Conversion Strategies in Eastern Europe and the former USSR: a thematic overview

Abstract

This is the first of two thematic chapters which introduce perspectives on the subject of defence conversion from the East and the West. The plan of this chapter is as follows:

• First, a systems representation of an enterprise is introduced. This helps us to analyse how conversion affects the main subsystems of a former military enterprise. The elements of the system that will be addressed are the goal setting subsystem, the technology base, the human resource base, the structure, and the management.

• Second, this approach is used to analyse and compare different conversion concepts and strategies proposed in recent years.

• Third, various possible ways to elaborate a sound conversion project at the enterprise level are discussed. Three specific domains in conversion project design/implementation are described. These concern the inter-relations between potential markets, necessary investments and the ‘technological gap’ between available military technology and its potential civil analogues.

• Fourth, concrete conversion activities are described and analysed, drawing principally upon experience from Russia, but with observations from other countries. Examples are presented based upon regional policy in the conversion of military industries and institutions in St. Petersburg; conversion support infrastructures in Bratislava and StPetersburg; and experience of German and Russian participants in conversion projects.

• Finally, the role of international cooperation and foreign investment in conversion is considered, once more on the basis of concrete examples.