Global Poverty

According to the United Nations, 15% of the world's population, or 800 million people, suffer from chronic hunger, whilst more that a billion struggle to survive on less than $1 per day. This disaster is not a natural one, but is the direct result of the structure of the global economy, of the history of colonialism and of political decisions being made today.

The impact of arms sales

The defenders of arms exports claim that they are vital for security, from which everyone benefits. In fact the ready availability of arms often makes conflict more likely, and exacerbates conflicts which are already happening. The entirely legal flow of arms to governments such as that of Israel, Colombia or Turkey has had a disastrous impact on the human security of large civilian populations, turning many into refugees and destroying local economies. Conflicts also routinely prevent the possibility of delivering education and health services, such as vaccination programmes.

Furthermore, regardless of whether actual fighting is taking place, poor countries are often encouraged to spend money on arms that could be spent on badly needed health and education services. Pakistan, for instance, spends more on the military than on health and education combined. It has been estimated that arms sales are responsible for a fifth of the total international debt owed by poor countries. Yet despite this, governments in arms-producing countries such as the UK continue to help companies push their arms on the global South.

Government support

In 2001, Tony Blair personally ensured the successful completion of a deal to sell a £28 million military air traffic control system made by BAE Systems to Tanzania. Half the population of Tanzania lack regular access to clean drinking water, and even institutions such as the World Bank, which is no enemy of big business, was opposed to the sale and recommended a civilian system at an eighth of the cost. This deal was nothing to do with 'national defence needs' and everything to do with the needs of the UK's largest arms company.

Ministerial support, which was rolled out again to sell £1 billion's worth of Hawk jets to India in 2002, is just one aspect of the backing that arms companies receive from the UK government. Where countries are in danger of defaulting on payments for their weaponry, the Export Credits Guarantee Department provides insurance for companies at the taxpayers' expense. There is even a government department, DESO, whose role is to market arms abroad. These kinds of mechanisms are replicated in the US, Russia and many EU countries. They amount to a huge system of corporate welfare for the arms company giants.

It is ironic, then, that these same countries spend so much time trying to erradicate subsidies as part of a 'free trade' agenda. IMF and World Bank loans to the developing world are often predicated on commitments to privatise public services and drop trade barriers and subsidies, which can protect a national economy from the uncertainty of the global market. International development organisations have criticised this approach, saying it actually increases poverty. Yet the US and EU insist that poor countries subsidising useful production creates 'artificial' barriers to western multinationals, whilst for any country, rich or poor, subsidising military industry is not an issue.

Making Poverty History

The arms trade plays a crucial role in creating and exacerbating poverty. It destroys communities, undermines human security and encourages disputes to be settled militarily. It saps the resources of already-poor countries and does so with the support and encouragement of the governments of arms-producing nations.

CAAT is demanding an immediate end to the use of public money to subsidise UK arms exports. We also work to highlight the connections between arms sales and global poverty and are part of the Trade Justice Movement, which is calling for a fundamental change to the unjust rules which govern international trade.

Further Reading

Warfare or Welfare? Disarmament for Development in the 21st Century, International Peace Bureau, 2006

The G8: Arms Dealers to the World, CAAT Briefing, May 2005

Guns or Growth: Assessing the impact of arms sales on sustainable development, Control Arms coalition, 2004