Proper Economic Policy in MoD Department and Problems with Its Implementation

The demands for transparency, economy, efficiency and effectiveness of public expenditures in the Czech Republic are increasing. In fact, this kind of economic policy in the forces has been followed since we joined the EU in 1994, but without much success. Its implementation has not achieved its goals. Some factors lying behind the failure of this policy are showed in this article, as well as some remedies proposed by the author, so that the readers could understand the topics and consequently they support implementation proper economic practice within the Czech Armed Forces. The author is a supporter of wide economy education in defence department, namely for key personnel (units commanders, chiefs of staffs, directors of institutions) and their subordinated personnel preparing materials for materiel allocation. Among others, Mr. Pernica underlines the underestimation of proper motivations of key personnel to behave economically on the part of MoD officials.

Keywords: economic management,strategic management,sector of defence,germany