Chains,networks and shifting paradigms: the UK defence industry supply system

Industrial supply chains have emerged as the focus of much economic and business research over the previous decade and defence is no exception. This paper reviews contributions made to the body of knowledge in this field with particular attention given to primary research undertaken on the UK defence industrial supply system. In doing so, the author assesses the quantity and quality of knowledge available to researchers, analysts and policy makers. There have been a number of valuable contributions to the literature and this paper reveals a subject that is extremely complicated, dynamic and yet under‐researched. It is suggested that it may well be this complexity and dynamism, coupled with difficulty in accessing data, that has inhibited research development in this field. Defence industry supply systems are repeatedly referred to as ‘chains’; however, primary research consistently suggests this is a misnomer – the author concludes that future analysis of the UK defence sector must embrace directly the economics of networks if understanding of the same is to progress and industrial ‘invisibility’ is to be avoided.     

Mapping Out a Counterinsurgency Campaign Plan: Critical Considerations in Counterinsurgency Campaigning1

This paper argues on the basis of a series of historical examples that include the Philippines, Vietnam, Malaya and Northern Ireland, that there is no perfect counterinsurgency model and that each counterinsurgency campaign is different. Counterinsurgents need to have a series of basic tenets to wage successful war against guerrillas and insurgents. These include: a clear political policy from the government under insurgent attack, a strategy to keep the population safe, successful intelligence gathering, a recognition that successful counterinsurgency is manpower intensive and a high priority on the destruction of the insurgent infrastructure. This paper urges that in period of peacetime it is essential that militaries develop a Standing Counterinsurgency Concepts Unit that can conceptualise past and present insurgent patterns and build this into military and strategic planning.     

The future of the defence firm: the case of the UK aerospace industry

The focus of this paper is the future of the defence firm within the context of the UK aerospace industry and its supply chain. The analysis considers aerospace markets and the aerospace industry in the UK before assessing the future of the defence/aerospace firm as a case study. The paper concludes that its future in terms of the strategic and important aerospace industry is uncertain. The corporate governance of the defence firm will have to change to reflect the hollowing‐out of the firm as the industry experiences significantly less vertical integration. The emphasis of the future defence/aerospace firm will be on ‘buy’ and not necessarily ‘make’. There will also be fewer independent defence aerospace firms as horizontal integration will occur across air, land and sea platforms as well as civil and defence aerospace firms. Indeed, conglomerate integration may even occur with cost pressures and market forces ensuring that merger activity goes beyond defence and aerospace into wider manufacturing industries and, in some cases, service industries in global markets.     

QUANTIFYING GREED AND GRIEVANCE IN CIVIL WAR: THE AMERICAN WAR OF INDEPENDENCE

‘Greed’ vs. ‘grievance’ is weighed using a generally applicable methodology as motivations in the American War of Independence. Greed is quantified as the expected economic benefit of Independence – escaping colonial trade burdens and expected increased economic growth rates. Grievance is measured as willingness to pay to escape perceived political burdens. Quantification of the relative contributions is made possible by using estimates of expected war-costs. To the extent that the economic burden was insufficient to explain the War, the residual is ascribed to the grievance motivation. Both motives are shown to have contributed to the War, but grievance dominates.     

Legacy of Bitterness: Insurgency in North West Rwanda

The insurgency in North West Rwanda is a good example of a small scale conflict that provides a first step into the more complex world of regional instability in central Africa. Following the genocide of 1994, genocidaires and ex-military personnel fled to what was then Zaire and established a network of anti-Tutsi bases. Linking up with local groups in Eastern Zaire, these insurgents, usually known as ‘infiltrators’ have carried out a low-intensity but consistent insurgency campaign in Rwanda.

The constant barrage of propaganda aimed at the local population, a technique pioneered during the 1994 genocide, has led to a general, manufactured support for the insurgency. In particular, those people returning from Zaire have been fed a constant diet of anti-Tutsi and Rwandese Patriotic Army (RPA) propaganda, making it easier to act against these groups. Even within the local government and other official bodies, there are widespread Hutu sympathies that have led to additional aid reaching the insurgents.

The particular strain of ethnic violence has led to an insurgency in which civilian villages are as likely to be attacked as RPA military installations. More surprising, given the nature of the insurgency, Hutus themselves have been targets. Initially, moderate Hutus were singled out as examples, but increasingly indiscriminate killings have been aiming to force all Hutus to take sides.

The insurgents have deliberately polarised large parts of Rwanda and this has profound implications for conflict resolution. In particular, supplementing the military campaign with political social campaigns, at least partly to combat the mythology of grievance among the Hutus, and tackling the conflict as part of a supra-national conflict that goes beyond ‘national’ borders.     

The UK defence electronics industry: adjusting to change

The electronics industry provides components and capabilities that are critical to modern defence requirements. It is anticipated that the effectiveness of both weapons systems and the command and control network that supports military operations will become increasingly dependent upon the electronics sub‐systems they employ in the future. With the ascendancy of ‘network centric warfare’, it seems certain that defence electronics will continue to grow in importance in the future, enabling far‐reaching advances in military capability and efficiency. Yet little is known about the structure, conduct, performance and competitiveness of the UK defence electronics sector as it prepares to meet the challenges ahead. This paper reports the findings of a study commissioned in 2002 by Intellect, the UK defence electronics trade association, and supported by the Department of Trade and Industry. The UK defence electronics industry is found to be a high technology, R&D‐intensive and decreasing cost industry, which is competitive in world defence markets. The UK industry faces major competitive threats in the future from established US and European firms and from potential new entrants from China, India, Israel, Singapore, South Korea and Turkey. The future competitiveness of the UK defence electronics industry will depend on maintaining both technical advantage and open access to the large US market.