Thursday, July 21, 2011

Slovakia to get rid of tanks

BRATISLAVA - Slovakia's National Security Council has agreed to Ministry of Defense proposals for a new Strategic Defense Review (SDR) that calls on the armed forces to retire their remaining tank fleet. Under the outlines of the SDR, the Slovak armed forces will retain their fleet of MiG-29 jet fighters but suspend use of the T-72 main battle tank. The Slovak Army has 245 of these tanks in its inventory, which were manufactured between 1984 and 1989.
Three models have been proposed for the future Slovak armed forces under the SDR. One would see the defense budget stabilized at 1.5 percent of GDP in order to maintain the armed forces in their current 21,000-strong state. Another would lock the annual defense appropriation at the equivalent of 1.1 percent of GDP, with either the Air Force or Army sacrificing troops to bring the total size of the armed forces down to 16,000. The final proposal calls for continual decreases in defense spending - an untenable proposition for the armed forces, as they already spend 86 percent of their annual appropriation on personnel, leaving equipment to atrophy to the point of obsolescence.
The MoD proposals are to be submitted to the government Cabinet for approval. Slovakia's 2011 defense budget of EUR740 million ($1.04 billion) is roughly equal to 1.2 percent of GDP.

Czech Defense BUdget proposed at CZK 41.5B ($2.38B) - down 5.3%

NEWTOWN, Conn. - The Czech Republic faces further defense spending reductions as a sluggish economic recovery and the austerity measures of a center-right government combine to place pressure on the armed forces. Defense Minister Alexandr Vondra is warning that further cuts to defense imperil the armed forces, which have seen overall spending drop by CZK12 billion ($689 million), or 20 percent, over the past two years.
The Czech Finance Ministry continues to see defense as an area ripe for savings. It has proposed slicing some CZK2.3 billion ($132 million) from the defense budget in 2012, bringing it down to CZK41.5 billion ($2.38 billion). If such a proposal follows through, the level of Czech investment toward defense would plummet from the current 1.15 percent of GDP to below 1.0 percent. The center-right coalition government of Petr Necas seeks to halve the country's budget deficit by 2013; as part of its plan to do this, defense allocations were to be reduced to 1.03 percent of GDP by that year. The Finance Ministry - aware of the corruption inside the Defense Ministry in the past - seems eager to expedite the government's austerity push, which is intended to put the Czech Republic on a path toward accession into the euro-currency zone.
Defense, meanwhile, is fighting a rearguard action against further cuts, arguing that soldiers are leaving the ranks due to the lack of the most basic needs and the imposition of taxes on their retirement pensions and housing allowances. Defense Minister Vondra has pledged to maintain soldiers' salaries, sparing them from budgetary cutbacks. But by doing so, he merely increases the percentage of monies allocated toward personnel rather than equipment modernization programs. Due to the austerity measures, the military is already ceasing operation of 12 Mi-24/35 and four W-3A Sokol helicopters, as well as one Canadair Challenger 601 VIP aircraft. Also, missile troops are being stood down.
Despite having pledged to meet the NATO minimum standard level of investment - 2 percent of annual GDP allocated toward defense - upon its entry into the Alliance in 1999, the Czech Republic is falling farther and further away from its obligations. Like its former partner, Slovakia, the Czech Republic is in danger of becoming a net dependent upon the Alliance for security, rather than a contributor.
Rallying public support for the military is not an option as, in the case of many European nations, matters of defense generally stoke indifference in the population-at-large - unless related to wasteful spending practices. Government support for defense carries with it political implications, too. Scandals such as mafia involvement in unnecessary and costly construction projects for the Defense Ministry in the 1990s, followed by corrupt procurement practices by a lobby of armaments middlemen, have siphoned away any lingering trust in the competencies and practices inside the Defense Ministry. The overpriced purchase of 107 Pandur II 8x8 wheeled armored personnel carriers represents just the latest in a series of politicized controversial procurement efforts by the Czech Defense Ministry.
While still needing to replace much of its Soviet- and Warsaw Pact-legacy hardware, the Czech military continues to face cutbacks to personnel, bases, and procurement programs, all of which expose the Army of the Czech Republic's goal of achieving full operational capability by 2012 to delays. The military is expected to stop purchasing some spare parts and services, and to buy less ammunition and defense equipment. The withdrawal of the last remaining troops deployed to Kosovo and the gradual drawdown of forces in Afghanistan starting next year may help to alleviate some of the fiscal pressures on defense, but the reality is an atrophying military on life support.
Perhaps now would be the time for the Czech Republic and Slovakia to examine some of the cooperative practices undertaken by the Scandinavian nations under the Nordic Defense Cooperation concept. Shared production and procurement of ammunition and other munitions, joint officer training, pooled maintenance facilities - all of these offer potential areas of cooperation. For the respective defense ministries of the two countries, finding efficiencies during a time of austerity is the best bet for salvaging what remains of their withering armies.

