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16 September 2024Wars stimulate the arms industry, boosting sales of weapons, tanks and aircraft and strengthening the strategic position of the main arms suppliers.
Wars have a direct impact on the increase in sales of weapons, munitions and military equipment. They create an immediate demand for these products, stimulating the economies of producing countries and strengthening the dominant players in the arms industry. As well as meeting the immediate needs of conflicts, these sales increase the dependence of buyer countries on arms suppliers, solidifying their geopolitical influence.
The arms industry: an economic engine in times of war
Armed conflicts generate a significant increase in arms sales. According to the Stockholm International Peace Research Institute (SIPRI), global arms sales will reach more than 500 billion euros in 2023. Much of this growth is directly linked to ongoing conflicts in strategic regions such as the Middle East and Eastern Europe. For example, during the war in Ukraine, demand for anti-tank weapons, drones and ammunition exploded, with orders rising by up to 40% by 2022.
Companies such as Lockheed Martin, BAE Systems and Dassault Aviation have seen their profits rise significantly. Lockheed Martin, for example, has recorded a 12% increase in arms sales in 2023, with revenues totalling 68 billion euros. This shows the extent to which wars boost this industry, not only in terms of sales volume, but also by strengthening the dominant position of the main suppliers.
The economic benefits of selling arms and military equipment
Arms sales are a particularly lucrative business in wartime. Manufacturers can sell equipment at much higher prices than in times of peace. A case in point is the sale of F-35 fighter jets. In 2022, each plane sold cost around €80 million, a figure that has risen by 15% during recent conflicts.
In addition to direct revenues, the arms industry supports numerous indirect sectors such as logistics, maintenance and the production of raw materials. In France, the defence industry generates around 200,000 direct and indirect jobs. This shows that war is not just a strategic issue, but also an economic driver for exporting countries.
Strategic strengthening of the dominant arms exporters
The main arms exporters benefit not only from economic advantages, but also from a strengthened strategic position. The United States, Russia and France are the three largest arms exporters in the world, accounting for over 70% of global exports in 2023. These countries use their industrial power to influence international policy and strengthen their alliances. For example, France has strengthened its ties with Gulf countries, notably the United Arab Emirates, by selling them Rafale aircraft worth €7.5 billion.
This dominant position also enables arms exporters to dictate the terms of sale and ensure the continued dependence of buyer countries. Contracts for the maintenance and supply of spare parts for fighter jets or tanks create a long-term relationship, solidifying the geopolitical influence of the selling countries.
Long-term geopolitical and economic effects
In addition to economic gains, wars strengthen the geopolitical influence of exporting countries. Arms sales make it possible to establish lasting strategic alliances. For example, the United States has long used the sale of Patriot missile defence systems to strengthen its relations with allies such as Saudi Arabia. These alliances often translate into advantageous commercial agreements in other sectors, such as energy or infrastructure.
In addition, arms contracts, which often include training and technical support clauses, increase the dependence of buyer countries on the technologies of seller countries. This creates a vicious circle in which countries must continue to buy equipment from the same suppliers to guarantee the interoperability of their armed forces.
Armed conflicts generate a substantial increase in arms sales and strengthen the strategic position of the dominant players in this market. These sales are not limited to a simple commercial transaction; they create complex and lasting geopolitical dynamics. Wars, although destructive, have become an economic engine for the major arms-exporting powers, strengthening their position both economically and geopolitically.
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