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Mentioned Balanced Scoredcard-BSC is an ef f icient tool that helps to the of f icial management to transform vision and strategy into reality, by means of monitoring key efficiency indicators and their transformation into action plans: BSC covers the package of strategy maps enabling to consider mutual connections. Owning to the transparency cause-consequence relation, we can implement cohesive strategy into all level of the organization.

Security situation has been changing all over the world, so has in regional territories. It is necessary for us to create systematically new safety culture with regards to contemporary knowledge and experiences. The Czech Republic contribution to the safety of democratic states must meet their expectations; prospective security studies will have to bring new knowledge and technology which, first of all, will increase the level of general capabilities of the Czech Republic and at the same time to take into consideration the needs of national economy and Czech environment. Capital investments into security research are necessary as a basic input for the safety preparedness level of the CR. For these purposes it is desirable to establish security research that will be able to produce ideas and technologies which will sustain and renew the Czech Republic safety in changing conditions, among others taking note of a Seventh Framework Programme of EU for research,

Economy Management by Ing. Svatopluk Kunc. The purpose of this article is to explain the essence of above mentioned economic categories, their linkage to cost accounts, accountancy, to characterize accounting items as an important signpost, to clear mutual ties between the so-called economic rationality and the position of a manager in armed forces. It is not easy task to find unifying point of view. For that purpose the author explains methods of controlling, outsourcing, process management, total quality management, balanced scorecard, value management, etc.

This piece of writing is a polemic with the article by Maj. Pernica "System of Planning, Programming, Budgeting (and Flogging a Dead Horse)? in Vojenské rozhledy 4/2005. Allegedly, the criticized article quoted some misleading statements, based on financial records, inappropriate for this purpose. Ing. Dušek does not agree with its general idea, introduced out of contexts. The Planning, Programming and Budgeting System was introduced by leading economy experts (e.g. university professor Mr. Ochrana, School of Economy, Prague). Some deficiencies and shortages are inevitable, but as a whole, the PPB system works. Statistics is a dynamic science and statistical data are to be judged only in connection with statistical methods used in years in concern. For example, in answering the Defence Planning Questionnaire, we were asked by NATO authorities to transfer entries for leasing Grippen aircrafts from modernization and development items to the operational item. Consequently, the percentage of investment purchases decreased. The same goes for the percentages of National Gross Domestic Product spent for military budget, and so on. Moreover, MoD financial department put several useful proposals how to make financial flows more clear, but the were refused by the government.

Mr. Koutný belonged among those who went through the fire of World War II and lately became victims of despotism of the so-called "class laws". In fact, Col. Koutný was not a soldier, but the journalist. At the beginning of war, Mr. Koutný was sent to Poland to inform about Polish practices to return Czechoslovak refugees back to the "Protectorate Bohemia and Moravia". At Poland he joined the Czechoslovak Military Group; lately he experienced Soviet labour camps. In a small city of Buzuluk, where the first Czechoslovak Field Battalion was formed, he became the chief of recruiting commission. There he met people returning from the NKVD's camps (i.e. Soviet Secret Police's detention camps). Many his reports to the Chief of Czechoslovak Military Mission Heliodor Pika were preserved in archives. Nowadays they bear witness on those fearful camps. As a press officer he laid down the foundation of the Czech army daily "Our Army in the USSR". He worked at the Czechoslovak Headquarters in Russia, as a liaison officer at the Command of the 1st Czechoslovak Army Corps in the USSR, as a political and military advisor to the commander of armour brigade Lt.Col. Janko. In his liberated country he helped to establish the military publishing house Our Army (Naše vojsko). Shortly after the communist coup d'etat, in 1949, he was imprisoned. He died in a communist jail in 1960.

The main aim of this essay is more to open the way for solving methodological problems, point to directions defence economics ought to follow, rather than to find easy answers to all of them. That is the ver y theme of Economy Depar tment of Facult y of Economics and Management, Defence University Brno. It is the base for defence economy, constituted as a science discipline.

