The Defence Industry in East-Central Europe: Restructuring and Conversion

In 1989-90 the collapse of state socialism and the end of the cold war meant dramatic changes for the defence industries of Central and Eastern Europe. Initially it seemed that resources previously devoted to the cold war confrontation might become available for investment in non-military economic and social progress. However, by 1994 initial optimism had given way to a recognition that the restructuring of the defence industry would involve significant costs and could not be accomplished quickly.

This book charts the development of the industries of the former Czechoslovakia and its successor states—the Czech Republic and Slovakia; Poland and Hungary. In the first part of the book country case studies underline the different approaches to reform adopted in the different countries. In the second part of the book unique information derived from extensive interviews at enterprises in each of the four countries is used to examine the transformation of industry from a producer perspective.

Three of the countries whose defence industries are examined in this book—the Czech Republic, Poland and Hungary—are likely to be informed shortly that the North Atlantic Treaty Organization (NATO) is favourably disposed to consider their application for membership. Detailed discussions about accession will then open between NATO and these countries. One element of these discussions will be a consideration of how the defence industries of the prospective new members can be fitted into the overall alliance defence effort.