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Annual Report on Military Expenditures, 1998 Submitted to the Committee on Appropriations of the U.S. Senate and the Committee on Appropriations of the U.S. House of Representatives by the Department of State on February 19, 1999, in accordance with section 511(b) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1993 |
ARGENTINA
MILITARY SPENDING
REPORTING PERIOD: January 1 to December 31, 1998.
AMOUNT: USD 3.5 Billion
PERCENTAGE OF GDP: 0.8
PERCENTAGE OF BUDGET: 8.5
TRENDS IN REAL TERMS:
The military restructuring bill which was passed in March allows
for three percent annual growth (based on a USD 3.5 billion
dollar base) over the next five years. This would be the first
increase in over ten years. However, the difficulties in the
global financial situation have affected Argentina as well and
prospects for seeing any of this "new money" appear dim. While
the MOD has been able, so far, to weather the increasingly
frequent budget cuts, it is unclear if that can continue.
ROLE OF THE ARMED FORCES
SIZE OF THE ARMED FORCES: 98,100
Army
Officers 5,200
NCOs 21,000
Privates 15,000
Civilians 7,000
Total 48,200
Navy
Officers 2,500
NCO'S 13,300
Privates 3,400
Civilians 9,500
Total 28,700
Air Force
Officers 2,500
NCO'S 9,700
Privates 1,200
Civilians 7,800
Total 21,200
The armed forces do not perform any constabulary functions. They
may, however, provide logistical support to domestic security
agencies. The Argentine military has a tradition of
participating in international peacekeeping operations since
1958. There are currently approximately 750 members of the
Argentine military (including the quasi-military Gendarmeria)
deployed in peacekeeping operations. They are in 15 different
countries. Another 300 are due to depart next year to
participate in the UN's MINURSO in the Western Sahara.
COMMENTS ON ITS POLITICAL ROLE:
The Argentine military does not play a political role. In
contrast to years past during the era of the military juntas, the
armed forces no longer pose a threat to the constitutional
regime.
CAN CIVILIAN AUTHORITIES APPOINT AND REMOVE MILITARY OFFICERS?
The Argentine armed forces are fully under civilian authority.
The president is the commander-in-chief of the armed forces and
is responsible for choosing the military high command, based on
the recommendation of the civilian minister of defense. The
Argentine congress must confirm all promotions into the senior
ranks (colonel and above). In recent years there have continued
to be some (three or four per year) promotions refused due to
involvement in the "dirty war" of the 1970s and 1980s.
REDUCING MILITARY SPENDING
FEASIBILITY OF REDUCING MILITARY SPENDING:
Over the past 15 years, Argentina's defense budget and military
personnel suffered deep (40 percent) reductions. With the
approval of the defense restructuring and budget bill mentioned
above, the armed forces should see at least a halt in the
downward slide. If the economy improves, they also could see a
slight increase, the first since 1983. A large portion of the
defense budget continues to be spent on personnel costs,
estimated to be about 70-80 percent.
U.S. EFFORTS TO ENCOURAGE REDUCED MILITARY SPENDING:
The United States Government (USG) has worked with the Government
of Argentina (GOA) to help ensure that it has a military capacity
congruent with its international peacekeeping commitments. With
USG urging, the GOA ended its intermediate range missile program,
the "Condor II," in 1992-94. The GOA is now a member of the
Wassenaar Arrangement regime and the Missile Technology Control
Regime (MTCR).
As mentioned above, the GOA has reduced its defense spending by
40 percent over the last 15 years.
HAS THE COUNTRY PROVIDED ACCURATE MILITARY SPENDING DATA TO
RELEVANT INTERNATIONAL ORGANIZATIONS AND ARMS TRANSFER DATA TO
THE UN REGISTER OF CONVENTIONAL ARMS?
Argentina provides accurate data on military spending to
international organizations, as well as information on arms
transfers to the United Nations (UN) Register of Conventional
Arms. Argentina has regularly submitted standardized military
expenditure (MILEX) reports to the UN from 1985 to 1998. In
1998, Argentina participated in the UN Register of Conventional
Arms. The MOD predicts that it will soon publish its first
defense "White Paper" detailing its strategic planning.
HAS THE COUNTRY PARTICIPATED IN REGIONAL TALKS TO REDUCE MILITARY
SPENDING?
The GOA is an avid participant in the development of regional
confidence building measures. It has taken the lead in
advocating joint exercises with its neighbors.
ASSESSMENT OF MILITARY BUDGET ACCURACY
IS THE MILITARY BUDGET ACCURATE AND COMPLETE?
We have no evidence that there are any significant "off budget"
sources of funds for the Argentine military.
TO WHAT DEGREE IS THE MILITARY BUDGET TRANSPARENT?
The military budget is developed, controlled, and approved by
civilian officials.
BRAZIL
MILITARY SPENDING
REPORTING PERIOD: January 1 to December 31, 1998.
Data on authorized spending is based on Brazil's 1998 federal
budget (Amounts have been converted to USD at the 1998 average
rate of 1.165). [Note: The revised budget figures reflect most
budget cuts actually absorbed during the course of 1998.]
Amount in Brazilian million reals/(USD):
1998 Original 1998 Revised
Army R$ 7,332 (USD 6,294) R$ 7,169 (USD 6,154)
Navy R$ 4,355 (USD 3,738) R$ 3,843 (USD 3,299)
Air Force R$ 3,889 (USD 3,338) R$ 3,322 (USD 2,852)
Total R$ 15,575 (USD 13,370) R$ 14,334 (USD 12,304)
PERCENTAGE OF GDP: 1.6 (Revised Budget).
PERCENT OF OPERATING BUDGET: 7.9 (Revised Budget).
TRENDS IN REAL TERMS:
Changing methodologies and erratic disbursement are inherent to
the Brazilian budget process. Ministries themselves cannot spend
authorized amounts; they must depend on disbursements by the
Finance Ministry, based on cash-on-hand. Some ministries get
close to their full authorizations, others fall short. In
general, changes in military spending result mostly from salary
and military pension increases. Trends in operations and
maintenance, procurement and research/development were mostly
flat or negative.
ROLE OF THE ARMED FORCES
SIZE OF THE ARMED FORCES: 297,400.
Total
Army 196,000
Navy 50,700 (including 16,000 Marines)
Air Force 50,700
Total 297,400
COMMENTS ON ITS POLITICAL ROLE:
See classified annex.
REDUCING MILITARY SPENDING
FEASIBILITY OF REDUCING MILITARY SPENDING:
Brazil's military spending remained low in 1998 relative to the
size of the national economy; it remained about the same as the
previous year in terms of expenditures, but fell slightly in
terms of percentage of GDP. Use of conscription allows Brazil to
avoid competitive salaries for the enlisted ranks. The military
has been operating for a number of years on a tight budget, with
limitations on procurement, operations and training. It does
have long-term plans for progressive updates or replacements with
modern equipment of a number of aging systems, including fighter
aircraft.
U.S. EFFORTS TO ENCOURAGE REDUCED MILITARY SPENDING:
See classified annex.
HAS THE COUNTRY PROVIDED ACCURATE MILITARY SPENDING DATA TO
RELEVANT INTERNATIONAL ORGANIZATIONS AND ARMS TRANSFER DATA TO
THE UN REGISTER OF CONVENTIONAL ARMS?
Brazil has regularly submitted standardized MILEX reports to the
UN from 1991 to 1998. In 1998, Brazil participated in the UN
Register of Conventional Arms and contributes data to it.
HAS THE COUNTRY PARTICIPATED IN REGIONAL TALKS TO REDUCE MILITARY
SPENDING?
Along with the USG, Brazil officially co-sponsored in 1998 a
major Organization of American States (OAS) initiative on
transparency in regional conventional weapons acquisition.
ASSESSMENT OF MILITARY BUDGET ACCURACY
IS THE MILITARY BUDGET ACCURATE AND COMPLETE?
