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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.

Those three E are much in use both in official documents and mass media. Dozens of defence officials use them every day, but actual outputs present that they do not know the key essence of 3E, or they are not aware of how to put them into practice. This article would like to help them to make understand the practical application of basic principles of 3E in practise. The reason of this gap, according to the author, lies in insufficient ties between theoretical and executive spheres of defence sector.

Economy Management by Ing. Svatopluk Kunc. The purpose of this article is to explain the essence of above mentioned economic categories, their linkage to cost accounts, accountancy, to characterize accounting items as an important signpost, to clear mutual ties between the so-called economic rationality and the position of a manager in armed forces. It is not easy task to find unifying point of view. For that purpose the author explains methods of controlling, outsourcing, process management, total quality management, balanced scorecard, value management, etc.

The specificity of defence as a public estate rather complicates necessary changes in public expense management, namely those chapters designated for the armed forces. One of prospective tools for defence economic management is controlling, which is more than mere control. It coordinates planning, information flows, it concentrates on final effects. The authoress explains and depicts how this method is working in the German Federal Forces (Bundeswehr).

Thispaperdealswiththeareaof organization values or to say it better, by organisation culture, including its importance for overall efficiency and effectivity. It is a set of values, norms, beliefs, attitudes, assumptions. The authoresses explain those terms, cite their definitions. They underline the fact that highly motivated servicemen are the real assets for our forces. We have to do our best to recruit them, to set up such quality of military life, so that they would like to serve for longer periods.

The authors depict the development of outsourcing methods in US armed forces, its origins, and sources. Collected data are accompanied by experiences from British and German armies. The American Office of Management and Budget (OMB) issued in 1966 Circular No A-76 (lately several times revisited) to define procedures how to set rules which commercial activities are to be done within the frame of armed forces or in private sector. Backed by a number of literatures, magazines and newspapers (Air Force Journal of Logistics, Air Force Magazine, Armed Forces Journal, Defense Nationale, Washington Technology, Wehrtechnik, etc.) authors analyse several outsourcing processes. They present both positive and negative results, including open or hidden problems of A-76 policy (e.g. business process outsourcing). For the Army of the CR they recommend to overcome above mentioned problems by creating the corrective authority, similar to the British PPPU (PublicPrivate Partnership Unit).

Even though many activities related to intelligence and intelligence network after the end of Cold War were released and have become commonplace, classified matters are still in the centre of public's interest. In discussions, experts use various terms tied with espionage or counter-intelligence, but real differences are not too high. In the armed forces (in the frame of NATO) this question was solved by issuing the manual AJP-2, Allied Joint Intelligence, CounterIntelligence and Security Doctrine (NATO 2003). This article summarises key and basic terms used in intelligence services, including new theoretical concepts from this field. As the author writes in the introductory chapter, many experts, namely in civilian and academic fields use the same terminology, but their explanation differs. They use different definitions reflecting diverse circumstances under which they came into existence. The article was written namely as a contribution to interagency communication, among civilian and professional experts, in time when the overall security concept is changing, when military power is not the only tool to avert wide spectrum of security threats of 21st century.

Security system is an institutional frame for the creation and implementation of Czech security policy. It is closely tied with NATO, the EU, and other international institutions, which enables its compatibility and interoperability within European security systems. The Czech government prepared The Concept of Security System of the Czech Republic that put emphasis on its effectivity and simplified cooperation and coordination among individual components of security structures. The concept was based upon the analysis of Czech security system, covering events after 11/9 2001, NATO Summit 2002, the Floods 2002, etc. Presented principles of the optimalization of current security system of the CR incorporate key proposals of legislative character that ought to be processed in two years; partial measures will be implemented step by step. The author proposes to incorporate mentioned steps into amendments to defence and recruitment laws, laws dealing with emergency or crisis situations. Such amendments are to be offered till the end of 2007.

This new generation war could be characterized by an emphasis on nonstate actors, by political and psychological forms of attacks that directly influence opponents. Other characteristics are as follows: extensive refugee flows, violence, transnational criminal aspects. Several factors will impact the nature, frequency and character of "small wars" in the 21st century. Failed/failing states, urbanization, diffusion of actors, communications technology, technological diffusion, religion, and ultra-terrorism. Clausewitz's fundamental appreciation for the primacy of political objectives as the guiding object in war remains relevant to "small wars" as does to interstate conflicts. The problem for today's strategist or policy maker is determining exactly what has changed, how the various means of stratecraft need to be adapted to the specific contingency at hand (according to The Journal of Strategic Studies, 6/2005).

