Innovating in defence policy through spending efficiency: The Life Cycle Costing model

Research has shown that defence spending has repercussions on government policies and economic growth. At an international scale these implications, together with current financial difficulties affecting governments, justify the timeliness and interest of studying defence policies from the standpoint of efficiency. Many authors and international bodies such as NATO consider Life Cycle Costing (LCC) the best model for improving the efficiency of military investments. This paper examines the political repercussions in different countries of introducing the LCC model. The research methodology is based on a questionnaire that was replied to by the defence departments of 28 countries, classified as developing or developed.