The Defence Industry in East-Central Europe

This study charts the development of the defense industries of the Visegrad countries--Czechoslovakia and its successor states, the Czech Republic and Slovakia; Poland; and Hungary. In the first part, national case studies underline the different approaches to reform adopted in the individual countries. The second part uses unique information derived from extensive interviews at enterprises in each of the four countries to examine the transformation of industry from a producer perspective.

Preface

ix

(1)

Acknowledgements

x

(1)

Acronyms

xi

Part I. Introduction

3

(10)

1. The end of the cold war and the collapse of the traditional defence industry in East-Central Europe

3

(10)

I. Introduction

3

(3)

II. East-Central Europe in the aftermath of the cold war

6

(2)

III. The collapse of the defence industry

8

(1)

IV. Consolidation and partial resurrection

9

(4)

Part II. Case studies of defence industry restructuring in East-Central Europe: the Visegrad countries

13

(120)

2. The Czechoslovak Federation

13

(21)

I. The main characteristics of the defence industry

13

(5)

II. Crisis and conversion

18

(2)

III. Conversion

20

(10)

IV. The road to separation

30

(4)

3. The Czech Republic

34

(22)

I. The heritage of the breakup of the Czechoslovak Federation

34

(7)

II. Restructuring the defence industry

41

(15)

4. Slovakia

56

(21)

I. The heritage of the breakup of the Czechoslovak Federation

56

(4)

II. The policy on military production and export

60

(4)

III. Crisis and survival

64

(13)

5. Hungary

77

(28)

I. Introduction

77

(2)

II. The main structural features of the defence industry

79

(5)

III. Crisis

84

(4)

IV. The new policy on defence industry and arms exports

88

(6)

V. Defence enterprises: the history of disintegration

94

(8)

VI. Consolidation

102

(3)

6. Poland

105

(28)

I. Introduction: a pioneer country with problems

105

(8)

II. The new Polish policy on defence industry and exports

113

(10)

III. Examples of defence industry development

123

(10)

Part III. Defence enterprises in post-cold war East-Central Europe

133

(74)

7. The special features of defence enterprises

133

(10)

I. Introduction

133

(1)

II. State protection and special social status

134

(4)

III. Organizational features of defence enterprises

138

(2)

IV. Special safety features of defence enterprises

140

(1)

V. The international dimension of defence industry organization

141

(2)

8. The nature of the crisis in the traditional defence industry

143

(14)

I. Introduction

143

(5)

II. The identity crisis

148

(2)

III. Financial collapse

150

(3)

IV. The loss of markets

153

(2)

V. The structural and technological crisis

155

(2)

9. Strategies for crisis management and survival

157

(34)

I. Approaches to crisis management

157

(9)

II. Survival strategies

166

(4)

III. Results

170

(4)

IV. Conversion experiences

174

(17)

10. New features of the defence industry in East-Central Europe

191

(16)

I. Introduction

191

(1)

II. Internal changes at the enterprises

191

(3)

III. New social and economic status

194

(2)

IV. The new role of the state

196

(4)

V. New external links

200

(7)

Part IV. Conclusions

207

(16)

11. Conclusions

207

(16)

I. Introduction

207

(1)

II. Defence industry restructuring: alternative approaches

208

(6)

III. Defence industry transformation as a mirror of socio-economic change

214

(1)

IV. The revamped defence industry

215

(2)

V. Renewed defence industry as a vehicle of international economic integration

217

(2)

VI. The challenge of genuine conversion

219

(2)

VII. Future prospects

221

(2)

Index

223

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The Defence Industry in East-Central Europe Restructuring and Conversion

Summary

Table of Contents

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