Security Systems

Army 2020: Reserves Integration

Posted on June 25, 2013 at 9:02 am

RUSI Newsbrief, 24 Jun 2013 By Sam Evans

The 2010 Strategic Defence and Security Review (SDSR) sees the British Army delivering a scale, range and duration of military tasks which can not be performed by a discounted regular component alone. In delivering these requirements from a future force of 82,000 regular and 30,000 trained reserve personnel and to be prepared for the challenges of an unpredictable future, the military has needed to adopt a fundamentally new strategy to the way it is structured to satisfy its tasks.

From first principles, the military 2020 project designed a totally integrated force in a position to fulfilling three main roles: contingent capability (for deterrence and defence); UK engagement and homeland resilience; and overseas engagement and capacity building. Most importantly, it concluded that the reserve could not be organised solely to supplement the regular force for giant-scale intervention. This represents a serious shift from the present configuration of the Territorial Army to a model where elements would typically undertake delivery of military outputs, in appropriate roles and readiness, generated and maintained by force elements, including:

  • Capabilities not requiring significant or complex collective training to keep readiness, comparable to sustainment roles in fuel support, transportation and the already well-established provision of medical services
  • Specialist capabilities which it’s not possible, necessary or cost-effective to preserve completely within the regular force structure (as an example, medical, cyber, intelligence and language specialisations)
  • Capabilities for longer-term institutional resilience, providing an important ability to regenerate a bigger army in times of need.

The British Army of 2020 will therefore have a better structural reliance on its reserves; they’ll become an indispensable component to the land force. This represents a fundamental shift within the purpose of the Territorial Army, which, to raised reflect this crucial change in role, is proposed to be renamed the military Reserve.

Recent operations have seen the military deploy some 23,000 reservists primarily as individual augmentees, specialist reserve capabilities (consisting of medics) and, from time to time, sub-units. One day there’ll be a demand to carry formed platoons, squadrons and now and again regiments from the Territorial Army at appropriate readiness, in order that the military can meet the tasks set within the SDSR. To deliver the military 2020 proposition, therefore, the assured availability of those capabilities, sufficiently trained and at a suitable level of readiness, is essential. That’s significantly more demanding than training individuals, particularly when a reservist’s time for training is restricted.

The requirement to routinely generate this level of collective capability represents a huge re-orientation for the Territorial Army and for the military as an entire; delivering the integrated army could be demanding.

The integrated force would be necessary to future success on operations at home and overseas. Delivering this force shall be depending on setting both the physical and conceptual conditions from the outset.

For the military to exist, it must train. This is applicable equally to the reserves, which may only deliver its contribution to the integrated force on a long-lasting basis whether it is trained, equipped and ready similarly to its regular counterpart.

Sustaining this contribution would require the Territorial Army to be routinely given tasks and operational deployments that experience genuine merit, relevance and appeal. Many will see reservists forming an integral section of a typical unit; equally, for less complex tasks, a reserve battalion could form the root of the deployed unit, with its regular partner providing augmentation. Such opportunities can play to a few of the innate strengths of the reserves, comparable to homeland resilience, overseas engagement and capacity building. There’s a natural tension with the standing forces; efficient and effective solutions might want to strike a balance that ensures prospects, professionalisation and opportunity around the force.

Underpinned by the army’s core values, future terms and stipulations of service will make sure the recruitment and retention of high-quality personnel – in line with a suitable balance between liability for and commitment to service – for a reserve that could expect greater routine use. The variety of tasks for which reservists may be mobilised might be better aligned with those in their regular counterparts. The chance of an entire career – balancing a field-focused force with broader prospects of employment around the integrated force – requires a more structured career-management model better exploiting the civilian knowledge, skills and experience of the reservist for the military. A comprehensive individual training and accredited education system might want to develop more appropriate knowledge, both to a reservist’s specific role and for wider employability. Additionally, the army education system for regulars must better understand the reserves as an integral part of the integrated force.

The Army 2020 future training model may even must accommodate the requirement to coach a single force with the time a reservist has, and is resourced, to coach.

Physical integration between reserve and regular units on a largely geographical basis, for training and for deployment on operations as a single force, is a necessary design principle and outcome of Army 2020. Formalised pairing between a customary and a reserve unit often is the important first step that sets the conditions to deliver integrated capability. It’ll facilitate coherent programmes of activity, deliver more efficient and effective training, and make sure better use of finite equipment, infrastructure and administration. It’s going to forge better links to local communities, to employers of reservists and to these leaving the regulars. Establishing the pairing arrangements, together with clarity of roles and locations, provides the conditions for the proper people to be recruited into the precise posts within the right portion of the rustic.

