Conventional Arms Transfers to Developing Nations, 1998-2005

Publication Date: October 2006

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Military and defense

Type:

Abstract:

This report is prepared annually to provide Congress with official, unclassified, quantitative data on conventional arms transfers to developing nations by the United States and foreign countries for the preceding eight calendar years for use in its various policy oversight functions. All agreement and delivery data in this report for the United States are government-to-government (FMS) transactions. Some general data are provided on worldwide conventional arms transfers by all suppliers, 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 1998-2005, the value of arms transfer agreements with developing nations comprised 66.8% of all such agreements worldwide. More recently, arms transfer agreements with developing nations constituted 64.3% of all such agreements globally from 2002-2005, and 68.4% of these agreements in 2005.

The value of all arms transfer agreements with developing nations in 2005 was nearly $30.2 billion. This was a notable increase over 2004, and the highest total, in real terms, for the entire period from 1998-2005. In 2005, the value of all arms deliveries to developing nations was $17.7 billion, the lowest total in these deliveries values for the entire 1998-2005 period (in constant 2005 dollars).

Recently, from 2002-2005, the United States and Russia have dominated the arms market in the developing world, with the United States ranking first for 3 out of 4 years in the value of arms transfer agreements, with Russia ranking second for 3 out of these same four years. From 2002-2005, the United States made $33.3 billion in arms transfer agreements with developing nations, in constant 2005 dollars, 35.2% of all such agreements. Russia, the second leading supplier during this period, made $21.8 billion in arms transfer agreements, or 24.3%. Collectively, the United States and Russia made nearly 60% of all arms transfer agreements with developing nations during this four year period.

In 2005, Russia ranked first in arms transfer agreements with developing nations with $7 billion or 23.2% of these agreements. France was second with $6.3 billion or 20.9% of such agreements. The United States was third with $6.2 billion or 20.5%. In 2005, the United States ranked first in the value of arms deliveries to developing nations at $8.1 billion, or 45.8% of all such deliveries. Russia ranked second at $2.7 billion or 15.2% of such deliveries. The United Kingdom ranked third at $2.4 billion or 13.6% of such deliveries.

In 2005, India ranked first in the value of arms transfer agreements among all developing nations weapons purchasers, concluding $5.4 billion in such agreements. Saudi Arabia ranked second with $3.4 billion in such agreements. China ranked third with $2.8 billion.