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DOI: https://doi.org/10.34069/AI/2022.57.08.17
How to Cite:
Zablodska, I., Rohozian, Y., Sieriebriak, S., Plietnov, M., Vakhlakova, V. (2022). Special mode of economic development of
European countries in the post-war period: legal experience. Amazonia Investiga, 11(57), 162-171.
https://doi.org/10.34069/AI/2022.57.08.17
Special mode of economic development of European countries in the
post-war period: legal experience
Спеціальний режим економічного розвитку європейських країн у післявоєнний
період: правовий досвід
Received: October 3, 2022 Accepted: November 5, 2022
Written by:
Inna Zablodska53
https://orcid.org/0000-0002-1410-6194
Yuliia Rohozian54
https://orcid.org/0000-0001-5325-4213
Stanislav Sieriebriak55
https://orcid.org/0000-0001-7207-594X
Mykhailo Plietnov56
https://orcid.org/0000-0002-8482-9419
Viktoriia Vakhlakova57
https://orcid.org/0000-0002-4991-9996
Abstract
Today, when Ukraine suffers from a terrible war,
research on economic and legal trends within the
framework of restoration of the affected
territories is gaining a certain urgency. The
analysis of the legal experience of European
countries with a special mode of economic
development, which may become an effective
basis for the restoration of the territories of
Ukraine after the military actions, requires a
special emphasis in this context. The study is
based on an analysis of scientific and applied
approaches to post-war management and the
presentation of economic results in European
countries, where the experience of Bosnia and
Herzegovina, Serbia, Italy and Spain play an
important role. The authors paid considerable
attention to the analysis of the Ukrainian case in
2014, when Russia occupied Crimea and part of
Luhansk and Donetsk regions. Based on
European and Ukrainian experience, it has been
proved that the main criterion of economic
53
Doctor of Economic Sciences, Professor, Head of the Luhansk branch of the State Organization “V. Mamutov Institute of
Economic and Legal Research of the National Academy of Sciences of Ukraine”, Ukraine.
54
Doctor of Economic Sciences, Senior Researcher, Deputy Head of the Department of Interregional Cooperation Issues, State
Organization “V. Mamutov Institute of Economic and Legal Research of the National Academy of Sciences of Ukraine”, Ukraine.
55
Candidate of Juridical Sciences, Associate Professor of the Department of Law, Volodymyr Dahl East Ukrainian National
University, Ukraine.
56
Candidate of Juridical Sciences, Associate Professor of the Department of Law, Volodymyr Dahl East Ukrainian National
University, Ukraine.
57
Candidate of Economic Sciences, Docent, Associated Professor of the Department of Economics and Entrepreneurship,
Volodymyr Dahl East Ukrainian National University, Ukraine.
Zablodska, I., Rohozian, Y., Sieriebriak, S., Plietnov, M., Vakhlakova, V. / Volume 11 - Issue 57: 162-171 / September, 2022
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efficiency in the post-war period is improvement
of the quality of life of the population.
Keywords: special mode of economic
development, legal experience, European
countries, recovery, instruments, post-war
period, quality of life of the population.
Introduction
The war launched against Ukraine by the Russian
Federation on February 24, 2022, has become the
largest military conflict in the European space
since the Second World War. During this war,
Russia uses various methods of combat against
Ukraine, which provide for maximum use of
artillery and missile attacks in Ukrainian cities.
Among the most affected cities during the war,
Mariupol, Kharkiv, Chernihiv, Sievierodonetsk,
Lysychansk, Sumy, Rubizhne, Izyum,
Mykolayiv, Bakhmut. This has also resulted in
significant casualties among the civilian
population and large-scale destruction and
damage to the housing stock, administrative
buildings, infrastructure, cultural and
architectural structures throughout the country,
and, above all, in the areas of active fighting in
Kharkiv, Luhansk, Donetsk, Kherson,
Mykolayiv, Zaporizhzhia, Sumy, Chernihiv and
Dnipropetrovsk regions.