The world is full of unsolvable problems. Every key problem has turned now into multinational one; in fact, this can be handled only if it becomes a transnational problem. Security development is multifaceted process tied with the whole globe. The author recapitulates several models or paradigms that influenced a lot our global strategical thinking. The Grand Chessboard: American Primacy and Its Geostrategic Imperatives by Zbigniew Brzezinski; The Choice: The Global Domination or Global Leadership of by the same author; The Clash of Civilizations by Samuel P. Huntington; Avin Toffler's The Third Wave; Kauffman's Fourth Law: Prolegomenon to General Biology (Investigations); Order Out of Chaos by I. Prigogine and I. Stengers. Dr. Volner says that the contemporary humankind has its last chance to push such a solution that might lead us out the world of dangers and threats to start building up a balanced and lasting security, but he warns against waging "small preventive wars", as the only way to safeguard the peace.

The purpose of the paper is to explain some of the connections among military and public spendings and its influence on forming fiscal policy in the 90s. Security doctrines influence national military concepts, level of defence expenditures, and developments of other spheres of public spending. Defence and other items are parts of spending budget, constituting government's fiscal policy, and vice versa; the economy in respective countries influences defence policy. The author treats the question how Czech expansive fiscal policy reached the limits of its growth, how it was reflected in defence policy. The key military reform proved to be inevitable; the reform of armed forces demanded the reform of civil administration. He comes to the conclusion that in our country, government spendings are not a stimulus of economy growth, even not in a short time period, that it is economy growth that determines public spendings, so does the defence budget.

The forward-thinking and respond to the challenges of today's dynamic operational environment demands as necessary: first, to attract and develop young people to become adaptative leaders possessing enhanced skills, i.e. we must align leader-development programmes for the new operating environment; second, to respond to the forces' needs in meeting the challenges of the operational environment-the forces have to undergo a transformation. Adaptability is critical to urban stability and support operations, as these operations present complex challenges to commanders for which no prescribed solutions exist. Warfare and technology are rapidly evolving; doctrine lags behind the need for ready solutions. Officers are confronted by many situations outside the doctrinal framework. No amount of technology can offset the effects of chaos theory ...169 Clearly, there is a need to quickly learn knowledge/skill sets, coupled with a new operating frame that might be radically different from the skills and knowledge developed through classical training (Military Review, January/February 2006, Tomáš Weiser, What is the Chaos? Dějiny a současnost, 5/2002).

It is extraordinary important decisionmaking, because of fered products determine the successfulness of arranged contracts. For evaluating suppliers we use the so-called scoring model, in which we specify evaluating criteria and assign the weights. To prevent challenging accepted resolution, our decision ought to be supported by the analysis of the third party. This method is called S.P.A. - Supplier Potential Analysis.

At present, the current reform of our armed forces is oriented towards qualitative changes. The Brigade of Logistics Support is going to be the unit designated for transportation, maintenance and repair, technological control of arms and vehicles, it must be capable of fluent supplying advances positions, namely by propellants, ammunitions, and further dozens of tasks in frame of joint task groups (National Support Element) or as a HNS (Host National Support). All units will be connected by multifunctional logistics informational system. Logistics system must fulfill its tasks even in time of peace, and thus be prepared for time of crises. The operational engagement in the early 21st century will require light expeditional forces capable of easy and rapid deployment. The logistics support ought to be more mobile, more integrated, more compatible and more precise, with the quick accession to spare parts and maintenance support.

Security system is an institutional frame for the creation and implementation of Czech security policy. It is closely tied with NATO, the EU, and other international institutions, which enables its compatibility and interoperability within European security systems. The Czech government prepared The Concept of Security System of the Czech Republic that put emphasis on its effectivity and simplified cooperation and coordination among individual components of security structures. The concept was based upon the analysis of Czech security system, covering events after 11/9 2001, NATO Summit 2002, the Floods 2002, etc. Presented principles of the optimalization of current security system of the CR incorporate key proposals of legislative character that ought to be processed in two years; partial measures will be implemented step by step. The author proposes to incorporate mentioned steps into amendments to defence and recruitment laws, laws dealing with emergency or crisis situations. Such amendments are to be offered till the end of 2007.

