Subscribe free to our newsletters via your
. 24/7 Space News .




MILPLEX
Unspent billions of Chilean defense fund remain a mystery
by Staff Writers
Santiago, Chile (UPI) May 21, 2013


disclaimer: image is for illustration purposes only

More than $4 billion of cash reserved for Chilean military procurement remains unspent because of mysterious workings of funding arrangements between the Latin American country's state mining sector, the government and the armed forces.

Chilean law entitles the military to 10 percent of the proceeds of copper exports. Repeated government efforts to get rid of the law, entrenched in the 1880s and amended many times, haven't managed to achieve a clean transition.

The military copper fund accumulated under law No. 13.196 is said to total more than $4 billion but continued wrestling between government and Parliament has meant the money remains largely unspent.

The fund received at least $1.27 billion in 2012 and $1.49 billion in 2011 as its share of the proceeds from Chile's copper sales, data from state mining company Codelco indicated.

The current total of the copper fund could be $4.2 billion, Infodefensa said on its website.

"Politics have a way of frustrating defense spending, even when there's plenty to go around. The government faces pressure to spend more on education, and reconstruction from the massive 2010 earthquake remains a big project," the Chile defense blog said on its website.

Former President Michele Bachelet tried to wrest control of the copper fund and handed it over to the Finance Ministry in 2009. President Sebastian Pinera followed up with more measures in 2011 to expedite the fund's transfer. But the process remains snagged by bureaucracy, military resistance and politics.

As a result, the so-called Restricted Law on Copper and its effect on copper funds remains shrouded in secrecy with neither the government nor congress seen able to access the cash, much less take control of allocations made independently by the army, navy and the air force, analysts said.

Until the fund is fully under parliamentary oversight, opposition critics say, Chile cannot call itself a true democracy.

Although the military is said to receive the copper funds in separate accounts for the army, air force and the navy, those accounts remain outside parliamentary oversight. Officials say some but not all of the hurdles have been crossed and a breakthrough is likely.

The Chilean military's attempts to procure defense equipment in turn have been thwarted in the struggle to pry open the secret copper fund accounts to parliamentary scrutiny.

Government intentions on military cash outlays remain unclear. Officials announced plans to spend $7 billon-11 billion on defense through 2025. More recently officials revised those estimates downward, indicating the government would spend more on education.

Pinera has suffered in approval ratings because of student riots over slow progress in education reforms. There's now greater urgency to implementing education reforms to prevent another outbreak of student protests that lead to unpopular confrontations with police and security forces.

Chile's structured education has been criticized for benefiting a wealthy minority and increasing the debt burden on middle class and low-income families wanting higher education for their children.

Pinera is also having to grapple with reduced earnings from copper exports as prices of the metal continue to decline, forcing Codelco to cut back on output and exports. China's economic slowdown was blamed for the shortfalls in anticipated earnings.

Declining copper exports have also increased pressure on Pinera to be more decisive in completing control of the military's copper fund and for more transparency in funding allocation for defense spending.

.


Related Links
The Military Industrial Complex at SpaceWar.com
Learn about the Superpowers of the 21st Century at SpaceWar.com






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





MILPLEX
Kerry to help ink $2.1 bln defense deal in Oman
Shannon, Ireland (AFP) May 20, 2013
US Secretary of State John Kerry will help ink a major estimated $2.1 billion proposed deal with Oman to supply a US-made air-defense system to the Gulf nation, officials said Tuesday. One of the main focuses of Kerry's trip to Muscat was to applaud the signing of a letter of intent between Oman and US manufacturer Raytheon ahead of talks on the final contract, they told reporters traveling ... read more


MILPLEX
Moon being pushed away from Earth faster than ever

Bright Explosion on the Moon

NASA says meteor impact on the moon glowed like a star

Where on Earth did the moon's water come from

MILPLEX
Mars Rover Opportunity Examines Clay Clues in Rock

Opportunity Rides Into History For Offworld Drive

NASA Mars Rover Curiosity Drills Second Rock Target

Mars Icebreaker Life Mission

MILPLEX
Desert Tests Pave Way for Human Exploration of Small Bodies

Russia designs reusable spacecraft good for as many as five missions

British astronaut 'Major Tim' to fly to ISS

Danish Space Venture ready for lift off

MILPLEX
China launches communications satellite

On Course for Shenzhou 10

Yuanwang III, VI depart for space-tracking missions

Shenzhou's Shadow Crew

MILPLEX
Next destination: space

Russia to Send 'Stress-Relief' Software to ISS

Mice, gerbils perish in Russia space flight

Star Canadian spaceman back on Earth, relishing fresh air

MILPLEX
O3b Networks Launcher and payload integration are underway at Kourou

Arianespace underscores strong partnership with Japan during Tokyo meetings

O3b Networks' initial satellite is fueled for Arianespace's upcoming Soyuz launch from the Spaceport

Ariane Flight VA214's launch vehicle marks a preparation milestone

MILPLEX
Critical Kepler Reaction Wheel Fails: Mission End In Sight

Sifting Through the Atmosphere's of Far-Off Worlds

New Method of Finding Planets Scores its First Discovery

Team Takes Part in Discovering New Planet

MILPLEX
3-D modeling technology offers groundbreaking solution for engineers

NASA Seeks High-Performance Spaceflight Computing Capabilities

SPUTNIX is granted a license for space activity

Stanford Engineers' New Metamaterial Doubles Up on Invisibility




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement