Defence conversion: surviving (and prospering) in the 1990s

The fall of the Iron Curtain ushered in a new era of peace as the Cold War came to a close. However, to defence industry companies, this “peace dividend” has translated into vast reductions in military spending, presenting a challenge to their very survival. Aware of the failed attempts at defence conversion following the Second World War and the Korean and Vietnam Wars, firms are taking a more intelligent approach to conversion, utilizing a variety of strategies based on their relative strengths and weaknesses. Some are divesting, while others are in an acquisition mode, and still others are seeking to exploit their core technologies in the commercial marketplace. And, in a twist of fate unthinkable ten years ago, Russia has become a major partner in the defence conversion process.