ABSTRACT
This chapter addresses a cross-section of second-tier circumstances and responses, and highlights differences and similarities in approach. It addresses the implications and challenges that a more globalised and hierarchical defence industry will pose for international security, proliferation and arms-control policies, as well as how such an emerging international model of production may itself contain innovative answers to these challenges. The number of major defence firms has declined dramatically as companies have either merged or purchased the military assets of other corporations leaving the defence business. As a consequence of this rationalization and globalisation process, a radically different global arms industry could be emerging, with profound consequences for proliferation and arms control. Despite being a rather catholic group, second-tier countries share a number of growing challenges to their arms industries as the political-military arguments for home-grown defence industries weaken, and as the economic and technological barriers to domestic arms production rise.
