MILITARY THOUGHT No. 5/1993, pp. 77-80

Major A.V. MALYGIN

OBJECT war economy It is generally accepted to be considered a part of the national economy, which is designed to economically support the preparation and conduct of war and strengthen the country’s defense capability. Its subject is theory economic support military needs of the state. This raises the question: what is meant by military needs? Military economists believe that they are divided into non-productive and production. The first includes weapons and military equipment, ammunition, food, as well as the need for housing, transport, communications and other services and means to meet the material needs of military personnel and persons working for defense. The second includes the means and objects of labor necessary for the manufacture of weapons and military equipment, equipment and other military products.

On the one hand, the military department and the armed forces as representatives of state defense interests enter into economic relations with each other, and on the other hand, producers of not only specific military goods, but also others necessary for the functioning of the army and navy. Currently, they are represented mainly by state-owned enterprises.

It is also advisable to consider the following interrelated aspects of military-economic relations. The first is the relationship between the armed forces and the population of the country, the second is between the armed forces and foreign consumers. Before moving on to their immediate presentation, let’s make a short historical excursion. Even the English economist A. Smith, reflecting on the history of the division of social labor, noted that the most important duty of the sovereign - protecting society from violence and attacks from other independent societies - can only be fulfilled through military force. He believed that “only a prudent state can make the soldier’s craft different from all others” for two reasons. Firstly, this makes it possible for “non-soldiers” to engage in useful productive activities without being distracted by military exercises and wars, and secondly, the division of labor is necessary for “the development of military art, like any other...”. Thus, more than two hundred years ago, the activities of the military were considered in connection and interdependence with social production goods and services. A. Smith noted that “the entire army and navy are unproductive workers.”

Therefore, apparently, military-economic relations should be considered not only as relations regarding the production, distribution and consumption of military goods, but also as relations directly related to the production by the armed forces of intangible goods that are significant for society.

Modern domestic and Western economists attribute national defense to the sphere of public (state) services, as can be seen from the figure. At the same time, domestic experts have studied subsystems 3 and 4 to a lesser extent. Participants in relations in subsystem 3 are, on the one hand, the armed forces as an element government structure, intended to protect society, and on the other hand, society itself. In subsystem 4, on the one hand, the armed forces act, on the other - foreign countries or a coalition of countries. IN in this case we are talking about providing specific military services to other states or communities. An example is the participation of Russian military units in various contingents of peacekeeping forces both in the CIS countries and under the UN mandate in Yugoslavia. In addition, on the basis of interstate agreements, the Russian army performs defense functions in Turkmenistan and Tajikistan, which do not have their own armed forces.

The proposed approach makes it possible to develop military-economic relations in market conditions. But the main function of the army remains to ensure the security and stability of society, so the state must create its own defensive system. At the same time, it is not necessary to have your own armed forces or organize your own production of weapons and equipment. These needs can be met with the help of foreign aircraft hired by the government in exchange for some benefits. In addition to armed protection, the army can also provide social stability. This function is quite real in the current political and economic situation in Russia and other countries former USSR. After all, it is the army that bears the brunt of containing and resolving numerous conflicts.

People engaged in military labor provide society with the opportunity to improve its well-being, which means that the army is in economically not only consumes the products of other people's labor, but also produces a specific product itself - military services. Soviet economists S. Strumilin and D. Rosenberg, for example, included the armed forces in the service sector when calculating national income. Professor G. Fedorov holds a similar opinion, arguing that “military personnel are producers of a special, specific service - the protection of society.” Western economists - F. Kotler, K. McConnell, S. Brew and others - are also of the opinion that “the public sector with its military services also belongs to the service sector.” Therefore, the army can be considered government organization producing public services. On this basis, it is already possible today to make wider use of rich practical experience accumulated in the world to improve the service sector for more effective adaptation of the Russian Armed Forces to market conditions.

