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Managerial economics is a branch of economy science which constitutes the introduction of economy theories and methods into the practice of management control. The principles of managerial economics can be applied even to non-business and nonprofit organizations. The author introduces recently released "Managerial Economics in the Army of the Czech Republic" (Defence University Brno). Proposed issues of economic control and functionality of system offer both immediate and long-term economical effects

First, we must define applied terms, such as state of danger, emergency, state of state emergency, state of war, sovereignty, democratic principles. Our national reserve consists of compulsory reserves and active reserves. The author enumerates with the use of vast tablets and charts their numbers, together with numbers of military occupational specialities, and explains terms extraordinary service in time of eminent danger, during military exercises, in time of proclaimed state of emergency. He also cites numbers available for conscription (draft). Last but not least, he quotes arguments and conditions under which a reserve soldier can refuse call up order. Defence Act specifies all conditions of national military service, which also includes calling up women, except for those who are e.g. pregnant or are raising children up to age of 15 years.

The authoress deals with the question of financial resources the AČR will be able to spend on issues tied with state defence, i. e. for the needs and demands of defence department. In fact, its sources represent the main base for the support of the Czech armed forces. To predict the volume of financial means allocated for the forces is problematical, questionable. We must be prepared for further budget cuts, we must prepare B-scenario for the worst situation.

The purpose of this article is to offer readers rather different look at the Czech Security system as that was presented in Vojenské rozhledy No 1, 2007, in an essay by dr. Rašek "Creation of the Foundations of Security Science", in which its author enumerates relevant institutions in Czech society, civilian or armed, involved in this complex security system. It is the definition of security that causes that Mr. Krulík adds other security elements and amends security system by references to basic law and legal norms that are in the background of this system. Even simple summary indicates that our security system is too complicated, tangled, without balance. It is a static picture of institutions, the validity of which could be proved only in practice. It is evident that security process should be more dynamic, as its suitability and effectiveness can be only proved face to face crisis situations. This problem is tied to the question of military expenses. Mr. Krulík hopes that further budget cuts in public sector will produce drawing up real concept of security system.

An Amendment to the Environmental Policy of Czech Defence Department in 2007-2010 by Capt. Ing. David (Col. ret.) This short information is based upon articles widely published in 2005-06 in Western military magazines and newspapers. After September 11, 2001, NATO member states are discussing the deployment of nuclear weapons at non-strategical level. Among others, this is embarrassed by the Russian attitude and general demands of some European NATO nations to update Alliance strategy. What does it mean? There are voices to Řehák, Ph.D., Col. Prof. Ing. Aleš Komár, CSc. This proposal reflects challenges resulting from the professional assessment of departmental environmental policy. It is divided into three parts: (i) command and control; (ii) established practice; (iii) communication and education. The solution doesn't lie in the utilization of refuse, disposal of dangerous waste, passive environmental protection, but in earth-friendly attitude towards environment, active measures for damages prevention even during commanders' decision-making process. The basic principle rests on sustainable growth, backed by harmonization of economical, environmental and social aspects. Proposed environmental policy originates from State Environmental Principles and Czech membership in NATO alliance.

The problem of allocation of defence sources and their effective spending during recruiting is analyzed by means of modelling and simulation of economic indicators to support of decisional processes of defence planning and arising effectiveness of defence sources in Czech environment. The authors present an example that illustrates the monitoring costs in recruiting. At present, we have no accomplished internally tied system of economic indicators, the article therefore proposes such indicators which could describe continuance in recruiting process, by means of which we shall be able to calculate its financial costs.

The professionalization of modern forces is an upcoming trend in all advanced democratic countries. It is demanded by complexity of current armed fight, advanced sophisticated weapons systems, antipathy of young people to serve in forces; established selective service was not solution, as it was more or less tied with bribery. In our country, compulsory military service was abolished after 135 years of its existence, in 2005. Mr. Pernica, the author of a book "Professionalization of Armed Forces: Trends, Theory, Experience", published by Czech Military Agency of Information and Services, treats military service as a sort of public enterprise in market of labour force. He introduces two models of armed forces: conscript service and volunteer service. At the end of this review Mr. Rašek points out that under the condition prevailing security risks and wide-spread interventionist policy, there is a possibility that we shall have to return to conscription system.