Pairing, and the revitalisation of the reserves, also offers an important opportunity to have interaction differently with the society from which the army recruits and to which it must consistently demonstrate relevance, utility and price.

The army is already conducting a sequence of pilot schemes to check the pairing and integration concepts. These studies may also help to raised define the army’s doctrine for the integrated force.

While noting the importance of a few of the changes required to generate this integrated force, two have to be viewed as fundamental to the successful integration of the reserves into Army 2020.

If the military is to genuinely operate within the fully integrated way envisaged by Army 2020, a cultural shift is needed by all parties – not just around the army, but around the defence establishment and more widely across society. This requires the interests of one or more key parties to be addressed and collectively managed and led. This has to be refrained from placing undue burdens on personnel – prejudicing the army’s outputs for defence and the nation, while continuing to retain the best reputation of the British Army. This would not be easy to reach. There’s the true risk that the myriad of change facing the military over the following couple of years – the top of combat operations in Afghanistan; redundancies of regulars; unit deletions and mergers; withdrawal from Germany; and basing changes – will disenchant and disenfranchise the very people required to deliver it.

The premium for increased reliance at the reserves is that their service ought to be enabled and enduringly supported in a method not previously done, including the availability of support to reservists’ families and employers. Society at large need to be given the means to higher understand, recognise and support this. While the reserves might be small as a proportion of the national workforce, employers must see greater equity of their relationship with the military. Currently, many employers don’t view the proposition as being balanced from their perspective. Benefits, inclusive of accredited skills and bigger predictability of educating and deployments, will go much of ways to re-balancing their view of the British Army’s taking advantage of very tangible and value-effective manpower gains.

The potential reward for achievement is awfully significant. Everyone within the army and wider defence establishment, whether regular or reserve, has a responsibility to make the fully integrated British Army a reality.

Brigadier Sam Evans
Assistant Chief of Staff Reserves, Army Headquarters.

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Rouhani, Obama, and US-Iran Diplomacy: A Nuclear Thaw or a False Start?

Posted on June 23, 2013 at 12:32 pm

RUSI Analysis, 1 Oct 2013 By Shashank Joshi, Research Fellow

With the primary signs of a US-Iran thaw, there are great hopes – and great cynicism. Yet while the optimists might be overstating the scope of any deal, the cynics are wrong to dismiss Hasan Rouhani’s rhetoric.

Hasan Rouhani

In the top, there has been no handshake – but there has been a phone call. Iranian President Hasan Rouhani first rebuffed the White House’s offer of a historic meeting with President Barack Obama but, previous to departing the us, initiated a telephone conversation that was thin on substance but rich in symbolism. That decision, in addition to Rouhani’s relentlessly conciliatory tone, has prompted euphoria amongst some, who foresee a geopolitical re-alignment as significant as President Richard Nixon’s opening to China in 1971, and alarm in others, who see Rouhani because the mask behind which the Islamic Republic pursues its unchanged objectives. How should we assess his trip, and the prospects for nuclear and broader diplomacy? Below, I suggest four points that emerge from the past week’s diplomatic drama.

Has Rouhani Checkmated Iran?

First, the notion that Rouhani has ‘checkmated’ Obama – as Fouad Ajami put it  – is untenable. The Obama administration has not just given nothing away, but continues to impose upon Iran the foremost punishing sanctions ever applied to a would-be nuclear proliferator. Iran’s oil exports have more that halved in volume over the last year, inflation is around 60 percent, and over 1 / 4 of Iranian youth are unemployed. The concept Obama is all carrot and no stick is egregiously wrong. On this regard, the chance cost of discussion is negligible.

Is Rouhani All Talk?

Second, some suggest that Rouhani is offering nothing greater than empty words – a ‘smiley campaign’, as Israel’s intelligence minister put it – but no concrete actions. This view is usually mistaken. Rouhani has already freed greater than 80 political prisoners, lots of whom were arrested through the 2009 Green Revolution. The Islamic Republic remains an autocratic regime which holds large numbers of political prisoners and commits grave human rights abuses all the time. However the prisoner release is an indication that Rouhani is willing and ready to at the least partially follow through on pledges he made on his campaign trail.

With respect to the nuclear dispute, Rouhani most crucial action thus far have been to take away the nuclear file from the Supreme National Security Council – that’s more easily influenced by hardliners – and handed it to the more moderate foreign ministry, run by Mohammad Javad Zarif. Western diplomats see Zarif as reasonable and pragmatic, a much cry from previous nuclear negotiator Saeed Jalili.

