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Howard Steven Friedman

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World's Largest Weapons Exporters

Posted: 12/06/11 05:22 PM ET

In a recent article , I discussed how according to the Stockholm International Peace Research Institute Yearbook 2011, America spent nearly $700 billion in military expenses 2010 or about 43% of the entire global military spending. The US military expenditure as a percent of GDP is a much higher rate than other wealthy countries, a reflection of the large military commitment the United States has outside of its borders. As of December 2010, there were 7 countries that had 10,000 or more US military personnel deployed: Afghanistan, Germany, Japan, South Korea, Iraq, Italy, and Kuwait.

It is tempting to debate the cause and effect of the major expenditures of the US military and the impact of US troop deployments on global affairs. That is, did the large military expenditure drive America's need for a major global military presence or did the need for a major presence drive the large expenditure? As we find ourselves trying to sort out cause and effect, we should recall President Eisenhower's farewell address warning that, "in the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist."

The phrase 'military-industrial complex' triggers the question of which countries are the largest exporters of military equipment and which companies are the largest players in this space. Not surprisingly, the United States is by far the largest arms exporter, with Russia being the only country with more than half the value of military exports. In order, the top 5 in 2010 were the United States ($8.6 Billion), Russian Federation ($6.0 Billion), Germany ($2.3 Billion), China ($1.4 Billion), and the United Kingdom ($1.1 Billion). In fact, the United States has been the largest exporter in 9 of the last 10 years (in 2002 the Russian Federation topped the list). None of these five top exporters are in the list of top five arms importers.

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When we examine which countries had the largest amount of arms sales, we see that American companies dominate the list. In 2009, the largest was Lockheed Martin, which accounted for $33 billion in arms sales and employed 140,000 people. The second largest company in terms of arms sales was BAE systems (United Kingdom) but the third (Boeing; $32 billion in arms sales; 157,000 employees; 47% of total sales being arms related), fourth (Northrop Grumman; $27 billion in arms sales;120,700 employees, 80% of total sales being arms-related) , fifth (General Dynamics; $26 billion in arms sales; 91,700 employees; 80% of total sales being arms-related), and sixth (Raytheon; $23 billion in arms sales; 75,000 employees; 93% of total sales being arms-related) are all American companies.

The numbers and American history are clear. The military is big business in America. The United States government accounts for a huge percent of the world's military expenditures, American troops are heavily deployed throughout many countries in the world and American companies dominate the market in terms of military exports, military technology as well as overall arms sales.

As Americans look for ways to trim the federal budget, analysts will point to the 20% of the federal budget that goes to the military, the fact that the US military budget has roughly doubled in the last decade and that the US spends a far higher percent of its GDP on military than other wealthy countries. Those analysts will mention that the failure of the super-committee was supposed to trigger mandatory cuts in the military budget. These analysts will logically conclude that most Americans will support their recommendation that America should make reasonable reductions its enormous military budget.

And then, a TV host will mention that the defense industry employs many Americans, with the US government being its largest customer. And some politician, whose home state houses many defense industry employees, will declare that any budget cut to the military is a treasonous act against America's safety. Someone will shout about threats from Iran, Iraq, Afghanistan, North Korea, Russia, Al-Qaeda or some other organization. A bomb will go off somewhere in the world and we will fear for our safety. And then, unless the public is vigilant, soon serious conversations about reducing the massive military budget will once again be buried away for a discussion in the very, very distant future.

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Data Notes: The estimates of number of US personnel deployment are from December 2010 and do not include contractors or dependents. The list of top arms exporters is limited to arms transfers only and doesn't include revenue associated with governments being paid for their military protection, like the "sympathy budget" that Japan pays to the United States. In the graph, the "rest of the world" represents the countries for which data was reported by SIPRI. Non-state actors are not included on the SIPRI list