See classified annex.
TO WHAT DEGREE IS THE MILITARY BUDGET TRANSPARENT?
See classified annex.
CHILE
REPORTING PERIOD: January 1 to December 31, 1998.
AMOUNT:
According to the Government of Chile (GOC) general auditor's
office, the CY1998 defense budget was USD 2.12 billion. This
figure includes USD 585 million for pensions and USD 240 million
in revenue from the 1948 law (Ley de Cobre) setting aside
10 percent of gross proceeds from state copper sales for military
acquisitions. This figure does not include the "Order and
Security" section of the budget that covers the national police
(Carabineros) and investigative police.
PERCENTAGE OF GDP:
Defense spending as a percent of GDP was 2.79 percent (GDP for
1998 is estimated at USD 76.1 billion).
[Note: The Department's 1997 submission reported the percent of
GDP for 1997 as 1.23 percent. The correct figure was 2.78
percent.]
PERCENTAGE OF BUDGET:
Percent of fiscal budget was 14.75 percent. (This figure
includes revenues from copper sales.)
[Note: The Department's 1997 submission reported the percent of
fiscal budget as nine percent, not including copper revenues.
The 1997 percent of fiscal budget including copper revenues was
15.26. percent.]
TRENDS IN REAL TERMS:
The trend in real terms is a decline in defense spending as a
percentage of GDP (4.1 percent in 1990 to 2.72 percent estimated
for 1999.)
ROLE OF THE ARMED FORCES
SIZE OF THE ARMED FORCES:
Since publication of the 1997 "Book on the National Defense of
Chile," military active service strength has declined slightly,
from 89,600 to approximately 88,000 (army at 51,000, navy at
24,000, and air force at 13,000). According to the National
Defense Book, the armed forces' role is to preserve the
independence, sovereignty and territorial integrity of Chile
primarily through deterrence. The other objectives of the
national defense are supporting the rule of law, creating the
security needed for the common good and development of the
nation, and helping to maintain international peace. Although
not part of the armed forces budget, Chile's police force
(Carabineros and investigative police) are part of the larger
defense, order and security budget.
Chile is currently participating in international peacekeeping
operations, including the Peru-Ecuador observer mission, the
India-Pakistan observer mission, and the UN Special Commission
(UNSCOM) in Iraq. The Carabineros form part of the international
police force in Bosnia.
COMMENTS ON ITS POLITICAL ROLE:
The armed forces are an important national institution, and
attention is paid to their views. The armed forces seldom
address issues not directly related to national security or their
institutional interests. However, the armed forces tend to view
criticisms of their role during the Pinochet regime (1973-1990)
as threats to their institutional status and resist judicial or
other scrutiny of that period.
CAN CIVILIAN AUTHORITIES APPOINT AND REMOVE MILITARY OFFICERS?
The armed forces are constitutionally subordinate to the
president through an appointed civilian minister of defense.
Service commanders can only be removed by the president with the
concurrence of the multi-institutional National Security Council.
The minister of defense and the president have final approval
authority over all military appointments and retirements.
REDUCING MILITARY SPENDING
FEASIBILITY OF REDUCING MILITARY SPENDING:
Real military spending levels are expected to decline in 1999 as
part of general budgetary constraints and low copper prices
(military revenues from copper peaked at USD 347 million in 1995
and are expected to be USD 255 million in 1999). A broad
political consensus in Chile supports the current mission of the
armed forces, its modernization and the general level of
spending. The multiparty congressional committees overseeing
defense reflect this consensus.
U.S. EFFORTS TO ENCOURAGE REDUCED MILITARY SPENDING:
None.
COUNTRY EFFORTS TO REDUCE MILITARY SPENDING:
Chile is a leading proponent of transparency in military
procurement and institutionalized regional confidence and
security-building measures.
HAS THE COUNTRY PROVIDED ACCURATE MILITARY SPENDING DATA TO
RELEVANT INTERNATIONAL ORGANIZATIONS AND ARMS TRANSFER DATA TO
THE UN REGISTER OF CONVENTIONAL ARMS?
Chile has often (ten times) submitted standardized MILEX reports
to the UN from 1984 to 1996. In 1998, Chile participated in the
UN Register of Conventional Arms.
HAS THE COUNTRY PARTICIPATED IN REGIONAL TALKS TO REDUCE MILITARY
SPENDING?
Chile is an active participant in regional efforts for confidence
and security-building measures.
ASSESSMENT OF MILITARY BUDGET ACCURACY
IS THE MILITARY BUDGET ACCURATE AND COMPLETE?
The defense budget is considered accurate. Other sources of
income (e.g., the percentage of copper revenues from the
parastatal copper company (CODELCO), and revenues from civil
aviation, military industries, etc.) are publicly known, although
revenues generated fluctuate.
TO WHAT DEGREE IS THE MILITARY BUDGET TRANSPARENT?
The Ministry of Defense has made a notable effort to be
transparent, and significant expenditures such as the purchase of
submarines or advanced aircraft are debated in the press and by
the Congress.
COLOMBIA
MILITARY SPENDING
REPORTING PERIOD: January 1 through December 31, 1998 (Projected)
[Note: Data sources are given in parentheses. As accounting
methodology differs, sometimes substantially, various sources
often report inconsistent numbers. Data are from the Colombian
Planeacion (National Planning Office), which in turn are based on
the Government of Colombia (GOC) comptroller-general's figures,
as much as possible, since those statistics are considered to be
the most reliable.]
AMOUNT:
Police.....1,558,347,000,000 cop*
Military...2,913,419,000,000 cop*
Total......4,471,766,000,000 cop*
(Source: National Planning Office)
[*Note: Inability to predict how much the Colombian peso
exchange rate will change by the end of 1998 precludes provision
of Colombian military spending in U.S. currency at this time.
Hence, figures are provided in Colombian pesos (cop) only. When
complete exchange-rate figures for 1998 become available, the
local currency can be converted to USD. To avoid erroneous
comparisons with dollar figures for previous years, it should be
kept in mind that the peso has declined 45 (forty-five) percent
against the U.S. dollar since July 1997. As benchmarks, the
exchange rate (cop/1 USD) on January 1 was 1,293.58; on September
2, 1442.95; and on November 3, 1575.08.]
PERCENTAGE OF GDP:
Police.....1.2
Military...2.2
Total......3.4
(Source: National Planning Office)
PERCENTAGE OF BUDGET:
Police.....6.60
Military..12.34
Total.....18.94
(Source: National Planning Office)
TRENDS IN REAL TERMS (Real Growth Rates):
Figures below are percentage increase or decrease from previous
year:
Year Police Military Total
1994 3.7% -6.5% -3.1%
1995 13.3% 12.1% 12.6%
1996 11.3% 29.4% 23.0%
1997 5.6% 13.2% 10.8%
1998 9.5% -8.9% -3.2%
(Source: The above figures for earlier years differ from those
provided last year. The difference may be attributable to the
sources. Last year's reported data from the Ministry of Defense
(MOD) This year's reports data from the National Planning Office
(meaning ultimately the comptroller-general's Office.)
The MOD failed to provide trends in real terms for this year.
