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Chapter 9. The military sector in a changing context
by Björn Hagelin and Elisabeth Sköns
About the authors

* Chapter summary from the SIPRI Yearbook 2003:
Armaments, Disarmament and International Security
(Oxford: Oxford University Press, 2003)

A critical discussion is now required about the provision and use of quantitative indicators for security analysis, such as military expenditure, military production and arms transfers. A fundamental question for all producers and users of quantitative indicators is: how useful are the data? The purpose of the SIPRI databases on the military sector is to produce the most reliable and consistent global data that it is possible to collect, based on official and other open information. However, there are serious limitations to the use of all of these data sets. The challenge is to adapt the indicators and/or supplement them in the light of changes in the security environment.

The limitations to the use of data on national military expenditure relate not only to reliability and international comparability but also to contemporary changes in the security environment. Three major changes give rise to this challenge: the global pattern of armed conflict; the increased focus on the threat of transnational terrorism; and the trend for a stronger link to be made between military security and economic development—reflected in the new concept of ‘human security’.

While it will continue to be important to provide data on military expenditure, there is also a need to develop alternative measures of the cost of security provision—in particular for non-military activities associated with a broader concept of security. There are also various options for improving quantitative approaches to the study of security-related issues.

The objectives of a broader security agenda illustrate the shortcomings of data on arms production and international arms transfers. New forms of international defence industry cooperation, both horizontal and vertical; new political (national security) as well as commercial demands for arms exports; and less clear borders between certain military and civilian technologies all complicate the production, as well as use of, arms transfers data. There is a need to incorporate ‘internationalization’ and changing circumstances into the methodology of the study of arms transfers. There is no publicly available indicator that takes all these changes into account. Until one is developed, it will be impossible to describe market changes reliably and to devise and evaluate control measures.
Finally, there is a strong national-security linkage between arms production and arms transfers, on the one hand, and arms control, on the other. These two policy ambitions do not necessarily support each other. The way in which this political dilemma is resolved will be important for the achievement of security, in a military or non-military, or a broader or deeper, definition.

CONTENTS
Introduction: Trends and challenges in international security
1. The Euro-Atlantic system and global security
2. Major armed conflicts
3. Multilateral peace missions
4. Afghanistan and the new dynamics of intervention: counter-terrorism and nation building
5. The nuclear confrontation in South Asia
6. The military and security dimensions of the European Union
7. Security sector reform and NATO and EU enlargement
8. The processes of budgeting for the military sector in Africa
9. The military sector in a changing context
10. Military expenditure
11. Arms production
12. New developments in unmanned air vehicles and land-attack cruise missiles
13. International arms transfers
14. Arms control in the new security environment
15. Nuclear arms control, non-proliferation and ballistic missile defence
16. Chemical and biological weapon developments and arms control
17. Conventional arms control in Europe
18. Supply-side measures

Annex A. Arms control and disarmament agreements

Annex B. Chronology 2002

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17-June-2003