Security and Economy – Risk Management and Military Industrial Dimensions

A constantly changing security environment creates both new dangers to, and new opportunities for, economic growth and development.

Key Questions:

  • How can collective security arrangements mitigate the risks to economic growth deriving from new security threats, particularly with respect to cyber-security, piracy and climate change?
  • Do foreign investors and domestic businesses in Serbia feel that their economic interests and assets are sufficiently secure?
  • Are Serbian companies in a position to benefit from potential technology transfers and the growing inter-operability of military technologies?
  • How does defence spending compare against other national priorities in Serbia, and how can defence spending be made more efficient and effective?

The economic considerations underpinning collective security primarily revolve around two specific dimensions – the mitigation of risk and military industry. Risk is a key consideration for businesses, foreign investors and consumers alike; with higher interest or insurance premiums demanded in riskier environments. This explains the interest of Lloyd’s of London, the world’s leading insurance market providing specialist insurance services to businesses in over 200 countries and territories, in finding “fresh approaches to managing risk”, particularly with respect to cyber-security, piracy and climate change. This broadening spectrum of risks demands that NATO increasingly extends beyond its areas of responsibility, often through new partnerships and types of collaboration, in order to provide a comprehensive approach to mitigating risk; one of the key prerequisites for sustained economic growth in an increasingly globalized world.

The global financial crisis has placed increased pressure on defence spending and military procurement, making standardization and inter-operability more important then ever. NATO has brought about some standardization of allied military terminology, procedures, and technology, primarily through NATO Standardization Agreements (STANAGs) for procedures and systems and equipment components. Interoperability – “the ability of different military organisations to conduct joint operations” – has produced a number of synergies among NATO members and is an important aspect of NATO’s various partnerships, including the Partnership for Peace (PfP) programme. Indeed, the NATO-Russia Council (NRC) has a programme to develop interoperability between NATO and Russian forces. As the scope of NATO’s operations expands, so the benefits to be derived from inter-operability multiply.

Further Reading:

If you are interested in participating in this project, please contact TransConflict Serbia at the following e-mail address –

The ‘Facilitating Serbia’s Contribution to NATO’s New Strategic Concept’ project has been made possible thanks to the generous support of the Ministry of Foreign Affairs of the Czech Republic.

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