Vojenské rozhledy / Czech Military Review Nr. 2/2006: 32-39

The Problem of the Privatization of Military Activities and Supply-Side Economics in Defence SectorNonreviewed - Research

Mjr. Ing. Bohuslav Pernica, Ph.D.

The end of conscription (i. e. national service) is accompanied by a dozen of economy implications that ought to be respected. Among others, there is a problem of non-military activities being done by soldiers during their compulsory military service. Supposedly, many of those activities can be performed by private entrepreneurship. One of possible solutions is the socalled "outsourcing". Our Army might buy services and supplies outside the forces, in civilian sector. Similar practices should reduce Army's expenses for labour, outlays for materials, maintenance, etc. Outsourcing directs public expenditures to places where labour and material costs are lower than in the ACR. But, we must not forget, there is one precondition; the public sector must be factually economical, with low expenses in competitive surrounding.

Published: June 15, 2006  Show citation