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Article Concerning the Transformation of Contractual and Organizational Means of the State’s Economic Policy of Wartime
Authors OLEG PODTSERKOVNYI
Name of magazine Legal journal «Law of Ukraine» (Ukrainian version)
Issue 10 / 2023
Pages 9 - 23
Annotation

The article examines the primary measures to improve state’s economic policy in the field of concluding and executing defense contracts in wartime conditions.

The purpose of the article is to determine promising directions for the coordination of contractual and organizational aspects of the wartime state economic policy in order to increase the production and supply of military and related products to the Defense Forces.

It was established that the unlimited duration of the Russian-Ukrainian war requires the transfer of the economy to mobilization rails and the construction of a rational model of contractual relations between the state and business entities while ensuring the needs of national defense.

 Directions for revising the mechanisms of state contact of defense products are proposed, taking into account the experience of the USA and Great Britain during the Second World War regarding “cost-plus contracts” and “cost-plus-fixed-reward” contracts, which increase business interest in the accelerated production of weapons, ammunition and related goods.

It was concluded that the transformation of the defense order system should involve a combination of contractual and organizational means of ensuring the fulfillment of the state defense order. This requires expanding the obligations of state customers to protect production and provide executors of state defense orders with underground storage facilities, centralized technology transfer, state assistance in purchasing raw materials, coordination of supply chains, elimination of customs barriers, certification and permits, creation of quality control infrastructure, etc. To implement these ideas, it is proposed to expand the provisions of the Economic Code of Ukraine regarding the organizational component of concluding contracts on state defense orders.

 It is substantiated that the decodification proposed by draft law No. 6013 “On the peculiarities of the regulation of business activity of certain types of legal entities and their associations in the transition period” directly contradicts the needs of implementing the state defense order, weakening the role of the state in the economy and provoking economic instability.

It was determined that it is necessary to strengthen the ability of economic legislation to meet the needs of the military economy, including by returning to the institution of state tasks, which was excluded from the Civil Code of Ukraine in 2005 and which should be deemed mandatory for business entities all forms of ownership during martial law. After all, it is able to direct the state’s economic policy during the war to increase the defense capability and the efficiency of the use of limited resources.

 

Keywords war economy; state defense order; defense procurements; ammunition production; economic legislation
References

Bibliography

 

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