Contemporary studies show that military power depends not only on manpower, weapons, or resources, but in many cases, success on the battlefield is determined by the potential of human capital, including knowledge, skills, competences, and other capacities [1; 2]. Using a cost-based approach, the author focuses on the input side assessing military human capital potential in the context of defence expenditure – economic development nexus in the Baltic countries, such as Lithuania, Latvia, and Estonia. The investigation covers the period between 2004 and 2020. Defence expenditure on personnel has been used as a proxy for military human capital potential, and real gross domestic product (GDP) per capita as a proxy for economic development. Research is carried out using econometric methods, including Spearman’s correlation analysis and Automatic Linear Modelling (ALM). The research results reveal that investments in military personnel have significant and positive impact on economic development in the Baltic states. Defence expenditure on personnel explains 63.7 percent of variation in real GDP per capita in Lithuania, 71.3 percent in Latvia, and 63.4 percent in Estonia. The author hopes that the findings of the investigation will extend the scope of research across the Baltic States and will be useful for the achievement of Sustainable Development Goals (SDG 8, economic g rowth).
Ensuring the defence of freedom, independence, sovereignty, territorial integrity, and population belongs to the main tasks of each state. Therefore, countries, in response to the current political, security and economic situation, must earmark, within the framework of their national budgets, a proportion of the available resources to ensure their defence. The aim of the article, based on current trends in the defence budgets of the European Union member states, is point out that not only the global economic and financial crisis and the credit and debt crisis in the euro area have a significant negative impact on the amount of resources, which individual European Union member states earmark to ensure their defence.
Public procurement as a system of procedures for purchasing goods and services is quite complex. Especially having in mind international legal regulation and high requirements for the assurance of such principles as transparency, fair competition, non-discrimination, mutual recognition, proportionality. Thus from the other side of the issue, in special fields as defence and national security, it is not always possible to strictly observe the mentioned rules. Institutions in a state, which is facing threats, must be able to flexibly; this would allow balancing the urgency and competiveness of purchasing procedures. Still such situations require clear managing system and legal regulation supporting it. In this article, the authors present the preliminary analysis of management of public procurement for defence and security via disaster management cycle theory and mostly focus on the phase of response towards certain destructive actions. The managerial aspect of the issue is supplemented by the analysis of the legal regulation, which should support managerial processes. Having in mind that in different phases of the disaster management cycle, different methods of management (requiring special legal regulation, as legitimation of such actions) should be applied, examples of two countries are presented. Lithuania as a member state of European Union is chosen to illustrate the reflections of managerial processes in legal acts, which are passed in the phases of mitigation and preparedness. Ukrainian example is presented to illustrate the difficulties, which state may face, when managerial processes as well as legitimation thereof in legal regulations are developed in the phase of response. To answer these questions, literature review, comparison, analyses of documents, synthesis and other methods were used. It is concluded that the public procurement processes definitely should be prepared in advance and every state should be ready for the urgent purchases before the direct threats for security appears. Ukrainian example shows, how it is difficult, costly and requiring other efforts to develop these processes and implement it in the same time. It should be mentioned that raised questions are in the constant process of learning and this article should be considered as a primary steps towards deep analysis of the continuity of state actions in the situations of real threats and tensions, which Europe is facing today.