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Military industry | Wikipedia audio article

Military industry | Wikipedia audio article


The arms industry, also known as the defense
industry or the arms trade, is a global industry responsible for the manufacturing and sales
of weapons and military technology. It consists of a commercial industry involved
in the research and development, engineering, production, and servicing of military material,
equipment, and facilities. Arms-producing companies, also referred to
as arms dealers, defence contractors, or as the military industry, produce arms for the
armed forces of states and civilians. Departments of government also operate in
the arms industry, buying and selling weapons, munitions and other military items. An arsenal is a place where arms and ammunition
are made, maintained and repaired, stored, or issued, in any combination, whether privately
or publicly owned. Products include guns, artillery, ammunition,
missiles, military aircraft, military vehicles, ships, electronic systems, night vision devices,
holographic weapon sights, laser rangefinders, laser sights, hand grenades, landmines and
more. The arms industry also provides other logistical
and operational support. Stockholm International Peace Research Institute
(SIPRI) estimated that 2012 military expenditures were roughly $1.8 trillion. This represents a relative decline from 1990
when military expenditures made up 4% of world GDP. Part of the money goes to the procurement
of military hardware and services from the military industry. The combined arms sales of the top 100 largest
arms-producing companies amounted to an estimated $395 billion in 2012 according to SIPRI. In 2004 over $30 billion were spent in the
international arms trade (a figure that excludes domestic sales of arms). According to SIPRI, the volume of international
transfers of major weapons in 2010–14 was 16 per cent higher than in 2005–2009. The five biggest exporters in 2010–2014
were the United States, Russia, China, Germany and France, and the five biggest importers
were India, Saudi Arabia, China, the United Arab Emirates and Pakistan.Many industrialized
countries have a domestic arms-industry to supply their own military forces. Some countries also have a substantial legal
or illegal domestic trade in weapons for use by its citizens, primarily for self-defence,
hunting or sporting purposes. Illegal trade in small arms occurs in many
countries and regions affected by political instability. The Small Arms Survey estimates that 875 million
small arms circulate worldwide, produced by more than 1,000 companies from nearly 100
countries.Contracts to supply a given country’s military are awarded by governments, making
arms contracts of substantial political importance. The link between politics and the arms trade
can result in the development of what U.S. President Dwight D. Eisenhower described as
a military-industrial complex, where the armed forces, commerce, and politics become closely
linked, similarly to the European multilateral defence procurement. Various corporations, some publicly held,
others private, bid for these contracts, which are often worth many billions of dollars. Sometimes, as with the contract for the international
Joint Strike Fighter, a competitive tendering process takes place, with the decision made
on the merits of the designs submitted by the companies involved. Other times, no bidding or competition takes
place.==History==During the early modern period, France, United
Kingdom, Netherlands and some states in Germany became self-sufficient in arms production,
with diffusion and migration of skilled workers to more peripheral countries such as Portugal
and Russia. The modern arms industry emerged in the second
half of the nineteenth century as a product of the creation and expansion of the first
large military-industrial companies. As smaller countries (and even newly industrializing
countries like Russia and Japan) could no longer produce cutting-edge military equipment
with their indigenous resources and capacity, they increasingly began to contract the manufacture
of military equipment, such as battleships, artillery pieces and rifles to foreign firms. In 1854, the British government awarded a
contract to the Elswick Ordnance Company of industrialist William Armstrong for the supply
of his latest breech loading rifled artillery pieces. This galvanised the private sector into weapons
production, with the surplus being increasingly exported to foreign countries. Armstrong became one of the first international
arms dealers, selling his weapon systems to governments across the world from Brazil to
Japan. In 1884, he opened a shipyard at Elswick to
specialise in warship production—at the time, it was the only factory in the world
that could build a battleship and arm it completely. The factory produced warships for many navies,
including the Imperial Japanese Navy. Several Armstrong cruisers played an important
role in defeating the Russian fleet at the Battle of Tsushima in 1905. In the American Civil War in 1861 the north
had a distinct advantage over the south as it relied on using the breech-loading rifle
