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"This book offers the first comprehensive study of defence offsets and its economic, security, political and theoretical implications. Originating in the second half of the 19th century, defence offsets - additional economic, industrial and technological benefits to states from buying foreign weapons - have since been a key feature of the global arms trade and defence industry. And yet, offsets are an under-researched and under-theorised phenomenon. This book fills this gap in the literature by offering the first general theory of defence offsets, as well as the first systematic analysis of the offset phenomenon. By building on the insights of scholars of defence economics and drawing from the International Relations liberal paradigm, as well as reviving and adapting Robert Putnam's two-level game framework, the book proposes a liberal-rationalist theory of defence offsets. It then proves the worth of such a theory through Qualitative Comparative Analysis (QCA) of fifty-four fighter aircraft transfers from 1992 to 2021 inclusive, and three in-depth case studies addressing offsets negotiated and agreed to as part of fighter aircraft competitions in Brazil, India, and South Korea. This book will be of interest to students of defence studies, defence economics, security studies and International Relations"--
With the US invasion of Iraq, the issue of arms trading is once again at the forefront of world events. Arms-importing countries often ask their suppliers to 'offset' the cost by reinvesting some of the money in their country.
Despite their growth, outlined and analysed in this book, the claims and counter-claims that surround offsets have not been subjected to critical scrutiny by economists. This book fills that gap. It brings together a team of internationally renowned specialists to document and evaluate the economic impact of several countries' offset policies. In addition, the papers by industrialists and defence officials yield further insights which help to tease out which of the claims made for offsets do not stand critical scrutiny.
After marked reductions in military spending in the 1990s military budgets around the world are on the increase. In this book, renowned authorities re-examine the economics of military expenditure, arms production and arms trade in developing nations. It includes analysis of military spending in Africa, Asia and Latin America and new forms of civil conflict as well as nine case studies (Saudi Arabia, South Africa, Mozambique, Angola, Subsaharan Africa, Greece, Turkey, Guatemala and Chile). The book will serve as a valuable contribution to the fields of both development economics and security studies.
The economic and political importance of international defence offsets is increasing and is likely to increase even more in the future. Offsets are currently influenced by the changes in the global defence market, namely the declining US and European defence budgets and the growing military expenditure of fast developing countries. Moreover, their monetary value is rising and experts estimate that accumulated global offset obligations will total $500 billion by 2017, 60% of which will be held by U.S. industry. Offsets are drawing the attention of national governments and defence companies due to their economic and strategic importance. In this perspective, a greater and up to date understanding of offsets trends is necessary to evaluate their future evolutions and their deep implications on international arms trade.
This book offers the first comprehensive study of defence offsets and its economic, security, political and theoretical implications. Originating in the second half of the 19th century, defence offsets - additional economic, industrial and technological benefits to states for buying foreign weapons - have since been a key feature of the global arms trade and defence industry. And yet, offsets are an under-researched and under-theorised phenomenon. This book fills this gap in the literature by offering the first general theory of defence offsets, as well as the first systematic analysis of the offset phenomenon. By building on the insights of scholars of defence economics and drawing from the International Relations liberal paradigm, as well as reviving and adapting Robert Putnam’s two-level game framework, the book proposes a liberal-rationalist theory of defence offsets. It then proves the worth of such a theory through Qualitative Comparative Analysis (QCA) of fifty-four fighter aircraft transfers from 1992 to 2021 inclusive, and three in-depth case studies addressing offsets negotiated and agreed to as part of fighter aircraft competitions in Brazil, India, and South Korea. This book will be of interest to students of defence studies, defence economics, security studies and international relations.
The Global Arms Trade is a timely, comprehensive and in-depth study of this topic, a phenomenon which has continued to flourish despite the end of the Cold War and the preoccupation with global terrorism after 11 September 2001. It provides a clear description and analysis of the demand for, and supply of, modern weapons systems, and assess key issues of concern. This book will be especially useful to scholars, policy analysts, those in the arms industry, defence professionals, students of international relations and security studies, media professionals, government officials, and those generally interested in the arms trade.
Technology offsets, a nonconventional international trade-financing tool, is used by governments (buyers) to obtain industrial and technological benefits from companies (sellers) as part of international procurement. Offsets deals involve billions of dollars and this practice exists in around 80 countries around the world. Though offsets is a popular practice in defence, it is increasingly gaining popularity in civil sectors. Offsets is often tainted by controversy and receives bad press. What then makes offsets popular? Governments claim that offsets delivers technology and knowledge transfer, skills in high technology sectors and employment, and offsets expands export opportunities through participation in OEM supply chains. For companies, offsets is mainly employed as a tool to obtain a competitive edge and win sales in international business. In the past, there have been mixed results of case studies on the impact of offsets successes and failures. Considering the mismanagement of globalisation, unfair trade agreements and current political and economic discontent, there is a stronger need for governments and companies to use vehicles such as offsets to create a relationship of trust and commitment for sustainable development. This book fills the gap in offsets and focuses on how to manage offsets more effectively by addressing issues of strategy, policy and implementation, technology management, governance and risk. Technology Offsets in International Defence Procurement is designed for those studying international procurement, international trade, international business, technology management, defence policy and industrial policy. This book will also be of interest to practitioners and policy makers in both government and industry.