Special Co-ordinator of the Stability Pact for South Eastern Europe
 

 

 

 

 
   
   Defence Economics   

Objective
In an attempt to increase the sense of security and confidence among the countries in the region, the Stability Pact aims at enhancing transparency consolidating progress in the defence and security field. Aimed at facilitating the often painful and difficult transition into a new security culture in the region, several project frameworks have been developed. Several of these focus on seeking to assist with the non-security impacts of military restructuring and downsizing, while another is geared toward opening up the process of military planning and resource allocation.


The Impact of Conversion

The military sector in every South East European nation faces the difficult challenge of restructuring and, inevitably, downsizing its forces and activities. While that entails a number of internal challenges for future military strategy and tasks, it also involves considerable external dislocation, particularly in economic terms.

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Personnel
The single biggest cost factor in every military is personnel. A leaner military sector results directly in releasing former military personnel into the civilian labor market. As the skills acquired by these personnel often have little direct bearing on existing commercial requirements, the likely initial result is unemployment and disillusionment, which carry with them potential security implications. In close collaboration with a number of international organizations, notably NATO, and donor governments, the Stability Pact is associated with a number of programs in South East European nations to provide training opportunities for former military personnel so as to ease and speed their transition to a productive civilian life. Currently active programs are currently operating in Bosnia, Bulgaria and Romania, while plans are underway to implement programs in Croatia, Albania and Yugoslavia.

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Physical Assets
While providing a future for former military personnel is a priority task, downsized militaries also have diminished use for physical assets, notably military bases. Assisting the defence sector in South East Europe to convert its physical assets into productive economic resources helps consolidate security sector reform and contribute to national prosperity. Together with NATO, the Stability Pact has spearheaded a process of pilot project development coupled with assistance in the development of a long-term strategic approach to closing and converting military assets. With programs currently active in Romania and Bulgaria, Croatia and Yugoslavia have specifically expressed interest in proceeding in the near future.

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Military Planning and Budgeting Transparency

A clear and easily understood process for future military planning and resource allocation is at the heart of full democratic control of the armed forces and comprehensive regional stability. Facilitating the process of greater transparency in this area as well as a sharing of learned lessons is the key to the Stability Pact programs in this area. The Pact has sponsored a Bulgarian-British collaborative effort to establish a regional planning and budgeting center in Sofia. This center provides, through both an experts and academic task forces, substantial ideas on how to improve and share experiences in defense planning. In turn, this will provide a steady stream of confidence building measures for the region. The Center's first product, an annual yearbook on planning, has yielded the first tangible evidence of a new culture of openness and cooperation in this field.

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Key Contacts

Mr. Frederique Jacquemin, NATO Economics Directorate
Tel: + 32 2 707 47 86
Fax: + 32 2 707 52 28
Email: f.jacquemin@hq.nato.int

Mr. Jiri Kalasnikov, Expert SCSP
Tel: +32 (2) 401 87 27
Email: Jiri.Kalasnikov@stabilitypact.org





© Special Co-ordinator of the Stability Pact
 for South Eastern Europe
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