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Arms sales drop for first time since 1990s
Sales by 100 biggest weapons makers fell by five percent compared to last year,
according to new think-tank report.
Last Modified: 18 Feb 2013 12:27
Austerity measures, the end of the Iraq war, and the troop pullout in
Afghanistan pushed down sales [Reuters]
The world's largest arms manufacturers are expanding their cybersecurity
businesses as sales of traditional weapons slump for the first time in decades.
Arms sales by the 100 biggest weapons makers fell for the first time since the
mid-1990s in 2011 as economies slowed and purchases of equipment were reduced,
the Stockholm International Peace Research Institute (SIPRI) said on Monday.
The end of the US war in Iraq, and the ongoing drawdown in Afghanistan, also
pushed down sales, which ammounted to $410bn last year, a five percent drop
[adjusted for inflation] from 2010.
SIPRI, which has been compiling the list since 1989, does not include
Chinese-based firms due to a lack of available data.
"Austerity policies and proposed and actual decreases in military expenditure
as well as postponements in weapons programme procurement affected overall arms
sales in North America and Western Europe," it said in a statement.
"The drawdowns in Iraq and Afghanistan and the sanctions on arms transfers to
Libya also played a role."
US and Europe leaders
Spending fell for the first time since the mid-1990s, when defence spending was
falling after the Cold War, Susan Jackson, a researcher at SIPRI, said.
Sales growth had already slowed in 2010, to 1 percent from 8 percent in 2009,
as the withdrawal of foreign troops from Iraq held back demand.
Of the firms monitored by the group in 2011, 74 were based in the US and
western Europe, generating 90 percent of the sales, roughly unchanged from 2010.
The top spots were little changed from 2010 with US firm Lockheed Martin still
the biggest, with $36.3bn in sales. Boeing placed second, with $31.8bn in
sales, followed by British BAE Systems with $29.1bn.
SIPRI said a strong recent trend among big arms makers was diversification into
cyber-security - protecting computers and networks against intrusions and
attacks - as public spending in this area remained a privileged area in Western
countries despite budget austerity.
"Cyber-security has become a top national security issue and there has been a
lot of discussion about that over the last years," Vincent Boulanin, a
cyber-security expert at SIPRI, said.
Source:
Agencies
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