Colombia is expected to spend US$97.5 billion on defense during 2013–2017 to counter both internal and external threats
London, August 16th, 2012 – The total defense expenditure of Colombia, which was estimated at US$10.5 billion in 2008, increased at a CAGR of 8.81% during the review period (2008-2012) to reach US$14.7 billion by 2012. The Colombian police force received an average of 24% of the total defense budget during the review period. Strategic Defence Intelligence estimates that Colombia’s defense expenditure as a percentage of its gross domestic product (GDP) will rise from 3.9% in 2012 to 4.8% in 2017. This translates to a budget increase from US$14.7 billion in 2012 to US$23.4 billion in 2017 (reference graph below).
London, August 16th, 2012 – The total defense expenditure of Colombia, which was estimated at US$10.5 billion in 2008, increased at a CAGR of 8.81% during the review period (2008-2012) to reach US$14.7 billion by 2012. The Colombian police force received an average of 24% of the total defense budget during the review period. Strategic Defence Intelligence estimates that Colombia’s defense expenditure as a percentage of its gross domestic product (GDP) will rise from 3.9% in 2012 to 4.8% in 2017. This translates to a budget increase from US$14.7 billion in 2012 to US$23.4 billion in 2017 (reference graph below).
The Colombian Ministry of Defense acknowledged that cocaine smugglers and leftist rebels had infiltrated the senior levels of the Colombian army, impeding efforts to defeat guerrilla organizations and combat the drug trade. Indeed, the army discovered classified military information in computer files of guerrillas from the FARC rebel group, which led the Ministry of Defense to believe that senior military officials may be sharing information in exchange for bribes. In another incident, Diego Montoya, who is the perceived head of the Norte del Valle cartel and has been accused of exporting hundreds of tons of cocaine to the US, is believed to have recruited army officers to provide him with protection and help his brother, Eugenio Montoya, to escape from a high-security prison.
The total Colombian defense budget was US$11 billion in 2009, of which only US$1.5 billion was allocated for capital expenditure purposes. Currently, domestic defense firms meet the majority of defense requirements in the low technology area, while foreign procurement is undertaken when the adequate sophistication and technology is not available in the domestic market. Many foreign OEMs consider such a low level of defense expenditure as an unfavorable condition in which to enter the Colombian defense industry. Furthermore, the Colombian government does not currently allow foreign investment in its defense industry, which further prevents foreign OEMs from entering the industry.
The volume of Colombian defense imports growth has seen fluctuation over the last five years, except for 2008, when imports declined due to the global economic crisis. Historically, the US and Israel have been the major arms supplying countries to Colombia, which is expected to continue over the forecast period (2013-2017) due to the strong diplomatic relations between these nations. The majority of imports are aircraft, a trend that is expected to continue over the forecast period. Defense-related exports from Colombia are minimal, as the country does not have the sufficient technology or the manufacturing capability required to operate a significant defense export market. The country’s domestic defense industry largely caters to low-technology defense products, such as grenades, machine guns, rifles, aircraft parts, and MRO activities.
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