Do national defence and security institutions have beneficial ownership of commercial businesses? If so, how transparent are details of the operations and finances of such businesses?
31a. Extent of commercial ventures
France score: 100/100
Defence institutions have ownership (or are believed to have ownership) of commercial businesses that are major enterprises, or constitute more than 10% of the defence budget.
Defence and security institutions have some ownership of commercial businesses, but totaling less than 10% of the defence budget.
Defence and security institutions do not own commercial businesses of any significant scale. (Equivalent to 1% of the defence budget or less.)
The Ministry of the Armed Forces (MOAF) does own some commercial entities. They are providers of the logistical needs of the armies. The main one is “Economat des armées”, a public entity with an industrial and commercial purpose, a central procurement and service provider to the armies. It has a special commercial status and is not required to abide by the code of public procurements, according to decree n°2005-1742 of December 30, 2005.  It operates under the supervision of the “Etat-Major des armées”, within the MOAF, and the French army is its main client. It can, however, provide logistical services to other French administrations, or to allies (the UN, EU, African Union, NATO). The profits made from such transactions do not represent large enough amounts to be considered as a commercial activity pouring revenues into the MOAF’s budget.
Other providers such as “Service des Essences des Armées” [Armed Forces Oil Service], are allowed to have other customers than the French army (allied forces), but these transactions are overseen by strict rules.  And, as with the “Economat des armées”, the profits made from such transactions do not represent large enough amounts to be considered as a commercial activity bringing revenue into the MOAF’s budget.
International Defence Counsulting (DCI) was created by the MOAF to accompany and enhance French arms exports. It is a consulting company, providing training, expertise and assistance to customers of French exports. 
An interview with an expert of the economy of the army  revealed that these entities owned by the MOAF represent marginal assets, equivalent to 1% of the defence budget or less.
In France, it is the French State that holds market shares in military/security companies: Thales 26,6%, Safran 15,4%, Areva 88,7%, Nexter 100%, Airbus 11,1%, DCI 49,9%, Naval Group 63,5%, KNDS 50%. 
1. Décret n°2005-1742 du 30 décembre 2005 fixant les règles applicables aux marchés passés par les pouvoirs adjudicateurs mentionnés à l’article 3 de l’ordonnance n°2005-649 du 6 juin 2005 relative aux marchés passés par certaines personnes publiques ou privées non soumises au code des marchés publics [Decree n°2005-1742 of December 30, 2005 fixing the rules applicable to contracts awarded by the contracting authorities mentioned in Article 3 of Order n°2005-649 of June 6, 2005 relating to contracts awarded by certain public or private persons not subject to the « Code of public procurements], available at https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000000811078&categorieLien=cid.
2. Armed Forces Oil Service, https://www.defense.gouv.fr/essences.
3. “Who are we?”, International Defence Consulting, https://www.groupedci.fr/.
4. Interview with Jacques Aben, Expert of the defence economy and Professor of Economics at Montpellier University, March 1st, 2019.
5. Activity report 2017-2018: Sector Panorama – Industries (Paris: State participations Agency (APE), 2018), https://www.economie.gouv.fr/files/files/directions_services/agence-participations-etat/Documents/Fiches-entreprises/Industrie/Panorama_Industrie.pdf.
France score: NA/100
These businesses are not publicly declared and are wholly non-transparent.
Only some businesses are publicly declared. Details of their operations and finances are not fully transparent.
These businesses are publicly declared, though details of their operations and finances are not transparent.
All or most ownership of commercial businesses is publicly declared. Either operations and finances are transparent, but not both.
Any ownership of commercial businesses is publicly declared, with details of their operations and finances being transparent, fully disclosed, and with standards of governance equivalent to publicly owned commercial enterprises.
This indicator is marked ‘Not Applicable’. The ministry doesn’t literally “own” companies. It can have the usufruct of the non-fiscal benefits, but this does not equate to “ownership”.
The books, summary of accounts and business expenses of (fully or partially) state-owned companies are shared with the accounting services of the French State (APE),  with standards of governance equivalent to publicly-owned commercial enterprises, though the details of these books aren’t available to the public in a disaggregated form.
Open-access information is rather general and vague: we know that in 2017, the French State earned 3.9 billion Euros in dividends, but this figure is for all revenues of State shares in these companies. Figures for defence-related companies could not be found. Even harder to find is the figure for State dividends from defence activities in defence-related companies. 
