MercoPress. South Atlantic News Agency

South America's defence expenditure lowest in the world.

Latinamerica is the world's region that less spends on defence as percentage of GDP, according to a report on the Military Balance of South America to be released this week in Buenos Aires and Quito, Ecuador.

The report based on information from the United Nations Economic Committee for Latinamerica and the Caribbean, International Monetary Fund and London based International Institute for Strategic Studies, based on the latest available data from 2002, shows that the world spent 842,7 billion US dollars in defence of which South America 19,4 billion representing 2,3%.

Of this sum 11,3 billion correspond to Mercosur and to the rest of South America 8,1 billion representing 0,97% of total world expenditure. This means that for every 1,000 US dollars spent on defence in 2002, South America contributed with 23 US dollars.

The release of the report coincides with the beginning this Tuesday of the Americas Defence Ministers meeting in Quito where 34 representatives, including US Secretary Donald Rumsfeld will be discussing regional security with special emphasis on terrorism and drugs trade.

Using IMF economic development criteria, the most developed countries of the world spent 2,2% of GDP in defence. The Group of most Industrialized Nations or G-7, 2%; newly industrialized nations in Asia 3,6% and other developed economies 2,3%.

In developing countries Africa and Asia spent 3,2%; Middle East and Turkey 6,6% and the 33 countries of Latinamerica (excluding US and Canada) 1,6% of GDP.

In South America, Surinam tops the list with 5% and Ecuador with 3,64% and at the other extreme Guyana 0,7%, Paraguay 1,3% and Argentina 1,2%. Brazil and Chile are above the average with 2,10%, and similarly Colombia 2,12%, but does not include foreign aid to combat guerrilla and the drug trade.

As to per capita expenditure, the average for South America is 46 US dollars with Chile top of the list with 91 US dollars followed by Uruguay, 51,82 and Brazil 51,55. It is estimated that in 2002 the world had 20,5 million military in active service, 4,67% from South America (955,640); that is 47 out 1,000 at world level.

The almost one million servicemen in active duty in South America represent 0,26% of the total region's population of 360,3 million. Above the regional average are Uruguay 0,71%; Chile 0,49%; Ecuador and Colombia 0,45% with the lowest, Brazil 0,16% and Argentina 0,19%.

As to the expenditure per serviceman, Brazil figures with 31,705 US dollars; Argentina 21,118: Chile 18,564; Venezuela 13,501 and Ecuador 10,731 US dollars.

The defence outlay in the twelve South American countries which represents 2,31% of total world military expenditure, is equivalent to 5,9% of the US defence budget.

Brazil has the largest military budget of the area but only 30% in force numbers meaning the country invests heavily in defence research and technology development.