you are: FORMATION of the ECONOMIC MECHANISM of DISARMAMENT
Reduction of military expenses means decrease in volumes of the state military consumption and narrowing of scales of the market regulated by the state. on the other hand, it means occurrence at the disposal of the state of additional financial assets which can become a source of new capital investments in civil industries, and occurrence of objective possibilities of decrease in the sizes of taxes that will increase purchasing capacity of the population and solvent demand as a whole.
Reduction of military consumption without corresponding compensatory measures can lead to the serious social and economic disproportions connected with reduction of loading of capacities, mass lay-offs, easing of the general system of state regulation of economy etc. Therefore it is expedient to compensate reduction of the state military consumption by escalating of the state civil consumption. At the expense of the saved means those branches and development directions in which stimulation the given state is interested first of all could be subject to priority financing.
Introduction of system of the state civil purchases radically will change social orientation of the state market, stimulates a diversification of military sector towards increase in relative density of civil industries. As a result on change to productive consumption at manufacturing of military production similar consumption on the structure, connected with peaceful purpose production will come.
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