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The author focuses on the spending policy, deficit and debt, and retirement and healthcare entitlement dynamics that will make it difficult, if not impossible, to fund current defense plans. Transformational strategies, he concludes, must be adjusted to lower and more volatile future spending levels. The most important adjustment is to shift spending priorities to readiness and traditional modernization needs that are more urgent in terms of capabilities than transformational technologies, as well as more predictable and controllable in terms of costs.
Since the war on terrorism began in earnest after September 11, 2001, defense budgets have risen sharply. It would be reassuring to believe that the resources to fight this war will continue to be made available, regardless of its cost or duration, and that Congress and the President will at the same time maintain the broader military capabilities needed to protect the nation's security interests. Fiscal realities, however, have often compromised military capabilities in the past and may do so again in the future. The short-term threat to defense is tied to deficit control. Reducing the very large deficits projected for the next several years will require cutbacks in discretionary spending. As a result, defense will be competing with domestic programs for a shrinking share of the budget, and the politics of this competition could prove highly unfavorable for defense.
Traditionally, economics training in public finances has focused more on tax than public expenditure issues, and within expenditure, more on policy considerations than the more mundane matters of public expenditure management. For many years, the IMF's Public Expenditure Management Division has answered specific questions raised by fiscal economists on such missions. Based on this experience, these guidelines arose from the need to provide a general overview of the principles and practices observed in three key aspects of public expenditure management: budget preparation, budget execution, and cash planning. For each aspect of public expenditure management, the guidelines identify separately the differing practices in four groups of countries - the francophone systems, the Commonwealth systems, Latin America, and those in the transition economies. Edited by Barry H. Potter and Jack Diamond, this publication is intended for a general fiscal, or a general budget, advisor interested in the macroeconomic dimension of public expenditure management.
Japan’s decision to attack the United States in 1941 is widely regarded as irrational to the point of suicidal. How could Japan hope to survive a war with, much less defeat, an enemy possessing an invulnerable homeland and an industrial base 10 times that of Japan? The Pacific War was one that Japan was always going to lose, so how does one explain Tokyo’s decision? Did the Japanese recognize the odds against them? Did they have a concept of victory, or at least of avoiding defeat? Or did the Japanese prefer a lost war to an unacceptable peace? Dr. Jeffrey Record takes a fresh look at Japan’s decision for war, and concludes that it was dictated by Japanese pride and the threatened economic destruction of Japan by the United States. He believes that Japanese aggression in East Asia was the root cause of the Pacific War, but argues that the road to war in 1941 was built on American as well as Japanese miscalculations and that both sides suffered from cultural ignorance and racial arrogance. Record finds that the Americans underestimated the role of fear and honor in Japanese calculations and overestimated the effectiveness of economic sanctions as a deterrent to war, whereas the Japanese underestimated the cohesion and resolve of an aroused American society and overestimated their own martial prowess as a means of defeating U.S. material superiority. He believes that the failure of deterrence was mutual, and that the descent of the United States and Japan into war contains lessons of great and continuing relevance to American foreign policy and defense decision-makers.
The Brookings Institution has long produced an analysis of America's defense budgets and policies. The war on terror and the ongoing operations in Iraq and Afghanistan have forced upon this country soaring defense budgets and unprecedented challenges in policymaking. In the newest installment in this tradition, leading foreign policy expert Michael O'Hanlon offers policy recommendations for strengthening the ability of America's military to respond to international crises in a tumultuous world. The United States can, for the foreseeable future, be confident that its armed forces will remain engaged in Iraq, as well as in Afghanistan and other theaters in the war on terror. It will also need to remain involved in deterrence missions in the western Pacific, most notably in Korea and the Taiwan Strait. It will wish to remain engaged in European security, since the capabilities and cohesion of the NATO alliance have important implications for the United States globally. O'Hanlon reviews these priorities, asking tough questions and developing frameworks for answering them: • What military will the United States need in the future? • How much will it cost? • How can the U.S. increase the size of its ground forces without increasing the size of the defense budget? • In an era of apocalyptic terror threats, and at a time of $400 billion defense budgets and $400 billion federal budget deficits, how can this country protect its citizens while maintaining fiscal responsibility?
Securing Development: Public Finance and the Security Sector highlights the role of public finance in the delivery of security and criminal justice services. This book offers a framework for analyzing public financial management, financial transparency, and oversight, as well as expenditure policy issues that determine how to most appropriately manage security and justice services. The interplay among security, justice, and public finance is still a relatively unexplored area of development. Such a perspective can help security actors provide more professional, effective, and efficient security and justice services for citizens, while also strengthening systems for accountability. The book is the result of a project undertaken jointly by staff from the World Bank and the United Nations, integrating the disciplines where each institution holds a comparative advantage and a core mandate. The primary audience includes government officials bearing both security and financial responsibilities, staff of international organizations working on public expenditure management and security sector issues, academics, and development practitioners working in an advisory capacity.
In this comprehensive study, 15 African experts describe and analyse the military budgetary processes and degree of parliamentary oversight and control in nine countries of Africa, spanning across all the continent's sub-regions. Each case study addresses a wide range of questions, such as the roles of the ministries of finance, budget offices, audit departments and external actors in the military budgetary processes, the extent of compliance with standard public expenditure management procedures, and how well official military expenditure figures reflect the true economic resources devoted to military activities in these countries.
On August 24-25, 2010, the National Defense University held a conference titled “Economic Security: Neglected Dimension of National Security?” to explore the economic element of national power. This special collection of selected papers from the conference represents the view of several keynote speakers and participants in six panel discussions. It explores the complexity surrounding this subject and examines the major elements that, interacting as a system, define the economic component of national security.