Governance costs and defence intelligence provision in the UK: a case-study in microeconomic theory

Abstract

This paper focuses on how distinct organizations and functions interact in a symbiotic way to provide the governmental functions of security and intelligence, and the place of defence intelligence amongst them. Because the external environment in which security and intelligence provision must be managed is both uncertain and complex, the manner in which defence intelligence negotiates its role and priorities with other organizational entities is critical to overall levels of success. This paper uses a mix of primary and secondary sources, supported by qualitative interviews, to argue that the narrow focus of previous theoretical approaches has left them able to explain either good or poor cooperative working in the defence intelligence sphere, but not both. It contends that the more holistic theoretical paradigm offered by an adapted transactional costs model that captures the governance difficulties involved can better explain all possible outcomes.