International Financing Directions for the Transformation of the Country’s Economy in the Modern War (Ukraine as the Example)

Abstract

The article describes the peculiarities of transformational processes financing in the economy of the country, which is in the conditions of a modern war. Modern warfare is hybrid. It is carried out in all directions of the functioning of society, it affects on all aspects of every person’s life. The war has two main stages. The first stage is a sudden attack on the country. The second stage begins when the attacked country moves the war into the “long-term”, positional stage. An example of a modern war between two countries where modern weapons are used is the war between Russia and Ukraine. Russia without a declaration of war attacked Ukraine on February 24, 2022 and occupied more than 20% of the territory. From the end of May 2022, the war entered the positional phase. The front-line changes very slowly. However, an important feature is that the entire territory of Ukraine is under constant shelling by missiles of various classes. The case of Ukraine allows you to use most of the tools used by developed countries during World War I and World War II. Features of the application of international financing for the economy of Ukraine are described in detail. Specific features for the involvement of science (within R&D) during the war are also separately highlighted. The obtained results will be important both for the Government of Ukraine and for the countries that support Ukraine financially and with equipment for military, dual and civilian purposes. Described methods make it possible to more effectively integrate Ukraine into the socio-economic space of Europe and developed countries as a whole. They also make it possible to significantly reduce the costs of foreign countries to help Ukraine in the war. This becomes possible due to the implementation of joint Projects, which are economically and socially beneficial both for Ukraine and for foreign countries.

Keywords: Modern War, Ukraine, Economy Transformation, International Financing, Science, R&D

JEL Classification: F35, H56, J08, N44