NEWTOWN, Conn.: After years of mulling over various reform strategies, Russia is finally moving forward with plans to modernize both its armed forces and the nation’s defense industry.
In a Forecast International Russian Defense Market report, Eurasian defense analyst Rebecca Barrett points out that the long-term budget plan known as the SAP 2007-2015 “has evolved to simultaneously become a military modernization, employment, and defense industry stimulus plan.” According to Barrett, “The plan is attracting a greater number of stakeholders and thus gaining the political momentum needed to ensure that defense spending continues to grow, even if such expenditures are not economically prudent.”
In February 2010, President Dimitri Medvedev approved the new, highly anticipated military doctrine for the Russian Federation. The doctrine outlines the nation’s strategic nuclear plan and highlights what the government considers to be real threats and challenges facing the nation. It also calls for the armed forces’ transformation into a more effective mobile force. Under the plan, the Russian military will be cut by some 200,000 personnel by 2012.
“The combination of Russia’s desire to modernize its force structure and its budget constraints is forcing it to adopt a number of end-strength and budget reforms,” said Barrett.
As a result, the second major aspect of the reform is the restructuring of the long-term planning portion of the Defense Ministry’s budget. The aim here is to modernize the Kremlin’s fiscal practices in line with the modernization of the nation’s defense industry.
In this regard, improving Russia’s defense industry has taken on great importance for the central government. Indeed, President Medvedev and Prime Minister Vladimir Putin have even used the modernization as a political tool to some extent, with Putin touting the effort as a jobs/industry stimulus plan.
Modernization plans have been plodding along slowly in recent years, as is evidenced in the SAP 2007-2015. However, now that President Medvedev has signed the new military doctrine, the efforts are finally coming together under one umbrella.
Forecast International, Inc. is a leading provider of Market Intelligence and Analysis in the areas of aerospace, defense, power systems and military electronics. Based in Newtown, Conn., USA, Forecast International specializes in long-range industry forecasts and market assessments used by strategic planners, marketing professionals, military organizations, and governments worldwide.
