A contemporary and comprehensive analysis of national and supranational defence governance in an uncertain and increasingly dangerous world. This book will appeal to policymakers, analysts, graduate students and academics interested in defence economics, political economy, public economics and public policy.

This timely and wide-ranging study covers both the economic and the political aspects of defense spending—first by providing a theoretical framework and then by explaining, in a political economy context, the results of decisions to allocate scarce resources to defense. In doing so, the authors provide a comprehensive picture of the interaction between defense spending and the economic and political structure of the United States, complementing their exploration of topical concerns such as SDI with analysis of long-term trends and issues of timeless importance in the defense debate. Because of the politicizing of defense planning and procurement, there have been few significant applications of optimization techniques to high-level defense issues over the past decade. As a result, there has been a rapid decline in the importance of those techniques—historically the focus of books on defense economics. Like its predecessors, this book presents optimization techniques applicable to a wide variety of defense problems, but it also illustrates what happens in actual practice and why defense decisions are often not economically efficient. The authors discuss alternatives for cases when political constraints make efficient solutions unlikely and explore changes in the defense establishment and political structures that would make economically efficient resource allocations a reality.

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.

The Oxford Handbook of U.S. National Security frames the context, institutions, and processes the U.S. government uses to advance national interests through foreign policy, government institutions, and grand strategy. Contributors examine contemporary national security challenges and the processes and tools used to improve national security.

Since World War II, Japan has become not only a model producer of high-tech consumer goods, but also-despite minimal spending on defense-a leader in innovative technology with both military and civilian uses. In the United States, nearly one in every three scientists and engineers was engaged in defense-related research and development at the end of the Cold War, but the relative strength of the American economy has declined in recent years. What is the relationship between what has happened in the two countries? And where did Japan's technological excellence come from? In an economic history that will arouse controversy on both sides of the Pacific, Richard J. Samuels finds a key to Japan's success in an ideology of technological development that advances national interests. From 1868 until 1945, the Japanese economy was fired by the development of technology to enhance national security; the rallying cry "Rich Nation, Strong Army" accompanied the expanded military spending and aggressive foreign policy that led to the disasters of the War in the Pacific. Postwar economic planners reversed the assumptions that had driven Japan's industrialization, Samuels shows, promoting instead the development of commercial technology and infrastructure. By valuing process improvements as much as product innovation, the modern Japanese system has built up the national capacity to innovate while ensuring that technological advances have been diffused broadly through industries such as aerospace that have both civilian and military applications. Struggling with the uncertainties of a post-Cold War economy, the United States has important lessons to learn from the way Japan has subordinated defense production yet emerged as one of the most technologically sophisticated nations in the world. The Japanese, like the Venetians and the Dutch before them, show us that butter is just as likely as guns to make a nation strong, but that nations cannot hope to be strong without an ideology of technological development that nourishes the entire national economy.

In his farewell speech, President Dwight Eisenhower famously warned us of the dangers of a military-industrial complex (MIC). In Paul Koistinen's sobering new book, that warning appears to have been both prophetic and largely ignored. As the final volume in his magisterial study of the political economy of American warfare, State of War describes the bipolar world that developed from the rivalry between the U.S. and USSR, showing how seventy years of defense spending have bred a monster that has sunk its claws into the very fabric of American life. Koistinen underscores how during the second half of the twentieth century and well into the twenty-first, the United States for the first time in its history began to maintain large military structures during peacetime. Many factors led to that result: the American economy stood practically alone in a war-ravaged world; the federal government, especially executive authority, was at the pinnacle of its powers; the military accumulated unprecedented influence over national security; and weaponry became much more sophisticated following World War II. Koistinen describes how the rise of the MIC was preceded by a gradual process of institutional adaptation and then supported and reinforced by the willing participation of Big Science and its industrial partners, the broader academic world, and a proliferation of think tanks. He also evaluates the effects of ongoing defense budgets within the context of the nation's economy since the 1950s. Over time, the MIC effectively blocked efforts to reduce expenditures, control the arms race, improve relations with adversaries, or adopt more enlightened policies toward the developing world-all the while manipulating the public on behalf of national security to sustain the warfare state. Now twenty years after the Soviet Union's demise, defense budgets are higher than at any time during the Cold War. As Koistinen observes, more than six decades of militaristic mobilization for stabilizing a turbulent world have firmly entrenched the state of war as a state of mind for our nation. Collectively, his five-volume opus provides an unparalleled analysis of the economics of America's wars from the colonial period to the present, illuminating its impact upon the nation's military campaigns, foreign policy, and domestic life.

This textbook examines the economic problems of military organizations from an institutional perspective. It discusses the efficiency and effectiveness of military performance, using a capability-based conceptualization. Constitutional, historical and economic considerations complement the analysis. Neither the analysis nor the conclusions depend on any specific armed force, culture, organization, or language. On the contrary, the challenge of defense economics analysis and armed forces management is reduced to a fundamental economic problem, and solutions to this problem are offered. This book is a must-read for students, scholars and practitioners interested in a better understanding of defense economics.