In the market economic system, characterized by freedom of entrepreneurship and choice, the presence of private property, personal interest as the main motive of behavior, competition, and reliance on the price system, nevertheless the importance of the state remains. The government in countries with a market economic system carries out a number of economic functions. The main ones include: protection from competition; providing a legal framework and social atmosphere conducive to the effective functioning of the market system; income redistribution; adjusting resource allocation to change structure national product; economic stabilization. At the same time, the creation, maintenance and use of armed forces is primarily carried out to perform the second function. It should be noted that goods and services can be both individual and public consumption. And if in the first case a person can make a choice whether to buy or not, then in the second this is impossible, since public goods cannot be divided into separate units and sold to an individual consumer, just as it is practically impossible to exclude an individual from using public goods. For example, highways benefited not only by those who directly paid for their construction and maintenance.

The specificity of the economy of “pure capitalism” is such that public goods market system I do not intend to produce, since it is simply not profitable for private enterprises for anyone to use the goods and services they produce for free. In the production of products for individual consumption, the benefit is based on their purchase, and in the production of public goods it accrues to the whole society. Types and volumes public services are determined political methods. Public goods acquired through the mediation of the government on the basis of joint decisions. All this fully applies to national defense - a type of government service. Their direct producer is the armed forces. In exchange for the goods they produce, they receive material and cash necessary to cover production costs. These funds are generated mainly from tax revenues. In other words, as a public service, defense is paid for by taxpayers, and all members of society enjoy this benefit. Russia's military budget in 1991 amounted to 21.6%. This means that for every ruble paid in taxes, about 21 kopecks. was spent on defense needs. IN rule of law a citizen has the right to know how effectively his money is spent and how reliably he is protected from external aggression or other destabilizing, especially military, factors.

The economic costs of producing military services include: costs of purchasing weapons and military equipment; allocations for research and development work; expenses for the maintenance of the army and navy, including the costs of different kinds allowances for personnel, logistical support for combat training, provision of everyday life and medical care military and civilian personnel of the armed forces; military construction costs; expenses for pensions and social Security military personnel. In addition, by decision of the Russian Government, conversion costs will be taken into account as a separate item.

However, such a cost system does not fully correspond to defense costs. First of all, because when entering the market, an enterprise must realistically assess the potential consumers of its products, determine the volume of demand, and what the product or service produced should be. This is necessary to make a profit or at least justify costs and maximize customer satisfaction. The manufacturer also determines distribution channels for its products, measures to stimulate sales, and takes care of the formation of public attitudes towards the enterprise and goods (services) that are supplied to the market. This type activity is called marketing.

In new economic conditions The army, as a subject of military-economic relations, will have to adopt advanced marketing achievements for the best adaptation. Naturally, such activities will require considerable expenses, but they are necessary and will ultimately be beneficial to both the armed forces and society. Unfortunately, today in the military environment they tend to have a negative attitude towards marketing in relation to the armed forces. However, one must distinguish between what is prohibited in the army commercial activities from military-economic relations.

It is easiest to imagine the application of the marketing concept in systems of military-economic relations associated with the production and exchange of material products - military goods. These are, first of all, systems whose subjects are enterprises of the military-industrial complex. Already today, in conditions of competition in the global arms market, domestic manufacturers have to look for their buyer. In this case, it is necessary to carry out the entire complex of marketing and promotion of the product in a specific market and for a specific consumer. It is much more difficult to find opportunities for similar activities in relation to military services. But even in this case, marketing should be used.

Analyzing the subsystems of the complex of military-economic relations (see table), it can be argued that the armed forces act as a producer, and therefore adhere to the position of an active participant in market relations. The population, in essence, buys military services for a specific army - national or foreign. A society can choose one form or another of its protection depending on various factors: from the creation of militias to the involvement of international peacekeeping forces.

Today the army is faced with the acute question of its recruitment. According to the Ministry of Defense Russian Federation on November 25, 1992, the Russian Armed Forces had received only 17% of conscripts. Therefore, when switching to a contract basis, the Armed Forces will have to prove the advantages of military service over other types of activity.

