This document discusses illegal arms trade. It begins with a quote about how spending on weapons takes away from helping those in need. It then provides objectives to understand what arms trade is, its history, how it operates as a business, what illegal arms trade is, and its impacts. It defines arms trade as the commercial industry that manufactures and services military equipment and technologies. It discusses important international treaties that aim to control and restrict arms. Illegal arms trade refers to the trafficking or smuggling of contraband weapons. Its impacts include proliferation in areas of conflict and it is estimated that 10-20% of the global arms market is illegal. In closing, it quotes Nobel Peace Prize winner Oscar Arias Sanchez on how investing in

1. ILLEGAL ARMS TRADE
ANJALI PRABHAKAR
SURESH KUMAR
PROSENJIT SARKAR

2. “EVERY GUN THAT IS MADE, EVERY WARSHIP LAUNCHED, EVERY ROCKET FIRED
SIGNIFIES, IN THE FINAL SENSE, A THEFT FROM THOSE WHO HUNGER AND ARE
NOT FED, THOSE WHO ARE COLD AND ARE NOT CLOTHED. THE WORLD IN ARMS
IS NOT SPENDING MONEY ALONE. IT IS SPENDING THE SWEAT OF ITS LABORERS,
THE GENIUS OF ITS SCIENTISTS, THE HOPES OF ITS CHILDREN… THIS IS NOT A
WAY OF LIFE AT ALL, IN ANY TRUE SENSE. UNDER THE CLOUD OF THREATENING
WAR, IT IS HUMANITY HANGING FROM A CROSS OF IRON.”
— FORMER U.S. PRESIDENT, DWIGHT D. EISENHOWER, IN A SPEECH ON APRIL 16,
1953

3. OBJECTIVES
BY THE END OF THIS PRESENTATION, YOU’LL UNDERSTAND:
• WHAT IS ARMS TRADE
• HISTORY OF ARMS TRADE
• BUSINESS OF ARMS TRADE
• WHAT IS ILLEGAL ARMS TRADE
• IMPACT OF ILLEGAL ARMS TRADE

4. WHAT IS ARMS TRADE?
• THE ARMS INDUSTRY IS A GLOBAL BUSINESS THAT MANUFACTURES WEAPONS
AND MILITARY TECHNOLOGY AND EQUIPMENT.
• COMMERCIAL INDUSTRY INVOLVED IN THE FOLLOWING:
• R&D
• ENGINEERING
• PRODUCTION
• SERVICE OF MILITARY MATERIAL, EQUIPMENT, AND FACILITIES
• ARMS PRODUCING COMPANIES, ALSO CALLED DEFENSE CONTRACTORS OR
MILITARY INDUSTRY, PRODUCE ARMS MAINLY FOR THE ARMED FORCES OF
STATES.
• DEPARTMENTS OF GOVERNMENT ALSO OPERATE IN THE ARMS INDUSTRY, BUYING
AND SELLING WEAPONS, MUNITIONS AND OTHER MILITARY ITEMS.

5. HISTORY OF ARMS TRADE
• ARMS TRADE IS AS OLD AS THE HISTORY OF WAR
• FIRST COUNTRIES TO BECOME SELF-SUFFICIENT IN ARMS PRODUCTION:
• FRANCE
• THE UNITED KINGDOM
• NETHERLANDS
• GERMANY
• THE MODERN ARMS INDUSTRY EMERGED IN THE SECOND HALF OF THE NINETEENTH
CENTURY
• PRODUCT OF THE CREATION AND EXPANSION OF THE FIRST LARGE MILITARY-INDUSTRIAL
COMPANIES

6. HISTORY OF ARMS TRADE (CONTD)
• 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
• CONTRACT THE MANUFACTURE OF MILITARY EQUIPMENT, SUCH AS BATTLESHIPS, ARTILLERY PIECES AND
RIFLES TO FOREIGN FIRMS
• 1854 –BRITISH GOVERNMENT AWARDED A CONTRACT TO THE ELSWICK ORDNANCE COMPANY FOR THE SUPPLY OF
HIS LATEST BREECH LOADING RIFLED ARTILLERY PIECES
• INDUSTRIALIST WILLIAM ARMSTRONG (OWNER, ELSWICK ORDNANCE COMPANY) BECAME ONE OF THE FIRST
INTERNATIONAL ARMS DEALERS
• SOLD HIS WEAPON SYSTEMS TO GOVERNMENTS ACROSS THE WORLD FROM BRAZIL TO JAPAN
• 1884 – OPENED A SHIPYARD AT ELSWICK TO SPECIALIZE IN WARSHIP PRODUCTION
• ONLY FACTORY IN THE WORLD THAT COULD BUILD A BATTLESHIP AND ARM IT COMPLETELY
• 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

