Demobilization from the Cold War 1990-1998: Lessons of U.S. Conversion Policy

This report examines the size, composition and effectiveness of conversion and transition assistance programs in the United States from 1990 to 1998. The programs are evaluated within the context of the unfolding and shifting debate about the appropriateness of public sector initiatives to reinvest defense savings in other public objectives, to promote, where possible, the conversion of defense resources and facilities to relevant civilian applications, and to minimize the social and economic dislocation of defense downsizing. In addition this study will examine how the debate over post-Cold War national security requirements has raised questions about the extent to which production lines should be kept running either through domestic procurement or arms exports to maintain the defense industrial base, especially so-called "defense unique" capabilities such as those dedicated to submarine, aircraft or tank production.The extent of defense budget reductions and the manner in which defense savings are used for other public purposes are key determinants of the scope and impact of the broadbased conversion of the United States defense economy. Thus, we turn to examine the size of defense cuts since the end of the Cold War and then analyze how these savings often termed the peace dividend-have been used.