- August 31, 2024
- 2:55 pm
- World News
The huge sums spent by Putin's clique on the military industry, salaries for contract soldiers and death bonuses for families are creating a financial “bubble” in the Russian Federation that is prolonging the warexperts say Le Monde.
An article from Le Monde details how the Russian economy, despite heavy Western sanctions, continues to show growth. This growth, however, is built on very gloomy foundations, which the journalists called “the economy of death”.
Since the start of the full-scale war unleashed by Russia against Ukraine, the Putin regime has faced an urgent need to replace the human losses at the front. To this end, a variety of measures have been used to attract new volunteers, ranging from aggressive propaganda in the media, universities, on the streets and on social networks, to promises of huge cash payments and social benefits. “Become a hero!”, “Defend your native land!” – such slogans adorn Russian cities, calling on men, sometimes even up to 65 years old, to join volunteer units to fight for the “liberation of the occupied territories.”
To fulfill the recruitment plans, the country's regions have deployed all possible resources. For example, in Tatarstan, a major supplier of recruits, from July 12, 2023 the campaign is activeoffering a reward of 100,000 rubles to anyone who who will bring a friend to the military registration and enlistment office. These measures have borne fruit: in the period from January to December 2023, according to the Russian Ministry of Defense, 385,000 contracts were signed.
To increase the motivation of volunteers, Putin increased the monthly salary in July 2024. salaries of contract workers up to 400,000 rubles, which 10 times the national average incomeMoreover, at the beginning of the contract a one-time bonus of 1.2 million rubles is paid, which also contributes to the growth of the number of those wishing to join the ranks of the Russian army.
Such huge financial injections into the military economy have led to a noticeable increase in consumption in the country. This growth is supported by historically low unemployment – only 2.6%. The World Bank even included Russia in the list of high-income countries based on these macroeconomic indicators.
However, such a rosy picture of the Russian economy is not the result of successful economic reforms, but of unprecedented military spending. Experts emphasize that Western sanctions, paradoxically, helped the Russian economy by reducing capital outflow, which, in turn, contributed to an increase in domestic demand. As a result, the budget receives more revenue, and imports are maintained at a fairly high level.
However, all This “economy of death” leads to the conclusionwhich is reflected in the title of the article: “A dead Russian brings more to his family than a living one”. This emphasizes that the current The growth of the Russian economy is the result of the monetization of the lives of Russian soldierswho go to war for promised money, but often return in zinc coffins, leaving their families with only compensation and the bitterness of loss.
The economic situation described in the Le Monde article shows the deep contradictions in the current Russian model. On the one hand, we see the growth of macroeconomic indicators, which is supported by military spending and artificial stimulation of demand within the country. On the other hand, this growth is built on very dark foundations – human lives, which are turned into a commodity in Putin's economy.
On this issue, it can be expressed as follows: such a model of economic growth is unsustainable and dangerous both for Russia itself and for the international community. Growth based on militarization and suppression of the population ultimately leads to the depletion of resources – both human and financial. A system built on violence and coercion cannot be a long-term basis for the country's prosperity..
Predicting the future in such a situation can be done with a high degree of anxiety. In the short term, Russia can continue to maintain the illusion of stability by increasing military salaries and expanding military campaigns. However, over time, internal and external factors will begin to put increasing pressure on this model.
Firstly, demographic crisis — a reduction in the number of working-age population and significant losses among young people at the front — will have a negative impact on the economy. Secondly, growing discontent among the populationparticularly among the families of fallen soldiers, could lead to increased domestic instability. This discontent will only deepen as the gap between official statements and reality becomes more apparent.
External factor – continuation and strengthening of international sanctions — will also play a role. These sanctions will undermine Russia's ability to support its economy, especially in the context of increasing isolationism.
As a result, we can expect that This “death economy” will reach its critical pointEither Russia will be forced to change course and seek ways to resolve the conflict peacefully, or the country will face further degradation, increased internal tension and, possibly, social unrest.
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