THE ROLE OF THE MILITARY SECTOR IN ECONOMIC POLICY: A HISTORICAL PERSPECTIVE

Abstract

This article presents an in-depth historical and economic analysis of the military segment as a structural element of economic systems across various historical epochs and political regimes. The dual nature of militarization is examined: on one hand – as a driver of economic stimulation, industrialization, and technological progress; on the other – as a source of resource depletion, budgetary imbalances, social inequality, and repressive state control. The article analyzes the historical dynamics of the interaction between war, economy, and politics, highlighting the close intertwining of military power with economic efficiency. A comparative analysis of the militarization of the economies of the USSR, fascist Germany, and North Korea is conducted. In these cases, militarization served as an instrument of political control and geopolitical pressure, while simultaneously contributing to institutional decline, disruption of social balance, and technological stagnation of civilian sectors. The role of the military sector in the cyclical growth of capitalist economies is also examined, particularly in the context of private business, which reaped superprofits during armed conflicts – raising moral and ethical controversies. The article explores the economic consequences of the arms race, the transformation of the military-industrial complex into a dominant force in planned economies, and the impact of military expenditures on other sectors such as the social sphere, education, and healthcare. The paradoxes of militarization are identified – its ability to simultaneously stimulate production and deepen crises, create jobs and undermine human capital, promote innovation and contribute to the dehumanization of society. The article substantiates the need to balance the military segment within the national economy, taking into account security challenges, humanitarian priorities, and strategic resilience.