Management of Budgetary Decline in the Department of Defense in Response to the End of the Cold War

Abstract

This study analyzes the decisions and actions of the President, Congress, and Pentagon leadership for 1989 to 1992 to reduce the defense budget for the period 1990 to 1997. The objective of this research is to indicate how the Department of Defense developed and began to execute plans for significant downsizing. Management of declining budgets by DoD is evaluated employing a framework for analysis of fiscal stress in public sector organizations. Major force structure reductions and cuts in DoD operational and capital budget accounts are analyzed. Weapons system terminations and military and civilian personnel cuts are detailed. Efforts to improve DoD efficiency through implementation of the Defense Management Report are assessed. Military base closure and realignment is reviewed. Redefinition of the base force structure in response to revised threat assessment and changes in the international security policy environment including improved East-West relations, reduced probability of conventional war, tactical and strategic nuclear disarmament, and operation Desert Storm also is addressed.