Rouhani couldn’t have changed these arrangements without the approval of Iran’s Supreme Leader, Ali Khamenei. Indeed, the Washington Post’s well-connected columnist David Ignatius reported last week that ‘Western intelligence reports’ confirmed Rouhani’s claim to be ‘fully empowered to finalize the nuclear talks’. Obviously, this claim can only be fully tested on the negotiating table.

Yet additionally it is important to recognise that Rouhani’s supposedly empty rhetoric – his praise for Americans, enthusiasm for dialogue, and exhortations to the Iranian Revolutionary Guard Corps (IRGC) to remain out of politics – shouldn’t be without domestic political cost. If this round of diplomacy involves nothing, Rouhani should be severely depleted of political capital and Khamenei will happily let him twist within the wind. Words are never enough to strike a deal, but nor should they be discounted too flippantly. They show that Rouhani is willing to anger domestic constituencies in pursuit of his agenda. That may be a positive sign.

Are the usa and Iran Reconciling or Accommodating?

Third, any deal that transpires may be a nuclear deal. Folks who envision a broader US-Iran rapprochement, including diplomatic normalisation and consensus on security issues around the region (e.g., Iran’s support for Hezbollah, or america military presence inside the Persian Gulf), could be sorely disappointed. The grand bargain that Iran proposed in 2003 is history, and regional events have rendered its terms moot. We must always recognise that Rouhani’s mandate from Khamenei is sort of certainly a circumscribed one.

Of course, any nuclear deal may widen the parameters of the potential and create spill-over effects onto other issue-areas. But this may be incremental and modest. Perhaps the likeliest area for such spill-over is Syria. Some officials – including the French foreign minister – have suggested that a US-Iran dialogue could facilitate Iranian participation in a Syrian peace conference (the so-called Geneva II). To the level that here is so, the method is unlikely to incorporate those most directly answerable for Iranian policy inside Syria i.e., the IRGC.

Is Obama Sacrificing Israeli Interests?

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International Defence Engagement: British and US Experiences

Posted on June 23, 2013 at 8:01 am

RUSI Newsbrief, 24 Jun 2013 By Scott Cline

Defence engagement, a catch-all term for non-operational military activity by which to succeed in influence internationally, is gaining momentum as a core military task for both the U.S. and the united kingdom. The explanation for this is often the will, in an age of fiscal constraint, to derive greater utility from the military: now not can a force simply drill in barracks while awaiting the following conflict. Furthermore, the largest lesson learned in Iraq and Afghanistan is that victory can’t be achieved through brute force alone, with defence engagement increasingly viewed as a prerequisite for understanding all aspects of a conflict. Indeed, by working proactively to deal with the roots of conflict, it’s hoped that this process can obviate the will for costly land campaigns.

To achieve such outcomes, numerous goals for defence engagement has been identified. These include demonstrating commitment to a partner country, establishing enduring relationships with military and political leaders, improving the host country’s ability to address its own internal security, increasing its willingness to take part in friendly coalitions, enhancing mutual understanding, reducing the opportunity of strategic surprise and the likelihood that aggressors miscalculate participating countries’ capabilities, and lengthening responsiveness to crises.

With limited experience to attract upon, whether these goals will be reached is still seen, and could mostly depend upon the extent of investment within the se processes. To this end, in the current fiscal context, the usa and British armies are exploring new ways of executing defence engagement, specifically by using dedicated military units and personnel, and by better aligning military outputs with strategic interests.

To satisfy the increased policy demand for defence engagement, america Army, for instance, has refreshed its Building Partner Capacity doctrine and established Regionally Aligned Forces as section of its force-generation model to support the US’s six Geographic Combatant Commands (GCCs) – the Africa, Central, European, Southern, Pacific and northerly Commands. Africa Command is the primary GCC to receive a dedicated army brigade, which it can direct in support of its Theater Security Cooperation Plan. Some 140 training events in thirty-four African countries are scheduled in 2013. Future force alignment will involve the alignment of brigades to Europe and the Pacific, of division headquarters to Latin America, North America, Europe and Africa, and of corps headquarters to the Pacific and Middle East. Anticipated activity in 2014 could exceed 5,640 discrete events in 162 countries.

Such engagement is simply not new to america Army. The National Guard’s State Partnership Program (SPP), for instance, has partnered all fifty US states with sixty-five countries in Europe, Africa, Asia and South America to conduct training over the process its twenty-two-year history. Though applauded by the GCCs, the SPP has not been without its problems. A 2012 congressional audit found systemic issues of goals and progress measures. Furthermore, the alignment of activity to strategic objectives needs refreshing: of the $7.1 million spent by the GCCs on SPP activity in 2011, $4.46 million was dedicated to Europe while only $225,000 (3 per cent) was directed to Africa.

