Budgeting for the Military Sector in Africa: The Process and Mechanisms of Control (Sipri Publication)

Contents......Page 9
Preface......Page 17
Acknowledgements......Page 19
Abbreviations......Page 21
I. Background and rationale......Page 23
II. The objective and focus of the study......Page 26
III. Methodology and scope of the study......Page 29
IV. The structure of this book......Page 34
V. A note on the study findings......Page 35
Table 1.1. Military expenditure per capita in 2004 and as a share of gross domestic product in 2000–2003, by region and by income group......Page 28
Table 1.2. Key background facts about Ethiopia, Ghana, Kenya, Mali, Mozambique, Nigeria, Sierra Leone and South Africa......Page 32
II. Good practice in the military budgetary process......Page 36
Box 2.2. Ten principles of democratic governance in the security sector......Page 40
IV. Defence planning, programming and budgeting......Page 51
V. Conclusions......Page 59
Appendix 2A. Good practice in military procurement and acquisition......Page 60
Box 2A.1. A generic procurement process......Page 62
Appendix 2B. Strategic defence planning......Page 63
Figure 2B.1. Defence variables: the ends, ways and means of defence......Page 64
Appendix 2C. A practical model for the determination of optimal defence capabilities......Page 65
Box 2C.1. Optimizing force designs......Page 66
Table 2C.1. Selected practical challenges facing defence planning processes......Page 68
Box 2.1. Ten principles of public expenditure management......Page 38
Box 2.3. Information to be captured by a financial management information system......Page 43
Box 2.4. The legislative capacity to oversee the military sector in West Africa......Page 48
Box 2.5. Causes of deviations between budgeted and actual expenditure......Page 49
Box 2.6. Components of the efficient use of resources......Page 50
Box 2.7. Key elements of the defence plan......Page 52
Box 2.8. Examples of defence administration objectives......Page 53
Box 2.9. Examples of defence commitments objectives......Page 54
Box 2.10. Examples of typical defence programmes......Page 55
Box 2.11. Examples of typical joint force-support objectives......Page 56
Figure 2.1. A generic financial management process for the security sector......Page 42
Figure 2.2. Security environment assessment......Page 44
Figure 2.3. The process for conducting defence reviews and developing defence policyframeworks......Page 46
Table 2.1. The typical annual budget cycle......Page 58
I. Introduction and background......Page 70
II. The military sector and the political economy of military expenditure in Ethiopia......Page 73
III. The national budgetary process......Page 77
IV. The military budgetary process......Page 82
V. Assessing the military budgetary process......Page 86
VI. Issues arising from the study......Page 91
VII. Conclusions......Page 93
Figure 3.1. The military budgetary process in Ethiopia......Page 84
Table 3.1. The distribution of power between the central and regional governments of Ethiopia......Page 72
Table 3.2. Estimated strength of active military forces of countries in the Horn of Africa, 1997–2004......Page 74
Table 3.3. Military expenditure of Ethiopia, 1990–2004......Page 76
Table 3.4. The financial calendar of the Ethiopian Ministry of National Defence......Page 85
Table 3.5. Ethiopian military budget appropriation by sub-programme, 1991/92–2002/2003......Page 88
I. Introduction and background......Page 94
Table 4.1. Military expenditure of Ghana, 1990–2004......Page 96
III. The national budgetary process......Page 98
IV. The military budgetary process......Page 103
V. Assessment of the military budgetary process......Page 111
VI. Conclusions......Page 119
Table 4.2. Timetable for the preparation of the Ghanaian budget for financial year 2003......Page 102
I. Introduction and background......Page 122
II. The military sector......Page 124
III. The national budgetary process......Page 126
IV. The military budgetary process......Page 129
V. Assessment of the military budgetary process......Page 138
VI. Conclusions and recommendations......Page 141
Figure 5.1. Actors in the Kenyan national budgetary framework......Page 128
Table 5.1. Military expenditure of Kenya, 1990–2004......Page 130
Table 5.2. Military expenditure by Kenya and its neighbours as a share of gross domestic product, 1991–99......Page 132
I. Introduction and background......Page 144
II. The security sector......Page 145
III. The national budgetary framework and military expenditure......Page 147
IV. The military budgetary process......Page 149
V. Assessment of the military budgetary process: legal and de facto procedures......Page 153
VI. Conclusions and recommendations......Page 157
Table 6.1. Military expenditure of Mali, 1990–2004......Page 146
Table 6.2. Principal chapters in the budget of the Malian armed and security forces, 2002......Page 148
Table 6.3. Deviation of actual military expenditure from budgeted expenditure in Mali, 1999–2003......Page 154
