570 Revista del Instituto Español de Estudios Estratégicos Núm. 2 / 2013 The outcome of this vision of the “economics of security and defence” requires that the modernisation of the armed forces be considered as the aspect that improves the efficacy of the use of the resources allocated to defence services. The Strategic Defence Review means that this ministry has augmented its command and control capacity, thereby reaching a high level of technology. In parallel, it has enhanced armed forces intelligence. All of this serves to guarantee national and international security and defence, allowing Spain to participate in joint military operations. 3. THE BASIS OF THE ECONOMICS OF SECURITY AND DEFENCE. The art of management, in reference to both the public sector and the defence sector, has two more explicit objectives: (1)upholding citizens’ fundamental rights and (2) facilitating the provision of basic services to a welfare society12. On the other hand, for management within an institution such as the armed forces, the Ministry of Defence follows the economic guidelines below, drawing a distinction between the “modernisation of logistics” and the “rationalisation of defence”. The following section shall describe the different domains of this organisational model associated with the economics of security and defence. Firstly. The modernisation of logistics during the life cycle of system acquisitions (arms systems, infrastructure, and information and telecommunication systems) calls for the optimisation of capabilities within their joint action, encompassing the following general principles: 1) addressing the logistical process in its respective phases (planning, programming, budgeting and implementation); 2) organising defence around joint action, coordinated by the Ministry, without distinguishing between its three armed forces; 3) exploiting the huge potential that exists for the negotiation of contracts with different companies, with a view to achieving the status of preferential client; and 4) undertaking system maintenance, using an overall approach by means of the organisation of logistics activity and the examination of the different aspects of armament programmes –operational, technological, industrial, economic or others– 12 GONZÁLEZ, M.; HUERTA, J.; LÁZARO, J.F., AND MUÑOZ, A. Eficiencia en la gestión de recursos, proyectos y contratos de la Administración Pública. Especial referencia al ámbito de la Defensa. Instituto Universitario General Gutiérrez Mellado-UNED, 2008, pp. 111.
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