U.S. still major arms seller to Third World

By Sridhar Krishnaswami

WASHINGTON, AUG. 20. The global arms business is on the upswing again and the United States, as has been the case many times in the past, accounts for nearly 50 per cent of the sales to developing countries.

A Congressional Research Service Report, highlighted in The New York Times, shows that international arms sales grew by eight per cent in 2000 to nearly $40 billions and the U.S. contracted for about $18.6 billions of it.

Between 1999 and 2000, the U.S. sales increased by about $6 billions thanks to a large extent by the contact to sell 80 F-16 jets to the United Arab Emirates, a deal that is put at around $6.4 billions.

Russia and France follow the U.S.; but China's sales that was around US$2.7 billions in 1999 dropped to $400 millions last year with Pakistan remaining a major buyer.

In the developing world, the Emirates led in the weapons signing contracts in 2000 with US$7.4 billions; India ranked second with US$4.8 billions followed by South Korea's US$ 2.3 billions.

According to the report, the pattern of arms sales by Russia gives challenges to the Bush administration, especially as it pertains to Iran.

What is being pointed out is that between 1997 and 2000, Russia had agreed to sell Iran some US$300 millions in weapons measured in constant 2000 dollars. But during the same period Russia delivered Iran some US$800 millions in arms; and in late 2000 Moscow served notice, despite objections from Washington, that additional major sales to Teheran were being pursued.

Though Iraq was a major buyer of Russian weapons at one time, this has not been the case since the end of the Gulf War in 1991. The argument is being made that if the United Nations sanctions against Baghdad are lifted and the ban on arms sales goes, Russia will pursue weapons deals with Iraq as well.

The principal clients of Russia are India and China and the point being made is that as Moscow enters into joint production deals with the two countries, eventually there would be the drop in purchases from Russia as domestic production in the two countries start.

The Congressional Research Service Report has a cautionary word on China and the international arms market, making the linkage between the desire for hard currency by Beijing and the desire for acquisition on the part of the developing nations. ``...China can present an important obstacle to efforts to stem prolife ration of advanced missile systems to some areas of the developing world where political and military tensions are significant''.

The patterns of arms sales by Russia and China are not the only challenges for the Republican administration. Domestically, it sets off a larger debate and criticism in many quarters - that on the one hand the U.S. goes about telling the developing world about the need to come to grips with peace and developmental imperatives; and on the other hand unleashes its manufacturing sectors to keep nations in conflict.

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