Due to potential confusion owing to differing sources for past
year information, a complete breakdown of trends in real terms
for years 1981-1998 is provided below:
Total Spending:
Year Personnel General Transfers Operating Investment Total
1981 9.8% -7.2% 5.2% 4.6% -35.9% 0.4%
1982 7.3% -12.3% -4.7% -0.2% -12.9% -1.0%
1983 17.2% 49.4% 26.7% 25.6% 121.6% 31.1%
1984 5.4% -42.0% 1.9% -5.7% 138.2% 8.2%
1985 -2.5% 12.6% -6.8% -1.8% -33.6% -8.6%
1986 3.4% -29.1% -4.4%- -3.7% 19.9% -0.1%
1987 6.3% 30.4% 5.9% 8.9% 1.0% 7.4%
1988 5.2% 17.8% 0.6% 5.6% 45.7% 12.6%
1989 2.9% -14.9% 4.9% 0.8% 20.7% 5.3%
1990 4.8% 7.0% 2.3% 4.4% -15.3% -0.7%
1991 1.8% 59.7% 12.5% 12.1% -49.7% -1.6%
1992 16.7% 30.9% 8.9% 17.2% 50.7% 21.0%
1993 15.0% 49.1% 26.8% 24.9% 54.9% 29.2%
1994 12.8% -19.9% 30.7% 9.4% -64.5% -3.1%
1995 8.5% 3.6% 29.7% 14.0% -9.8% 12.6%
1996 2.2% 7.4% 37.3% 15.1% 173.8% 23.0%
1997 15.2% 10.7% -18.6% 0.7% 92.2% 10.8%
1998 6.9% 21.7% 9.7% 10.3% -60.0% -3.2%
Military Spending:
Year Personnel General Transfers Operating Investment Total
1981 8.8% -7.3% 4.9% 3.1% -37.8% -2.9%
1982 8.7% -9.8% -4.4% 0.0% -12.1% -1.1%
1983 13.9% 52.3% 11.1% 21.9% 133.7% 31.2%
1984 -0.1% -45.0% 3.5% -12.0% 132.9% 9.4%
1985 -2.7% 5.3% -2.2% -1.1% -37.1% -12.4%
1986 7.0% -27.1% -9.0% -4.5% 38.1% 5.2%
1987 8.5% 31.4% 5.7% 11.0% -16.0% 3.0%
1988 5.7% 26.7% 0.7% 7.9% 68.0% 22.5%
1989 -0.6% -18.5% 4.7% -2.9% 22.0% 5.4%
1990 6.3% 5.6% 62.4% 21.9% -10.9% 9.3%
1991 1.8% 82.2% 8.8% 16.2% -54.1% -5.8%
1992 16.2% 22.1% 4.7% 13.5% 60.8% 20.7%
1993 19.3% 54.3% 25.9% 30.1% 37.7% 31.7%
1994 11.4% -18.1% 30.8% 8.8% -63.2% -6.5%
1995 11.3% 0.7% 24.9% 14.1% -9.1% 12.1%
1996 3.3% 6.5% 40.9% 19.4% 167.1% 29.4%
1997 11.8% 18.8% -15.1% 0.0% 94.6% 13.2%
1998 6.9% 5.1% 8.9% 7.3% -59.9% -8.9%
Police Spending:
Year Personnel General Transfers Operating Investment Total
1981 10.8% -7.0% 5.7% 6.6% -23.4% 5.6%
1982 5.9% -18.4% -5.2% -0.4% -16.7% -0.8%
1983 20.6% 41.5% 50.6% 30.5% 53.9% 31.0%
1984 10.6% -33.6% 0.0% 2.1% 183.9% 6.6%
1985 -2.4% 30.3% -12.2% -2.6% -8.8% -3.0%
1986 0.3% -33.0% 1.5% -2.9% -67.5% -6.9%
1987 4.4% 28.4% 6.3% 6.7% 346.8% 14.0%
1988 4.7% -1.4% 0.6% 3.1% -39.7% -0.6%
1989 6.2% -4.8% 5.2% 5.0% 7.2% 5.1%
1990 3.4% 10.5% -67.2% -14.5% -68.2% -17.4%
1991 1.9% 8.4% 34.0% 5.7% 101.5% 7.7%
1992 17.1% 64.7% 28.5% 23.4% -27.6% 21.5%
1993 11.1% 34.3% 30.5% 16.9% 350.3% 24.4%
1994 14.2% -25.6% 30.4% 10.4% -71.7% 3.7%
1995 5.9% 14.2% 46.9% 14.0% -14.8% 13.3%
1996 1.0% 10.3% 26.3% 7.7% 222.4% 11.3%
1997 18.7% -14.1% -31.0% 2.0% 77.5% 5.6%
1998 6.9% 92.0% 13.2% 15.7% -60.7% 9.5%
(Source: National Planning Office, based on comptroller-general
figures and the 1998 Colombian budget law.)
[Note: The decline in overall military spending in 1998 is
directly attributable to sharp declines in investment, e.g.,
equipment and munitions acquisitions, in the military and police
forces. In the case of the national police, U.S. aid constitutes
virtually all investment for 1998. In the case of the military
forces, the drop in investment for 1998 is less severe when
viewed in light of the sharp increases for 1996 and 1997
(creating a higher baseline for 1998). One part of the sharp
increase for 1997 was a 440 billion peso addition to the budget,
from "peace bonds". These funds were obligated in 1997, many
with out-year delivery of the goods. For instance, a large
quantity of munitions were purchased in 1997 for 1998 delivery,
thus obviating the need for a similar purchase in 1998.]
ROLE OF THE ARMED FORCES
SIZE OF THE ARMED FORCES:
Police.....100,469
Military...153,792
Total......254,261
(Source: Ministry of Defense, September 1998 payroll)
COMMENTS ON ITS POLITICAL ROLE:
Colombia has the longest running continuous democracy in South
America and, under the 1991 constitution, a civilian minister of
defense. The constitution states that the military and police
comprise Colombia's "public forces" with the "defense of
sovereignty, independence and integrity of the national
territory" as the responsibility of the military; and with the
police defined as a "permanent armed force of a civil nature--
responsible for maintaining the conditions necessary for the
exercise of public rights and liberties and to ensure Colombians
live together in peace."
CAN CIVILIAN AUTHORITIES APPOINT AND REMOVE MILITARY
OFFICERS?
Commanders serve at the pleasure of the president who is
commander-in-chief. Civilian leaders may freely appoint and
remove senior military officers, a power most recently exercised
by newly elected President Pastrana, who replaced all the service
chiefs and the commanding general of the military forces in
August 1998.
REDUCING MILITARY SPENDING
FEASIBILITY OF REDUCING MILITARY SPENDING:
It is not strategically feasible, given the current security
situation in Colombia, for the GOC to reduce military spending in
the foreseeable future. Guerrilla insurgents, paramilitaries,
common criminals and well-armed drug traffickers combine to
create a dangerous security situation for Colombia's public
forces. In many regions of Colombia there is already little or
no military/police presence, making it easy for guerrillas or
other armed groups to control the local populations. Colombia
has largely cordial relations with its neighbors, although
guerrilla incursions and cross-border refugees have caused
strain, particularly with Venezuela and Panama. Additionally,
guerrillas utilize Ecuadorian territory for safe haven.
Many observers opine that the current military is simply not big
enough or properly equipped to handle Colombia's vast expanses
and myriad problems. Other commentators disagree and cite a lack
of intelligence capability, communications equipment, air
mobility, and political will as the roots of the military's
current poor performance. In either case, reducing military
spending is not a realistic or desirable option in the near term.
U.S. EFFORTS TO ENCOURAGE REDUCED MILITARY SPENDING:
Due to the threats outlined above, the USG has not encouraged
Colombia to reduce military expenditures.
COUNTRY EFFORTS TO REDUCE MILITARY SPENDING:
Fiscal realities in Colombia may soon force the armed forces to
stabilize their defense budget as a percentage of GDP (as opposed
to the trend of increasing percentages of GDP in recent years).
Colombia is not making any multilateral efforts to reduce
military spending.
HAS THE COUNTRY PROVIDED ACCURATE MILITARY SPENDING DATA TO
RELEVANT INTERNATIONAL ORGANIZATIONS AND ARMS TRANSFER DATA TO
THE UN REGISTER OF CONVENTIONAL ARMS?
