Economic evaluation of human assets loss due to participation in military actions in the Donbass
Journal Title: Економіка. Фінанси. Право - Year 2019, Vol 1, Issue
Abstract
In the course of research, it was determined that a segment of the able-bodied population of Ukraine is not directly involved in development of material assets and other socio-economic values due to participation in the Joint Forces Actions. In this regard, it is necessary to propose appropriate methodological tools and show the possibility of their practical implementation. The analysis of existing literature was carries out for the purpose of this paper. It is defined that methods and quantity input of human capital losses in the given area is developed insufficiently which suggests further works in this field. Developments proposed in the article consider socio-economic losses, both for business entities and for the economy of the country as a whole, as a result of the fact that a segment of the able-bodied population called to counterforce the military actions of aggressor, could not participate in development of material assets. Therefore, the value of national income and gross domestic product reduces. It is also determined that the main economic losses happen due to reduction of companies’ income as a result of job losses in material production which are caused by drawing away a part of able-bodied population to participate in military actions, requirements to increase a total number of servicemen taking into consideration the nowadays needs. The causes may also include additional reserve trainings in comparison with peaceful time. Proposed methodological recommendations are confirmed by numerical calculations. The paper provides corresponding methodical principles and numerical calculations as a result of deaths, injuries, treatment of servicemen, pensions payment to them and members of their families as well as methodological provisions for determining the magnitude of losses resulting from a part of human capital assets drawing away to participate in joint forces actions. The calculations performed revealed the existence of significant losses in the Ukrainian economy. As a result, actions toward the settlement of the situation in the Donbass ought to be taken.
Authors and Affiliations
Anatolii Ivanovych Yakovliev
Keywords
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