During the 1990s, global arms trade and military transfers became less a function of foreign policy than a government-sponsored commercial race to occupy lucrative market niches abroad. Scant consideration was given to the detrimental effects that such virtually unrestrained competition might engender in areas affected by chronic political instability, gross violations of human rights, sluggish economic growth, and widespread corruption. This chapter analyzes the supply and demand of weaponry for several countries and discusses the flaws in policy and significant negative effects of arms trade.