Application of Economic Principles to Improve Thailand’s Defense Management

Abstract

This research aimed to 1) review the economic principles that can be applied to improve Thailand’s defense management; 2) explore the current management practices, of the Defense Ministry and Armed Forces, which can be improved in accordance with the National Strategy; and 3) make recommendations on improvement. This is a qualitative and strategic research where secondary data were used and content analysis was applied.

This research found that 1) redundancy of administrative works and organizations exists among the Ministry and Armed Forces, namely, facility management, research and development, and information management; 2) defense acquisition is not centralized, causing too many equipment types but a small number of units purchased; and 3) organization of Army’s new-recruited basic-training units is not economies of scale while organization of officer education and training units is barely economies of scope.

This research recommended that 1) the Defense Ministry should conduct the defense management review to evaluate the current organization and managerial process, and separate all administrative works and non-military supports from the Armed Forces and manage them dislike military unit; 2) the Ministry should organize defense-acquisition branch and centralize acquisition process; 3) the Royal Thai Army should organize basic-training units specifically for new recruits; and 4) additional tasks of training direct-entry officers should be assigned to service officer-training academies.