In conclusion, we can conclude that from the standpoint market economy it is necessary to consider the entire complex of military-economic relations, and not just its individual elements. A special place is occupied by that part of the complex in which the armed forces act as a producer of a special kind of public services.

Smith A. An Inquiry into the Nature and Causes of the Wealth of Nations. - T.2. - M.: State socio-economic publication, 1935. - P.239.

Right there. -P.345.

Smith A. Research on the nature and causes of the wealth of nations.-T.1.-M.: State socio-economic publication, 1931. - P.339.

Military thought. - 1992. - No. 10. - P.65.

On September 20, the Military Financial and Economic University would have turned 70 years old. Unfortunately, he is no longer there. He fell under the merciless reforms that covered the Armed Forces in the 2000s. But the experience gained in training military financiers was unique. It has not lost its significance in our days, just as the book full of bright pages of the birth and life of this educational institution.

After the Great Patriotic War, the task of training financial and economic personnel for the Armed Forces, especially leadership personnel, became acute. At the suggestion of the head of the Financial Directorate of the Military Department, General Yakov Khotenko, with the support of the leadership of the Ministry of Finance, on September 20, 1947, Deputy Minister of the USSR Armed Forces, Marshal of the Soviet Union Alexander Vasilevsky and Minister higher education Sergei Kaftanov signed a joint order on the organization of the Military Faculty at the Moscow Financial Institute.

Pioneers

In July 1948, experienced financier Major General Sergei Spiridonov was appointed head of the faculty. A participant in the Civil and Great Patriotic Wars, he became the first of a galaxy of front-line leaders who invested military experience in organizing the educational process.

The staff of the faculty included management, four courses of students, three departments and service units. In 1949, advanced training courses for officers were added, and in 1950, a special department for training military personnel of foreign armies and adjunct courses were added. By 1960, a coherent system of training military financiers had developed.

In the period from 1955 to 1963, scientists from the departments published a number of monographs and published six collections of scientific notes. These works reflected issues of theory and practice of finance of the USSR Armed Forces, cash security troops. Significant contributions to the development of the science of finance of the Armed Forces were made by B. Rivkin, N. Verba, B. Kin, N. Gritsynin, I. Lakhmetkin, V. Podyryaka, B. Savchenko, V. Shcherbak, Yu. Chernov, V. Tivanov, G. Korolev and others.

In January 1963, two research laboratories were formed at the Department of Finance of the Armed Forces - “Automation” and “Problems” financial service" Their activities contributed to strengthening the regime of economy in use public funds in the army and navy, improving the quality of financial control, combating losses material assets and cash.

A characteristic feature of the development of the faculty in 1963–1972 was the increase in the level of military-economic training of students. New disciplines have been introduced, courses have been developed on the study of economics, organization and planning of industrial production and capital construction in the USSR Ministry of Defense, analysis economic activity enterprises and construction organizations.

In 1967, the faculty began training senior officers in the system of field institutions of the State Bank of the USSR to provide financing for new branches of the Armed Forces, primarily the Strategic Missile Forces.

The teaching staff took an active part in preparing for the introduction of an annual financial planning system into the troops from January 1, 1970, as well as the use of impersonal financing, which allowed commanders to direct funds to solve priority tasks. This step, supported by the Ministry of Finance, was revolutionary for that time. It is noteworthy that in the budgetary sphere, countries switched to such financing only in the 21st century.

The logical conclusion of the restructuring of the educational process with an emphasis on economics was the creation in 1971 of an independent department of military-economic disciplines, the first head of which was Colonel A. Grishin.

The confrontation and rivalry between the NATO bloc and the Warsaw Pact was accompanied by the development, production and adoption of increasingly complex complexes and systems. This led to strengthening ties between the Armed Forces economy and the military-industrial complex and an increase in military spending. To optimize them, a decision was made to improve the qualifications of the leadership of military missions (VP): the Department of Economics and Organization of Production of Defense Industries was created, and Colonel-Engineer V. Zhikharev was appointed head. The country's leading specialists, scientists, practical engineers, and financiers and economists were selected for the first composition. Since October 1974, the department began training military officers, and later also ordering departments, research institutes, industrial enterprises and organizations of the Ministry of Defense.

