The world economic crisis has had an impact on virtually everyone. Proceedings asked the commanders of the world's navies: The global economic downturn is obviously affecting the United States and its Navy. How is it affecting your navy's maritime strategy, operation, and force structure?
Admiral Rolando Navarrete—Peruvian Navy
The Peruvian Ministry of Defense, to accomplish the mission entrusted to the armed forces while preserving and enhancing current capabilities, developed an intermediate-term vision of its 2006 Core of Defense project. Each of the armed forces' strategic plans is set up within a very strict budget framework to upgrade and purchase new materiel to fulfill the joint roles assigned to them.
Many changes have been added to administrative procedures, focusing and minimizing where possible excessive and unnecessary uses of economic and materiel resources. Applying a results-based management system and maximizing the use of management indicators have strengthened the budgetary process. We have implemented Quality Management Systems ISO 9001:2008 and Environmental Management Systems ISO 14000:2004 to optimize processes.
The Peruvian Navy endorses this concept and, considering the possible effects of the global economy, has made adjustments to all financial processes and operational exercises. We instituted cuts in expenditures and prioritized our objectives. This forced us to delay some planning issues to avoid undermining human planning objectives, which we consider our main asset.
By the start of 2010, the Peruvian Navy had begun recovery from the direct impact of the global economic crisis. This is the result of a joint effort within the government and the consolidation of the navy's strategic objectives for mid- and long-term plans. The Peruvian Navy has been able to adapt to the new millennium. The obstacles most feared as a result of the global economic crisis have been overcome thanks to the effort, dedication, and professionalism of each of its members.
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