Based on news in the last 24 hours, the war in Ukraine may be heading towards the decisive phase of the conflict, but in the meantime casualties on both sides continue to mount in a way that is sometimes completely unpredictable. In fact, one of the paradoxes that can only occur in a dystopia or war is happening. Dead people whose economic “value” exceeds that of living working people.

“Economy of death” in Russia. This was said in an extensive report in The Wall Street Journal. In the context of its protracted occupation of Ukraine, Russia has structured an economic system that places a significant monetary value on death at the front, which can have an economic and social impact on both affected families and the poorest regions of the world. . country.

In this regard, economist Vladislav Inozemtsev explained to the media that the family of a 35-year-old man who served in the army for a year and died in the war received an average of 14.5 million rubles ($150,000). Includes other bonuses and additional compensation.

Paradox. This is because this figure is considerably higher than what the average worker will earn by age 60 in many regions of Russia. In fact, this calculation turns death into a “profitable” option for many families in rural or disadvantaged areas, revealing a dark and cruel equation that encourages military participation.

Regional impact: mourning richness. The media gives two regions as examples: Tuva and Buryatia. Both have experienced remarkable growth in bank deposits, with increases of 151% and 81% respectively since January 2022. These regions, historically marked by famine, have seen declines in poverty rates, showing how the toll for deaths is on the front end. created a local economic boom amidst the tragedy.

But there is more. There has also been a real estate boom in Buryatia, with a 32% increase in housing construction compared to 2% nationally. In fact, spending at restaurants and bars in regions like Altay increased by 56% last year, reflecting the increase in consumption.

Recruitment. It is well known that Russia faces the urgent need to recoup its losses, with estimates estimated that more than 600,000 soldiers have been killed or wounded in Ukraine since the beginning of the conflict. An estimated 30,000 new recruits are needed each month, leading the Kremlin to offer significant sums as incentives, thus avoiding more drastic measures such as politically unwelcome general mobilization.

Currently, the minimum salary for a soldier in Ukraine is 210,000 rubles ($2,140), almost three times the national average. Additionally, according to the UK Ministry of Defence, additional bonuses are awarded for participation in offensive operations and major battles, allowing the recruitment of around 1,000 men per day. In parallel, and as we have reported these weeks, everything points to unconventional alternatives being sought, such as negotiations with North Korea to send additional troops.

Economic distortions and tension. This is another leg of the war. The conflict created imbalances in the Russian economy. Inflation reached almost 10% in September, fueled by sharp increases in staples such as potatoes, whose prices have risen by up to 73% so far this year. Although large military spending supports GDP growth, international sanctions and structural distortions create uncertainty about the sustainability of the economy.

In this context, some experts warn that Russia may not be able to sustain its war efforts after 2025, especially if current financial pressures continue. Not only this. The war also competes directly with the Russian private sector, where factories dedicated to arms production offer high salaries to keep production lines running. The situation is such that, according to the WSJ, this event has further exacerbated worker shortages in other sectors, increasing pressure on the economy and contributing to increased costs of goods and services.

Solution. The paradox between the “economic value” of a dead soldier and his value in life can only arise in an extreme situation such as war. The so-called “economy of death” or “economy of death” in Russia underscores how the Russian government in this case turns human loss into a financial tool to continue the war in Ukraine.

There is no doubt that this system, although temporarily beneficial for some societies, is unsustainable in the long term, reflecting a model dominated by internal tensions, economic difficulties and an uncertain future.

Image | Latvian armija

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