ECONOMIC CONSEQUENCES AND PROBLEMS OF POST-WAR RECONSTRUCTION OF TERRITORIES

Abstract

The article highlights current issues and problems of economic recovery in the post-conflict period. The concept of "post-war recovery" is generalized, the causes and consequences of armed conflicts are structured. The economic consequences of armed conflicts in different countries can differ significantly. This is explained by different initial economic conditions, the nature of the conflict, its intensity and duration. It also depends on the international response to the conflict in terms of financial flows and trade policy. Armed conflicts lead not only to the cancellation of "normal" development, but also to a radically new path of development for post-conflict countries. As a result of the full-scale invasion, the Ukrainian economy suffered significant losses and decreased by almost a third. Due to the war, domestic demand decreased, there was a disruption in logistics and a loss of labor and production potential. The military conflict led to the emergence of new problems and challenges that the country had not faced before: resettlement of citizens from temporarily occupied territories, reorientation of export-import activities, damage to infrastructure, etc. In the article, special attention is paid to the study of macroeconomic instability based on the analysis of key problems that arose on the territory of the country as a result of the war. The impact of the war on economic indicators, namely: the change in GDP, the inflation rate, the unemployment rate, and the consumer price index, is studied. It is well-founded that a successful economic recovery cannot simply be a return to the pre-war level of income and development. Economic recovery should essentially be transformative, requiring systemic reforms: economic, institutional, legal and political. As historical experience shows, the affected countries remain vulnerable to a recurrence of the conflict. Therefore, post-conflict economic recovery must be flexible and adaptive to reduce the risk of a return to violence. This requires a clear understanding of the factors and consequences of the conflict.