War and economy: legal and illegal practices of income generation

Abstract

The article emphasizes that the armed conflict has become a part of modern Ukraine and caused changes in all spheres of public life. This updated the scientific discourse about the nature of today's wars and their characteristics. The article emphasizes that at the present stage, the war between powerful powers is unlikely, given the potential for the use of nuclear weapons. However, the conflicts of low intensity periodically arise and continue in various parts of the world. Not only do they become constituent elements of public life, but reform the economy both at global and local level.The components of modern capitalist system are the industries that serve military needs. The income of defense corporations show high demand for their products. It is used not only by the countries that are involved in an armed confrontation, but also by other states that can be at war any moment. Locally armed confrontation is destructive for the economy of the country, focused on functioning in peacetime. Being involved into a protracted conflict entails changes in all the aspects of social life. Economic system adapts and generates new practices. Some paradoxical situations arise, so that there some opportunities to "earn" on the conflict, and therefore people who are interested in its preservation.The armed conflict in Ukraine is often called a hybrid war. Besides, in scientific discourse there are other names – the conflict in the «grey zone», «grey war», unlimited conflict, a non-conventional war as «War on behalf of». The war in Donbass is a new type of conflict. Taking into consideration its duration, it has led to the emergence of various kinds of economic practices – both legal (for example, the increase in military orders, scope services for permanently migrating displaced people, etc.), and illegal (for example, smuggling of goods across the line of demarcation). They have become a part of everyday life not only in the frontline areas of Donbass, but also of the entire country.