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Proponents of arms control and disarmament are often confronted with the argument that reductions in defense expenditure lead to cutbacks in military industries and thus to economic hardship. While a reduction in defense production would cause some economic dislocation, this would be mitigated by the ability of the economy to adapt to changing patterns of production. This book, first published in 1983, assesses the likely effects of reductions in defense industries by an examination of the roles these industries play in national economies. Each chapter discusses industry employment, output, research and development, capital value, profitability, concentration and competition, internal organization and regional employment concentration. Other questions considered include the economic importance of weapons exports, the defense industry as a ‘leading edge’ in maintaining national technological capabilities, and the reliance of individual firms on defense contracting.
A reorientation of the international security environment and a revolution in military affairs has occurred. As a result, the Defense Industrial Base (DIB)'s controlling policies, practices, laws and the Services budgets and requirements priorities do not match present needs. Numerous environmental factors have contributed to this disparity, with the most influential being the rise of a holistic view of security, future unpredictability, the impact of globalization, and changes within the structure of the defense industry. In light of these factors, several important assumptions about the future environment must be made. Our research indicates that a continuation of irregular threats and conflicts will likely occur, and defense budgetary pressures will grow stronger. Concurrently, the rapid growth of technology will continue to complicate how defense issues are approached. All of these issues will be influential factors for twenty-first century defense planning. In order to meet the demands of the future, we recommend that the United States must be able to create an effective, agile, and affordable joint military force by forming a robust, responsive, efficient and innovative DIB. It must also update its policies and practices to permit the effective creation, acquisition management and support of large, complex systems, systems-of-systems and services. To accomplish these goals, decision-makers must consider and overcome several barriers. On the whole, government policies, processes and management of the defense enterprise are not organized in a manner that would effectively facilitate the transition to a twenty-first century military force. Reductions in the DoD acquisition workforce also make transformation a difficult task, as the skills and people required are not available.
This book makes an original contribution to our knowledge of the world’s major defence industries. Experts from a wide range of different countries – from the major economies of North America and Western Europe to developing economies and some unique cases such as China, India, Singapore, South Africa and North Korea – describe and analyse the structure, conduct and performance of the defence industry in that country. Each chapter opens with statistics on a key nation’s defence spending, its spending on defence R&D and on procurement over the period 1980 to 2017, allowing for an analysis of industry changes following the end of the Cold War. After the facts of each industry, the authors describe and analyse the structure, conduct and performance of the industry. The analysis of ‘structure’ includes discussions of entry conditions, domestic monopoly/oligopoly structures and opportunities for competition. The section on ‘conduct’ analyses price/non-price competition, including private and state funded R&D, and ‘performance’ incorporates profitability, imports and exports together with spin-offs and technical progress. The conclusion explores the future prospects for each nation’s defence industry. Do defence industries have a future? What might the future defence firm and industry look like in 50 years’ time? This volume is a vital resource and reference for anyone interested in defence economics, industrial economics, international relations, strategic studies and public procurement.
Defence Industries in the 21st Century explores the transformation in the global defence industrial production through examining the interaction between international and domestic factors. With the global defence industry and arms market likely continue to expand and mature, the ways in which this progression could influence international politics remain obscure. In practice, as the contents of this book show, the defence industrial bases and arms export policies of emerging states display significant variance. This variance is the result of a unique balance between domestic and international factors that has shaped the defence industrialisation behaviour and policies of the less industrialised states. One of the most important conclusions of the book is that the interplay between domestic and international factors clearly influences the variation in the emerging states’ defence industrialisation policies, as well as their success or failure. While international factors create opportunities, they also limit the options available to emerging economies. Domestic factors also play an important role by shaping the policy choices of the states’ decision makers. Exploring the balance between international and domestic factors and the ways in which they influence defence industrialisation in emerging states, Defence Industries in the 21st Century will be of great interest to scholars of Defence Industries, Arms Manufacturing, and Defence, Strategic and Security Studies more generally. The chapters were originally published in Defence Studies, Comparative Strategy and All Azimuth.