In addition, america has no plans to habitually align brigades with specific regions, a measure which might contribute greatly to building relationships and extending understanding. The British Army, then again, is examining this sort of possibility.

Indeed, having laid out its International Defence Engagement Strategy alongside the 2010 Strategic Defence and Security Review, in 2013-14 the British Army will conduct a pilot project involving the regional alignment of 1 of its existing brigades, the result of that may determine the way other brigades are utilized in the longer term. Such alignments should not as expansive as those of the united states: brigades can be assigned to particular African regions rather than the whole continent, for instance, potentially making an allowance for more targeted activity.

Yet decisions must still be made as to how long personnel should remain with these units to be able to build enduring relationships. And likewise, there’s the difficulty that these brigades will retain responsibility for standing commitments (for instance, in Cyprus), UK resilience and rotations on longstanding operations, potentially diluting their talk about defence engagement.

Furthermore, while Regionally Aligned Forces may allow the u. s. and UK to accomplish probably the most key goals of defence engagement – including building partner capacity, showing commitment to host states and lengthening responsiveness to crises – they’re unlikely to contribute to all of them. It’s because non-persistent activity, despite the fact that conducted regularly, will at best only achieve familiarisation with the objective regions; building lasting relationships would require greater depth.

Here the British Army has essentially the most ground to hide, with america Army making the most of its Foreign Area Officer (FAO) programme. FAOs are selected after eight to 10 years in service (following company command) after which follow the career stream with specific education and management on the topic of their region (for instance, as embassy attachés, in military equipment sales, as regional desk officers, or as provincial reconstruction team leaders) for the rest of their career. Indeed, in 2005, america Department of Defense (DoD), by now aware of the detrimental effect of the shortage of cultural and regional awareness in Iraq and Afghanistan, directed all services to extend FAO numbers and commenced monitoring the effectiveness of the programme in supporting strategic objectives. Since then, the army’s programme has grown from 1,414 to two,046 officers – a forty five per cent increase – with further growth expected, especially within the GCCs. A key to the programme’s success is the delineation of FAOs and other non-command track jobs within separate career streams, with occupants of those positions boarded separately for promotions with DoD guidance that selection rates must be equal to these for command track officers.

Though the British Army offers quite a number FAO-like positions (including the jobs of defence attaché and regional desk officer), recruitment is just not based upon a holistic view of the necessity for specialized officer development over the long run. Indeed, attaché positions are generally filled by those not selected for higher command posts; this must change. In recognition of this, UK planners are exploring new career structures which may offer similar benefits to the united states model. But for the British Army to draw its best officers into this programme, it must provide specialised training and guarantee promotion at comparable rates to basic arms officers.

Beyond this, the likely success of defence engagement is associated with several key enablers. The primary, and predominant, is that its outputs are associated with strategic interests. Indeed, with funding remaining scarce, it’s essential that both the U.S. and UK ruthlessly justify their engagement in certain activities, eliminating that that is now not relevant and expanding that that is most pertinent. Closely tied to it is the will for activities to manifest within an entire-of-government effort. For instance, if the UK’s long-term goal is to contribute to regional security, military training may be but one portion of the method, with targeted DfID aid, Foreign Office engagement with regional security fora, and Stabilisation Unit efforts to extend ministerial capacity likely also required.

Finally, though upstream conflict prevention is more cost effective than protracted combat operations, it’s still not free. Current UK plans acknowledge this, but state that any budget increases for engagement will come from existing MoD funds, thus potentially coming on the cost of contingent capability. A modest increase of £25 million over the following four years have been allocated to UK defence engagement, but is that this enough? Although defence engagement and war-fighting are complementary, they don’t seem to be fungible, with the chance cost of each dollar or pound spent on overseas flights to undertake training being one less round of ammunition at the training range. And because it’s British and American combat capability that makes other nations like to partner with them, trading this for increased defence engagement defeats the point. Clausewitz’s view that ‘the end for which a soldier is recruited, clothed, armed, and trained … is barely that he should fight on the right place and the fitting time’ remains valid, and the united kingdom especially must proceed cautiously given its already low numbers of dedicated combat troops.

As defence engagement matures, the united states and UK (in addition to the ecu) will inevitably find themselves working within the same places. Occasionally this could be unavoidable, because the goal of such engagement could be to acquire concessions from the partner nation, comparable to overflight rights. At other times, however, when the target is solely that of enhancing the partner’s security capacity, training must be rationalised to stop unnecessary duplication, with participating nations dividing their labour in step with comparative advantage and even melding their training teams together.

