Abstract
Defense transformation in small and medium-sized countries has a dialectical aspect. On one hand, it is a general process that has arisen as a result of the effect of the forces of globalization on domestic security and defense issues. As such, it is identical for all countries, having the same features. On the other hand, as a critical organizational process, defense transformation represents a unique response by each nation’s defense institutions, a response that is crafted in order to cope with challenges coming from both internal and external sources. This paper will analyze the challenging dimensions of defense transformation from the perspective of the binomial relationship of willingness and affordability, and will compare the advantages and disadvantages of various approaches. It is obvious that the complexity of the defense transformation process comes from the many questions it raises and requirements it poses, which each country must solve for its own specific context.
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