The end of the Cold War and a decline in public and political acceptance for military power has raised the questions in a number of nations over the continuing need for compulsory military service. This thesis, therefore, develops a conceptual model that shows the estimated effects of social, economic, political, and military variables on the successful implementation of an all-voluntary armed force. The research is based mainly on the experience of all-volunteer recruitment in the United States and Great Britain and recent trends elsewhere, especially in Western Europe. The main focus in this study is on economic considerations and the question about the fit between different key components in the military organization, the so-called "Military Design Factors." The model illustrates the open-system character of the military organization and highlights the close interrelationship between social, military, economic, and political elements in its environment. This thesis provides a basis for the design of a quantitative model that could be used to assess whether a specific country with compulsory military service possesses the conditions for successful conversion to an all-volunteer system.