Conversion in the Perm Region of Russia: Empirical Studies

Abstract

The regional conversion programs have an advantage — their implementation permits the comprehensive use of the capacities of defense entreprizes of various industries. A combination of the various productions (of both defense and civilian enterprises available in the region) makes it possible to organize complete cycle technology production; to rationally solve the problem of establishing the necessary cooperation ties; to produce the materials, spare parts and finished products at the lowest cost; and, in the long run, to most efficiently invest the state’s money. If implemented, the programs will not only solve the region’s employment problem, but will also saturate their markets with industrial products and consumer goods in particular”¹

“The adoption of regional focus for conversion opens up new possibilities. Within a region or city enterprises formally of different ministerial affiliations can begin to establish relations with one another on a market basis, opening up new production possibilities. Civilian activities previously not considered can be developed in this form to identify local demand. Some production facilities of “universal” defense industry enterprises may find new opportunities as specialized suppliers of semifabricates, possibly industry, components, or services, initially with an orientation to the regional market. Such units may be able to privatize as independent companies [1].