90s introduced the new beginning of international and economical relations. The former USSR used to be overmilitarized state that is now transforming into a democratic republic. After 2000, the RF adopted many arrangements to stabilize the fall of Russian defence industry. The poor results of Russian economy motivated the federal government towards forming five defence agencies (in 1999): Russian Aeronautic and Space Agency (aeronautics and rocket industry), Russian Agency for Command and Control Systems (avionics, electronic industry), Russian Agency for Conventional Weaponry (arms and armament industry), Russian Agency for Ordnance and Munitions, Russian Agency for Shipbuilding. Nevertheless, the ageing of redundant and unnecessary military industries demands horizontal integration that might facilitate cooperation among individual enterprises. This process could help to unify military products and concentrate on modern weaponry, to improve applied technologies, corresponding to demands of 21st century forces.

Developing Czech national defence system is based on long-term predictions of potential security threatsandplanningofresourcesavailablefordefence, including defence spending plans. This paper analyses the issue of current value of defence expenditures. It attempts to give an answer to the question whether defence requires a specific price index or if common civilian indicators like GDP deflator or consumer price index can be used in defence.

The concept of development of professional army and mobilization of armed forces of the CR in conditions of a new framework source frame presupposes to introduce "process management" with the Ministry of Defence. Although this tendency is not new, mentioned concept is not generally known, so the author would like to make clearer its roots and reasons its introduction. The success of economic management lies in managing time, quality tied with costs of running processes, evaluating indicators of accountancy, activity-based costing and activity-based management. Our goal is not to evaluate costs, effectivity, but our objective is to constitute departmental economy system with the aspiration to guarantee continually economical rationality (overall economy, effectivity, usefulness) of its processes, activities and performances.

The authors depict the development of outsourcing methods in US armed forces, its origins, and sources. Collected data are accompanied by experiences from British and German armies. The American Office of Management and Budget (OMB) issued in 1966 Circular No A-76 (lately several times revisited) to define procedures how to set rules which commercial activities are to be done within the frame of armed forces or in private sector. Backed by a number of literatures, magazines and newspapers (Air Force Journal of Logistics, Air Force Magazine, Armed Forces Journal, Defense Nationale, Washington Technology, Wehrtechnik, etc.) authors analyse several outsourcing processes. They present both positive and negative results, including open or hidden problems of A-76 policy (e.g. business process outsourcing). For the Army of the CR they recommend to overcome above mentioned problems by creating the corrective authority, similar to the British PPPU (PublicPrivate Partnership Unit).

The article presents the results of pedagogical experiment in shooting from smallarms at training on shooting trainers, as indispensable instruments for the preparation of military professionals in indoor and outdoor shooting. Computer-generated simulators enable to experience the practice of shooting both for beginners training, as well as for marksmen, and sharpshooters. The trainers we we've developed in our army are as follows: shooting trainer EVJ-91 (optical, infrared), EVJ-94 (advanced, computer aided), EVJ-94/M (five targets), UNIST-94 (screen 2x3 m, VCR, UNIST-97/L
(laser emitter, live shooting), optical shooting range OS-1, OS-3 (small arms practice, up to 50 m, computer-aided,
laser emitter), optical target range TOS-1 (combat fire arms practice, computer-aided evaluation), optical range POS-1 (target devices are replaced by a film screen, VCR), Minitos Duo (tested), combat video-system Dicrosec PSC (interactive), or SOT-1 (rotary targets). Even though those trainers save time and money, we must still bear in mind that live shooting can't be replaced by any trainer.

The practice of a company sending work to outside factories to reduce production costs is called outsourcing. Outsourcing is one of many methods that might help defence department to fulfil a number of various tasks that either can't be accomplished within the armed forces or such work or services can be obtained at low-costs in civil sector. The authors propose several practicable techniques using dynamic outsourcing model to identify prospective services to support given transformation process.

