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The autor responds to several articles published in our Military Review, namely by Prof. František Ochrana, Prof. František Božek, Brigadier Rudolf Urban, Prof. Miroslav Krč, in No. 4/2008, with special appreciation to critical articles by Ing. Jiří Dušek and Lt.Col. Ing František Růžička in the same issue. He tries to find out common denominators of those essays. There are three of them: economization tied with rationalization, risk management, and information compatibility. As necessary he regards to unite those denominators both at the level of decision making officials and at the level of their subordinated elements, by means of e.g. working teams as a guarantee of coordination, so that the adopted Long-term Vision of Defence Department could be actually realized.

The complex security strategy must pay attention not only to outer threats, but also to inner security risks. Social and cultural impacts of globalisation produced even to our country a rise of several extremist right-wing political groups inspired by or following the tenets of Hitler's Nazi Party, referred to as neo-Nazis, because they modify Nazi doctrine and because the original Nazi movement inspires them. Some forms of fascism are also anti-Semitic or xenophobic. On the contrary, Anarchism is a political theory opposed to all forms of government. Anarchists believe that the highest attainment of humanity is the freedom of individuals, unhindered by any form of repression or control. To accept matching strategy, we must know those theories, their international background, as those movements are usually tied with organized crime and terrorism.

This article deals with the present state of command and control dilemma in brigade battle groups. It outlines the resources of the rationalization of organizational structures at HQs and it shows their impact on modular design of the command posts. The gradual introduction of NATO Network Enabled Capability (NEC) into Czech armed forces (Bde TF-Brigade Task Force), requires first, changes in the structure of individual components of command and control system; secondly, initiating basic changes oriented towards optimalization command and control structures; third, the preparation of commanders and staffs in the field of information technology, so that they could achieve knowledge and control dominance. At the same time organizational changes raise modification within command chains of separate groups.

Department by Ing. Jiří Dušek. The purpose of this article is to provoke discussion among military public dealing with economy in order to improve economy management in the forces. The author would like to point out the gap between officially proclaimed principles and true economy development in MoD department. Why proclaimed principles remain only on a sheet of paper and are not introduced in practice? In three theses are summarized the main problems to be resolved. The article is not conceived as a mere critique, it also features several proposals how to improve, optimalize, economy behaviour of the ACR. Among others he proposes to make us of 3E indicator (Economy, Effectiveness and Expediency), SWOT analysis, etc. Last but not least, he underlines the importance of economy education for army officers and leading civilian officials.

The study analyzes the key features of Russian policies in the late 2000s and their prospective developments. It is above all the rise of Russia's economic power, boosted by the favourable rising trend of energy prices (oil and gas) that has helped to resume again the position of one of the key world powers, obsessively pursuing its geopolitical interests in a new emerging multipolar world. This also determines its relations with other major global actors, e.g. the U.S., the EU, and China (outlined in this article). As far as military budget is concerned, it is increasing. Russia has overcome a long period of stagnancy. After 2007, they re-established strategical patrol flights off Russian territory; great effort is aimed at power projection, as a means to secure natural resources beyond Russian boarders. The study is closed by Russia's geopolitical prospects till the year 2020. and its Anticipated Development

Management by objectives (MBO), first outlined by Peter Drucker in the 1950s, is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. The tasks are delegated to subordinates without dictating a detailed roadmap for implementation. Everybody within the organization has a clear understanding of the aims, or objectives, as well as awareness of their own roles and responsibilities in achieving those aims. In the U. S. Army, MBO was implemented into The Army Plan FY 2000-2015, with 789 operational capabilities, divided into 1,248 operational standards, but without demonstrable success, as the system worked rather formally; it was too complicated. The same was true in the Czech Army, where e.g. The Set of Objectives till 2005 came into existence in 1991. The author tries to explain why. He concludes that MBO can be a useful management tool in the army environment, but it should not be realized without proper understanding this process.

The very modern trends in the forces of advanced countries are hiring private civilian companies, private enterprises, in everyday performance of armed forces. As this phenomenon is very frequent, the authors decided to go into its roots, to find a common cause of this fact. In the past, armies were closed societies, self-sufficient, independent from states. Today, gradually, soldiers became more concentrated on key military tasks and supporting functions are transferred to private companies. The German Armed Forces (Bundeswehr) takes over mechanics used in private sector: it integrates economy dimension. Above all, it is transparency of bookkeeping, which ought to give evidence on savings in everyday life of forces. The Bundeswehr uses the so-called Market Testing, as a means of practical cooperation for engaging private capital. All those fact are cited as thoughprovoking.

The reform of the Czech armed forces is factually and timely tied with the transformation of NATO forces, both in the field of technology and that of doctrine. The covering principle of this transformation is the so-called EBAO concept, in the frame of which we define three main transformation objectives: forces must have operational superiority, they must be operationally effective, deployable, and sustainable. The effects-based approach to operations focuses on combining military and non-military actions to influence the overall behaviour and capabilities of other actors: national, trans-national, belligerent and benign, in an operational environment in order do create effects leading to the achievement of strategic objectives and a desired end-state. Its application focuses the planning, execution and assessment of operations. The cited EBAO handbook was followed by several documents (e.g. discussion papers), issued at the end of 2007 as a means to inform future doctrine reviews. Many of the concepts and documents should be validated, either through experimentation, or through specifically designed exercises.

