PUBLIC SAFETY AND THE MORAL DILEMMA IN THE DEFENSE AGAINST TERROR

The economic theory of defense has traditionally described public safety as achieved through investments that deter adversaries. Deterrence is, however, ineffective and pre‐emptive defense is required when a population of intended victims confronts supreme‐value suicide terror. A moral dilemma then arises, since pre‐emption may impose collective punishment, while in the absence of pre‐emption the population of intended victims is exposed to acts of terror. We consider how a population of intended terror victims confronts the moral dilemma, and compare the threatened population's response with the public‐safety recommendations of external judges who are not personally affected by the threat of terror.     

Ridge regression analysis of the defence‐growth tradeoff in the United States

An examination of past analyses suggests that today's sailors may be less responsive to compensation changes than previous generations. Such a change could make recruiting and retaining high‐quality sailors more difficult. However, variation in researchers' decisions over time may simply have created the appearance of such a change. Our results suggest there is little variation in the pay elasticity over time. In contrast, the different reduced‐form models we use to measure this relationship can explain most of the variation in the literature. Therefore, the evidence suggests that while sailors may have changed over time, their response to compensation has not.     

ANALYSING DEFENCE DEPENDENCY: THE IMPACT OF THE ROYAL NAVY ON A SUB‐REGIONAL ECONOMY

This paper provides a methodology for estimating the economic impact of defence spending at a sub‐regional level. It does so by calculating the income and employment generated by Britain’s Royal Navy and associated defence activities in the City of Portsmouth and its surrounding area, during the financial year 2003–2004. In an era of military consolidation, the paper offers an insight into the multifaceted impact of defence‐related expenditure. Hence, it presents a generic framework that could prove useful to other researchers when seeking to measure the sub‐regional impact of naval, airforce and army facilities in other national contexts.     

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.     

Country Survey I–Military Spending in India 1

After a brief survey of the Indian economy, we survey the supply and demand of military expenditures in India over the last four decades. The causes of military expenditures appear to include regional rivalries and protracted conflicts, but it has proven difficult to delineate these with empirical models. The effects of military spending in India on economic growth appear to be benign, despite much speculation to the contrary. However, the opportunity costs of defence spending are shown to be considerable. We conclude with speculation about the role of debt and debt servicing in retarding future economic growth in India. We also speculate about the potential for the creation of a war economy in India.     

Civil—military relations in Africa: Navigating uncharted waters

“Perception is a second reality!”

This essay discusses the military as a part of wider society and the interactions between the two. It argues that civil—military relations are complex and not always harmonious. In its focus on Africa, the essay describes some differences in the development of African militaries and civil—military relations on the continent as compared with the West, but argues that the differences are merely a matter of degree. As civil—military relations on the continent have been strongly influenced by its colonial history, which caused fear and even dislike of the colonial military, it still impacts on these relations in the post-colonial era. After examining the relationship between the armed forces, democracy and politics in the politically turbulent African environment, it is concluded that a simplistic definition of civil—military relations is difficult to arrive at. The essay identifies the key principles of democratic civil—military relations and, although admitting that these principles are not always easy to adhere to, argues that as Africa develops civil—military relations, African militaries have moved and will move closer to observing these principles. To enhance this process it is essential for African militaries to include civic education programmes at all levels of education and training in order to gain a better understanding of and commitment to these principles.     

Minimizing Public Sector Corruption: The Economics of Crime,Identity Economics,and Money Laundering

Abstract

This paper offers a simple strategic framework to help governments identify various policy mechanisms to minimize public sector corruption. The paper offers a formal model that blends the economics of crime with identity economics and money laundering. It presents a partial equilibrium framework that focuses on a representative public official engaged in a mix of legal and illegal effort. The model introduces various levers a government might use to impact the costs and benefits of illegal effort. The ultimate goal is to help turn volatile vicious cycles of political instability, into steady virtuous cycles of stability, growth, and sustainable development.     

POLITICAL SCIENCE,COMING IN FROM THE COLD

Forecasting Nuclear Proliferation in the 21st Century: The Role of Theory (vol. 1, 312 pages, $24.95) and A Comparative Perspective (vol. 2, 488 pages, $24.95), edited by William C. Potter with Gaukhar Mukhatzhanova. Stanford University Press, 2010.