ABSTRACT
Swiss defence spending and its policy is dominated by geography and by its neutrality policy. A land-locked country and a mountainous region form natural defence barriers. Critics suggest that being neutral does not require military forces. Switzerland has an army and air force comprising mostly conscript forces. Data are presented on Swiss defence spending but little data are available on the Swiss defence industry. The industry comprises a large number of small firms and a few larger companies. The major arms companies are identified and described. A major restructuring of the industry started in the late 1990s involving downsizing and changes in ownership and structure. The industry is dominated by RUAG. Costly high technology equipment (combat aircraft; missiles; tanks) is acquired from foreign suppliers. There are substantial arms exports. Overall, Swiss defence industrial policy reflects its desire for neutrality, independence and security of supply.
