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Market economics in an all-out-war? Assessing economic and political risks to the Ukrainian war effort

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  • Cooper, Luke

Abstract

This report offers a summary analysis of the acute economic challenges facing the Ukrainian war effort and critically reviews the current policy agenda of the Government of Ukraine. Ukraine’s success in the war to date is reflective of popular support for the war-effort. Citizens are willing to mobilise and sacrifice to protect the country’s democratic public authority from its military overthrow by Russia. Despite serious social and economic problems, this has hitherto allowed Ukraine to avoid the societal collapse and state fragmentation, which are major risks to Ukraine’s ability to win the war. To mitigate these risks, it is recommended that the Ukrainian government adopt a policy of social partnership and aim to achieve full employment, so that all resources can be directed to support the war-effort.

Suggested Citation

  • Cooper, Luke, 2022. "Market economics in an all-out-war? Assessing economic and political risks to the Ukrainian war effort," LSE Research Online Documents on Economics 117570, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:117570
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    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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