ABSTRACT
This chapter focuses on the three trends impacting the economics behind the contemporary global arms market. It aims to link the various themes and areas of research on the arms industry. The chapter demonstrates that today, many armies are strong only on paper. True power and defence lie with the ability to develop, equip and even export sophisticated weapon systems. The chapter shows that this can be interpreted as a new form of monopoly of legitimate violence. It replaces the traditional national model on a global scale. It examines the historical origins of the arms industry and the trends since the fall of the Berlin Wall. The chapter then looks at the economic weight and market of the industry today and presents exploration of prospects of development given the rise of new actors in the East. The development of the 'nation-states' and large conscript armies led to the creation of royal or state arsenals and manufacturers.
