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

Gladyshevskii V.L. 46th Research Institute of Ministry of Defense of Russian Federation, Moscow, Russian Federation

ORCID id: not available

Gorgola E.V. 46th Research Institute of Ministry of Defense of Russian Federation, Moscow, Russian Federation

ORCID id: not available

Zvyagintsev S.A. 46th Research Institute of Ministry of Defense of Russian Federation, Moscow, Russian Federation

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


  1. Korolev V. [The military-industrial complex of Russia: Regulatory issues]. Problemy teorii i praktiki upravleniya = Theoretical and Practical Aspects of Management, 1999, no. 4, pp. 42–47. (In Russ.)
  2. Dyatlov S., Selishcheva T. [Military-industrial complex as the basis for innovative economy]. Vestnik Omskogo universiteta. Ser. Ekonomika = Herald of Omsk University. Series Economics, 2009, no. 4, pp. 6–20. URL: Link (In Russ.)
  3. Kudashkin V.V. Eksport produktsii voennogo naznacheniya. Pravovoe regulirovanie [Export of military products. Legal regulation]. Moscow, Spark Publ., 2000, 340 p.
  4. Burenok V.M., Gorgola E.V., Vikulov S.F. Natsional'naya bezopasnost' Rossii v epokhu setevykh voin: monografiya [Russia's national security in the era of network wars: a monograph]. Moscow, Granitsa Publ., 2014, p. 51.
  5. Astakhov A.A. Finansovyi mekhanizm reformirovaniya oboronnoi promyshlennosti Rossii [The financial mechanism for reforming the defense industry of Russia]. Moscow, MTsFER Publ., 2002, 238 p.
  6. Vikulov S.F., Mkrtchyan S.S. et al. Amerikanskii militarism v ХХI veke: bor'ba za global'noe liderstvo: monografiya [The U.S. militarism in the 21st century: Fighting for global leadership: a monograph]. Moscow, EKО PLANET Publ., 2015, 432 p.
  7. Gorgola E.V. Ekonomika, nauchno-tekhnicheskii progress i voina: rezul'taty globalizatsii vzaimosvyazei: monografiya [Economy, S&T progress and war: Results of globalized ties: a monograph]. Moscow, MOIUP Publ., Kantsler Publ., 2015, 320 p.
  8. Tishchenko G.G. Povyshenie ekonomicheskoi effektivnosti voennogo stroitel'stva v SShA [Increasing the economic efficiency of military construction in the USA]. Moscow, RISI Publ., 2004, 397 p.
  9. Faramazyan R.A., Borisov V.V. Transformatsiya voennoi ekonomiki: XX – nachalo XXI veka [Transformation of the war economy: the 20th – early 21st centuries]. Moscow, Nauka Publ., 2006, 343 p.
  10. Fedorovich V.А., Muravnik V.B., Bochkarev О.I. SShA: voennaya ekonomika [USA: military economy]. Moscow, Mezhdunarodnye otnosheniya Publ., 2013, 616 p.
  11. Khrustalev Е.Yu. Ekonomicheskie problemy voennoi bezopasnosti [Economic problems of military security]. Moscow, Nauka Publ., 2005, 427 p.
  12. Ekonomika voennogo stroitel'stva: novaya paradigma [Economy of military construction: A new paradigm]. Yaroslavl, Litera Publ., 2008, 413 p.
  13. Yakovets Yu.V. Globalizatsiya i vzaimodeistvie tsivilizatsii [Globalization and interaction of civilizations]. Moscow, Ekonomika Publ., 2001, pp. 153–154.
  14. Gansler J.S. Democracy's Arsenal: Creating a Twenty First Century Defense Industry. Boston, Massachusetts, MIT Press, 2011, 432 p.
  15. Hartley K. Defense Economics: Its Contribution and New Developments. Department of Politics and Economics, Royal Military College of Canada, 2003, 247 p.
  16. Hitch C., McKean R. The Economics of Defense in the Nuclear Age. Harvard University Press, 1960, 422 p.
  17. Melman S. After Capitalism: From Managerialism to Workplace Democracy. Alfred A. Knopf, 2001, 527 p.

View all articles of issue


ISSN 2311-875X (Online)
ISSN 2073-2872 (Print)

Journal current issue

Vol. 14, Iss. 12
December 2018