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In November 1998 the South African government
provisionally ordered £3 billion of European arms. The order has,
thankfully, been scaled down, but the weaponry
will still cost a massive $6.5 billion, which, says "The Economist",
is about half the annual budget of South Africa's creaking education
system. The equipment still on order is:
- 8 British Aerospace / SAAB Gripen
fighter aircraft (UK and Sweden);
- 12 British Aerospace Hawk 100 fighter
trainers (UK);
- 30 Agusta helicopters (Italy);
- 4 Meko patrol corvettes (Germany);
- 3 Agusta type submarines (Germany).
The aircraft sales were underwriten by guarantees for £1,679.9 million
from the UK's Export Credits Guarantee Department.
Jobs promised, but can
they be delivered?
The arms were sold to South Africa largely
on the promise of offsets, that is, the European companies investing
in South Africa and generating 65,000 jobs there. About 20% of the offsets
were to be in military production, the rest in civil industry. There is
considerable scepticism about this, particularly from academics studying
similar arrangements elsewhere. The experience is that such schemes
do not produce anything like the number of jobs promised.
Bribery allegations
The deal has, perhaps unsurprisingly for one so huge, attracted a number of
allegations of bribery. In February 2003, as a result of one such allegation,
Tony Yengeni, the Chairman of the South African parliament's Defence Committee at the time
of the negotiations, was found guilty of fraud.
Poverty is the biggest security problem
South African organisations concerned
with development, the environment and human rights, as well as church
bodies, have opposed the purchase.
They are concerned that it will severely undermine their country's
economic and social development, and will further aggravate the poverty
of most South Africans. Many live in shacks, whilst the provision of clean water and electricity
remains a luxury for all but the elite. South Africans also face terrible problems
as a result of HIV/AIDs.
CAAT produced a 2003 report on the deal (pdf)
and additional information can be also obtained from
Economists Allied for Arms Reduction South Africa.
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