The Center for International Security and Arms Control (CISAC) at Stanford University convened a workshop that dealt almost exclusively with software groups from the military-industrial complex. It also excludes any examples of software initiatives in Russia that are currently directed at the Russian market; however, it is the author's undocumented impression that there is not yet much commercial activity in this area.

This report is based primarily on the presentations and discussions at the workshop and secondarily on additional case data. The process of selecting cases for the workshop was not geared to find these failures as easily as those cases in which there is an ongoing activity. Nonetheless, the tendency toward success in software ventures versus
manufacturing ventures in the enterprises that are included is compelling.

Nuclear war is generally believed to bring risks of destruction out of proportion to any gain that may be secured by the war, or to any loss that may be averted, except perhaps for the loss of national independence and group survival. Nuclear-armed states, however, continue to project military force outside their own territory in order to carry out rivalries for power and influence. Will these rival power projections lead to war, as they often did in the past? If not, how will they be resolved? This paper makes the case that, because of the recognized destructiveness of nuclear weapons, rivalries among major nuclear-armed states for power and influence outside their own territory are not likely to lead to central war among them, but that definite lines separating zones of exclusive security influence, such as prevailed during the Cold War, will reappear where circumstances prevent
other compromises. This conclusion does not hold in the case of nuclear powers that are centrally vulnerable to conventional attack from each other: in that case, nuclear deterrence is less likely to be stable. Where lines are established, they may facilitate rather than prevent cooperation in dealing with the next century's global problems.

In the aftermath of the Cold War, global economic competition has come to play an increasingly important role in defining national security and the shape of the future world order. As international conflict shifts from military to economic competitiveness, many nations are now hoping to extract economic advantage from their investments in defense research and production. This volume brings together papers on several key aspects of defense commercialization and attempts to bridge the divide between research on conversion efforts in the United States and studies of transition in post-Communist economies.

Western analysts have become increasingly alarmed with Russia's assertive foreign policy -- in both the economic and the political/strategic spheres -- toward the new states of the former Soviet Union. Many have cited Russia's military interventions in Georgia, Tajikistan, and Moldova as signals of Russia's new imperialist designs. Russian policy toward the Baltic states has also spurred alarm. While Russian troops pulled out of the Baltic states as planned, the Russian Foreign Ministry has nonetheless threatened economic sanctions against Estonia and Latvia if citizenship rights for Russians are not further delineated in these states. Beyond the territory of the former Soviet Union, Russian assertiveness regarding sanctions against Serbia, NATO expansion, and arms trade with developing countries has compelled several analysts to speak of a renewal of Russian expansionist tendencies and hence a return of Cold War tension between West and East.

On December 10, 1994, Russian president Boris Yeltsin ordered Russian armed forces into the Republic of Chechnya. For eight weeks thereafter, the Russian military waged a poorly organized but brutally destructive assault on the Chechen capital of Grozny.

This report is the result of a CISAC-sponsored workshop in which several American companies doing business with military research and production enterprises could have more detailed interchanges with other American companies in a systematic way, and the results could be analyzed and reported.  The primary objective was to find successful approaches that could be applied to other ventures.  A secondary objective was to illuminate critical points for further collaboration and study.

The economic, political, and social changes underway in the former Soviet Union are of unprecedented scale and importance. Figures published in March 1993 cite that 839 defense enterprises, employing a total of four million workers, were undergoing conversion; 600 conversion programs were in effect to guide the process, and conversion of 400 of those enterprises was expected to be complete by the end of the year. In this process, 410,000 people, 210,000 of them engineers and technicians, have left the employ of the military industrial complex. These changes will affect all spheres of post-Soviet society, including the economy, social integrity, science, and culture, for decades to come. The complete restructuring of Russia's economic and social life will mandate in turn significant changes in the scientific establishment and its place in post-Soviet society.

This report is an expanded version of the executive summary of a much larger report, "Defense Industry Restructuring in Russia: Case Studies and Analysis." Many people contributed to that report, and to the underlying research. In writing that report, we did not attempt to reach consensus among the authors on the interpretations to be drawn from the data.

In this study we have looked at some of the most important elements of restructuring involved in the attempt to generate a viable civilian industrial sector from the assets of the military-industrial complex. Many other reform activities must be implemented at the national level to create the environment and infrastructure necessary for the functioning of a restructured industrial sector. Although not addressed here, they are important and difficult to implement. Another issue that we have not addressed is the pandemic presence of organized crime, which is a huge financial "tax" on economic activity as well as a disincentive to entrepreneurship and investment. I join those who believe that this is the largest single problem threatening the economic stability of Russia today.

In comparison with the postwar decades from 1945 to 1990, East Asian prospects for peaceful stability and economic growth have never been better. The Cold War confrontation between the Soviet Union and the United States has ended. The arms race that flooded the Pacific region with Soviet and U.S. nuclear weapons systems has been replaced by a gradual phasing out of tactical and intermediate missiles. The navies of the two superpowers are diminishing, albeit involuntary on Russia’s part. Moscow’s alliances with Pyongyang and Hanoi now exist only on paper. Washington’s bases in the Philippines were closed by mutual agreement.