VENEZUELA’S DEFENSE SPENDING

 

 

 

 

Recently Venezuela has come under attack by the Bush administration for its new military equipment purchases.  The State Department argues that Venezuela’s military spending represents a threat to its neighbors, but the U.S. Government’s own numbers show that many other Latin American nations spend far more on national defense with little or no objection from Washington.  

 

Defense Spending in the Region

According to the Department of Defense, Venezuela’s closest neighbors spend many times more each year on defense [see chart below].  Colombia’s military expenditures are three and a half times higher, and Brazil’s budget is a staggering 12 times larger.

 

 

 

NATIONAL DEFENSE SPENDING BY COUNTRY (2004 & 2005)[1]


The difference is even more pronounced when these numbers are presented as a percentage of Gross Domestic Product (GDP) [See figure below]. According to the World Bank, Venezuela’s defense spending by GDP actually decreased yearly between 2001 and 2004.  Only in 2005 did it slightly increase from 1.17% to 1.2% of GDP, according to the Central Intelligence Agency.[2]

 


DEFENSE SPENDING/ GDP RATIO

Source: World Development Indicators 2006 (World Bank)

 Military expenditure (% of GDP)  

2001

2002

2003

2004

Colombia

3.83

4.12

4.36

4.34

United States

3.1

3.42

3.78

3.98

Chile

3.71

3.81

3.44

3.86

Ecuador

1.83

2.3

2.36

1.95

Bolivia

1.7

1.72

1.64

1.61

Uruguay

1.77

1.66

1.57

1.39

Brazil

1.92

1.86

1.56

1.39

Peru

1.85

1.26

1.27

1.2

Venezuela, RB

1.75

1.46

1.35

1.17

Argentina

1.35

1.21

1.18

1.02

Paraguay

1.01

0.93

0.89

0.7

Honduras

0.65

0.83

0.76

0.68

El Salvador

0.79

0.76

0.71

0.66

Guatemala

0.69

0.56

0.48

0.4

Mexico

0.54

0.5

0.46

0.42

This resulted in $1.61 billion in defense spending that same year. 

Other nations in the region have consistently increased their

military spending as a function of GDP over the years.  By this

calculation, Venezuela currently ranks behind Colombia, Chile,

Ecuador, Bolivia, Uruguay, Brazil and Peru.  The United States,

of course, is by far the largest spender  in the hemisphere,

devoting nearly 4% of GDP to military spending. In pure dollar

amounts, the U.S. military budget is more than 300 times larger

than that of Venezuela.

 

What’s more, Venezuela’s big-ticket equipment purchases

have consisted primarily of helicopters and transport aircraft,

rather than weapons-carrying machinery.[3] By way of contrast,

Chile has recently purchased one hundred Leopard II combat

 tanks from Germany, two French-Spanish submarines

with missile capabilities, ten F-16 fighter bombers with medium

range air to air missiles from the United States and another

batch of eighteen refurbished F-16 bombers.

 

 

U.S. Arms Embargo on Venezuela

But only Venezuela has been singled out by Washington with an arms embargo.  This indicates that the restrictions are a result of Washington’s political differences with Caracas rather than any concern for security.  The embargo may impede Venezuela’s ability to maintain its current equipment supplies and its ability to defend itself.  Military analyst John Pike, quoted by the Associated Press, notes that over time the embargo could have serious repercussions because most of the country's planes are U.S.-made. The ban could "ground a significant fraction of their Air Force." [4]   This includes not only military planes but cargo and domestic carriers as well.  And since the embargo includes a ban on spare parts and maintenance assistance Venezuela may be forced to overhaul their entire equipment supply in order to have a stock that can be repaired and maintained into the future. 

 

The embargo was enacted May 15, 2006, after the State Department conducted what it called "a hard-eyed assessment” of Venezuela’s “cooperation” with the United States in the war on terrorism. Department spokesman Sean McCormack suggested the decision came after the U.S. ruled that Venezuela was not doing enough to combat terrorism.[5] 

 

The ruling, however, overlooks recent actions by the Venezuelan government to work with Colombian and U.S. officials to reduce narco-trafficking and reign in alleged terrorist leaders in the region. Such cooperation has led to the arrest of high-level Colombian rebel leaders and major international drug busts.  In addition, Venezuela has increased border patrols along the Colombian border to both reduce the amount of narcotics passing through Venezuela’s borders as well as to ensure the capture and return of Colombian rebels illegally hiding in Venezuelan territory. 

