Chapter 5 Southeast Asia: Forming an ASEAN Political-Security Community and Further Challenges
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Offsets in the Aerospace and Defence Industry
Offsets in the Aerospace and Defence Industry 1 Table of Contents 1 Introduction ..................................................................................................... 4 1.1 IFBEC and the Basel Institute on Governance .......................................................................... 5 2 Definitions and Context ................................................................................. 7 2.1 Definitions of offset ................................................................................................................................... 7 2.2 Some specific elements of offset programmes ......................................................................... 9 2.2.1 Valuation Methods .............................................................................................................................. 9 2.2.2 Excess credits and banking ......................................................................................................... 10 2.2.3 Offset credit swapping .................................................................................................................... 11 2.2.4 Financial penalties for companies ........................................................................................... 11 2.3 Size of the defence market ............................................................................................................... 11 2.4 Size of offset programmes ............................................................................................................... -
Study on the Effects of Offsets on the Development of a European Defence Industry and Market
Final Report of 06-DIM-022 Study on the effects of offsets on the Development of a European Defence Industry and Market By E. Anders Eriksson with contributions by Mattias Axelson, Keith Hartley, Mike Mason, Ann-Sofie Stenérus and Martin Trybus 12 July 2007 2007-07-12 Final report of 06-DIM-022 LIST OF CONTENTS Executive summary............................................................................................................................... 3 1 Introduction................................................................................................................................... 9 1.1 Understanding the assignment: our working hypotheses ................................................................ 9 1.2 Delimitation of study..................................................................................................................... 10 1.3 Protection of respondents and data................................................................................................ 11 1.4 Outline of report............................................................................................................................ 11 1.5 The FOI/SCS team ........................................................................................................................ 11 2 Offset conceptual framework .................................................................................................... 13 2.1 Offset taxonomy used in the study............................................................................................... -
Defence Offsets Addressing the Risks of Corruption & Raising Transparency
DEFENCE OFFSETS ADDRESSING THE RISKS OF CORRUPTION & RAISING TRANSPARENCY www.defenceagainstcorruption.org www.transparency.org Transparency International (TI) is the civil society organisation leading the global fight against corruption. Through more than 90 chapters worldwide and an international secretariat in Berlin, Germany, TI raises awareness of the damaging effects of corruption, and works with partners in government, business and civil society to develop and implement effective measures to tackle it. For more information go to: www.transparency.org TI’s international defence programme, Defence Against Corruption (DAC) helps to build integrity and reduce corruption in defence and security establishments worldwide through supporting counter-corruption reform in nations, raising integrity in arms transfers, and influencing policy in defence and security. To achieve this, the DAC team works with governments, defence companies, multilateral organisations and civil society. DAC is led by Transparency International-UK on behalf of the TI movement. Information on Transparency International’s work in the defence and security sector to date, including background, overviews of current and past projects, and publications, is available on TI’s Defence Against Corruption website, www.defenceagainstcorruption.org First published April 2010 Publisher: Transparency International-UK Acknowledging the debt Transparency Authors: Ben Magahy, Francisco Vilhena International-UK (TI-UK) owes to all those Reproduction in whole or in parts is da Cunha and Mark Pyman. who have contributed to and collaborated permitted, providing that full credit is Editing : Julia Muravska and in the preparation of this publication, given to Transparency International-UK, Anne-Christine Wegener. we should make clear that TI-UK alone and provided that any such reproduction, Design: www.onehemisphere.se is responsible for the content of the whether in whole or in parts, is not sold document. -