The Czech Republic is developing professional, highly mobile forces, with up-to-date arms, weapons, capable to take part in wide scope of Alliance or other multinational operations, even abroad, outside European territory. But this capacity depends on defence budget, on the percentage from our GDP allocated for military. From the part of the ACR, it will depend on effective spending, usefulness of used resources.

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.

The article deals with the idea that was published in Economy and Management Magazine, issued by the Faculty of Economy and Management, Defence University Brno. It analyzes the paradigm evaluating military performance, namely economy effectiveness, in relation to application of dynamic model and processional approach to marketing principles. It indicates the condition is fulfilled. The calculations demonstrate the evaluation of economy effectiveness, economies of scale, purposefulness.

UAV specialists predict that within ten years, half the aircraft flying will be unmanned. They also foresee conflicts where a few soldiers will dominate stateside battlefields. The UAV Center of Excellence is going to draw the unmanned part of the Air Force, to study the best ways to use UAVs. The Air Warfare Centre at Nellis, Nevada, develops tactics for the use of aircraft and directs combat training. The UAV center would take on a whole range of issues from airspace control to various kinds of systems. Unmanned aircraft are to expect to play a key role in delivering directed-energy weapons to battlefields. Stealth will become a standard in UAV fleets just as it is in manned combat aircraft today. A number of additional improvements are expected to increase the capability of Predator squadrons. UAVs may have to specialize in strike or intelligence, surveillance and reconnaissance. Source: articles by David A. Fulghum, Aviation Week and Space Technology No 12, 2005.

This article deals with controlling and its importance for the management within any army organization. It describes the relationship between controlling and accounting in the present establishment. There are defined all transformation steps of accounting converted into managerial accounting, as the best way of controlling process. At the end, there are some notices to the accounting system, costs/outputs; especially, the accounting of costs and outputs that could be applied in the near future.

The planning is a general term with many meanings, all of which imply an ability to scheme or arrange beforehand. In practice, planning is a highly formalized and disciplined activity through which we can induce changes, procedures for a decision-making unit, including the establishment of goals. Planning in the forces therefore involves two levels: i. operational planning (intentions and goals of forces, feedback information for setting up operational capabilities); ii. defence planning (development of armed forces, military potential). Long-term planning for 10-15 years or more ahead covers strategic analysis, strategic goals, implementation of strategic goals that are mutually connected, depended on each other, and implemented in particular surroundings which also influences the whole process. This article is based on papers presented at workshops held at the Institute of Strategic Studies, Defence University Brno and is accompanied by several schemes drawn among others from the Handbook on Long Term Defence Planning, published by NATO Research and Technology Organization, 2003.

General View by Doc. Dr. Jiří Nedbal, CSc. When we prepare activities/exercises of military units, we can make use of theory of asymetric information that offers wide scope of decision variants. We can use PERT method which is not very difficult to understand. This can help us to disclose hidden reserves, sources, problems. We also could take over experience from other armies. It is important now, when percentage allocated from defence budged is still shrinking.

In the last few years, the Czech Republic has been undergoing deep social changes in which the Army of the CR plays an important role. The soldiers risk their health and even lives, therefore they should take advantage of all benefits offered by state social security. Their professional career, promotions and advances must be taken in account when they are leaving the military service. On the other side, we must also reflect economic capacities of the Czech Republic. The authors enumerate all conditions to be fulfilled, so that soldiers were entitled for veteran benefits, together with the history of various benefits, the ways they used to be handled in the past. Legal adaptations are not systematic solutions. As we have no special law on public service, from which veteran benefits ought to be deduced, we have no general base for proper legal amendments, now being discussed.

Main focus of this article is laid on the digitalization of battlefield, command and control, Network-Enabled Capability (NEC) implementation, organization structures transformation brought about by the 21st Century Soldier concept and its economic implications. Based on this topic, the authors present mobile sensor system as a result of research being done in the Military Management and Tactics Department, University of Defence Brno.

