The new system, called the Fondo Plurianual de Capacidades Estratégicas (Multi-Year Strategic Capacities Fund) is controlled by Chile’s Congress and does not depend on variations in the price of copper. It also envisions multi-year budgets and follows a defence policy determined by requirements and strategic guidelines – all of which require Congressional approval. Investments are calculated over rolling four-year tranches within eight-year windows, and each year’s budget, when sent to Congress, must include a projection for the following four years. In addition, a Fondo de Contingencia Estratégico (Strategic Contingency Fund) was created, to make purchases of equipment or major repairs in the event of unforeseen crisis or natural catastrophe. In 2020, Chile’s defence budget amounted to $3 billion. For 2022, Congress has only authorised $2.4 billion, of which $794 million is earmarked the Army, $588 for the Navy and $369 for the Air Force. The balance is allocated to the Joint Staff and organisations within the Defence Ministry. This means a dramatic decrease of 20 % in just two years. Army Programmes After modernising its fleet of armoured vehicles, with the arrival of Leopard 1 and 2 tanks, M109 self-propelled artillery, plus Marder, AIFV-B and YPR-765 tracked armoured vehicles, the service still operates some 200 Mowag Piranha 6x6 and 22 8x8 vehicles. It now seeks to modernise the Leopard 2s and M109s, having retired most of the Leopard 1s or allocated them to secondary tasks. For the Leopard 2A4, M109 and Marder 1A3, the Army established the Proaco project with the Army-owned company FAMAE which selected Elbit Systems, OIP Land Systems and Aselsan to provide the required systems. While Aselsan will provide new communication systems for all types, Elbit is to modernise the fire control systems for the Leopards, while OIP will modernise both observation and sighting systems for the Marder fleet. The M109 will also receive the Nekulpan system, developed by Desarrollos de Automatización (DESA) and FAMAE in Chile. The system is already operational with the LAR 160mm rocket system, which uses a MAN 6x6 truck. Currently, the force and FAMAE are working on development of the prototypes as a first step in the modernisation programme. Meanwhile, in 2021, the Army developed the Tralcan 70mm MRS, mounted on a Leopard 1V chassis and projecting prototype test for year end. Over the past 25 years, the Chilean armed forces have experimented with one of the biggest, and simultaneously most efficient modernisation programmes in Latin America, enhancing its claim to being a leading regional power. Now, it has to keep maintain that progress, at a time when the economy and politics are combining to make life harsher for the military. Since the 1990s, Chile’s armed forces have developed a very extensive and efficient modernisation plan, evolving from an organisation with old, obsolete equipment to one of the most modern and better equipped forces in Latin America. While most other countries in the region are now well behind the capabilities of Chile – especially its three immediate neighbours, Argentina, Bolivia and Peru – the country now faces a challenge, as it needs to maintain its forces at a similar level to that attained over the past decade. Political and Economic Changes The country faces a political crisis that is shifting the internal balance of power towards parties ideologically opposed to the development of military capabilities. A new government, emerging from the socialist end of the political spectrum, has appointed as Defence Minister one Maya Fernández Allende – the granddaughter of Salvador Allende, the Chilean President overthrown by a coup led by Gen August Pinochet in 1973. This dramatic shift is accompanied by the creation of a new constitution for the country, the results of which, to be presented in the second half of 2022 and submitted to a plebiscite, are uncertain, to say the least. At the same time, however, fears that the newly-installed President, Gabriel Boric, may veer towards the extreme left seems to be unfounded. At the very least, it appears he may have realised the necessity to tone down the rhetoric in order to be able to govern. Also, the Chilean economy, severely hit, as most countries, by the pandemic, recovered well in 2021, growing 11.8% (after falling 6% in 2020), while the World Bank expect growth of 2.2% in 2022. This is good news for the military, especially the Air Force, which saw its principal programme, modernisation of the F-16 fleet, halted by the crisis in 2020. However, there is no certainty that the new government will maintain the current levels of defence investment. The underlying financial authorisation system, in place since July 2019, is subject to modification by government, whereas the previous systems, based on a percentage of the sale of copper, was inviolate. 28 · MT 2/2022 Nations in Focus Santiago Rivas Trying to Maintain the Pace of Modernisation Chile’s Armed Forces in 2022 The Air Force will continue to operate its F-5s, modernised in the 1990s, till around 2030, training fighter pilots who will then transition to the F-16. (Photo: Santiago Rivas)
RkJQdWJsaXNoZXIy MTM5Mjg=