Mass character of damages and destruction
allows to draw conclusions about large losses of
physical assets, indirect losses of economy, in the
industry, causes urgent necessity of restoration of
damaged or destroyed assets in order to carry out
active economic activity. Therefore, the
definition of the characteristics of the special
mode of economic development in the post-war
period and the study of the existing legal
experience in Europe will allow Ukraine to
restore economy quickly and take into account
errors and miscalculations of such countries as
Bosnia and Herzegovina, Serbia, Italy and Spain,
etc.
Theoretical Framework or Literature Review
The economic opinion of the redrawn problem is
characterized by quite different, often even
opposite, views. The latter have undergone
dramatic changes in different times, both through
the development of economic science and under
the influence of the transformation of production
processes and economies of certain countries of
the world through war. For many decades the
world and domestic scientists have been
investigating the problems and peculiarities of
economic recovery after crises (including after
war) on local territories, especially in Ukraine,
because the country has been going through war
for eight years.
Among the scientific achievements should be
selected the works of such foreign and Ukrainian
scientists: O. Blažo (2020), J. Chaisse and
G. Dimitropoulos (2021), T. Dorożyński,
J. Świerkocki and B. Dobrowolska (2021),
V. Navickas, I. Petrokė and V. Bačiulienė
(2021), I. Zablodska and S. Hrechana (2020),
Yu. Rohozian, O. Kuzmenko, N. Derzhak
(2020), I. Honcharenko, M. Dubinina and
N. Kubiniy (2021), S. Shults, L. Simkiv and
U. Andrusiv (2022), Z. Siryk, N. Popadynets,
M. Pityulichс (2021) and others. However, the
conditions of economic activity in different
countries are excellent, especially in the post-war
time, so the research on the definition of the
peculiarities of economic activity is always
relevant and interesting to the scientific
community.
Methodology
The purpose of this work is to define the
peculiarities of the special mode of economic
development in the post-war period in Ukraine
by studying the existing legal experience in the
countries of Europe in order to quickly restore
the economy by taking into account mistakes and
miscalculations.
This scientific work is based on official data of
Ukraine, normative-legal documents, which are
valid in Ukraine concerning development of
economic activity in military and post-war time.
Scientific and applied approaches to the
economy, which are used in the work, provide
application of comparative analysis of
information for generalization of experience of
peculiarities of the economy in the countries of
Europe in the post-war time. The methods of
synthesis and visualization are used. The
research is also based on the theory of
regionalistics, economic analysis and statistics.
The study is also based on the index method of
analysis of the quality of life of the population
and its ranking. To analyze the quality of life of
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the population, the Numdeo is the world's largest
cost-of-living database. To obtain a thorough
conclusion, the authors relied on scientific
development of leading scientists and economists
on effective management through military
conflicts.
Results and Discussion
1. Scientific and applied approaches to the
special mode of economic development in
the post-war time
The military conditions of economic activity
make it necessary to apply special methods, tools
and approaches to the development of the
country's economy, which was destroyed by war.
The set of these special methods, tools and
approaches is based on the definition of the most
effective forms, fiscal methods and tools of
providing support to producers and the
population by providing subsidies, state aid,
financial support, budget support, protection of
commodity producers, etc.
The work of many scientists, devoted to
problems of support of enterprises and certain
branches of economy, is traced first of all to the
fact that support of producers is related to their
own support by the state. That is why the research
mainly uses state support, which is an integral
part of state regulation of economic activity in
the post-war period and is a combination of
different levers and instruments, preferential and
free financing of producers.
Producer support is an integral part of the system
of state regulation of the economy in the post-war
period and a way of achieving the goals of the
post-war economic policy, which includes means
related to the ratio of resources, first of all budget
funds, both in the form of direct financing and in
other forms of preference and incentives, and are
implemented to promote effective economic
activity of producers as the basis for economic
recovery. In the issues of producer support, the
most discussions among scientists are held on
expediency and volume of support of economic
activity, as well as forms, methods and means of
its realization. And under the economic activity
in understands the activity of economic entities
in the sphere of public production, aimed at
manufacturing and sale of products, performance
of works or rendering services of a value nature,
which have a price definition (Bandorina &
Savchuk, 2017).
