Arm sales

Arm sales is one such kind of business, where, irrespective what american-styled free market believes, strong government support and intervention is needed. Perhaps it is the most corrupt form of trade which keeps domestic government as well as international agencies blind. Very few arm sales are transparent enough. Maybe it is due to various reasons: open arm sales sometimes create aggresive anti-sales sentiment in the seller country (like Germany) or the seller country has geopolitical wasted interest in the region of buyers or defence state executives have their own wasted interest in promoting their associated arm developing MNCs. It is not a surprise that arm sales is very profitable business, even in recession. The following infographic gives you how it has changed since 2001.

Modern Clix

Global arm sales via good.is

Prosperity also increases the defence spending, but not necessarily (see Syria, Venezuela, Pakistan, etc.). For fast-growing countries it makes sense to modernize its weaponary or get involved into intense global affairs as a formidable military power. For example, India is the second largest buyer of arms in last 8 years. India used to depend mostly on arm sales from Russia, but it has diversified the arm buying portfolio last couple of years, mostly after nuclear deal with USA. And one sees even in this bad economic times, the country, in particular like USA, has managed to increase its arm sales to new profits. Although China is the fourth largest buyer of the arms, it is also one of the top arm sellers. At the moment, China’s share is pretty small, but definitely it is going to increase in next couple of decades. But for the moment, USA is the sole largest seller of the arms with share more than 60%. It seems really scary looking at realpolitik disasters of its foreign policy. As long as these arm sales doesn’t include nuclear weapons, one should not worry about the end of the world.

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