Accession Number:

ADA429496

Title:

Issue Paper: From Anarchy to Order in Russian Military R&D?

Descriptive Note:

Issue paper

Corporate Author:

RAND ARROYO CENTER SANTA MONICA CA

Personal Author(s):

Report Date:

1994-06-01

Pagination or Media Count:

6.0

Abstract:

The collapse of the Soviet Union, along with the subsequent political, economic, and bureaucratic reforms in Russia and the other successor states, has ushered in a new era for Russian weapons development and acquisition. No longer insulated from the hardships afflicting the rest of society, Russias military-industrial complex VPK now finds itself dramatically short of resources, clout, and leadership. The percentage of Russian GNP allocated for military spending dropped from 8.5 percent in 1989 to 5.0 percent at the end of 1993, as measured in constant 1991 prices. State orders for weaponry currently constitute only 20 percent of the already diminished military budget, employing only 10 to 15 percent of Russias estimated defense-industrial capacity. Rising rates of inflation and taxation threaten to negate the real effects of planned increases in the defense budget for 1994 and will add to the 400-550 billion ruble debt outstanding by the end of 1993 owed to Russian defense enterprises for goods and services previously delivered to the military. Moreover, upon assuming the mantle of leadership, the Yeltsin government quickly eliminated the powerful central bureaucracy that secured the VPK its privileged status and access to scarce resources in the former Soviet-administered system. This decapitation has caused unprecedented administrative uncertainty, including the disruption of critical supply and organizational relations among elements of the VPK.

Subject Categories:

  • Administration and Management
  • Economics and Cost Analysis
  • Military Forces and Organizations

Distribution Statement:

APPROVED FOR PUBLIC RELEASE