Arms Production in the Global Village: Options for Adapting to Defense-Industrial Globalization

Abstract

Few issues are more important to international relations scholars than understanding how globalization is shaping the production of armaments. Within this context, this article examines both whether and how small and medium states can maintain defense-industrial bases capable of contributing to their national security. To preview the conclusion, although defense-industrial self-sufficiency has become an illusion for most states, even small and medium states can develop defense-industrial capabilities that enhance both their ability to autonomously employ their armed forces and secure access to foreign armaments. Moreover, governments possess a range of options for achieving these objectives, including a fundamental choice between accepting foreign direct investment and pursuing unrestrained arms exports. Governments unwilling to sanction foreign ownership of their defense industries can have recourse to unrestricted exports; alternatively, states uncomfortable with liberal exports can encourage foreign direct investment. With this in mind, a lasting diversity is likely to persist in even similarly endowed states’ defense industries and defense-industrial policies.