 | 1368 | 1068 | 741 | 1316 | 1039 | 855 | 1018 | 982 | 1022 | 1054 | |
| 6 | 499 | 509 | 665 | 292 | 303 | 597 | 430 | 586 | 1000 | 1423 | |
| 7 | 203 | 239 | 342 | 209 | 583 | 1187 | 1326 | 530 | 545 | 503 | |
| 8 | 880 | 191 | 526 | 314 | 538 | 432 | 366 | 454 | 383 | 806 | |
| 9 | 216 | 426 | 341 | 212 | 774 | 502 | 684 | 417 | 514 | 627 | |
| 10 | 407 | 436 | 368 | 628 | 368 | 299 | 438 | 281 | 807 | 472 | |
| 11 | 700 | 311 | 442 | 200 | 290 | 553 | 728 | 330 | 320 | 201 | |
| 12 | 7 | 120 | 150 | 56 | 108 | 843 | 590 | 610 | 998 | 513 | |
| 13 | 193 | 157 | 181 | 243 | 246 | 285 | 301 | 482 | 255 | 137 | |
| 14 | 200 | 32 | 48 | 16 | 66 | 5 | 9 | 286 | 198 | 354 | |
| 15 | 129 | 170 | 263 | 265 | 226 | 226 | 334 | 227 | 169 | 258 | |
| 16 | 165 | N/A | 100 | 29 | 48 | 94 | 220 | 80 | 163 | 95 | |
The information is also from the Stockholm International Peace Research Institute or from the national defence commissions where available and is updated at least once a year.
Next to SIPRI there are several other sources that provide data on international transfers of arms. These include national reports by national governments about arms exports, the UN register on conventional arms and an annual publication by the US Congressional Research Service that includes data on arms exports to developing countries as compiled by US intelligence agencies. A list of such sources can be found at the SIPRI website. http://www.sipri.org/contents/armstrad/ Due to the different methodologies and definitions used different sources often provide significantly different data. For example, according to Statistisk sentralbyrå (Norway state statistics), Norway exports a greater value (in USD) of arms than many of the nations listed above.
Some of the differences are possibly due to deliberate over- or under-reporting by some of the sources. Governments may claim high arms exports as part of their role in marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
efforts of their national arms industry or they may claim low arms exports in order to be perceived as a responsible international actor.
As of 2008 Britain has become the worlds leading developer of arms with British company BAE Systems.http://www.sipri.org/research/armaments/production/Top100/data/copy2_of_top1002008 Defence group BAE Systems is the first company outside the U.S. to reach the top position,thanks to a deal with the Pentagon for mine-resistant vehicles to be used in Iraq and Afghanistan. According to the Stockholm International Peace Research Institute, a defence think tank, the former British Aerospace group's arms sales are ahead of American market leaders Lockheed Martin and Boeing. The report reveals BAE's U.S. subsidiary was alone responsible for 61.5 per cent of the group's arms sales and around 58.5 per cent of total group sales. This demonstrates BAE's increasing reliance on orders for conventional weapons as the U.S. cuts back on its nuclear arsenal. The British figures were also boosted by orders for Eurofighter Typhoon jets from Saudi Arabia.
World's largest arms importers
The unit in this table are so-called trend indicator values expressed in millions of US dollars. These values do not represent real financial flows but are a crude instrument to estimate volumes of arms transfers, regardless of the contracted prices, which can be as low as zero in the case of military aid.
| Current Rank | Importer | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 911 | 1242 | 1872 | 2802 | 2227 | 1036 | 1257 | 2179 | 1810 | 2116 | 3337 | |
| 2 | 364 | 1191 | 647 | 798 | 505 | 470 | 682 | 629 | 380 | 757 | 1677 | |
| 3 | 1262 | 623 | 461 | 680 | 986 | 686 | 1650 | 1758 | 1821 | 1172 | 1131 | |
| 4 | 622 | 220 | 235 | 88 | 384 | 543 | 52 | 368 | 1123 | 1729 | 1078 | |
| 5 | 301 | 449 | 453 | 533 | 512 | 501 | 581 | 731 | 808 | 831 | 893 | |
| 6 | 418 | 553 | 237 | 197 | 272 | 156 | 308 | 471 | 1518 | 942 | 791 | |
| 7 | 80 | 59 | 555 | 159 | 1161 | 148 | 185 | 64 | 115 | 626 | 787 | |
| 8 | 710 | 725 | 491 | 2241 | 1528 | 389 | 598 | 1796 | 563 | 1269 | 703 | |
| 9 | 2015 | 3366 | 2819 | 2207 | 3080 | 3511 | 3831 | 1474 | 1481 | 595 | 559 | |
| 10 | 243 | 186 | 213 | 695 | 1246 | 2198 | 2026 | 938 | 748 | 604 | 493 | |
| 11 | 158 | 397 | 533 | 592 | 385 | 332 | 262 | 613 | 939 | 1146 | 493 | |
| 12 | 1170 | 553 | 1009 | 438 | 187 | 1005 | 422 | 585 | 578 | 675 | 468 | |
| 13 | 30 | 26 | 131 | 135 | 48 | 51 | 410 | 546 | 541 | 1494 | 411 | |
| 14 | 263 | 148 | 92 | 4 | 6 | 14 | 469 | 494 | 536 | 576 | 205 | |
| 15 | 171 | 27 | 63 | 398 | 82 | 31 | 58 | 577 | 241 | 452 | 198 | |
List of major weapon manufacturers
Private military contractors are private companies that provide logisticsLogistics
Logistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and...