The primary aim of the method Hazard & Impact Index (H&I Index) is to enable the commander to evaluate possible negative impacts of military exercise on environment, and quickly and in an operative way interpret whether intended military activities can be a threat to the conditions or surroundings, in which the units are employed. The authors propose several tables for the comparison of environmental groups (soils, forests, climates) with forces movements. The method still undergoes the development. The evaluated numbers are set only for a mechanized company of the Army of the Czech Republic in our local surrounding. But in the near future the authors predict its extension to all organic units of NATO stationed in European continent. The article is a sequel to the article by the same authors in Vojenské rozhledy, No 1 /2006.

This new generation war could be characterized by an emphasis on nonstate actors, by political and psychological forms of attacks that directly influence opponents. Other characteristics are as follows: extensive refugee flows, violence, transnational criminal aspects. Several factors will impact the nature, frequency and character of "small wars" in the 21st century. Failed/failing states, urbanization, diffusion of actors, communications technology, technological diffusion, religion, and ultra-terrorism. Clausewitz's fundamental appreciation for the primacy of political objectives as the guiding object in war remains relevant to "small wars" as does to interstate conflicts. The problem for today's strategist or policy maker is determining exactly what has changed, how the various means of stratecraft need to be adapted to the specific contingency at hand (according to The Journal of Strategic Studies, 6/2005).

Using the example of medium-term planning of development and activities of defence department, the article demonstrates one of possible ways of using the so-called 3E methods. The Czech def inition of 3E is based upon the Act on Financial Control, Control of Public Expenditures, Regulation ISO 9001-2001, and Methodical Instruction MF CR (CHJ- 10). The author compares them with e.g. Financial Management Policy Manual JSP 462, MoD, London, UK.

The China's impact on world affairs is growing and will grow further in decades to come. Those years will be critical for Taiwan, and for its relationship with other states. Three related factors determine the texture of this interaction: the policies evolving in Beijing, internal developments on Taiwan, and the international environment. Beijing has offered Taipei several proposals for reunification. The proposals, including the recent "one state, two systems" proposal, allow Taipei to maintain its social and economic system, its armed forces and its unofficial ties with foreign countries. China's grand strategy is to make war while avoiding the battle. Therefore, Taiwan is to be persuaded that the acceptance of "One China" principle is vitally important for preventing the Taiwanese independence. Otherwise, People's Armed Forces will open an invasion to Taiwan by three successive attacks: (1) high precise medium-range ballistic missiles DF-21C with the aim to suppress air defence; (2) the second stroke would be massive attack with short-range precise missiles; (3) the last stroke ought to be done by cruise missiles. This essay is adapted from articles by Mary C. Fitzgerald and Eric A. McVadon, Armed Forces Journal 11/2005.

All NATO nations and their armies are looking for effective exploiting social sources for defence and security. It is clear now that effective spending of public expenses asks for changed infrastructures of forces and their activities. It is necessary to form teams of experts who will cooperate with leading defence officials while setting the most suitable variants of further advance.

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.

This article examines depth in the nonlinear battlefield and how planners might develop operational effects to defeat insurgencies. The former field manual stated that depth was the extension of operations in time, space and resources. This is a decidedly linear construction of the battlefield based on industrialized warfare between conventional enemies. The Global War on Terrorism operating environment is both nonlinear and non-contiguous. The enemy has no national borders or traditional infrastructure. If we understand cognitive depth, we can develop ways to paralyze the insurgent system or produce operational shock. Colonel John A. Warden III, an architect of the Persian Gulf War air campaign, introduced Five Rings Model as a methodology for successfully attacking and paralyzing a conventional enemy system in depth. An adaptation of this model depicts tangible targets that together constitute depth in the insurgent battle space. Source: Is There a Deep Fight in a Counterinsurgency by Lee K. Grubbs and Michael J. Forsyth, Military Review, July-August 2005.