Conventional Arms Transfers to Developing Nations, 1995-2002

Publication Date: September 2003

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 1995-2002, the value of arms transfer agreements with developing nations comprised 66.2% of all such agreements worldwide. More recently, arms transfer agreements with developing nations constituted 64.6% of all such agreements globally from 1999-2002, and 60.6% of these agreements in 2002.

The value of all arms transfer agreements with developing nations in 2002 was nearly $17.7 billion. This was an increase over 2001, but still the second lowest total, in real terms, for the entire period from 1995-2002. In 2001, the value of all arms deliveries to developing nations was nearly $17 billion, the lowest total in deliveries values for the entire period from 1995-2002 (in constant 2002 dollars).

Recently, from 1999-2002, the United States and Russia have dominated the arms market in the developing world, with the United States ranking first and Russia second each of the last four years in the value of arms transfer agreements. From 1999-2002, the United States made $37.8 billion in arms transfer agreements with developing nations, in constant 2002 dollars, 41.9% of all such agreements. Russia, the second leading supplier during this period, made $23 billion in arms transfer agreements, or 25.5.%. France, the third leading supplier from 1999-2002, made $4.8 billion or 5.3% of all such agreements with developing nations during these years.

In 2002, the United States ranked first in arms transfer agreements with developing nations with nearly $8.6 billion or 48.6% of these agreements. Russia was second with $5 billion or 28.3% of such agreements. France ranked third with $1 billion or 5.3% of such agreements. In 2002, the United States ranked first in the value of arms deliveries to developing nations at $7 billion, or 41% of all such deliveries. The United Kingdom ranked second at $3.3 billion or 19.5% of such deliveries. Russia ranked third at $2.9 billion or 17.1% of such deliveries.

During the 1999-2002 period, China ranked first among developing nations in the value of arms transfer agreements, concluding $11.3 billion in such agreements. The United Arab Emirates (U.A.E.) ranked second at $9 billion. India ranked third at $8 billion. In 2002, China ranked first in the value of arms transfer agreements among all developing nations weapons purchasers, concluding $3.6 billion in such agreements. South Korea ranked second with $1.9 billion in such agreements. India ranked third with $1.4 billion.