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| 1 |
ID:
155839
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| Summary/Abstract |
This article examines military expenditure and defence policy in Norway from 1970 to 2013. Until 1990 Norwegian military expenditure remained between 2.5 and 3.0 per cent of Gross Domestic Product (GDP). Despite constant GDP shares, the military expenditure could not sustain a large and properly armed mobilization army. The constant nominal defence budgets of the 1990s accentuated the Norwegian Armed Forces' underlying imbalance between tasks, structure and budget. Around year 2000, large organizational reforms were effectuated, in which costs, the number of man-years, and underlying imbalances between tasks, structure and budget were reduced. Military expenditure increased in nominal terms between 2003 and 2013, while real military expenditure remained practically constant.
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| 2 |
ID:
144154
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| Summary/Abstract |
This article presents an overview of literature and previous estimates of defence specific investment cost escalation (ICE). ICE, the cost increase between two generations of a weapon system, can place a heavy strain on defence budgets if not properly accounted for. Previous literature specifically pinpoints the competition element as the main driver behind ICE. This article also discusses the role of technology and of supply and demand. Finally, we provide more recent estimates of ICE, using more sophisticated methods than those previously used. Results indicate that ICE estimates are reduced when changes in weapon system characteristics are accounted for.
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