|
|
 |
|
Viewing report
|
|
|
|
Chile Defence and Security Report 2012
Business Monitor International, Nov 2011, Pages: 110
Business Monitor International's Chile Defence and Security Report provides industry professionals and strategists, corporate analysts, defence and security associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Chile's defence and security industry.
Chile’s transition to a centre-right government led by Sebastián Piñera during the 2009-2010 elections indicated the continuing growth of a short tradition of stable democracy in the country. The development corroborated the views of those who see Chile as a model of stability for Latin America. However, the arrival of a centre-right government also cemented the continuation of fiscal austerity, which BMI sees as a risk to the country’s stability.
Indeed, as BMI anticipated, Chile’s internal security environment became more uncertain during and around the 2011 anniversary of the coup d’état forced by the military against President Salvador Allende on September 11 1973. Although largely peaceful, violence broke out at the marches attended by hundreds of thousands of Chileans, many of whom continued demands for an overhaul of the country’s education system. Even if the authorities’ significantly lower number of some tens of thousands of protestors is to be believed, the demonstrations are significant in terms of Chile’s internal security and represent the country’s largest anti-government movement since the termination of General Augusto Pinochet’s dictatorship in 1990.
The large-scale protests, in which hundreds have been arrested and injured, are a reminder that Chile’s pre-eminent status for stability and security in Latin America, although not unwarranted, can often be overplayed. The relatively high proportion of household income that goes towards education – on all levels – in Chile, compared to counterparts in quasi-developed economies, will therefore continue to fuel internal security instability. With three years remaining of Piñera’s government as of 2011, the scope for further protest and unrest – potentially in a violent form – is considerable.
Chile continued military acquisitions in 2011, which began with defence minister Jaime Ravinet’s resignation after a dispute on the appropriate level of transparency the military should provide in its finances and procurement. Although then deputy finance minister Rodrigo Alvarez was rumoured to take the post, Piñera instead installed him as energy minister and picked Andres Allamand as Ravinet’s replacement.
It was confirmed in early October 2011 that Chile was to acquire unmanned aerial vehicles (UAVs) from Israel’s Elbit Systems for border control, ostensibly in the context of drug control. Chile’s Air Force also took delivery of the final five F-16 fighter jets from the Netherlands in late August 2011, finally winding down a US$270mn deal made in 2009. The Chilean Army moved ahead with a modernisation and upgrade contract for 12 M109A5 Self-Propelled Howitzer, manufactured by BAE Systems’ US sites and procured as a US$15.8mn US foreign military sales contact in October 2011.
BMI expects defence expenditure to grow by 8.06% to CLP3.88trn (US$8.35bn) in 2011, as growth edges down from a much sharper 19.23% jump in the previous year. Defence expenditure will ease further to 6.99% in 2012 and hover within the 5% mark from 2013each year through to 2021, BMI’s calculations show. Throughout the period, Chile’s defence spending will make up 3% of its GDP.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
