The Transformation of Ownership Relations in Defense Industries Privatization of defense industry enterprises

>p>The common goals and tasks of state privatization programs have not taken into account the peculiarities of defense industry (DI) enterprises even though they comprise a considerable part of the country's scientific, industrial, and manpower potential. DI enterprises also produce a large relative share of high-tech and technically sophisticated civilian products and non-food consumer goods. In 1994 the defense complex accounted for 80 percent of the nation's total production of these products. The privatization of DI enterprises has therefore pursued the goal not only of preserving but also of further improving their scientific-technical and manpower potential. The principal tasks of privatization in this sphere include:>/p>>p>âthe minimization of the cost of producing and developing arms and military equipment with due regard to the demands of military doctrine and of ensuring Russia's defensive capability on this basis;>/p>>p>âthe creation of an optimal structure of production in the DI corresponding to market conditions;>/p>>p>âthe maximally effective use of the DI's manpower, scientific-technical, and production potential to stabilize the socioeconomic situation in the nation in the shortest possible time.>/p>