 

Even Venezuela’s opposition-dominated press has reluctantly acknowledged President Chavez’ actions to improve cooperation.  Last year El Universal reported on the Venezuelan government’s instrumental role in the capture and return of FARC rebel leader Gentil Alvis Patino to Colombia.  In the article, Colombian President Alvaro Uribe was quoted saying, “I wish to give President Chavez my thanks publicly as a champion in this effort….”[6] In May 2006 Uribe again praised Chavez for his help in the peace process with another rebel group, the ELN.[7]  Nevertheless, Thomas Shannon, head of Western Hemisphere Affairs at the State Department continues to claim that Venezuela is not “cooperating in counter-terrorism activities in any meaningful way.”[8]

 

International Pressure

The United States has gone far beyond merely banning sales of its own equipment to Venezuela.  Recently there have been efforts to block the sale of Spanish patrol boats and Brazilian jets to Venezuela, even though most of this equipment was to be used to further increase drug patrols and counter-narcotics missions.  The move puts Venezuela in a catch-22 position, as the embargo impedes Venezuela’s ability to combat terrorism and narcotics along its border. 

 

Spanish Foreign Minister Miguel Angel Moratinos and Defense Minister Jose Bono expressed frustration with the United States’ attempt to characterize the Spanish purchases as “arms.” Foreign Minister Moratinos told Agence France Presse, “I explained to Secretary of State Rice what has been called this so-called sale of arms.  It has not been a sale of arms.  It has been a sale of military equipment, that means planes, transport planes, patrol boats.” Furthermore, Moratinos underscored that the deal involved “no military offensive equipment”.[9]  And on November 28, 2005 the Associated Press reported that Defense Minister Bono said “neither the boats nor transport planes were armed and the patrol planes were only equipped for self-defense.  'This is not a warplane.'”[10]  

 

Despite this knowledge the State Department continues to claim that Venezuela’s recent equipment purchases “could contribute” to destabilization in the region, and may further jeopardize Venezuela’s efforts to combat drug trafficking and defend its borders.

 



[1] Sources: International Institute for Strategic Studies, U.S. Department of Defense. NOTE: the data from USA, Brasil, Canada, Colombia, Argentina, Cuba and Venezuela was taken from the Center for Arms Control 2004. The data from Chile, Perú y Ecuador are estimated by the CIA 2005. Unless otherwise noted, figures are for 2005. Expenditures are used in a few cases where official budgets are significantly lower than actual spending.

 

           

[2] CIO World Fact Book http://www.cia.gov/cia/publications/factbook/geos/ve.html#Military

[3] “Latin America is Rearming” El Pais, http://www.brazzilmag.com/content/view/6268/53/

[4] U.S. Orders Ban of Arms Sales to Venezuela, http://www.globalsecurity.org/org/news/2006/060515-venezuela-arms.htm

[5] U.S. Ends Arms Sales to Venezuela, Citing Terrorism Fight 

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/15/AR2006051500699.html

[6] Admiten Complot de Oficiales Colombianos y Exiliados del 11A.” EL UNIVERSAL 18 December, 2005.  http://www.eluniversal.com/2005/12/18/pol_art_18116B.shtml

[7] ELN Chief Protected in Venezuela

http://english.eluniversal.com/2006/05/15/en_pol_art_15A707789.shtml

El Universal, May 15, 2006.

[8] U.S. Orders Ban of Arms Sales to Venezuela, Associated Press, May 15, 2006.

[9] Spanish FM in US Explains Military Equipment Sale To Venezuela, Agence France Presse, Washington, 15 April, 2004.

[10] http://www.wtopnews.com/index.php?nid=389&sid=633316

10 Sources: International Institute for Strategic Studies, U.S. Department of Defense. NOTE: the data from USA, Brasil, Canada, Colombia, Argentina, Cuba and Venezuela was taken from the Center for Arms Control 2004. The data from Chile, Perú y Ecuador are estimated by the CIA 2005. Unless otherwise noted, figures are for 2005. Expenditures are used in a few cases where official budgets are significantly lower than actual spending.