THE IMPACT OF ARMED CONFLICTS ON THE FINANCIAL AND ECONOMIC DEVELOPMENT OF COUNTRIES

Abstract

The article is based on a study of the impact of armed conflicts on the financial and economic development of the countries involved in the confrontation. The paper analyzes such key indicators as the dynamics of the number of refugees and IDPs, the food price index, and the unemployment rate. Additionally, a classification analysis of the state budget expenditures of Ukraine, as one of the parties to the conflict under consideration, was developed and the quarterly GDP growth rate of the country was calculated. These indicators, in comparison with their previous values for previous periods, provide an opportunity to monitor the dynamics of the general economic situation of states and characterize the level of influence of military operations on economic development. The creation of a classification series of state budget expenditures helps to form a realistic module of the economy of any country in the grip of an armed conflict, since it is the distribution of national finances that plays a crucial role in the further development of the course of military conflict. The next stage of the research was the formulation of recommendations for the gradual restoration of the financial and economic situation of countries involved in armed conflicts and the stabilization of military tensions. Some of the proposals were as follows: following the goals of sustainable development to move to a more innovative economic structure by optimizing and modernizing the infrastructure of the states; implementing decentralization measures that will increase efficiency and reduce the time for state institutions to respond to specific cases at the local level; introducing measures to support small and medium-sized businesses, which in turn will stimulate the development of economic prosperity and stability of the countries by providing opportunities for state grants, subsidies and reducing taxation; development of projects for large-scale reconstruction of infrastructure facilities with the help of international donors, which will help restore damaged transport and logistics links, and the energy and industrial complex.