Country survey IX: Spain

From the early 1980s Spain embarked on a wide‐ranging process of military reform, from organisational changes to defence industrial policies. Investment in military equipment was set to grow, policies were drawn up to foster the domestic defence industrial base, defence R&D rocketed, and Spain joined a myriad of international arms development programmes. Yet, by 1991 the process of reform had run out of steam. Expenditure planning proved unreliable, and firms suffered from sharp cutbacks in procurement expenditure. The model of defence industrial growth sketched in the mid‐1980s had floundered. The Spanish case provides an example of how the quest to maximise defence procurement from domestic sources can fall victim to industrial and budgetary constraints. Spanish defence producers are now becoming increasingly intertwined with foreign defence companies.     

Country survey X: Defence spending in Turkey

This paper provides a country survey of the Turkish defence economy. Turkey is a member of NATO alliance and is strategically located between Europe and Middle East. Moreover, Turkey has a high defence burden and high economic growth. The first part of the survey presents a brief economic background of Turkey, its armed forces, the defence industry, its modernisation and trends in Turkish defence expenditure. The rest of the paper focuses on the relationships between defence spending and economic growth. The effect of defence spending on economic growth is econometrically estimated using a supply side model. Both externality effects and the size effect of defence spending are estimated for Turkey. The study concludes that defence expenditure stimulates economic growth while externalities from the defence sector to the rest of economy are negative for Turkey.     

Country survey XII: South Africa

This article examines the relationship between defence expenditure and economic performance in South Africa, both prior to and after that country's first fully democratic election in 1994. Prior to 1994 defence expenditure decisions were largely dominated by non‐economic factors; since then defence spending has declined in reaction to, inter alia, the need to address a number of socio‐economic inequities.

After 1975 in particular, military industrialisation in South Africa placed a disproportionately high burden on the country's industrial resources and natural economic and technical capabilities. However, although this suggests that the opportunity cost of domestic arms production has been fairly high, the country's poor economic and development performance since the mid‐1970s is a function of underlying structural deficiencies and institutional constraints rather than the consequence of inordinately high defence spending levels.     

Why Pakistan failed: tribal focoism in Kashmir

The classical repertoire of insurgency types is under-specified, and does not apply well to the case of Pakistan's conduct of insurgency in Kashmir. Pakistan's approach to insurgency has been a consistent tribal variant of focoism, in which there is a reliance on imported itinerant insurgents to conduct raids to stimulate an uprising. This has its basis in the traditional warfare of the region, learned US insurgency doctrine in the 1960s, and an historical disregard for subject populations, which has led to an aversion to fostering grass-roots political movements.     

Homes for heroes? Assessing the impact of the UK’s Military Covenant

The British Military Covenant can be located in and from many sources and from 2011 onwards in primary legislation. This article argues that the provision of military housing amounts to an early test of how the military covenant is understood and used by those involved in defence policy, and those in the armed forces affected by it. It finds that housing was a prominent feature of how service personnel understood how they were valued, but was not explicitly understood as a covenant issue by those personnel or the officials in charge of the Defence Estates. We locate three reasons for this: (1) the covenant has been poorly translated from aspiration into policy practice, (2) the covenant is unevenly understood across its stakeholders which has the effect of generating disappointment through misaligned expectations, (3) those engaged in the reform process surrounding the Defence Infrastructure Organisation (DIO) saw the covenant as a means to energise reform. Ultimately housing was seen as a dry and technocratic business area and thus an issue ripe for being refracted through the covenant was ultimately left outside of its remit.     

Remaking the military industrial relationship: A French‐American comparison

Defense industrial complexes in leading Cold War nations have downsized and reallocated resources to other productive activities in the 1990s. In this paper, we analyze the experience of two key countries ‐ the US and France. Comparing the two countries, we find similar outcomes in budgetary retrenchment and large firm restructuring but marked differences in the pace of downsizing and diversification among small and medium‐sized firms. We hypothesize that three sets of contextual differences may explain these differences: 1) institutional differences in the way that the State bureaucracies ‐ the Pentagon and the French Délégation générale pour l'armement (DGA) ‐ oversee defense industrial matters, 2) differences in military industry ownership and firm size patterns, and 3) differences in the regional distribution of defense industrial capacity and associated regional policies. In closing, we note that the two countries’ defense industrial complexes are becoming more alike and speculate on the significance of invidious competition and interactions between them. We address briefly the future of French/American arms industrial competition and cooperation, given the trend towards transnational security arrangements and defense industry globalization     

Factors influencing military recruitment in South Africa: the voices of Cape Town high school learners

