Effective National Defense Policy Funding Research Paper

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12. Improved defense funding was witnessed during the democratic regime of May 1999 to May 2017. This increased can be attributed to the need to improve military professionalism and the severity of internal security threats as well as international engagements. The Military Professional Resources Incorporated (MPRI) as well as the British Defense Advisory team (BDAT) were called in during specific periods and instances with an aim of facilitating and further promoting the re-professionalization programme. At this time, the AFN had to be cognizant of the increased internal security operations. This is as a result of insurgency in the NE, herdsmen and farmers clashes, militancy in the Niger Delta and kidnapping amongst other internal threats.

13. Defense funding increased to 58.6 billion in 2011 and 64.9 billion a year later, from N39.9 billion in 2000.[footnoteRef:7] This pattern continued and as at 2007, it stood at N126.3 billion. By 2013, it had risen to N364.16 billion and N375.49 billion in 2015. It further increased to N429.128 billion and N465.87 billion in 2016 and 2017 respectively. From the above figures, it should be noted that the yearly defense funding increase was largely steady. Essentially, this could be attributed to the system of incremental budgeting utilized for budgetary allocation. However, recurrent expenditure took the lion’s share of the defense funding, with capital expenditure getting an insignificant sum. A good example would be the 2014 NA budget. In this case, whereas the capital allocation was N4.89 billion, recurrent expenditure was 127.88 billion. The former was representative of the total defense funding. To make things worse, only 2.29 billion (out of the capital expenditure 4.89 billion allocation) was in actual sense disbursed for the year. This represents percent. Effectively, the procurement of Arms as well as equipment was undermined by the partial capital budget release. This also encouraged the sustenance of obsolete equipment as part of the NA inventory. This has affected the capacity of the NA, having a negative effect on national defense policy and undermining security. [7: ]

DEFENSE FUNDING OF SOME SELECTED COUNTRIES

13. The interactions between defense funding and national defense policy of some countries in terms of capacity to perform were analyzed. The defense funding of Algeria and Turkey was examined so as to draw lessons for the paper.

DEFENSE FUNDING AND NATIONAL DEFENSE POLICY IN TURKEY

14. The Turkey Armed Forces (TAF) is greater than those of both Britain and France in numeric strength, with a total of 514,000 men in service and another 380,000 in reserve.[footnoteRef:8] As a matter of fact, TAF is NATO’s second largest standing force after the United States of America with the world’s 8th largest number of troops in active service.[footnoteRef:9] As SIPRI observes, Turkey defense spending in 2017 was captured as 22.6 billion. This represents about 2 percent of its GDP. This made it one of the biggest highest spenders in the world in 2017. Apart from budgetary allocation, the Turkey Armed Forces have other non-budgetary sources of defense funding. These include, but they are not limited to, returns raked in by private companies operated and managed by the Defense Industry Support Fund (DISF) and the Turkey Armed Forces Foundation (TAFF) 2. The DISF is a scheme to see to it that stable as well as continuous extra budgetary financing of the TAF to enable modernization and development of the Turkish Defense Industry to enhance national security. [8: ] [9: ]

15. The DISF constitutes revenues from levies as well as indirect taxes on gambling, tobacco, and alcohol. The DISF gets up to about $1 billion is also being paid to the fund.[footnoteRef:10] Exception is granted by the conscription scheme to Turkish men of age 28 and above in return for a 18,000 liras lump sum payment.[footnoteRef:11]. Depending on their educational level, all male Turkish citizens who are of age 20 and above are required to engage in compulsory military service for several months. [10: ] [11: ]

