Defense Industry Fraud

THE DEFENSE INDUSTRY comprises the development, production and sale of weapons and weapons-support systems. In some cases, components or substances that are not themselves weapons may be classified as being part of the defense industry if it is believed that they may be used in the creation of weapons. The defense industry is characterized by oligopolistic conditions, in which a small number of large firms compete for a small number of orders from governments. Success in the industry relies upon, to a considerable extent, economies of scale from research and development departments, large-scale production facilities and good network contacts with relevant government officials, both domestically and internationally.

Many overseas sales are characterized by corruption and bribery and Transparency International has listed defense, along with the public ...