ABSTRACT

The case studies in this book analyze the experiences of eight second-tier countries and that of the United States in restructuring their defense industries.All of these countries expressed a desire to reduce the drain of unnecessary military production on government coffers while freeing human capital, technology, plant, and equipment for other sectors in the economy, a search, in other words, for a physical, not just a fiscal,“peace dividend.”As the case studies illustrate, these countries met with varying degrees of success. Our case studies, which investigate this drama “on-theground,” demonstrate where governments went wrong and what these and other states might do to take better advantage of future opportunities in this sphere. Our results complement the macroeconomic studies of other scholars in assessing the degree to which governments were able to lower their defense budgets and why (Gleditsch et al., 1996; Brömmelhörster, 1999) and governments’ military industrial policy decisions in positioning their industries in the new global defense market (Bitzinger, 2003).