ABSTRACT
The end of the Cold War led to a new security environment. The superpower arms race of the Cold War was followed by a new security environment involving, initially, a search for disarmament and the peace dividend, followed by local conflicts and terrorism. Developments in defence economics have reflected current events. During the Cold War, there was a focus on the superpower arms races, alliances (NATO and the Warsaw Pact), nuclear weapons and ‘mutual assured destruction’. In this period, arms control was based on international agreements. The end of the Cold War resulted in voluntary disarmament, a disarmament race and research into disarmament, the opportunities and challenges of conversion and the availability of a peace dividend. But the world remained a dangerous place with regional and ethnic conflicts (e.g. Bosnia; Kosovo; Afghanistan; Iraq), threats from international terrorism (e.g. terrorist attacks on USA: September 11, 2001), rogue states and weapons of mass destruction (i.e. biological, chemical and nuclear). NATO accepted new members (e.g. former Warsaw Pact states) and developed new missions. The European Union also developed a European Security and Defence Policy which has been renamed as the Common Security and Defence Policy.
