CONVERSION AND PERSONNEL IN THE RUSSIAN MILITARY-INDUSTRIAL-COMPLEX

The experience of Russia in the field of conversion indicates that it is a costly process, because large expenditures are needed to compensa te the enterprises for the losses produced by decreases in defence pro duction and by the maintenance of average wages and salaries, without efficient production. Many large-scale military conversion projects ar e difficult without the import of equipment and the participation of f oreign capital. Because the MIC is involved in the national industry, the general characteristics of Russian workers reduce or improve the c ompetitiveness of the Russian economy. But the military-industrial com plex, which is not very involved in the development of infrastructure and of service sector, developed its own specific demand and its own p eculiar supply network. Therefore, the potential of Russia's human res ources cannot be realised without active co-operation on a mutually pr ofitable basis with firms and corporations of other countries.