Introduction to Program-based Defense Resource Management

The Partnership Action Plan on Defense Institution Building (PAP-DIB) supports Partner countries in developing and implementing transparent procedures for the effective allocation of defense resources. These are procedures that can allow decision-makers to relate decisions on security policy, defense requirements, and resource allocation. A considerable number of NATO member countries use program-based defense resource management--some in combination with capability-based planning--as one of the main tools supporting the effective implementation of their security and defense policy. Other member countries do not use the explicit term "program-based" but nevertheless implement the same principles of transparency and accountability in their approach to defense resource management.
This essay examines the principles and practices of program-based defense resource management, which, as will be shown below, equates to program-based force development. It starts with outlining the reasons behind the use of programming, and then looks at several key topics structured around two main themes: what is a good program decision, and how does it depend on the design of a program's structure? and what are the key activities in the defense-resource management process, and what are the connections between them? It then briefly examines some of the major implementation challenges usually encountered by new NATO members and Partner countries, and concludes with an outline of the links between program-based defense resource management and defense institution building.