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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.

90s introduced the new beginning of international and economical relations. The former USSR used to be overmilitarized state that is now transforming into a democratic republic. After 2000, the RF adopted many arrangements to stabilize the fall of Russian defence industry. The poor results of Russian economy motivated the federal government towards forming five defence agencies (in 1999): Russian Aeronautic and Space Agency (aeronautics and rocket industry), Russian Agency for Command and Control Systems (avionics, electronic industry), Russian Agency for Conventional Weaponry (arms and armament industry), Russian Agency for Ordnance and Munitions, Russian Agency for Shipbuilding. Nevertheless, the ageing of redundant and unnecessary military industries demands horizontal integration that might facilitate cooperation among individual enterprises. This process could help to unify military products and concentrate on modern weaponry, to improve applied technologies, corresponding to demands of 21st century forces.

Since the 90's of the last century we have witnessed the discussions over extended concept of security, under which no national state is the only privileged security subject. The classical military concept is extended both "above", towards international, global and regional problems covering economy, social, environmental or humane issues and "down", in the direction of local communities, NGOs, private subjects and even individual citizens. Even though several important constitutional laws reflecting EU criteria were adopted, we still miss constituting and complete overall concept Czech security system. Of course, we have a document "Optimalization of Security System of the Czech Republic", but it is not the genuine concept, but a mere summary of practical measures dealing with temporary problems, namely after the Floods 2002. The author dares the public to open debate about priorities and goals of security politics of our country, in order to lay down, under general consensus, realistic security system, able to face the whole range of security threats and risks, explicitly in the broad international frame of NATO and EU.

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.

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.

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.

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).

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.

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.

Czech MoD has to be economical with resources provided from the state budget. The article deals with the distribution and structure of state budget in relation to MoD itemized summary of expected income and expenditures. The authoress discusses several patterns used in this field, e.g. costminimization analysis, or assessing the total amount of money allocated for a specific purpose during a specified period. She also points to several unintended mistakes done by MoD officials.

What is Necessary to Consider in the Process of Organization Structures Construction, Military Forces Equipment and Training in ACR, after the Ending of "Conception" by Ing. Antonín Krásný, CSc. The very welcomed "Concept of Development of the Professional Army of the Czech Republic and the Mobilization of Armed Forces of the Czech Republic" had to be revised because of the lack financial means. This fact influenced a lot of live of our army. Additional career officers were to leave his services; military material, vehicles were further reduced. At present, we have to balance our military strength with security demands reflecting running changes in world's security surrounding. The main aim of the article is to describe development of security environment in the Central Europe. It considers decision mechanisms reform in NATO and transformations of its military forces structures. It highlights an impact of demographic, technological, institutional changes and changes in value system of defence assurance of the CR. We must still bear in mind that for us, NATO alliance, supplemented by the EU structures, is the main tool of our security.

This piece of writing is a polemic with the article by Maj. Pernica "System of Planning, Programming, Budgeting (and Flogging a Dead Horse)? in Vojenské rozhledy 4/2005. Allegedly, the criticized article quoted some misleading statements, based on financial records, inappropriate for this purpose. Ing. Dušek does not agree with its general idea, introduced out of contexts. The Planning, Programming and Budgeting System was introduced by leading economy experts (e.g. university professor Mr. Ochrana, School of Economy, Prague). Some deficiencies and shortages are inevitable, but as a whole, the PPB system works. Statistics is a dynamic science and statistical data are to be judged only in connection with statistical methods used in years in concern. For example, in answering the Defence Planning Questionnaire, we were asked by NATO authorities to transfer entries for leasing Grippen aircrafts from modernization and development items to the operational item. Consequently, the percentage of investment purchases decreased. The same goes for the percentages of National Gross Domestic Product spent for military budget, and so on. Moreover, MoD financial department put several useful proposals how to make financial flows more clear, but the were refused by the government.

Summary of Security Com174 munity Views - Part One. Despite the fact that most of the predictions made in the early 20th century did not realized, there are still plenty of arguments for drawing security prognoses as the only method assessing synthetic alternatives of future progress. The future is not unequivocally determined, as the all comprising development is strongly influenced by subjective motives. We must have scenarios upon which we can act, operate, namely in the field of security. The government ought to set clearly our security agenda, where and why we are going to make possible military engagement. All further actions are developing from those prognoses, i.e. buying tanks, helicopters, parachutes, armoured vehicles, etc. The first part of this security study covers several predictions containing even some controversial visions. They are based upon the opinion survey done among members of Czech military community. The field of investigation comprises EU, US, North Korea, Iran, Iraq, Africa, Asia, even hypothetic Russia-China conflict, terrorism, weapons of mass destruction, and the like.

Security situation has been changing all over the world, so has in regional territories. It is necessary for us to create systematically new safety culture with regards to contemporary knowledge and experiences. The Czech Republic contribution to the safety of democratic states must meet their expectations; prospective security studies will have to bring new knowledge and technology which, first of all, will increase the level of general capabilities of the Czech Republic and at the same time to take into consideration the needs of national economy and Czech environment. Capital investments into security research are necessary as a basic input for the safety preparedness level of the CR. For these purposes it is desirable to establish security research that will be able to produce ideas and technologies which will sustain and renew the Czech Republic safety in changing conditions, among others taking note of a Seventh Framework Programme of EU for research,

In the early 21st century defence research can be discussed in two ways: we can stay either within existing discipline "theory of state defence", or we can set up new academic specialization concentrating more on the notion "security" and its individual aspects, including their inner ties. In the former case, there are spheres in which civil and military experts can complement each other, whereas other spheres of studies ought to stay exclusively in the domain of military experts. Mutual cooperation between civilian and military experts can be concentrated on systematic studies of security threats, predictions of potential conflicts, analyses of security cooperation between the Czech Republic and NATO, the EU and the OSCE, economy support of state defence. On the contrary, military specialist ought to focus on e.g. major regional conflicts, low intensity conflicts, military operations other than war. As the term "security science" is not used in NATO nations, the author suggests, it would be more useful to preserve academic discipline "defence theory" to make full use of military experts.

