Applying economics to the defence sector raises many issues concerning more efficient use of defence resources and further analysis and management.
This effort covers several areas, including human resources, investment (armaments), purchasing, export, outsourcing, regulation of the industrial sector and estate assets.
The figures involved in defence economics are numerous and belong to diverse organisations such as the Ministry of Defence (including Defence Staff, Armaments Procurement Agency (DGA) and General Secretariat for Administration (SGA)), industry, consultancies and universities.
Various methods based on proven management models are used, as well as statistical tools and a rigorous analytical economic framework.
During the first council on modernising public policy on the 12th of December 2007, the government decided on vigorous action regarding purchasing in order to make the purchasing function more professional and reduce current purchasing expenses.
Reorganisation of the European defence industry is well underway. The Ministry of Defence is committed to it because it is part of a policy project to which France subscribes. France’s strategy and effort in the defence industry are clearly committed to the building of a European defence and security space.
The monitoring centre for defence economics (OED) is part of the Financial Affairs division in the General Secretariat for Administration. It performs economic and statistical analysis on defence with the objective of managing and encouraging work in this area.
The Defence Economic Council organises dialoguebetween key figures with recognised competence: defence professionals, key individuals in Franceand abroad in business, economics, universities, the media andcivil administrations as well as political and parliamentary representatives.
DGA leads and coordinates State support for armament exports. With its network of defence and armaments attachés, DGA provides business with knowledge of the international environment.
As a user of a significant real estate holdings including special infrastructure, the Ministry of Defence has, for several years, implemented a property policy that fulfils the objectives of government policy: preparation of master plans, obsolete building inventory and property transfers.