Chalk vs Guns: Some economic consequences of an announced French scenario 1

This paper explores whether defense contractors' manufacturing technology advantages over purely commercial firms might be associated with differences in their workforce and organizational practices. It uses unique original data collected specifically to test workforce and organizational complementarities in implementation of advanced manufacturing technology in small manufacturers. Findings are that defense contractors: (1) have higher and deeper rates of advanced manufacturing technology use; (2) have greater perceived success in achieving manufacturing goals; (3) are more likely practitioners across a diverse spectrum of advanced workforce and organizational practices. Then, (4) econometrically, the defense contractors' higher reported levels of achievement in implementing advanced manufacturing technologies are positively associated with those organizational and workforce practice differences.     

AGENDA FOR DEFENSE AND PEACE ECONOMICS

This brief introduction celebrates the 20th Anniversary of the Journal, Defence and Peace Economics. Suggesting elements of an agenda for the future of this branch of economics, I raise several topics that are new and that seem to indicate that the field will expand and shift focus substantially in future years.     

EFFECTS OF MILITARY SPENDING ON THE PROFITABILITY OF SPANISH DEFENCE CONTRACTORS

The traditional view of the defence industry obtaining large profits from contracts with the Ministry of Defence relies on several assumptions. Among these are the use of such arrangements as an instrument of industrial policy, the strong market power enjoyed by prime contractors, and the inefficiency encouraged by the sector. The findings show that defence contracts have a positive effect on profits, as well as the prizes for innovation and the market power enjoyed by some defence subsectors.     

Remaking the military industrial relationship: A French‐American comparison

Defense industrial complexes in leading Cold War nations have downsized and reallocated resources to other productive activities in the 1990s. In this paper, we analyze the experience of two key countries ‐ the US and France. Comparing the two countries, we find similar outcomes in budgetary retrenchment and large firm restructuring but marked differences in the pace of downsizing and diversification among small and medium‐sized firms. We hypothesize that three sets of contextual differences may explain these differences: 1) institutional differences in the way that the State bureaucracies ‐ the Pentagon and the French Délégation générale pour l'armement (DGA) ‐ oversee defense industrial matters, 2) differences in military industry ownership and firm size patterns, and 3) differences in the regional distribution of defense industrial capacity and associated regional policies. In closing, we note that the two countries’ defense industrial complexes are becoming more alike and speculate on the significance of invidious competition and interactions between them. We address briefly the future of French/American arms industrial competition and cooperation, given the trend towards transnational security arrangements and defense industry globalization     

A PRODUCTIVITY AND EFFICIENCY ANALYSIS OF THE SECURITY AND DEFENCE TECHNOLOGICAL AND INDUSTRIAL BASE IN SPAIN

This study analyses the performance of the productivity of the main industrial subsectors composing the security and defence technological and industrial base (SDTIB) in Spain from 1996 to 2009. Accordingly, we have used the non-parametric data envelopment analysis and bootstrapping techniques to compute Malmquist productivity indexes that allow us to split productivity growth into efficiency change and technical progress. The results obtained show productivity improvement in the SDTIB as a whole due mainly to advances in technology and to a lesser extent to the contribution of technical efficiency. The bootstrap approach yields further evidence, as for many cases, productivity growth or decline, is not statistically significant. This is the first time a study of this kind has been carried out on the production process of this sector in Spain.     

Burden Sharing in CSDP Military Operations

Abstract

Military burden sharing has been a subject of repeated debates in NATO and the UN. Despite more modest goals, the European Union’s (EU) Common Security and Defense Policy (CSDP) has experienced no fewer difficulties in garnering men, money, and materiel. While this may not come as a surprise, the fact that some EU member states have carried disproportionate shares of the burden of CSDP operations is a puzzle that remains unaccounted for. We address this gap by analyzing determinants of contribution levels to CSDP operations. In employing an innovative multi-method design that combines insights from collection action theory with those from integrated theories of military burden sharing, our results indicate that EU countries tend to contribute in positive disproportion with their capabilities when they have a strong peacekeeping tradition and elections are distant. In contrast, they undercontribute when small trade volumes with the area of operations combine with a weak peacekeeping tradition.     

The defence industry supply chain: Linkage patterns in the south west of england 1

In this paper, new data from the south west of England are used to illustrate that defence dependent firms are likely to purchase more inputs locally than less defence‐dependent firms. The results confirm that the defence industry's supply chain has unusual characterises and that defence industrial restructuring is therefore, likely to produce different outcomes to previous rounds of manufacturing restructuring.     

Comparative analysis of Arab Spring determinants

The Arab Spring, a pro-democracy uprising that has been sweeping through North Africa and the entire Arab world since 2010, has been described as a cataclysmic revolutionary wave that has left the overthrow of political regimes in its wake. Studies have comprehensively x-rayed the political and socio-economic circumstances that gave rise to the uprising. Apart from the impact of the uprising on political developments and democratic governance in the Arab world in particular and the world in general, the circumstances that resulted in the revolutions constitute empirical security implications for Nigeria. This is the focus of this article. Using the Ibrahim Index of African Governance (IIAG) and other selected indicators, this article draws a comparative analysis of the key factors that led to the uprisings in Egypt, Libya and Tunisia, pointing out areas of social and security tensions in Nigeria. Based on these findings, it points out the urgency of and imperative for security sector reforms in Nigeria.     

AID,GLENEAGLES AND THE RUN-UP TO THE MILLENNIUM +5 SUMMIT

Africa has emerged as a strategic location for transcontinental narcotics trade. Particularly the West African subcontinent has turned into a cocaine warehousing and trans-shipment hub along the way to the European underground markets. At this juncture, African drug networks (ADNs) began to play a momentous role in global drug trade, and pose a considerable threat to international security, as they operate in more than 80 countries. The United Nations Office on Drugs and Crime, Interpol, and Europol perceive ADNs as one of the primary issues in international counter-narcotics policy. These agencies have launched several multilateral initiatives to contain the West African threat. None of these initiatives, however, retarded the expansion of the problem. Indeed, the containment efforts turned out to be quite embryonic. The ADNs eventually entered the Turkish market by the early 2000s. West African drug networks (WADNs) in particular have begun to operate within Turkey extensively, often supplying and distributing drugs. The gravity of the threat became ever more serious by 2012. The upsurge of the new threat has compelled the Turkish drug-law enforcement agencies to adopt new policies and counter-strategies. These policies have to be based upon proper strategic analysis of the threat. This paper seeks to address the need for a threat assessment of ADNs. It investigates the dimensions of the problem, profiles the members of WADNs, their modes of operation, and the factors that compelled them to exploit the illicit Turkish drug markets. The analyses are based upon the scrutiny of 227 narcotic interdictions files and statements from the African individuals in these case files. The paper concludes by presenting policy implications and recommendations for the Turkish security and foreign-policy institutions to cope with this impending threat.     

Aligning national “logics” in a European military helicopter program

This article analyzes the public side of the NH90 network consisting of four participating countries (Germany, France, Italy, and the Netherlands) and their industrial partners. Comparable to observations in earlier international projects in the defense sector, the development and production of the NH90 defense helicopter did not match original plans and costs estimates. On the basis of four mechanisms that were intended to facilitate the cooperation between the partnering countries (the General Memorandum of Understanding; coalition formation; the role of the central agency; and the process of vertical escalation) the question is posed whether or not there was a true alignment of national interests and “logics.” The lack of standardization, as well as program delays and issues concerning the division of the work-share, lead to the emerging alignment being characterized as “quasi-alignment” at best.