Conversion Of The Defense Industry In Russia And Eastern Europe

Author : Michael P. Claudon
Publisher :
ISBN 13 : 9780814714881
Total Pages : 133 pages
Book Rating : 4.7/5 (148 download)

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Download or read book After the Cold War written by Michael P. Claudon and published by . This book was released on 1993 with total page 133 pages. Available in PDF, EPUB and Kindle. Book excerpt: In December 1988, President Gorbachev announced at the United Nations that the Soviet Union would unilaterally cut 500,000 troops from its military forces and begin conversion of its military-industrial complex, which dominates its economy. Since that formal declaration four years ago, the breakup of the East Bloc and the Soviet Union has dramatically changed and improved East-West relations. But the initial optimism at the "end" of the Cold War has now been replaced with the realization that building new economic, political, and military relationships will test the good will, patience, and creativity of both sides. Nowhere are the issues thornier and the potential rewards greater than in defense conversion in Russia. The pervasiveness of their military-industrial complex dwarfs that of the United States: one of five workers is employed by the defense industry; defense enterprises are the sole employers in half their communities; many consumer goods are produced only by defense industries; 80 percent of all research and development was devoted to defense; arms sales in the 1980s mainly to Third World countries were Russia's largest source of hard currency. In short, defense budgets have bankrupted Russia and distorted investment and production for decades. Russia's fledgling free-market economic reforms cannot succeed without the conversion and privatization of much of this military-industrial complex. But to date, there has been little progress, and Russia's conversion programs are long on intent and short on specifics. After the Cold War - Russian-American Defense Conversion for Economic Renewal contains papers presented at the Geonomics Institute fall 1992 seminar on defense conversion and examines some of the questions and policy choices that both countries face in defense conversion and economic restructuring. Where, for example, will a destitute Russian government find the billions of dollars that conversion will require? A smaller, stable military-industrial complex and a vibrant market economy that provides new jobs producing consumer goods is clearly in the interest of the West. How, for example, can Western public and private institutions best assist Russia in creating a legal and business infrastructure conducive to the development of a market economy and foreign investment? In adopting the Bread Loaf Charter, seminar participants proposed a series of recommendations to promote U.S.-Russian cooperation and to accelerate conversion. After the Cold War makes clear that defense conversion in Russia will require strong domestic leadership but also cooperation, technical help, and especially leadership from the United States.