Although bilateral deconfliction between the united kingdom and US may well be sufficient within the short term, the possible long-term benefits of using NATO as a defence-engagement clearing house also needs to be explored. First, this might allow the united kingdom to exercise leadership within NATO – a stated policy goal. Second, it’s going to keep NATO countries working together post Afghanistan: the NATO Training Mission – Afghanistan has evolved into a good example of firm capacity building and it’d be wasteful to lose this capability. Third, it will probably increase the forces available to undertake defence engagement: with such activity inherently built around small training teams, this may allow nearly every NATO country to take part, despite ever-decreasing force sizes. And eventually, it might optimise the sharing of information across NATO, as a precursor to future operations. NATO remains the popular alliance for the united kingdom and america and the notice gained by all members from defence engagement would only strengthen the Alliance’s utility.

Such optimism, however, has to be moderated and defence engagement ought not be viewed as risk-free. Domestic and regional balances of power are frequently highly unstable and any inputs into such dynamic systems could have unforeseen consequences. The upward push of Japan as an army power between 1859 and the second one World War was an instantaneous results of the learning and kit provided by the united kingdom and France. The alumni folks and British training programmes include such notables as Idi Amin (the despotic former president of Uganda), Amadou Sanogo (leader of the coup in Mali in 2012), and Manuel Noriega (the regional drug lord and previous military governor of Panama, deposed by US troops in 1989). Meanwhile, the upward push of the Taliban is directly associated with the arming of the mujahedeen to accomplish the near-term goal of defeating the Soviet Union in its 1979-89 war in Afghanistan. The history of defence engagement is replete with examples of the so-called ‘law of unintended consequences’.

Such experiences speak to the vital must treat defence engagement not as a brief-fix solution, but as an extended-term process requiring persistence and regularity. Within these parameters, a properly funded and structured army contribution to defence engagement can play a crucial role in shaping and understanding the international environment. The secret’s to prevent pushing the method too far and treating defence engagement as a panacea. While it can help to avoid crises, it’s far, unavoidably, a complementary approach that won’t preclude the necessity to react to contingencies or perform enduring operations when required.
 
Lieutenant Colonel Scott Cline
US Army Strategist (FA59), Exchange Officer to British Army General Staff.

The views expressed listed here are the author’s own and don’t necessarily reflect those of the Ministry of Defence, the dept of Defense or the other institution with which the writer is associated.

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The Challenges and Opportunities in Developing an Indian Ballistic Missile Defence System

Posted on June 21, 2013 at 10:24 am

RUSI Defence Systems, 19 Sep 2013 By Avnish Patel

China’s aspirations for global power status and its military modernisation programme, in addition to other regional strategic alliances have given India’s missile defence programme greater credence.  Avnish Patel reviews India’s nuclear capabilities

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Sweden’s Defence-Policy Malaise and Why it Matters to Britain

Posted on June 21, 2013 at 10:13 am

RUSI Newsbrief, 24 Jun 2013 By Matthew WillisWhen it involves the viability of a country’s defence policy, there may be nothing unusual about disagreement between the analytical community and the govt.. Seldom, however, are the edges in as thorough disagreement as they’re in Sweden, where a transformation in strategic outlook, an intensive reform programme, a shrinking defence budget and a high operational tempo have all converged. While Defence Minister Karin Enström maintains that Swedish defence is under control, others – in Sweden and beyond – say it’s in meltdown. As is frequently the case, as a matter of fact somewhere in between.

Other countries are watching Sweden closely, especially Finland – its non-aligned neighbour – and the Baltic states, which still look to it for backing in an unpredictable neighbourhood. Britain must be watching too. London has identified the ‘like-minded’ countries of northern Europe as key allies in defence and other areas of policy. Within the broader strategic context of Europe’s dwindling defence capability, it cannot afford to work out a key regional stalwart lose its way.

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The Domestic Deployment of the British Army: The Case for a 3rd Force

Posted on June 19, 2013 at 12:22 pm

RUSI Journal, Jun 2013, Vol. 158, No. 3 By Marc Waring
Military Aid to the Civil Power was employed sparingly, except Northern Ireland and a few niche commitments, for far of the decade, yet the requirement for it remains. Western democracies corresponding to the united kingdom maintain the power to deploy their troops on home soil as a final resort, when civilian authorities are overwhelmed or exhausted. The riots of August 2011, as an example, prompted requires the deployment of the military. Marc Waring examines whether the military continues to be the main appropriate force to help the police in extremis public-order situations or if it is time to determine a ‘third force’, sitting between the police and the military.

