PRIVATIZATION IN NACC COUNTRIES Defence Industry Experiences and Policies and Related Experiences in Other Fields COLLOQUIUM 1994 ********* COLLOQUE 1994 PRIVATISATION DANS LES PAYS DU CCNA Experiences et politiques des industries de defense et experiences comparables dans d'autres secteurs Colloquium 29-30 June, 1 July 1994 Brussels ------------------------------------------------------ WELCOMING ADDRESS BY THE SECRETARY GENERAL OF NATO (as delivered by the Colloquium Chairman) I very much regret that I am unable to join you all this morning for the opening of the 1994 NATO Economics Colloquium, but let me extend, through your Chairman, my warm welcome and best wishes for a successful meeting. I also want to thank all the speakers who have come from a number of near and distant places to share their thoughts on this important topic with us. The Colloquium has now become a regular activity under the Work Plan of the North Atlantic Cooperation Council and the increasing participation of speakers from Cooperation Partner countries greatly enriches the discussions and increases the benefits which participants take away. NATO's cooperation with the states of the former Soviet Union and other Central and East European countries is dynamic and constantly takes on new aspects. This is in the interest of all parties involved. Our aim is to use the framework of the NACC to facilitate and promote work on common problems, like defence conversion, where each country can bring to the table the benefit of their experience and take away knowledge gained from others. As NACC Ministers affirmed after their meeting in December 1993: "We aim to advance our practical cooperation on defence conversion and on security-related economic issues, including those related to defence budgets." This conference is an important activity in this regard. Its focus, as suggested by the ColloquiumÕs title, will be on defence industries, as this is an area of particular security interest where NATO nations have a great deal of expertise and experience. But there can be no isolation of this area of industrial activity from general privatization policies and overall economic reform. A viable market framework must be set up if the privatization and conversion to civilian goals of defence industry is to be successful. It seems clear that privatization of economies is an important, perhaps a key, step towards the establishment of market economies. Beyond the purely economic aspects, however, there are the broader political and social implications. History has shown that a nation of property owners, with widespread vested interests, is more likely to be imbued with strong democratic attributes and greater stability and internal security. This does not mean that one model exists for all to follow. The road to a market economy may vary from one country to another and the final results may differ, with some countries opting to maintain a greater part of the economy under state ownership than others do. But few would argue for a system of complete, or near-complete, state ownership. Thus I am sure that each of you will carry away from these discussions this week some new ideas on privatization which will be of benefit in the design and implementation of your own national programmes. Thank you all once again for joining NATO in this cooperative venture, and I and my colleagues will look forward to the published results of your deliberations. --------------------------------------------------------- Copyright 1994 NATO All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means: electronic, electrostatic, magnetic tape, mechanical, photocopying, recording or otherwise, without permission in writing from the copyright holders. Authorization may be requested for redistribution of the text on a non commercial base by research and educational services. Requests should be addressed to the Economics Directorate, NATO, via e-mail 'scheurweghs@hq.nato.int'. First edition 1994 ISBN 92-845-0079-6 This is the latest in a series bringing together papers presented at the NATO colloquia organised by the NATO Economics Directorate and Office of Information and Press on economic issues in the former USSR and Central and East European countries. For further information please write to the Director, Office of Information and Press, 1110 Brussels, Belgium. The articles contained in this volume represent the views of the authors and do not necessarily reflect the official opinion or policy of member governments or NATO.