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Arming the Future: A Defense Industry for the 21st Century

Ann R. Markusen and Sean S. Costigan (eds.)

Council on Foreign Relations

1999

 

Foreword

 

The victory of the United States and its allies in the Cold War was also a triumph for the American defense industry. Its designs, weapons, platforms, and guidance systems outperformed those of its adversaries. Buyers worldwide have acknowledged the quality of American weapons: In the decade since the collapse of the Berlin Wall, the U.S. share of world arms exports rose from 30 percent to 45 percent.

Yet the end of the superpower rivalry presents a number of questions and challenges for the defense industry and its Pentagon overseers. Although defense spending has fallen in real terms, have Americans reaped the full “peace dividend” that was promised to them? Can the U.S. defense industry preserve its technological lead in an era of budget constraints and corporate restructuring? Should Washington liberalize arms exports as a way of maintaining the viability of military industrial firms? Would transnational mergers help reduce excess capacity? What defense industry restructuring decisions are likely to enhance (or hinder) U.S. competitiveness in the nonmilitary arena? More broadly, as the threats to international stability are vague and evolving, what level of international arms expenditure will best sustain a secure peace in the international system?

Ann Markusen and Sean Costigan have assembled expert authors to explain why the 1990s have been a watershed for the arms trade and offer prescriptions for achieving a rational and efficient U.S. defense industry. Almost universally, the authors favor a more competitive and diversified, dual-use industry. But they do not make the mistake of treating this business like any other: They make the case for strong conventional arms export controls and for cooperation with U.S. allies on issues of military industrial restructuring and security arrangements.

Policymakers cannot afford to stand idle as the defense industry and market forces determine global supply and demand for the instruments of warfare. This book has already helped to hone Pentagon policy and should considerably sharpen the debate over the future defense industrial base.

Lawrence J. Korb
Maurice R. Greenberg Chair, Director of Studies
Council on Foreign Relations