DEVELOPING A SELF-RELIANT

MARITIME DEFENSE POSTURE

Rep. FRANCISCO ASHLEY Ace ACEDILLO
MAGDALO Party-list

AN EVOLVING CONCEPT OF
MARITIME DEFENSE

Defense is better
defined under an allencompassing pursuit of
Security

Maritime defense,
therefore, must be
guided by a National
Security Strategy
(grand strategy) that
prioritizes the maritime
aspect (maritime
strategy)

A 3-PRONGED MARITIME
STRATEGY*

A Strategy of Wealth

A Strategy of Means

Naval Strategy

*CAPT Lars Weidin, French Navy (Ret). Sea Power and Air Power. Some Thoughts About the Future.

A STRATEGY OF WEALTH

A maritime strategy must afford a nation

the richness and bounty of its seas and
the myriad opportunities it offers

A STRATEGY OF WEALTH

It must promote and

ensure seaborne
trade of goods, oil,
and natural gas

It should conserve
& sustain a harvest
of fish and other
marine resources

A STRATEGY OF WEALTH

It must allow
exploration and
extraction of offshore
oil and natural gas

It should foster
coastal tourism

Make possible
mineral seabed
exploration & marine
biotechnology

A STRATEGY OF MEANS

A maritime strategy must

conceive and acquire the
wherewithal (ships, platforms,
etc.) necessary to pursue its
maritime strategic objectives

NAVAL STRATEGY

This is the strategy

of action by forces in
the maritime field.

Maritime forces are

all forces that have a
vocation to act on
the sea: navy, coast
guard, maritime air
based on land and so
forth

NAVAL STRATEGY

UNITED STATES
MARITIME
STRATEGY

COUNTRIES THAT DID IT

RIGHT
MALAYSIA: Self-Reliant Defense as a National Vision

4 Pillars of Malaysias offset model: POLICY,

IMPLEMENTATION, BENEFITS, GOALS.

Called Techno-Vision: model adapted from Malaysias Vision

2020 (Wawasan 2020) policy

Vision 2020 aimed to create both effective utilization of

current technology and increased absorption of new
technology to assist the industrialisation process, enhancing
Malaysias international competitiveness

Techno-Vision Model of Malaysia

COUNTRIES THAT DID IT

RIGHT
TURKEY: Self-Reliant Defense as a Product of Defense
(MOD) Reorganization

The govt. initiated moves to realize the modernization of

the Turkish Armed Forces

Sought to establish a national defence industry based on

contemporary technology as the primary goal

In 1985, passed Law No. 3238 putting the Undersecretariat

for Defence Industries (SSM) in charge of modernizing the
national defense infrastructure in Turkey

COUNTRIES THAT DID IT

RIGHT

COUNTRIES THAT DID IT

RIGHT
TURKEY: Self-Reliant Defense as a Product of
Ministry (MOD) Reorganizing

The Undersecretariat for Defence Industries

(SSM) achieved this in a little over a decade by reorganizing and integrating the existing
national industry, encouraging new enterprises,
seeking foreign capital and/or foreign technology
infusion, and providing guidance (and if
necessary, state subsidy) to private enterprises

COUNTRIES THAT DID IT

RIGHT
AUSTRALIA: Self-Reliant
Defense as a Part of an
Industry Sustainment Policy

To maintain sovereign,
national support for
sensitive technologies not
available from third-party
international sources

This also allows Australian

naval vessels to meet
specific national needs or
operating doctrines

COUNTRIES THAT DID IT

RIGHT
AUSTRALIA: Self-Reliant Defense as a Part of an
Industry Sustainment Policy
Control sensitive information about the technologies
and capabilities of its warships

Address political sensitivities, seeing that most

shipbuilding industries employ large numbers of
workers, hence politicians have a vested interest in
preserving a healthy domestic industry

Stimulate the domestic economy at large

COUNTRIES THAT DID IT RIGHT

Production of naval warships in Australia involves a 30 percent to 40 percent

price premium over the cost of comparable production at shipyards overseas.
This premium could drop over time, however, with steady production drumbeats
and mature designs.

CORRELATING COUNTRY R&D

SPENDING WITH WEAPONS QUALITY

McKinsey & Company

CORRELATING COUNTRY R&D

SPENDING WITH WEAPONS QUALITY
McKinseys Steven Bowns generated a historical
conversion function of R&D investment into a quantified
metric, MEQ (Military Equipment Quality)
MEQ compares one aspect of the fighting power of one
military with the same aspect of the fighting power of
another
MEQ analysis involved using conjoint techniques to
assess 69 categories of military equipment across ten
countries and five time periods dating back to 1971,
generating like-for-like comparisons of the equipments
fitness for purpose

CORRELATING COUNTRY R&D

SPENDING WITH WEAPONS QUALITY

The MEQ framework produced expert ratings on the overall

quality of 5,500 pieces of military equipment a statistical
robustness that gives MEQ much greater reliability than any
other published measure of defense output to date.

CORRELATING COUNTRY R&D

SPENDING WITH WEAPONS QUALITY

The overall correlation between MEQ scores and R&D investment

25 years prior came out to be 0.9 (almost a 1-to-1 correlation) a
very strong indication that, over time, governments got what they
paid for. MEQ, if coupled with a measure of troop quality, could
well predict the outcome of future wars.