The security is not very often mentioned in direct relation to the quality of life and sustainable development. The author introduces the security as their substantial element; he would like to offer an interesting approach towards examining mutual ties between both concepts. In fact, it is not a new idea; common knowledge that peace is more comfortable for life and culture, for economic development, is certainly older than quality of life concept. But, after an easygoing attitude to international background in the 90's, today we again pay our attention to the security problems, even in a wider spectrum, in varied contexts: from changes in world's climate, to differences between rich North and poor South, over international terrorism, efforts for integrated European position towards Common Foreign and Security Policy, NATO, security policy of the Czech Republic, till the individual feelings of safety.

This article deals with accrual accounting concept in the terms of the public sector, where-in this context-accrual accounting is understood as a basis of accounting under which transactions and other events are recognized when they occur, and not only when cash or its equivalents are received or paid. Therefore, the transactions and events are recorded in the accounting records and recognized in the financial statements of the periods to which they relate. At first, the article introduces briefly the history of accrual accounting concept implementation in the area of public sector. Secondly, it summarizes main possible benefits and risks connected with the implementation of accrual concept to the public sector accounting.

The return of Russia as a power that begins again to partake in political agenda of present-day world raises the necessity to reflect its inner developments in the background of its recent history. There are six key factors that substantionally influence the position of Russia in the world: large sources of raw materials (pipelines); outstanding military capacities (the world's second nuclear potential); high level of general education; wide scientific and research base; permanent membership in UN Security Council and in the Group of Eight (G-8); deciding influence in the near neighbourhood. The study comes to the conclusion that Russia-in the horizon of 2020-will belong among world's leading actors, together with the US, the EU, China, and Islamic world. Russia will be able to of enforce its foreign and security goals, both in post-Soviet areas and in key regions in Europe, Asia and in the Great Near East. As such, it will probably get into conflict with the US. The priority tasks of the Armed Forces of the Russian Federation will rest on maintaining nuclear parity with the US and building capacities for asymmetrical operations.

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.

In the early 21st century defence research can be discussed in two ways: we can stay either within existing discipline "theory of state defence", or we can set up new academic specialization concentrating more on the notion "security" and its individual aspects, including their inner ties. In the former case, there are spheres in which civil and military experts can complement each other, whereas other spheres of studies ought to stay exclusively in the domain of military experts. Mutual cooperation between civilian and military experts can be concentrated on systematic studies of security threats, predictions of potential conflicts, analyses of security cooperation between the Czech Republic and NATO, the EU and the OSCE, economy support of state defence. On the contrary, military specialist ought to focus on e.g. major regional conflicts, low intensity conflicts, military operations other than war. As the term "security science" is not used in NATO nations, the author suggests, it would be more useful to preserve academic discipline "defence theory" to make full use of military experts.

This article is a sequel to the previous disputes over financial management within the Czech Armed Forces. The origins of the first polemic article lay in gaining facts for research work, arranged by the Faculty of Economics and Management, Defence University, "Allocation and Management of Defence Sources of the CR and the Formation of Economic Thinking in the ACR". The system of planning, programming and budgeting (PPBS) was introduced into Czech forces several years ago, but the it did not worked in a way it was supposed. There were many deficiencies the PPB system suffered from. Unfortunately, the author lacks sufficient data to evaluate properly the performance of this system. He has to combine diverse data sources, booklets, statistics, data releases, to make accurate picture of a day-to-day financial military administration. In his opinion, the system is not transparent enough. He appeals for clear figures, released e.g. on army interned pages, to avert accusation of wasting public sources ...168

The author follows the mainstream economics, i.e. leading economics of defence policy, ranging from economics of defence in the nuclear age, via economics of Iraq conflict, to current fight against terrorism. New paradigm must be drawn, taking into account source management, the distribution of economics weight of individual national economies of all countries participating in the fight against global terrorism.

The purpose of this article is to get readers acquainted with new facts that are arising in the sphere of defence and security of state and at the same time they might influence defence economics research. This recent phenomena came into existence as a consequence of new world layout and events especially tied with massive terrorist attacks after September 2001.

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.

This article presents the experiences with the use of Public Private Partnership (PPP) as a modern way of arrangement of public services how is used abroad, with specific bias to defence sector. The problem is solved best in Great Britain that has perfectly organised public administration and transparent feedback. Even in our country we run several PPP projects, unfortunately, overall data on them are not satisfactory.

Economy of production, economies to scale, in civilian sector are quite different than economy pattern in defence sphere, as specifying the allocation of sources for the Army of the Czech Republic is not based on exact calculation of costing, payments as we could not observe the substantial terms of comparable partial and overall expenses. At present, we are not fully able to compare defence outputs, nor effecitivity of spent sources.

Those three E are much in use both in official documents and mass media. Dozens of defence officials use them every day, but actual outputs present that they do not know the key essence of 3E, or they are not aware of how to put them into practice. This article would like to help them to make understand the practical application of basic principles of 3E in practise. The reason of this gap, according to the author, lies in insufficient ties between theoretical and executive spheres of defence sector.

The specificity of defence as a public estate rather complicates necessary changes in public expense management, namely those chapters designated for the armed forces. One of prospective tools for defence economic management is controlling, which is more than mere control. It coordinates planning, information flows, it concentrates on final effects. The authoress explains and depicts how this method is working in the German Federal Forces (Bundeswehr).

Czech MoD has to be economical with resources provided from the state budget. The article deals with the distribution and structure of state budget in relation to MoD itemized summary of expected income and expenditures. The authoress discusses several patterns used in this field, e.g. costminimization analysis, or assessing the total amount of money allocated for a specific purpose during a specified period. She also points to several unintended mistakes done by MoD officials.

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 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 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.

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.

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.