Alternative models of Greek defence expenditures

This paper models and estimates Greek defence spending over the 1950–1989 period. It employs the Stone‐Geary welfare function and estimates levels of defence expenditures by the Engle‐Granger two‐step procedure. The Dickey‐Fuller test regression for cointegration is specified in terms of the significance of additional augmentations. The Deaton‐Muellbauer functional form is then employed and an estimating equation for the expenditure share of defence is derived. This specification is compared with the levels equation through a number of non‐nested tests involving model transformation.     

Defence R&D expenditure: The crowding-out hypothesis

The impact of defence expenditure on the economy has been widely studied through different types of models. However, the results from these studies have not reached definitive conclusions, and have left a gap in the analysis of the impact of defence R&D expenditure at the economy level. Defence R&D has specific characteristics, which lead to market failures: public good, high risk and uncertainty, national security. Also, defence R&D creates two types of externalities: negative (crowding-out), and positive (spin-off). Crowding-out is the major economic debate about defence R&D. This paper analyses the crowding-out hypothesis by applying three types of models for the UK case: supply, demand, and demand-supply models. From these three models the most reliable is chosen and applied to the individual cases of France, Germany, Japan and USA. The paper also reports the results for the pooled data of these five countries, and for four error component models. The results from estimating such models shed light on the defence R&D crowding-out hypothesis.     

The Effects of Defence Spending Reductions: A CGE Estimation of the Foregone Peace Dividend in the Case of Greece

With the collapse of bipolarity and the end of the East-West armaments race, defence budgets have shrunk and military expenditures across many countries have fallen, opening-up the prospect of potential beneficial economic spin-offs. In the case of Greece, a country with a higher than average defence burden, military spending has not exhibited similar downward trends as it has done in other members of NATO and the European Union. The paper, using a Computable General Equilibrium model, estimates through simulations the effects on the Greek economy had reductions in current defence spending been equal to the NATO average. The results from the CGE estimations suggest that a shift of expenditure from defence into non-defence public spending would have an appreciable beneficial impact.     

TERRORISM: FACTS FROM FIGURES 1

If international terrorism is on a rising trend, an important source of confirmation or refutation of this is time‐series data on terrorist activity. Using chiefly data collected by the RAND/MIPT consortium we show using basic statistical analysis that in the period 1968–2005 the yearly number of all international terrorist incidents shows no trend over time, but fluctuates year on year in a random manner. On the other hand some indicators do show a definite trend over time, principally the steady rise in the number of incidents that are death‐dealing in nature. A further conclusion is drawn, showing that the proportion of these incidents leading to deaths above a given level is virtually fixed.     

Using the Feder-Ram and Military Keynesian Models to Examine the Link Between Defence Spending and Economic Growth in Sri Lanka

This study uses the Feder-Ram model in conjunction with the military Keynesian model to examine the nexus between defence spending and economic growth in Sri Lanka. We find that the Keynesian aggregate demand model is better suited to analyse the link than the Feder-Ram model for the case of Sri Lanka. Based upon our results we expect a higher economic growth rate in Sri Lanka if more public resources are diverted from the defence to civilian sectors of the economy, now that the war between the government and separatist guerrillas has come to an end. However, recent post war events cast doubt upon whether a diversion of sources from military to non-military spending will actually occur. We conclude that the sanguine predictions of our economic analysis are entirely dependent upon the political decisions of the Sri Lankan government for their realization.     

CIVILIAN PARTICIPATION IN THE EDUCATION AND DEVELOPMENT OF MILITARY OFFICERS

Much is made in the security sector reform literature of the role of civil society as an overseer and monitor of the security sector, contributing to improved accountability and governance. This paper looks at how the notion of ‘civil society capacity’ needs to be disaggregated in order to develop meaningful strategies to assist civil society organisations to impact security sector reforms in complex, post-conflict contexts like the Democratic Republic of Congo. It draws on fieldwork conducted with 200 Congolese civil society groups that are attempting to engage in current security sector reform processes, and looks at which capacities are required to improve oversight by civil society groups.     

‘Fighting for peace’

In Africa, most of the present conflicts are civil, intra-state wars where belligerent groups use guerrilla tactics to achieve various political, economic or ideological objectives. The atrocities and the effect of these on-going wars on innocent civilians, human suffering, poverty and development are beyond comprehension. Not surprisingly, the majority of current peace operations are in Africa, with more than 70 countries contributing forces to these conflict zones. On the continent, South Africa has come to assume a leading role in peace operations and is now a major troop-contributing country to UN and AU missions. In the past 11 years, the South African National Defence Force (SANDF) has taken part in no fewer than 14 peace missions. This article provides a brief background of the conflicts in Burundi, the Democratic Republic of Congo (DRC) and Sudan, the different United Nations (UN) and African Union (AU) mandates under which peacekeepers had to operate as well as their objectives, and the extent of South Africa's involvement in the various missions. In the last section, the major challenges, that these operations have posed are highlighted.     

Russian military reform: institutional,political and security implications

This critical comment examines the incentives, major priorities, difficulties and first results of the Russian military reform that is being implemented since 2008. The authors conclude that despite numerous drawbacks and barriers to the reformist efforts certain successes can be identified. Particularly, there is a clear shift from the old-fashioned, Soviet-type army to a more compact, mobile, better equipped and combat-ready armed forces that are capable to cope with today's challenges to Russian national security.     

Transforming Mexico’s energy field: the intended consequences of a drug war

ABSTRACT

By utilizing the theory of Strategic Action Fields (SAFs), the present article explains how a new meso-level social order seems to have emerged in Mexico as a result of the paramilitarization of organized crime, militarization of security, and the opening of Mexico’s energy sector to private investment. This work describes the transformation of Mexico’s energy field after a process of major constitutional and economic changes that were the consequence of a security crisis and an agenda of energy reform for which the so-called ‘drug war’ was a key underlying foundation.