Brazilian Space Sector Historical Analysis of The Public Budget
Brazilian Space Sector Historical Analysis of The Public Budget
Brazilian Space Sector Historical Analysis of The Public Budget
Space Policy
journal homepage: www.elsevier.com/locate/spacepol
a r t i c l e i n f o a b s t r a c t
Article history: We propose a historical analysis of the Brazilian space budget based on activities. The main contribution
Received 6 July 2021 of this article is to consider Brazilian space public budget data in the context of an international clas-
Received in revised form sification that allows a better understanding of the priorities set by Brazil in its space sector over the last
6 May 2022
two decades. Brazilian space policy and activities have suffered from varying budgets ever since the
Accepted 18 May 2022
Available online xxx
inception of the space program. This follows the pattern of the Science, Technology, and Innovation
sector, but there are also issues regarding the space sector itself. Launching centers and Earth observation
are identified as the two priority areas for the Brazilian space program. One of the findings of this
Keywords:
Brazilian space program
research is that the funding for research institutions has decreased over time, which was not that clear
Brazilian budget from previous data.
Brazilian space agency © 2022 Elsevier Ltd. All rights reserved.
1. Introduction spending affects not only government decisions but also the de-
cisions of all other agents involved in the sector.
Brazilian space policy and related activities have been charac- We use an adaptation of the classification proposed by Euro-
terized by volatility since the inception of its space program. This consult [6] that enables an international comparison as well. The
follows the pattern of the Science, Technology, and Innovation Brazilian government uses its own classifications for budget and
sector in Brazil [17], but there are also issues regarding the space spending, but this is too general to allow for an analysis of the
sector itself, such as inadequate funding [10]. Budget cuts in the priorities of the space sector as well as an international comparison.
Brazilian space program have not escaped the notice of non- Thus, our main contribution to the literature is to consider Brazilian
specialized media. The Economist in 2015 noticed how the Brazilian space public budget data in the context of an international classi-
space budget for 2012e2021 was equivalent to India's three-year fication that provides a better understanding of the priorities set by
typical space expenses, while The New York Times called it a Brazil in the space sector in the last two decades.2
“dangerously underfunded program” in2004.1 In addition, as Moltz [10] recognizes, although the literature that
Although funding has increased throughout the years, volatility deals with Brazilian space activities available in English is growing,
has remained. However, there has not been any systematic effort to it remains limited. Yet, Brazil is part of a group of emerging coun-
investigate how this budget is spent and how priorities have been tries that are engaged in a new type of space policy, as Petroni and
set. The main purpose of this paper is to fill this gap in the literature. Bianchi [15] argued, in which new players and new interests are
We propose a historical analysis of the Brazilian space budget that emerging. At the same time, commercial interests are still limited
is based on the activities of its space program. This is important, as for Brazilian stakeholders as Brazil is not a very globalized economy.
Dewes, Dalmarco and Padula [5] emphasize the importance of These new interests relate mainly to small satellites, launching
government procurement for the space sector in Brazil, with large, abilities, and achieving independence from the US Global Naviga-
commissioned projects that attract the private sector. This tion Satellite Systems.
The paper is organized as follows. Section 2 offers a historical
overview of the space sector in Brazil. Next, Section 3 offers an
* Corresponding author. analysis of the budget by focusing on the Brazilian space activities.
E-mail address: [email protected] (A. Cabello).
1
The New York Times, Rohter, L., January 23rd, 2004. Brazil's Soaring Space-Age
Ambitions Are Shy of Cash and Sapped by Calamity Available at: https://www.
2
nytimes.com/2004/01/23/world/brazil-s-soaring-space-age-ambitions-are-shy-of- For more on how the Brazilian Budget relates to the planning of its space sector,
cash-and-sapped-by-calamity.html. see AEB [3].
https://doi.org/10.1016/j.spacepol.2022.101502
0265-9646/© 2022 Elsevier Ltd. All rights reserved.
