This article is the following one in the series presenting the output of contemporary British defence economics. Basic defence economic problems that the economists faced as a result of radical political transformations taking place after 1989 have been presented in this article. The Conservative government tendency to liberalise the defence industry and weapon trade and also the need to possess a highly mobile, multi-purpose armed forces, well equipped and with a high level of readiness to react in various crisis situations caused changes in defence economic policy. The problems of this policy transformations and the ways of shaping it was undertaken by such recognised authorities as David Greenwood, Ron Smith, John Lovering and Keith Hartley. British scientists’ attention was focused on activities to rationalise the defence budget use, to shape government’s industrial defence policy which would ensure effective functioning of the defence industry and promotion of armament export, to compensate defence purchases in the economic co-operation framework.
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This article is the first of three to present modern British defence economy. This article discusses the post war defence-economic thought, since the end of the Second World War to 1978. On the background of political, military and economic conditions, there have been characterised works of David Greenwood, Mary Kaldor and Gavin Kennedy, the most distinguished British economists of that time dealing with defence problems. The scope of respective authors’ research is different. Greenwood was interested in problems of the military priorities role in shaping the amount of military expenditures. Kaldor dealt with the relations between factors shaping defence industry potential and problems which the weapon trade creates for the importing and exporting countries economy. Kennedy analysed the defence-economic problems the most widely. The topic of his research were the considerations on the notion, scope and comparison of defence expenditures, social-economic consequences of defence expenditures, the defence industry notions and specific character, advantages from weapon trade and the division of burdens due to common alliance defence.
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