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Article

Conversion and Personnel in the Russian Military-Industrial Complex

Defence and peace economics. 1998. Vol. 9. No. 4. P. 367-379.
Shkaratan O. I., Fontanel J.
The experience of Russia in the field of conversion indicates that it is a costly process, because large expenditures are needed to compensate the enterprises for the losses produced by decreases in defence production and by the maintenance of average wages and salaries, without efficient production. Many large‐scale military conversion projects are difficult without the import of equipment and the participation of foreign capital. Because the MIC is involved in the national industry, the general characteristics of Russian workers reduce or improve the competitiveness of the Russian economy. But the military‐industrial complex, which is not very involved in the development of infrastructure and of service sector, developed its own specific demand and its own peculiar supply network. Therefore, the potential of Russia's human resources cannot be realised without active co‐operation on a mutually profitable basis with firms and corporations of other countries.