A useful anticipation of defense economics must rest upon the dramatic, con
tinuing, and confusing upheaval in the functions of military forces in the
world of the coming century. This essay tries to reflect the staggering arr
ay of new features which impact on the provision of national defense and in
ternational security; as these profoundly shape the discipline of "defense
economics," they will elevate in importance the social, cultural, developme
ntal, and legal interactions between economics and defense so that the subj
ect will fit far more comfortably into the realm of political economy than
it did when it originated decades ago. With this perspective in mind, this
introduction is focused on categories defining;the core of "defense economi
cs" in the coming decades.