Defence Economics


Book Description

This Element introduces students, policy-makers, politicians, governments and business-people to this new discipline within economics. It presents the recent history of the subject and its range of coverage. Traditional topics covered include models of arms races, alliances, procurement and contracting, as well as personnel policies, industrial policies and disarmament. Newer areas covered include terrorism and the economics of war and conflict. A non-technical approach is used and the material will be accessible to both economists and general readers.




Economic Security: Neglected Dimension of National Security ?


Book Description

On August 24-25, 2010, the National Defense University held a conference titled “Economic Security: Neglected Dimension of National Security?” to explore the economic element of national power. This special collection of selected papers from the conference represents the view of several keynote speakers and participants in six panel discussions. It explores the complexity surrounding this subject and examines the major elements that, interacting as a system, define the economic component of national security.




Fortifying China


Book Description

Fortifying China explores the titanic struggle to turn China into an aspiring world-class military technological power. The defense economy is leveraging the country's vibrant civilian economy and gaining access to foreign sources of technology and know-how. Drawing on extensive Chinese-language sources, Tai Ming Cheung explains that this transformation has two key dimensions. The defense economy is being reengineered to break down bureaucratic barriers and reduce the role of the state, fostering a more competitive and entrepreneurial culture to facilitate the rapid diffusion and absorption of technology and knowledge. At the same time, the civilian and defense economies are being integrated to form a dual-use technological and industrial base. In Cheung's view, the Chinese authorities believe this strategy will play a key role in supporting long-term defense modernization. For China's neighbors and the United States, understanding China's technological, industrial, and military capabilities is critical to the formulation of economic and security policies. Fortifying China provides crucial insight into the impact of China's dual-use technology strategy. Cheung's "systems of innovation" framework considers the structure, dynamics, and performance of the defense economy from a systems-level perspective.




The US Defense Economy


Book Description

The United States defence economy is remarkable for a number of reasons - including sheer size. It receives a significant (albeit decreasing) share of GDP and has a significant international footprint. Its purpose is to provide the resources for national defence - against a set of complex and capable adversaries. The main players in the defence economy are households, and the Federal Government. The associated interactions determine the resources provided for national defence and their allocation among various defence needs. This Element focuses primarily on interactions between government and industrial suppliers within the institutional peculiarities of the defence marketplace. This includes the developments that have determined the course of defence industry consolidation post-Cold War. The authors also highlight the persistent gap between resources available for defence and the means to execute the National Security Strategy. Finally, they offer some tentative thoughts regarding developments likely to shape the defence economy's future.




Defense Economics


Book Description

This textbook examines the economic problems of military organizations from an institutional perspective. It discusses the efficiency and effectiveness of military performance, using a capability-based conceptualization. Constitutional, historical and economic considerations complement the analysis. Neither the analysis nor the conclusions depend on any specific armed force, culture, organization, or language. On the contrary, the challenge of defense economics analysis and armed forces management is reduced to a fundamental economic problem, and solutions to this problem are offered. This book is a must-read for students, scholars and practitioners interested in a better understanding of defense economics.




The $650 Billion Bargain


Book Description

U.S. defense spending isn’t excessive and, in fact, should continue to grow because it’s both affordable and necessary in today's challenging world. The United States spends a lot of money on defense—$607 billion in the current fiscal year. But Brookings national security scholar Michael O'Hanlon argues that is roughly the right amount given the overall size of the national economy and continuing U.S. responsibilities around the world. If anything, he says spending should increase modestly under the next president, remaining near 3 percent of gross domestic product. Recommendations in this book differ from the president's budget plan in two key ways. First, the author sees a mismatch in the Pentagon’s current plans between ends and means. The country needs to spend enough money to carry out its military missions and commitments. Second, O'Hanlon recommends dropping a plan to cut the size of the Army from the current 475,000 active-duty soldiers to 450,000. The U.S. national defense budget is entirely affordable—relative to the size of the economy, relative to past levels of effort by this country in the national security domain, and relative, especially, to the costs of failing to uphold a stable international order. Even at a modestly higher price, it will be the best $650 billion bargain going, and a worthy investment in this country’s security and its long-term national power.




Buying Military Transformation


Book Description

In Buying Military Transformation, Peter Dombrowski and Eugene Gholz analyze the United States military's ongoing effort to capitalize on information technology. New ideas about military doctrine derived from comparisons to Internet Age business practices can be implemented only if the military buys technologically innovative weapons systems. Buying Military Transformation examines how political and military leaders work with the defense industry to develop the small ships, unmanned aerial vehicles, advanced communications equipment, and systems-of-systems integration that will enable the new military format. Dombrowski and Gholz's analysis integrates the political relationship between the defense industry and Congress, the bureaucratic relationship between the firms and the military services, and the technical capabilities of different types of businesses. Many government officials and analysts believe that only entrepreneurial start-up firms or leaders in commercial information technology markets can produce the new, network-oriented military equipment. But Dombrowski and Gholz find that the existing defense industry will be best able to lead military-technology development, even for equipment modeled on the civilian Internet. The U.S. government is already spending billions of dollars each year on its "military transformation" program-money that could be easily misdirected and wasted if policymakers spend it on the wrong projects or work with the wrong firms. In addition to this practical implication, Buying Military Transformation offers key lessons for the theory of "Revolutions in Military Affairs." A series of military analysts have argued that major social and economic changes, like the shift from the Agricultural Age to the Industrial Age, inherently force related changes in the military. Buying Military Transformation undermines this technologically determinist claim: commercial innovation does not directly determine military innovation; instead, political leadership and military organizations choose the trajectory of defense investment. Militaries should invest in new technology in response to strategic threats and military leaders' professional judgments about the equipment needed to improve military effectiveness. Commercial technological progress by itself does not generate an imperative for military transformation. Clear, cogent, and engaging, Buying Military Transformation is essential reading for journalists, legislators, policymakers, and scholars.




The Political Economy of Defence


Book Description

A contemporary and comprehensive analysis of national and supranational defence governance in an uncertain and increasingly dangerous world. This book will appeal to policymakers, analysts, graduate students and academics interested in defence economics, political economy, public economics and public policy.




Defense Conversion


Book Description

This text examines the need to convert the defence industry from an inefficient and non-competitive part of the US economy to an integrated, civilian/military operation. The author defines the challenges, especially the influence of old-line defence interests and presents examples of restructuring. Gansler discusses growing foreign involvement, lessons of prior industrial conversions, the best structure for the next century, current barriers to integration, a three-part transformation strategy, the role of technological leadership, and the critical workforce. He concludes by outlining sixteen specific actions for achieving civil/military integration.




Defense Spending And Economic Growth


Book Description

This book examines the impact defense spending has on economic growth. While defense spending was not deliberately invented as a fiscal policy instrument, its importance in the composition of overall government spending and thus in determining employment is now easily recognized. In light of the collapse of the Soviet Union and the consequent reduction in the threat to the security of the United States, maintaining defense spending at the old level seems indefensible. The media has concentrated on the so-called peace dividend. However, as soon as the federal government is faced with defense cuts, it realizes the macroeconomic ramifications of such a step. Based on studies included in this volume, we examine the effects of defense spending on economic growth and investigate how the changed world political climate is likely to alter the importance and pattern of defense spending both for developed and developing countries.