Offsets in Defense Trade Eleventh Report to Congress
Offsets in Defense Trade Eleventh Report to Congress January 2007 U.S. Department of Commerce Bureau of Industry and Security Offsets in Defense Trade Eleventh Study Conducted Pursuant to Section 309 of the Defense Production Act of 1950, as Amended U.S. Department of Commerce Bureau of Industry and Security Office of Strategic Industries and Economic Security January 2007 For more information, please contact the Office of Strategic Industries and Economic Security at 202-482-4506 www.bis.doc/osies i Table of Contents EXECUTIVE SUMMARY ............................................................................................................iii 1 BACKGROUND ..................................................................................................................1-1 1-1 STATUTES AND REGULATIONS.........................................................................................1-1 1-2 U.S. GOVERNMENT POLICY ............................................................................................1-2 1-3 OFFSETS TERMINOLOGY .................................................................................................1-3 1-4 COUNTRIES AND REGIONS..............................................................................................1-5 1-5 SCOPE OF REPORT..........................................................................................................1-6 2 STATISTICAL OVERVIEW ..................................................................................................2-1 2-1 GENERAL OVERVIEW.......................................................................................................2-1 -
Security & Defence European
a 7.90 D European & Security ES & Defence 2/2018 International Security and Defence Journal COUNTRY FOCUS: MALAYSIA ISSN 1617-7983 • www.euro-sd.com • March 2018 Unmanned Maritime Systems Game Changer for EU Defence? Spain: Increasing Funds for Defence 25 member states established the ”Permanent Seven new programmes are to be scheduled Structured Cooperation“ (PESCO). for the next 15 years. Politics · Armed Forces · Procurement · Technology The backbone of every strong troop. Mercedes-Benz Defence Vehicles. When your mission is clear. When there’s no road for miles around. And when you need to give all you’ve got, your equipment needs to be the best. At times like these, we’re right by your side. Mercedes-Benz Defence Vehicles: armoured, highly capable off-road and logistics vehicles with payloads ranging from 0.5 to 110 t. Mobilising safety and efficiency: www.mercedes-benz.com/defence-vehicles Editorial The Balkans Are Losing Their Illusions At the beginning of the year, Bulgaria strategy”. If this were true, the authors took over the presidency of the European would have performed a particularly great Council. The six months in which a Mem- service by giving the term a new content. ber State exercises this honorary position, So far, it has been assumed that a strategy before passing on the baton to the next indicates how a goal should be achieved. capital city, are too short for course- However, this document offers only vague setting. Certainly, at least for a moment, hints. Instead, it lists once again what the President of the Council can put issues requirements applicants must fulfil in or- that are important to him on the agenda. -
Export-Import Theory, Practices, and Procedures Second Edition
Belay Seyoum, PhD Export-Import Theory, Practices, and Procedures Second Edition Pre-publication REVIEWS, COMMENTARIES, EVALUATIONS . his book covers a number of sig- this book starts with a brief history of “T nificant gaps that are not ad- international trade and concludes with dressed elsewhere. By focusing specifi- a sample distributorship agreement, cally on trade rather than other forms speaks to the singular achievement of of international expansion, Dr. Seyoum this book: true cover-to-cover, and top- has achieved the near-impossible—in- to-bottom, coverage of all relevant is- depth and thorough coverage of both sues in exporting and importing.” the theory and the practice of export- ing, and significantly broader coverage Dr. Nicolas Papadopoulos, PhD of importing than is the norm, thus of- Professor of Marketing and International fering the most complete coverage of Business; Associate Dean (Research); all facets of trade that I have seen. It ex- Director, International Business Study cels by integrating theory with practice Group, Eric Sprott School of Business, and exports with imports. The fact that Carleton University, Ottawa, Canada More pre-publication REVIEWS, COMMENTARIES, EVALUATIONS . nternational Trade has always been Commerce Department is a boon to “I a hands-on subject and the few any new or seasoned export manager. books that are out there do not address The useful presentation of typical im- anywhere near the width and depth port and export transactions as well as that Export-Import Theory, Practices, and samples of distributor agreements and Procedures: Second Edition, does. Each of business plans put this book way the twenty chapters in this book closes above any other in its class.” with a great summary. -
