Shoigu proposes to withdraw defense companies from the Defense Ministry: the merits of the idea and its pitfalls
At a meeting recently held by President Vladimir Putin with the head of the military department, Sergei Shoigu, and the chief of the General Staff, Valery Gerasimov, a rather broad range of issues was discussed: the course of the Russian Navy’s exercises in the Mediterranean and long-range flights aviation to the organizational component of the Ministry of Defense itself. In this material we will analyze in detail those proposals that Sergey Shoigu voiced in terms of changing the subordination of military-industrial complex facilities that are today under the wing of the country's Ministry of Defense. This change should lead to an increase in the efficiency of the use of funds allocated for the modernization of the army. Shoigu said that it is advisable to transfer the production and repair enterprises of the military-industrial complex to a full-cycle contract basis while simultaneously withdrawing them from the dependence on the Ministry of Defense. This decision is dictated by the fact that the main military department of the country is exempt from the unusual functions for the control of the industrial complex.
Such a proposal by Sergei Shoigu caused a mixed reaction in the press. On the one hand, it may seem that the minister decides to send the entire industrial sector to free floating, which has already literally grown into the Ministry of Defense in order to get rid of the cargo, which has recently become pretty much the military department. But is this the cargo that is worth getting rid of and, in fact, transferring to private rails?
There is, however, another opinion on this. It is the withdrawal of the production cluster from the military-industrial complex that will make it possible to resolve the problem of the State Defense Order, which has become practically insoluble in recent years. After all, it is no secret to anyone that the former leadership of the Ministry of Defense could not agree on the state defense order in any way, including due to the fact that the enterprises with which contracts had to be concluded were directly dependent on the ministry and its leaders. In the end, it all came down to the fact that enterprises were simply dictated by the conditions on which they had to work. If enterprises of the military-industrial complex sphere declared that they were not satisfied with the conditions of the Ministry of Defense, they were quickly put in place, declaring: they say, you don’t want it as you wish; buy abroad. And they bought ... they signed contracts ...
There appeared, as they say now, a corrupt environment that tied the management of industrial enterprises hand and foot. If this manual did not go "on a compromise" with the Defense Ministry of the Russian Federation, then the people in the enterprise remained without work. Here is a specific pressure on the production process ...
Now Sergei Shoigu has decided to cut this Gordian knot. He proposes to make the military-industrial complex enterprises gain independence from the ministry and work on the production and repair of military equipment and armaments under competitive conditions. In fact, the minister decided to insure himself and the entire department, let's say, against new variations of “defense services” (namely, with a small letter), which could pump money from the budget of the Ministry of Defense of the Russian Federation, but swing in a completely different direction.
However, there are also doubtful sides in the withdrawal of the military production sphere from the Ministry of Defense. To begin with, we will have to admit that the main military department decided on such a move as large-scale privatization of industrial facilities. After all, if enterprises are withdrawn from the MoD, then either they will be introduced into another ministry (and this is already awl — you will have your own “defense services” in other departments) to remain state-owned, or be implemented in the direction of private shareholders to get rid of government controls, and even pressure. But the word “privatization” in the Russians over the past couple of decades has acquired an almost abusive shade ...
Many understand that the repetition of corruption scandals like the scandals with “Oboronservis” (now with a capital letter) would not be desirable, as it would not be desirable for braking when signing contracts on the State Defense Order, but at the same time they understand that in our country It is unlikely that it will be painless to transfer the defense complex enterprises to a private trader. Moreover, many defense enterprises work in strict secrecy, and therefore it is extremely difficult to launch them for open privatization without preparing a serious documentary legal framework. But in our country, it often happens: if the minister said, and the president nodded his head at that, then we should take it as a call for action to quickly implement this plan. But is it possible in this situation, sorry, to smack a fever? - rhetorical question ...
Of course, the transfer of enterprises to the level of greater production freedom, to the regime of fair competition, to the formation of their own pricing policy can lead to positive results. But are the defense industry enterprises themselves ready for this? Does this not lead to the fact that the real production competition will affect only the production of shovels and colanders, but with respect to military equipment, everything will remain as before, and in addition also with more openness for rogues with crazy money in their pockets ... Frankly would not I wanted the defense industry to plunge into such chaos.
However, chaos can be completely avoided if the withdrawal of the defense-industrial cluster beyond the framework of the Ministry of Defense is well thought out. To begin with, we will have to create a powerful legal framework for the activities of such enterprises. After all, while they are working according to those documents, according to which the Ministry of Defense itself works. In order to resolve the issue of the corrupt side and at the same time not to fall into privatization extremes, it would be worth considering, for example, the option of proportional incorporation or the option of distributing military-industrial enterprises according to their subordination principle.
In this situation (no matter how we wish to go our own way), we will have to pay attention to foreign experience in the production of military equipment. If you take Germany, which along with Australia, experts from the international organization Transparency International is called a state, quote: “with a very low level of corruption in the field of defense and defense”, then there is experience of the following plan. Leading enterprises specializing in the production of weapons and military equipment operate on the basis of private capital. There is also a practice in Germany to create production clusters that combine several military and civilian industries. Such a diversification of production solves problems with the conclusion of defense contracts with the state and reduces corruption risks to a minimum.
According to official statistics, the state’s share in the German defense industry sector does not exceed 5%. This includes, mainly, repair shops of the Air Force, the Army and the naval arsenal. Official Private Martial Suppliers weapons and equipment for the needs of the Bundeswehr, there are about 2000. This is not only industrial giants, but also fairly modest production, preparing individual parts or components.
As a result, this whole German production system works like a clock and cuts off the very possibility of corrupt officials or private individuals who do not have enough access to the money allocated by the military ministry. After all, if at one enterprise of this built system they start to overestimate unnecessarily or, on the contrary, underestimate prices, this will cause questions from competitors and colleague enterprises, which will immediately lead to verification, including by independent experts. This is a kind of self-regulating system that “repairs” itself, controls itself, does not allow itself to relax.
Agree, everything is very beautiful and monumental - in German. But only we do not live in Germany, and the existence of independent experts who will help to immediately identify a corrupt or unscrupulous major investor, we still have only to dream. But with all this, and blame the fact that Russia is not Germany, and Germany is not Russia, is also somehow silly ...
It turns out that the time has come in our country when it is time to build systems capable of high-quality self-control. If the Government is able to qualitatively implement the idea of Sergei Shoigu to give the military-industrial sector a new status while maintaining and expanding human resources, attracting transparent private investment and leveling corruption schemes in the defense industry, then this will be a serious bid to demonstrate its effectiveness. Otherwise, the Russian military-industrial sector can dissolve and leave only memories of itself ...
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