7. PURE BUSINESS
• GLOBAL MILITARY SPENDING – US$ 1.5 TRILLION ANNUALLY (2.7% OF WORLD
GDP)Supplier Total Sales in US Dollars (billions) Percent of total sales
United States 220.608 44%
Russia 83.323 17%
France 41.96 8%
United Kingdom 27.037 5%
China 17.808 4%
Germany 22.068 4%
Italy 14.278 3%
Other European 48.259 10%
Others 27.109 5%
Rank Country Amount spent Percent of total
1 Saudi Arabia 75.7 21%
2 India 46.6 13%
3 UAE 20.3 6%
4 Egypt 14.3 4%
5 Pakistan 13.2 4%
6 Venezuela 13.1 4%
7 Brazil 10.9 3%
8 Algeria 10.3 3%
9 Israel 9.5 3%
10 South Korea 9.2 2%
11 All other developing countries 145.168 39%
Exporter
s
Importer
s

8. PURE BUSINESS (CONTD)
2014 rank Supplier Arms exports
1 United States 10194
2 Russia 5971
3 China 1978
4 France 1200
5 Germany 1110
2014 rank Recipient Arms imports
1 Saudi Arabia 2629
2 India 1550
3 China 1357
4 Indonesia 1200
5 Vietnam 1058
Rank Company Country
1 Lockheed Martin United States
2 Boeing United States
3 BAE Systems United Kingdom
4 Raytheon United States
5 Northrop Grumman United States
6 General Dynamics United States
7 EADS European Union
8 United Technologies Corporation United States
9 Finmeccanica Italy
10 Thales Group France

9. PRODUCTS

10. ARMS CONTROL
• ARMS CONTROL REFERS TO INTERNATIONAL RESTRICTIONS UPON THE FOLLOWING:
1. DEVELOPMENT
2. PRODUCTION
3. STOCKPILING
4. PROLIFERATION
5. USAGE OF
1. SMALL ARMS
2. CONVENTIONAL WEAPONS
3. WEAPONS OF MASS DESTRUCTION.
• 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.

11. IMPORTANT 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.

12. WHAT IS ILLEGAL ARMS TRADE?
• ALSO KNOWN AS ARMS TRAFFICKING OR GUN-RUNNING
• ILLEGAL TRAFFICKING OR SMUGGLING OF CONTRABAND WEAPONS OR
AMMUNITION

13. IMPACT OF ILLEGAL ARMS TRADE
• WIDESPREAD IN AREAS OF POLITICAL TURMOIL LIKE THE AFRICAS, OR SOME
MID-EAST COUNTRIES
• MORE THAN 63 MILLION GUNS TRAFFICKED INTO INDIA & PAKISTAN
• MARKET VALUE: ESTIMATED VALUE OF THE GLOBAL ARMS MARKET - $60
BILLION/ YEAR
• ILLEGAL ARMS TRADE IS HARD TO ESTIMATE
• ILLEGAL SMALL ARMS MARKET ESTIMATED AT 10-20% OF THE VALUE OF THE TOTAL
GLOBAL ARMS TRADE

14. “WHEN A COUNTRY DECIDES TO INVEST IN ARMS, RATHER THAN IN EDUCATION, HOUSING, THE
ENVIRONMENT, AND HEALTH SERVICES FOR ITS PEOPLE, IT IS DEPRIVING A WHOLE GENERATION
OF ITS RIGHT TO PROSPERITY AND HAPPINESS. WE HAVE PRODUCED ONE FIREARM FOR EVERY
TEN INHABITANTS OF THIS PLANET, AND YET WE HAVE NOT BOTHERED TO END HUNGER WHEN
SUCH A FEAT IS WELL WITHIN OUR REACH. OUR INTERNATIONAL REGULATIONS ALLOW ALMOST
THREE-QUARTERS OF ALL GLOBAL ARMS SALES TO POUR INTO THE DEVELOPING WORLD WITH
NO BINDING INTERNATIONAL GUIDELINES WHATSOEVER. OUR REGULATIONS DO NOT HOLD
COUNTRIES ACCOUNTABLE FOR WHAT IS DONE WITH THE WEAPONS THEY SELL, EVEN WHEN THE
PROBABLE USE OF SUCH WEAPONS IS OBVIOUS.”
-1987 NOBEL PEACE PRIZE WINNER OSCAR ARIAS SANCHEZ, PRESIDENT OF COSTA RICA
FOR HIS EFFORTS TO END CIVIL WARS ACROSS CENTRAL AMERICA THROUGH THE ESQUIPULAS II
ACCORD

15. THANK YOU