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Challenges of defence procurement

Author

Listed:
  • Stefan Markowski
  • Peter Hall

Abstract

Defence procurement deals with products that are highly differentiated and its regulation is extremely complex. The 'defence organisation' and 'industry' are the two principal parties involved in procurement transactions. Domestic sourcing of defence materiel has long been encouraged in most countries in the name of 'self-reliance'. Thus, defence planners must determine not only their materiel requirements but also defence-related manufacturing and service capabilities needed in-country. But how much 'self-reliance' is feasible and desirable, especially in smaller countries? This paper provides an overview of issues and policy tools in defence procurement that reflect the experience of a number of small and medium size countries. Issues addressed include: changing user requirements, make-or-buy decisions, contracting, source selection, organisational structure, and international collaboration. These issues are reviewed against the background of global trends in defence spending, industry and trade.

Suggested Citation

  • Stefan Markowski & Peter Hall, 1998. "Challenges of defence procurement," Defence and Peace Economics, Taylor & Francis Journals, vol. 9(1-2), pages 3-37.
    • Handle: RePEc:taf:defpea:v:9:y:1998:i:1-2:p:3-37
    DOI: 10.1080/10430719808404892
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    References listed on IDEAS

    as
    1. Keith Hartley & Todd Sandler (ed.), 1995. "Handbook of Defense Economics," Handbook of Defense Economics, Elsevier, edition 1, volume 1, number 1.
    2. Sandler,Todd & Hartley,Keith, 1995. "The Economics of Defense," Cambridge Books, Cambridge University Press, number 9780521447287, October.
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    Cited by:

    1. Flávia de Holanda Schmidt Squeff & Lucas Rocha Soares de Assis, 2015. "The Defense Industry in Brazil: Characteristics and Involvement of Supplier Firms," Discussion Papers 0195, Instituto de Pesquisa Econômica Aplicada - IPEA.
    2. Kapil Patil & Saradindu Bhaduri, 2020. "‘Zero-error’ versus ‘good-enough’: towards a ‘frugality’ narrative for defence procurement policy," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 19(1), pages 43-59, June.
    3. Carlos Martí Sempere, 2011. "A Survey of the European Security Market," Economics of Security Working Paper Series 43, DIW Berlin, German Institute for Economic Research.

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