Monday, July 11, 2011

Philippines Defense budget for 2012: $2.55B

Philippine President Benigno S. Aquino III has approved the proposed 1.82 trillion pesos (41.85 billion U.S. dollars) national budget for 2012, a senior government official said on Thursday.
The proposed budget is 10.4 percent higher than the current year's, which reflects his commitment to fulfill his "social contract" with Filipinos, according to Budget Secretary Florencio Abad.
"This is a budget that is focused on achieving results: that the dividends of good governance reach the poor in a direct, immediate and substantial way," he said.
The proposed budget is focused on the five key result areas of the Social Contract: anti-corruption and good governance, poverty reduction and the empowerment of the poor, inclusive economic growth, just and lasting peace and the rule of law and integrity of the environment.
Abad said over 30 percent of the proposed budget will go to social services -- basic education, public health and the conditional cash transfer program. About 25 percent of the proposed budget will be alloted to the economic services sector to finance infrastructure and other capital outlays for agriculture, tourism and industrial development.
The general public services sector will receive 17.7 percent of the 2012 proposed budget, while the defense sector will receive 6. 1 percent.
To sustain fiscal consolidation efforts, the share of the debt burden on the national budget will decrease to 20.2 percent. A fiscal deficit of 286 billion pesos (6.58 billion U.S. dollars) or 2.6 percent of gross domestic product (GDP) is targeted in 2012.
Aquino will submit the budget to Congress on July 26, a day after de delivers the State of the Nation Address.

S Korea: MND requests 6.6% budget increase, 33.5T Won for 2012

The defense ministry said on Thursday it has requested an increased budget for next year to ensure better combat readiness for the armed forces.

   In a news release, the ministry said it has called for an annual budget of 33.5 trillion won (US$29.1 billion) for 2012, a 6.6-percent increase from the 31.4 trillion won set for 2011.

   According to the ministry, spending on operating troops and maintaining battle capabilities account for most of the increase.

   "Our request was largely focused on building a military that's ready for battle and can win immediately," the ministry's statement said. "We will also try to improve the welfare of our troops and boost their morale, and to keep pushing for defense reform."

   Of the 33.5 trillion won requested, 4.3 trillion won has been earmarked for fortifying the western islands to better shield them from potential North Korean provocations by bringing in the latest weaponry and improving guard posts. Last month, the military launched a new defense command to protect the five frontline islands.

   Another 3.5 trillion has been set aside to improve the welfare of troops. The ministry said it plans to expand vaccination coverage for new trainees, to open new medical facilities and to improve medical equipment across units. Barracks for conscripted soldiers and off-base living quarters for officers will also be gradually improved.

   The ministry allocated 1.9 trillion won to help avoid a potential security void in 2015, when South Korea takes over wartime operational control of its troops from the U.S.

   "To prepare for the transfer of the wartime control, we will strengthen the command and control structure," the ministry said. "We will also help with the construction of the war game center."

   The U.S. has held wartime command of South Korean troops since the beginning of the 1950-53 Korean War, which ended in an armistice, not a peace treaty. Seoul regained peacetime control of its military in 1994.

   About 28,500 U.S. troops are stationed here as a deterrent against the North. When wartime operational control is handed over in 2015, the South's military will take charge with support from U.S. troops.

   The ministry said more than 3.4 trillion won has been allocated to aid policy decisions as part of defense reform. It said the moves will include opening up new commands or reorganizing existing ones, and increasing spending on defense research and development.

   A set of defense reform bills was approved by the Cabinet in May and was sent to the National Assembly for approval. The reform plans center on ensuring a more efficient command structure and giving the chairman of the Joint Chiefs of Staff more authority to control the Army, the Navy and the Air Force.

   President Lee Myung-bak has asked for the parliament's cooperation in approving the reform bills. Defense reform has been a top policy goal for Lee, especially after the military's botched response to North Korea's two deadly attacks last year.