The importance and importance of economic
activity for the economy of any country was
started in Germany at the end of XIX and
beginning of XX century, and later - in the Soviet
Union. Since then, the role of the state in
controlling the country’s economy has been
strengthened in order to ensure the realization of
public and state interests through support from
producers of certain sectors. But the difference
between approaches to economic development in
the post-war time is that the destruction or
destruction of economic activity occurs on local
territories, not on the whole territory. Therefore,
the peculiarities of the management in the post-
war time have territorial differences.
For instance, Bosnia and Herzegovina has used
the following approaches to the development in
the post-war period:
− economic entities are created and
functioning according to the following rules:
− the enterprise acquires the status of a legal
entity, and the individual acquires the status
of an independent entrepreneur by means of
its inclusion in the register of enterprises and
entrepreneurs;
− in an individual or legal entity, registered
outside Bosnia and Herzegovina, a branch
may operate within the country's districts if
the business entity is registered in the
country of residence for more than one year
or if the enterprise has a minimum capital of
at least 500 000 conversion marks of Bosnia
and Herzegovina or equivalent in euros;
− the name of the enterprise of any ownership
form cannot contain names of
administrative-territorial units of Bosnia and
Herzegovina, foreign or international
enterprises registered in the territory of the
country. The exception to this rule is the
possibility to name the enterprise using the
words "Brcko", "District" and "Bosnia and
Herzegovina" as instruments for
repositioning of the post-conflict territory
and increasing its recognition, but the
derived from these words and their reduction
can be used only with the permission of the
Department of Professional and
Administrative Affairs of the Local Council
of Brcko;
− foreign investors have the right to open an
account in any commercial bank on the
territory of Brcko in local or any other freely
convertible currency for investment
purposes, and can freely and without delay
transfer abroad to the freely convertible
currency their profit received as a result of
their investment activities in the area. Such
foreign investments are not subject to
nationalization, expropriation or other
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processes with similar consequences, except
for exclusive public interests of residents of
Brcko district in accordance with local rules
(Law No. 13, 2006).
The following approaches were used in Brcko
district to develop the economy in the post-war
period as well as foreign investments were
allowed to flow into the following forms:
− creation of a legal entity in common national
and foreign property;
− taking full responsibility for a local legal
entity by a foreign business entity;
− investing in the activity of an existing legal
entity;
− specific forms of investment approved by
the head of the Brcko district (for example,
investments in military enterprises) (Law
No. 01.3-05-1188/11, 2011).
The following customs and fiscal privileges have
been established in the Republic of Serbia on the
affected territories:
− exemption from payment of customs duties
and other import duties for goods intended
for construction of objects in the free zone
(raw materials, equipment, building
materials);
− exemption of economic entities from the
payment of the value-added tax for energy
consumption;
exemption from vat for sale of goods and
services in a free zone, as well as for sale of
goods between users of two free zones;
absence of bank guarantee for collection of
customs debts for foreign goods, which are
in the free zone, intended for realization of
production activity;
exemption from vat when importing goods
into a free zone, as well as provision of
transport and other services related to the
import of goods (Club Advanced, 2014).
Summing up, it is possible to assert that the
general features of development in the post-
war time should be attributed to economic
and legal, figure 1.
Figure 1. Dualism of features of efficient special mode of economic development after war (Source: own
processing)
Thus, effective special mode of economic
development in the post-war period is possible
only by the results of analysis of the state of the
country's economy after the war for adaptation,
improvement of the current legislation on
economic recovery, search of ways of
development of all kinds of economic activity
with the purpose of improving the quality of life
of the population.
2. Results analysis of special mode of economic
development in the post-war period in the
European countries
The war in Bosnia and Herzegovina has forced
the representatives of the state authorities to face
a huge challenge: To restore the economy and
provide conditions for the return of refugees and
internally displaced persons, but the process has
become more acute because of the complete
absence of political and ethnic unity between
Bosnia and Herzegovina. Moreover, the country
had a legacy of the centralized and planned
economy, despite the fact that before the war the
territory of the entire former Yugoslavia began to
move slowly toward a market economy.