Colombia occasionally (four times) has submitted standardized
MILEX reports to the UN from 1983 to 1993. In 1998, Colombia did
not participate in the UN Register of Conventional Arms. In the
past, Colombia has participated. Colombia has provided military
spending data to interested parties. The accuracy of the data is
sometimes questionable--different GOC sources often report widely
differing statistics for the same element, and sometimes the
Colombians themselves do not accurately know basic facts, such as
precisely how much each service spent in any given year, or
exactly how much their defense spending has changed from year to
year. These differences are attributed more to statistical
errors or different compilation methods rather than any
unwillingness on the part of the GOC to provide the data. Other
factors in the Colombian military funding and appropriations
processes which can cause inadvertent confusion are described
below:
Since the entitlement portion of the defense budget is
obligatory, the operations and investment/acquisition portions
become the only areas where cuts can be made. So far, the
military has mainly been able to avoid such cuts by simply
increasing the overall defense budget to accommodate the
increasing entitlement requirements while maintaining roughly
historical levels of spending on operations and investment. In
1999, however, the GOC's critical budget plight raised a
possibility of real cuts in the military budget which, barring
immediate and drastic reform of the military entitlement
structure, would have come from operations/acquisitions.
One factor mentioned which tends to confuse defense-budget
analysis is the Colombian process of appropriation. Through
supplemental appropriations and other various in-year
adjustments, the Colombian armed forces almost always wind up
spending more than their initial annual appropriation. For
example, the 1997 "cut" in the defense budget was more than made
up for in war bonds (a one-time supplemental tax), and the armed
forces actually spent an amount slightly more than their initial
appropriation.
Another confusing element to the defense budget is the fact that
the CNP in particular receives a large portion of its operations
and investment equipment directly from local or international
sources, "off the books" from the perspective of the central
government. For example, local mayors and departmental governors
often provide fuel, ammunition, radios, flak jackets, etc.,
directly to the CNP units responsible for their municipality or
department. Likewise, other nations such as the U.S. provide
equipment such as helicopters and arms to the CNP. The CNP has
no obligation to report these acquisitions to the central
government. The Planeacion data suggests that the CNP does not
depend on the central government for a large portion of its
acquisitions and operating expenditures.
HAS THE COUNTRY PARTICIPATED IN REGIONAL TALKS AIMED
AT REDUCING MILITARY SPENDING?
No such talks have taken place.
ASSESSMENT OF MILITARY BUDGET ACCURACY
IS THE MILITARY BUDGET ACCURATE AND COMPLETE?
The armed forces' budget is generally complete. Local police
stations in particular, and probably to a lesser extent local
military bases, often receive material assistance directly from
the local departmental and municipal governments they support.
Although not illegal, such assistance is "off the books" from the
perspective of the central government, hamstrings the National
Planning Office's (Planeacion) efforts to accurately gauge the
investment expenditures of the public forces, and contributes to
inaccuracies in defense spending data. The Colombian army is
also known to receive substantial sums of money directly from
corporations, including multinational oil companies for whom the
army provides security protection. In 1997 a compulsory peace-
bond issuance resulted in a 440 billion peso one-time addition to
the armed forces' original appropriation.
However, in general, the Colombians are relatively open about
their resource shortfalls and spending patterns, if for no other
reason than to solicit help. Rumors of corruption (accounting
for, by one specialist's estimate, 30 percent of the military
investment budget) surround some military and police officers,
but they are not thought to be using illicit income to supplement
the public forces budget. The guerrillas and paramilitaries, on
the other hand, are well-financed through criminal activity and
ties with narcotraffickers.
TO WHAT DEGREE IS THE MILITARY BUDGET TRANSPARENT?
Notwithstanding the inaccuracies and inconsistencies noted above,
the military budget is generally transparent. The U.S. Embassy
has encountered little resistance from any GOC office in
providing whatever budgetary statistic asked for. The military
is accountable to civilian authority for budget performance, as
for any other activity.
CZECH REPUBLIC
MILITARY SPENDING
REPORTING PERIOD: January 1 to December 31, 1998
AMOUNT:
Military spending for 1998 was 1.1 billion U.S. dollars or
30.2 billion Czech Crowns (One dollar equals 29 Czech Crowns).
PERCENTAGE OF GDP: 1.8
PERCENTAGE OF BUDGET: 6.9
TRENDS IN REAL TERMS:
Military spending increased by 0.1 percent of GDP, a sign of the
Czech Republic's commitment to its imminent NATO membership.
ROLE OF THE ARMED FORCES
SIZE OF THE ARMED FORCES:
Armed forces personnel strength held steady at roughly 55,000.
The armed forces participate in Partnership for Peace and various
international peacekeeping operations. They contributed a
mechanized infantry battalion to the NATO Stabilization Force
(SFOR) operation in Bosnia.
COMMENTS ON ITS POLITICAL ROLE:
The Czech armed forces are apolitical. Officers are barred from
elected office and membership in political parties.
CAN CIVILIAN AUTHORITIES APPOINT AND REMOVE MILITARY OFFICERS?
Civilian control of the military is accepted in theory and
practice. The civilian minister of defense has authority to
appoint and remove officers. The president appoints and promotes
generals.
REDUCING MILITARY SPENDING
FEASIBILITY OF REDUCING MILITARY SPENDING:
In connection with efforts to improve interoperability with NATO
and prepare for membership in the Alliance, the Czech focus has
been on increasing rather than REDUCING MILITARY SPENDING. The
U.S. and other NATO allies have encouraged these efforts. The
current Czech government has reiterated the commitment of its
predecessor to increase military spending to at least 2.0 percent
of GDP by the year 2000.
U.S. EFFORTS TO ENCOURAGE REDUCED MILITARY SPENDING: None.
COUNTRY EFFORTS TO REDUCE MILITARY SPENDING: None.
HAS THE COUNTRY PROVIDED ACCURATE MILITARY SPENDING DATA TO
RELEVANT INTERNATIONAL ORGANIZATIONS AND ARMS TRANSFER DATA TO
THE UN REGISTER OF CONVENTIONAL ARMS?
We have no reason to doubt the accuracy of the military spending
information the Czech Republic has provided to relevant
international organizations, including NATO, although the U.S.
Embassy does not have the resources to verify this information.
The Czech Republic has regularly submitted standardized MILEX
reports to the UN from 1991 to 1998. In 1998, the Czech Republic
participated in the UN Register of Conventional Arms and provided
arms transfer data.
HAS THE COUNTRY PARTICIPATED IN REGIONAL TALKS TO REDUCE MILITARY
SPENDING?
There are no such regional talks.
ASSESSMENT OF MILITARY BUDGET ACCURACY
IS THE MILITARY BUDGET ACCURATE AND COMPLETE?
The budget is believed to be accurate. In 1997, the bulk of the
Czech contribution to SFOR was funded outside the defense budget.
However, these costs were included in the 1998 defense budget.
We are aware of no "off-budget" sources of income. The Czech
Republic now uses NATO's definition of "military" spending, which
does not include some budget items (e.g., military pensions)
included in previous reports under the heading of defense
spending.
TO WHAT DEGREE IS THE MILITARY BUDGET TRANSPARENT?
The budget is transparent, prepared by the civilian-controlled
Ministry of Defense, and the subject of often-contentious debate
within the government and parliament. The military is fully
subordinate to civilian authorities.
EGYPT
MILITARY SPENDING
REPORTING PERIOD: January 1 to December 31, 1998.
AMOUNT: Uncertain. An unknown percentage of LE 22 billion
(about USD 6.47 billion).
[Note: No amount was given for defense and security in the
1998/99 budget. Subtracting all other listed expenditures from
the budget leaves LE 22 billion (USD 6.47 billion).]
This year's figure contains more than just the
defense/interior/justice accounts. The Government of Egypt (GOE)
has over the past several years combined expenditures on the
military, internal security, and justice and provided only one
figure. The military portion (unspecified) of this figure has
traditionally included military wages, local purchases and
maintenance but does not include USD 1.3 billion in USG Foreign
Military Financing (FMF) security assistance. Other (non-FMF)
military procurement, debt servicing, and support for the
military have never been made available to the public.
