The Political Economy of Defence Defence is the ultimate public good, and it thus falls to government to determine the appropriate amount of public revenue to commit to the defence of the realm. This will depend on history, strategic threat, international security obligations, entreaties from allies and, of course, the threat faced. The Political Economy of Defence is structured to identify, explain and analyse the policy, process and problems that government faces from the starting point of national security through to the ultimate objective of securing a peaceful world. Accordingly, it providesinsightsintohowdefencebudgetsaredeterminedandmanaged, offeringrelevantandrefreshinglypracticalpolicyperspectivesondefence finance, defence and development trade-offs, sovereignty versus globalisation debates, and many other pertinent issues. It will appeal to policymakers, analysts, graduate students and academics interested in defenceeconomics,politicaleconomy,publiceconomicsandpublicpolicy. ron matthews is Professor of Defence Economics at Cranfield University. He advises international governments on defence offset, and teachesdefenceeconomicsatuniversitiesandmilitarycollegesacrossthe world. The Political Economy of Defence Editedby ron matthews CranfieldUniversity,UK UniversityPrintingHouse,CambridgeCB28BS,UnitedKingdom OneLibertyPlaza,20thFloor,NewYork,NY10006,USA 477WilliamstownRoad,PortMelbourne,VIC3207,Australia 314–321,3rdFloor,Plot3,SplendorForum,JasolaDistrictCentre, NewDelhi–110025,India 79AnsonRoad,#06–04/06,Singapore079906 CambridgeUniversityPressispartoftheUniversityofCambridge. ItfurtherstheUniversity’smissionbydisseminatingknowledgeinthepursuitof education,learning,andresearchatthehighestinternationallevelsofexcellence. www.cambridge.org Informationonthistitle:www.cambridge.org/9781108424929 DOI:10.1017/9781108348058 ©CambridgeUniversityPress2019 Thispublicationisincopyright.Subjecttostatutoryexception andtotheprovisionsofrelevantcollectivelicensingagreements, noreproductionofanypartmaytakeplacewithoutthewritten permissionofCambridgeUniversityPress. Firstpublished2019 PrintedandboundinGreatBritainbyClaysLtd,ElcografS.p.A. AcataloguerecordforthispublicationisavailablefromtheBritishLibrary. LibraryofCongressCataloging-in-PublicationData Names:Matthews,Ron,editor. Title:Thepoliticaleconomyofdefence/editedbyRonMatthews,Cranfield University,UK. Description:Cambridge,UnitedKingdom;NewYork,NY:CambridgeUniversity Press,2019.|Includesbibliographicalreferencesandindex. Identifiers:LCCN2018050908|ISBN9781108424929(hbk:alk.paper) Subjects:LCSH:Defenseindustries–Politicalaspects.|Nationalsecurity– Economicaspects.|Security,International–Economicaspects.|War–Economic aspects. Classification:LCCHD9743.A2P5652019|DDC338.4/7355–dc23 LCrecordavailableathttps://lccn.loc.gov/2018050908 ISBN978-1-108-42492-9Hardback ISBN978-1-108-44101-8Paperback CambridgeUniversityPresshasnoresponsibilityforthepersistenceoraccuracyof URLsforexternalorthird-partyinternetwebsitesreferredtointhispublication anddoesnotguaranteethatanycontentonsuchwebsitesis,orwillremain, accurateorappropriate. Tom,TobyandAarish Contents ListofFigures pagex ListofTables xi ListofContributors xiii Acknowledgements xx PartI: NationalSecurity 1 1 ThePoliticalEconomyofDefence 3 ron matthews 2 PoliticalversusMilitaryLeadership:TheBattleforCommon MeansandEnds 27 bryan watters 3 EfficientandEffectiveFinancialManagementofDefence Resources 47 irfan ansari PartII: DefenceorDevelopment? 71 4 MilitaryExpenditureandGrowth 73 ron smith 5 TowardsDemilitarisation?TheMilitaryExpenditure- DevelopmentNexusRevisited 90 jurgen brauer, j. paul dunne and nan tian PartIII: AutarkyversusGlobalisation 121 6 AlliancesinFlux:SovereigntyandSecurityina ChangingWorld 123 stefan markowski and robert wylie vii viii Contents 7 TheRiseandDemiseofGovernment-Mandated OffsetPolicy 148 ron matthews 8 DefenceCompaniesintheAgeofGlobalisation: FrenchDefenceIndustryasaCaseStudy 169 jean-michel oudot and renaud bellais 9 TheGreatParadoxofDefence:PoliticalEconomy andDefenceProcurementinPost-BrexitUnitedKingdom 195 matt uttley and benedict wilkinson 10 DefenceBurdenSharing:APerennialDebatein InternationalAllianceManagement 217 alexander mattelaer PartIV: ResourceManagement 233 11 ThePoliticalEconomyofArmsCollaboration 235 keith hartley 12 DefenceProcurement:OvercomingChallenges andManagingExpectations 258 trevor taylor 13 TheWhole-LifeCostsofDefenceEquipment 284 david kirkpatrick 14 EconomicandPoliticalDimensionsoftheDefenceIndustry SupplyChainRevolution 307 derek braddon 15 TheCostofWomeninGroundCloseCombatRoles 332 joanne l. fallowfield PartV: InternationalSecurity 353 16 BattlegroundsYetUnknown:America’sFuture MilitaryForceStructure? 355 randolf g. s. cooper