Cross Analysis on Compensatory Measures in International Public Procurements Contracts
Manufacturing in Myamar Photo credits: Christian SYLVAIN Cross analysis on Compensatory measures in international public procurements contracts This is the first step which is a cross analysis between 8 levels of criteria and the 11 selected countries. The objectives were to make an inventory of offsets practices and determine common principles of offsets. WORLD BANK COMMITTEEEDITED BY THE EUROPEAN CLUB FOR COUNTERTRADE AND OFFSET Cross analysis on Compensatory Measures in International Public Procurements contracts TABLE OF CONTENTS INTRODUCTION ......................................................................................................................................................... 3 CONCEPT NOTE ......................................................................................................................................................... 9 LEVEL 0: ECONOMIC DATA ......................................................................................................... 13 LEVEL 1: International institutions & public procurement measures ........................ 15 LEVEL 2: Regional/ multi / bilateral agreements on government procurement signed with other countries ...................................................................................................... 16 LEVEL 3: Inventory of national legislation and rules applicable at national levels on government procurement .................................................................................................... 22 LEVEL 4: Offsets rules at national -
Why Failed So Often the Offset Part of a Defence Procurement Deal? – a Case Study Based Examination
Business Management and Strategy ISSN 2157-6068 2014, Vol. 5, No. 2 Why Failed So Often the Offset Part of a Defence Procurement Deal? – A Case Study Based Examination Heinz Kirchwehm (Corresponding author) Faculty of Business Administration, Turiba University 68 Graudu Street, Riga, LV-1058, Latvia E-mail: [email protected] Received: July 04, 2014 Accepted: August 13, 2014 Published: September 8, 2014 doi:10.5296/bms.v5i2.6283 URL: http://dx.doi.org/10.5296/bms.v5i2.6283 Abstract An offset obligation is a countertrade which must be accepted in order to win the contract for a superior procurement project. This type of countertrade takes mainly place by government to government and commercial sales in the aerospace and defense business. Offset can be executed in the form of industrial, commercial and political agreements and serves essentially to meet the socio-economic objectives of the buying side. Therefore that today nearly every larger procurement project has offset obligations is the composition of the offered offset package the main distinguishing criterion between the various competitors. The value of such an offset package is accounting a multiple value of the actual procurement project. So, there are many good reasons for the successful execution of offset projects. Nevertheless we have the situation that offset projects are failing! Therefore, with view on the still large amount of outstanding offset projects, it is of great importance for the companies to know the reasons why offset projects are failing. The aim of this paper is to examine the specific circumstances of failing offset projects as part of defence procurement deals. -
Contribution of Offset to Defence Industrialisation in Indonesia
CRANFIELD UNIVERSITY CURIE MAHARANI SAVITRI CONTRIBUTION OF OFFSET TO DEFENCE INDUSTRIALISATION IN INDONESIA CRANFIELD DEFENCE AND SECURITY PhD THESIS Academic Year 2016 Supervisor: Professor Ron Matthews May 2016 “This thesis is submitted in partial fulfilment of the requirements for the Degree of PhD” @Cranfield University, 2014. All rights reserved. No part of this publication may be reproduced without the written permission of the copyright holder the page is intentionally left blank ABSTRACT Offset is compensation given to a buyer country for an arms sale. Initially perceived as ‘necessary evil’ in an imperfect defence market, it now serves dual purposes: a marketing strategy for defence industry and a procurement policy for buyer country to generate add on benefits from arms import. Offsets proliferate, and so are stricter mandatory government policies. Still evaluation of offset has been difficult, mostly done in a country-based setting using anecdotal evidence that result in mixed findings. Following the issuance of mandatory offset policy in Indonesia through Law on Defence Industry in 2012, evaluation of past and current offset practice have become not only relevant but also critical to provide policy feedback. This dissertation provides an empirical examination on how offset has been understood and practised in Indonesia, and its contribution to defence industrialisation. The timeframe chosen is 1988-2014, when countertrade has been used to support the lifecycle of strategic industries: development (1988-1998), survival (1999-2009), and revitalisation (2010-2014). This study derives its validity and reliability from triangulation, comprising secondary data, survey, and case study. Three variables are analysed: technology development through ‘strategic industries’, defence offset, and defence industrialisation. -
