National Interests: Priorities and Security
 

Assessing the effectiveness of the active military and economic potential of the USA and Russia in the 21st century. Part I

Vol. 14, Iss. 4, APRIL 2018

Received: 11 January 2018

Received in revised form: 31 January 2018

Accepted: 18 February 2018

Available online: 14 April 2018

Subject Heading: Priorities of Russia

JEL Classification: E60

Pages: 592–615

https://doi.org/10.24891/ni.14.4.592

Gladyshevskii V.L. 46th Research Institute of Ministry of Defense of Russian Federation, Moscow, Russian Federation
vl-gladish@yandex.ru

ORCID id: not available

Gorgola E.V. 46th Research Institute of Ministry of Defense of Russian Federation, Moscow, Russian Federation
evg-gorgola@ yandex.ru

ORCID id: not available

Zvyagintsev S.A. 46th Research Institute of Ministry of Defense of Russian Federation, Moscow, Russian Federation
zvyagintcev_serg@mail.ru

ORCID id: not available

Importance In the 20th century, the most advanced countries have developed the military economy. Such military-industrial complexes became almost a fundamental part of national economies. In some economies, such complexes virtually ensure the national security.
Objectives The research examines the evolution, principal traits and operational specifics of the U.S. and Russian military-industrial complexes. We also analyze sources of their military-technological and military-economic advancement in comparison with other countries.
Methods The article presents a political-economic approach and uses a methodological framework for contemporary institutionalism and military-economic analysis.
Results We debunk institutionalists' conclusions on growing transactions costs as the centralization strengthens in industrial production management in the country. Stringent regulation, ongoing control over budgetary financing boost a surge in military production, especially during austerity measures and crisis phenomena. Being influenced by military business supporters, the USA has to adhere to a flamboyant military policy. The U.S. military lobby is prepared for a cold war against Russia, unfolding an armament race, exhausting Russia economically and reindustrializing its own economy relying on the military-industrial complex.
Conclusions Demonstrating much higher efficiency than the U.S. military-industrial complex and lacking the finance of the U.S. military monopolies, the Russian one must tighten the coordination, manageability, consistency, reduce costs as much as possible, increase labor productivity and implement the domestic production quality system, which would be actively supported by the State and its resources.

Keywords: military production, military business, military industrial complex, military-economic effectiveness, military-technical advantage

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