At first, in 1918, the new Czech Republic took over Military Territorial Authorities from the former Austro-Hungarian empire. In 1920 the net of 48 regional Are We Able to Govern at Strategical Level? by PhDr. Antonín Rašek. This is the question asked by the book "Strategical Governance and the Czech Republic", published by the Centre of Social and Economic Strategies, Social Science Faculty, Charles University Prague, in which also the Centre for Security Policy participates. The opening sentence says that humankind is not able to control itself. The team of authors guide us through individual items dealing with world's political and economy situations, plans for economy growth, security and defence concepts, forming supranational security structures and finally towards depressing destiny of adopted strategy concepts and plans. If Czech leadership has any deficiency, then it is a lack of strategical dimension, concludes the reviewer.

It is an age-old problem, how to identify someone or something, to prevent from incidents, in which friendly forces fire on their own troops or vehicles by mistake, because of tiredness, exhaustion, psychological stress, technological defects, unforeseen circumstances, etc. Although there exists a technology carried specifically in an aircraft, combat vehicles, that utilizes coded radio signals to identify other friendly units, adopted measures are not always successful. In NATO, we have standardized systems for such identification: BTID-Battlefield Target Identification Device (for identification of vehicles and helicopters, STANAG 4579); and DSID-Dismounted Soldier Identification Device (for identification soldiers, STANAG 4630). At present, Germany (together with the United States) is in the lead of development system IFF. Systems are conceptually, technologically and tactically synthesized into ZEFF (ZielErkennung Freund-Feind), common for vehicles, helicopters, soldiers, as well as vehicles beyond the area of forces deployment. Source: Europäische Sicherheit magazine, 4/2006.

The proposals of systems approach are sometimes met with a negative acceptance. While solving difficult problems, army members exploit mere practical approaches and they proved to be successful. For that reason the author offers a short glimpse into systems thinking, as necessary starting point for pinpointing the cause of current difficulties. The system is any collection of component elements that work together to perform a task. In economic science, system is used in a variety of contexts. Military cost-effective system can be an essential programme that manage Planning Programming and Budgeting System, flexibly reacting to emerging military challenges resulting from new budget rules (based upon NATO doctrines). One of possible causes of disproportionate and undesirable reactions are wrongly set systems rules, e.g. in market systems manifested by the so-called risks factors. In the forces, the same position ought to be held by unified systems rules, taking into account individual economic subsystems (billing systems, spending elements, etc.), harmonizing them in terms of general independent economic principles.

Arms-importing countries often ask their suppliers to "offset" the cost by reinvesting some of the money in their country. The so-called "arms trade offsets" are thought to enhance domestic economic development. Do offsets mitigate or magnify the military burden? This article examines the theory and policy applications of arms trade offsets and looks at some cases (JAS 39 C/D GRIPEN). It will be a useful and enlightening read for those interested in international development economics, military studies and our Czech policy-makers.

In today's conflicts, such as the Global War on Terrorism in Iraq and Afghanistan, the threat is more difficult to define; in fact, there are often multiple threats working against our forces concurrently. Our army lacks first-hand information from current battlefields, so that the author must make use of mediated experiences. The paper is therefore based upon articles from foreign military magazines, namely Intelligence Synchronization on a Nonlinear Battlefield (Military Intelligence Professional Bulletin 4/2004) and Intelligence in Peacekeeping Operation (International Journal of Intelligence and Counterintelligence 1/1997). It is not a mere translation or compilation, but ingenious summing up of discussed ideas. In this study, the author thinks over intelligence synchronization and proposes a new way of looking at it. Methodology heads from priority intelligence requirements towards specific information requirements, via indicators, and so on. The purpose of intelligence synchronization is to focus efforts to build, refine, or clarify the commander's understanding of the battlefield and the threat.

