Disarmament and Defence Industrial Adjustment in South Africa

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ISBN: 9780198294139 | 0198294131
Cover: Hardcover
Copyright: 8/13/1998

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Peter Batchelor and Susan Willett analyze the response of the South African defense industry to drastic cuts in military expenditure and the demilitarization of society brought about by the end of the Cold War, the collapse of Apartheid, and the stabilization of the regional security situation.

Preface

(1)

Acknowledgements

(2)

Acronyms and abbreviations

xii

1. Introduction: militarization, disarmament and demilitarization

(23)

I. Methodology

(4)

II. The economic effects of military expenditure and defence industrialization

(10)

III. A new security agenda

Table 1.1 The evolution of the South African arms industry

2. Militarization and the development of the arms industry

(25)

I. Introduction

(1)

II. The origins and development of the arms industry

(11)

III. Self-sufficiency

(1)

IV. The size and structure of the domestic arms industry

(4)

V. The economic significance of the domestic arms industry

(8)

VI. Conclusions

Table 2.1. Military expenditure and arms production, 1961-89

Table 2.2. The distribution of military expenditure by function, 1961-89

Table 2.3. Military industrialization: stages of development

Table 2.4. Arms production in the national economy, 1961-89

Table 2.5. The structure of Armscor, 1989

Table 2.6. Armscor assets and employment, 1968-89

Table 2.7. The top industrial companies, 1989

Table 2.8. Private-sector defence contractors, 1984

Table 2.9. Arms industry employment, 1961-89

Table 2.10. Arms imports, 1970-89

Table 2.11. Arms exports, 1982-89

Table 2.12. The trade balance in armaments, 1982-89

Table 2.13. Military research and development expenditure, 1977-89

Table 2.14. Patenting activity. 1977-89

3. The changing strategic, political and economic environment, 1989-94

(18)

I. Introduction

(1)

II. The changing strategic environment

(4)

III. The changing political environment

(9)

IV. The changing economic environment

(4)

V. Conclusions

Table 3.1. Major economic indicators, 1989-94

Table 3.2. Public finance, 1989-94

4. Defence cuts and disarmament measures, 1989-94

(17)

I. Introduction

(1)

II. Defence cuts

(2)

III. Disarmament measures

(3)

IV. The economic impact

(8)

V. Defence cuts, arms production and the manufacturing sector

(3)

VI. Conclusions

Table 4.1. Military expenditure, 1989-94

Table 4.2. The distribution of military expenditure by main programmes, 1989-94

Table 4.3. The distribution of military expenditure by function, 1989-94

Table 4.4. Domestic arms production, 1989-94

Table 4.5. Military research and development expenditure, 1989-94

Table 4.6. Arms industry employment, 1989-94

Table 4.7. Armscor and Denel: distribution of job losses, 1989-92

Table 4.8. Armscor: regional distribution of job losses, 1989-92

Table 4.9. Regional economic indicators, 1993

Table 4.10. Government expenditure by selected functions, 1989-94

Table 4.11. The South African arms, trade, 1989-94

Table 4.12. Trends in arms production and total manufacturing output, 1989-94

Table 4.13. Sales in the electronics sector, 1989-92

5. Defence industrial adjustment, 1989-94

(29)

I. Introduction

(1)

II. Defence industrial adjustment in the public-sector arms industry

(17)

III. Defence industrial adjustment in the private-sector arms industry

101

(11)

IV. Conclusions

112

Table 5.1. Armscor procurement expenditure, 1990-94

Table 5.2. The South African arms trade, 1989-94

Table 5.3. Denel: vulnerability to defence cuts, 1992

Table 5.4. Denel arms exports, 1992-93

Table 5.5. Denel: turnover, by source, 1992-93

Table 5.6. Denel groups: defence share in turnover, 1992-93

Table 5.7. Structure of the private-sector arms industry, 1993

102

Table 5.8. Sources of supply for domestic arms procurement, 1992-93

109

6. The changing security environment after 1994

113

(28)

I. Introduction

113

(3)

II. Recasting the security agenda

116

(4)

III. Regional security cooperation

120

(4)

IV. Peacekeeping

124

(1)

V. Arms sales policies

125

(6)

VI. Strategic doctrine

131

(4)

VII. The military backlash

135

(2)

VIII. Implications for the arms industry

137

(2)

IX. A historic compromise

139

Table 6.1. Military expenditure and armed forces in Southern Africa, 1996

123

7. Defence industrial adjustment after 1994

141

(26)

I. Introduction

141

(1)

II. Political and institutional changes in the defence establishment

142

(2)

III. Defence policy and government policy on the arms industry

144

(2)

IV. Arms trade policy and the arms industry

146

(4)

V. Defence budget trends since 1994

150

(4)

VI. Defence industrial adjustment since 1994

154

(12)

VII. Conclusions

166

Table 7.1. Military expenditure, 1989-95

150

Table 7.2. The distribution of military expenditure by function, 1989-95

151

Table 7.3. Military research and development expenditure, 1989-95

152

Table 7.4. Major current procurement projects, 1995

153

Table 7.5. Denel exports, 1992-95

157

Table 7.6. Denel: international joint ventures, 1996

158

Table 7.7. Denel: composition of turnover, 1992-95

159

Table 7.8. Denel: financial performance, 1992-95

160

Table 7.9. Denel and private-sector defence firms: financial performance, 1995

160

Table 7.10. Arms sales and exports, 1992-95

161

Table 7.11. Private-sector international joint ventures, 1996

162

Table 7.12. The South African arms trade, 1989-95

163

Table 7.13. Arms industry employment, 1989-95

164

Table 7.14. The structure of the defence market, 1992-95

165

Table 7.15. The structure of domestic arms procurement, 1992-95

166

Figure 7.1. Department of Defence: organizational structure, 1995

143

8. Strategies for conversion at the national level

167

(24)

I. Introduction

167

(1)

II. The costs of disarmament

167

(3)

III. The peace dividend

170

(1)

IV. Conversion

171

(15)

V. Refocusing R & D

186

(3)

VI. Conclusions

189

Table 8.1. Denel: diversification and conversion efforts

178

Figure 8.1. The costs of disarmament

169

Figure 8.2. Prospects for conversion

179

9. Summary and conclusions

191

(16)

I. Summary

191

(5)

II. Defence industrial policy issues

196

(9)

III. Concluding remarks

205

(2)

Appendix 1. SADF rationalization and restructuring measures

207

(2)

Appendix 2. Armscor organizational structure, 1992-93

209

(1)

Appendix 3. Denel organizational structure and diversification, 1992-93

210

(7)

Appendix 4. Background statistics

217

(6)

Select bibliography

223

(12)

Index

235

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Disarmament and Defence Industrial Adjustment in South Africa

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