Military Expenditure and Arms Production Programme
The SIPRI Military Expenditure Project was initiated in 1967 to study developments in world military expenditure.
Military expenditure is an indicator of the economic resources devoted to military purposes (i.e. an input measure). There is no direct relationship between the level of military expenditure and output in terms of military resources, military activities or military capability.
Although military output depends on several factors other than its financing, analysed in its economic and political context, the level and trend in military expenditure can provide information not only on the cost of military activities but also about their extent and change over time, which can have an impact on military capability or reflect military intentions.
The SIPRI Arms Production Project was initiated in 1989 to study developments in the arms industry. The project collects information on the major arms-producing companies and describes and analyses their adjustment to the changed economic and political context and the resulting changes in industrial structures. There is a great need for greater transparency in the arms industry since the amount of available information on the level of arms production is limited, at both the company and national levels.