IT4Sec Reports 41 includes the main theses of a presentation at the NATO-RACVIAC conference on “Better Management of Defence Resources, including Integrity Building in the Armed Forces,” Rakitje, Croatia, 14-16 September 2009. It sees resource management in security and defence as traditionally judged in view of effectiveness and efficiency. However, when the decisions are made by a few insiders and under the veil of secrecy, there is no guarantee that the interests of society will be protected. Further, there are no guarantees that the use of public resources will deliver anticipated effects in an efficient manner. In approaching this general problem, the paper outlines general principles of democratic governance of the security sector. It then focuses on the institutional perspective on democratic governance, underlining ways in which a defence minister can greatly contribute to improving governance in managing resources for security and defence. Finally, the paper lays out ideas on how the cooperation among countries in South Eastern Europe could contribute to strengthening the governance of security and defence sectors, and resource management in particular.