|Astros III Command Vehicle|
|Guarani Amphibious Personnel Carrier|
The Ministry of Defence will receive 1.527 billion reals (USD 733 million) from the Accelerated Growth Program (AGP) for defense equipment. The funds will allow the purchase of 4,170 trucks, 40 Guarani armored vehicles and 30 Astros 2020 missile launcher vehicles. The transfer of the funds was approved today (June 27), through a Provisional Measure signed by President Rousseff during a ceremony held at the Presidential Palace.Read the whole thing but check out the last paragraph...they're going to increase domestic buying to prime the pump for export orders (at least that's how I read it). Brazil obviously has plans on becoming a major player on the market. The Israel of South America when it comes to arms production must have a nice ring to them.
Overall, this program will allocate 8.43 billion reals (USD 4,046 million) in 2012, and aims to stimulate the Brazilian economy to expand investment and to generate employment and income.
The Provisional Measure referred to the National Congress frees up a budget of 6.611 billion reals that were contingent. The details of the PAC equipment were disclosed by the Minister of Finance, Guido Mantega, to justify the measures taken by the federal government to stimulate the national economy.
To cope with present economic difficulties, the government is taking steps to foster the internal market. In her speech, Rousseff also highlighted the importance of the resource allocation program to the Ministry of Defence for the purchase of equipment for the Armed Forces.
Additionally South American countries have been in an arms race of sort with many of them buying advanced weapons from the US, Europe and Russia. A domestic builder that can provide good equipment at great prices would be hard to resist. Wrap it all up in a few mutual defense treaties and you can see that this is some far reaching thinking.
Check out the AVIBRAS website here.