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The United Kingdom was the fifth largest exporter of arms in 2009 and home to one of the world's largest arms companies, BAE Systems ($33 Billion in arms sales in 2009; 98,000 employees). The United Kingdom was not one of the top 10 arms importers. The UK spends 2.7% of its GDP on military expenses, slightly higher than average rate compared to other developed countries
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HUFFPOST SUPER USER
CitizenPane
Why isn't phonetic spelled the way it sounds?
01:15 PM on 12/09/2011
Are there any statistics that show the relationship between the weapons that are exported and how many of those weapons are used agAmericans are killed with those same weapons ?
02:29 PM on 12/09/2011
In relation to what you are saying, you'll notice that the listing deals with the amount of money, not the number of weapons. Take for example the company listed as the largest in arms sales, Lockheed Martin, a company that isnt exactly making cheap assault rifles, but sea based Ballistic Missile Defense systems and U-2 recon spy planes.

So one F16 or C130 sold to the Norwegian Air Force is weighed the same as a thousand crates of AK 47s or something.
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HUFFPOST SUPER USER
TeraWatt60
Cogito Ergo Sum
12:39 PM on 12/09/2011
According to Paul Kennedy in "Rise and Fall of the Great Powers" this is the inevitable result of a nation that "bites off more than it can chew" Spain, Britain,Russian (Soviet and Tsarist), Germany, France, the Netherlands, and even Sweden have at various times acquired far more military expenses and commitments than their people(population size) and internal resources could support...it is always followed by a rapid decline by the respective nation
satyrday
If my micro-bio is way too long, will it be trunca
12:33 PM on 12/09/2011
I wonder if we could cut our own military expenses by placing some well hidden 'bugs' in all of these weapons that we export?
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HUFFPOST SUPER USER
kilchis
We're all in this together
01:42 PM on 12/10/2011
That movie has already been made.
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HUFFPOST SUPER USER
Whistlejackett
Hey stop doing that
05:10 PM on 12/07/2011
It looks to me that the American Military has become so large and financially well supported, that it has become sovereign in it's own right. However wrong this may be, it has earned the required components and efficacy to be a nation within a nation.
02:49 PM on 12/07/2011
Government contracts have a fixed albeit low rate of return.
01:53 AM on 12/07/2011
The only manufacturing industry in the U.S. that isn't operating at a trade deficit to the rest of the world. How Lovely...
07:07 PM on 12/06/2011
"America is the worlds largest exporter of weapons"

According to the former Bush Administration we were exporting Democracy
CaseyComo
Less jaw, more brain.
04:22 PM on 12/07/2011
Democracy is decided down the barrel of a gun. Or something like that.
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Bar Kokhba
I'd have a micro-bio if I knew how to make one
07:01 PM on 12/06/2011
“Over grown military establishments are under any form of government inauspicious to liberty, and are to be regarded as particularly hostile to republican liberty.” George Washington
“In the eyes of empire builders men are not men but instruments.” Napoleon Bonaparte, French Emperor (1769-1821)
“The pioneers of a warless world are the youth that refuse military service.” Albert Einstein

We have been warned many times throughout our history of the deleterious effects of an overgrown defense industry and we are living it now. The Congressional Military Industrial Complex is like cancerous ganglia, boring itself into every vital institution, with little hope of us excising the alien matter. The prognosis, the patient (Country) dies.
11:12 PM on 12/06/2011
Thank you for the fascinating quotes - I'm going to put them on twitter.
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kodimirpal
teacher
04:23 AM on 12/07/2011
The factors that caused the fall and destruction of huge and mighty empires such as Rome, Mangol and Ottaman have not taught us any lessons.Man is basically greedy and arrogant until he reaches the grave.
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wom122
Primum non nocere
06:36 PM on 12/06/2011
Thank you for a great piece Mr. Friedman.
08:50 AM on 12/07/2011
Thank you for the kind words. I appreciate you taking the time to read and comment. -Howard
05:29 PM on 12/06/2011
The United States can reconcile itself to change or crash into it. But it cannot continue to increase its debt indefinitely. The reorientation of military technologies for peaceful purposes should be a national priority. That means planning for peace, not war.
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kodimirpal
teacher
04:24 AM on 12/07/2011
Does that sort of logic work in world dominating political considerations?