Abstract
Within a short time span Brazil became one of the world's largest producers of defence hardware. In 1987, Brazil was the fifth largest exporter of arms worldwide and the second largest arms producer among the newly industrialised countries (NICs). This article argues that the roots of this rapid development of the Brazilian Defence Industry (BDI) lie in the vital role of multinational companies (MNCs) and in the harmonious tripod orchestrated by the Brazilian government. The State, through its interaction with the Brazilian private sector and with subsidiaries of MNCs, brought together the political support, a supply of funds, the manufacturing capability and technology that are vital in any attempt to establish an indigenous defence industry. Above all, the Brazilian government achieved the balanced coordination of these variables essential for maintaining the dynamics of the industry.
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