Since 1992, the CISAC Defense Conversion Project has been working with the Moscowbased Impuls. Impuls is a medium-sized firm with expertise in control microdevices for the military, such as control heads for guided bombs and detection equipment for various weapon systems. Currently Impuls is working aggressively to break into several commercial high-technology markets.

Given the privileged position of the military-industrial complex in the old Soviet order, many have asserted that the military-industrial complex would be most resistant to radical economic reform. As the coddled employees of the Soviet state, we should expect directors and workers of military enterprises as well as their ministerial superiors to fear liberalized prices, commercial markets, and privatization.

Presidential Decree No. 1400 issued September 23, 1993, fundamentally altered the course of Russia's political transition. Debilitating polarization during the two years before between President Boris Yeltsin's government and parliament had resulted in the virtual collapse of the Russian state. As Yeltsin explained when he announced the decree: "All political institutions and politicians have been involved in a futile and senseless struggle aimed at destruction. A direct effect of this is the loss of authority of state power as a whole..."

The demise of communism in the Soviet Union could not have occurred without the activism of dissident, anticommunist leaders who created a climate that gave ordinary Russians the courage to stand up to and defeat communist control. But with communism ousted, what new form of government and what new leaders will emerge in Russia, a society that has never known democracy? Michael McFaul, a Western scholar studying at Moscow State University, and Sergei Markov, an assistant professor at Moscow State University, interviewed anticommunist parties in the months preceding and immediately following the August 1991 attempted coup d'etat. To examine the range of the political spectrum in Russia, they also talked to procommunist leaders who emerged to oppose Mikhail Gorbachev's reforms, nationalist and anti-Semitic leaders of movements such as Pamyat', labor unions, Christian movements, and organizations opposed to the division of the Soviet Union.

During the most recent Russian-American summit in Vancouver, Canada in April 1993, President Clinton announced a major new initiative to assist Russia's transition to a market economy. In discussing how to aid the process of Russia's economic reform in ways of mutual benefit to both the United States and Russia, both President Yeltsin and President Clinton underscored the importance of promoting the conversion and privatization of state enterprises of the Russian military-industrial complex.

While most agree that conversion and privatization of these enterprises are laudable goals, few have discussed concrete methods of achieving these ends at the level of individual enterprises. By focusing on the actual experiences of one Russian enterprise that has both converted to almost 100% civilian production and, at the same time, become a private company, this report seeks to expand the discussion of the means and models for achieving conversion and privatization of the Russian military industrial complex.

This report covers work on conversion and privatization in the former Soviet Union that has been conducted over the past two years by the Center for International Security and Arms Control (CISAC) at Stanford University. In it, we explore the process of conversion and privatization through employee ownership. The report contains one chapter each on the major issues surrounding conversion and privatization, followed by a detailed explanation of the employee ownership method of privatization. The report concludes with the description and analysis of a case study of privatization through employee ownership: the Saratov Aviation Plant.

No living political scientist or sociologist is more frequently cited by other scholars than Seymour Martin Lipset. He is one of the most prolific social scientists of this century--the author (or co-author) of 21 books and the editor (or co-editor) of 25 more. Lipset's influential Political Man has been published in 16 countries, including Israel, Japan, Vietnam, and Yugoslavia. Now, in this comprehensive and well-integrated selection of essays, an all-star cast pays tribute to Lipset's scholarship by exploring his core theme: the conditions, problems, dynamics, values, and institutions of democracy, both in the United States and comparatively throughout the world. Reexamining Democracy--like Lipset's own wide-ranging intellectual work--is devoted to rethinking the character and development of democracy in America and beyond. With the ongoing resurgence of democracy in the world and the faltering performances of many established democracies acting as an ironic backdrop, this collection of diverse thought offers fascinating perspectives on an ever potent and compelling social force.

"Economic Development and Democracy Reconsidered" also reprinted in American Behavioral Scientist, Vol. 35 (March/June 1992), pp. 450-499, and in Spanish in Estudios Publicos, no. 49, 1993)

The war in El Salvador is over. On January 16, 1992, in Mexico Citys ornate Chapultepec Castle the government of President Alfredo Cristiani and the rebel Farabundo Martí National Liberation Front (FMLN) formally signed a comprehensive peace treaty, putting an end to 12 years of conflict.

As 1992 began, the scene of Americas most prolonged military involvement since Vietnam presented images unimaginable just a few months before. In Mexico City, after unexpectedly signing the peace agreement in person, President Cristiani strode across the podium to shake hands with all five FMLN commanders as participants on both sides cried openly. In El Salvador a sea of FMLN flags filled San Salvadors Civic Plaza in front of the Metropolitan Cathedral, where the army once massacred political dissidents; the cathedral itself was draped with an enormous banner of the assassinated Archbishop Oscar Arnulfo Romero. A ceremony held to observe the commencement of the formal ceasefire was especially poignant: army officers and rebel commanders stood together at attention to sing the Salvadoran anthem on a dais decorated with the flags of El Salvador, the ruling Nationalist Republican Alliance (ARENA) and the FMLN. The rival commandants then accompanied President Cristiani to light an eternal flame in commemoration of the more than 75,000 Salvadorans who died in the tiny countrys war.