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South Korea’s Nuclear Ambitions: Between a Rock and a tough Place

Posted on June 19, 2013 at 8:23 am

RUSI Newsbrief, 3 Sep 2013 By Amelie SundbergThe US-South Korean bilateral nuclear-energy agreement have been a source of continuing, if forcibly repressed, tension within the two countries’ very public alliance. The present agreement – signed in 1972 under Section 123 of the 1954 US Atomic Energy Act and revised in 1974 – stipulates that South Korea must import US nuclear material and technology under effective safeguards, and requires prior US consent for reprocessing or enrichment activities regarding the agreement. Now South Korea, under President Park Geun-hye, hopes to renegotiate this arrangement in favour of a ‘blank cheque’ granting permission for South Korea to have interaction in civil uranium enrichment and the reprocessing of spent fuel.

This is a crucial issue for Seoul, provided that uranium enrichment would expand its nuclear exports in keeping with its growing status on earth nuclear market, and reprocessing would help to administer a looming crisis of nuclear-waste storage. Indeed, rhetoric surrounding its nuclear ambitions is increasingly couched in nationalist terms, reflecting perceptions that this can be a matter of national sovereignty.

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Transnational Organised Crime and Security

Posted on June 17, 2013 at 1:55 pm

RUSI Journal, Aug 2013, Vol. 158, No. 4 By Emma De Angelis

In the last issue of the RUSI Journal, the thing series on transnational organised crime and security interested in a case study, gazing the challenge posed by drugscartels in Mexico and providing us with a compelling view on how organised crime can threaten the safety fabric of a single country. On this issue, Peng Wang takes an analogous in-depth method to a case study, with a minutely detailed assessment of the resurgence of Chinese organised crime during the last 20 years. His analysis breaks down this increasingly worrying phenomenon into three overlapping levels, scrutinising the activities of criminal organisations with mainland China, the cross-border criminal flows within the Greater China region and ethnic-Chinese organised crime within the UK. This three-level study captures the intricacies of the transnational, globalised nature of those groups’ structures and networks, providing an invaluable resource for those wishing to higher know how Chinese organised crime flourishes at home and overseas, and the way it is usually countered.

 

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Respite from the Storm? Defence and the 2013 Spending Review outcome

Posted on June 17, 2013 at 9:34 am

RUSI Analysis, 28 Jun 2013 By Professor Malcolm Chalmers, Research Director / Director, UK Defence Policy Studies

The Spending Review, announced on Wednesday, has surprised the numerous commentators who thought defence capabilities would face further significant cuts. The Ministry of Defence has achieved a settlement it really is substantially better than could have been expected.

Ministry of Defence Plaque 2                                                                                                       

This year’s Spending Review, the result of that have been announced on 26 June, was potentially fraught with risk for the Ministry of Defence (MoD). The 2012 Autumn Statement made clear that both largest spending departments – Education and Health – would continue to have most (and in Health’s case just about all) in their budgets shielded from real-term cuts. Other departments, consequently, would need to share the pain of meeting the Chancellor’s tough targets for further spending cuts in 2015/16. Because the largest department not protected by a Treasury ‘ring fence’, the MoD gave the impression to be within the firing line for further significant cuts.[1]

Given this place to begin, the Ministry of Defence has achieved a settlement that’s substantially better than could have been expected. The total ‘flat cash’ settlement (Total Departmental Expenditure Limit (DEL) spending falling from £32.7 billion in 2014/15 to £32.6 billion in 2015/16) just isn’t so different from the ‘near-flat cash’ settlement within the 2010 Spending Review (Total DEL rising from £32.9 billion in 2010/11 to £33.5 billion in 2014/15). In real terms, the two.0% real reduction announced for 2015/16 is roughly corresponding to the 7.5% real reduction over four years that was announced in 2010 (which equated to a median 1.9% annual reduction).[2]

Of the complete £74 billion of cuts made because of the 2010 Review, however, greater than £51 billion would was necessary despite the fact that the defence budget have been maintained in real terms throughout the decade as much as 2020.[3] The 2013 Spending Review, against this, started with a forward defence plan through which commitments and budgets were broadly in balance. Here’s the major reason behind why the MoD have been capable of avoid a repetition of the kind of painful decisions (sharp reductions in personnel numbers, gapping of vital capabilities) that resulted from the 2010 SDSR.

The MoD’s position was helped by two further decisions inside the early stages of the Review. First, as a result of Government commitment to at least one% annual real growth inside the equipment budget, the objective for reduction within the Resource Budget was calculated only in connection with its non-equipment portion (that is just over 70% of total Resource Departmental Expenditure Limit – DEL). Second, the Treasury’s initial saving target for the MoD non-equipment resource budget was set at only 5% in real terms, compared with up to 10% for other non-ringfenced departments. Taking these two decisions together, the Treasury’s target for the MoD resource budget as an entire was for a genuine reduction of around 3.3% from 2014/15 levels.

