THE ESSENCE OF STATE FINANCIAL SECURITY AND MODERN APPROACHES TO ITS MANAGEMENT

Abstract

The paper offers a detailed exploration of the theoretical foundations and practical strategies for ensuring a state's financial security, particularly during times of significant upheaval such as wars, pandemics, or economic crises. Its relevance is underscored by the pressing need to address financial vulnerabilities in nations facing existential threats, with a specific nod to Ukraine’s experience amid ongoing war. This study highlights how financial security transcends mere economic stability, emerging as a critical pillar for national resilience in turbulent times, making it a vital topic for both academic inquiry and policy-making.

The research aims to consolidate diverse scholarly perspectives on what constitutes financial security for a state and to assess the efficacy of current management strategies under extreme conditions. Methodologically, the study relies on a blend of approaches, including a thorough examination of existing literature, synthesis of theoretical constructs, and a comparative evaluation of different conceptual models. It is emphasized that financial security should be viewed as a core value during crises, rather than just a technical objective. The study outlines four theoretical lenses: ontological, epistemological, praxeological, and axiological, each shedding light on different facets of financial security, with the axiological perspective gaining prominence in wartime contexts as it positions financial security as essential to a state’s survival. Additionally,it is evaluated four management approaches: systemic, institutional, process-oriented, and functional. The last one, which focuses on harmonizing macroeconomic policies like fiscal and monetary measures, is recommended as the most adaptable and effective for crisis scenarios, despite challenges in execution. It is asserted that financial security is a universal value reflecting a nation’s economic health and resilience, advocating for a coordinated, functional management framework to navigate existential challenges. It calls for further exploration into quantifiable indicators and crisis-response models to enhance future strategies.