Therefore, Bosnia and Herzegovina has faced
three major post-conflict challenges, more or less
typical of many post-conflict areas (especially in
developing countries):
− firstly, it was necessary to implement
programs of reconstruction and
rehabilitation of affected areas, to cover
military losses;
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− secondly, to develop a new management
structure at both the state and local levels;
− thirdly, ensure effective governance and the
process of transition to the market economy
in the context of creating employment
opportunities for refugees, displaced persons
and demineralized soldiers (Lake, 1990).
That is why the law "On encouragement of
economic development in the territory of the
district of Brcko Bosnia and Herzegovina" was
adopted, which defined the right of Brcko
entrepreneurs to realize the following benefits for
efficient business:
1. Full exemption from payment of the utility
fee for the registration of the enterprise;
2. Compensation of paid judicial fees
connected with creation of business entity
and registration of changes in the court
register;
3. Compensation of paid special fees and
services connected with connection of the
subject of economic activity to the electric
network, water-sewerage network;
4. Compensation of taxi, necessary for
obtaining consent from the local authority
and building permit;
5. Setting of payment for electricity and
water consumption for business entities at
the price level determined for citizens;
6. Possibility of compensation of part of paid
labor contribution (amount of labor
payment for all years of work in a
company with unlimited or limited
liability; a team or joint-stock company);
7. Compensation of 50% of the total amount
allocated by the small and medium-sized
enterprise for medical insurance of 1
employee; it is carried out for a three-year
period;
8. Compensation of wages during maternity
leave of the employee falling on the
burden of the employer is covered by the
district by 100%;
9. The district will reimburse the entities for
the amount of new investments invested in
the purchase of fixed assets, which are
included in the amount of the established
and paid income tax for the calendar year
in which such funds were purchased; the
right to compensation can be realized three
times.
Interestingly, the provisions of the normative-
legal act also provide penalties for those
economic entities that have the purpose of illegal
use of the above-mentioned preferences. Thus, in
2006, when the Law began to act, for such
entities it was envisaged a fine in the amount of
5 000,00 to 10 000,00 convertible stamps of
Bosnia and Herzegovina for submission of
unreliable information about the enterprise or its
founders and participants, as well as for
submission of relevant documents not within a
specified period of time (Law No. 13, 2006).
In the post-war period, there was continued
support from international donors for Bosnia and
Herzegovina. It was planned that by financing
short-term programs of economic recovery the
country will be able to gradually supplement this
process with its own resources, and then, in the
strategic perspective, to completely abandon
external funds. However, this plan has not yet
found its implementation, the country still
depends on external technical and financial
support, which significantly reduces the
efficiency of economic activity.
The main result of the full restoration of Bosnia
and Herzegovina was the establishment of the
Brcko district, which had excellent economic
conditions, i.e., the construction of incentives for
economic recovery of the territory. At the
moment, the implementation of the Dayton
Agreement, the implementation of the program
instruments of international donors and the legal
instruments of 2001-2006 years in the Brcko
district have formed successful experience only
in the part concerning military issues (dissolving
enemy parties, moving heavy weapons), but still
remain unresolved problems of socio-economic
character, returning refugees and displaced
persons. arrest of war criminals, creation of
effective and non-corrupt local institutions of
government, removal of shadow economy
(Bagatsky, 2016).
Serbia also created free economic zones in the
post-war period, which became an effective
instrument of efficient economic management in
the destroyed territories by increasing their
inflow of investment, increasing exports and,
consequently, improving the balance of
payments of the whole country. Other territories
of Serbia, characterized by a reduced level of
development compared to other regions, are
Vojvodina, where except for Serbs, which make
up 65% of the total population live in
Hungarians, Croatians, Ukrainians, Slovaks,
Gypsies, Romanians and Germans (International
Crisis Group, 1998), which occasionally leads to
a conflict of interests in one or another sphere.