However, it is not known what other expenditures were left out as
well. In past years, defense, interior and justice have been
included together. Since this year's amount is almost double
what was spent for those three agencies last year, it must be
assumed that additional expenditures are included in this year's
amount. At the same time, there may be some dual-use
expenditures which are part of other line items. In any event,
it is clear that the LE 22 billion figure is not a true
reflection of what the GOE spends on defense, which could be
considerably lower.
PERCENTAGE OF GDP: 7.4 percent.
Using the omnibus LE 22 billion (same caveat as above; again
almost double last year, therefore likely contains other
funding).
PERCENTAGE OF BUDGET: 24.23 percent.
Using the omnibus LE 22 billion (same caveat as above; again
almost double last year, therefore likely contains other
funding).
TRENDS IN REAL TERMS:
Probably half of Egyptian military spending is provided by USG
FMF assistance (USD 1.3 billion annually since FY 1987). In 1979
dollars, today's assistance would amount to less than $600
million after the effects of inflation are taken into account.
ROLE OF THE ARMED FORCES
SIZE OF ARMED FORCES:
According to International Institute for Strategic Studies (IISS)
information for 1995, the active duty Egyptian armed forces
number approximately 440,000. This figure represents more than a
one-third reduction since the signing of the Camp David accords.
Egyptian forces participate in a number of international
peacekeeping operations and Egypt currently has peacekeepers
serving in Angola, Western Sahara, Georgia, and Macedonia. An
Egyptian battalion served for two years with SFOR in Bosnia until
its departure in December 1998 as part of a coordinated drawdown
of forces.
COMMENTS ON ITS POLITICAL ROLE:
The Egyptian military is considered the ultimate guarantor of
political stability in Egypt. Although the armed forces normally
play no role in maintaining internal security, the armed forces
are prepared to step in to maintain order in extreme cases of
unrest.
CAN CIVILIAN AUTHORITIES APPOINT AND REMOVE MILITARY OFFICERS?
President Mubarak's civilian government has ultimate
responsibility for appointments and removals in the military.
REDUCING MILITARY SPENDING
FEASIBILITY OF REDUCING MILITARY SPENDING:
Egypt is largely reliant on foreign funding or excess defense
articles for its weapons systems acquisition. The government
minimizes the amount of national funds spent on the military,
using national funds only when foreign security assistance will
not support weapons acquisitions and follow-on support. As noted
above, Egypt already has lost at least 50 percent of its U.S.
security assistance due to inflation.
U.S. EFFORTS TO ENCOURAGE REDUCED MILITARY SPENDING:
Encouraging reduction in Egyptian military expenditures is not a
USG priority. Significant cuts would jeopardize the joint
U.S.-Egyptian objective of armed forces modernization and other
USG interests in the region. However, the USG has worked with
the Egyptian government to improve prioritization and better
utilize the funds the GOE does have available.
COUNTRY EFFORTS TO REDUCE MILITARY SPENDING:
Given the absence of public information on the military budget,
no information is available on government reductions in military
spending. However, due to inflation and stagnation, it is likely
that Egyptian military spending (as with FMF) has been reduced in
real terms.
Also see classified annex.
HAS THE COUNTRY PROVIDED ACCURATE MILITARY SPENDING DATA TO
RELEVANT INTERNATIONAL ORGANIZATIONS AND ARMS TRANSFER DATA TO
THE UN REGISTER OF CONVENTIONAL ARMS?
The defense budget is closely held and has not been provided to
any international organizations. Egypt has never submitted a
standardized MILEX report to the UN. In 1998, Egypt did not
participate in the UN Register of Conventional Arms. In the
past, Egypt has participated. Egypt provided information to the
conventional arms register its first year but has declined to
provide information since then in protest of what it considers
deficiencies in the register which have not been addressed.
HAS THE COUNTRY PARTICIPATED IN REGIONAL TALKS TO REDUCE MILITARY
SPENDING?
Egypt in the past has been an active participant in the arms
control and regional security working group of the Middle East
Peace Process. No official meeting were held in 1998, but
Egyptian officials have participated in academic meetings on
similar issues.
ASSESSMENT OF MILITARY BUDGET ACCURACY
IS THE MILITARY BUDGET ACCURATE AND COMPLETE?
The military budget is not shared publicly.
TO WHAT DEGREE IS THE MILITARY BUDGET TRANSPARENT?
Portions of the military budget are reviewed in closed sessions
by designated committees of the People's Assembly.
EL SALVADOR
MILITARY SPENDING
REPORTING PERIOD: January 1 to December 31, 1998.
AMOUNT:
The 1998 defense budget was approx. USD 104.6 million,
or 915.6 million colones (at 8.75 colones to the dollar).
PERCENTAGE OF GDP:
The 1998 defense budget represented 0.9 percent of GDP.
PERCENTAGE OF BUDGET:
The 1998 defense budget was approximately 5.4 percent of the
total 1998 government budget.
TRENDS IN REAL TERMS:
Although the FY 98 budget represents a slight increase over the
FY 97 budget of USD 101.2 million, the budget is not sufficient
to address many of the El Salvadoran armed forces (ESAF)
requirements. With more than 75 percent of the budget going to
personnel expenses, there is little left for equipment purchases
and maintenance.
ROLE OF THE ARMED FORCES
SIZE OF THE ARMED FORCES:
The ESAF has an approximate strength of 15,000 soldiers under
arms and a civilian/administrative workforce of approximately
5,000 personnel.
The 1992 peace accords mandated the removal of internal security
forces from military control. The president has the power to
employ the ESAF for internal security purposes in exceptional
circumstances only. For the past four years, in response to
critical crime levels during the establishment of the national
civilian police (PNC), the president has directed the ESAF to
participate in joint rural patrols under PNC operational control.
Close to 200 such patrols, including six ESAF personnel and two
PNC agents, are in the field at any one time. The ESAF is
anxious for the circumstances to develop in which this role is no
longer necessary, because the ESAF receives no additional funding
for this activity.
ESAF personnel have participated in international peacekeeping
operations (PKO). There are currently two army captains serving
with the UN PKO in the Western Sahara (third rotation) and one
army first lieutenant in Kuwait with the Argentine contingent.
The ESAF has abided by its constitutional mandate to provide for
external defense.
COMMENTS ON ITS POLITICAL ROLE:
The ESAF is entirely apolitical and is under civilian control.
In January 1998, the minister of defense retired from the
military, and is now a civilian. This is meant to provide a
transition to the practice of appointing civilians as ministers
of defense.
CAN CIVILIAN AUTHORITIES APPOINT AND REMOVE MILITARY OFFICERS?
The president has the power to appoint and remove the minister of
defense, the high command, and all officers. He also has the
constitutional prerogative of approving or disapproving officer
promotions. In practice, the current president only has
exercised this privilege with regard to general officer
promotions; he has not reviewed company or field grade
promotions.
REDUCING MILITARY SPENDING
FEASIBILITY OF REDUCING MILITARY SPENDING:
The military budget continues to be effectively reduced by
inflation. The decline in real terms of the military budget has
led to an erosion of military capability.
U.S. EFFORTS TO ENCOURAGE REDUCED MILITARY SPENDING:
The U.S. has encouraged the Government of El Salvador (GOES) to
bring military spending in line with legitimate defense needs. A
declining budget in real terms, and the continuing reduction in
money available through Foreign Military Spending (FMS), will
lead to continued reductions in real capabilities. The ESAF has
received no new FMF dollars since the end of the civil war.
COUNTRY EFFORTS TO REDUCE MILITARY SPENDING:
Efforts to reduce military spending have been unilateral, by
permitting the budget to decline in real terms.
HAS THE COUNTRY PROVIDED ACCURATE MILITARY SPENDING DATA TO
RELEVANT INTERNATIONAL ORGANIZATIONS AND ARMS TRANSFER DATA TO
THE UN REGISTER OF CONVENTIONAL ARMS?
