Global Trends in Military Production and Conversion

Abstract

The end of the Cold War has forced the world's military-industrial complex to concentrate on technological niches rather than broad technological thrusts. The decline in defense budgets and the cutbacks in defense production will erode military capabilities in the developed world, allowing the Third World to catch up in key niches. Defense conversion has not succeeded to date, and is unlikely to succeed on anything like the scale of the previous military production or to absorb significant numbers of unemployed defense workers. The military-industrial complex should be allowed to consolidate and contract while new business formation among former defense workers, researchers, and engineers should be encouraged. In the long run, entrepreneurship will likely prove more beneficial and productive than trying to keep alive the kinds of enterprises that served the needs of the Cold War.