US Air Force: RL32084

Congressional Research Service

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The Library of Congress

CRS Report for Congress

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Order Code RL32084

Conventional Arms Transfers toDeveloping Nations, 1995-2002

September 22, 2003

Richard F. GrimmettSpecialist in National DefenseForeign Affairs, Defense, and Trade Division

Conventional Arms Transfers to Developing Nations,1995-2002

Summary

This report is prepared annually to provide unclassified quantitative data onconventional arms transfers to developing nations by the United States and foreigncountries for the preceding eight calendar years. Some general data are provided onworldwide conventional arms transfers, but the principal focus is the level of armstransfers by major weapons suppliers to nations in the developing world.Developing nations continue to be the primary focus of foreign arms salesactivity by weapons suppliers. During the years 1995-2002, the value of armstransfer agreements with developing nations comprised 66.2% of all such agreementsworldwide. More recently, arms transfer agreements with developing nationsconstituted 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 wasnearly $17.7 billion. This was an increase over 2001, but still the second lowesttotal, in real terms, for the entire period from 1995-2002. In 2001, the value of allarms

deliveries

to developing nations was nearly $17 billion, the lowest total indeliveries values for the entire period from 1995-2002 (in constant 2002 dollars).Recently, from 1999-2002, the United States and Russia have dominated thearms market in the developing world, with the United States ranking first and Russiasecond each of the last four years in the value of arms transfer

agreements

. From1999-2002, the United States made $37.8 billion in arms transfer agreements withdeveloping nations, in

constant

2002 dollars, 41.9% of all such agreements. Russia,the second leading supplier during this period, made $23 billion in arms transferagreements, 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 theseyears.In 2002, the United States ranked first in arms transfer

agreements

withdeveloping nations with nearly $8.6 billion or 48.6% of these agreements. Russiawas 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 thevalue of arms

deliveries

to developing nations at $7 billion, or 41% of all suchdeliveries. The United Kingdom ranked second at $3.3 billion or 19.5% of suchdeliveries. Russia ranked third at $2.9 billion or 17.1% of such deliveries.During the 1999-2002 period, China ranked first among developing nations inthe 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 thirdat $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 suchagreements. South Korea ranked second with $1.9 billion in such agreements. Indiaranked third with $1.4 billion.

Contents

Introduction......................................................1Major Findings....................................................3General Trends in Arms Transfers Worldwide.......................3General Trends in Arms Transfers to Developing Nations..............5United States.............................................6Russia...................................................7China...................................................8Major West European Suppliers..............................9Regional Arms Transfer Agreements..............................10Near East...............................................11Asia...................................................11Leading Developing Nations Arms Purchasers......................11Weapons Types Recently Delivered to Near East Nations.............12United States............................................13Russia..................................................13China..................................................13Major West European Suppliers.............................13All Other European Suppliers...............................13All Other Suppliers.......................................13Summary of Data Trends, 1995-2002.................................16Total Developing Nations Arms Transfer Agreement Values...........16Regional Arms Transfer Agreements, 1995-2002....................22Near East...............................................22Latin America...........................................26Africa..................................................26Arms Transfer Agreements With Developing Nations,1995-2002: Leading Suppliers Compared......................26Arms Transfer Agreements With Developing Nations in 2002:Leading Suppliers Compared................................27Arms Transfer Agreements With Near East 1995-2002:Suppliers And Recipients ..................................28Arms Transfers to Developing Nations, 1995-2002:Agreements With Leading Recipients.........................29Arms Transfers to Developing Nations in 2002:Agreements With Leading Recipients.........................29Developing Nations Arms Delivery Values.........................30Regional Arms Delivery Values, 1995-2002........................34Near East...............................................34

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