This research sets out to establish how the youth in South Africa view military service, and what factors affect the ability of the South African National Defence Force (SANDF) to attract suitable recruits to staff its modern, technologically advanced military. Due to high levels of youth unemployment, South Africa has sufficient persons volunteering for military service. The problem lies with recruiting sufficient quality personnel with the right profile and abilities. To establish what affects enlistment, focus group discussions were conducted with learners from eight schools to determine what influences their career choices, what deters them from or attracts them to military service, their perception of the military profession, their knowledge of the military, and the influence of factors such as race and gender. The conclusion is reached that the SANDF is not considered an employer of choice due to poor service conditions, a decline in the prestige of the military, unfavourable aspects associated with military culture, a growing ‘knowledge gap’ and disconnect between the military and South African society, the estrangement of certain race groups, and the masculine nature of the military. These aspects need to be addressed if the SANDF wishes to attract learners with good academic credentials.     

国防科技工业军民协同动力研究

国防科技工业军民协同动力研究旨在探寻国防科技工业军民协同的动力源泉.本文从国防科技工业军民协同动力演化和演化过程中所涉及的理论原理入手,分析军民协同动力机制的生成机理,论证国防科技工业军民协同动力演化的理论根源,推断得出国防科技工业军民协同动力生成具有\"两条路径、三个层次、五种力量\"的一般规律,认为国防科技工业军民协同...     

Rethinking Stability in South Asia: India,Pakistan, and the Competition for Escalation Dominance

India and Pakistan are currently engaged in a competition for escalation dominance. While New Delhi is preparing for a limited conventional campaign against Pakistan, Islamabad is pursuing limited nuclear options to deter India. Together, these trends could increase the likelihood of nuclear conflict. India, for example, might conclude that it can launch an invasion without provoking a nuclear reprisal, while Pakistan might believe that it can employ nuclear weapons without triggering a nuclear exchange. Even if war can be avoided, these trends could eventually compel India to develop its own limited nuclear options in an effort to enhance deterrence and gain coercive leverage over Pakistan.     

Globalisation in the defence industry: An exploration of the paradigm for us and European defence firms and the implications for being global players

This paper explores some of the key issues associated with the restructuring of the defence industry. A comparison is made between the US and the European Defence Industrial Bases in terms of the drivers for change and the paradigms within which change has taken place. Having shown that some very important differences exist, the paper then explores the approaches that have been adopted for industry consolidation and references them to the academic literature on mergers and acquisitions (M&As) and strategic alliances (SAs). Given that most of the key defence players recognise the need to be global players, the paper presents an argument that the European firms’ experience of operating with a wide range of forms of corporate alliance will serve them in good stead for operating on a global defence scale. US firms, in contrast, have focused largely on M&A activity.     

Country Survey XIII: Japan's security posture and defense industry prospects

Defense budgets in Japan have been complicated compromises from numerous inputs ‐ including threat perceptions, domestic industrial/technological base development, support for the bilateral security treaty with the United States and internal bureaucratic politics ‐ but with the fall of the former Soviet Union, the clearest justification for higher spending disappeared. Double‐digit defense spending increases that were common in the 1980s have been replaced by annual increases lower than present inflation rates, resulting in negative real growth in the country's defense budget. Domestic economic problems and consistent government pressures for smaller budgets have further slowed annual growth in total spending and have contributed to lower procurement budgets. As a result, the domestic Japanese defense industry is facing far more constrained conditions from the growth years of a decade before.

Government policymakers are examining Japan's regional security environment as well as its alliance with the United States to determine the appropriate course for the country to take in the coming years. The formal security treaty with the United States is likely to remain a major element of government positions, but other aspects of the country's overall security posture are open to debate. Perceptions of a reduced threat environment are fueling additional pressures for defense budget cuts.

The domestic defense industry seeks means to assure its survival in domestic defense markets in this constrained environment. Expansion into overseas markets to offset declining domestic markets is an option that currently is constrained by policy restrictions on arms exports. Industry is advocating re‐examination of those policies and unlike earlier years, government appears willing to respond positively but cautiously to this lobbying.     

THE EFFECTS OF THE WORLD DEFENSE INDUSTRY AND US MILITARY AID TO ISRAEL ON THE ISRAELI DEFENSE INDUSTRY: A DIFFERENTIATED PRODUCTS MODEL

This paper models the interactions between the defense industry market structure and the defense needs of Israel, the USA and Western Europe, which produce several heterogeneous defense goods. The model specifies that the defense industries of the US and Europe are ‘large’ while that of Israel is ‘small’. The US military aid to Israel is also an integral part of the model. The results show that net defense costs of Israel are minimal when the number of its defense firms is one. The model predicts that an increase in US military aid reduces Israel’s government expenditure, its defense industry’s profits and its net defense costs.