Are We Really Lacking the Effectiveness of Financial Resource Management in the Defence Sector?

Abstract

Recently, the increase of spending in the sector of defence has opened up larger and larger spaces for the development / modernisation potential of individual countries. However, in this “resource overflow”, the effectiveness of the use of financial resources for defence is undermined. This study takes a look at the dangers of the ever-decreasing defence budget share (dangers well known in economics and well known in the field of defence sphere in the recent past) and the “free-rider effect” observed in different members states of the NATO (related to e.g. NATO Article 5) and reviews the effectiveness of financial resource management.