Summary

The production of weapons is an activity which is strongly concentrated, both across countries and across companies. Rough estimates for 1996 show that the 10 largest arms-producing countries in the world accounted for almost 90% of world arms production (excluding China). The United States accounted for almost half of the world total, while the next two countries in size, France and the UK, accounted for 10% each and the next three - Germany, Japan and Russia - for roughly 4% each. Similarly, the largest companies produce an increasing share of world armaments. The arms sales of the top 100 arms-producing companies in the Organisation for Economic Co-operation and Development (OECD) and developing countries (excluding China), at $156 billion in 1997, represented more than three-quarters of total world arms production.

The changes in the global arms industry that have taken place since 1996 are likely to have further increased concentration. Since the beginning of the 1990s, arms production has been characterized by downsizing (in the early years), increasing concentration (particularly in the USA during the period 1993-98) and internationalization (one phase in the early 1990s and renewed efforts in Europe in recent years). These developments result in increasing difficulties for national government to exercise control over arms production and necessitate further mechanisms and policies for monitoring and control, also on the international level.

Appendix 10A. The 100 largest arms-producing companies, 1997

ELISABETH SKÖNS, REINHILDE WEIDACHER AND THE SIPRI ARMS INDUSTRY NETWORK

Appendix 10A contains financial and employment data on the top 100 companies in the OECD and developing countries in 1997.