ABSTRACT
This chapter summarizes the key public policy issues on economic adjustment and conversion. The economic conversion approach to plant closures differs sharply from economic adjustment. Conversion focuses on reuse of the plant facilities; adjustment concentrates on the community and its economic development capacity. Throughout the public literature and the two conversion bills before the Congress, there is generally a consistent definition of conversion. Economic conversion involves both job protection and the transition of workers skills and plant facilities to new civilian activities. In contrast with the DoD Budget reduction or weapons systems reduction objectives of the conversion proponents, the current interagency Defense Economic Adjustment Program recognizes that specific community and worker impacts may occur even within a stable or growing Defense budget. The actual small business and small enterprise job generation experience in the US does suggest that communities or regions should be stimulating new local business formation and expansion as a principal long-term economic development objective.
