Conventional Arms Transfers to Developing Nations, 1992-1999

Publication Date: August 2000

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Military and defense

Type:

Abstract:

This report is prepared annually to provide unclassified quantitative data on conventional arms transfers to developing nations by the United States and foreign countries for the preceding eight calendar years. Some general data are provided on worldwide conventional arms transfers, but the principal focus is the level of arms transfers by major weapons suppliers to nations in the developing world.

Developing nations continue to be the primary focus of foreign arms sales activity by weapons suppliers. During the years 1992-1999, the value of arms transfer agreements with developing nations comprised 68.3% of all such agreements worldwide. More recently, arms transfer agreements have declined generally, but those with developing nations still constituted 66.4% of all such agreements globally from 1996-1999, and 68% of these agreements in 1999.

The value of all arms transfer agreements with developing nations in 1999 was nearly $20.6 billion. This was the highest total, in real terms, since 1996. In 1999, the value of all arms deliveries to developing nations was $22.7 billion, a notable decrease in deliveries values from 1998 ($26.5 billion in constant 1999 dollars).

Recently, from 1996-1999, the United States, Russia, and France have dominated the arms market in the developing world, with the United States ranking first each of the last two years in the value of arms transfer agreements. From 19961999, the United States made $25.7 billion in arms transfer agreements with developing nations, 33.6% of all such agreements. Russia, the second leading supplier during this period, made $14.3 billion in arms transfer agreements, or 18.7%. France, the third leading supplier, made $9 billion or 11.7% of all such agreements with developing nations during these years.

In 1999, the United States ranked first in arms transfer agreements with developing nations at $8.1 billion or 39.2% of these agreements. Russia was second with $4.1 billion or 19.9% of such agreements. Germany ranked third with $2 billion or 9.7% of such agreements. The total value of U.S. arms transfer agreements with developing nations in 1999 notably increased, in real terms, from 1998. In 1999, the United States ranked first in the value of arms deliveries to developing nations at $11.4 billion, or 50.1% of all such deliveries. The United Kingdom ranked second at $3.9 billion or 17.2% of such deliveries. France ranked third at $2.2 billion or 9.7% of such deliveries.

During the 1996-1999 period, the United Arab Emirates (U.A.E.) ranked first among developing nations in the value of arms transfer agreements, concluding $7.7 billion in such agreements. India ranked second at $7.3 billion. Saudi Arabia ranked third with $7.1 billion. In 1999, South Africa ranked first in value of arms transfer agreements among all developing nations weapons purchasers, concluding $3.3 billion in such agreements. Egypt ranked second with $2.6 billion in such agreements. Israel ranked third with $2.3 billion.