Recently, some observers have praised Russia's recent economic growth and described it as a model of "military Keynesianism." The narrative stems from the fact that the United States used military spending to stimulate the economy during the Cold War, and Russia now appears to be experimenting with similar tactics. We need to go deep into whether Russia's "military Keynesianism" can be sustained and really drive its economic growth.
Military spending can indeed stimulate the economy in the short term. Military procurement, technology research and development, and infrastructure development all contribute directly to economic growth. We need to think about whether this growth is sustainable and whether it is truly conducive to the long-term health of the economy.
Investment and consumption are the two main drivers of economic growth. In the case of Russia, military spending does stimulate investment, but this is mainly focused on the military and related areas. For the population at large, this investment does not directly benefit and may even lead to a squeeze on investment in other areas. High military expenditures are likely to increase fiscal pressures and affect the delivery of other important social welfare and public services.
From a consumption perspective, while military spending can create some jobs, these jobs tend to be confined to specific sectors and regions, and have a limited impact on the overall consumer market. High military spending could lead to an increase in the cost of living, which could dampen consumption.
Russia's "military Keynesianism", while it may bring economic growth in the short term, may have a negative impact on economic structure and social stability in the long run. In order to achieve true sustainable development, Russia needs to find a balance between military spending and investment and consumption in other areas.
Russia's "military Keynesianism", although it has promoted economic growth to a certain extent, is not a long-term sustainable development strategy. In order to achieve real economic prosperity and stability, Russia needs to think more comprehensively about its economic structure and development strategy.
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