Êvropejsʹkij Vektor Ekonomìčnogo Rozvitku (Jul 2023)

THE PROBLEM OF POVERTY IN THE CONDITIONS OF AN ARMED CONFLICT: THE UKRAINIAN CASE

  • Ruslan M. Kliuchnyk

DOI
https://doi.org/10.32342/2074-5362-2023-1-34-2
Journal volume & issue
Vol. 1, no. 34
pp. 21 – 32

Abstract

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The article examines the problem of poverty in Ukraine under the conditions of the Russian invasion. By the invasion of Russia, the author understands the large-scale war that has covered the entire territory of Ukraine since February 2022, since hostilities on the territory of Ukraine have been ongoing since 2014. The problem of poverty is especially relevant today, because in the conditions of armed conflicts, impoverishment affects the absolute majority of people. In the case of Ukraine, even people who, according to their social and economic characteristics, were confidently in the middle class, became poor. The article emphasizes that at the time of the beginning of the invasion, the Ukrainian economy did not have the necessary «strength margin». The standard of living in Ukraine throughout the period of independence has remained relatively low, which is proven by statistical data. So, Ukrainians had rather small amounts of savings, which adversely affected their lives after the beginning of the Russian invasion. A number of consequences of the armed conflict were identified, which directly or indirectly affected the level of poverty. Thus, the destruction of housing, by definition, determines the transition of a person to the category of citizens who are in a state of poverty. Given the number of people whose homes have been destroyed or significantly damaged, quick recovery is impossible given Ukrainian realities. The destruction of industrial facilities, road infrastructure, shopping areas, etc. is significant. Accordingly, citizens were left without work and the means of livelihood. A significant reduction in the territory controlled by Ukraine led to the loss of a significant part of the coastline and the complete loss of access to the Sea of Azov. It is emphasized that Russia gained control over a significant part of Ukraine’s natural resources. Special attention is paid in this article to Russia’s appropriation and smuggling of grain from Ukraine. Loss of life, health of citizens, mass evacuation and mobilization negatively affected the economic situation, which is discussed in detail in the work. The claim is made that evacuated citizens pay taxes, buy goods and services in host countries, supporting the economies of other countries. It has been proven that a decline in the level of education can have a long-term impact on economic development and the level of poverty. Peculiarities of the impact of the Russian invasion on the development of human capital in Ukraine have been studied. The thesis is expressed that the state and business bear an obligation to observe social responsibility. Special attention is paid to the impact of the war on the energy infrastructure. It has been demonstrated that Russia’s targeted attacks on the Ukrainian electricity industry are significantly harming the country’s economy. The list of consequences of Russia’s armed aggression against Ukraine given in the article is not complete. Moreover, a complete list with an exhaustive classification cannot be created by definition, because a significant number of facts have not yet become known. In addition, some effects will manifest only after a certain time. But it is already possible to state the need to involve the entire civilized world in order to restore the economy of Ukraine. The article uses the achievements of economic, political, sociological, psychological and other sciences, taking into account the interdisciplinary synthesis and pluralism of approaches. Modern trends in the interpretation of the consequences of Russia’s invasion of Ukraine are analyzed.

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