1. Activity report 2017-2018: Sector Panorama – Industries (Paris: State participations Agency (APE), 2018), https://www.economie.gouv.fr/files/files/directions_services/agence-participations-etat/Documents/Fiches-entreprises/Industrie/Panorama_Industrie.pdf.
2. Appendix to the PLF 2017 – State shareholder report (Paris: Ministry of the Economy and Finance, 2017) page 34 https://www.performance-publique.budget.gouv.fr/sites/performance_publique/files/farandole/ressources/2017/pap/pdf/jaunes/jaune2017_Etat_actionnaire.pdf.
Compare scores by country
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|Country||31a. Extent of commercial ventures||31b. Transparency|
|Albania||50 / 100||50 / 100|
|Algeria||0 / 100||25 / 100|
|Angola||0 / 100||25 / 100|
|Argentina||50 / 100||50 / 100|
|Armenia||75 / 100||50 / 100|
|Australia||100 / 100||NA|
|Azerbaijan||100 / 100||NA|
|Bahrain||100 / 100||NA|
|Bangladesh||NEI||25 / 100|
|Belgium||100 / 100||NA|
|Bosnia and Herzegovina||100 / 100||NA|
|Botswana||100 / 100||NA|
|Brazil||100 / 100||75 / 100|
|Burkina Faso||0 / 100||0 / 100|
|Cameroon||0 / 100||0 / 100|
|Canada||75 / 100||50 / 100|
|Chile||50 / 100||50 / 100|
|China||NEI||25 / 100|
|Colombia||50 / 100||100 / 100|
|Cote d'Ivoire||75 / 100||0 / 100|
|Denmark||100 / 100||NA|
|Egypt||0 / 100||25 / 100|
|Estonia||100 / 100||NA|
|Finland||100 / 100||NA|
|France||100 / 100||NA|
|Germany||100 / 100||75 / 100|
|Ghana||0 / 100||0 / 100|
|Greece||100 / 100||NA|
|Hungary||50 / 100||50 / 100|
|India||25 / 100||75 / 100|
|Indonesia||100 / 100||25 / 100|
|Iran||0 / 100||50 / 100|
|Iraq||25 / 100||0 / 100|
|Israel||100 / 100||NA|
|Italy||100 / 100||75 / 100|
|Japan||100 / 100||NA|
|Jordan||0 / 100||50 / 100|
|Kenya||50 / 100||50 / 100|
|Kosovo||100 / 100||NA|
|Kuwait||100 / 100||0 / 100|
|Latvia||100 / 100||100 / 100|
|Lebanon||50 / 100||50 / 100|
|Lithuania||100 / 100||100 / 100|
|Malaysia||0 / 100||75 / 100|
|Mali||50 / 100||50 / 100|
|Mexico||50 / 100||50 / 100|
|Montenegro||50 / 100||50 / 100|
|Morocco||100 / 100||NA|
|Myanmar||0 / 100||0 / 100|
|Netherlands||100 / 100||NA|
|New Zealand||100 / 100||100 / 100|
|Niger||100 / 100||NA|
|Nigeria||50 / 100||50 / 100|
|North Macedonia||100 / 100||100 / 100|
|Norway||100 / 100||100 / 100|
|Oman||0 / 100||0 / 100|
|Palestine||100 / 100||NA|
|Philippines||100 / 100||NA|
|Poland||100 / 100||NA|
|Portugal||50 / 100||50 / 100|
|Qatar||0 / 100||25 / 100|
|Russia||NEI||50 / 100|
|Saudi Arabia||50 / 100||50 / 100|
|Serbia||50 / 100||50 / 100|
|Singapore||100 / 100||NA|
|South Africa||100 / 100||NA|
|South Korea||100 / 100||NA|
|South Sudan||25 / 100||0 / 100|
|Spain||100 / 100||NA|
|Sudan||0 / 100||25 / 100|
|Sweden||100 / 100||100 / 100|
|Switzerland||0 / 100||100 / 100|
|Taiwan||100 / 100||NA|
|Tanzania||0 / 100||25 / 100|
|Thailand||50 / 100||0 / 100|
|Tunisia||100 / 100||NA|
|Turkey||50 / 100||50 / 100|
|Uganda||50 / 100||75 / 100|
|Ukraine||0 / 100||50 / 100|
|United Arab Emirates||100 / 100||0 / 100|
|United Kingdom||75 / 100||100 / 100|
|United States||100 / 100||NA|
|Venezuela||0 / 100||50 / 100|
|Zimbabwe||0 / 100||0 / 100|