ABSTRACT
Large-scale conversion of the former Soviet military-industrial complex to meet civilian needs is the most important economic measure needed to assure a democratic Russia’s future. This is because U.S.S.R.’s defense R&D and industry were such a dominant part of its economy, and remain so in Russia, as a result of the priority they enjoyed in the Soviet era.
In turn, Russia’s economic progress will determine its political development. Yeltsin himself has said that by the fall of 1992 his own political future will hinge on the state of Russia’s economy. The latter will be affected greatly by the contribution of its defense industry, since, directly or indirectly, it is responsible for most of Russia’s output. 1 Russia’s defense industry currently remains under the control of the nomenklatura management which tends to oppose reform and conversion.
