Grand Strategy and Military Power

This chapter examines military power through the lens of grand strategy. It begins by identifying the First World War as the main origin of the distinctive idea of grand strategy resulting in its core meaning and ambivalence. It then shows how grand strategy acts as a force multiplier, before exploring the ways in which military successes and failures affect grand-strategic effectiveness. Finally, it discusses the ways in which military power as a component of peacetime grand strategy can produce its psychological effects on the will of the adversary through the display and threat of force or competitive defense procurement rather than actual fighting. The chapter concludes by arguing that the specific characteristics of military power help identify some of the limits of grand strategy, notably its underestimation of contingency arising from the dynamic interaction with a thinking adversary.

Corruption risks in defense procurement

The article is devoted to the analysis of current regulations in the field of defense procurement. The importance of the problem of corruption for the people of Ukraine is highlighted. The threat to national security caused by high levels of corruption is mentioned. A number of studies on the spread of corruption in the defense sector are processed, in particular by such public organizations as the Independent Anti-Corruption Committee on Defense, Transparency International UK, Transparency International Ukraine and others. Attention is drawn to the presence of a large number of corruption risks in the defense sector. The Law of Ukraine “On Defense Procurement”, adopted by the Verkhovna Rada of Ukraine on July 17, 2020, was analyzed. Attention is paid to the fact that the Law of Ukraine “On Defense Procurement” provides for the purchase of goods, works and services for defense purposes, which is a state secret, through closed procurement, and it also regulates the absence of competitive procedures for procurement by import by making purchases directly through electronic trading platforms. Some aspects of the Law of Ukraine “On Public Procurement” used in defense procurement are considered. Based on the results of the analysis, it was concluded that the Law of Ukraine “On Defense Procurement” helps to overcome most of the corruption risks identified in the study of the Independent Anti-Corruption Committee on Defense, however, it also needs significant improvement, as some provisions contain gaps that lead to new corruption risks, if they are not corrected.

STRENGTHENING THE FINANCIAL STABILITY OF ENTERPRISES IN THE MILITARY-INDUSTRIAL COMPLEX: DEFENSE PROCUREMENT AND ACQUISITION OR CONVERSION OF PRODUCTION?

В статье рассмотрен гособоронзаказ как драйвер развития предприятий оборонно-промышленного комплекса, требования обеспечения финансовой устойчивости предприятий при исполнении ими гособоронзаказа. Диверсификация оборонно-промышленного комплекса РФ и конверсия производства предприятий, входящих в данный комплекс, ориентированные на производство продукции двойного назначения, а также повышение объемов продаж в среднесрочной перспективе рассматриваются как факторы повышения их финансовой устойчивости. The article considers the defense procurement and acquisition as a driver for the development of enterprises of the military-industrial complex; the requirements for ensuring the financial stability of enterprises when they perform a state contract under the state defense order. The diversification of the Russian military-industrial complex and the conversion of production of enterprises included in this complex, focused on the production of dual-use products, increasing sales in the medium term, are considered as factors for increasing the financial stability of enterprises in the military-industrial complex.

LIMITED TURNOVER OF ECONOMIC INTELLECTUAL PROPERTY RIGHTS IN THE FIELD OF NATIONAL SUCURITY AND DEFENSE

During the execution of the state defense order (hereinafter — SDO) may be created objects of intellectual property rights (hereinafter — OIPR), namely: inventions, utility models, industrial designs and topographies of semiconductor products, as well as objects of copyright in the form of computer programs, databases, engineering, technological and software documentation, etc.The Law of Ukraine «On the State Defense Order», adopted in 1999, in no way regulates the legal relationship regarding the creation of OIPR, their use and disposal of economic intellectual property rights to such objects during the SDO. Economic rights to IPR are types of objects of civil rights. Based on the provisions of Art. 178 of the Civil Code of Ukraine objects of civil law are divided into 3 groups depending on degree of their turnover:1) objects that can be freely transferred to another person;2) objects with limited turnover (may belong only to certain participants in the turnover or whose stay in the civil turnover is allowed by special permission);3) objects withdrawn from civil circulation (which are not allowed in civil circulation).Economic rights to certain OIPR are restricted in civil circulation (for example, to a trade name) or withdrawn from civil circulation (for example, to a geographical indication).In addition, the exercise of intellectual property rights may be restricted in certain areas in order to protect the public interest. Such public interest consists, among other things, of the protection of the state interests during the introduction into civil circulation of property rights to OIPR, created during the execution of SDO.Taking into account the provisions of Article 17 of the Law of Ukraine «On Science Parks», we propose to establish an imperative provision in this Law and the draft Law of Ukraine «On Defense Procurement» (Reg. № 2398-d of November 27, 2019). Such changes should stipulate that economic rights to OIPR created during defense procurement are limited in civil turnover. The exercise of rights to such OIPR is possibleonly with the consent of the state customer in the field of defense.Restriction of civil turnover of economic intellectual property rights to these objects should be aimed not only at eliminating the possibility of transferring (assigning) economic rights to such objects, but should also implement other options for their introduction into civil circulation, including the right to use OIPR or to transfer economic rights to the specified OIPR into pledge. In order to improve the legal regulationof these legal relations, it is necessary to amend the legislation of Ukraine in the field of pledge. Peculiarities of securities of intellectual property rights should be enshrined in a separate section of the Law of Ukraine «On Pledge». Such changes should include, inter alia, the obligation to negotiate agreements on pledge of economic rights to OIPR, created during the implementation of the SDO with the public customer. Relevant provisions should be enshrined in the draft Law of Ukraine «On Defense Procurement». The improvement of the legislation studied in the article will contribute to a systematic solving of the issue of establishing the conditions for the execution of economicrights to OIPR, created as a result of SDO, namely the need for such approval of the state customer, that will ensure public interests in the field of national security and defense of Ukraine by the provision of control over the civil turnover of such objects.