Yet the MoD faced another challenge. The 2012 Autumn Statement, published in December 2012, had announced an extra £490 million reduction in MoD’s 2014/15 resource budget;[4] and the Treasury insisted that the adjusted 2014/15 figure may be used because the baseline for the 2013 Spending Review. Moreover the three.3% real reduction requested by the Treasury, therefore, the MoD needed to discover a further £490 million saving for 2015/16. Together, these two reductions would have required the MoD to discover around £1.4 billion in savings in its planned 2015/16 resource budget.

Attempts to transfer some elements of the MoD budget to more protected departments (equivalent to DFID, Health or Education) came to nothing, despite considerable speculation and commentary. Instead, the important thing to the MoD’s ability to minimize the level of its required savings was that it was in a position to argue successfully, over the past weeks of the Spending Review, for a commitment to no further reduction in service personnel, beyond those already under way on account of previous plans.

This in turn was a major the reason for this is that the MoD was capable of persuade the Treasury to minimize the extent of planned savings in its resource budget to £875 million, around £500 million of which was a carried-forward savings requirement due to the revised 2014/15 baseline. Some further reduction (corresponding to a 2.3% real terms reduction in total Capital DEL) was agreed within the non-equipment part of the Capital DEL budget. The MoD therefore needed to find just over £1 billion in savings in total, corresponding to 3.4% of the entire Departmental Expenditure Limit. This equated to a complete real reduction of two.0%, when measured against the revised 2014/15 baseline.   

In principle it usually is argued that, purely relating to the possible effects on overall capability, it doesn’t make sense to exclude service personnel numbers from scrutiny for possible savings. The political effect of the commitment to not make savings on this area, however, was to strengthen the case for moderation within the MoD’s overall budget settlement.

The MoD’s relative success can also have reflected a much broader Government preference for security budgets, given growing concerns over the impact of the Arab awakenings, new cyber threats, and other related issues. The safety and intelligence agencies benefited from this shift in mood, receiving real terms increases in both their capital and resource budgets. The commitment to the UN’s 0.7% target for aid have been maintained for an extra year, ensuring real terms increases for DFID (1.1% in its resource budget, 26% in its capital budget). Counter-terrorism budgets in the house Office have also been protected. Of the major security departments, only the FCO has lost out, and faces further real cuts in 2015/16 of 6.3% in resource spending and 1.8% in capital spend.

The MoD’s place within the departmental pecking order remains below those given to health and schools. As in 2010, however, it has retained a position it is a lot better than the house Office, Justice Department, local government and business. The reduction within the MoD resource budget (1.9%) is, thus, slightly more favourable than the two.5% reduction within the total government DEL resource budget.[5]

Challenges

The challenges facing the MoD resulting from the Spending Review were substantially reduced by the choice to exclude spending on new equipment procurement, around £7.5 billion of the whole budget, from the method. It’s going to, in spite of everything, was counterproductive to incorporate procurement in one year review, given MoD’s past ability to flex such spending between years. Any move on this direction, therefore, might have been step one in a slippery slope towards previous bad practices. At this Spending Review, however, the MoD has resisted this temptation.

The decision to not cut service numbers has also meant that the £9 billion of annual spending on service personnel have been largely off limits within the seek economies. Around £100 million was saved on account of the choice to restrict service pay increases to at least one%, significantly below the former planning assumption. Over again, as over the four years of the 2010 Spending Review, the call to implement a regime of real salary reductions around the public service have been an enormous cause of why capability reductions are less severe than they could otherwise had been, given the dimensions of budget cuts being made.

Because of this ‘internal ring fence’ on two key components of the MoD budget (together accounting for around 50% of total spending), other parts of the budget have needed to take reductions which are significantly higher. The total reduction against previous MoD plans, as explained above, was just over £1 billion (similar to 3.4% in real terms). However the agreed reduction in other spending (excluding service personnel and new equipment procurement) will amount to nearly £1 billion in comparison to previous plans, a true reduction of around 6% in spending in these unprotected categories. 

On the capital side, the MoD has accepted a discount of just over £200m in its plans for non-equipment spending, primarily construction spending around the defence estate.

