Abstract
Research background: The completion of the ideological confrontation of socio-economic systems that occurred in the early 90s of XX century after the collapse of the USSR did not radically affect the development of the global defense industrial complex (DIC). Taking into account the place and role of national DICs in the economies of the world’s leading powers, we can only talk about the modification of their development in the new historical conditions. The defense industry complex in Russia, as before in the USSR, is one of the priority areas of the country’s development. Purpose of the article: The aim of the article was to study the current state of the Russian DIC, to analyse problems, limitations and prospects for its development. The hypothesis was put forward that the condition of the Russian DIC is currently determined by the whole complex of factors, both internal and external, and therefore the solution of these problems should also be comprehensive. Methods: The study was based on statistical analysis of information from both official databases (SIPRI, World Bank, Federal Government Statistics Service) and other open sources. Findings & Value added: The analysis showed that all corporations of the Russian DIC have positive dynamics in the value of their assets and generally demonstrate good financial stability under difficult external and internal economic and political conditions. At the same time, a number of problems requiring prompt resolution pose a threat to the successful development of the Russian defense industry in the near and distant future. The scientific value of research is determined by the comprehensive approach itself.
Highlights
The collapse of the USSR in 1990s put an end to the ideological confrontation between the two social and economic systems
Financial stability and stable development of Russia's defense industrial complex (DIC) is directly linked to Defense Procurement and Acquisition
Implementation of Armaments 2020 priority procurement program led to the rapid growth of both State Defence Order (SDO) and defense budget of the Russian Federation
Summary
The collapse of the USSR in 1990s put an end to the ideological confrontation between the two social and economic systems. The end of Cold War raised hopes for disarmament, military spending cut, economy restructure and redirection of spending from the military to the civilian sector. The global confrontation between the two systems, two military blocs (NATO and the Warsaw Pact) has been replaced by numerous regional military conflicts around the world, requiring more and more modern weapons to support them. The ideology took a back seat, economic aspects of the conflict between the superpowers, which, in our opinion, indirectly reflects competition for limited resource, has not made the competition less fierce or less global. Every world power must develop, strengthen, and modernize its military production regardless of the impact (positive, negative or indefinite) military expenditures may have on the economic development [1,2,3]
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