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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.

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.

The professionalization of armed forces is a process causing qualitative changes in the personnel structure of the armed forces. This process should form the armed forces as a professional institution, where the most of soldier is not enlisted for a life-long career of soldiering, but enrolled only for certain amount of time (Soldat auf Zeit). The U.S. Armed Forces (all-volunteer service) and the Royal Armed Forces serve as an example of a kind of professional armed forces in the NATO. There are two contrasting models of professional armed forces: the US-inspired armed forces and the lifelong-careerof-soldiering armed forces. Both models served as an inspiration for application in the Czech Armed Forces. The Czech Act No 211/1999 "Career Soldiers" defines military service of Czech professional soldiers in terms of all-volunteer forces. As there were some problems with the unification of career officers and volunteer soldiers, nowadays we gradually return to the concept that again differentiates between those groups.

Since the 90's of the last century we have witnessed the discussions over extended concept of security, under which no national state is the only privileged security subject. The classical military concept is extended both "above", towards international, global and regional problems covering economy, social, environmental or humane issues and "down", in the direction of local communities, NGOs, private subjects and even individual citizens. Even though several important constitutional laws reflecting EU criteria were adopted, we still miss constituting and complete overall concept Czech security system. Of course, we have a document "Optimalization of Security System of the Czech Republic", but it is not the genuine concept, but a mere summary of practical measures dealing with temporary problems, namely after the Floods 2002. The author dares the public to open debate about priorities and goals of security politics of our country, in order to lay down, under general consensus, realistic security system, able to face the whole range of security threats and risks, explicitly in the broad international frame of NATO and EU.

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.

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization to accomplish its objectives by bringing a systematic, disciplined approach, so that we are able to evaluate and improve the effectiveness of risk management, command and control, or other processes. Internal auditing is a tool of Ministry of Defence management that is used for increasing effectiveness both in departmental and public sector administration. The article is supplemented by two schemes of the position of audition authorities within the Slovak MoD.

In view of the fact of recent transitions in the Czech Republic, the Czech military must satisfy a large set of new requirements, including those tied with military defence intelligence. The article examines the key legislative changes under Acts No. 153/1994, No. 289/2005, No. 290/2005 and their actual implementation, linked with various stages of political and strategical management. There is no flawless pattern for military intelligence community. It is influenced by many circumstances: history, traditions, state of affairs. The author does not want to criticize today's model, organizational changes. Present-day establishment is integrated, which has certain advantages and some benefits, e.g. after 9/11 2001 American intelligence services were criticized for their insufficient integration. Adopted laws and rules, instruments for optimalization of present security system of the Czech Republic, are outlined on the basis of Table Supplement "Information on the Results of Czech Security System", www.mvcr.cz.

In Czechoslovakia, the "labour camps" came into existence under the Act 247 of October 25, 1948. They were camps for those who had not committed any crime, but ought to have been isolated from other civilian public. The sentences: "... the said person has no positive attitude to current regime" or "shows no interest in joining the Communist Party" constituted the reasons for 10 to 24 months of imprisonment. "Offenders" were not sent to labour camps by courts, but only under the prescription issued by "prescription committee", at the level of local and regional "national authorities". A total of 23,000 people went through those camps, as a cheap labour force, taken from among "class enemies". The special position among those camps had military camp of hard labour Mírov, designated for the former commissioned and warrant officers who fought during WWII not only on western but also on eastern fronts. In 1949-1950, there were six roundups (Action D) in which the former "bourgeois" officers were arrested by mixed teams of State Security and Military Intelligence guards; in fact, many times even in the contradiction with the then effective laws and regulations.

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.

As the EU is conducting its third military operation, the EUMS has become a key player in the development of the European Security and Defence Policy. In order to provide political control and strategic direction in a crisis, the European Council (Nice, December 2000) decided to establish new permanent political and military structures within the Council of the European Union: PSC-Political and Security Committee, EUMC-European Union Military Committee, EUMS-European Union Military Staff. The EUMS is responsible for peacekeeping tasks, tasks of combat forces in crisis management (including peacemaking), and further tasks identified in the European Security Strategy, such as joint disarmament operations, support for third countries in combating terrorism and security sector reform. As the only permanent integrated military structure of the EU, the EUMS has become the military linchpin of the EU. (Truppendienst, Bundesheer,

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.

In April 2006, there was another symposium dealing with military professional terminology. Its main purpose was to evaluate experiences with introducing standardized terminology, their levels. Established in September 2004, the Terminology Committee introduces current NATO terminology into all branches of defence department, by means of Standardization Information System. At present, the Training and Doctrine Directorate in Vyškov studies the chance to develop similar database for operational terminology.

What is Necessary to Consider in the Process of Organization Structures Construction, Military Forces Equipment and Training in ACR, after the Ending of "Conception" by Ing. Antonín Krásný, CSc. The very welcomed "Concept of Development of the Professional Army of the Czech Republic and the Mobilization of Armed Forces of the Czech Republic" had to be revised because of the lack financial means. This fact influenced a lot of live of our army. Additional career officers were to leave his services; military material, vehicles were further reduced. At present, we have to balance our military strength with security demands reflecting running changes in world's security surrounding. The main aim of the article is to describe development of security environment in the Central Europe. It considers decision mechanisms reform in NATO and transformations of its military forces structures. It highlights an impact of demographic, technological, institutional changes and changes in value system of defence assurance of the CR. We must still bear in mind that for us, NATO alliance, supplemented by the EU structures, is the main tool of our security.

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.

This article informs readers about basic ISO standards (International Organization for Standardization), series 9000, and about terminology f lowing from ČSN EN ISO 9000:2001 standards. Fundamental part of the report is a relevant Army of Czech Republic specifics analysis and model implementing proposals of quality management system into a command and control structure of the army. It is favourable for the forces to use above mentioned systems (norms, terminology), especially in logistics. It enables us to follow suppliers/contractors to guarantee the highest quality and effectivity of products and services bought for military. NATO uses among others norms AQAP (Allied Quality Assurance Publications) that were introduced even in our country. Processes are identified in a way broader then in terms of mere ?quality?. Excellence model under EFQM (European Fund For Quality Management) is a voluntary system that can be used for the effective building of a ?small? army, reduced in size, structure, and personnel, in accordance with the approved concept of rebuilding the Czech Army.

Summary of Security Com174 munity Views - Part One. Despite the fact that most of the predictions made in the early 20th century did not realized, there are still plenty of arguments for drawing security prognoses as the only method assessing synthetic alternatives of future progress. The future is not unequivocally determined, as the all comprising development is strongly influenced by subjective motives. We must have scenarios upon which we can act, operate, namely in the field of security. The government ought to set clearly our security agenda, where and why we are going to make possible military engagement. All further actions are developing from those prognoses, i.e. buying tanks, helicopters, parachutes, armoured vehicles, etc. The first part of this security study covers several predictions containing even some controversial visions. They are based upon the opinion survey done among members of Czech military community. The field of investigation comprises EU, US, North Korea, Iran, Iraq, Africa, Asia, even hypothetic Russia-China conflict, terrorism, weapons of mass destruction, and the like.

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.