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Democracy's Arsenal

Creating a Twenty-First-Century Defense Industry

Jacques S. Gansler

Publication Year: 2011

An expert explains why the security needs of the twenty-first century require a transformation of the defense industry of the twentieth century.

Published by: The MIT Press

Cover, Title Page, Copyright

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pp. 1-7


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pp. vii-9

List of Figures

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pp. ix-x

List of Tables

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pp. xi-xii

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pp. xiii-xiv

President Dwight D. Eisenhower ’ s famous 1961 warning to beware of the “ military industrial complex ” was followed by a statement that the United States could not have won World War II without the defense industry. Joseph Stalin similarly stated that the allies could not have won the war without the U.S. defense industry. America ’ s security in the twenty-first century depends...

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pp. xv-17

The author is greatly indebted to and appreciative of his University of Maryland associates William Lucyshyn, Caroline (Dawn) Pulliam, and Alyssa Rodriguez, who helped significantly with the manuscript and figures (particularly Bill Lucyshyn, who spent hours helping with the textual wording and content). They all provided invaluable help and support...

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1. The Challenge

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pp. 1-7

America’s rise to a position as the world ’ s lone superpower (in terms of its economic, political, and military position) began at the beginning of the twentieth century.1 President Theodore Roosevelt expanded U.S. reach globally, U.S. industry experienced enormous growth and reinvented itself to win World War II, the Berlin wall fell, and the Soviet Union collapsed...

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2. The Defense Industry in Perspective

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pp. 9-77

When people think about the U.S. defense industry, two thoughts come to mind — that it builds the best weapons systems in the world and that it played a major role in winning World War II. In fact, the war-production output of U.S. industry (primarily converted commercial plants) led to its being called the “ arsenal of democracy.”1 The defense industry is a major sector of the U.S. economy, but because it has...

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3. National Security in the Twenty-First Century

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pp. 79-127

With the official end of the cold war in 1991, as Alvin and Heidi Toffl er state in their 1993 book War and Anti-War: Survival at the Dawn of the Twenty- First Century,1 the industrial wars of the nineteenth and twentieth centuries (which were marked by huge armies, mass production of modern weapons, and mass destruction) could be said to have ended. Industrial-age warfare...

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4. Characteristics of the Defense Industry in the Early Twenty-First Century

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pp. 129-234

Because government and commercial markets are different in terms of regulation, political involvement, unique contracting, specialized cost accounting, and buyer concentration, firms that operate in both sectors tend to separate their government and commercial operations into separate divisions and profit centers. Of interest here is the government sector, particularly the federal portion...

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5. The Workforce: Industry, Government, and University

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pp. 235-251

For America to have the strongest possible national security posture and for war-fighters to have the best possible equipment and support for that equipment, they need a capable and experienced acquisition workforce — in both government and industry. The government workforce consists of the military acquisition workforce, career civilian acquisition...

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6. The Criticality of Research and Development

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pp. 253-279

After World War II and during the cold war, U.S. national security strategy was based on technological superiority. The secretary of defense from 1977 to 1981, Harold Brown, and the undersecretary of defense during that period, William Perry, decided to offset the Soviet Union ’ s quantitative military superiority not by building bigger armies but — because the cost of DoD labor went up greatly with the end...

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7. Competition in Defense Acquisitions

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pp. 281-306

Competition is the most important aspect of the Defense Department’s acquisition strategy (for both goods and services) since it is a way to create incentives for innovations that result in higher performance at lower cost. Because a single (monopoly) source lacks such incentives, it tends to maximize its profits by raising costs and producing the same goods and services...

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8. The Defense-Industry Strategies of Other Nations

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pp. 307-338

U.S. security for the twenty-first century (both militarily and industrially) requires a global strategy. In the future, virtually all security scenarios that affect the nation will involve other nations, and technology and industry will themselves be global. Moreover, we can learn a great deal by looking at the strengths and weaknesses of alternative industrial models that have been tried...

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9. Transforming the U.S. National-Security Industry

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pp. 339-358

According to the literature on culture change, the first requirement for achieving change is acceptance of the need for it. Widespread recognition of the need for change in the U.S. national-security posture began with the terrorist attacks on U.S. soil on September 11, 2001. At that time, then Secretary of Defense Donald Rumsfeld called for a total transformation of the Department of Defense...


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pp. 359-402


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pp. 403-410

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About the Author

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pp. 411-412

The Honorable Jacques S. Gansler is a professor and holds the Roger C. Lipitz Chair in Public Policy and Private Enterprise in the School of Public Policy at the University of Maryland. Additionally, he is the Glenn L. Martin Institute Fellow of Engineering at the A. James Clarke School of Engineering, an affiliate faculty member at the Robert H. Smith School of Business, and a senior fellow...


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pp. 413-432

E-ISBN-13: 9780262295260
E-ISBN-10: 0262295261
Print-ISBN-13: 9780262072991
Print-ISBN-10: 0262072998

Page Count: 448
Illustrations: 32 figures, 28 tables
Publication Year: 2011