ABSTRACT
The State Conversion Program has come under strong and justified criticism from the academic community. Specifically, long-established normatives of the strategic reserves are to be revised in order to release not only material and labor resources, but also production capacities, thereby expanding the resource base of conversion. In order to facilitate rapid change in the structure of heavy industry, this industry should undergo fundamental reorganization. A sharp expansion of both technological and production cooperation with the defense industries forms the necessary base for growth and improves the level of technology in the production of consumer goods for the civilian sector of the economy. The principles of technologically effective cooperation should form the basis for the organization of consumer goods’ production. The problem of maintaining the productive machinery of the country when the accumulated obsolete stock of equipment cannot be completely renovated is closely linked to the problem of investment in technological developments.
