Samizdata quote of the day – Markets are discovery mechanisms even during wartime

Ukraine began the war with a traditional military procurement system. Large, standardised orders from suppliers chosen by the defence ministry with no room for adjustment to individual circumstances. Ukraine’s key innovation was to decentralise military acquisition, placing the funding and decision-making power in the hands of military commanders on the front lines.

Enabled by their earlier implementation of a public electronic procurement system Prozorro, groundbreaking in its own right by allowing greater price competition and transparency, Ukraine launched DOT-Chain Defence in July 2025. Perhaps best described as an ‘Amazon’ for weapons systems, Military units independently select, order, and reserve the necessary equipment, see delivery timelines, leave feedback, and receive quick responses. The system is designed to eliminate unnecessary bureaucracy and allow frontline brigades to order in exactly the resources they need at any given time with minimal delay. If a product is low-quality individual units will cease to order it as soon as battlefield conditions expose its flaws, providing rapid feedback to manufacturers to improve their products.

The e-points system is another recent deployment. A unit carries out a combat mission and uploads video proof of its achievements, targets destroyed etc., to the DELTA combat and control system. The unit is then awarded e-points at the end of the month, a virtual currency which it can use to purchase the weapons systems of its choice.