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The Changing Military Industrial Complex

Author

Listed:
  • J Paul Dunne

    (University of the West of England and University of Cape Town)

  • Elisabeth Skons

    (Stockholm International Peace Research Institute)

Abstract

The first reference to a military industrial complex (MIC) was made by US President Eisenhower in 1961. He then referred to something historically specific: the build-up of a large permanent military establishment and a permanent arms industry, which raised his concerns for the unwarranted influence of these societal forces. Subsequently the meaning of the MIC evolved to refer to the vested interests within the state and industry in expanding the military sector and in increasing military spending, with external threats providing the justification. During the Cold War, when the defence was strongly focused on deterrence, this produced a set of specific state-industry relationships that in turn generated a beneficial environment for the development and strengthening of the MIC. With the end of the Cold War, the conditions for a strong MIC were less favourable, at least initially, with changes in the international security environment, cuts in military spending and arms production, and ensuing privatisation, commercialisation, and internationalisation of military activities as well as of arms production. This paper discusses how the MIC has been affected by these changes and the degree to which there has been continuity of old power structures and a continuing MIC.

Suggested Citation

  • J Paul Dunne & Elisabeth Skons, 2011. "The Changing Military Industrial Complex," Working Papers 1104, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    • Handle: RePEc:uwe:wpaper:1104
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    File URL: http://carecon.org.uk/DPs/1104.pdf
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    References listed on IDEAS

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    1. James M. Cypher, 2008. "Economic Consequences of Armaments Production: Institutional Perspectives of J.K. Galbraith and T.B. Veblen," Journal of Economic Issues, Taylor & Francis Journals, vol. 42(1), pages 37-49, March.
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    3. Ron Smith, 2009. "Power and Money," Palgrave Macmillan Books, in: Military Economics, chapter 2, pages 19-53, Palgrave Macmillan.
    4. Smith, Ron & Dunne, Paul, 1994. "Is Military Spending a Burden? A 'Marxo-Marginalist': Response," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 18(5), pages 515-521, October.
    5. Sandler,Todd & Hartley,Keith, 1995. "The Economics of Defense," Cambridge Books, Cambridge University Press, number 9780521447287, November.
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    Cited by:

    1. Ünal Töngür & Adem Yavuz Elveren, 2017. "The nexus of economic growth, military expenditures, and income inequality," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(4), pages 1821-1842, July.
    2. Gurdgiev, Constantin & Henrichsen, Aaron & Mulhair, Andrew, 2022. "The budgets of wars: Analysis of the U.S. defense stocks in the Post-Cold War era," International Review of Economics & Finance, Elsevier, vol. 82(C), pages 335-346.
    3. Chiwei Su & Yingying Xu & Hsu Ling Chang & Oana-Ramona Lobont & Zhixin Liu, 2020. "Dynamic Causalities between Defense Expenditure and Economic Growth in China: Evidence from Rolling Granger Causality Test," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(5), pages 565-582, July.
    4. Aamir Aijaz Syed, 2021. "The Asymmetric Relationship Between Military Expenditure, Economic Growth and Industrial Productivity: An Empirical Analysis of India, China and Pakistan Via the NARDL Approach," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 13(1), pages 77-97, March.
    5. J Paul Dunne, 2011. "Military Keynesianism: An Assessment," Working Papers 1106, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.

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    More about this item

    Keywords

    MIC; Military industry; globalisation; security;
    All these keywords.

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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