“War is a losing proposition”
Why do nations wage war, even though it results in the destruction of enormous sums of money? And why doesn’t a war simply end when its costs keep rising? Military conflicts are driven not only by power politics and strategy, but also by economic constraints. The situation becomes particularly explosive when a war economy develops a momentum of its own and peace itself suddenly becomes an economic risk.
“The moment you launch a war economy, you can’t just walk away from it.”
Ulrike Herrmann examines precisely these mechanisms from an economic perspective. In a conversation with Georgiy Michailov, the business journalist and author explains why she views Russia’s war as a consequence of long-term economic problems and why the transition back to a peacetime economy could trigger inflation, unemployment, and political instability. She also demonstrates why Russia and China have taken completely different economic paths despite their authoritarian structures. Furthermore, Georgiy Michailov and Ulrike Herrmann discuss corruption as an instrument of power, China’s export-driven economic model, and the climate crisis.
*Video only in German
SMP LeaderTalks
