Conventional Arms Transfers to Developing Nations, 1994-2001

Publication Date: August 2002

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 1994-2001, the value of arms transfer agreements with developing nations comprised 68.3% of all such agreements worldwide. More recently, arms transfer agreements with developing nations constituted 65.8% of all such agreements globally from 1998-2001, and 60.5% of these agreements in 2001.

The value of all arms transfer agreements with developing nations in 2001 was nearly $16 billion. This was the lowest total, in real terms, for the entire period from 1994-2001. In 2001, the value of all arms deliveries to developing nations was $14.4 billion, the lowest total in deliveries values for the entire period from 1994-2001 (in constant 2001 dollars).

Recently, from 1998-2001, the United States and Russia have dominated the arms market in the developing world, with the United States ranking first each of the last four years in the value of arms transfer agreements. From 1998-2001, the United States made $35.7 billion in arms transfer agreements with developing nations, in constant 2001 dollars, 40.8% of all such agreements. Russia, the second leading supplier during this period, made over $19.8 billion in arms transfer agreements, or 22.6.%. France, the third leading supplier from 1998-2001, made $6.3 billion or 7.2% of all such agreements with developing nations during these years.

In 2001, the United States ranked first in arms transfer agreements with developing nations with nearly $7 billion or 43.6% of these agreements. Russia was second with $5.7 billion or 29.6% of such agreements. China ranked third with $600 million or 3.8% of such agreements. In 2001, the United States ranked first in the value of arms deliveries to developing nations at $6 billion, or 41.7% of all such deliveries. Russia ranked second at $3.4 billion or 23.6% of such deliveries. The United Kingdom ranked third at $3.3 billion or 22.9% of such deliveries.

During the 1998-2001 period, the United Arab Emirates (U.A.E.) ranked first among developing nations in the value of arms transfer agreements, concluding $10.8 billion in such agreements. India ranked second at $7.2 billion. China ranked third with $6.7 billion. In 2001, Israel ranked first in the value of arms transfer agreements among all developing nations weapons purchasers, concluding $2.5 billion in such agreements. China ranked second with $2.1 billion in such agreements. Egypt ranked third with $2 billion.