Small arms trafficking destabilizes economies

How can small arms trafficking harm a country's economy?

In most countries, the production and export of small arms are controlled by governments. Therefore in almost all cases of illicit trafficking some government official is involved. Such corruption can undermine a government's legitimacy and disrupt functioning markets. Obviously this can hinder production, trade and ultimately economic growth.

Furthermore, trafficking in small arms reduces government's ability to collect revenue especially in the form of taxes. In addition, the amount of money spent on combating trafficking can eat into the resources available for government spending in other areas, such as social services.

In the end, most illicit arms are used by criminal groups, terrorist or insurgent groups. Thus, trafficking in small arms plays an important role in fuelling crime, conflict and insecurity. As such it can destabilize a country, which in turn affects macroeconomic conditions, and investor confidence.

Why are small arms readily available on black markets if governments are involved?

The pathways by which weapons move from legal to illicit are numerous, including theft from state arsenals, false documentation or illegal supplies to countries under embargo as Sierra Leone or Liberia.

But it is useful to distinguish between two dimensions of trafficking in small arms. 'Black market transfers' occur in clear violation of national and international law. Outside government involvement, these transfers mainly go to individuals or criminal groups. On the other hand, 'grey market transfers' are often initiated by governments and merely circumvent national or international law. Such transfers include sales to a country that has no legal authority or to non-state actors such as insurgent groups.

What should be done to crack down on trafficking in small arms?

Because almost all weapons start their lifecycle legally, we have to focus on regulating the legal production and the trade. But we have to start at national level. Governments need to tighten their own legislation, implement and enforce it.
We also need more transparency about the legal trade in small arms. Decades of secrecy have created an information gap. Even senior officials in government do not know all about small arms in their own country. Without adequate information we cannot build a clear picture of the nature of the illicit market, let alone begin to tackle it.

How has the OSCE contributed and what more should it do?

The OSCE Document on Small Arms and Light Weapons is one of the most important international agreements on small arms, since the OSCE region includes many of the world's most important producers and suppliers of small arms and light weapons. Through its annual information exchanges, the development of a best practice guide and a range of field projects (e.g. training for customs officials), the OSCE has taken the lead in tackling the issue of trafficking in small arms. The Organization should now concentrate its efforts on the practical implementation of the OSCE Document on Small Arms and Light Weapons. It could also usefully share its experience and lessons learned with other regional or sub-regional organizations.