Defence and firm performance in the UK

The UK Ministry of Defence is British industry's largest single customer and a number of firms and industries are highly dependent on defence sales. Various hypotheses have been proposed about the impact of defence procurement on firms and these are investigated using four performance indicators: financial structure, investment, productivity and profitability. With regard to the borrowing ratio, capital investment and the rate of return, there is no statistically significant difference between the mean financial ratios for low and high dependence firms. However, non‐dependents appear to have a higher level and rate of growth of labour productivity than dependents.     

A theory of war economies

This article presents a proposed theory of how war economies are formed and maintained, as well as an integrated policy framework to guide the dismantling of war economies emanating from the proposed theory. Additionally, six potential areas for future research pertaining to the dismantling of war economies are also presented.     

The European community's recognition of new states in Yugoslavia: The strategic implications

The EC's recognition of new states in former Yugoslavia is considered by most analysts to have seriously aggravated the conflict in the region. This article challenges the conventional wisdom and argues that the strategic effects of recognition have been largely overstated. The prospect of recognition played no significant role in the Slovene determination to sustain their campaign for independence and therefore bears little responsibility for the first phase of the war. In Croatia, recognition ‐ together with the deployment of UN peacekeepers ‐ may even have had a mitigating effect. Only in Bosnia is there any correlation between recognition and an intensification of hostilities but it is doubtful whether non‐recognition would have prevented the eruption of violence since Bosnian Serb aspirations for an ethnically homogeneous state entity could not be realised without resort to war. The real relevance of recognition lies with the opportunities for more effective international action which it created. It was the failure to seize these opportunities, rather than the strategic effects of recognition, which better explains the tragic events that ensued.     

Book reviews

John Lawrence Tone, The Fatal Knot: The Guerrilla War in Navarre and the Defeat of Napoleon in Spain. Chapel Hill and London; The University of North Carolina Press 1994. Pp.vii + 239, 1 map, biblio., index. $34.95 (cloth). ISBN 0–8078–2169–1.

Robert Holland (ed), Emergencies and Disorder in the European Empires after 1945. London: Frank Cass, 1994. Pp.x + 256; index. £32 (cloth); £15 (paper). ISBN 0–7146–4516–8 and 4109 X

Deborah L. Norden, Military Rebellion in Argentina: Between Coups and Consolidation. Lincoln, NE: University of Nebraska Press, 1996. Pp.242, index, $35/$17.50 (paper). ISBN 0–8032–8369–5.

William M. Minter, Apartheid's Contras: An Inquiry into the Roots of War in Angola and Mozambique. London and Atlantic Highlands, NJ: Zed Books Ltd; Johannesburg: Witwatersrand University Press, 1994. Pp. xii +308, 3 maps, biblio., index. $69.95/£39.95 (cloth); $29.95/£16.95(paper). ISBN 1–85649–266–4 and 266–4.