The defence of country is demanded, but as far as monetary resources are concerned (the effectiveness of which is mostly not transparent), the civilian public takes them as a mistake, as superfluous expenditures. The military economy is an interdisciplinary branch of knowledge, it is a broad subject that can?t be reduced for mere controlling expenses. Still, it is very difficult to assess its recoverability, in comparison with its importance for state defence.

This is the question asked by the book ?Strategical Governance and the Czech Republic?, published by the Centre of Social and Economic Strategies, Social Science Faculty, Charles University Prague, in which also the Centre for Security Policy participates. The opening sentence says that humankind is not able to control itself. The team of authors guide us through individual items dealing with world?s political and economy situations, plans for economy growth, security and defence concepts, forming supranational security structures and finally towards depressing destiny of adopted strategy concepts and plans. If Czech leadership has any deficiency, then it is a lack of strategical dimension, concludes the reviewer.

The article deals with the position of education system under the Czech MoD control and it is focused on the so-called soldier's second professional career. It shows options for its rebuilding after introducing all-volunteer force model, when professional training scheduled for lifetime employment has been changing into training modelled for contract soldiers, much alike the police corps. Education system for career preparation of soldiers and civil servant mustn't be focused on narrowly military subjects. The author proposes more open system, in order to match the demands of the Czech University Act, secondly, because the fact that compatible university programmes will attract students from civilian sphere. Otherwise students may choose other, i.e. civilian universities and Defence University might be abolished.

NSIP-NATO Security and Investment Programme presents an outstanding field of cooperation among Alliance nations and are the fundamental pillar for planning their common defence. The programme serves for securing necessary sources for investments in building, renovation and establishing air and navy bases, strategic depots, core radar systems, and the like. It also supports individual national commands. The article shortly summarizes the history of NSIP, cites examples of its implementation and formulates proposals how to better utilize common sources of this programme. The Czech Republic belongs among states that still enjoy benefits from common funds, particularly in the connection with the building backbone NATO airports. The genuine contributors are Canada, the U.S., and Belgium; at the head of benefit states are Turkey, Greece, and Portugal. It is recommended for Czech representatives at the HQ Allied Command Transformation to increase number of them in decisionmaking staff elements to prevent administrative complications with allocation of approved investments.

Defence system is effective as far as economy is concerned only when target function is met with the minimal overall costs. It is the opening motto to the study by university economy teacher Mr. Krč, Defence University Brno. He concentrates on the so-called outsourcing, both its strong points and drawbacks, audited account, managerial transaction costs, controlling. The outsourcing is a combination of economic, technological, organizational and humane aspects.

The core of this article is lying in general delimitation of objectives, aims, and tools of state economy principles within defence department. It is the question of optimalization, leading doctrines and tools of economy of economy support of defence. The authoress proposes the system of optimalization of economy support of defence and economy and defence policy of state, its introducing into methods and practice.

The proponents of Revolution in Military Affairs claim that modern military technology will lift a "fog of war". In this article the term "fog of war" is described and illustrated in a work of Carl von Clausewitz who is supposed to introduce this term, used also in the famous novel War and Peace by Leo Tolstoy. These classics show us that uncertainty and chance, in other words fogs of war, are essential to human mentality. They will be present as long as war remains within a scope human endeavour. Emphasizing that military technology is equal to lifting the "fog of war" can lead to situation in which only trained commanders are supposed be able perfectly address problems in "chessboard" of war or computer simulators, but they will unable to manage a real world full of chaos, as they not used to count with uncertainties.

Computer-Aided Logistic Support (CALS) appeared for the first time in 1984 in a common study of US government and American defence industry. The study recommended using technical data in digital form. Further it was changed into Computer-Aided Acquisition and Logistic Support and in 1994 the acronym CALS was changed into Continuous Acquisition and Life-Cycle Support. At present we interpret CALS as the support to all automatized processes with fully digitalized data processing. Among its important tools belong LCC (Life-Cycle Costs) and risk management. It is a vast standardization strategy, covering the whole life cycle, via acquisition process, its support, innovation and product disposal. CALS is supposed to make acquisition procedures in the ACR more effective.