In 1976, the faculty was already training specialists with higher military education. Graduates had the opportunity to study economic analysis theaters of military operations, choosing rational options for meeting the needs of troops. The main efforts were aimed at the practical side of training and achieving a logical connection between the educational processes of the Yaroslavl Higher Military Financial School named after General A.V. Khrulev and the military faculty, creating a coherent system for training financial service specialists with higher military education.

Military special training began to be provided by two groups of disciplines: financial and economic, the number of which has increased significantly. In 1979, the first graduation of officers with higher military education took place, who were almost entirely sent to the central bodies of the Armed Forces. And since 1981, graduates of the correspondence education department began to receive higher military education.
The arrival of such specialists into the troops was accompanied by an expansion of the rights of credit managers of all levels to use budget funds. Spending standards began to be introduced in the army and navy, and leftovers were allowed to be used the following year. This led to significant savings in the Ministry of Defense budget.

Financial guard

When creating the Armed Forces new Russia and a reduction in their numbers, proposals arose to train military financiers at civilian universities, although such attempts were rejected by life itself back in the 20s of the last century. They came, as a rule, from some reformers who, apparently, did not understand that the Armed Forces are a specific state organism intended to ensure the security of the country. And the Military Faculty has always trained personnel to organize the financial support of troops and naval forces not only in the conditions of their actual deployment, but also in their use, and, if necessary, personal participation in hostilities, where the use of civilian specialists is virtually impossible.

In the era of “privatization,” or simply, the plundering of state property, including army property, the Military Finance and Economics Faculty turned out to be a tasty morsel for some representatives of the new Russian elite, to whom the issues of training specialists of this profile were alien, they were interested in personal selfish goals. Employees of the Military Faculty have repeatedly fought off attempts to seize property under the guise of various far-fetched reorganizations.

When reforming the military education system in accordance with the Decree of the President of the Russian Federation of October 13, 1998, the Military Financial and Economic University was created as part of the Military Financial and Economic Faculty and the Yaroslavl Higher Military Financial School as a branch. This decision was intended to create a multi-level educational and scientific complex, to form a unified systematic approach to training personnel in the financial and economic service. This unification marked the beginning of one of the most productive periods of activity. In a short period, serious changes have occurred in the educational process. New technologies have been introduced, quality has improved scientific works, the qualifications and potential of the teaching staff have increased, which has a positive impact on the professional level of graduates.

The Department of Finance and Management remained one of the main ones banking activities in the Sun. Its representatives were even involved in conducting classes at other universities. Lectures on problems were given annually at the Academy of the General Staff defense budget. Textbooks and monographs, dozens of manuals were prepared here, more than 70 dissertations were defended, and various research and operational tasks were carried out.

Back in 1977, from the Department of Finance of the Armed Forces of the Russian Federation, to strengthen the practical orientation of training students, the Department of Management of Financial and Economic Activities and Control (organization of financial services and control) was separated, the first head of which was appointed Colonel Yu. Chernov. It taught disciplines of an applied nature - preparing students to work as managers of the financial service of connections and structural divisions district and army level. Under the leadership of the financial inspectorate of the Central Federal Inspectorate of the Ministry of Defense of the Russian Federation, the first textbook on financial control was prepared here.

The Department of Management of Economics and Accounting and Analytical Activities in the Armed Forces of the Russian Federation (Economics of the Armed Forces) was also unique in its kind, which, being relatively young, under the leadership of the first head, Doctor of Technical Sciences, Professor G. Zhukov, clearly declared itself. The country's first textbook on military-economic analysis was published here, which immediately began to be in high demand both in universities and in research institutions of the Ministry of Defense. The following disciplines appeared for the first time: military-economic analysis, military-financial informatics. Since 2000, by decision of the Minister of Defense, military engineer-economists with higher military education have been trained here. Its graduates from 2002–2006 had a significant influence on the development of industry and the current state of the state defense order management system. To date, the textbook “Prices and Pricing,” published by the department in 1985, is the only one in the country.

