ABSTRACT

The purpose of defense is not to pursue economic goals, but to fulfill defense needs. But undeniably, an economic role exists within the framework of resource allocation to satisfy collective goals in addition to defense. Organizing and equipping armed forces depends not only on their needs, but also on the available resources2 and on the economic and technological fall-out of a state’s defense policy. Defense policy can thus be linked to the pursuit of economic policy goals such as an improvement in employment levels, economic growth of domestic defense and other industries, improvements in the balance of trade, or of the distribution of income. By integrating defense offset requirements and priorities into its defense industrial policy, Belgium pursued such general economic policy goals as part of its defense acquisitions. In particular, Belgium used offsets as a means to maintain its defense industrial base and to improve its technical prowess. This chapter briefly summarizes and evaluates Belgium’s experiences with defense-related offset arrangements.