MODIFICACIONES AL CÓDIGO TRIBUTARIO LEY Nº 6.402 Y MODIFICATORIAS

tenderers must submit an AIC Plan, demonstrating how they intend to maximize opportunities for Australian companies.

The Global Supply Chain (GSC) program, designed to ◊

assist entry by Australian defence industry into global supply chains of multinational primes. The program will establish agreements with multinational primes, called GSC Deeds, which will actively facilitate opportunities for Australian industry to compete in the primes’ global supply chains and that of their major suppliers.

Defence Export Unit (DEU) aims to assist Australian ◊

defence companies to access export markets and global supply chains and thus broaden their customer base. The access to export markets, helps to sustain key defence industry capabilities which are otherwise unviable due to small, irregular or cyclical demand in strategic items. [Source: Defence Material Organization, Department of Defence, Australian Government]. Industry Skilling Program Enhancement (ISPE) ◊

package includes initiatives to expand the pool of skilled people; enhance work and career pathways in the sector and address specific defence industry capability skills gaps.

Defence industry innovation centers function as a part ◊

of a larger SME upskilling program run by the Department of Innovation, Industry, Science and Research. Defence SMEs are provided expert advice and facilitation, and in some cases grants.

Brazil has promoted local industry through a strict enforcement of technology transfer and offset contracts with foreign suppliers. In less than twenty years Brazil has become one of the ten largest exporters of conventional armaments in the world. With the state acting as the technological agent and ambassador to external markets, firms in the industry have become innovators of internationally competitive armaments systems. Whenever Brazil purchases arms, it demands with it the transfer of technological knowledge. The four conventional submarines and the 50 helicopters Brazil is buying from France will be manufactured in Brazil. The same will happen with a purchase of 30 fighter jets. UNASUR guarantees Brazil the Latin American market and the agreement with the French gives Brazil the

exclusive access to the sale of the technology in the South American market.

The National Defence Strategy, adopted in 2008, seeks to establish the basis for an arms industry, with the long–term expectation of turning Brazil into an exporter of military technology21_{. The document} extends its time scale to the year 2030 and encompasses short–, medium–, and long–term plans and projections in order to ‘modernize the national defence structure.’ It stresses the ‘development of independent technology’ with the objective of ‘progressively eliminating the purchase of imported products and services.’ It asks the state to help support private arms firms and those still unprofitable but vital components of an industry in development22_.

Rather than being forced, by military control, to produce highly sophisticated weapons systems, Brazilian defence firms have received support to develop products which cater to an international demand for conventional armaments which occupy a niche just below the technological frontier defined by the superpowers. The partnership between the state and the firm allows the firm to choose a product which is viable economically, given the scientific and technological resources available in Brazil23_.

Turkey is another country with an aggressive strategy for sectoral development in defence. The Undersecretariat of the Defence Industry (UDI) was formed with the objective of making maximum use of the domestic industry infrastructure, directing and encouraging new advanced technology investments, providing capital contributions and cooperation with foreign technology and ensure domestic production of all kinds of weapons, vehicles and equipment needed. The ‘2009–2016 Sectoral Strategy Document’, was published by the Undersecretariat in order to lead the defence industry, towards a pre–planned direction in terms of critical product needs and research imperatives. The document also includes aims and goal 21. “Brazil, an Aspiring Power Strengthening Its Defense Industry” sourced from http://www.dialogo–americas.com/en_GB/articles/ rmisa/features/around_the_world/2010/10/27/feature–01

22. “Brazil — Becoming an arms producer power”, Published in War Profiteers’ News, August 2010, No. 25

23. “Public–Private Partnership; Lessons from the Brazilian Armaments Industry” by Patrice Franko–Jones, University of Notre–Dame

under the general strategies for Sub–sector strategies; Land, Air, Navy, Electronic warfare and sensors, Battle Electronic Information Systems and Missile, Ammunition and Weapon Systems. In accordance with these aims and

goals, possible investment items have been presented to Turkish defence industry, including support for private R&D, SME consultancy centres, creation of production clusters aviation, marine sectors etc.

Almost all countries have established big or small military industrial complexes. They are important from a purely economic standpoint of reducing cost of acquisition and maintenance for the forces. More importantly, they are instruments of foreign policy. Nations use military imports and exports as negotiable levers, and countries with large, self–sufficient bases have that much more leverage at the table.

Like any other country, India has unique requirements and constraints, and it will be a futile exercise to design

a hypothetical defence industrial structure, purely from a pastiche of examples from around the world. That being true, it is still worthwhile to study examples of success and failure, in order to see pointers of what can be done here. The following section will attempt to apply some of the lessons learnt here. It will lay out some key ideas that are common to several defence establishments and re–design them with an Indian perspective.