The Political Economy of Defense in the Region: New Tendencies

• In Event: International Security: Old or New Affairs? I

Abstract

Latin America remains one of the few regions of the world that have maintained democratic regimes and market economic structures for over two decades – a trend that should bring positive liberal-institutional effects in the defense economy. For instance, the “democratic peace” and “market efficiency” should lead to reduced expenditures and greater transparency in defense spending. Moreover, the creation of new multilateral organizations such as UNASUR explicitly include defense production as a focus for increased cooperation in the region. Yet new factors, including concerns over access to scarce natural resources, governance at national boundaries, and shifts in global trade and investment opportunities complicate the scene. This shifting landscape begs a reassessment of how defense and security relate to economic development in an increasingly globalized world, and requires conceptualizing a political economy approach to defense and security for the region.
The paper will develop such an approach, with a focus on South America in the period since 2000. It will draw on data from SIPRI and Transparency International to assess broad trends within the defense economies of South America, and also look at several cases that reflect very different ways that governments are framing defense production and spending in terms of national development goals (in Argentina, Colombia, and Venezuela). I seek to explain why defense imperatives in the region are framed in development terms, and examine the implications for civilian-military relations.

Author

• Kristina Mani, Oberlin College