Since 1950, 28 developing countries have produced tanks, ships, aircraft, other major weapons systems, and infantry and artillery weapons for their own use and for export. Local input has ranged from assembly of imported components to completely indigenous design and manufacture. In 1967 exports from lessdeveloped countries (LDCs) were worth $194 million, as compared to exports from all sources of $201 billion. By 1976 world arms exports had increased to $398 billion and LDC exports to $820 million (ACDA, 1978). Even though the role of lessdeveloped countries in world arms production is still small, it is growing and can be significant in some local and regional contexts.
Nascent defense industries in the Third World raise important questions. Terrorists, insurgents, and governments everywhere may find arms more readily available as sources of supply diversify. The spread of weapons manufacture both reflects and promotes the diffusion of power within the international system at large.