The thesis resulting from the research on the “costs-effects”
relation is the principle of economic efficiency of defence capabilities. At
first glance, the arguments in this direction are well-known and popular in
crisis situations of various nature, including the current financial and
economic crisis in the country, the question about the cost of public welfare-
security and defence is debatable. This cost is manifested through the defence
capabilities of a country. In the new security environment the compilation of a
National Defence Strategy is a priority of the Defence Ministry, which has more
and more limited resources. This means that they should be treated as an
economic activity. An economic activity is considered “any purposeful activity,
allocating and combining scarce resources among alternatives, making it
possible to maximize the outcomes and minimize costs”. The ratio between the
costs and benefits of a given resource or combination of resources to achieve a
pre -defined objective is pushed to the forefront and the rationalization of
management decisions is based on it. This necessitates a cost effectiveness
analysis hence the evaluation of the outcomes (benefits) is manifested in the “cost-effect
(benefit)” analyses.
Journal Section | Articles |
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Authors | |
Publication Date | April 30, 2017 |
Submission Date | April 27, 2017 |
Published in Issue | Year 2017Volume: 3 Issue: 7 |
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