The GOES provides military spending and arms transfer data to
international organizations. The ESAF military budget is
unclassified and available to the public. El Salvador has
submitted standardized MILEX reports to the UN two times--1987
and 1996. In 1998, El Salvador did not participate in the UN
Register of Conventional Arms. In the past, El Salvador has
participated.
HAS THE COUNTRY PARTICIPATED IN REGIONAL TALKS TO REDUCE MILITARY
SPENDING?
El Salvador has participated in regional talks on security
issues.
ASSESSMENT OF MILITARY BUDGET ACCURACY
IS THE MILITARY BUDGET ACCURATE AND COMPLETE?
The military budget does not include the following off-budget
income sources:
-- U.S. bilateral military assistance.
-- Self-sufficient efforts. Six military organizations are
authorized to engage in for-profit ventures in order to maintain
and upgrade the equipment on hand. Funds generated in this way
must be deposited into an identified account in the national
treasury, whence they are disbursed to the military.
-- The military retirement fund, the government contribution to
which is included in the budget, earns funds through investments
in the private financial sector. The type of investments allowed
by the government is tightly controlled. Military personnel also
pay a portion of their salaries into this fund.
-- Military cooperative stores are managed with contributions
from military members on a share holder basis. Their assets are
not included in the overall military budget.
Although there is no practice of making supplemental
authorizations to augment the initially-approved military budget,
the 1998 privatization of a national power distributor enabled
the Assembly to authorize as additional 16 million colones (USD
1.8 million) for the FY 98 ESAF budget. The ministry of defense
stated that the supplement would be spent on infrastructure
renovation and wheeled vehicles.
TO WHAT DEGREE IS THE MILITARY BUDGET TRANSPARENT?
The military budget is becoming more transparent and, as a
result, there is increased accountability to civilian
authorities. The ESAF presentation to the legislative assembly
of the FY 99 budget was well received by the Assembly.
ERITREA
Eritrea, an impoverished state which became independent in 1993
after a 30-year fight for its freedom, does not publish a budget.
The government is particularly sensitive about releasing any
information on military expenditures. Between 1993 and mid-1998
the government made a great effort to reduce the size of the
force which had won independence. However, in May 1998 a border
dispute broke out between Eritrea and Ethiopia. Since then both
sides have made Herculean efforts to expand their armed forces.
While there is anecdotal information available concerning the
extent of Eritrea's military build-up, we have no firm figures on
actual costs. It is therefore impossible to produce numbers on
military spending except to say that the budget has grown
exponentially beyond the USD 82.66 million projected for 1998.
The U.S. Department of Defense hopes to assign a permanent
military attachˇ to Asmara in the very near future. This will
markedly improve our ability to estimate the strength of the
Eritrean military.
MILITARY SPENDING
REPORTING PERIOD: January 1 to December 31, 1998.
AMOUNT: Figures not available.
PERCENTAGE OF GDP: Figures not available.
PERCENTAGE OF BUDGET: Figures not available.
TRENDS IN REAL TERMS:
In the first five months of 1998 Eritrea continued its efforts to
decrease the size of the revolutionary force which won the
country's independence from Ethiopia. More than 100,000 men and
women were in the armed forces at the time of independence. By
early 1998 that figure had been reduced to 47,000. Every citizen
between the ages of 18 and 40 is required to serve 18 months of
national service, six months of which is military training.
After the border dispute with Ethiopia broke out in May, the
government called up all reservists bringing the armed forces
back to over 100,000 members. Taxes on citizens resident in
Eritrea and Eritreans in diasphora were increased. Overseas
citizens have contributed generously. Unknown amounts of funds
have been provided by foreign governments, including Libya and
Qatar. Economic and social development spending was dramatically
reduced. Funds generated in these ways have been used to expand
the military. Huge purchases of the most sophisticated equipment
(i.e. MiG-29s, SAMs) were made from various sources, mostly in
Eastern Europe and the CIS.
ROLE OF THE ARMED FORCES
SIZE OF THE ARMED FORCES:
Over 100,000. The military does not participate in international
peacekeeping operations.
COMMENTS ON ITS POLITICAL ROLE:
The military does not have a direct role in civilian affairs.
However, it should be noted that the President of Eritrea was the
military commander during the war for independence, and the
military has a strong voice in decisions far outside the usual
military purview. The military's primary role is to provide for
the national defense and to assist in rebuilding infrastructure,
much of which was destroyed during the war for independence.
CAN CIVILIAN AUTHORITIES APPOINT AND REMOVE MILITARY OFFICERS?
The defense minister is appointed and removed by the civilian
(formerly military) president and reports directly to the
president. The minister of defense plays a significant role in
approving major strategic military decisions. Subordinates
within the military and ministry of defense are selected by the
minister of defense. Senior ranking officers are not approved by
the National Assembly, as is the case for Congressional
confirmation of senior U.S. military officials. The military is
clearly under the control of the civilian leadership.
REDUCING MILITARY SPENDING
FEASIBILITY OF REDUCING MILITARY SPENDING:
Eritrea is situated in a volatile region of strategic importance
to the U.S. The Eritrean Islamic Salvation (formerly the
Eritrean Islamic Jihad), which is given funds and safehaven by
Sudan, has committed terrorist acts against foreigners and "soft"
non-military targets, including schoolyards and wedding parties.
Sudanese planes have bombed targets inside Eritrea. Eritrea has
also engaged in minor armed clashes with Yemen and Djibouti over
the past five years, but these issues appear to have been
resolved. The 47,000-person force which existed in early 1998
was adequate to meet these challenges.
These issues have been dwarfed by Eritrea's response to the
border crisis with Ethiopia. If that crisis is resolved
peacefully, it is possible that Eritrea will again reduce the
size of its armed forces. However, it is unlikely that the armed
forces will go down to 47,000 any time soon given the degree of
mistrust which now prevails between Eritrea and its large
neighbor to the south.
U.S. EFFORTS TO ENCOURAGE REDUCED MILITARY SPENDING; COUNTRY
EFFORTS TO REDUCE MILITARY SPENDING:
Eritrea is not making any effort currently to downsize its
military. The U.S. has sent facilitation teams led by former
National Security Advisor Lake to the region to help Eritrea and
Ethiopia to reach a peaceful resolution of their border problem.
The U.S. also supports similar efforts undertaken by the
Organization of African Unity.
HAS THE COUNTRY PROVIDED ACCURATE MILITARY SPENDING DATA TO
RELEVANT INTERNATIONAL ORGANIZATIONS AND ARMS TRANSFER DATA TO
THE UN REGISTER OF CONVENTIONAL ARMS?
No. No overall budget exists; no military budget is published.
Few financial documents of any sort have been made available.
However, general figures found in the recently published National
Economic Policy Framework for 1998-2000 mark a start in
publishing figures for government spending. USAID has provided
assistance in developing government statistics. As that
statistical base is developed, the government can be expected to
increase the number of statistical and financial reports.
Eritrea has never submitted a standardized MILEX report to the
UN. In 1998, Eritrea did not participate in the UN Register of
Conventional Arms.
HAS THE COUNTRY PARTICIPATED IN REGIONAL TALKS TO REDUCE MILITARY
SPENDING?
No. No such forum exists.
ASSESSMENT OF MILITARY BUDGET ACCURACY
IS THE MILITARY BUDGET ACCURATE AND COMPLETE?
No. See above.
TO WHAT DEGREE IS THE MILITARY BUDGET TRANSPARENT?
Not at all, both because of limited statistical capability and a
reluctance to publicize information which might be useful to
Ethiopia in the current border crisis.
ETHIOPIA
MILITARY SPENDING
REPORTING PERIOD:
Because of the different calendar followed in Ethiopia, its
budget runs from July 8, 1998 to July 7, 1999.
