ABSTRACT

This chapter ezxamines the current dynamics underpinning the global defense political economy and to highlight and discuss possible causes and consequences. It explains the supply side and of the strategies implemented by the defense firms to face a changing geopolitical and financial environment, paying special attention to circumstances that affect arms transfers. After reaching a peak at US$1.75 trillion in 2011, military expenditures worldwide have decreased at a moderate pace. Persistent difficult economic conditions, combined with the fall in prices of commodities especially oil will likely curtail defense spending by certain states. Another important takeaway is that one or two countries stand out in most of the regions as exhibiting significant increases in military expenditure between 2000 and 2014. The leading countries include China and India in Asia, Russia in Eastern Europe, and Brazil in South America. In particular, Russia the second largest arms exporter renewed its military industrial ambitions in the late 2000s.