NON-ECONOMIC FACTORS IN INTERNATIONAL CAPITAL FLOWS IN THE CONTEXT OF MODERN WORLD DEVELOPMENT

Abstract

The factors in international capital flows are studied, with an emphasis on their non-economic components. It is determined that non-economic factors influencing capital flows have a content that comes from political, military, climatic and other, at first glance unrelated to the economy, spheres, especially when considering the economic sector at the level of an individual country. At the same time, historical experience shows that non-economic factors influence international capital flows no less than economic ones. Non-economic factors can also be characterized as extremely unexpected and not predictable by any forecasts.

The features of international capital flows in the context of modern world development are outlined. Traditional non-economic factors are events associated with natural disasters, which certainly affect the economic sphere. Non-economic factors include events in the health sector, which have an extremely negative impact not only on economic development, but also on all humanity as a whole. This refers to the coronavirus pandemic, which broke out unexpectedly and led to considerable losses and changes in the balance of economic forces in the world. The war as a non-economic factor in the international capital flows has caused an increase in the inflow of international capital into Ukraine, but such inflows have the character of external sources of finance, mainly for the state budget of Ukraine in the form of loans and grants.

Some aspects of foreign capital participation in the post-war reconstruction of the Ukrainian economy are considered, in particular, the issue of foreign aid in the formation of the revenue part of the state budget, sanctions policy against the aggressor country and control over the legal purity of resources that will arrive in the post-war period.