QUO VADIS, PHILIPPINES?

A RANKING OF NAVIES

RAND Corporation

A RANKING OF NAVIES

RAND Corporation

A RANKING OF NAVIES

Philippines

RAND Corporation

A RANKING OF NAVIES

Philippines

RAND Corporation

GENERIC PROCESS CHART OF CAPABILITY-BASED PLANNING

Government
Guidance

Capability
Partitions

Defence
Priorities

Operational
Concepts

Current and
Planned Capability

Scenarios

Capability Goals

Future Environment
(Threat, Technology, etc)

Optional

Capability
Assessment

Identify
Capability
Mismatches

Force
Development
Options

Self-Reliant Maritime Defense

Resource
Constraints

Balance of
Investment

Affordable Capability
Development Plan

Defence
Priorities

Government

Demand

Laws
Policies
Regulations
Procedures

Government

Supply

Supply

Self-Reliant
Defense
Posture

Technology

Defence & Industrial

Base & Govt Arsenal
Phil. Assoc. of Defence
Manufacturers (PADM)

Domestic Market
AFP
National Police
Commercial Market
Export Market

Demand

Technology
DOST
Research and Devt
Centres
University Laboratories
Knowledge & Skills

Source: Robert Sylim, Cranfield University

SRDP Viewed from the Lens of

Industrialization

30

SRDP Viewed from the Lens of

Industrialization

31

POINTS OF EMPHASIS
The need - and primacy - for a NATIONAL SECURITY
STRATEGY (NSS) that defines what our National
Interests are and lays down the ENDS, WAY, and
MEANS to achieve these interests - cannot be
overstated
!

The NSS should be a Presidential undertaking

(similar to the 1987 U.S. Goldwater-Nichols Act), in
effect becoming a companion document to the
Philippine Development Plan (or MTPDP)
!

The formulation of succeeding subordinate strategies,

especially the National Defense Strategy and the
National Military Strategy, spring forth from the
NSS
32

POINTS OF EMPHASIS
Our countrys MARITIME STRATEGY, therefore, must be
subsumed and complementary to our National Defense
Strategy

!
The Philippine Navys Active Archipelagic Defense
Strategy (AADS) shall become the bedrock of Philippine
Maritime Strategy and complementary to the National Coast
Watch System (NCWS)

!
The short-term (2013-2017), as well as medium-to-long term
(2018-2028), horizons of the AADS have been laid down by RA
10349 (AFP Modernization Act of 2012)

!
The provisions of the Modernization Law pertaining to a SelfReliance Defense Program (SRDP), although it mentions
countertrade, are insufficient when pursuing a truly Self33
Reliant Maritime Defense Posture

POINTS OF EMPHASIS
A Self-Reliant Maritime Defense Posture that is truly robust must
derive its mandate from the synergy of sound economic policy
(MTPDP-PDP/Investment Priorities Plan) and a well-articulated
security strategy (NSS)

!
Changes to the regulatory framework affecting the Defense
Industrial Base (DIB) - namely RA 9184 (Government Procurement
Reform Act), RA 10349 (AFP Modernization Law), laws on
investments and tax incentives, among others - should form part of
the DND-AFP legislative agenda

!
The countrys SRDP, vis-a-vis the current Modernization Programs
acquisition plan, can get a shot in the arm if the Defense
Acquisition System (DAS) Office of DND will formulate an effective
Countertrade Policy/Guidelines

!
Congress must legislate a national policy to institute and provide
funding to increase government-industry collaboration to heighten
34
R&D and innovation (similar to the America COMPETES Act)

A Countertrade Policy for

Defense

35

A Countertrade Policy for

Defense - OFFSETS

Defense offsets: From contractual burden to competitive weapon, McKinsey and Company. 2014.

36

Caveats to Self-Reliance
Requires a steep learning curve (and
the concomitant, albeit painful, lessons
to be learned)
!

Countertrade and offsets have been

prone to allegations of corruption and
wrongdoing
!

Current procurement laws put primacy

on lowest cost (under SRDP, you might
need to spend more)
37

Caveats to Self-Reliance
Efforts at defense self-reliance can
quickly shift to the guns vs. butter
debate
!

Advocates of Philippine Maritime

Strategy must prepare also for the
BUILD vs. BUY debate
!

Prepare also for peripheral debates on

whether or not Philippines must
acquire submarine capabilities

38

Caveats to Self-Reliance
If we find ourselves needing another
Modernization Law after 2028, then both the
broad objectives of modernization and its
subordinate goal of a self-reliant defense posture
HAVE FAILED
!

Therefore, our defense planners must ensure that

the development, acquisition and sustainment of
weapons and equipment for maritime defense
thrive under regular budgetary appropriations
and a vibrant defense industrial base
!

The latter, I believe, is the true meaning of SELF39

RELIANT MARITIME DEFENSE!

END OF PRESENTATION
DEVELOPING A SELF-RELIANT
MARITIME DEFENSE POSTURE
Rep. FRANCISCO ASHLEY Ace ACEDILLO
MAGDALO Party-list