AMOUNT:
Figures are provided in Ethiopian birr, with the dollar amount in
parentheses, calculated at the current rate of exchange (7.25
birr to USD 1). Ethiopia's FY 98-99 budget allocation for
military expenditures is birr 995 million (USD 137.2 million) out
of a federal budget of birr 11.1 billion (USD 1.53 billion).
PERCENTAGE OF GDP:
2.18 percent of GDP (roughly USD 6.3 billion in 1998/99).
PERCENTAGE OF BUDGET:
The military budget is about 8.9 percent of the total budget.
TRENDS IN REAL TERMS:
In birr, military spending increased 13.9 percent in 1998/99.
The birr devalued against the U.S. dollar by about 6.8 percent in
the last year, therefore the increase in dollar terms was only
about 8.89 percent. On the other hand, since the overall 1998/99
budget decreased by 7.48 percent from that of last year, the
military share of the budget actually increased significantly
from 7.25 percent in 1997/98 to the current 8.9 percent. The
increase in the defense budget (the first increase in seven
years) reflects increased spending as a result of the ongoing
border dispute with Eritrea.
Also see classified annex.
ROLE OF THE ARMED FORCES
SIZE OF THE ARMED FORCES:
The size of Ethiopia's armed forces, which had been significantly
downsized over the last several years, has at least doubled since
June to approximately 200,000 (or more, according to some
sources). The military consists of three infantry corps with
limited armor (although this has been increased since the
outbreak of the border dispute) and artillery support, and an air
force which is severely constrained by maintenance problems and
pilot shortages. Ethiopia is landlocked and no longer maintains
a navy.
Also see classified annex.
COMMENTS ON ITS POLITICAL ROLE:
The armed forces are increasingly apolitical. There is a clear
distinction between those ruling party members who occupy civil
positions and those in the military. The establishment of a
national police force in 1994 reinforced this trend.
Nevertheless, until the armed forces better reflect the ethnic
diversity of the population, some segments of the population will
continue to perceive the military as ethnically-based and biased.
(Comment: The armed movement which overthrew the Mengistu regime
was essentially a Tigray-based movement, and the officer corps
remains heavily Tigrayan.)
CAN CIVILIAN AUTHORITIES APPOINT AND REMOVE MILITARY OFFICERS?
The military is clearly subordinate to the political leadership
and civilians appoint military officers and direct operational
activities. The government has emphasized that the military is
working to create an ethnically representative, apolitical
institution (with political rights for the individual), subject
to the constraints of the constitution and the authority of the
elected civilian government.
REDUCING MILITARY SPENDING
FEASIBILITY OF REDUCING MILITARY SPENDING:
Given the threat posed by continuing instability in Somalia, the
potential for conflict with Sudan and the requirements associated
with Ethiopia's emerging role as a participant in international
peacekeeping operations, the size of Ethiopia's
armed forces (100,000 in April 1998) just before the outbreak of
the conflict with Eritrea was appropriate. Further reductions in
defense spending were not feasible and would have been imprudent.
U.S. EFFORTS TO ENCOURAGE REDUCED MILITARY SPENDING:
The U.S. is deeply concerned by the ongoing Ethiopia-Eritrea
dispute, and has been actively involved in facilitating
negotiations for a peaceful resolution. To date, however, there
has been no settlement and it is unlikely that any outside party
could convince Ethiopia to abandon its current military build-up
before a peace agreement is signed.
COUNTRY EFFORTS TO REDUCE MILITARY SPENDING:
See above response.
HAS THE COUNTRY PROVIDED ACCURATE MILITARY SPENDING DATA TO
RELEVANT INTERNATIONAL ORGANIZATIONS AND ARMS TRANSFER DATA TO
THE UN REGISTER OF CONVENTIONAL ARMS?
The USG has urged Ethiopia to participate in international and
regional peacekeeping efforts. Their support for, and interest
in, participating in the Africa Crisis Response Initiative (ACRI)
continues, although scheduled training was canceled due to the
border dispute with Eritrea. Once that conflict is resolved,
Ethiopia is expected to continue its willingness to contribute to
peacekeeping operations. Ethiopia is a signatory to
international weapons conventions and willingly responds to its
obligations in terms of reporting. Ethiopia has never submitted
a standardized MILEX report to the UN. In 1998, Ethiopia
participated in the UN Register of Conventional Arms.
HAS THE COUNTRY PARTICIPATED IN REGIONAL TALKS TO REDUCE MILITARY
SPENDING?
Ethiopia does not participate in any regional talks aimed at
REDUCING MILITARY SPENDING.
ASSESSMENT OF MILITARY BUDGET ACCURACY
IS THE MILITARY BUDGET ACCURATE AND COMPLETE?
The published overall budget reflects available revenues as
accurately as they are known, and presents the government's best
estimate and plans for military spending. When, as happened this
year, the government suddenly overspent the military budget, the
funds were siphoned from other line items, and not paid from some
off-budget source. There is no practice of Parliament's making
supplemental military appropriations.
TO WHAT DEGREE IS THE MILITARY BUDGET TRANSPARENT?
The details of the military budget are not available to the
general public, nor are defense contacts open to discussing them.
GHANA
MILITARY SPENDING
REPORTING PERIOD: January 1 to December 31, 1998.
AMOUNT:
$56 million; $40.5 million recurrent expenditure and $15.5
million in development/capital expenditure
(2300 cedis: $1).
PERCENTAGE OF GDP:
0.73 percent of Ghana's estimated GDP of $7.659 billion.
PERCENTAGE OF BUDGET:
4.4 percent of the total budget; military recurrent expenditure
accounts for 5.9 percent of total recurrent expenditure and
military development/capital expenditure accounts for 2.6 percent
of total development/capital expenditure.
TRENDS IN REAL TERMS:
In real terms, defense spending is rising significantly and is
expected to continue to rise as the Ghana armed forces (GAF) plan
to acquire major platform items from the U.S.
ROLE OF THE ARMED FORCES
SIZE OF THE ARMED FORCES:
Approximately 7,000 people. The GAF serve in a traditional
national defense role, patrol borders, monitor coastal waters,
etc. The GAF also play an important international peacekeeping
role, with nearly one-fifth of the force currently outside the
country, primarily in Lebanon and Liberia.
COMMENTS ON ITS POLITICAL ROLE:
The GAF is officially apolitical; however, groups with political
affiliations do exist within the military, primarily associated
with the ruling party. In additional, active duty officers
routinely take secondments to political jobs.
CAN CIVILIAN AUTHORITIES APPOINT AND REMOVE MILITARY OFFICERS?
Civilian control of the military has become a widely accepted
concept in the GAF.
REDUCING MILITARY SPENDING
FEASIBILITY OF REDUCING MILITARY SPENDING:
Resources for the GAF are already extremely limited, particularly
in light of extensive Economic Community of West African States
Ceasefire Monitoring Group (ECOMOG) peacekeeping duties. Thus,
it is unlikely that any reduction in military spending is
forthcoming.
U.S. EFFORTS TO ENCOURAGE REDUCED MILITARY SPENDING:
None; indeed, the USG is actively promoting the acquisition of
U.S. excess defense articles, for which rehabilitation costs are
expected to increase GAF expenditures.
COUNTRY EFFORTS TO REDUCE MILITARY SPENDING: None.
HAS THE COUNTRY PROVIDED ACCURATE MILITARY SPENDING DATA TO
RELEVANT INTERNATIONAL ORGANIZATIONS AND ARMS TRANSFER DATA TO
THE UN REGISTER OF CONVENTIONAL ARMS?
Ghana has never submitted a standardized MILEX report to the UN.
In 1998, Ghana did not participate in the UN Register of
Conventional Arms.
HAS THE COUNTRY PARTICIPATED IN REGIONAL TALKS TO REDUCE MILITARY
SPENDING?
Ghana participated in sub-regional discussions on limitations in
the trade of small arms, but no discussions regarding reduction
of military spending exist in the region.
