PRIVATIZATION, CONVERSION, AND RESTRUCTURING IN RUSSIA MILITARY-INDUSTRIAL COMPLEX - MACROECONOMIC IMPLICATIONS OF A SECTOR SET APART

Given the prominent role that defense industry plays in Russia's economy, thorough reform of the military-industrial complex will be a necessary condition for success in Russia's overall economic transformation. Because all aspects of defense industry reform are intimately interelated, a discussion of any one problem in isolation necessarily understates the difficulties of the multifaceted reform required. This article will address three critical aspects of Russian defense industry reform (privatization, conversion, and restructuring) focusing on government-level policies and their likely macroeconomic impact.