Arms Industry Unlimited: The Economic Impact of the Arms Sector in Developing Countries

Abstract

The creation of arms production programmes in developing countries is one of several new and important trends in the armament of Third World countries that have emerged since the mid-1960s. These production programmes have been associated with a variety of conflicting motives and expectations. The first group of these are military and political in nature. In a great number of developing countries, the drive to be self-sufficient and to reduce the dependence on decision making in highly industrialised countries has led to domestic arms production. The possession of strong armed forces supplied with locally produced arms is considered an attribute of political independence. Countries like India, Yugoslavia and many others want to ensure a steady supply of weapons and equipment also in the case of hostilities. Yet the acquisition of weapons or the import of production technology may in reality perpetuate the state of dependence on outside powers.