On 13-17 March, 2006, the Directorate of Centre of Simulation and Trainer Technologies Brno ran experimental computer-aided exercise dealing with combat activities of a Battalion Task Force (BTF) in urban area. It was outlined as a double-sided opponent procedural exercise, with the use of computer potential, in attendance of staff and personnel from Special Force Command, Support and Training Force Command, Training Base Vyškov, Military Academy Vyškov, designated unit commanders from Special Force, namely 72 Mech Bt. This experimental exercise proved right some factors that are prepared in accordance with NATO operational concept USECT (Understand, Shape, Engage, Consolidate, Transition). In the first place, the experiment demonstrated the practicability of manoeuvre attack by BTF on fully prepared opponent's defences and subsequently occupying his positions and locations, even though at the cost of relatively higher losses of combat vehicles. The article is accompanied by the Table of Exercise Summary.

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.

In view of the fact of recent transitions in the Czech Republic, the Czech military must satisfy a large set of new requirements, including those tied with military defence intelligence. The article examines the key legislative changes under Acts No. 153/1994, No. 289/2005, No. 290/2005 and their actual implementation, linked with various stages of political and strategical management. There is no flawless pattern for military intelligence community. It is influenced by many circumstances: history, traditions, state of affairs. The author does not want to criticize today's model, organizational changes. Present-day establishment is integrated, which has certain advantages and some benefits, e.g. after 9/11 2001 American intelligence services were criticized for their insufficient integration. Adopted laws and rules, instruments for optimalization of present security system of the Czech Republic, are outlined on the basis of Table Supplement "Information on the Results of Czech Security System", www.mvcr.cz.

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.

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.

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.

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.

This essay is practically the first public essay concerning the system of financial standards within the scope of the Czech Ministry of Defence. The author describes current system of financial standards in short-term a medium-term planning. He clarifies their creation, points at some absences and outlines areas suitable for further research. The document is based upon data collected in the specific research project SV05-VVŠ-K02-10-ING. The article is accompanied by several tablets of financial items and cost sheets for individual financial standards.

The practice of a company sending work to outside factories to reduce production costs is called outsourcing. Outsourcing is one of many methods that might help defence department to fulfil a number of various tasks that either can't be accomplished within the armed forces or such work or services can be obtained at low-costs in civil sector. The authors propose several practicable techniques using dynamic outsourcing model to identify prospective services to support given transformation process.

The world is full of unsolvable problems. Every key problem has turned now into multinational one; in fact, this can be handled only if it becomes a transnational problem. Security development is multifaceted process tied with the whole globe. The author recapitulates several models or paradigms that influenced a lot our global strategical thinking. The Grand Chessboard: American Primacy and Its Geostrategic Imperatives by Zbigniew Brzezinski; The Choice: The Global Domination or Global Leadership of by the same author; The Clash of Civilizations by Samuel P. Huntington; Avin Toffler's The Third Wave; Kauffman's Fourth Law: Prolegomenon to General Biology (Investigations); Order Out of Chaos by I. Prigogine and I. Stengers. Dr. Volner says that the contemporary humankind has its last chance to push such a solution that might lead us out the world of dangers and threats to start building up a balanced and lasting security, but he warns against waging "small preventive wars", as the only way to safeguard the peace.

Even after the Cold War, our world is full of local and international conflicts. There were dozens of wars, fringe clashes between local opposing groups in Africa, Asia and so on. Among them there were four wars of lager size, with more than thousands of deaths in each of them that could be characterized as international wars: Desert Storm 1991, Iraqi Freedom 2003, Allied Strength 1999, and Enduring Freedom 2001. Now we can look at them from a distance ...217 Problems tied with those large-scale wars have several levels: supranational (international) level and military level, being accompanied by paradoxes: international and political paradoxes and military ones. This influenced structures and methods of training and preparation of Australian, Britain and US forces. The lessons were embedded into their military concepts, rules and regulations, e.g. Complex Warfighting (Australia), Future Land Operating Concept (UK), Field Manual: Interim Counterinsurgency Operations (US). New roles of military forces, global and local implications, ought to be embedded also into the structures and concepts of the Army of the Czech Republic, concludes the author.

The China's impact on world affairs is growing and will grow further in decades to come. Those years will be critical for Taiwan, and for its relationship with other states. Three related factors determine the texture of this interaction: the policies evolving in Beijing, internal developments on Taiwan, and the international environment. Beijing has offered Taipei several proposals for reunification. The proposals, including the recent "one state, two systems" proposal, allow Taipei to maintain its social and economic system, its armed forces and its unofficial ties with foreign countries. China's grand strategy is to make war while avoiding the battle. Therefore, Taiwan is to be persuaded that the acceptance of "One China" principle is vitally important for preventing the Taiwanese independence. Otherwise, People's Armed Forces will open an invasion to Taiwan by three successive attacks: (1) high precise medium-range ballistic missiles DF-21C with the aim to suppress air defence; (2) the second stroke would be massive attack with short-range precise missiles; (3) the last stroke ought to be done by cruise missiles. This essay is adapted from articles by Mary C. Fitzgerald and Eric A. McVadon, Armed Forces Journal 11/2005.