This article is a sequel to the previous disputes over financial management within the Czech Armed Forces. The origins of the first polemic article lay in gaining facts for research work, arranged by the Faculty of Economics and Management, Defence University, "Allocation and Management of Defence Sources of the CR and the Formation of Economic Thinking in the ACR". The system of planning, programming and budgeting (PPBS) was introduced into Czech forces several years ago, but the it did not worked in a way it was supposed. There were many deficiencies the PPB system suffered from. Unfortunately, the author lacks sufficient data to evaluate properly the performance of this system. He has to combine diverse data sources, booklets, statistics, data releases, to make accurate picture of a day-to-day financial military administration. In his opinion, the system is not transparent enough. He appeals for clear figures, released e.g. on army interned pages, to avert accusation of wasting public sources ...168

Antiballistic defence systems could be defined as a secondary defensive response to ballistic threats, against existing, projected or planned ballistic military hardware. In a way, it is a sort of deterrence weapon, because such defence discourages opponents form the development of offensive missiles. The author of this article, the former deputy defence minister, Maj-Gen. (ret), specifies three relevant antimissiles system: ALTBM-NATO Active Layered Theatre Ballistic Missile Defence; NATO MD-NATO Missile Defence; and USA MD-USA Missile Defence. The purpose of American antiballistic defence is to counterbalance potential strokes by limited numbers of ballistic missiles, blasted off from both enemy and rogue states and those launched by accident. Allegedly, the Iranians are developing ballistic missiles with the range of 4,000 km. With the reference to the fact that the distance Prague-Teheran is about 3,400 km, and such missiles could constitute an eminent danger even for the Czech Republic, not only for the continental United States, this issue is widely discussed in Czech mass media.

The return of Russia as a power that begins again to partake in political agenda of present-day world raises the necessity to reflect its inner developments in the background of its recent history. There are six key factors that substantionally influence the position of Russia in the world: large sources of raw materials (pipelines); outstanding military capacities (the world's second nuclear potential); high level of general education; wide scientific and research base; permanent membership in UN Security Council and in the Group of Eight (G-8); deciding influence in the near neighbourhood. The study comes to the conclusion that Russia-in the horizon of 2020-will belong among world's leading actors, together with the US, the EU, China, and Islamic world. Russia will be able to of enforce its foreign and security goals, both in post-Soviet areas and in key regions in Europe, Asia and in the Great Near East. As such, it will probably get into conflict with the US. The priority tasks of the Armed Forces of the Russian Federation will rest on maintaining nuclear parity with the US and building capacities for asymmetrical operations.

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.

Armed Forces by František Kříž. After September 2001, in operations both in Afghanistan and Iraq, great attention is paid to terrorism throughout the war. In fact, new generation of warfare came in existence. War on terrorism is a large-scale low intensity conflict, without classical confrontations between states, without massive bulk of soldiers. For such type of warfare we can't use weapons of mass destruction, or classical types of warfare. At level of US Army brigade there were some changes in structure and scope of forces. Several new formations were established: Heavy Brigade Combat Teams, Infantry Brigade, Infantry Brigade Combat Teams, and Future Combat System Brigade Combat Teams. In operations, brigade S2 section is reinforced by an analysis and integration platoon, MI Company. The idea of augmentations and reorganizations of S2 groups is to elevate potential in the brigade system of Intelligence Battlefield Operating System. Article is based on articles form Military News, Military Intelligence, Global Security, etc.

The professional base for tactical and operational levels of US ground forces and German Federal Armed Forces are the following manuals: US Army Field Manual 100/5 "Operations", since 2001 being labelled as "Field Manual 3-0", and German HDv 100/100 "Truppenfuhrung 2000". Both manuals were drafted in a closed cooperation. The basic principles of German manual Truppenfuhrung 2000 were imitated and copied by the Netherlands armed forces and partly, to a certain measure, also by other NATO nations. Rules of Field Manual 3-0 were tested in peace operations, in the fight against international terrorism in Afghanistan and during the first phase of Second War in Iraq. In fact, the operations of US forces indirectly proved practicability and effectiveness of nearly identical German field rules and manuals, consequently command principles, including those of the so-called nation building. Based upon an article by MG Christian E.O. Millotat in 3/2006 Osterreichische Militärische Zeitschrift, No 3/2006.

