DESIGNING A VIABLE PREDICTION MARKET TO FORECAST DEFENSE ACQUISITION COST AND SCHEDULE OUTCOMES

This paper is the first to demonstrate a viable prediction market that successfully forecasts defense acquisition cost and schedule outcomes, and to provide insights for defense executive decision‐making. Already used in private industry, prediction markets can also accurately forecast outcomes and their associated risks for government programs. Using virtual money, prediction markets allow traders to ‘bet’ on some future outcome. This market mechanism turns out to be a relatively simple and accurate way to discover, aggregate, and communicate to a defense executive the collective market’s beliefs about the likelihood of an eventual outcome of an acquisition program of interest.     

INTEGRATING NUCLEAR WEAPONS STOCKPILE MANAGEMENT AND NUCLEAR ARMS CONTROL OBJECTIVES TO ENABLE SIGNIFICANT STOCKPILE REDUCTIONS

In his 2009 Prague speech and the 2010 Nuclear Posture Review, President Barack Obama committed the United States to take concrete steps toward nuclear disarmament while maintaining a safe, secure, and effective nuclear deterrent. There is an inherent tension between these two goals that is best addressed through improved integration of nuclear weapons objectives with nuclear arms control objectives. This article reviews historical examples of the interaction between the two sets of objectives, develops a framework for analyzing opportunities for future integration, and suggests specific ideas that could benefit the nuclear weapons enterprise as it undergoes transformation and that could make the future enterprise compatible with a variety of arms control futures.     

From combat to non-combat action

This paper examines the rationale and centrality of private military and security companies (PMSCs) in humanitarian assistance operations in Sudan, asking why PMSCs are involved in humanitarian assistance operations in Sudan and what the principles underlying their activities are. To answer this question, the paper draws attention to the link between humanitarian crises and PMSC interventions. Where there is no meaningful alternative intervention, undergirded by humanitarian concerns that are also profit driven, PMSCs come in to provide the needed services. The protracted and complicated internal armed conflicts in Sudan, which have lasted for over two decades, have produced as many as 4,8 million internally displaced persons (IDPs) – the single largest number in the world. The kind of humanitarian assistance operations provided by PMSCs in Sudan have become critical to the provision of much-needed services which were inadequately provided by governmental authorities at both unilateral and multilateral levels. This paper argues that the humanitarian crises in Sudan created a regime that permits humanitarian assistance operations by both state and non-state actors.     

Icons Off the Mark

In two landmark articles, longtime scholars Kenneth N. Waltz and Thomas C. Schelling have re-emphasized the utility of nuclear deterrence over nuclear nonproliferation (Waltz) and nuclear disarmament (Schelling). While the thrust of the articles is seemingly different, both are rooted in the same intellectual ground: an epistemology that assumes problem-free inferences, drawn from past experiences, are applicable in future scenarios; a foundational rooting in strategic rationality that entangles them in unsolvable contradictions concerning comparable risks of different nuclear constellations, namely deterrence versus proliferation and disarmament; and a bias in framing the empirical record that makes nuclear deterrence more conducive to security than nuclear disarmament. The common normative-practical denominator, then, is to let a nuclear weapon-free world appear both less desirable and less feasible than it might actually be.     

Patents and Dual-use Technology: An Empirical Study of the World's Largest Defence Companies

Abstract

This paper examines the generation of technological knowledge by leading companies in the defence industry. In particular, we test whether the characteristics of large defence companies are related to both the production of different types of patents (civilian, military and mixed), and the generation of dual-use technologies. To explore these links, we rely on economic data for the top 100 defence companies from the Stockholm International Peace Research Institute database, and patent information from the Worldwide Patent Statistical Database. Our results show that the relationship between the production of civilian patents and the size of the company is positive and significant. However, this relationship does not hold for the production of military patents. Furthermore, the military commercial profile is unrelated to the generation of military patents. Regarding the involvement in dual-use technologies, firms engaged in dual-use are those with higher military sales, a greater number of employees and a larger number of patents (civilian, military and mixed) than those not engaged in dual-use. Furthermore, we found a skill effect (more involvement in dual-use per employee) in European firms compared to US firms. These findings help to identify which firms should be targeted by government policies if increasing dual-use technologies becomes a political objective.     

The economic effects of international trade in armaments in the major western industrialized and developing countries†

We have used the Michigan Model of World Production and Trade to assess the impact of exports and imports of armaments (based on 1980 data) on sectoral trade and employment and other economic variables in the major Western trading countries. If the United States were to place a unilateral embargo on its arms exports and imports, we calculate that it would experience a comparatively small amount of employment displacement in the aggregate and that most of this displacement would occur in the transport equipment and electric machinery sectors. If all the major Western countries were to place a multilateral embargo on their arms trade, the sectoral effects on the United States would be similarly small. But the sectoral effects in several other industrialized and developing countries measured as a percentage of sectoral employment, would be larger, indicating potential short‐run adjustment problems in labor markets in some cases.     

Reconstruction,the Long Tail and Decentralisation: An Application to Iraq and Afghanistan

In this paper, we examine the current state of knowledge in the economics literature on the conduct of reconstruction activities in Iraq and Afghanistan. As stabilisation and reconstruction missions grow in importance for units deployed to these regions, it becomes more important to understand what activities can promote economic growth at the local level. While military operations focus on interdicting the insurgency, successful counter-insurgency campaigns have typically addressed the conditions conducive to the insurgency. Mitigating the incentives for individuals to participate in an insurgency is imperative. Well-crafted and timed reconstruction activities can, we argue, attenuate these incentives.     

Can we negotiate with the Taliban?

The belief that the insurgency in southern Afghanistan is a singular entity and the assumption that negotiations with that entity can bring an end to the conflict are simplistic and do not take into account the other insurgent partners, nor the role of local power brokers. Care must be taken when providing advice in the public domain on how to end or limit conflict in Afghanistan.