International Dynamics of U.S. National Defense Acquisition and Budgetary Policy

Abstract

Although domestic laws, rules, and norms shape defense acquisition in the United States (U.S.), budgeting and financial management policy and practice decisions made in the executive and legislative branches of the U.S. government regarding how to spend defense financial resources have a powerful impact on the international security environment and the strategic choices of other nations. Understanding the interaction effects between U.S. defense weapons and weapons system planning, acquisition and execution and related budgeting/fiscal policy, and the reactions of other nations to it all is vital if U.S. defense management processes are to succeed in achieving the objective of preparing U.S. armed forces to fulfill the U.S. government's national, international, and foreign policy goals. This report examines U.S. defense weapons acquisition and budgeting from an international perspective. Within this context, answers are sought to the following questions. First, what are the effects of U.S. defense acquisition, defense assets, and budgets on the international development and diffusion of new military technologies? Second, what factors drive U.S. arms export decisions? Third, how do U.S. policies shape the international market for armaments? Finally, do U.S. decisions about how much to spend on national defense drive those of other nations through arms races and burden-sharing? This report addresses a number of policy and process issues related to these questions and provides a summary and conclusions of findings.