The IDF’s economic policy: streamlining the security challenges

The IDF’s economic policy is based on a multi annual programmes on the one hand, and on the other hand, execution speed when necessary, as a result of having essential to continuous preparations for war.

תאריך: 13/05/2012, 14:22    
מחבר: הדס דובדבני, אתר צה”ל

The economic policy of the IDF, which arose in the public agenda, to the State budget efforts on agendas of policymakers. Among the various challenges to budget about construction on the western border, reinforcing the iron dome system, improving early warning systems, keeping the reserve personnel service, inventory replenishment, maintaining a חמ”לים, training forces, assaulting hostile sites in the Gaza Strip and many other topics.

Maintaining and preserving effectiveness means, in time of war, losses are low.
Without investment in defense, while fighting the army is less efficient and skilled, will longer entails heavy casualties and increase the economy mode, which harmed sought.
“Great warfare billions,” says financial advisor to former Brigadier General in the army reserve, Hearn, prosenfr national product loss “following the war costs more”.

However, the security system in Israel is not a black hole. The predefined security
And planned changes in basic disciplines and sometimes 20 years on complex issues
More The Israeli economy is financial advisor Chief, who also serves as head of the Ministry of defense budgets. To manage the defense budget and plan, together with the corresponding factors for the near future and the far.

Therefore, in recent years there is a permanent decline in the defense budget analyst from the State budget. He currently serves as State budget 13.8%, while in 2000 the figure was 16% in 1986, nearly a quarter of its budget to Defense (24%).

The IDF’s economic policy: streamlining the security challenges

The economic policy of the IDF

The IDF’s economic policy is based on a multi annual programmes on the one hand, and on the other hand, execution speed when needed. “Compared to other organizations in Israel, the IDF is at any given moment in the fighting or in preparation. When a war erupts, the IDF must be ready and available budget must have enough, “says Brig. Gen. (Ret.) prosenfr.

“If the private sector was forced to double the time on how long beyond the routine, when she can’t miss or it will not be enough, she was recruited employees, making emergency reserves and worried enough raw materials. It works. Because the ultra-Orthodox media differ not hacking wars that require resources, can’t compare to business sector, Brig. Gen. (Ret.) prosenfr.

At the same time, the budget is based on dollars, dollars and dollars.
American aid money can be used for certain purposes only. A significant portion
He aid budget. When reducing American aid budget screen, only 4.4% of the sources are used. The Defense expenditure of GDP (תמ”ג) is in drastic decline in terms of years, decades and years.

At the same time, the past decade has increased the total State budget. Most of the Government’s annual budget has grown more than 40 percent (-30.8 percent, the Ministry of education-33.9%, homeland 78.5% Ministry of health-25.1%) defense budget at the time only in 34%.

The IDF’s economic policy: streamlining the security challenges


During the intifada (2002-2004) increased the defense budget proportionally for obvious reasons.

In addition, Brig. Gen. (Ret.) prosenfr indicates that an effective security system against armies of other countries. According to the 2007 data, the uk budget amounted to 37.1 billion dollars, Germany with 22.9 billion, France $ 33.3 billion
And Israel 7.6 billion. In addition, with regard to these countries, the army has a significant number of tanks and a relatively high number of aircraft (according to number of SIPRI’s annual data).

IDF efficiency

In recent years the IDF started many projects aimed at significant savings in expenditure and increased efficiency. Company specialized in consultancy for efficiency, “Mackenzie”, was hired by the IDF and built efficiency program 2008-2010. Target savings of 10,000 that had been million. Target achieved was 3,508 million shekels. Between 2003 to 2009 increased spending on manpower and 0.47% in on while government offices – where private tuition to members of the IDF determined – grew 31% expenditure.
This is because the processes efficiency.

The IDF’s economic policy: streamlining the security challenges

A number of IDF officers who serve in a permanent rank (major and above) decreased by 18% from 66% of the permanent members in 1998 to 48% in 2009. A similar process was carried out in the field
IDF personnel and civil service personnel-a decrease of 40%. Refer to the fact that
In 2002 was “Operation Defensive Shield” in the 2006 Lebanon war occurred.

In efficiency occurs in many ways. Since 2008 the IDF is in process to reduce fuel consumption, whether by implementing array simulators (simulate training) in the air force as a replacement for flight hours in the air, or by installing measurement systems for automotive fuel consumption.  Also lighting equipments (totaling 1.6 million annually) by beyond ploaornity bulbs instead of mercury lamps included in processes, and general electrical equipments in various ways and advanced processes.

“Example emissions is air force pilots. After the qualification and training of pilots, it is necessary that they be used in roles too. In order to conserve reserves and maintain competence, are often called pilot jobs while job at Headquarters, Brig. Gen. (Ret.) fish prosenfr.

The IDF’s economic policy: streamlining the security challenges

This proved limescale prevention will save the army million a year. Tartar leads to losses in utilizing heat air conditioning systems and therefore no full utilization and power consumption
Higher than necessary. Otherwise, check the track צה”לי for equipment to prevent loss of property and theft. Across different systems – health for example, recruitment
Led to a significant reduction in military expenditures.

Large projects among process of streamlining were beyond the officers ‘ leasing, outsourcing of military food, clearing the bases and unmanned to transition. The outsourcing of the IDF and the kitchens where a rule, established by Mackenzie is no way to streamline the sector.

The contribution to the economy

15% of export in the State of Israel is exporting. About 7.5 billion
Dollars. The income of the country’s security system and the major interface “Contributing to society, education, immigration, heritage, investing in technology, personnel and business sector with experience – in economic terms intellectual property that produces Security Office donates heavily to the Israeli economy,” says Brig. Gen. (Ret.) prosenfr.

The most prominent example of this is the Negev – establishing the town. Each year, the economic benefits that will ended on 6 billion. Increase in real value rather than put more tens of billions a year.

Haredim and army recruitment leads to strengthening the economy, thanks to the integration of Haredim the workforce on the job. They acquire military professionals and salary and a pension. The army,
For him, the technological personnel data so far has learning abilities and understanding remained high. This implementation of the people’s Army model.

Translated from Hebrew