Download Arms Trade and Economic Development: Theory and Policy in by Jurgen Brauer, Paul Dunne PDF

By Jurgen Brauer, Paul Dunne

Nations that spend scarce assets to import hands from overseas usually require fingers to 'reinvest' half or the entire proceeds again into the arms-importing state. those so-called 'arms exchange offsets' are consequently notion to augment household fiscal improvement. yet does this approach really succeed?This publication examines the idea and coverage purposes of palms exchange offsets and appears at greater than a dozen case reviews drawn from throughout Europe, Africa, Asia, and the Americas. The chapters, according to unique study and released right here for the 1st time, are all written through prime experts.That a powerful, lucid and cohesive quantity comparable to this may curiosity defence economists will be taken virtually with no consideration. The booklet may also be an invaluable and enlightening learn for these attracted to overseas improvement economics, army stories and policy-makers around the globe.

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Extra resources for Arms Trade and Economic Development: Theory and Policy in Offsets (Studies in Defence Economics)

Example text

As to increasing worker skills as a contribution to economic development, there are two issues involved. First, if skills are increased by exposure to new production requirements in the case of direct offsets, there is the issue of transferability. Since military-oriented activity has no real economic value (as previously argued), the question is: to what extent are skills acquired in service of military-oriented production transferable to activities that are economically valuable and do contribute to development?

This problem is not restricted to direct offsets. Suppose, for example, the weapons contractor has offered to find a buyer for a specified value of civilian product from the purchasing country—or even an investor to build new production facilities there—as an offset to the arms deal. It is possible that the weapons supplier has located a third party that was already intending to buy that product or make that investment anyway, and offered them some incentive to provisionally tie that transaction to the arms deal.

They are not inherently antagonistic to encouraging economic development. But their primary interest and motivation is in selling their products and making money. That is what they are in business to do. Consequently, from the weapons contractors’ point of view, cost offsets are a marketing tool, a way of building enthusiasm for or overcoming resistance to buying their products. Whether offsets encourage development or not is quite beside the point. From the point of view of weapons purchasing countries, there are a number of possible motives for demanding cost offsets as a condition of purchase.

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