Negotiating regional security and arms control in the Middle East: the ACRS experience and beyond

In this contribution, Jones focuses initially on the experience of Arms Control and Regional Security (ACRS) and the reasons why this group stalled. The sources of tension that emerged in ACRS, and which ultimately led to its suspension, derived mainly from different views on the relationship between the nuclear and other issues in these talks, as well as the composition of ACRS and its role as a group of the multilateral track of the peace process. Jones emphasizes that regional security discussions in the Middle East must address multiple threats on multiple levels, and ACRS was never politically equipped to do so. Thus, despite the real, if limited, success of ACRS, any real security regime in the Middle East will be the product of a much more inclusive process which recognizes the essential importance of cooperatively addressing multiple security challenges, including those related to the problems of social and economic upheaval in the region. Jones concludes with an argument that the time may be ripe to embark on such a process in the wake of the war in Iraq and other far-reaching indicators of change in the region.     

Military spending and economic growth in South Africa

This paper undertakes an empirical analysis of the economic effects of military spending on the South African economy. It estimates a neo‐classical model common in the literature at the level of the macroeconomy and at the level of the manufacturing sector. An attempt is made to improve upon the model by allowing the data to determine the dynamic structure of the model through an ARDL procedure. No significant impact of military spending is found in aggregate, but there is a significant negative impact for the manufacturing sector. This suggests that the cuts in domestic military procurement that have occurred since 1989 could lead to improved economic performance in South Africa through their impact on the manufacturing sector.     

Book review

Jacques Fontanel, Les dépenses militaires et le désarmement, Editions Publisud, Paris, 1995, 136 pages.

Jean‐Paul Hébert ’Production d'armement — Mutilation du systéme français’, Paris 1995 La documentation française, 221 pages.     

The contexts of strategy as a guide for defense planning in the Philippines

Efforts toward developing an independent and credible Philippine defense policy were revived when Benigno Simeon C. Aquino III was elected President of the Philippines in 2010. President Aquino renewed the military modernization program in 2012 and emphasized the necessity of a “minimum credible defense posture.” Given the modernization efforts of the government, this article aims to contribute to the development of the concept of minimum credible defense posture by exploring how theory contributes to defense planning. It argues that the contexts of strategy are useful in planning for national defense because these contexts can provide a conceptual framework for defense planners. It proceeds in three parts: the opening section reviews the literature on defense planning; the second surveys the context of developing strategies as discussed in the General Theory of Strategy; and the last provides a definition of minimum credible defense and applies the context of developing strategies to the case of the Philippines.     

Mandated defence offsets: can they ever deliver?

Defence offsets are elements of defence procurement deals additional to the primary content. Offsets are usually expected to yield technological or industrial benefits to the purchasing country (e.g. countertrade, technology transfers, or additional jobs) and military buyers often require suppliers to make offsets available “cost-free.” The authors argued previously that such strategies achieve little of value to buyers that lack market power and are unnecessary otherwise, since purchasers with the market power to extract more value for money from foreign suppliers can do so anyway. This article also focuses on the supply side of offset deals. The USA is the world's largest defence offsets supplier but the US government opposes offsets demands as economically inefficient and trade distorting. Even if offsets are inefficient and trade distorting, they may still benefit a materiel-exporting country such as the USA as they may induce exports and create associated benefits for the offsets provider.     

A characterization of optimal base‐stock levels for a multistage serial supply chain

In this article, we present a multistage model to optimize inventory control decisions under stochastic demand and continuous review. We first formulate the general problem for continuous stages and use a decomposition solution approach: since it is never optimal to let orders cross, the general problem can be broken into a set of single‐unit subproblems that can be solved in a sequential fashion. These subproblems are optimal control problems for which a differential equation must be solved. This can be done easily by recursively identifying coefficients and performing a line search. The methodology is then extended to a discrete number of stages and allows us to compute the optimal solution in an efficient manner, with a competitive complexity. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 32–46, 2016     

Book reviews

The Balkanization of the West: The Confluence of Postmodernism and Postcommunism By Stjepan G. Mestrovic, Routledge, London (1994). ISBN: 0-414-08755-4, Price £40.00 hardback, £13.99 paperback.

A Naval History of World War I By Professor Paul G. Halpern, UCL Press, 1994. pp. 624 ISBN 1-85728-295-7. Price £25.00

Arms Watch - SIPRI Report on the First Year of the UN Register of Conventional Arms By Edward J. Laurance, Siemon T. Wezeman and Herbert Wulf, Oxford University Press for SIPRI (1993) ISBN 019-829-1795, Price £25.00 hardback, £16.50 paperback.

A League of Airmen By J. A. Winnefeld, (Ed.), RAND, Santa Monica, ISBN 08330-1503-6, Price $30.00 (Hardcover) $15.00 (Softcover)     

A stochastic constrained optimal replacement model

In this paper a stochastically constrained replacement model is formulated. This model determines a sequence of replacement dates such that the total “current account” cost of all future costs and capital expenditures over an infinite time horizon for the n initial incumbent machines is minimized subject to the constraints that an expected number of machines are in a chosen utility class at any point in time. We then indicate one possible solution method for the model.