University scientists put a lot of work into the development of the scientific foundations of the military economy: R. Farmazyan, A. Pozharov, N. Abrosimov, S. Ermakov, V. Zhikharev, G. Zhukov, S. Vikulov and others.

During these years, the university has become an intellectual center of key competencies in planning and financing of state defense orders, R&D economics, pricing management for defense products, cost accounting and analysis, and intellectual property management. All these important areas were studied at the department.

Today, the problems that have accumulated over the past ten years in the areas of activity listed above can pose a very serious threat during the implementation of the State Defense Order 2017–2019. But there is no one and nowhere to train specialized specialists.

An instructive example: to strengthen research in the field of economics and finance of the Armed Forces, a research center for military-economic justifications operated at the university under the leadership of Colonel A. Batkovsky. It carried out about 50 research works, more than 170 operational tasks, prepared eight monographs and methodological manuals on a wide range of financial and economic problems. We began to regularly publish the scientific journal “Bulletin of the Military Financial and Economic University,” which published articles on the most pressing issues of economics and finance.

In 2002, a museum was built, equipped with advanced technologies for storing and displaying historical information and archival materials. Scheduled classes with students, excursions for families of military personnel, students of civilian universities and schoolchildren were held here, significant dates and Days of Military Glory of Russia were celebrated. The museum and work “Military Financial and Economic Service of Russia” were awarded the State Prize of the Russian Federation named after Marshal of the Soviet Union Zhukov.

The staff of the Military Finance and Economics Faculty has always kept up with the times. He carried out the tasks of the financial service based on the geopolitical situation, trained and educated officers dedicated to the interests of the business. Over the years, about 7,500 military specialists have been trained for the Ministry of Defense, internal troops, the Federal Border Service, and other law enforcement agencies, and more than 10 thousand officers have undergone retraining and advanced training.

An objective assessment of his work was his accreditation. According to the results of an external examination carried out by the Ministry of Education and Science in 2005, the Military Financial and Economic University was among the top 10 percent of Russian universities (including civilian ones) in all main indicators. Graduates successfully completed tasks of providing financial support to Soviet troops temporarily stationed in Germany, Poland, Romania, Hungary, Czechoslovakia, Cuba, and other regions. Many took part in combat and peacekeeping operations in Egypt, Syria, Afghanistan, Chechen Republic, Yugoslavia, Abkhazia, Transnistria. Often, while serving in hot spots, they had to engage in armed clashes, protecting finances and other valuables from being captured by militants. Carry out, along with professional duties, the tasks of escorting and protecting military columns, take personal participation in hostilities together with other military personnel, while showing courage and heroism. For leadership financial support During the military operations in Dagestan and Chechnya, the Order of Military Merit was awarded to Lieutenant General V. Zastavnyuk, Colonels E. Polunichev and Yu. Efimov. Colonel Efimov was also awarded the Order of Courage. The following combatants were awarded for military work: A. Ulyanchuk, I. Semenikhin, V. Kirillov, B. Belotserkovsky, O. Belenko, A. Borisov and many others.

