Concept Paper
In this context Pakistan defense industry represents a case in point and opportunity for state actors to further respond to defense collaboration and expertise to conduct effective and mutually beneficial trade.
The South Asian Strategic Stability Institute (SASSI) University is an autonomous non-profit research organization based on public-private partnership and is a degree awarding institute dedicated to promoting peace and stability in South Asia. It is devoted to providing a comprehensive, insightful understanding and an objective analysis of strategic stability in South Asia. SASSI University aims to make a leading contribution to regional and international academic and policy-oriented research discourses about the South Asian security.
South Asian Strategic Stability Institute (SASSI) University has the proud privilege to host a Sideline Conference (Industry Summit), IDEAS 2014 as co-partners with Defense Export Promotion Organization (DEPO). Sideline conference has been planned by SASSI as an event within the "International Defense Exhibition and Seminar IDEAS 2014" organized by Defense Export Promotion Organization (DEPO) on 2nd, 3rd, and 4th of December, 2014 in Karachi, Pakistan. The theme of the sideline conference is entitled as "Security Outlook 2025: National Security and Defense Transformation"
The rapid development trends of globalization, including increased trade relations between countries and regions, have essentially reconfigured the defense industrial sector with international collaborative linkages edging out erstwhile stand alone national defense industries. The emergence of new consumer market and industrial production capabilities, and facilities, has ushered in a new era necessitating the creation of sustainable joint collaborative projects and meeting the ever dynamic need of the Defense section with changing land scope of National security. The world view of defense sector has matured into an inclusive global outlook and is no longer the traditional exclusive realm of the public sector in most economies. This change has also created a new transnational culture of public private partnerships and production development to meet their challenges in real time with effectiveness.
The current situation has harbored an immense potential for countries having the minimum requisite level of technological expertise and trained man power to absorb from the truly developed defense industry of other countries as well as the Home Industry, to meeting their challenges and development of new opportunities. Thus, creating new mutually beneficial centers of technological excellence and profitable economies of scale to meet the rapidly growing global defense demands is also a valuable aspect of the scenario that needs to be looked at. At the bigger picture, these developments have opened new outlooks for joint projects, foreign direct investments (FDI) and new sources of sharing technological advances and investments. This transformed “defense world” offers both opportunities and a degree of complexities which if understood correctly can be employed as a potent factor in removing many uncertain variables and unpredictable outcomes.
The defense industrial collaboration is not an altogether a new concept but it has been in vogue since the industry's very inception. However, till recently the defense sector was treated more of an exclusive national enterprise catering to national or global needs with no or a little share of FDI or even JV's- but with increasing challenges, it has now endured as a new phase of security. In most cases the nation states were producers, buyers, consumers and the sole arbitrators in all aspects of the business. State owned establishments have defined technical need for the military requirements, negotiated contracts with suppliers, oversaw development and production, and even imposed unique accounting and security restriction and private industries.
According to the current crisis, economic viability would have to be achieved through dual use defense application, joint product development and cross border mergers between major defense contractors and the semi-prime and high level sub system suppliers. Changing trends are already evident in the international supply change. The Asian and Southern economies have emerged as the latest entrants to the defense supply world alongside national and western dominated markets and offer a new destination for international cooperation with expanding technological base, supplemented by available diverse national human resource.
The South has a lot to offer to the global defense industry as new and important defense players emerged on the international scene. To name a few; Pakistan, Turkey, China Malaysia, Indonesia and South Africa are all success stories of technical sufficiency and military modernization and hold a promise of mutual success through shared development. As the joint defense projects are growing manifold, there are also great challenges posed by conflicting political and economic demands of the international security order and global politics. Where even the most basic of security equipment is denied to countries, challenged by adverse security conditions due to political considerations, high market price and the domination of the global defense industry by technologically advanced players.
The global security environment undergoes a shift with a focus on containing conflicts, upgrading the paramilitary and military forces to the demands of the changed military planning. Nonetheless, there is a scope for joint collaboration between high end defense industry and the one on the lower technological step, including prospects of South-South collaboration.
Pakistan has emerged as a technological warehouse in a success story of technical sufficiency and military modernization. Pakistan's defense procurement experience and its defense industrial evolutions which is a success story can be replicated in countries faced with similar or near similar defense requirements with the fraction of cost of individual, technologies are incorporated and joint defense collaboration is enhanced. However the potential role of defense industry as a leading factor of positive change in the socio economic development has not reached its maximum potential.
In this context Pakistan defense industry represents a case in point and opportunity for state actors to further respond to defense collaboration and expertise to conduct effective and mutually beneficial trade. The changing dynamics of security have invariable impact on the defense industry and its transformation; this highlights the need for developing collaboration and finding the essential gap and filling this through public private partnership.
However, it requires a structured approach based on real time input, identification of problems or challenges faced, and measures to effectively strengthen the process leading up to the Sideline Conference (Industry Summit), IDEAS 2014. SASSI University, therefore, stands committed to ensure that the Sideline Conference (Industry Summit), IDEAS 2014, Security Outlook 2025: "National Security and Defense Transformation" will provide a responsible defense industrial growth through timely policy decisions and corrective actions by state parties that will promote joint defense collaboration at both the bilateral and regional level. This would pave the way forward for states to meet their defense requirements of the future.
