The military industry has traditionally been of great importance for the entire Russian economy, serving as a kind of catalyst for development for entire regions. The production of weapons and special means for state power structures has always been given special importance. Modern Russian economists also believe that in the country's political life the defense complex occupies an important place, providing significant influence to those who control the distribution of financial flows directed to the needs of the army.
What is the role of the military-industrial complex in the Russian economy?
The geography of distribution of defense industry enterprises is extremely wide - from Kaliningrad in the west of the country to ports in the Pacific Ocean. There are several obvious reasons for such vast geography. Having understood what the role of the military-industrial complex in the Russian economy is, the answer (in geography) can be formulated as follows.
Firstly, many enterprises have historically gravitated towards deposits of certain minerals. This, for example, is relevant for tank building. Access to cheap electricity in bulk is also important.
Secondly, and this is important for research enterprises, the proximity of large educational centers is necessary. Therefore, for example, cities such as Moscow, St. Petersburg, Novosibirsk, Nizhny Novgorod and Yekaterinburg occupy an important place.
Thirdly, many enterprises were evacuated from the western regions of the country during World War II. So, in the Urals, ferrous metallurgy was supplemented by tank building: the Chelyabinsk Tractor Plant was created in Chelyabinsk, and the Uralvagonzavod appeared in Nizhny Tagil in the Sverdlovsk Region, which occupies the forefront in deliveries to the global arms market. Many defense industry enterprises in small cities are city-forming.
Arms exports as a source of foreign exchange earnings
To understand the role of the military-industrial complex in the Russian economy, one can get acquainted with the results of foreign economic activity. Experts record the growth of arms exports and the growing amount of contracts, which reach $ 7 billion.
It should be noted that Russia inherited most of the sales markets from the USSR. This is due to the fact that the operators are accustomed to using certain equipment, have the capacity for its licensed modernization and repair. In addition, Russian equipment is often much cheaper than its counterparts.
Every year, with each new exhibition of military equipment, the defense complex of Russia goes further and further beyond the boundaries of exclusively national interests. It is worth noting that each foreign order placed at the enterprise of the military-industrial complex of the country allows not only to earn, but also to modernize the production line accordingly, establish cooperation between different enterprises and gain invaluable experience in international cooperation.
Supply Geography
Arms are exported from Russia to 65 countries. At the same time, they buy completely different products: airplanes, small arms, anti-missile anti-aircraft systems and helicopters, tanks and armored personnel carriers.
They buy both entire weapon systems and individual parts.
The structure of the Russian defense industry
In order to understand the role of the military-industrial complex in the Russian economy, it is worth familiarizing yourself with its structure.
The traditional division of the military-industrial complex involves several links that include all stages, from development and design to final tests and delivery to the customer. Customers can be both various Russian government agencies and foreign buyers.
After the customer organization is determined with the terms of reference, research and development enterprises, each of which specializes in its industry, begin to work.
Perhaps the most famous design bureaus in Russia are organizations that have existed since the days of the USSR. For example, RSC Energia, based in Korolev, is engaged in the development of rocket technology, controlling all the stages from the first drawing to the installation of the launch vehicle on the launch pad. This approach provides an almost impeccable quality of manufactured equipment.
In total, 15 design bureaus are engaged in the development of space technology with a military or dual purpose in Russia.
They are engaged in high-tech shipbuilding in large scientific centers in St. Petersburg - the design bureaus Almaz, Malakhit, and Rubin specialize in the development and design of surface ships and submarines. In the same St. Petersburg, at the historical enterprise Admiralty Shipyards, drawings created by designers are sold in metal. This is how the country's nuclear shield is forged, for many of the ships created here will carry nuclear missiles.
Siberian factories on guard of the sky
Understanding the role of the military-industrial complex in the Russian economy will not be complete without indicating the connection between the development of the military-industrial complex and the growth of the civilian economy. And the point is not so much in the conversion of production that happened after the collapse of the Soviet Union, but in the use of the civilian market to finance expensive defense developments.
A good illustration of such cooperation is the aviation industry, which uses similar materials and even equipment to build both civilian and military aircraft.
The leading enterprise specializing in the development and testing of aircraft engines is considered the Omsk Motor Engineering Design Bureau, which builds engines not only for military aircraft for various applications, but for civil aircraft.
Thus, it becomes clear what the role of the military-industrial complex in the Russian economy is, because of the total arms exports, aviation accounts for half, and this is more than four billion dollars.
What is the role of the military-industrial complex in the Russian economy? Short answer
While research and design bureaus located in large cities gravitate towards existing centers with all the conditions necessary for research, industrial centers tend to create new centers of gravity.
Newly created enterprises in the USSR attracted talented engineers from all over the country. Around the industries, new cities grew. Unfortunately, today many of these cities do not have other industries, and this significantly complicates their development. However, it should be recognized that for many thousands of defense workers, government spending on weapons has become the only source of income.
Thus, speaking about the role of the military-industrial complex in the Russian economy (briefly), we can name the following areas:
- stimulating innovation in the civilian sector of the economy;
- stimulating demand and developing the economy of small single-industry towns by injecting funds through public procurement;
- increasing the political weight of Russia in the international arena through the promotion of military equipment and the establishment of business ties.