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0 pointsdimitar8y ago0 comments

It is a major cause of potential social instability.

The conflict in Donbass also has a similar interpretation: coal production there peaked in the late 70 and by the 90 it was an endlessly subsidized rust belt, with a significant minority of the population being born outside Ukraine. It is a backwater hopelessly reliant on outside help, with widespread violent crime, alcoholism, drug use and corruption. It is these rust belts that lower the statistics for the whole Eastern Europe. Young people were leaving it in droves long before the current conflict began.

The disruption by current separatist governments (commanded and supplied by the Russian Federation) have made the decay much quicker - around half the population has left, with a big part of the people remaining being seniors who cross checkpoints to collect their pensions.

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WillyOnWheels8y ago

I hate GDP statistics but it is generally understood that the Donbass' mining and heavy industry account for about 1/4 of Ukraine's GDP and 10 percent of Ukraine's population.

You may think it's a backwater but people actually live and work there.

dimitarOP8y ago

Yes, these two oblasts are a great reason not to look solely at GDP figures.

It is largely a statistical illusion - a huge part of Ukrainian economy is in the gray sector. However government transfers, budget spending and industry does show up in statistics.

The two Donbass oblasts actually scored high on GDP per capita, but had much lower quality of life indicators. A large reason for this disparity in income is government transfers, like the big pension and health benefits provided to mine workers. You also had huge indirect transfers like the government propping up failing enterprises and buying production from the regions industrial oligarchs.

thriftwy8y ago

> it was an endlessly subsidized rust belt

BTW, Russia reformed their coal production by closing unprofitable mines and selling the rest. Now producing more coal for less money without subsidies. Ukraine did not and largely kept Soviet mine system intact.

> backwater hopelessly reliant on outside help, with widespread violent crime, alcoholism, drug use and corruption

You have combined "basket of deplorables" reasoning with divisive Ukrainian nationalism to achieve a new low.

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