Often carrying out tasks in hot spots, graduates had to organize social security for civilians and participate in stabilizing the financial and economic system of the regions. A striking example: in 2014, after the coup in Ukraine, economic terror organized in Crimea, the blockade of the banking and treasury systems, and deprivation of the population’s means of subsistence, the financial service of the Black Sea Fleet was able to quickly and combatively carry out, without exaggeration, a rescue financial and economic operation. As a result, more than two billion rubles that were in the accounts of the Bank of Ukraine were saved for the fleet and the state, hundreds of millions of hryvnia were secretly collected from the garrisons and converted into rubles. Together with the officers of the bank's field branches, a huge amount of cash was brought from the mainland for Pension Fund, Russian Post, credit, financial and other organizations of Crimea. If payment is impossible monetary allowance And wages by bank transfer plastic cards With a significant increase in the size of the fleet, they were issued in cash in a timely manner. Thanks primarily to the financial service officers, it was possible to bring it to an operational state in the shortest possible time salary project through a new servicing banking institution. All this significantly contributed to the economic stabilization of Crimea and social protection its population.

There is someone to be proud of

Among our graduates are 124 generals, 27 doctors of science and professors, three Honored Scientists of the Russian Federation, seven laureates of the State Prize named after. Marshal of the Soviet Union Zhukov, 59 honored economists of the Russian Federation, 13 officers awarded the badge “For excellent success in work in the field of higher education of the USSR”, three honorary workers of higher education vocational education countries.

Life has shown that university graduates are in great demand even after leaving military service. They have held and continue to hold worthy positions in the presidential administration and control department, the governments of Russia and Moscow, the Accounts Chamber, the Ministry of Economy and Finance, and other government bodies. University graduate in 2005, gold medalist, reserve colonel D. Aristov today as director Federal service bailiffs. A 2002 graduate, reserve colonel S. Emelyanov is director of the Department of Aviation Industry of the Ministry of Industry and Trade. The position of first deputy head of the Moscow Department of Finance, head of the city treasury is occupied by reserve colonel E. Menshov. The financial and economic bodies of the Departments of Health and Education of Moscow are headed by reserve colonels V. Pavlov and O. Yakovlev. The Presidential Control Directorate previously held public service officers S. Averichev and Yu. Fedorov. Military financiers A. Matyunin, A. Skobelev, I. Oshchipkov and P. Romashkan are successfully working here today. In the Department for Control of Defense Expenditures of the Accounts Chamber of Russia, which was headed by auditor A. Piskunov, more than 85 percent of the inspector staff were university graduates. Many have become major leaders in banking system states. Thus, the head of the Far Eastern Main Directorate of the Bank of Russia is S. Belov, the first deputy head of the Main Directorate of the Bank of Russia for the Central Federal District is V. Knysh. The Department of Field Institutions of the Bank of Russia is headed by O. Belenko. Manager of the Belgorod branch of the Main Directorate of the Bank of Russia for the Central Federal District - A. Belenko. Our graduates manage almost all financial bodies of the Armed Forces of states post-Soviet space. Many remain faithful to their chosen path, continuing to work in the defense structures of the state, the defense industry, heading research institutes, factories, financial departments, and pricing departments.

With great respect and pride, today we remember the heads of the Military Faculty - participants in the Great Patriotic War, generals N. Naidenov, V. Kriskevich, I. Ryzhkov, V. Selikha, V. Bursa, V. Semenikov, M. Polishchuk, who made a significant contribution to the development and improvement of the activities of the educational institution, the training of worthy personnel for the financial service.

The authority of the Military University and Military School is evidenced by visits to them by the president of the country, twice by the chairmen of the Russian government and the minister of defense. Even more elite educational institutions were not given such attention and honor.

Unfortunately, in 2009 and 2010, the Military Financial and Economic Academy in Yaroslavl and the Military Financial and Economic Institute, we repeat, were disbanded. This step was regarded by many army and navy veterans, especially university graduates, as anti-state, aimed at undermining the economy and combat readiness of the Armed Forces, and the country's defense capability. It seems that the current leadership of the two Ministries - Defense and Finance - will come to the conclusion that without such a unique educational institution, it is impossible to effectively resolve the issues of using budget funds for the country's defense.

I congratulate everyone who cares about the Military Finance and Economics University (Military Faculty of Finance and Economics at the MFI), I wish you health, prosperity and success in life. I am convinced that we have the right to be proud of the work done for the benefit of the Armed Forces.