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How Ukraine Built a War Fighting State

Austin Vernon · 10 Jul 2026

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  1. Adverse selection is also present in resupply for items like drones. There is extreme variance in drone team efficacy, and poorly performing teams waste limited resources. The solution was a market and "currency" for units to buy equipment and supplies.
  2. In essence, the West has found its comparative advantage in providing financial resources and information, while the Ukrainians specialize in defense production. Ukraine would lose the war without this symbiosis.
  3. The downside is that Ukrainian strategic victory relies on a Russian collapse. The Ukrainians seem to lack the ability at this time to conduct a theater-wide, combined arms offensive with tactics and weapons adapted for drone warfare.

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