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,

The forward-thinking and respond to the challenges of today's dynamic operational environment demands as necessary: first, to attract and develop young people to become adaptative leaders possessing enhanced skills, i.e. we must align leader-development programmes for the new operating environment; second, to respond to the forces' needs in meeting the challenges of the operational environment-the forces have to undergo a transformation. Adaptability is critical to urban stability and support operations, as these operations present complex challenges to commanders for which no prescribed solutions exist. Warfare and technology are rapidly evolving; doctrine lags behind the need for ready solutions. Officers are confronted by many situations outside the doctrinal framework. No amount of technology can offset the effects of chaos theory ...169 Clearly, there is a need to quickly learn knowledge/skill sets, coupled with a new operating frame that might be radically different from the skills and knowledge developed through classical training (Military Review, January/February 2006, Tomáš Weiser, What is the Chaos? Dějiny a současnost, 5/2002).

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.

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.

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.

After the communist coup détat in 1948, although formally independent, the Czechoslovak army was subordinated under the General Staff of the Soviet Army. Following the year 1960, its inner life was directed by the Central Committee of the Communist Party of Czechoslovakia (KSČ), in fact by the Military Commission, headed by the First Secretary KSČ. Overall militarization of Czech society was even higher than e.g. in Poland, because in case of military conflict, our territory was supposed to play the role of main European theatre of war. In time of the so-called reform movement in the late 60's, there were some trends to release close ties with the Soviet Union, but at the same time the leading political and military authorities tried to place Soviet forces in Czech territory to strengthen Russian position in arms reduction talks with the US, so that the Soviet Union could boost its units at the borders with People's China. The author compares those events with the recent ones, after November 1989, and following processes of introducing civil control in the forces, their reduction, transformation, and professionalization. He quotes names and works of authors occupied with this theme.

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.

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.

Using the example of medium-term planning of development and activities of defence department, the article demonstrates one of possible ways of using the so-called 3E methods. The Czech def inition of 3E is based upon the Act on Financial Control, Control of Public Expenditures, Regulation ISO 9001-2001, and Methodical Instruction MF CR (CHJ- 10). The author compares them with e.g. Financial Management Policy Manual JSP 462, MoD, London, UK.

The article characterises process measuring, the base of which is a system of metrics. They, or indicators come out from principal requirements laid down: process efficiency, process stability, embrace of processes by an organization, qualif ication of processes f or ar r angements of outputs and chances for their permanent innovation. Stated qualities are described above all in relation with process performances. The authoress uses the definitions introduced by the EFQM.

While evaluating spending activities of defence department, it is required to make an audit of results and outputs, besides ordinary accounting and documentation controls. This standard is defined by the European directive for the implementation of audit standards INTOSAI. The author, who is an expertmember in various economy commissions, can seriously declare that the Czech Army is a pioneer institution in the field of monitoring public expenses, namely in comparison with civilian spending ministries.

Mentioned Balanced Scoredcard-BSC is an ef f icient tool that helps to the of f icial management to transform vision and strategy into reality, by means of monitoring key efficiency indicators and their transformation into action plans: BSC covers the package of strategy maps enabling to consider mutual connections. Owning to the transparency cause-consequence relation, we can implement cohesive strategy into all level of the organization.

It is extraordinary important decisionmaking, because of fered products determine the successfulness of arranged contracts. For evaluating suppliers we use the so-called scoring model, in which we specify evaluating criteria and assign the weights. To prevent challenging accepted resolution, our decision ought to be supported by the analysis of the third party. This method is called S.P.A. - Supplier Potential Analysis.

From economic point of view, the army of every nation spends immense sources from the state budget. To spent sources economically, the officers - managers economists have to be educated in economic science, i.e. they ought to acquire proper economic knowledge, systematically, during his military studies, in army college, or defence university. One of many things the ACR is missing is an economic course explaining army officials above all how to find adequate proportion between costs and incomes, not to make decision only intuitively.