I. Introduction and background......Page 159
II. The defence and security sector......Page 161
III. The national budgetary process......Page 166
Table 7.3. Military assistance received by Mozambique from select donors, 1999–2002......Page 169
V. Assessment of the military budgetary process......Page 171
VI. Conclusions and recommendations......Page 174
Table 7.1. Directorates of the Mozambican Ministry of National Defence and their functions......Page 162
Table 7.2. Military expenditure of Mozambique, 1990–2004......Page 168
Figure 7.1. The structure of the Mozambican Ministry of National Defence......Page 164
I. Introduction and background......Page 176
II. The military sector......Page 177
III. The national budgetary process......Page 180
IV. The military budgetary process......Page 187
V. The major weaknesses of the military budgetary process......Page 191
VI. Conclusions and recommendations......Page 200
Box 8.1. Extracts from Nigeria’s draft National Defence Policy, 2001......Page 192
Table 8.1. Military expenditure of Nigeria, 1990–2004......Page 178
Table 8.2. A comparison of the Nigerian Ministry of Defence’s proposed budget, government-announced estimates and actual releases from the government, 1999–2002......Page 194
Table 8.3. The composition of Nigeria’s military expenditure, 1999–2005......Page 196
I. Introduction and background......Page 202
II. The security sector......Page 203
III. The national budgetary process......Page 205
IV. The military budgetary process......Page 209
V. Assessment of the military budgetary process......Page 214
VI. Conclusions and recommendations......Page 217
Table 9.1. Sierra Leone military expenditure for financial years 2002–2004......Page 210
Table 9.2. Military expenditure of Sierra Leone, 1990–2004......Page 212
I. Introduction and background......Page 219
II. The Department of Defence......Page 221
III. The national financial framework......Page 224
IV. The military planning and budgetary process......Page 229
V. Assessment of the military budgetary process......Page 239
VI. Conclusions and recommendations......Page 246
Figure 10.1. Structure of the South African Department of Defence......Page 222
Figure 10.2. The South African budgetary process for financial year 2003/2004......Page 228
Figure 10.3. The South African Department of Defence budgetary process for a financial year (1 April–31 March)......Page 232
Table 10.1. Military expenditure of South Africa, 1990–2004......Page 223
Table 10.2. Estimated South African military expenditure by programme for the Medium-Term Expenditure Framework period of financial years 2003/2004–2005/2006......Page 230
Table 10.3. Estimated South African military expenditure by standard expenditure item for the Medium-Term Expenditure Framework period of financial years 2003/2004–2005/2006......Page 231
Table 10.4. Budgeted and actual South African military expenditure by programme for financial year 2003/2004......Page 244
Table 10.5. Budgeted and actual South African military expenditure by standard expenditure item for financial year 2003/2004......Page 245
II. The country studies in the context of the good practices framework......Page 248
III. Categorizing the case studies......Page 273
IV. Explaining the level of adherence to good practice principles......Page 278
V. Summary and conclusions......Page 285
Box 11.1. The medium-term expenditure framework......Page 256
Table 11.1. Defence planning, programming and budgeting in Ethiopia, Ghana, Kenya, Mali, Mozambique, Nigeria, Sierra Leone and South Africa, 2003......Page 250
Table 11.2. Crucial steps in military expenditure management in Ethiopia, Ghana, Kenya, Mali, Mozambique, Nigeria, Sierra Leone and South Africa: a summary of the country reports......Page 252
Table 11.3. Adherence to principles of public expenditure management in the formulation phase of military budgeting by Ethiopia, Ghana, Kenya, Mali, Mozambique, Nigeria, Sierra Leone and South Africa......Page 258
Table 11.4. Adherence to principles of public expenditure management in the approval phase of military budgeting by Ethiopia, Ghana, Kenya, Mali, Mozambique, Nigeria, Sierra Leone and South Africa......Page 260
Table 11.5. Adherence to principles of public expenditure management in the implementation phase of military budgeting by Ethiopia, Ghana, Kenya, Mali, Mozambique, Nigeria, Sierra Leone and South Africa......Page 262
Table 11.6. Adherence to principles of public expenditure management in the auditing phase of military budgeting by Ethiopia, Ghana, Kenya, Mali, Mozambique, Nigeria, Sierra Leone and South Africa......Page 264
Table 11.7. The deviation between the approved budget and actual expenditure on the military sector in Ethiopia, Ghana, Kenya, Mali, Mozambique, Nigeria, Sierra Leone and South Africa, 1999–2003......Page 274
II. Recommendations to national governments......Page 287
III. Recommendations to the international community......Page 294
About the authors......Page 299
Index......Page 303