, manpower, and other expenditures for a military force.
Major arms industry corporations by nation
Institutes participating in weapon research and warfare simulation
- Netherlands Organisation for Applied Scientific ResearchNetherlands Organisation for Applied Scientific ResearchNederlandse Organisatie voor Toegepast Natuurwetenschappelijk Onderzoek or TNO is a not-for-profit organization in the Netherlands that focuses on applied science. The main office of TNO is located in Delft...
http://www.pml.tno.nl/en/about_us/division3.html - Bolt, Beranek and Newman
- QinetiQQinetiQQinetiq is a British global defence technology company, formed from the greater part of the former UK government agency, Defence Evaluation and Research Agency , when it was split up in June 2001...
- World Security InstituteWorld Security InstituteThe World Security Institute is an American think tank committed to independent research and journalism on global affairs. Based in Washington, DC, it emerged from the Center for Defense Information, which now exists in a research capacity as a component of the larger organization.The Institute's...
Arms control
Oscar Arias Sanchez President of Costa RicaCosta Rica
Costa Rica , officially the Republic of Costa Rica is a multilingual, multiethnic and multicultural country in Central America, bordered by Nicaragua to the north, Panama to the southeast, the Pacific Ocean to the west and the Caribbean Sea to the east....
(awarded the Nobel Peace Prize
Nobel Peace Prize
The Nobel Peace Prize is one of the five Nobel Prizes bequeathed by the Swedish industrialist and inventor Alfred Nobel.-Background:According to Nobel's will, the Peace Prize shall be awarded to the person who...
in 1987 for his efforts to end civil wars across Central America through the Esquipulas II Accords) has stated:
International treaties for arms control
- The Arms Trade TreatyArms Trade TreatyThe Arms Trade Treaty is the name of a potential multilateral treaty that would control the international trade of conventional firearms. The treaty is in the preliminary stages of development and has not yet been officially negotiated.-Origins:...
is the name of a potential multilateral treaty that would control the international trade of conventional weapons. The treaty is in the preliminary stages of development and has not yet been officially negotiated. - The Missile Technology Control RegimeMissile Technology Control RegimeThe Missile Technology Control Regime is an informal and voluntary partnership between 34 countries to prevent the proliferation of missile and unmanned aerial vehicle technology capable of carrying a 500 kg payload at least 300 km....
(MTCR) is an informal and voluntary partnership between 34 countries to prevent the proliferation of missile and unmanned aerial vehicle technology capable of carrying a 500 kg payload at least 300 km. - The Limitation of Naval ArmamentTreaty for the Limitation of Naval ArmamentThe Limitation of Naval Armament included many separate treaties. In general, the treaties involved the United States, United Kingdom, Japan, Italy and France....
included many separate treaties. In general, the treaties involved the United States, United Kingdom, Japan, and France. - The Convention on Cluster MunitionsConvention on Cluster MunitionsThe Convention on Cluster Munitions is an international treaty that prohibits the use, transfer and stockpile of cluster bombs, a type of explosive weapon which scatters submunitions over an area. The convention was adopted on 2008 in Dublin, and was opened for signature on 2008 in Oslo...
(CCM) is an international treaty that prohibits the use of cluster bombs, a type of explosive weapon which scatters submunitions ("bomblets") over an area. - The Outer Space TreatyOuter Space TreatyThe Outer Space Treaty, formally the Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies, is a treaty that forms the basis of international space law...
, formally known as the Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies, is a treaty that forms the basis of international space law. - The Ottawa TreatyOttawa TreatyThe Ottawa Treaty or the Anti-Personnel Mine Ban Convention, officially known as the Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti-Personnel Mines and on their Destruction, aims at eliminating anti-personnel landmines around the world. , there were 158...
or the Mine Ban Treaty, formally the Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti-Personnel Mines and on their Destruction, completely bans all anti-personnel landmines (AP-mines). - The New STARTNew STARTNew START is a nuclear arms reduction treaty between the United States of America and the Russian Federation with the formal name of Measures for the Further Reduction and Limitation of Strategic Offensive Arms...
Treaty (for STrategic Arms Reduction Treaty) (Russian: СНВ-III) is a bilateral nuclear arms reduction treaty between the United States and the Russian Federation that was signed in Prague on April 8, 2010. - The Protocol for the Prohibition of the Use in War of Asphyxiating, Poisonous or other Gases, and of Bacteriological Methods of Warfare, usually called the Geneva ProtocolGeneva ProtocolThe Protocol for the Prohibition of the Use in War of Asphyxiating, Poisonous or other Gases, and of Bacteriological Methods of Warfare, usually called the Geneva Protocol, is a treaty prohibiting the first use of chemical and biological weapons. It was signed at Geneva on June 17, 1925 and entered...
