Implementing an All-Volunteer Force in Taiwan

This document suggests how the Republic of China Taiwan might best meet its needs for military personnel in a challenging demographic environment. Taiwan is striving to complete the transition to an entirely volunteer active duty military by 2014. It faces relatively high personnel costs because of a high demand per capita for military personnel. After 2014 the youth population will decline, which will further increase costs. Completing the transition and then assuring an effective volunteer military over the long run will require the military to successfully compete in the labor market for people of military age. The United States has relied heavily on economic analysis to better understand how to manage its volunteer military efficiently. The paper draws on the American experience to illustrate ways to compete effectively in the labor market for recruits, both by reducing demand and by increasing supply. It concludes that a program of economic analysis could help lower Taiwans cost of transitioning and maintaining a volunteer force.