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Conventional Arms Transfers to Developing Nations, 2000-2007 (CRS Report for Congress)

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Release Date Oct. 23, 2008
Report Number RL34723
Report Type Report
Authors Richard F. Grimmett, Foreign Affairs, Defense, and Trade Division
Source Agency Congressional Research Service
Summary:

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 policy oversight functions. All agreement and delivery data in this report for the United States are government-to-government Foreign Military Sales (FMS) transactions. Similar 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 2000-2007, the value of arms transfer agreements with developing nations comprised 66.6% of all such agreements worldwide. More recently, arms transfer agreements with developing nations constituted 67.7% of all such agreements globally from 2004-2007, and 70.5% of these agreements in 2007. The value of all arms transfer agreements with developing nations in 2007 was nearly $42.3 billion. This was an increase from $38.1 billion in 2006. In 2007, the value of all arms deliveries to developing nations was $17.2 billion, the lowest total in these deliveries values for the entire 2000-2007 period (in constant 2007 dollars). Recently, from 2004-2007, the United States and Russia have dominated the arms market in the developing world, with both nations either ranking first or second for 3 out of 4 years in the value of arms transfer agreements . From 2004-2007, Russia made nearly $39.3 billion, 27.9% of all such agreements, expressed in constant 2007 dollars. During this same period, the United States made $34.7 billion in such agreements, 24.6% of all such agreements. Collectively, the United States and Russia made 52.5% of all arms transfer agreements with developing nations during this four-year period. In 2007, the United States ranked first in arms transfer agreements with developing nations with $12.2 billion or 28.8% of these agreements. The United Kingdom was second with $9.8 billion or 23.2% of such agreements. Russia was third with $9.7 billion or 23%. In 2007, the United States ranked first in the value of arms deliveries to developing nations at $7.6 billion, or 44.2% of all such deliveries. Russia ranked second at $4.6 billion or 26.7% of such deliveries. In 2007, Saudi Arabia ranked first in the value of arms transfer agreements among all developing nations weapons purchasers, concluding $10.6 billion in such agreements. India ranked second with $5 billion in such agreements. Pakistan ranked third with $4.2 billion.