Tag Archives: arms sales

Looking at History through US Foreign Military Sales

If an alien came to Earth and had to quickly make sense of the last half century of History, he could get a first glimpse of geographical hot spots and changes of regime by looking at US Foreign Military Sales program data (please refer to my previous post for an explanation of the program and sources of data).

For example, take the figure below. It shows the historical data of FMS deliveries (in thousands of $) from 1970 to 2010. As you can see deliveries stopped in 1980. What is even more telling, in the 4 years to 1979 (from 1976-79) the arms sales delivered to this country represented a whole 34% of the complete US FMS program over that period (see the total volume of deliveries in this graphic from a previous post). Which country do you think it coud be?

Which country could this be?

This alien, combining these data would know that something that happened in that country, from representing a third of military sales to not taking part in the program ever again… you may have guessed right: Iran, where the Islamic Revolution started in 1978, the Shah left the country in 1979 and at the end of that year the hostage crisis started.

Having taken a look at the graphic of Iran, find below the one for Iraq:

 

In the graphic you can see that from 1970 to 2005 there were not FMS agreements and deliveries from 2006. Nevertheless you can see that during the 1970’s and 1980’s there were commercial arms sales to Iraq from American contractors (this is also published by DSCA), which deliveries stopped altogether in 1990 (invasion of Kuwait in August 1990 and subsequent first Gulf war). Then, once the second Gulf war had changed the regime, commercial and FMS sales restarted from 2003.

There are plenty of cases to look at: Cuba not forming part of FMS since before 1970, Russia neither (though receiving commercial arms since 1992), Spain having been always part of FMS program (including during dictator Franco’s time) but which agreements surged in 1982 with the order of 72 McDonnell Douglas F/A-18 fighters (the same year in which it joined NATO), Chile, Venezuela, China

Russia: never part of FMS.

Before concluding this post let me show again the distribution of FMS deliveries during the last 60 years per region (shown in the previous post) and a table with the main receivers in each region:

FMS Sales per region (1950-2010, source: DSCA).

FMS Agreements per region and selected countries (1950-2010, in k$ – source: DSCA).

Which have been then the top receivers of FMS Arms sales agreements in the period 1950-2010? In order:

  1. Saudi Arabia (16.9% of global FMS program)
  2. Egypt (7.3%)
  3. Israel (7.1%)
  4. Australia (4.1%)
  5. Korea (South) (4.0%)
  6. United Kingdom (4.0%)
  7. Turkey (4.0%)
  8. Japan (3.7%)
  9. Germany (3.3%)
  10. Greece (2.7%)

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Largest defence companies

The Stockholm International Peace Research Institute (SIPRI) is, in their own words, an independent international institute dedicated to research into conflict, armaments, arms control and disarmament. Every year they publish their famous SIPRI Yearbook with data about international conflicts, defence spending, defence companies…

In a previous post I showed cartograms of countries relative to their defence spending, etc. In this post I want to show a bit about the industry.

From the information of last year’s book, we find that of the 10 world biggest defence companies 6 are US companies and 4 European, though the biggest one is the British BAE Systems.

Among the first hundred companies (121 including subsidiaries) there are 4 Spanish: CASA (EADS), Navantia, Indra and Santa Barbara (General Dynamics). This places Spain as the 7th country by number of large defence companies. SIPRI publishes as well a fact sheet titled “Trends in International Arms Transfer”; in that one (data from 2005-2009) Spain is placed as the 8th country by arms exports.

Countries by number of large defence companies.

Countries by defence sales.

Finally, with the information provided by SIPRI I built the following (simplified) table where you may see which are the biggest defence companies by revenues and see how much of their business is relying on defence activities (big conglomerates like GE or UTC do not rely heavily on defence).

Defence companies by defence revenues and reliance on defence.

It is also interesting to look at the previous picture but isolating only the US companies…

US Defence companies by defence revenues and reliance on defence.

… and then taking a look at European ones:

European Defence companies by defence revenues and reliance on defence.

You may see that the top-right corner is almost exclusive domain of US companies, except for BAE, which has a big presence in the US defence market.

In this latest table you would see how the complete picture (with all 121 companies) would look like, with an atomization of smaller companies at the bottom.

Complete picture with 121 companies.

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