Offsets and the Development of the Brazilian Defence Industry
Abstract

Sam Perlo-Freeman
Middlesex University

This paper considers the extent and role of defence offsets in Brazil. It finds that defence offsets, whether under that or a different name, have been used extensively in Brazil at least since the 1970s. The evidence suggests that the focus has been not primarily on job creation or the balance of payments, but on the development of the defence industry through licensed production, co-production, and technology transfer associated with arms purchases. This is seen to have had considerable success in enabling the Brazilian industry to produce all but the most advanced weapons systems. This has been at some economic cost, however, and the viability of the industry remains highly dependant on global market conditions.