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