INSTITUTIONAL DEVELOPMENT AS A KEY FACTOR IN ENSURING ECONOMIC SECURITY UNDER TRANSFORMATIONAL PROCESSES OF NATIONAL STATE-BUILDING

Abstract

Having adapted to the initial shocks of the full-scale invasion, the national economic mechanism is gradually transitioning to a wartime economy. This simultaneously creates threats to the country’s economic security and necessitates scientific and practical recommendations for addressing systemic problems and setting strategic priorities for the further transformation of Ukraine’s economy and society during the war and the post-war recovery period.  The purpose of the article is to deepen the theoretical and methodological foundations and develop practical recommendations regarding institutional development as a key factor in strengthening economic security. The object of the research is the process of developing the institutional structure of economic security under transformational changes. Methods used in the study: The theoretical and methodological basis of the study consists of general scientific methodology, combining general and special research methods. The use of analysis and synthesis, historical and logical methods, induction and deduction made it possible to uncover principles and tools for strengthening the institutional structure of economic security.  Research hypothesis: It is assumed that economic security can be ensured by strengthening the institutional structure. Main content. The paper reviews statistical data on the country’s economic condition. It examines institutional regulation of economic recovery processes during wartime and the post-war recovery of the national economy. It also offers proposals for addressing institutional development tasks through the formation of a regional body for recovery and reconstruction, involving civil-military cooperation and the use of PMESII-PT analysis. Originality and practical significance: The study substantiates the necessity of institutional development as a factor ensuring economic security, which forms the basis for enhancing security activities and economic growth. Conclusions. It is argued that institutional development through a specialized regional regulatory body in the field of recovery and reconstruction, involving civil-military cooperation and PMESII-PT analysis, will allow better use of local economic potential, foster shared understanding among regional and local authorities, businesses, experts, and others, and enable the implementation of effective mechanisms to protect the socio-economic system from internal and external disruptive factors. Further research. Will address the prospects for Ukraine’s economic recovery during and after the war, as well as the development of key principles of state spatial development policy, its mechanisms, and implementation tools.