The legacy of a Pariah state: South Africa's Arms trade in the 1990s

Abstract

South Africa's defence industry was built up in the context of the UN arms embargo and during the period from 1975 to 1989. It was developed and coordinated by the Armaments Corporation of South Africa (Armscor), renowned for an unaccountable, insidious covert culture which involved arms smuggling, corruption and most recently selling $30million worth of arms to the government of Rwanda. A commission of inquiry ‐ the Cameron Commission has been set up by the government to look at an apparent lack of control within the defence sector. Yet, since the end of apartheid, Armscor has attempted to recast itself as a socially responsible institution in its commitment to greater openness and transparency. The debate which supports the expansion of South Africa's arms trade contend that the industry is an important economic asset and that the contract which Armscor has secured from the government will treble arms sales over five years, creating 20,000 new jobs. But at what price? As the industry is faced with a declining domestic market it is likely to revert to markets it is familiar with, where high profits are guaranteed. As Susan Willett states, the controversy between the moral and economic arguments — utilising different norms and assumptions resulting in political impasse ‐ must become more rigorous and detailed in order to overcome a stalemate. This article seeks to avoid further polarisation by considering the arms trade in terms of orthodox economic analysis and the political debate ensuing in the context of a fragile and embryonic democracy.