That is why in recent years the territory has
started to face uneven employment among
representatives of different national groups,
which is the main destabilizing factor of
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development. This imbalance in the labor sector
leads not only to a lack of income, but also to a
lack of strength and independence, since the
problems of national minorities are generally
neglected at all levels of government (Club
Advanced, 2014).
In this context, the experience of South Tyrol, on
the territory of which the phenomenon of "Tyrol
separatism" appeared, connected with presence
in the border areas of Italy of the German-
speaking population, is important. The South
Tyrol conflict arose in 1919 after the accession of
South Tyrol to Italy at the end of the first World
War – the region in the Alps, which for almost
600 years was part of Austria with a
predominantly German population (95%). At the
same time, the Italian government tried to pursue
a policy of forced marginalization in the region,
which led to the explosion of violence and the
beginning of terrorist attacks. The conflict was
particularly acute between 1956 and 1988, during
which time the separatists of South Tyrol carried
out more than 360 terrorist attacks, the victims of
which were dozens of people, significant
destruction of infrastructure. For instance, from
June 11 to 13, 1961, during the so-called "night
of fire", the separatists broke 50 poles of electric
transmission, removing the industrial region of
Italy Bolzano electricity and interrupting the
railway connection.
Despite the fact that under pressure from the UN
the parties reached an agreement in 1969, having
signed a "peace pact", this confrontation lasted
until 1992, and de jure ended in 2001, when
South Tyrone gained an expanded autonomous
status, which includes the legislative status and
mechanisms for the protection of national
minorities in all spheres of life. Today South
Tyrel is one of the richest regions of Italy and in
order to avoid conflicts in the economic sphere,
in 2019 the following preferences were
introduced:
− the province receives almost all revenues
from state taxes collected in South Tyrol, as
well as abroad, while only 1/10 revenues are
kept by the state to finance its own powers,
which emphasizes the financial autonomy of
the given territory;
− only in this region German language is equal
to Italian and recognized as official
language, which can be applied in
administrative, criminal, judicial, law
enforcement and other spheres of life.
− the composition of the authorities of South
Tyrol and the police should correspond to
the numerical proportions of the national
language groups living on this territory
(Bortnyk, 2022).
Over the past few years, it has become
increasingly possible to hear about Catalonia’s
attempts (an autonomous region of Spain) to gain
full independence and finally to separate itself
from the state. In 2006, the autonomy of this
region was extended, enabling the creation of its
own tax administration and the introduction of a
new model of distribution of tax revenues, in
particular from value added taxes and corporate
profits. The aim of this specific practice was to
displeased the local population with the flow of
money from Catalonia. Even though today
Catalonia’s economy is on the rise (2021 gross
regional product growth of 2,7% per year is
recorded), representatives of local authorities are
seeking to introduce special tax preferences and
separate regime of economic activity on the
territory of the region through the unfair system
of distribution of the state budget. It is a matter
of fact that in Spain this system functions at the
expense of basic and reverse subsidies, which are
considered as a mechanism of levelling and
horizontal planning of tax capacity of individual
regions of the country and are two opposite
financial flows. For Catalonia, the reverse
subsidy is about 120% of the country’s average
level, and the subsidy is 100% and less, which
means that Catalans pay more than others to the
country’s overall budget, but get less (Kusch,
2017).
An important case concerning the peculiarities of
economic activity due to a war or military
conflict is observed in Spain, which belongs to
the region of "Basque country" (or as it is called
Spaniards – Baskonia), known by separatist
processes, which were developed on the basis of
ethnic cultural differences, reinforced by
ineffective state policy and economic problems.
However, Spain, as a unitary state, was able to
find a political solution – to determine the special
status of autonomy for the Basque country.
