National Interests: Priorities and Security

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Political and economic analysis of macroeconomic aspects of military-economic relations in the face of current confrontation between Russia and the USA, or the main liberal myths revisited

Vol. 15, Iss. 4, APRIL 2019

Received: 31 January 2019

Received in revised form: 22 February 2019

Accepted: 18 March 2019

Available online: 15 April 2019


JEL Classification: E69, F52, F53

Pages: 596–628

Vikulov S.F. 46th Central Research Institute of Ministry of Defense of Russian Federation, Moscow, Russian Federation

ORCID id: not available

Gorgola E.V. Moscow Regional Institute of Management and Law, Ivanteevka, Moscow Oblast, Russian Federation

ORCID id: not available

Subject One of the main tasks of economic policy is full-scale national security, which requires maintaining the competitive ability of the entire high-tech facilities of the country. However, the growing literature indicates that the economic greatness of the USA is exceptional and it is impossible to achieve parity in the production of military and special-purpose equipment.
Objectives The study focuses on a comprehensive analysis of issues related to the ratio between GDP and GNP of the USA and the Russian Federation, their military expenditures, military budgets and efficiency of their use, military production and its role and place in the national economies.
Methods The paper employs methods of historical and logical analysis (generalization, comparison, deduction).
Results The reasoning given in the article convincingly exposes and refutes the allegations and shatters myths about the economic greatness of the USA and the omnipotence of the American military-industrial complex. The study shows that the GDP/GNP indicators do not fairly reflect either the degree of the country's potential realization, or the strength and effectiveness of its economy.
Conclusions The model of Russian economy development that rests on raw materials exports has reached its limits. It is crucial to implement progressive economic restructuring, ensure economic and financial independence, increase the share of advanced and less capital-intensive industries, develop science and technology.

Keywords: military expenses, arms production, GDP, military-industrial complex


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