[WCUSP] weapons and the world

[Odile Hugonot Haber]

22 November 2006

Dear Friends,

Amid the bad news that crowds the morning paper, we still have a lot
for which to be thankful -- muckraking investigative journalists like
Seymour Hersch, bold comics like Jon Stewart and Steven Colbert, the
life and example of a woman like Sister Rita Steinhagen (who died at
77 yesterday), the bizarre spectacle of President Bush in traditional
Vietnamese garb on the front page of Monday's New York Times.

>From New York City where it is gray and chilly (but the heat in
finally on in our offices!!), we express our gratitude to all of you
who read and use and support our work.

Below is Frida Berrigan's a recent column for Foreign Policy in Focus,
"United States Rides Weapons Bonanza Wave."

Thanks!
Frida Berrigan
Bill Hartung

United States Rides Weapons Bonanza Wave
Frida Berrigan | November 16, 2006

Editor: Emily Schwartz Greco, IPS
http://www.fpif.org/fpiftxt/3715


War, instability, and high oil prices have created a perfect storm of
profit for the world's weapons manufacturers. This year, military
analysts predict the biggest arms bonanza since 1993 * which is saying
something because in the aftermath of the first Gulf War the global
industry reaped the benefits of a $42 billion arms race.

As the world's largest producer and exporter, the United States is
riding the wave. For fiscal year 2006, which ended on September 30,
the U.S. Defense Security Cooperation Agency churned out notices for
$21 billion in arms sales offers. In most cases, that agency is
required to notify Congress of all potential major arms deals worth
more than $14 million. In one typical day-September 28-the DSCA issued
notification on $5.5 billion in agreements. South Korea would get $1.5
billion in Patriot missile equipment and other hardware, Turkey was
offered a $2.9 billion package including 30 F-16 fighter planes, while
Jordan and Chile were also offered weapons packages.

While not all deals are finalized with arms deliveries, these
notifications are a way of taking the pulse of the weapons market *
and it is racing. U.S. a rms sales offers for 2006 appear to be
roughly twice the levels of any other year during the Bush
administration. Noteworthy among these are the $5 billion deal for
F-16s to Pakistan and a $5.8 billion agreement to completely re-equip
Saudi Arabia's internal security force.

The Perfect Storm
In the case of Pakistan and other allies in the war on terrorism,
sales are booming as sanctions and embargoes imposed because of human
rights concerns or nuclear proliferation are being lifted. For Saudi
Arabia and other oil-rich nations, the price at the pump (which topped
$3 a gallon this summer) freed up cash for weapons. Finally, war in
Iraq, Afghanistan, and in corners of the globe where the war on
terrorism is being waged more quietly, allows foreign militaries to
see some of the most advanced weapons systems in action. As one U.S.
government source told The Times of London in August: "Conflicts act
like a customer demonstration show and we tend to see an upsurge in
sales because other countries [are] * impressed by what is available."

This storm equals rainbows and pots of gold for the defense industry.
For example, Lockheed Martin, the world's largest weapons
manufacturer, stands to reap more than $11 billion in possible new
offers. U.S. weapons companies may have patriotic slogans (Lockheed
Martin's is "We Never Forget Who We're Working For"), but foreign
sales mean the biggest bucks because they involve systems where
research and development costs were covered by the Pentagon. Also,
they are often accompanied by lucrative deals for accessories, spare
parts, and eventual upgrades.

But, what means money in the bank for Lockheed Martin, Raytheon, and
other defense corporations, often means misery where the weapons are
shipped. Despite having some of the world's strongest laws regulating
the arms trade, almost half of U.S. weapons end up in countries
plagued with ongoing conflict and governed by undemocratic regimes
with poor human rights records. According to analysis done by the
World Policy Institute's Arms Trade Resource Center, using Pentagon
and State Department arms transfer figures, the United States provided
countries in the developing world with more than $12.6 billion in arms
in Fiscal year 2005. Of these 25 countries, all had human rights
problems according to the State Department's Human Rights Report, and
10 (including three of the top five) were "undemocratic" in the sense
that citizens of those nations "did not have a meaningful right to
change their government" in a peaceful manner.

According to the Congressional Research Service's "Conventional
Weapons Transfers to Developing Nations" report, the United States led
in global arms deliveries for the eighth year in a row. The United
Kingdom trailed in second with $3.1 billion and Russia was a close
third, at $2.8 billion in arms deliveries. Together, these three
weapons exporters where responsible for almost 70% all arms delivered
worldwide last year.

In late October, the United Nations began work on the Arms Trade
Treaty, which is aimed at curbing arms transfers to major human rights
abusers and areas of conflict. The treaty would also urge weapons
suppliers to limit weapons sales likely to undermine development in
poor nations. The United States was the only country to vote against
the resolution, while 24 (including many other major weapons
suppliers) abstained.

The General Assembly will take the next step, but without the active
participation of the world's largest weapons producer and exporter,
this important mandate will not be strong enough to counter the
perfect storm of profiting from war.

FPIF columnist Frida Berrigan is a senior research associate at the New School.



=====================
Frida Berrigan
Senior Research Associate
World Policy Institute
66 Fifth Ave., 9th Floor
New York, NY 10011
ph 212.229.5808 x4254
fax 212.229.5579

The Arms Trade Resource Center was
established in 1993 to engage in public
education and policy advocacy aimed at
promoting restraint in the international
arms trade.

www.worldpolicy.org/projects/arms