After the end of the Second World War, the
Basque country was founded initially by the
nationalist organization "eta" (bask. "Euskadi ta
Askatasuna"; eng. “Basque country and
Freedom”), which later transformed into a
military organization, which was forced (often
terrorist) to separate the region from Spain in
order to create an independent Basque state. The
organization opened a terrorist and partisan war
against the authorities, which killed about a
thousand people. As a base of operations, it used
the border areas of France, where there are also
many Basque people. Peaceful negotiations with
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the EU have repeatedly been frustrated, and the
level of distrust between the representatives of
Spain, the Basques, was extremely high, which
was complicated by the absence of rational
negotiating parties. In 1978, the Spanish
government took a huge risk – the new
constitution of the country consolidated the
autonomous status of the Basque country, which
significantly reduced the social support of the
Basque radical separatists and led to the
formation of a legal political entity – the Basque
nationalist Party, which enjoys the support of the
population of the region, and is also a guarantor
for integration and political dialog with Spain
(Bortnyk, 2022).
The Statute of autonomy, which was agreed upon
for the Basque country, gave it an exclusive
jurisdiction on issues affecting social security,
health care, welfare, labor relations and working
conditions, education, culture, communications,
environmental protection, control over transport
and agriculture and fisheries. This meant that the
Basques could have freedom in both cultural and
economic matters.
An interesting development concerning the
peculiarities of the economy was in Ukraine
during 2014-2022. In 2014, Russia occupied
Crimea and part of Luhansk and Donetsk
regions, so after the end of military actions in the
East of Ukraine for a long time the state has
promoted intensification of economic activity in
these territories. Only in 2020 the Concept of
Economic Development of Donetsk and Luhansk
Regions was approved. The purpose of the
Concept was to define conceptual approaches
and main directions of development of the
Strategy of economic development of Donetsk
and Lugansk regions for creation of normative-
legal, institutional and organizational conditions
concerning formation and development of
economy of Donetsk and Lugansk regions on the
basis of complex introduction of separate system
of management and organization of economic
processes with wide attraction of investment
resources, that will become the basis for the
ahead development of territorial communities of
Donetsk and Luhansk regions, providing
comfortable living conditions, self-realization,
development of citizens and improvement of
their quality of life, and later full-scale
reintegration of temporarily occupied territories
after their return to the unified constitutional
space of Ukraine (Order No. 1660, 2020).
And in 2021 the Strategy of Economic
Development of Donetsk and Lugansk regions
was developed and approved till 2030. The
strategy envisages the introduction of special
conditions and formation of priority development
areas, the state stimulation of development and
implementation of new economic development
models, which will serve as a unifying
mechanism based on a simple and clear logic —
community development to create comfortable
conditions for citizens and improve their quality
of life through efficient economic management
(Decree No. 1078-r., 2021).
Creation of priority development areas will be
with three levels of special regimes on the
territory of communities adjacent to the line of
demarcation with temporarily occupied
territories, on the whole territory of Donetsk and
Luhansk regions, on the territory of separate
production and recreational clusters, in particular
innovation and industrial ones, which will
provide for creation of incentive conditions for
each separate type of level. Also, an experiment
will be introduced in priority development areas
to create opportunities to change the control
system on the part of state authorities to the
function of voluntary liability insurance of
business owners. However, due to the beginning
of the full-scale war against Ukraine on February
24, 2022, this strategy was not implemented.
Thus, the main feature of efficient economic
management in the post-war period is restoration
of destroyed territories – regions by means of
introduction of special legal regime of economic
management, figure 2.
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Figure 2. Features of efficient special mode of economic development in the post-war time: legal
experience (source: own processing)
The main criterion of the efficiency of economic
management in the post-war period is the
improvement of the quality of life of the
population. The quality of life is estimated by the
following dimensions: cost of life, purchasing
power, security, health care, ratio of real estate
price and income, travel time, pollution level,
climate conditions.
Numbeo is the world’s largest cost of living
database as well as a crowd-sourced global
database of quality-of-life data: housing
indicators, perceived crime rates, healthcare
quality, transport quality, and other statistics
(Numbeo, 2022). The quality of life index is an
estimation of the overall quality of life by means
of an assessment formula that takes into account
the index of purchasing power (the higher the
better), the index of pollution of the environment
(the lower the better), the ratio of housing price
to income (the better), the index of cost of living
(the lower the better), the index of safety (the
higher the better), the health care index (the
higher the better), the travel time index (the lower
the better) and the climatic index (the higher the
better). The quality-of-life index in Europe as of
mid-2022 and its ranking are shown in table 1.
