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Canadian Defence Industry in the New Global Environment

Canadian Defence Industry in the New Global Environment

Copyright Date: 1995
Pages: 248
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  • Book Info
    Canadian Defence Industry in the New Global Environment
    Book Description:

    Alistair Edgar and David Haglund examine changes in the international demand for defence products in the post-Cold War era; review the reorganization and rationalization of the supply side of the international defence market through various government policy initiatives and corporate strategies; and discuss the ways in which the Canadian government and defence producers have attempted to cope with this new and uncertain international environment. They also explore the international and domestic contexts - military, economic, and political - within which defence industries operate.

    eISBN: 978-0-7735-6521-0
    Subjects: History
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Table of Contents

Export Selected Citations
  1. Front Matter (pp. i-iv)
  2. Table of Contents (pp. v-vi)
  3. Tables (pp. vii-viii)
  4. Acronyms (pp. ix-xii)
  5. Preface (pp. xiii-xvi)
    Alistair D. Edgar and David G. Haglund
    • CHAPTER ONE The International Security Structure and the Demand for Defence (pp. 3-18)

      The signing of the Intermediate-Range Nuclear Forces (INF) Treaty on 8 December 1987 by Presidents Ronald Reagan and Mikhail Gorbachev in Washington marked a watershed in East-West relations. For the first time, the two superpowers agreed to the elimination, under the terms of the treaty, of an entire category of weapons from their respective nuclear arsenals. The INF agreement, ratified in Moscow in May 1988, gave a clear and highly visible signal of a more positive and cooperative u.s.-Soviet relationship.¹

      The following year, the pace of change in the external relations of the Soviet Union gathered speed in a manner...

    • CHAPTER TWO The Evolution of Transatlantic Defence Economic Relations (pp. 19-41)

      Changes in the international demand for defence, however momentous they are likely to be, have only slowly begun to take clearer form, as the case of the NATO strategy review shows. As with the international economy, so too with the international (or at least Western) defence industrial base:evolutionrather than rapid transformation seems to be the guiding principle - a somewhat paradoxical one, given the truly revolutionary transformation that has occurred in the field of international security from the period of the Cold War to the present. While the end of bipolar conflict has further sharpened those stresses previously...

    • CHAPTER THREE Corporate Strategies and Responses in a Changing International Defence Market (pp. 42-58)

      Our analysis of the Western Allies’ policies and initiatives directed at both the demand and the supply sides of their defence economic relations leads naturally to a consideration of changes and trends within the defence market itself. What are the immediate responses and medium- to long-term strategies of companies involved in defence-related business? To what extent can corporate leadership resolve the dilemmas with which national governments and intergovernmental organizations have been grappling? Can the private sector -either within Europe (for example, through the IKPG’S efforts) or on a transatlantic basis, achieve some rational response to the challenge posed by the...

    • CHAPTER FOUR The Defence Industrial Base: Domestic Policy Context and Industry Review (pp. 61-80)

      Directly or indirectly, changes in the international economic and security environment, governmental policy initiatives related to defence economic relations, and corporate responses to both of the above have a powerful and unavoidable impact on the export-oriented Canadian defence industry. But government policies pertaining to that industry are no less affected by external variables. Over the past four years since the outbreak of the Persian Gulf crisis and the rapid conclusion of the war that followed, the impact of these factors has been highlighted by a series of parliamentary debates over Canadian export policy regarding defence products, following the approval of...

    • CHAPTER FIVE Defence Production: Changing Markets and Economic Viability (pp. 81-103)

      If it is deemed advisable that a technologically advanced defence production capability be retained in Canada, beyond the confines of some form of limited, state-owned arsenal, then it follows that the defence industry must also be commercially viable. For this, three essential conditions must be met. First, Canadian-based manufacturers must maintain, and perhaps even expand, their access to the larger U.S. defence market. Second, in order to cushion their business against fluctuations or adverse trends in that market, other international purchasers must be cultivated. Finally, to provide business incentives within the domestic defence industrial base and increase imports from the...

    • CHAPTER SIX Defence Industrial Darwinism? Industry and the Dynamics of Adjustment (pp. 104-116)

      The period from the late 1980S to the mid-1990S will prove to be a decisive one for the economic viability of Canadian defence production. Momentous changes in the international security structure have had significant consequences for the demand for defence, lessening the public’s willingness to pay for investments in national security, at least of the traditional military variety. At the same time, juxtaposed with trends in the international economy, changes in supply-side factors in the international defence market have transformed defence economic policy and industrial base issues into politically contentious subjects both between and within the member states of the...

    • CHAPTER SEVEN The Dilemmas of Policy in the 1990s (pp. 117-136)

      In one of the regrettably few academic discussions of federal government policies affecting the defence and aerospace industries, Jeanne Kirk Laux argues that the government faces a dilemma or “paradox” in its attempts to design and implement policies to support a competitive domestic defence industry. Acceptance of neo-liberal ideology and the signing of trade agreements such as the GATT have devalued the traditional methods of preserving and encouraging this industry through protectionism, procurement, and public ownership. Laux suggests, however, that “permanent state interests place limits to liberalism in a competitive global economy” as “governments are finding functional equivalents for the...

    • CHAPTER EIGHT What Kind of Defence Industry for Canada? (pp. 139-146)

      Beyond the issues of the efficiency of bilateral and multilateral project management and oversight arrangements, and the relative merits of domestic security and economic benefits considerations for continuing such initiatives, there is another, more fundamental policy debate - one with implications for the entire domestic defence industry - involving not only the composition and structure of the defence industrial base but also the very necessity for it. At its most dramatic level, this debate pits those who believe that Canada must, for a variety of reasons, retain a broadly based, economically viable, and technologically advanced industry capable of supporting its...

  9. Appendix (pp. 147-158)
  10. Notes (pp. 159-198)
  11. Bibliography (pp. 199-224)
  12. Index (pp. 225-229)