Qioptiq logo Raytheon Global MilSatCom

BATTLESPACE BOOK CLUB

Web Page sponsored by IT Governance

www.itgovernance.co.uk

————————————————————–
05 Feb 13. Defence Acquisition: Committee Report. The Defence Committee published (5 Feb 13) a Report on Defence Acquisition. The Report is divided between: The problem; Acquisition principles; Solving the problem; The acquisition process; Beyond the White Paper; Measuring success and Risks & unknowns.
Comment: The Committee accepts that there are deep-rooted problems with the present acquisition system, highlighting the decision to change the Joint Strike Fighter variant. Responding to the Report, the Defence Equipment Minister said: “The reform of Defence Equipment and Support will further improve our procurement process. As announced last year, a Government-Owned Contractor-Operated organisation is our preferred option but further analysis is being carried out before a final decision is made.” The Report is available from the Houses of Parliament Shop, as HC 9, for £17:50. (Source: DNA DEFENCE NEWS ANALYSIS, Issue 13/07, 11 Feb 13)

15 Feb 13. Israeli Defense Market Third Largest in the Middle East. Israel has built a self-reliant defense industry in which 70% of the nation’s defense needs are met by domestic procurement.In 2012, the Israeli defense market valued US$13.10 bn, which represented
the third largest military expenditure in the Middle East. During the review period (2008-2012), the Israeli defense expenditure declined at a CAGR of -0.94% but is expected to record growth at a CAGR of 2.97% during the forecast period (2013-2017). The growth can be partially attributed to the US$15.5bn of military aid from the US scheduled between 2013 and 2017; moreover, the continued security threats from Iran, Syria, and other neighboring Arab countries is forecast to result in Israel spending US$71.3bn on defense during the forecast period. In 2012, Israeli defense expenditure as a percentage of its gross domestic product (GDP) was 4.1%, but this is expected to decline to an average of 3.9% during the forecast period due to the refusal of many countries in the Middle East to accept Israel as an independent state and the subsequent threat posed to the security of the nation. Consequently, Israel is expected to focus its spending on the procurement of fighter aircraft, missiles, border security equipment, and communication systems. Israel has built a self-reliant defense industry in which 70% of the nation’s defense needs are met by domestic procurement. Despite this, the Israeli government imported fighter aircraft, engines, missiles, air defense systems, and artillery during 2007–2011. The US accounted for over 92% of Israeli defense imports during 2007–2011, whilst Turkey emerged as the greatest consumer of Israeli defense goods with a 23% share of overall exports of Israel. During 2007–2011, the three key Israeli arms export categories were sensors, armored vehicles, and missiles. (Source: ASD Network)

13 Feb 13. Indonesian Military Modernization Program Stimulates Defense Expenditure. Indonesia’s geographical make-up comprises over 17,000 islands, and there is currently a border dispute with Malaysia, which is another factor fuelling defense investment. The Indonesian defense market, estimated to value US$8.1bn in 2013, is expected to grow at a CAGR of 22.4% during the forecast period (2013-2017) to value US$18.2bn in 2017. The primary stimulator of defense expenditure is the government military modernization program, which was undertaken to compensate for severe military underfunding during the review period (2008-2012). It is currently estimated that the defense budget is capable of satisfying only 52% of the country’s required military defense expenditure. Indonesia is frequently affected by natural disasters, in which the army is usually deployed to assist search and rescue operations. In preparation for future natural disasters, government expenditure is expected to increase in defens

Back to article list