16. The TAFF was established in the year 1987 with an aim of further enhancing military strength and minimizing dependency upon foreign entities through the establishment of a national defense industry which has the capability of producing its armament, equipment, and tools. TAFF has the ownership of shares in a number of private corporations (18 to be specific) and no funds are allocated to it by the government. In essence, it generates profit for not only re-equipment, but also modernization of the armed forces so as to promote readiness (in an operational sense). [footnoteRef:12]. The Machinery and Chemical Industry Corporation (MKEK) was established in 1950, and all the funds for its establishment were sourced from the government. As of date, its operations mimic those of a state economic enterprise with 12 facilities and approximately 7,500 staff engaged in the manufacture of various military tools and equipment for both local use and export. According to the Turkish President, Recep Tayyip Erdogan, Tukey exported $906.4 million in military and aerospace products in the first half of 2018, compared with $795.7 million during the same period of 2017.[footnoteRef:13] The statistics which is based on data compiled by Turkish Exporters Assembly, shows that the sector was responsible for 1.1 of Turkeys total export in 2018. This makes Turkey, a net exporter of military equipment. The Vision for 2023 for the centenary of the Republic of Turkey, declared by Erdogan, is a list of goals that includes ranking in the top 10 economies in the world and becoming self-sufficient state in terms of defense.[footnoteRef:14] The realization of this strategic plan will come in handy towards the further enhancement of the effective capacity of the TAF to further contain regional threats. [12: ] [13: ] [14: ]

DEFENSE FUNDING AND NATIONAL DEFENSE POLICY IN ALGERIA

17. South Africa was in 2009 overtaken by Algeria, which claimed the crown for Africa’s largest defense. Over the last 10 year, Algeria’s military spending has experienced a 176 percent increase. In 2013, the total annual spending stood at $10.4. What this means is that Algeria is Africa’s first nation to cross the $10 million mark as far as defense budgeting is concerned.[footnoteRef:15] In 2014, the country’s defense funding increased to $11.86 billion. This is effectively representative of approximately 13.5 percent of GDP. The per capita military expenditure stood was captured as $29710. This high level of defense capabilities is crucial to enhance capacity. Some purchases include German armored vehicles, Italian amphibious vessels, and Chinese self-propelled artillery whose assembly is to take place in one of Algeria’s newly established plants. There was also substantial acquisitions from Russia (which were inclusive of submarines and helicopters).[footnoteRef:16] All this has substantially enhanced Algeria’s army capacity to perform their traditional assigned responsibilities. [15: ] [16: ]

18. Algeria also has a military industrial company which was founded in 1998 and known as Military Industry of Central Direction. It produces military arms, vehicles, weapons, ships, jets, helicopters, tanks and other equipment. Algeria exports its indigenously manufactured weapons to Tunisia, Mali, Niger, Libya, Mauritania as well as Arab states in the Middle East[footnoteRef:17] The exports has really increased the revenue generated from the sale. [17: ]

18. Algeria is heavily reliant on the export of gas and oil - which accounts for approximately 40 percent of the nation’s GDP, 98 percent of its foreign exchange, and 70 percent of the country’s national budget. [footnoteRef:18] This kind of reliance has become the proverbial double-edge sword for the nation.[footnoteRef:19] The recent decline in the prices of oil notwithstanding, the country still has its sights set on its rearmament efforts with an aim of recapitalizing inventory in a way that could strengthen its capacity to deal regional terrorism and insecurity a decisive blow. [18: ] [19: ]

LESSONS FROM THE STUDY

19. The study of Algerian and Turkish examples presents some critical lessons. These are inclusive of the diversification of defense funding sources, military industrial base development, and keeping of a strong reserve force. These will be highlighted below.

20. Sources of Defense Funding Diversification To promote the realization of their goal of being a regional powerhouse, Turkey diversified funding of their TAF. Apart from budgetary allocation, the country has implemented some the TAF funding means that are largely non-budgetary. These are inclusive of returns from TAFF operated firms, funds from the DISF, as well as proceeds from MKEK. Nigeria ought to learn from Turkey’s diversified defense funding sources.

21. Military Industrial Base In establishing MKEK, the TAF facilitated the development of the Turkish defense industry. The MKEK at present has the capacity to produce various military items and equipment including howitzer, mortars, and artillery guns for the Turkish armed forces and exports to approximately 40 countries. In addition… [end of preview; READ MORE]

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Effective National Defense Policy Funding.  (2018, September 18).  Retrieved January 23, 2020, from https://www.essaytown.com/subjects/paper/effective-national-defense-policy-realistic/8540519

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"Effective National Defense Policy Funding."  Essaytown.com.  September 18, 2018.  Accessed January 23, 2020.
https://www.essaytown.com/subjects/paper/effective-national-defense-policy-realistic/8540519.