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Market Reforms and Regional Differentiation of Russian Defence Industry Enterprises

Bibliographic Data

ID12300299
AuthorsAlexei Izyumov (0000-0002-1750-2790, corresponding author), Leonid Kosals (0000-0002-5517-7415, National Research University Higher School of Economics), Rosalina Ryvkina, Yurii Semagin
Year2002
Volume54
Issue6
Pages959-974
Publication date2002-09-01
Open AccessNo
TypeARTICLE
VenueEurope Asia Studies (JOURNAL)
Journal identifiersISSN: 0966-8136 • E-ISSN: 1465-3427
PublisherRoutledge (PUBLISHER • GB)
DOI10.1080/0966813022000008474a
OpenAlexW2000914925
LanguageEN
Citations received1
References cited12

IN THE COURSE OF THE 1990S the Russian defence industry was hit by the triple shock of severe budget cuts, radical market reforms and the breakdown of traditional economic ties with partners in the other former Soviet republics. While the shock of transition has taken its toll, by the second part of the decade the defence industry was engaged in the process of adaptation to the market and 'bottom-up' restructuring. At the same time, the change in the macroeconomic situation brought about by the financial crisis of 1998 has helped to reverse the decline of the Russian defence industry. The deep devaluation of the ruble increased the competitiveness of Russian military exports along with the civilian products of the defence industry sold on the domestic market and created conditions for its possible revival. The major change in the international situation brought about by the terrorist attacks in the US and the war in Afghanistan in 2001-02 has given an additional impetus to the development of the Russian defence industry. In view of the current situation, it is reasonable to expect that in the near future the industry will be receiving more attention and support from the Russian government than at any time in the past decade. This article analyses new developments in the transformation of the Russian defence industrial complex and focuses on the differences in results of defence enterprises' adjustment to the market across Russian regions. In conducting this analysis our main goal was to answer the following questions: (1) to what extent have Russian defence enterprises benefited from the general economic recovery in Russia since the 1998 financial crisis? (2) what are the main differences in the economic and social situation of defence enterprises based in different regions? and (3) what explains the better economic performance of defence enterprises in 'the centre', defined here as the city of Moscow, the Moscow region and the city of St Petersburg, than in the provinces? Regional differences in the performance of defence enterprises were one of the traditionally under-researched areas of studies of the Soviet and later Russian military-industrial complex.' Prior to the break-up of the USSR the main obstacle to such investigations was secrecy. Later, with partial privatisation of the defence sector

Business · Defence industry · Defense industry · Devaluation · Economic policy · Economics · Economy · Government (linguistics · International trade · Market economy · Political science · Restructuring · Shock (circulatory · Terrorism · Defense, Military, and Policy Studies · Law · Post-Communist Economic and Political Transition · Russia and Soviet political economy · Finance

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  • Privatisation, decentralisation and production adjustment in the Russian defence industry

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  • Reform Strategies and Economic Performance of Russia's Regions

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  • The Price of the past

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  • Kremlin Capitalism

    Simon Clarke, Joseph R Blasi et al.•British Journal of Sociology•1998

Citations per year0.13
Citation span2018 - 2018 (1)
Highly citedNo

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