Global production of military assets has increased due to the demand in various battlefields, from the war in Ukraine to the Sahel and the territorial disputes in the Middle East. And let’s not forget the East China Seas. Arms widely refers to military hardware from missile systems to ordinary firearms, this also includes fighter jets and specialised military vehicles.
WHO PUMPS OUT THE BIG GUNS?
Let’s start with countries driving the demand and then dwindle down to the corporations. Obviously, in 1st place is the United States with a military spending of 916 billion USD in 2023. In 2nd place, is China with a defence budget of 296 billion USD and 3rd place is its neighbour Russia, with a spending amount of 109 billion USD. Moving on to corporations (data from 2022), we have Lockheed Martin (US) at 1st place with an arms revenue of 60 billion USD. Next, we have Northorp Grumman with an arms revenue of 32 billion USD and in 3rd place, Boeing, with an arms revenue of 29.3 billion USD. Notice how these are corporations have a higher GDP than some countries! Including countries such as DR Congo, Bahrain, and Iceland. As you can see below, this industry can topple countries (and it does), and with global demand for weapon exports rising, which country is next. Monitoring such industries as they balloon towards the stratosphere is one such major think tank that keeps it eyes on the industry: the Stockholm International Peace Research Institute. They monitor such industries and release data to the public. ‘SIPRI is an independent international institute dedicated to research into conflict, armaments, arms control and disarmament. Established in 1966, SIPRI provides data, analysis and recommendations, based on open sources, to policymakers, researchers, media and the interested public. Based in Stockholm, SIPRI is regularly ranked among the most respected think tanks worldwide.’
WHERE DO THEY END UP?
Well, the main corporations (Lockheed and Northorp Grumman) are based in the US (and guess what) their main buyer are the US government, department of defence, and federal agencies, according to their own websites. And similarly, companies like Norinco (Chinese defence corporation which is state owned) sell mainly to the Chinese government. This pattern seems to be common as it strengthens domestic markets as well providing a self-sufficiency factor to countries. For countries that lack productive and technological capability, they must rely on purchasing arms from other countries. This process is supposedly heavily vetted by statesmen who must think carefully about whom they are arming and whether it aligns with their own nation’s interests and “international law”. Examples of this include the sales of F16s to Pakistan and Iraq, sales of weapons to regimes that do not abide by international law etc... Similarly, a technological factor plays a part, nations are not willing to sell advanced military hardware in some instances fearing it may be replicated, such is the case between American weapons being replicated by the Chinese. The next question is where do these arms go to then? Well, the majority go towards the producing nations own military, some arms are bought by “friendly” countries and some arms find their way to armed militias and groups. Many nations and organisations import weapons from many different countries. It usually depends on tariffs and diplomatic relations and what specific hardware they purchase. In recent times, it seems like an East and West divide may become more apparent in the coming years when it comes to weapon exports. China mainly exports to ASEAN countries, and the US to its NATO and EU allies, however with tensions rising over North Korea and Taiwan, suchtrade deals may seem distant as bans and diplomatic pressure increase. However, do not fret just because you can’t legally procure arms doesn’t mean you can’t still get your hands on them. Proxy terror groups such as Hezbollah, in the Middle East receive their funding and arms from Iran similarly rebel groups in the region are armed by the US and its allies. Terror groups in Pakistan are often supported by India and vice-versa. In Africa, many rebels and governments receive their arms and funding from European countries and Israel in return for dodgy commodity deals. In other instances, leftover arms depots are utilised by terror groups, this usually includes firearms and vehicles, the well-equipped BLA in Pakistan has access to leftover US weapons smuggled from Afghanistan. Finally, we have the shady statesponsored “merchants of death” that are responsible for being bridges for weapon flow between nations and groups.
ON THAT BOMBSHELL…
It is very easy to predict that the arms industry is going continue to “blossom” over the next few years, maybe even during the next few decades, the US will be lobbying them instead of the other way around. However, the question of the appropriate use of such arms crosses the minds of many, yet no substantial action has been and is ever likely to against those that enable the deaths of others.