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Institutional Economic Analysis Of Defense Acquisition Reform

Posted on:2008-05-04Degree:DoctorType:Dissertation
Country:ChinaCandidate:H T WenFull Text:PDF
GTID:1116360215953113Subject:Western economics
Abstract/Summary:PDF Full Text Request
After World Warâ…¡, the defense acquisition of various countries gradually changed from emergent weapon equipment acquisition into the acquisition that aimed of economic recovery, specifically, to decrease the expense and to improve the efficiency of acquisition. With McNamara reform in 1960'and Packard reform in 1970', American, Britain and other countries began to carry out the defense acquisition reforms in succession. The US government has revised its defense policy seven times since 1971 to reduce the acquisition cost, shorten the acquisition process and strengthen the acquisition supervision, in order to lessen the rent-search during the process of acquisition. Meanwhile, it also executed CALS(continuous acquisition and life-cycle support) to insure the process and applicability of weapon equipment. At the same time, the UK put forward the"Smart Acquisition"strategy to make the process of defense acquisition"faster, cheaper, better". Henceforth, military industry also experienced the privatization along with the privatization wave of 1980's, which resulted in a stronger competition in the military product market. Because of the development of military and civil dual-use technology, the technology barrier of entry into the military product market became lower, which increased the military industry mergence and acquisition. Meanwhile, with the accelerated development of globalization and new economy, the globalization of defense industry's mass production again induced a new round defense acquisition reform. After entry into 21 century, the new military revolutionary deepened the defense acquisition reform. USA, who had the most integrate acquisition system in the world, still frequently adjusted their decision-making system and executive system of acquisition. So, from the first acquisition reform of USA in the 1950's, the acquisition reforms, which decided the national security and expended huge national defense budget, never stopped in the whole world.China began to unveil the prelude of defense acquisition reform in 1980', but the genuine reform was after 1998. Chinese government reformed the planned management system of national defense acquisition in 1998, and carried through the management reform and enterprises'structural readjustment of national defense industry. In 1999, China took the lead in making experiments on logistics support socialization, and in 2000 it outspread in the whole military, which provided abundant conditions and practical evidence for weapon equipment acquisition socialization. During this course, the problems about equipment support socialization were also been explored gradually. Chinese government has enacted some policies about defense acquisition reform, namely, private companies will be permitted to enter into the military industry field and to attend defense acquisition as a supplier. It means that the defense acquisition market in China will be open step by step. Due to the special social system of China, many questions, for example, how to execute these policies, whether to reform by institutional transport or by institutional innovation further, how to select a suitable institutional arrangement and institutional way, all will be put into agenda. Based on above questions, to design a better defense acquisition system as soon as possible by cost and revenue analysis on different institutional arrangement, particularly by comparative analysis on defense acquisition reform of China and USA, is very important.This dissertation aims to revise and adjust the institutional arrangement and practice of defense acquisition in China through comparative analysis. Then the author tries to find a series of suitable methods to execute defense acquisition innovation. There are 6 parts as followed:1. Introduce the defense acquisition theory. The main content of this part is to definite the defense acquisition, analyze the characters of defense acquisition market , make clear the particularity of natural monopoly of defense acquisition and characteristics of weapon equipment as public goods, then analyze the drawback of defense acquisition market, all of them prepare a theory basis for advanced research. Last to distinguish the difference between socialization, privatization and marketization, in order to bring a better understanding of defense acquisition reform in following chapters.2. Introduce the history changes of defense acquisition reform in China in three phases; review the defense acquisition reform historical fact and the defense acquisition socialization reform recently through different aspects such as management system, organization adjustment, expenditure changes, measures, policies and competitive mechanism; summarize the achievements of acquisition reform in different phases; and point out the problems of defense acquisition socialization reform in initial stages.3. Analyze in detail the reasons of institutional change, model choices and possible change path of defense acquisition. This part is based on the institutional change concept and relevant theory literature using the method of institutional analysis. Though applying this theory into the defense acquisition reform practice of China, the institutional change models of China are demand-response compulsive institutional change model plus evolutionary acquisition model. The main institutional change path follows"jalousie"character.4. Analyze the defense acquisition reform of US. The defense acquisition system of US is the most integrate system in the world, which represents higher level of defense acquisition. This dissertation analyzes the defense acquisition system of US through following parts: background, establishment, decision-making support system, execution system, military industry reform, human resources management, legal construction and supervision mechanism. In all, the defense acquisition reform of US is a kind of partial reform and embodies the character of"centipede"model.5. Comparatively analyze Chinese and American acquisition reforms by charts based on the above two chapters, and the disadvantages of Chinese defense acquisition are clear. Combined with the practical conditions of China, the possibility and problems of institutional transplant are explained.6. Bring forward the countermeasures and proposals of institutional environments, marketization reform and institutional variance of defense acquisition.
Keywords/Search Tags:defense acquisition, reform, institutional, change path-selection
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