Defense Industries in Latin American Countries: Argentina, Brazil, and Chile

Defense Industries in Latin American Countries: Argentina, Brazil, and Chile

Defense Industries in Latin American Countries: Argentina, Brazil, and Chile

Defense Industries in Latin American Countries: Argentina, Brazil, and Chile

Synopsis

This book develops a model for analyzing the relationships of the defense industry with the productive infrastructure, the political constraints, and the technological capabilities of a semi-industrialized country. This model is used as the base for the analysis of the defense industries of semi-industrialized Latin-American countries that have shown a proven capacity to produce and export indigenous defense equipment: Argentina, Brazil and Chile. The defense industries of these three countries are described and analyzed in depth, with the objective of determining the reasons for their varying performance and of assessing the effects, positive or negative, on their respective national economies.

Excerpt

In this chapter the "defense industry" is defined, and a model is developed for the placement of the defense industry in the economy of semi-industrialized countries. This model will highlight the key elements in the emergence and subsequent growth of domestic defense industries in semi-industrialized countries and, later, help explain the dynamics of the military industrialization process of Argentina, Brazil, and Chile.

2.1 definition of the defense industry

As mentioned in Chapter 1, the defense industry can be broadly defined as the set of private and state-owned firms that provide goods and services needed by the armed forces to perform their normal peace- and wartime activities.

According to Hax and Majluf (1991, p. 36), "An industry can be defined as a group of firms offering products or services which are close substitutes of each other." However, the set of firms that support the armed forces provides them with a very large variety of products and services that are not substitutes of each other. What unifies all these firms is the final customer. Thus, the name defense industry is generic and in no way represents an industry in the absolute economic sense.

There needs to be an agreement on an operational definition of defense industry in order to study it more properly. One possible way of doing so is by defining it by extension, that is, by identifying each . . .

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