, is a treaty prohibiting the first use of chemical and biological weapons. It was signed at Geneva on June 17, 1925 and entered into force on February 8, 1928. It was registered in League of Nations Treaty Series on September 7, 1929.
- The Chemical Weapons ConventionChemical Weapons ConventionThe Chemical Weapons Convention is an arms control agreement which outlaws the production, stockpiling and use of chemical weapons. Its full name is the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction...
(CWC) is an arms control agreement which outlaws the production, stockpiling and use of chemical weapons.
- The Biological Weapons ConventionBiological Weapons ConventionThe Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological and Toxin Weapons and on their Destruction was the first multilateral disarmament treaty banning the...
(or Biological and Toxin Weapons Convention) was the first multilateral disarmament treaty banning the production of an entire category of weapons. It was the result of prolonged efforts by the international community to establish a new instrument that would supplement the 1925 Geneva Protocol.
The European Council
European Council
The European Council is an institution of the European Union. It comprises the heads of state or government of the EU member states, along with the President of the European Commission and the President of the European Council, currently Herman Van Rompuy...
stated to the United Nations General Assembly
United Nations General Assembly
For two articles dealing with membership in the General Assembly, see:* General Assembly members* General Assembly observersThe United Nations General Assembly is one of the five principal organs of the United Nations and the only one in which all member nations have equal representation...
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See also
- :Category:Defence companies by country
- Defense contractorDefense contractorA defense contractor is a business organization or individual that provides products or services to a military department of a government. Products typically include military aircraft, ships, vehicles, weaponry, and electronic systems...
- list of largest defense companies in the world - Small arms proliferationSmall arms proliferationSmall arms proliferation is a term used by organizations and individuals advocating the control of small arms and their trade; the term has no precise definition...
- European Union arms embargo on China
- List of National Defense Industries
- Defence industry of Russia
- Private military companyPrivate military companyA private military company or provides military and security services. These combatants are commonly known as mercenaries, though modern-day PMCs refer to their staff as security contractors, private military contractors or private security contractors, and refer to themselves as private military...
- Campaign Against Arms TradeCampaign Against Arms TradeCampaign Against Arms Trade is a UK-based NGO and campaigning organisation working towards the abolition of the international arms trade. Founded in 1974 by a broad coalition of peace groups, CAAT is united in opposition to the military industrial complex and the growth of the private military...
- Canadian Arms tradeCanadian Arms tradeCanadian Arms Sales are governed by the country's Export and Imports Permits Act. Sales with the United States are also specifically regulated by the 1959 Defence Production Sharing Arrangement....
- List of countries by military expenditures
- Permanent arms economy
- Military funding of scienceMilitary funding of scienceThe military funding of science has had a powerful transformative effect on the practice and products of scientific research since the early 20th century...
- Military-industrial complexMilitary-industrial complexMilitary–industrial complex , or Military–industrial-congressional complex is a concept commonly used to refer to policy and monetary relationships between legislators, national armed forces, and the industrial sector that supports them...
- Military KeynesianismMilitary KeynesianismMilitary Keynesianism is the accusation that John Maynard Keynes advocated government economic policy in which the government devotes large amounts of spending to the military in an effort to increase economic growth. In fact, the English economist John Maynard Keynes advocated that government...
- Offset agreementOffset agreementDefense offset agreements are legal trade practices in the aerospace and military industries. These commercial practices do not need state regulations but, since the purchasers are mostly military departments of sovereign nations comparable to the US Defense Department, many countries have offset...
- Peace dividendPeace dividendThe peace dividend is a political slogan popularized by US President George H.W. Bush and UK Prime Minister Margaret Thatcher in the early 1990s, purporting to describe the economic benefit of a decrease in defense spending. It is used primarily in discussions relating to the guns versus butter...
- Guns versus butter theory
- Al-Yamamah arms deal (United Kingdom sales to Saudi Arabia)
- Arms controlArms controlArms control is an umbrella term for restrictions upon the development, production, stockpiling, proliferation, and usage of weapons, especially weapons of mass destruction...
- Torture tradeTorture tradeIn 2001, Amnesty International released the report "Stopping the Torture Trade." The term torture trade refers to the manufacture, marketing, and export of tools commonly used for torture, like restraints and high-voltage electro-shock weapons....
External links
- Defense Sector Investment Benchmark - SPADE Defense Index (AMEX: DXS)
- World Security Institute's Center for Defense Information
- Campaign Against Arms Trade (UK)
- SIPRI arms industry reports and database
- SIPRI list of Top 100 arms-producing companies
- The Guardian's arms trade report
- List of participators of the Defense System and Equipment international conference in London, 2003
- Viktor Bout arms trade case
- FAS's Arms Sales Monitoring Project
- UN Office for Disarmament Affairs
- ControlArms.org
- Defense Industrial Base Blog
- Amnesty International: Arms Trade Treaty
- The British Library - Defence Industry Guide (sources of information)
- Z. Yihdego, Arms Trade and International Law, Hart: OXford, 2007
- World Map and Chart of Arms exports per country by Lebanese-economy-forum, World Bank data