against the muskets of the south. This began the transition to industrially
produced mechanised weapons such as the Gatling gun.This industrial innovation in the defence
industry was adopted by Prussia in 1866 & 1870-71 in its defeat of Austria and France respectively. By this time the machine gun had begun entering
into the militaries. The first example of its effectiveness was
in 1899 during the Boer War and in 1905 during the Russo-Japanese War. However, Germany were leaders in innovation
of weapons and used this innovation nearly defeating the allies in World War I. In 1885, France decided to capitalize on this
increasingly lucrative form of trade and repealed its ban on weapon exports. The regulatory framework for the period up
to the First World War was characterized by a laissez-faire policy that placed little
obstruction in the way of weapons exports. Due to the carnage of World War I, arms traders
began to be regarded with odium as “merchants of death” and were accused of having instigated
and perpetuated the war in order to maximise their profits from arms sales. An inquiry into these allegations in Britain
failed to find evidence to support them. However, the sea change in attitude about
war more generally meant that governments began to control and regulate the trade themselves. The volume of the arms trade greatly increased
during the 20th century, and it began to be used as a political tool, especially during
the Cold War where the United States and the USSR supplied weapons to their proxies across
the world, particularly third world countries (see Nixon Doctrine).==Sectors=====
Land-based weapon===This category includes everything from light
arms to heavy artillery, and the majority of producers are small. Many are located in third world countries. International trade in handguns, machine guns,
tanks, armored personnel carriers, and other relatively inexpensive weapons is substantial. There is relatively little regulation at the
international level, and as a result, many weapons fall into the hands of organized crime,
rebel forces, terrorists, or regimes under sanctions.====Small arms====The Control Arms Campaign, founded by Amnesty
International, Oxfam, and the International Action Network on Small Arms, estimated in
2003 that there are over 639 million small arms in circulation, and that over 1,135 companies
based in more than 98 different countries manufacture small arms as well as their various
components and ammunition.===Aerospace systems===Encompassing military aircraft (both land-based
and naval aviation), conventional missiles, and military satellites, this is the most
technologically advanced sector of the market. It is also the least competitive from an economic
standpoint, with a handful of companies dominating the entire market. The top clients and major producers are virtually
all located in the western world and Russia, with the United States easily in first place. Prominent aerospace firms include Rolls Royce,
BAE, Dassault Aviation, Sukhoi, Mikoyan, EADS, Leonardo, Thales Group, Lockheed Martin, Northrop
Grumman and Boeing. There are also several multinational consortia
mostly involved in the manufacturing of fighter jets, such as the Eurofighter. The largest military contract in history,
signed in October 2001, involved the development of the Joint Strike Fighter.===Naval systems===
Some of the world’s great powers maintain substantial naval forces to provide a global
presence, with the largest nations possessing aircraft carriers, nuclear submarines and
advanced anti-air defense systems. The vast majority of military ships are conventionally
powered, but some are nuclear-powered. There is also a large global market in second-hand
naval vessels, generally purchased by developing countries from Western governments.==Cybersecurity industry==The cybersecurity industry is becoming the
most important defence industry as cyber attacks are being deemed as one of the greatest risk
to defence in the next ten years as cited by the NATO review in 2013. Therefore, high levels of investment has been
placed in the cybersecurity industry to produce new software to protect the ever-growing transition
to digitally run hardware. For the military industry it is vital that
protections are used for systems used for reconnaissance, surveillance and intelligence
gathering. However, to protect the cyber world from attacks
there are advanced cyber protection strategies used such as content, cloud and wireless security. These can be intertwined to form several secure
layers. Nevertheless, cyber attacks and cyber attackers
have become more advanced in their field using techniques such as Dynamic Trojan Horse Network
(DTHN) Internet Worm, Zero-Day Attack, and Stealth Bot. As a result, the cybersecurity industry has
had to improve the defence technologies to remove any vulnerability to cyber attacks
using systems such as the Security of Information (SIM), Next-Generation Firewalls (NGFWs) and
DDoS techniques. As the threat to computers grows, the demand
for cyber protection will rise, resulting in the growth of the cybersecurity industry. It is expected that the industry will be dominated
