Into the black box? Technology sharing in major arms transfers and beyond

From the recipients’ perspective, arms transfers have, through the use of offsets, technology transfers, and industrial participation, become an opportunity to receive not only advanced weapons, but also technologies not otherwise available. How important are friendly relations for securing a military export order? To what extent do buyers demand advanced military or commercial technology and how are these demands accepted by the supplier? How does this influence smaller producers in relation to major producers? These questions are addressed by studying (a) the Joint Strike Fighter/F-35 by Lockheed Martin, USA, and the JAS-39 Gripen aircraft by Saab, Sweden, (b) the Medium Multi-Role Combat Aircraft competition in India for 126 combat aircraft, and (c) the Indian offset policy. In the final section, some long-term consequences are discussed.     

The comparison of military budgets of the eastern and central European countries

The evolutions of military expenditures in Eastern and Central European countries are difficult to estimate and to compare, due to the lack of available data for these states. Some results of the extent of cuts in defence spending since 1990 are interesting to interpret, but it is difficult for econometricians to use these figures even carefully. The structures of national military expenditure have been modified to the detriment of arms equipment. Thus, the disarmament process needs a special analysis of the arms industry.     

AN ENDOGENOUS GROWTH MODEL OF CAPITAL AND ARMS ACCUMULATION

This paper attempts to examine the effect of an anticipated foreign military threat on the steady‐state growth rate and the transitional behavior of the economy. The modeling strategy follows the Sandler and Hartley (1995 Sandler, T. and Hartley, K. 1995. The Economics of Defense, Cambridge: Cambridge University Press.  [Google Scholar]) and Dunne et al. (2005 Dunne, J.P., Smith, R.P. and Willenbockel, D. 2005. Models of military expenditure and growth: a critical review. Defence and Peace Economics, 16: 449–461. [Taylor & Francis Online], [Web of Science ®] , [Google Scholar]) viewpoints to emphasize the role of national defense in affecting growth from the perspective of both the demand and the supply sides. We thus combine the public capital version of endogenous growth with a framework of competitive arms accumulation. It is found that the key factor determining the steady state and the transitional effects of a rise in the foreign military threat on the home weapon–capital ratio, the consumption–capital ratio, and the rate of economic growth, is the degree of relative risk aversion.     

INTEGRATING NUCLEAR WEAPONS STOCKPILE MANAGEMENT AND NUCLEAR ARMS CONTROL OBJECTIVES TO ENABLE SIGNIFICANT STOCKPILE REDUCTIONS

In his 2009 Prague speech and the 2010 Nuclear Posture Review, President Barack Obama committed the United States to take concrete steps toward nuclear disarmament while maintaining a safe, secure, and effective nuclear deterrent. There is an inherent tension between these two goals that is best addressed through improved integration of nuclear weapons objectives with nuclear arms control objectives. This article reviews historical examples of the interaction between the two sets of objectives, develops a framework for analyzing opportunities for future integration, and suggests specific ideas that could benefit the nuclear weapons enterprise as it undergoes transformation and that could make the future enterprise compatible with a variety of arms control futures.     

ALTERNATIVE NARRATIVES FOR ARMS CONTROL

The efforts of President Barack Obama and his administration to restore the United States as a driving force of multilateral arms control and nonproliferation negotiations are commendable, yet the lack of progress on such issues over the last eight years has ensured that U.S. policy has not kept pace with changes in the geostrategic environment and the evolving security agenda. Meanwhile, an alternative agenda has been articulated by non-Western countries. This article focuses on the arms control perspectives of Non-Aligned Movement states and others that have begun to embrace the idea of “disarmament as humanitarian action.” It explores this idea in the context of recent initiatives and argues that if the Obama administration wants to make progress on its arms control and nonproliferation priorities, it should consider a multifaceted approach that incorporates this emerging alternative agenda.     

Limiting cyberwarfare: applying arms-control models to an emerging technology

ABSTRACT

An arms race in cyberspace is underway. US and Western government efforts to control this process have largely been limited to deterrence and norm development. This article examines an alternative policy option: arms control. To gauge whether arms-control models offer useful lessons for addressing cyber capabilities, this article compiles a new dataset of predominantly twentieth-century arms-control agreements. It also evaluates two case studies of negotiated agreements that regulate dual-use technologies, the 1928 Geneva Protocol prohibiting chemical- and biological-weapon use and the 1944 Chicago Convention on International Civil Aviation. The analysis underscores the limits of norm development for emerging technologies with both civilian and military applications. It finds lessons for developing verifiable, international cooperation mechanisms for cyberwarfare in the regulatory model of international aviation. Conventionally, arms-control agreements take advantage of transparent tests or estimates of arms. To restrict cyberwarfare activities, experts and policy makers must adapt arms-control models to a difficult-to-measure technology at an advanced stage of development and use. Further investigation of international regulatory schemes for dual-use technology of similar diffusion and development to the internet, such as international civil aviation, is needed.     

Country survey V: Poland and its arms industry

This study — which is a country survey — deals with basic problems of the functioning of the Polish arms industry in the conditions of systemic transformation, that has taken place in Poland since 1989. It also reflects new political and military conditions and changes in the economic system, commonly called marketization. The study is focused on reasons for the bad economic state of the enterprises engaged in military production, which include a drastic drop in demand on home and foreign markets. The study discusses the main direction of activities that are planned to reshape and adjust military production to the new, changed conditions covering such problems as ownership and organization changes as well as prospects for conversion.     

The economic effects of international trade in armaments in the major western industrialized and developing countries†

We have used the Michigan Model of World Production and Trade to assess the impact of exports and imports of armaments (based on 1980 data) on sectoral trade and employment and other economic variables in the major Western trading countries. If the United States were to place a unilateral embargo on its arms exports and imports, we calculate that it would experience a comparatively small amount of employment displacement in the aggregate and that most of this displacement would occur in the transport equipment and electric machinery sectors. If all the major Western countries were to place a multilateral embargo on their arms trade, the sectoral effects on the United States would be similarly small. But the sectoral effects in several other industrialized and developing countries measured as a percentage of sectoral employment, would be larger, indicating potential short‐run adjustment problems in labor markets in some cases.     

GREAT POWER RESPONSIBILITY AND NUCLEAR ORDER

A Perpetual Menace: Nuclear Weapons and International Order, by William Walker. Routledge, 2012. 247 pages, $42.95.