SALW Production- Case of Central and Eastern Europe Consequences of Armed Violence SALW Production- Case of Central and Eastern Europe Assoc. Prof. Dr Dimitar Dimitrov Department “National and Regional Security”, UNWE COST Action A25, Final Conference on Armed Violence, 17-19 March, Brussels

over-capacity of the defence industries Consequences of Armed Violence Many efforts to improve arms export control - the results are not always satisfactory Number of social and economic factors that create conditions favourable to the illicit trade over-capacity of the defence industries COST Action A25, Final Conference on Armed Violence, 17-19 March, Brussels

Consequences of Armed Violence The restriction of SALW exports to countries of concern and the economic viability of production companies should not be seen as opposing alternatives Further reduction of industry using purely administrative or legal measures may not bring positive results COST Action A25, Final Conference on Armed Violence, 17-19 March, Brussels

Consequences of Armed Violence My thesis - real need for restructuring of defence industries. Such measures are not in the priorities of national governments and EU. No measures for imposing stricter SALW export controls would be successful without taking full account of the overall effect of the defence industrial restructuring. Thus, export control and restructuring policies need to be coordinated. COST Action A25, Final Conference on Armed Violence, 17-19 March, Brussels

Consequences of Armed Violence Short overview of defence industrial transformation in selected CEECs Bulgaria Lagging restructuring and modernization, Increasing technological backwardness, Over-dependence on the traditional markets (i.e. Africa, Middle East) Influence of transition associated problems on the overall economic development COST Action A25, Final Conference on Armed Violence, 17-19 March, Brussels

Consequences of Armed Violence the Czech Republic Important advances in regulating its foreign trade in military equipment and non-military weapons. Provisions regulating ‘handling’ activities of military equipment by Czech dealers outside the territory of the Czech Republic COST Action A25, Final Conference on Armed Violence, 17-19 March, Brussels

Consequences of Armed Violence Romania Efforts to support and promote closer co-operation with international and regional organisations Steps to strengthen the national mechanisms for controlling the export and import of strategic goods. The government introduced steps to radically restructure the defence industry after 2001 The collapse of both the domestic and foreign markets in the 1990s resulted in a corresponding dramatic reduction in the size of Romania’s defence industry. COST Action A25, Final Conference on Armed Violence, 17-19 March, Brussels

Consequences of Armed Violence General characteristics of the transformation in CEECs General crisis of the defence-related sector; Most firms drastically reduced their scope of activity, output, and exports. The small arms and light weapons production base of Eastern, Central, and Southeast Europe declined dramatically (Kiss,2004); Most small arms and light weapons producers of the region are defined by meagre prospects and a limited ability to restructure; COST Action A25, Final Conference on Armed Violence, 17-19 March, Brussels

Consequences of Armed Violence General characteristics of the transformation in CEECs –Cont. The impact of NATO accession and membership on the region’s defence industry was double-edged. Privatization programmes are underway elsewhere in the region; One of the main obstacles - relatively big role played by social facilities in defence enterprises. COST Action A25, Final Conference on Armed Violence, 17-19 March, Brussels

Consequences of Armed Violence Government policies State regulations related to the arms trade, but not limited only to arms control and trade licenses. No special attitude toward SALW. The exceptions are in the programs of disposal of surplus weapons, but often without sufficient resources and real actions. Domestic SALW and ammunitions have some advantages on their internal market, thus providing more power to producers to survive. COST Action A25, Final Conference on Armed Violence, 17-19 March, Brussels

Consequences of Armed Violence International efforts A number of international and regional agreements. Special attention to the EU Strategy to combat illicit accumulation and trafficking of SALW and their ammunition (December 2005). Has to be supplemented by preventive action which will tackle illegal supply and demand as well as controls on exports of conventional weapons. COST Action A25, Final Conference on Armed Violence, 17-19 March, Brussels

Consequences of Armed Violence Conclusions Further cutbacks in defence production. Increased costs in social assistance allowances, and benefits and retraining for the unemployed. Decrease of tax revenues and municipal budget revenues. Growth of company liabilities to suppliers, banks, the state budget, social security funds, etc. The problem with the Europeanization of the CEEC’s defence producers cannot be avoided any longer. Increased export control must be combined with concrete actions aimed at company restructuring both on the part of the state and the producers, which in many cases is not possible without international help. Preserved big production capacities and big surpluses create preconditions for export. COST Action A25, Final Conference on Armed Violence, 17-19 March, Brussels

Recommendations Consequences of Armed Violence Prioritize procurement contracts that include offset agreements involving SALW producers. participation in transnational co-operation in defence production within the EU as well as with other developed countries or international companies. Create incentives for the shift from SALW mass production towards civilian output, Develop alternative employment programs for workers laid off by large SALW producing companies, COST Action A25, Final Conference on Armed Violence, 17-19 March, Brussels

Recommendations –Cont. Consequences of Armed Violence Recommendations –Cont. Set up government-supported programs for production restructuring and reorientation from SALW to modern arms systems and equipment. Purposeful measures, directed toward concrete production sites and research institutes. Special programs at European level, providing fast solution of the surplus SALW at least in European countries Increase research and development (R&D) spending, particularly in non-SALW areas. COST Action A25, Final Conference on Armed Violence, 17-19 March, Brussels

Thank you for your attention Consequences of Armed Violence COST Action A25, Final Conference on Armed Violence, 17-19 March, Brussels