ASSESSMENT OF MILITARY BUDGET ACCURACY
IS THE MILITARY BUDGET ACCURATE AND COMPLETE?
The budget is accurately presented. The GAF does, however,
receive support for its peacekeeping efforts; from the U.S. and
UN, amongst others. For example, the U.S. Department of State
provided a large package of non-lethal aid to Ghana during the
1998 ACRI training.
TO WHAT DEGREE IS THE MILITARY BUDGET TRANSPARENT?
Military budget allocations are transparent as funding for the
GAF is approved by the democratically-elected parliament. The
accountability of the GAF's expenditures, however, is under no
independent or public review. The GAF has consistently refused
to provide Parliament a year-end accounting of expenses.
GUATEMALA
MILITARY SPENDING
REPORTING PERIOD: January 1 to December 31, 1998.
AMOUNT:
The proposed defense budget for calendar year 1999 is
845 million quetzales or USD 132.3 million at an exchange rate of
USD 1 equals q6.40.
PERCENTAGE OF GDP: 0.63.
PERCENTAGE OF BUDGET:
Defense spending is 4.4 percent of the national
budget.
TRENDS IN REAL TERMS:
Despite a six (6) percent nominal increase in projected defense
spending, real spending is flat, as Guatemala's inflation rate
for 1999 is projected at approximately 6 percent.
ROLE OF THE ARMED FORCES
SIZE OF THE ARMED FORCES: See classified annex.
COMMENTS ON ITS POLITICAL ROLE: See classified annex.
CAN CIVILIAN AUTHORITIES APPOINT AND REMOVE MILITARY OFFICERS?
President Arzu continues to dismiss, appoint and transfer senior
officers at will.
REDUCING MILITARY SPENDING
FEASIBILITY OF REDUCING MILITARY SPENDING: See classified annex.
U.S. EFFORTS TO ENCOURAGE REDUCED MILITARY SPENDING:
The U.S. has had only a limited relationship with the Guatemalan
military for some time and has very little leverage on defense
budget planning. We are working to strengthen the cadre of
civilian professionals trained in defense resource management so
that they will be able to produce reasonable and effective
military budgets as civilianization of national defense
increases. We continue to focus our use the E-IMET program to
achieve this. We have arranged to send the legal advisor to the
Guatemalan Congress' Defense Committee to a National Defense
University course on defense resource management in early 1999.
We have also proposed that Guatemalan universities establish
national security education programs.
COUNTRY EFFORTS TO REDUCE MILITARY SPENDING:
Within the past two years the government has significantly
reduced the military budget in accordance with the peace accords.
We expect that the government will concentrate on other pressing
issues while the army adjusts to downsizing and reorientation of
its mission. Over time, increased democratic oversight of
national security spending should help to ensure appropriate
military budgets.
HAS THE COUNTRY PROVIDED ACCURATE MILITARY SPENDING DATA TO
RELEVANT INTERNATIONAL ORGANIZATIONS AND ARMS TRANSFER DATA TO
THE UN REGISTER OF CONVENTIONAL ARMS?
Guatemala has never submitted a standardized MILEX report to the
UN. In 1998, Guatemala participated in the UN Register of
Conventional Arms. We understand that Guatemala provided a null
report to the UN Register of Conventional Arms. We do not know
if Guatemala provided accurate military spending data to relevant
international organizations.
HAS THE COUNTRY PARTICIPATED IN REGIONAL TALKS TO REDUCE MILITARY
SPENDING?
Guatemala participates actively in the Conference of Central
American Armed Forces (CFAC). It was the CFAC's headquarters in
1998 and will remain so in 1999. Among CFAC's projects is
consideration of the possibility that regional militaries could
share tasks and standardize equipment purchases to pool
increasingly scarce resources. Guatemala is also engaged in
planning its participation in the Third Defense Ministerial of
the Americas, which will promote decreased defense spending by
fostering mutual confidence and security in the hemisphere.
ASSESSMENT OF MILITARY BUDGET ACCURACY
IS THE MILITARY BUDGET ACCURATE AND COMPLETE?
See classified annex.
TO WHAT DEGREE IS THE MILITARY BUDGET TRANSPARENT?
See classified annex.
HONDURAS
MILITARY SPENDING
REPORTING PERIOD: January 1 to December 31, 1998.
AMOUNT:
The official CY 1998 national government budget allocation for
the three branches of the armed forces (army, navy, air force)
was 444.5 million Lempiras, which is equivalent to USD 32.92
million (at the exchange rate of 13.5 lps/USD).
PERCENTAGE OF GDP:
The 1998 defense budget represented 0.6 percent of GDP.
PERCENTAGE OF BUDGET:
The 1998 defense budget represented 2.9 percent of the total
CY 1998 budget.
TRENDS IN REAL TERMS:
The CY 1998 defense budget represented an increase in real terms
of 1.32 percent over CY 1997, however, when adjusted for
inflation actually represented a decrease of 12 percent.
ROLE OF THE ARMED FORCES
SIZE OF THE ARMED FORCES:
See classified annex.
COMMENTS ON ITS POLITICAL ROLE:
See classified annex.
CAN CIVILIAN AUTHORITIES APPOINT AND REMOVE MILITARY OFFICERS?
At present, the president has no constitutional authority to
appoint, promote, or remove military officers. Under the
constitution, the Congress must approve the selection of the CINC
and all promotions above the rank of major. In practice, the
CINC has been selected by a collegium of senior officers, and
rubber stamped by the Congress (as is the promotion list).
However, once the approved constitutional military reforms are
ratified in January 1999, the president will have the power
(through the minister of defense) to appoint, promote, and remove
officers.
REDUCING MILITARY SPENDING
FEASIBILITY OF REDUCING MILITARY SPENDING:
In real terms, military spending has fallen over the last several
years, and is likely to continue to be reduced following the
implementation of the constitutional reforms.
U.S. EFFORTS TO ENCOURAGE REDUCED MILITARY SPENDING:
See classified annex.
COUNTRY EFFORTS TO REDUCE MILITARY SPENDING:
The GOH has recognized the requirement for greater defense
austerity, and has reduced the military budget in real terms over
the last several years.
HAS THE COUNTRY PROVIDED ACCURATE MILITARY SPENDING DATA TO
RELEVANT INTERNATIONAL ORGANIZATIONS AND ARMS TRANSFER DATA TO
THE UN REGISTER OF CONVENTIONAL ARMS?
Military spending data has been limited to reporting the budget,
however, with the transition to civilian control, military
spending should become much more transparent. Honduras has never
submitted a standardized MILEX report to the UN. In 1998, the
GOH reported "nil" for the seven categories of the UN Register of
Conventional Arms. Honduras did submit reports to the UN
Register in 1996 and 1997, but has not submitted a report yet for
1998.
HAS THE COUNTRY PARTICIPATED IN REGIONAL TALKS TO REDUCE MILITARY
SPENDING?
Honduras continues to participate in the Central American
Security Commission (CASC), whose principal function is to
implement the 1995 Central American Security Treaty. Honduras
has also been involved in both bilateral and multilateral talks
with her neighbors, attempting to find ways of consolidating
regional security responsibilities and coordinating missions
(such as humanitarian) among all the Central American nations.
ASSESSMENT OF MILITARY BUDGET ACCURACY
IS THE MILITARY BUDGET ACCURATE AND COMPLETE?
See classified annex.
TO WHAT DEGREE IS THE MILITARY BUDGET TRANSPARENT?
As mentioned above, the military budget is not transparent, and
there is no line-by-line accounting provided by the military to
account for its expenditures. Congress approves a lump-sum
budget for the military, which neither reports to the president
nor to the Congress how the funds are actually spent. Once the
constitutional military reforms are ratified in January 1999 and
the civilian-run Ministry of Defense assumes control of the
military budget, general transparency and oversight should
improve dramatically.
[End of section]