Recent world developments have created an opportune time for nations to vigorously pursue a policy of converting the huge portion of their economies that traditionally have been devoted to military expenditures to more socially productive uses. This paper outlines a strategy for such a conversion, and discusses the issues that must be confronted in such a process. Specific aspects of conversion include: (1) misconceptions about lessening military spending; (2) building a conversion coalition; (3) the paths forged by China and the Soviet Union; (4) upheaval in Eastern Europe; and (5) grassroots initiatives in the West. It is concluded that the gathering pressure for disarmament suggests that conversion will be a topic gaining importance during the 1990's. A number of statistical tables, charts, and maps appear throughout this paper, and 127 endnotes are provided. (DB)