South America's Military Spending Spree

Venezuelan President Hugo Chávez rounded out his whirlwind world tour last week by inking a series of deals with Russia. The accord covered energy and financial cooperation, but it was the military component that raised eyebrows in Washington. In a joint press conference on September 15, U.S. Secretary of State and Uruguayan President Tabaré Vázquez raised concerns about a Latin American arms buildup, with Clinton urging the Venezuelan leader "to be transparent in its purchases, clear about its purposes." Chávez’s globetrotting brought him to such paragons of open society as Belarus, Libya, Syria, and Iran. Meanwhile, France’s President Nicolas Sarkozy paid a visit to his counterpart Luiz Inácio Lula da Silva in Brazil, where the two signed a hefty deal involving the sale of French military equipment to South America’s biggest economy.

Two days after leaving Moscow, Chávez made use of his Sunday Aló Presidente broadcast to reveal that Venezuela is accessing a $2.2 billion credit line for Russian arms. Purchases include nearly 100 Soviet-era T-72 tanks as well as an arsenal of anti-aircraft weapons to create a multilayer air defense shield. To support Caracas’ “serious” ties with Moscow, Chávez used his Russia visit as an opportunity to dabble in diplomacy in the Caucasus. He announced Venezuelan recognition of the independence of Abkhazia and South Ossetia, two pro-Russian separatist regions of Georgia. Russia and Nicaragua are the only other countries to recognize the rebel regions’ independence, reports Radio Free Europe/Radio Liberty. A World Politics Review article charts how the Russo-Venezuelan arms deal highlights a “mutually beneficial” relationship: Russia can replace declining arms sales to China and India with Venezuelan purchases while Moscow’s weapons sales help Caracas gets around an arms embargo imposed by the United States.

The reason behind the arms purchases, says Chávez, is Caracas’ need to defend itself and its petroleum reserves. “Venezuela has no plans to invade anybody, nor attack anybody. These arms are necessary for our national defense,” said Chávez, who alluded to U.S. plans to make use of Colombian military bases.

Washington responded to the news of the Russo-Venezuelan deal with apprehension and Clinton raised the possibility that the weapons could fall into the wrong hands. Chávez has said his country does not intend to build an atomic bomb, but news that he would seek Russian support on developing a nuclear energy program—coupled with Caracas’ close ties to Iran—did little to allay fears. “We have concerns in general about Venezuela’s stated desire to increase its arms buildup, which we think poses a serious challenge to stability in the Western Hemisphere,” said State Department Spokesman Ian Kelly Monday. “What they are looking to purchase and what they are purchasing outpaces all other countries in South America. And of course, we’re concerned about an arms race in the region.”

But a recent deal with France has Brazil giving Venezuela a run for its money in terms of defense spending. Sarkozy and Lula signed a pact worth as much as $7.2 billion involving purchases of French fighter jets and attack submarines. The move builds on a two-year-old plan by the Lula administration to enhance its defense strategy and the military technological capacity. France will also provide technical assistance for Brazil to build its first nuclear submarine by 2021. Brazilian Defense Minister Nelson Jobim said that the submarine will only make use of conventional weapons. Brazil, like Venezuela, is a signatory of the Non-Proliferation Treaty and abandoned a nuclear weapons program in the early 1990s.

Last year, Brazil’s military spending was double that of Colombia, South America’s second biggest defense spender. Still, as shown by a BBC report using data from Jane’s intelligence research agency, both Colombia and Chile spent a larger portion of GDP on defense spending in 2008. All three countries outpaced Venezuela on military spending. Moreover, Paraguay has also expressed consternation over Bolivian military upgrades.

The Stockholm International Peace Research Institute reports that South American military expenditures rose by 50 percent over the past decade.

Learn more:

• Press conference with Presidents Chávez and Medvedev in Moscow, September 11, 2009.
• Nuclear Threat Initiative background information on Brazil and Venezuela.
• Country-by-country data on arms purchases at the Stockholm International Peace Research Institute Military Expenditure Database.