On the resource side, there are three further main sources of savings:

  • First, the MoD will take £350m from planned spending of £7.5bn on equipment support (repair and upkeep of existing kit). Here is seen as achievable at the basis of plenty of pilot studies conducted by the MoD in preparation for the Spending Review. It really is in keeping with the findings of the NAO study at the Equipment Plan, which suggested that previous MoD cost estimates at the support budget were less robust than those for equipment procurement.[6]

    Given the weaknesses in existing procurement arrangements identified within the Government’s recent White Paper,[7] it is still seen whether the prevailing Defence and gear Support organisation would be ready to deliver these savings without adversely impacting on capability. The timing of the mandatory savings implies that they’re going to must be achieved before any reorganisation, thanks to proposed reforms, is ready to be of assistance.

    The reduction in 2015/16 equipment support spending signifies that the govt is unlikely to attain 1% real growth in total equipment spending in that year. Importantly, it also lowers the baseline from which 1% real growth in equipment spending for subsequent years is calculated. The Spending Review has reconfirmed the Government’s commitment to at least one% annual real growth in equipment spending after 2015/16. The Spending Review reduction in support spending, however, suggests that the funds earmarked to satisfy the objective in 2016/17 and beyond shall be lower than they’d otherwise were.

  • Second, around £100m could be saved from the £2.5bn annual budget on civilian pay. Today, it’s not expected that the reduction in civilian posts on account of this Spending Review may be greater than several hundred. This number could increase as a result further efficiencies generated by Government Procurement Service work on common goods and services (see below), or if civilian employees are transferred to other government departments as element of this process. After a period of 5 years wherein MoD civilian numbers are planned to fall by almost 30,000, reductions in this more modest scale constitute a totally significant flattening of the downwards curve.
  • Third, around £300m are via be saved from greater efficiencies in spending on IT and a variety of other goods and services. Cabinet Secretary Jeremy Heywood have been closely concerned about estimating the possibility of generating such savings, using the expertise and negotiating power of the federal government Procurement Service (GPS) to take action at the MoD’s behalf. Both the MoD and the Treasury are convinced that such savings may be made. But issues remain as to how quickly such savings will be generated, and what the unintended consequences (including on military capability) can be from what’s going to be a major reorganisation. The belief is that the organisation which will control this part of its budget (i.e. the GPS) should bear the financial risk (and/or benefit) involved. But some work continues to be done to explain how this arrangement will work intimately.

The 2013 Spending Review has therefore left the MoD with a chain of challenging tasks over the subsequent two years, especially within the areas of apparatus support and non-defence-specific goods and services. By focusing required savings largely in these two areas, the MoD have been ready to protect the hot equipment budget, and to take a respite from from now on reductions in service personnel numbers. Whether or not there’s some impact on military capability due to planned efficiency measures in support spending, therefore, the result of this Spending Review have been a lot better for the MoD than might have been anticipated when it all started.  

Notes

[1] Malcolm Chalmers, ‘Mid Term Blues? Defence and the 2013 Spending Review’, RUSI Briefing Paper, February 2013.

[2] The Spending Review settlement led to a 1.9% real reduction within the MoD’s resource budget (Resource DEL) and a 2.3% cut in its capital budget (Capital DEL). HM Treasury, Spending Review 2013, Stationery Office, June 2013, pp. 10-11, 60. For discussion of the 2010 Spending Review and the MoD, see Malcolm Chalmers, ‘Unbalancing the Force? Prospects for UK Defence after the SDSR’, Future Defence Review Working Paper 9, November 2010. The end result for the 2010 Spending Review period will differ somewhat from the 7.5% plan, due to changes in spending plans (notably within the 2012 Autumn Statement) and in projected inflation rates.

[3] Malcolm Chalmers, ‘Looking into the Black Hole: Is the united kingdom Defence Budget Crisis Really Over?’, RUSI Briefing Paper, September 2011, p. 4.

[4] HM Treasury, Autumn Statement 2012, Stationery Office, December 2012, p. 58.

[5] This excludes Special Reserve Spending, by reason of fall from £1.8 billion to £1 billion. Spending Review, op. cit., p. 10.

[6] See Malcolm Chalmers, ‘Mid-Term Blues’, op. cit., for further discussion.

[7] Ministry of Defence, Better Defence Acquisition: improving how we procure and support defence equipment, Cm 8626, Stationery Office, June 2013.

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RUSI’s Trevor Taylor Gives Parliamentary Evidence on Defence Implications of Possible Scottish Independence

Posted on June 15, 2013 at 6:21 pm

RUSI News, 18 Jun 2013

Trevor Taylor, RUSI Professorial Research Fellow, spoke to the home of Commons Defence Committee, outlining the impact Scottish independence would have at the UK defence procurement.

More information here | More analysis on Scotland and defence

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