Table 1.
Quality of life Index in Europe as of mid-2022
Rank
Country
The quality-of-
life index
Rank
Country
The quality-of-
life index
1
Switzerland
195,06
19
Belgium
155,76
2
Denmark
194,15
20
France
152,74
3
Netherlands
191,46
21
Latvia
152.22
4
Finland
186,84
22
Ireland
151,73
5
Iceland
184,48
23
Slovakia
150,50
6
Norway
179,63
24
Italy
137,27
7
Germany
178,32
25
Hungary
136.22
8
Austria
178,06
26
Poland
132.16
9
Estonia
173,83
27
Romania
131.09
10
Luxembourg
173,76
28
Bosnia and
Herzegovina
129,37
11
Sweden
173,71
29
Bulgaria
128,96
12
Spain
173,01
30
Greece
127.08
13
Slovenia
168,74
31
Serbia
120,40
14
United Kingdom
164,80
32
Ukraine
112.06
15
Czech Republic
163,78
33
Northern
Macedonia
109,82
16
Lithuania
162,95
34
Belarus
109,60
17
Croatia
162,74
35
Malta
106.08
18
Portugal
162,17
36
Russia
103.19
(Source: own processing based on (Numbeo, 2022)
170
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According to the data of Table 1 in Ukraine, the
quality-of-life index of the population is very low
– 112.06. It ranks 32 among the countries of
Europe: this low standard of living is due to the
war that is now taking place in Ukraine.
Conclusions
The conducted research of experience and
peculiarities of management in the post-war
period in different cabs of Europe allowed to
make the following conclusions. The military
conditions of economic activity make it
necessary to apply special methods, tools and
approaches to the development of the country's
economy, which was destroyed by war. The work
of many scientists, devoted to problems of
support of enterprises and certain branches of
economy, is traced first of all to the fact that
support of producers is related to their own
support by the state. The economic opinion of the
redrawn problem is characterized by quite
different, often even opposite, views.
The difference of approaches to special mode of
economic development in the post-war time is
that destruction or destruction of economic
activity occurs on local territories, not on the
whole territory. Therefore, the peculiarities of the
management in the post-war time have territorial
differences. And every country uses its
instruments to build up its economy in the post-
war period. However, it can be argued that
economic and legal aspects should be included in
the general features of economic management in
the post-war period. And effective economic
management in the post-war period is possible
only by the results of analysis of the state of the
country's economy after the war for adaptation,
improvement of the current legislation on
economic recovery, search of ways of
development of all kinds of economic activity in
order to improve the quality of life of the
population.
The analysis of the results of the post-war period
in the European countries proved that Bosnia and
Herzegovina faced three major post-conflict
challenges, which are more or less characteristic
of many post-conflict areas (especially in
developing countries): First, programs of
reconstruction and rehabilitation of affected
areas, covering military losses were to be
implemented; secondly, to develop a new
management structure at both the state and local
levels; thirdly, to ensure effective management
and the process of transition of the country to a
market economy, in the context of creating
opportunities for employment of refugees,
displaced persons and demineralized soldiers.
And the main result of the restoration of Bosnia
and Herzegovina in full time was the
establishment of the Brcko district, which had
excellent economic conditions, i.e., the
construction of incentives for economic recovery
of the territory.
Serbia also created free economic zones in the
post-war period, which became an effective
instrument of efficient economic management in
the destroyed territories by increasing their
inflow of investment, increasing exports and,
consequently, improving the balance of
payments of the whole country. This instrument
was used in Italy, Spain and other European
countries. This tool – the formation of priority
development areas or territories with special
development conditions, Ukraine was also trying
to use.
The quality of life of the population is defined as
the main criterion of efficiency of management
in the post-war period. The ranking of the
quality-of-life index in European countries by
mid-2022 made it possible to establish that
Ukraine has a very low index of quality of life,
which is due to the war that is currently taking
place in Ukraine.
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