Economic Problems of Stability in the Transition Period to a New Political and Economic System in "International Stability in a Multipolar World: Issues and Models for Analysis

The stability risks associated with the transition from planned to market economies in the countries of the FSU are the subject of the contribution. There are severe problems of conversion for the oversized military establishment and its related industries. Their solution demands significant financial resources which may only be generated from the sale of weapons and of military and dual use technology. At the same time, the competition on the world s weapon markets tends to reduce the revenue from sales, calling for even more weapons to de sold and, accelerating arms proliferation to regions with high conflict potential. Thus, for the transition period it is recommended a limited and controlled conversion and the establishment of protected weapon markets for the FSU under international supervision. To this end, new organizational forms of international cooperation must be developed.