Peru’s military budget will reportedly increase by 53 percent in 2008, with a large percentage of it intended to upgrade equipment and reinforce the country’s borders. The military’s budget will increase from about 1.7 billion soles, about $585 million, in 2007, to more than 2.7 billion soles, about $930 million, in 2008, daily La República reported.
According to the daily, the Defense Ministry will invest heavily in the military’s External Order program by reinforcing defense on Peru’s borders. The External Order program will account for 88.2 percent of the 2008 budget. In 2007 it received less than 50 percent of the budget.
The Internal Order program, which is responsible for military operations in the coca growing Alto Huallaga and Apurímac and Ene river vallies, VRAE, will receive only an additional 64 million soles, about $22 million.
Most of the new money will reportedly go to the Army, which will have a budget of 1 billion soles, about $344 million, a 301 percent increase over 2007. The Army will, among other priorities, purchase anti-tank missiles.
The Navy and Air Force budgets will also increase, however at only a fraction of the Army’s surging finances. The Navy’s 13.9 percent budget increase will reportedly be used to purchase torpedoes. The Air Force, with its 7 percent budget increase, will upgrade its equipment, including at least seven MiG-29 jet fighters.
Despite the growth in the military’s budget, Defense Minister Antero Flores-Aráoz, has denied Peru is promoting an arms race in the region. “Peru has traditionally tried to have the best relations with its neighboring countries, creating a climate of confidence and understanding,” He said. “Whatever differences there are, we subject them to the channels of international law so they can be resolved peacefully.”
He referred to Peru recently seeking an international ruling in the International Court of Justice in the Hague to settle the longstanding Peruvian–Chilean maritime border dispute.
“We are not trying to create, either in Peru or in Chile, a feeling contrary to the good relations that need to prevail,” said Flores-Aráoz. But he said Peru must be prepared for any Chilean reaction that might arise from The Hague’s ruling. “We are good, but not stupid … that doesn’t mean that we won’t take the necessary precautions for possible disputes.”
