|
Uruguay Defense Spending
According to the latest government figures available in
1990,
the defense budget for 1986 was N$Ur22.8 billion (for
value of
the
Uruguayan new peso--see Glossary), or between US$125
million
and US$150 million, depending on the source of
information. The
figure represented approximately 11.8 percent of total
central
government expenditures, down from the 12 percent to 15
percent
levels sustained in the early 1980s. When measured in
current
pesos, military spending rose sharply during the 1979-86
period.
When factoring in inflation, however, spending rose slowly
during
the 1977-81 period, then fell approximately 20 percent
over the
1982-86 period.
The decline in real growth in the defense budget during
the
1982-86 period was accompanied by a dramatic depreciation
of the
peso, making the dollar value of defense spending fall by
some 62
percent over the period. This decline had a serious effect
on
military readiness by virtually precluding importation of
spare
parts, replacements, or modern equipment. Between 1977 and
1983,
military equipment had accounted for between 0.5 and 3.7
percent
of total annual imports. From 1984 to 1987, the nation
imported
no military supplies. As of 1990, a frigate imported in
1988 from
France represented the only significant purchase of
military
equipment after 1983. There were unconfirmed reports in
the
international press, however, that in March 1990 the
nation
purchased two more frigates of the same class.
When compared with other Latin American countries, the
portion of the national budget devoted to defense was
above
average. The military's portion of the gross national
product
(
GNP--see Glossary) was about 2.4 percent in 1986, in the
middle
range for Latin American nations.
Until the late 1970s, the defense budget was augmented
by
large amounts of United States military assistance. Over
the
1950-77 period, the country received nearly US$60 million
of
assistance in the form of grants and credits from the
United
States. During the 1977-78 period, however, the nation
refused
further assistance in response to harsh criticism from the
administration of President Jimmy Carter over the military
government's human rights abuses. The United States
resumed
military assistance to Uruguay in 1987, after the return
to
civilian rule, but on a very limited level, in keeping
with the
overall reduction of United States security assistance
worldwide.
Aid during the 1987-90 period consisted of approximately
US$1
million in grants intended to maintain equipment acquired
from
the United States. The United States also funded the
education of
a small number of Uruguayan military personnel at United
States
military facilities under the International Military
Education
and Training (IMET) program. IMET assistance in United
States
fiscal year (FY) 1990 totaled US$124,000. The United
States
Department of Defense's FY 1991 request totaled
US$200,000.
Uruguay did not export any military equipment. The
domestic
defense industry was very limited in scope and produced
only the
most basic military supplies, such as small-arms
ammunition,
uniforms, and stores. The only exception was the navy's
shipyard,
which built small patrol craft and was capable of
providing
drydock, overhaul, and repair support.
Data as of December 1990
|