Please cite this article as: A. Cabello, L.H. Michels Freitas and M. Melo, Brazilian Space Sector: Historical Analysis of the Public Budget, Space
Policy, https://doi.org/10.1016/j.spacepol.2022.101502
A. Cabello, L.H. Michels Freitas and M. Melo Space Policy xxx (xxxx) xxx
2. The space sector in Brazil also stressed the division of labor in the Brazilian sector: INPE and
the Brazilian Air Force act as prime contractors, and they subcon-
Space activities in Brazil started in the 1960s. The purpose of this tract with private companies for project development. But, as
section is to discuss the goals and briefly describe the past activities Dewes, Dalmarco and Padula [5] argued, the involvement of private
of the space program. companies in the planning of the technological development for
Concerning the goals, in addition to economic development and the space sector is still incipient due to its high dependency on
resource management, Brazil sees its space policy as important in foreign inputs. The Brazilian space agency (AEB) has also tried to
terms of security due to a possible insertion as a regional and global increase private activities with public calls for private companies to
power [4]. Nakahodo [9] stresses prestige motives for the Brazilian participate in launches (AEB [3]).
space program, while Silva [17] points out that space policy de- With the intention to explore the CLA, Brazil and Ukraine
cisions may depend on other foreign relations goals. This suggests initiated a joint venture4 called Alcantara Cyclone Space in 2003.
that the motivations for Brazil in the space sector are strongly The company would use a Ukrainian launcher to launch satellites
related to its insertion into global politics. from the CLA, but due to budget restrictions and the uncertainty
In terms of projects, results were first obtained with the related to the commercial market for launchers, the company had
development of the Sonda sounding rocket family in the 1960s and its activities interrupted in 2015.
1970s. The Sonda was a simple rocket with two stages, and the Without its own launcher, Brazil decided to restart its launcher
technology developed in this project created the basis for the next program. The SLV project was remodeled into a microsatellite
project, the satellite launch vehicle (SLV), which was an orbital launch vehicle (VLM), and its development is being done in coop-
rocket. The development of the SLV started in 1984 and it was part eration with DRL, a partner on the successful VSB-30 project. The
of the biggest mission planned by Brazil. The aim was the full VLM has experienced budget restrictions, and its development has
development of a satellite to be launched by a Brazilian launcher not finished yet. The VLM continues as a strategic project of the
from a Brazilian launching center. Brazilian Space Agency.
However, budget restrictions did not take long to affect the On February 28, 2021, the Satellite Amazonia-1 was launched
Brazilian space program. There were delays in the development from the Sriharikota Launch Center in India. This satellite is
schedule of the SLV project, and the first launch occurred in 1997. commissioned to be an Earth observation satellite that focuses on
During the third attempt, an accident occurred, as the rocket the Amazon Forest. The development started in 2001, but as it
exploded on the launch pad. The effects of this event on the Bra- occurred with other Brazilian space projects, budget restrictions
zilian space program were immense, not only in terms of the loss of affected this program as well.
life and knowledge but also in terms of the stagnation of the Brazil Regarding the private sector, Nakahodo [14] mentioned that
launcher program. private interests in space activities in Brazil were due to an in-
Today, Brazil has two launching centers: the Alcantara Launch- dustrial cluster in the city of Sa~o Jose dos Campos, where many
ing Center (CLA) and the Barreira do Inferno Center (CLBI). The CLA spin-off companies, mainly motivated by Embraer activities there,
was built at the same time as the SLV was being developed. CLA was have space and non-space business in the area. The private space
built in the city of Alcantara, located in Maranh~ ao State, in the most companies in Brazil are still few, though. These companies also
northern part of the country. It was built because the CLBI, the older have a high dependency on public procurements, which is a big
launching center, was unable to receive medium and high problem for the future of the Brazilian space program considering
launchers. The cities of Natal and Parnamirim, where the CLBI is the volatility of its public budget. It is quite common to find com-
located, have grown close to this facility, so risks associated with panies that were originally from correlated sectors, such as defense,
launching from there have increased. exploiting opportunities to take government projects in the space
Regarding satellites, the National Space Research Institute area.5 Melo and Freitas [9] estimated the rate of return of Brazilian
(INPE), the main research institute in Brazil for space activities, space projects to be between 9 and 16 times, suggesting it is a
developed their first satellite, the SCD-1, and launched it in 1993 strong driver for development of technology-intensive sectors.
