South Africans buy warships and warplanes for use against a non-existent foreign enemy and the Europeans, out of generosity and love for Mandela, will supposedly make massive investments in the country. International studies show that the costs of offsets are recovered by increasing the prices of weapons being purchased, and that the levels of job creation and technology transfer are generally minimal. The World Trade Organization and international bankers condemn the system of offsets prevalent in the international armaments industry because of resultant distortions to market forces. Still more importantly, it is wide-open to malpractice and corruption. Of that, sadly, there is also no shortage in South Africa.
Corruption is yet another legacy of the colonial and apartheid eras.
The matter of exporting weapons to Third World countries is highly controversial in Sweden, especially after the corruption scandal during the 1980s in sales of Bofors artillery to India. Swedes are uncomfortable with the effort of their government and businesses to sell weapons to poor countries. Such sales seem to violate the Swedish commitment to humanitarian assistance and their opposition to apartheid. Gripen is a particular embarrassment, given a history of cost overruns and crashes. Church and peace-oriented NGOs have held hearings in Stockholm of parliamentarians, academics and theologians to protest against the proposed deal.