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US military presence historically promoted economic growth in most host countries. Is now Ukraine’s turn?

Writer: EntrypointEntrypoint

Over 200,000 American military personnel are deployed overseas, most of them in allied nations. The US spends over $60 billion annually on this forward posting, not including combat operations.


Empirical studies have shown that the United States military presence in third countries positively impacts hosts’ economic growth. A significant US military contingent usually brings stability and additional orders to the local economy. However, one crucial prerequisite, supported by the research, is that the host country must voluntarily allow military presence and bases.


It is difficult to predict the arrangements and post-war dynamics following the eventual cessation of large-scale fighting resulting from Russia's full-scale invasion of Ukraine. However, it is evident that if Ukraine’s allies elect to bolster their military and economic presence in the country to ensure peace, this would be welcomed by the population and would benefit Ukraine’s economy. Support for NATO, effectively the US/EU/UK military alliance, rose among Ukrainians to nearly 80% in 2023 from about 30% in the mid-1990s.



Notably, most nations that host Russian bases (https://en.wikipedia.org/wiki/List_of_Russian_military_bases_abroad) have problems with sustainable economic development, not to mention the presence of sound democratic rule. And the withdrawal of Russian troops often coincides with the acceleration of economic growth, like in Eastern Europe and Vietnam.

 
 
 

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