by the defence and homeland security agencies that will make up 40% of the industry.==International arms transfers==
According to research institute, SIPRI, the volume of international transfers of major
weapons in 2010–14 was 16 per cent higher than in 2005–2009. The five biggest exporters in 2010–14 were
the United States, the United Kingdom, Russia, China and France, and the five biggest importers
were India, Saudi Arabia, China, the United Arab Emirates (UAE) and Pakistan. The flow of arms to Africa, the Americas,
Asia and Oceania, and the Middle East increased significantly between 2005–2009 and 2010–14,
while there was a notable decrease in the flow to Europe.SIPRI has identified 60 countries
as exporters of major weapons in 2010–14. The top 5 exporters during the period were
responsible for almost 74 per cent of all arms exports. The composition of the five largest exporters
of arms changed between 2005–2009 and 2010–14: while the United States and Russia remained
by far the largest exporters, China narrowly, but notably, replaced Germany as the third
largest exporter as Germany slid down to 6th place. The top 5 exported 14 per cent more arms in
2010–14 than the top 5 in 2005–2009.In 2010–14, 153 countries (about three-quarters
of all countries) imported major weapons. The top 5 recipients accounted for 33 per
cent of the total arms imports during the period (see table 2). India, China and the UAE were among the top
5 importers in both 2005–2009 and 2010–14. Asia and Oceania accounted for nearly half
of imports in 2010–14, followed by the Middle East, Europe, the Americas and Africa (see
figure 3). SIPRI also identified seven groups of rebel
forces as importers of major weapons in 2010–14, but none of them accounted for more than 0.02
per cent of total deliveries.==World’s largest arms exporters==
Units are in Trend Indicator Values expressed as millions of U.S. dollars at 1990s prices. These numbers may not represent real financial
flows as prices for the underlying arms can be as low as zero in the case of military
aid. The following are estimates from Stockholm
International Peace Research Institute. Note that rankings for exporters below a billion
dollars are less meaningful, as they can be swayed by single contracts. A much more accurate picture of export volume,
free from yearly fluctuations, is presented by 5-year moving averages. Next to SIPRI there are several other sources
that provide data on international transfers of arms. These include national reports by national
governments about arms exports, the UN register on conventional arms and an annual publication
by the U.S. Congressional Research Service that includes data on arms exports to developing
countries as compiled by U.S. intelligence agencies. A list of such sources can be found at the
SIPRI website. Due to the different methodologies and definitions
used different sources often provide significantly different data.===World’s biggest postwar arms exporter
===SIPRI uses the “trend-indicator values” (TIV). These are based on the known unit production
costs of weapons and represent the transfer of military resources rather than the financial
value of the transfer.==World’s largest arms importers==
Units are in Trend Indicator Values expressed as millions of U.S. dollars at 1990s prices. These numbers may not represent real financial
flows as prices for the underlying arms can be as low as zero in the case of military
aid. Please note that arms import rankings fluctuate
heavily as countries enter and exit wars. Export data tend to be less volatile as exporters
tend to be more technologically advanced and have stable production flows. 5-year moving averages present a much more
accurate picture of import volume, free from yearly fluctuations.==List of major weapon manufacturers==This is a list of the world’s largest arms
manufacturers and other military service companies who profit the most from the War economy,
their origin is shown as well. The information is based on a list published
by the Stockholm International Peace Research Institute for 2015. The list provided by the SIPRI excludes companies
based in China.==Arms control==Arms control refers to international restrictions
upon the development, production, stockpiling, proliferation and usage of small arms, conventional
weapons, and weapons of mass destruction. It is typically exercised through the use
of diplomacy, which seeks to persuade governments to accept such limitations through agreements
and treaties, although it may also be forced upon non-consenting governments.===Notable international arms control treaties
===Geneva Protocol on chemical and biological
weapons, 1925 Outer Space Treaty, signed and entered into
force 1967 Biological Weapons Convention, signed 1972,
entered into force 1975 Missile Technology Control Regime (MTCR),
1987 Chemical Weapons Convention, signed 1993,
entered into force 1997 Ottawa Treaty on anti-personnel land mines,
signed 1997, entered into force 1999 New START Treaty, signed by Russia and the
United States in April 2010, entered into force in February 2011
Arms Trade Treaty, concluded in 2013, entered into force on 24 December 2014.==See also


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