The 2010 Winter Olympic Games held in Vancouver in February 2010 put Canada under the world's sporting and security spotlight ' setting standards for a several sporting events, most notably the FIFA World Cup Finals being held in South Africa. More than 100 Canadian government agencies were involved in border security and measures to protect the events from terrorism, including nonconventional attacks. The Olympics cost the government CAD900mn (US$720mn) and was the country's biggest ever and most expensive security operation. Meanwhile, in March, Prime Minister Stephen Harper announced a five-year package of spending cuts amounting to CAD17.6bn, which will mean reduced expenditure on defence, international aid and government operations. The cuts are designed to make Canada the first G7 country to wipe out its deficit resulting from the global financial crisis. Defence and foreign aid spending cuts will make up at least a third of the savings, which are to last until 2015, but military spending cuts will not kick in until after the withdrawal of Canadians from Afghanistan in 2011. In effect, defence spending will increase but, as finance minister Jim Flaherty succinctly put: 'More slowly.' However, the spending cuts are likely to endanger expenditure plans for several programmes ' including offshore patrol vessels and aircraft and the replacement of aged naval destroyers, supply ships and fighter aircraft. According to Vice Chief of Defence Staff, Vice-Admiral Denis Rouleau, the military is working on a 'mitigating strategy' to take the slowdown into account but could not confirm planned capital investments, such as replacement of CF-18 fighters ' expected to cost many billions of dollars ' will be affected. The reduction in spending coincided with the publication of a report on Military Procurement published in March 2010 by the Canadian Association of Defence and Security Industries (CADSI), which outlined recommendations for improvements to military procurement to enable effective spending on defence during the current difficult economic period. In industry news, General Dynamics Land Systems-Canada continues to supply vehicles for the allimportant MRAP (Mine Resistant Ambush Protected) programme for the Afghan theatre. In February 2010, a CAD227.4mn contract was awarded from US Marine Corps Systems Command (MCSC) to supply 250 RG-31 Mk5E vehicles, while a USD$29.2mn contract was also granted from the MCSC to supply 127 TAK-4 independent suspension kits for RG-31Mk5EMs already delivered.
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Canada Defence and Security Report Q2 2010
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Canada Defence and Security Report Q2 2010
Published on April 2010
Report Summary
The 2010 Winter Olympic Games held in Vancouver in February 2010 put Canada under the world's sporting and security spotlight '
setting standards for a several sporting events, most notably the FIFA World Cup Finals being held in South Africa. More than 100
Canadian government agencies were involved in border security and measures to protect the events from terrorism, including
nonconventional attacks. The Olympics cost the government CAD900mn (US$720mn) and was the country's biggest ever and most
expensive security operation.
Meanwhile, in March, Prime Minister Stephen Harper announced a five-year package of spending cuts amounting to CAD17.6bn,
which will mean reduced expenditure on defence, international aid and government operations. The cuts are designed to make
Canada the first G7 country to wipe out its deficit resulting from the global financial crisis. Defence and foreign aid spending cuts will
make up at least a third of the savings, which are to last until 2015, but military spending cuts will not kick in until after the withdrawal
of Canadians from Afghanistan in 2011. In effect, defence spending will increase but, as finance minister Jim Flaherty succinctly put:
'More slowly.'
However, the spending cuts are likely to endanger expenditure plans for several programmes ' including offshore patrol vessels and
aircraft and the replacement of aged naval destroyers, supply ships and fighter aircraft. According to Vice Chief of Defence Staff,
Vice-Admiral Denis Rouleau, the military is working on a 'mitigating strategy' to take the slowdown into account but could not confirm
planned capital investments, such as replacement of CF-18 fighters ' expected to cost many billions of dollars ' will be affected. The
reduction in spending coincided with the publication of a report on Military Procurement published in March 2010 by the Canadian
Association of Defence and Security Industries (CADSI), which outlined recommendations for improvements to military procurement
to enable effective spending on defence during the current difficult economic period.
In industry news, General Dynamics Land Systems-Canada continues to supply vehicles for the allimportant MRAP (Mine Resistant
Ambush Protected) programme for the Afghan theatre. In February 2010, a CAD227.4mn contract was awarded from US Marine
Corps Systems Command (MCSC) to supply 250 RG-31 Mk5E vehicles, while a USD$29.2mn contract was also granted from the
MCSC to supply 127 TAK-4 independent suspension kits for RG-31Mk5EMs already delivered.
Table of Content
Executive Summary ..........5
SWOT Analysis .6
Canada Security SWOT ......... 6
Canada Defence Industry SWOT ............ 7
Canada Political SWOT ......... 8
Canada Economic SWOT ...... 8
Global Political Outlook, 2010 ...............9
Table: Election Timetable, 2010 ............. 9
The United States ....... 15
Latin America ............ 16
Europe ... 17
Middle East ................ 19
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Africa ..... 20
Asia ........ 21
What Could Surprise Us In 2010' ........ 22
Political Overview ............24
Domestics Politics ..... 24
Canada's Security Risk Analysis ........27
Developed States Security Risk Ratings 27
Table: Developed States Security Risk Ratings .... 27
Table: Developed State Terrorism Vulnerability To Terrorism Index ........ 28
Canada's Security Risk Ratings ............ 28
City Terrorism Rating 29
Table: BMI Americas City Terrorism Index ......... 30
Security Risk Analysis ....32
External Security Situation .. 36
Armed Forces And Government Spending .38
Armed Forces ............ 38
Table: Regional Armed Forces, 2008 (including conscripted, '000 personnel) ... 38
International Deployments ... 41
Table: Foreign Deployments ................ 42
Weapons Of Mass Destruction .............. 42
Market Overview ..............44
Arms Trade Overview 44
Industry Trends And Developments ...... 45
Procurement Trends And Developments .... 47
Industry Forecast Scenario 50
Armed Forces ............ 50
Table: Canadian Armed Forces, 2007-2014 ('000 personnel) . 50
Government Expenditure On Defence Industry .... 51
Table: Canadian Government Defence Expenditure, 2007-2014 ............... 52
Macroeconomic Outlook ...... 54
Table: Canada ' GDP Contribution To Growth, 2007-2014 55
Table: Canada's Long-Term Macroeconomic Forecasts, 2012-2019 ........ 56
Company Profiles ............57
CAE ....... 57
Lockheed Martin ........ 58
L-3 Communications .. 59
Raytheon Canada Limited .... 60
Country Snapshot: Canada Demographic Data ...........61
Section 1: Population . 61
Table: Demographic Indicators, 2005-2030 ........ 61
Table: Rural/Urban Breakdown, 2005-2030 ....... 62
Section 2: Education And Healthcare ... 62
Table: Education, 2000-2003 ............... 62
Table: Vital Statistics, 2005-2030 ......... 62
Section 3: Labour Market And Spending Power .. 63
Table: Employment Indicators, 2001-2006 63
Table: Consumer Expenditure, 2000-2012 (US$) 64
Table: Average Annual Manufactuing Wages, 2000-2012 .... 64
BMI Methodology ............65
How We Generate Our Industry Forecasts 65
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Defence Industry ........ 65
City Terrorism Rating 66
Table: Methodology ... 68
Sources ....... 69
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