with an American rocket. The SCD-2 was launched in 1998. The To conclude this section, we must also comment on the military-
CBERS Program was a product of a cooperation agreement between civilian aspect of space activities in Brazil. Space activities were
Brazil and China,3 signed in 1988, with the purpose of developing initially developed by the Brazilian Air Force, but in 1994, AEB,6 the
satellites for work in a remote sensing area. The CBERS-1 was Brazilian Space Agency, a civilian organization to coordinate these
launched in 1999, CBERS-2 was launched in 2003, CBERS-2B was activities, was created. Today, AEB is responsible for formulating,
launched in 2007, CBERS-3 was lost with the failure of the launcher coordinating, and executing the Brazilian National Policy on the
in 2013, CBERS-4 was launched in 2014, and CBERS-4A was development of space activities and the Brazilian national space
launched in 2019. program.7
While the orbital project faced various obstacles, the sounding With the creation of AEB, the organization of the sector was
rockets continued their successful development. The new version completely modified. AEB was defined as the central body of the
of the sounding rockets, called VSB-30, was developed in cooper- Brazilian space system. INPE became responsible for satellite pro-
ation with the German space agency (DLR), and there have been jects, while the Brazilian Air Force deals with its launchers projects.
several launches since 2004. The Brazilian Air Force, responsible for Together with universities and launching centers, the national
the development of the launcher program, transferred the tech- space system in Brazil is complete. However, this is still an incipient
nology of the VSB-30 to the Brazilian industry. The goal was to organizational structure. Santos and Monserrat Filho [16] stressed
enable private agents to build and explore the international market the lack of specialists and organized bodies dedicated to space
of suborbital launchers and experiments. Delgado-Lo pez [1] policy and law.
emphasized the attempt by Brazil to nationalize part of its tech-
nology and diversify partners in its projects. Melo and Freitas [9]
4
For more on BrazilianeUkrainian space agreements, see Monserrat Filho [11].
5
For more about the Brazilian space industry, see Vellasco [19].
3 6
For Sino-Brazil space cooperation, see Monserrat Filho [13], Zhao [20] and For more on the creation of AEB, see Monserrat Filho [11].
Delgado-Lopez [4]. 7
For more on the structure of AEB, see AEB [3].
2
A. Cabello, L.H. Michels Freitas and M. Melo Space Policy xxx (xxxx) xxx
Fig. 1. Total budget for space activities from 2000 to 2019; in the local currency adjusted for inflation and in PPP dollars. Source: https://www12.senado.leg.br/orcamento/sigabrasil
with World Bank PPP conversion factor.
4
A. Cabello, L.H. Michels Freitas and M. Melo Space Policy xxx (xxxx) xxx
Fig. 3. Space activities and percentage in the space budget for Brazil from 2000 to 2019. Source: https://www12.senado.leg.br/orcamento/sigabrasil with World Bank PPP con-
version factor.
Fig. 4. Budget for internal operations. Source: https://www12.senado.leg.br/ Fig. 6. Budget for Earth observation activities from 2000 to 2019. Source: https://
orcamento/sigabrasil with World Bank PPP conversion factor. www12.senado.leg.br/orcamento/sigabrasil with World Bank PPP conversion factor.
In general, Brazilian policy was strongly affected by macroeco- The main items in the Brazilian space budget were Earth
nomic conditions, and there was a prime period between 2008 and observation activities, probably due to the development and
2014. The 2003 accident also had a strong impact on the budget of launching of the CBERS series and Amazonia satellites and
some activities.
Fig. 5. Budget for launching centers from 2000 to 2019. Source: https://www12. Fig. 7. Budget for space applications from 2000 to 2019. Source: https://www12.
senado.leg.br/orcamento/sigabrasil with World Bank PPP conversion factor. senado.leg.br/orcamento/sigabrasil with World Bank PPP conversion factor.
5
A. Cabello, L.H. Michels Freitas and M. Melo Space Policy xxx (xxxx) xxx
50000000
45000000
40000000
35000000
30000000
25000000
20000000
15000000
10000000
5000000
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Science & Space Exploration - PPP
Fig. 8. Expenditure on technology from 2000 to 2019. Source: https://www12.senado. Fig. 11. Budget for science and space exploration from 2000 to 2019. Source: Brazilian
leg.br/orcamento/sigabrasil with World Bank PPP conversion factor. Space Agency e adjusted by inflation.
4. Final comments
4000000
References
3000000
6
A. Cabello, L.H. Michels Freitas and M. Melo Space Policy xxx (xxxx) xxx
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