Asia overtakes Middle East as developing world's top arms market
Asia overtakes Middle East as developing world's top arms market
P. Parameswaran, Agence France-Presse/Washington
Asia has overtaken the Middle East as the largest arms market in
the developing world, with India and China locked in a grueling
race to purchase weapons from Russia, according to a report sent
to the U.S. Congress this week.
Asia has historically been the second largest weapons market
among emerging economies.
But it burst ahead in the 2001-2004 period, accounting for
almost half of nearly US$35 billion in arms transfer agreements
sealed with the developing world, the independent Congressional
Research Service said.
"Until such time as the Indians and the Chinese stop buying as
much as they have, and until such time the Middle Eastern oil
barons start making major buys, I don't see this trend changing
in the next year or so, it's going to take a while," Richard
Grimmett, author of the annual study, told AFP.
In the 1997-2000 period, Asia was already catching up on arms
transfers, hitting a value of nearly $31 billion compared with
leader Middle East's almost $37 billion, the report said.
Transfers to the Middle East in 2001-2004 totaled $28.5
billion.
Five of the top 10 arms recipients in the developing world in
2004 were in the Asian region, the report said. They were China,
India, Taiwan, Pakistan and South Korea.
During the 2001-2004 period, China emerged tops among
developing nations in terms of arms transfers, concluding $10.4
billion in deals, followed by India with $7.9 billion.
But in 2004, India overtook China, concluding deals worth $5.7
billion. China ranked third after Saudi Arabia with $2.2 billion,
the report said.
Grimmett, a national defense specialist with the Congressional
Research Service, an arm of the Library of Congress, said Asia's
arms market was fueled by purchases from China and India largely
from Russia.
He said Russia could step up sales elsewhere in Asia over the
next few years. "Down the road there is always the prospect they
would build substantial relationship with other Asian nations...
(the market is now) limited in many ways to two primary clients."
In Southeast Asia, Russia has had some success in securing
arms agreements with Malaysia, Vietnam and Indonesia.
Russia ranked first in Asian arms deliveries in the 2001-2004
period with $14.1 billion, followed by $9.6 billion by the U.S.
"Russian leaders have made important efforts, in recent years,
to provide more flexible and creative financing and payment
options for prospective arms clients," the report said.
"It has also agreed to engage in countertrade, offsets, debt-
swapping, and, in key cases, to make significant licensed
production agreements in order to sell its weapons."
The willingness to license production has been a central
element in some deals with China and India.
Russia has sold major combat fighter aircraft, and main battle
tanks to India, and has provided other major weapons systems
though lease or licensed production.
In 2004, Russia concluded a major agreement with India for the
transfer of the aircraft carrier Admiral Gorshkov, together with
12 MiG fighters, four MiG training jets, as well as six to eight
Helix helicopters for about $1.5 billion.
China, however, continues to be a central client for Russia's
arms export program, particularly in aircraft and naval systems.
In 2004, Russia sold China air defense missile systems for
nearly $1 billion. It also concluded a $900 million agreement
with China for engines for the Chinese J-10 fighter aircraft.