Universitas Indonesia Dinamika Persenjataan..., Gita Nadya Herdiani, FISIP UI, 2012 2
UNIVERSITAS INDONESIA DINAMIKA PERSENJATAAN INDONESIA DAN MALAYSIA : STUDI TENTANG PENINGKATAN KAPABILITAS MILITER INDONESIA BERKAITAN DENGAN KONFLIK AMBALAT (2006-2010) TESIS GITA NADYA HERDIANI 0906589785 FAKULTAS ILMU SOSIAL DAN ILMU POLITIK PROGRAM PASCASARJANA HUBUNGAN INTERNASIONAL JAKARTA JUNI 2012 Dinamika persenjataan..., Gita Nadya Herdiani, FISIP UI, 2012 Dinamika persenjataan..., Gita Nadya Herdiani, FISIP UI, 2012 Dinamika persenjataan..., Gita Nadya Herdiani, FISIP UI, 2012 Dinamika persenjataan..., Gita Nadya Herdiani, FISIP UI, 2012 v KATA PENGANTAR Alhamdulillah hirobbil ‘alamin Dengan ini saya mengucapkan puji syukur kepada Allah SWT atas kesempatan dan kesehatan yang diberikan kepada penulis sehingga saya dapat menyelesaikan penelitian berjudul Dinamika Persenjataan Malaysia dan Indonesia: Studi tentang Peningkatan Kapabilitas Militer Indonesia Berkaitan Dengan Konflik Ambalat (2006-2010) ini tepat pada waktu yang telah ditentukan. Sebuah karya yang berupaya menganalisis peningkatan kapabilitas militer indonesia sehubungan dengan adanya konflik Ambalat. Saya menyadari bahwa penyelesaian tesis ini tidak mungkin tercapai tanpa pihak-pihak yang telah banyak membantu dan membimbing. Oleh karena itu, perkenankanlah saya untuk menyampaikan ucapan terima kasih yang sebesar- besarnya dan sedalam-dalamnya kepada: 1) Bapak Dr. Fredy BL. Tobing, selaku Dosen Pembimbing yang telah berkenan meluangkan waktu, tenaga, membagi ilmu serta memberikan masukan di dalam tesis ini. 2) Bapak Dr. Makmur Keliat, selaku Ketua Program Pascasarjana Hubungan Internasional Universitas Indonesia, yang telah memberikan penulis kesempatan dalam menyelesaikan tesis ini. 3) Kedua orang tua penulis, Ir. Hermawan, MSi, dan Dra. Dyna SA, MM atas doa dan kasih sayang dan semangat tanpa henti serta kepercayaan bahwa penulis pasti bisa melalui tesis ini dengan baik. Tidak ada daya bagi penulis tanpa ridho papa dan mama. -
DEFENCE ACQUISITION International Best Practices
DEFENCE ACQUISITION International Best Practices DEFENCE ACQUISITION International Best Practices Edited by Laxman Kumar Behera Group Captain (Retd) Vinay Kaushal INSTITUTE FOR DEFENCE STUDIES & ANALYSES NEW DELHI PENTAGON PRESS First Published in 2013 Copyright © Institute for Defence Studies and Analyses, New Delhi ISBN 978-81-8274-711-1 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without first obtaining written permission of the copyright owner. Disclaimer: The views expressed in this book are those of the author and do not necessarily reflect those of the Institute for Defence Studies and Analyses, or the Government of India. Published by PENTAGON PRESS 206, Peacock Lane, Shahpur Jat, New Delhi-110049 Phones: 011-64706243, 26491568 Telefax: 011-26490600 email: [email protected] website: www.pentagonpress.in In association with Institute for Defence Studies and Analyses No. 1, Development Enclave, New Delhi-110010 Phone: +91-11-26717983 Printed at Syndicate Binders, A-20, Hosiery Complex, Phase II, Noida-201305 Contents Foreword ix Keynote Address xi Acknowledgements xiii List of Contributors xv Introduction xvii 1. Categorisation Options: User’s Dilemma 1 A.K. Nagalia 2. Challenges of Commercial Evaluation 12 Harish Masand 3. Cost Estimation for Determining Reasonable Price in Capital Acquisitions: MoD Experience 26 Rajnish Kumar 4. Towards an Optimal Procedural Framework: The Indian Experience 41 R.K. Ghose 5. Fine Tuning Procedural Framework to Achieve Balance in Defence Acquisitions 55 Alina Arora and Yohan J. Balan 6. Defence Acquisition: Indian Army’s Perspective 76 Viney Handa 7. -
Indian Naval Aviation
February-March 2017 Volume 12 No. 1 `100.00 (India-Based Buyer Only) AERO INDIA 2017 SPECIAL MEET US AT HALL AB (AB3.46) www.spsnavalforces.com ROUNDUP THE ONLY NAVAL MAGAZINE FOR NAVIES ACROSS ASIA-PACIFIC PAGE 4 COVER STORY EXCLUSIVE Interview PHOTOGRAPH: Boeing Ashok Kumar Gupta Secretary, Defence Production PAGE 5 india’s Maritime Reach — Navy Budget 2017-18 The total allocation for defence is `2,74,114 crore (about $42.17 billion) which is 6.2 per cent higher than last year’s allocation of `2,58,000 crore and is 1.62 per cent of the GD P. Lt General Naresh Chand (Retd) PAGE 7 Royal Malaysian Navy With a coastline of 4,675 km, an exclusive economic zone covering an area of 5,98,540 square km, and geographically straddling some of the most important Indian Navy’s P-8I Long-Range Maritime Reconnaissance & Anti-Submarine Warfare aircraft sea lines of communication in the world, Malaysia is without doubt a maritime nation with an important role to play. Lt General Naresh Chand (Retd) PAGE 8 EXCLUSIVE Navantia is Here Modernisation of (in India) to Remain Indian Naval Aviation The Vision Statement of the Indian Navy envisages itself as the maritime power for national prosperity in the form of multi-dimensional, multi-spectrum and networked force Neetu Dhulia of SP’s Naval Forces had an exclusive opportunity to visit the Frigate n REAR ADMIRAL SUSHIL RAMSAY (RETD) Indian Naval Aviation assumes greater carrier-borne fighter aircraft was found in F-105 – Cristóbal Colón, visiting Mumbai significance and relevance.