Avanesova N.E.

Ph.D., assistant professor of finance and credit

Kharkov State Technical University of Civil Engineering and Architecture

Kharkov, Ukraine

ECONOMIC SECURITY: CONTEMPORARY REALITIES IN DEFENCE SPHERE OF UKRAINE

Given the scientific and technical, financial and economic situation of the defence industry, it is clear that the technical basis of armed forces of Ukraine today and in the future amount of weapons and equipment that are left in Ukraine after the Soviet collapse. The problem in organization of their own production, despite its importance and relevance, can be resolved only after overcoming the economic crisis and a significant increase in budget funding for procurement of weapon systems and carrying out research and development work.

The main ways of keeping the technical basis of armed forces of Ukraine presented in figure 1[6].

Скругленный прямоугольник: MAIN WAYS OF MAINTENANCE DESIGN BASICS OF THE ARMED FORCES OF UKRAINE 

 

 

 

 

 

 

 

 

 

 


Fig. 1 - Main ways of maintenance design basics of the armed forces Ukraine

 

In modern conditions of society national security is measured in terms of non-coercive component of implementation, such as economic, foreign political, social, and environmental, information security and more. Thus, if in the first half of the twentieth century dominant public policy was intense growth of industrial and defence complex, then in the second half of the twentieth century the top priority is economic security [4].  Change of priorities in national security due to many reasons (Fig. 2).

 

 

 

 

 

 

 

 

 

 

 

 


Fig. 2 - Causes of changes in Ukraine’s national security priorities

 

Therefore, it is advisable to treat national security as the state's ability to respond to internal and external destabilizing factors, manifested in the form of economic, social, political, military and other threats, the presence of which can lead to profound social and economic upheavals and disturbance of integrity.

The security of the state in all its formations implemented through appropriate public funding, based on a set gross domestic product, so the most important part of it is economic security. It is characterized by such state of the national economy, which makes it possible to keep stability of internal and external threats, provides a competitiveness of state and its independence from the environment and economic well-being of the population. Fig. 3 shows the main characteristics of economic security of Ukraine.

 

 

 

 

 

 

 

 

 

 

 

 


Fig. 3 - Characteristics of Ukraine’s economic security

 

In order to provide reasonable suggestions for implementation of priority measures to implement the public policy interest in ensuring economic security, it would be appropriate to monitor key indicators of economic performance (Fig. 4). The most important is the gross domestic product and balance of payments. All other indicators are derivatives.

GDP according to preliminary estimates at 8% in 2009 gives reason to conclude excessive dependence of economic conditions in the country from external factors. This is primarily due to the orientation of the Ukrainian economy on exports. On the one hand, this is a positive aspect, but only with one important condition: if product intended for export, is competitive. On the other hand, undeveloped internal market is unable to provide the demand for domestic products. [3]

 

 

 

 

 

 

 

 

 

 

 

 

 


Fig. 4 - Indicators of economic performances that are needed for monitoring

 

Current account balance also largely reflects the level of economic security. A positive value of this index indicates the influx of financial resources to increase its solvency and reduce dependence on external funding sources and strengthen the national currency. However, a negative value registered in 2014 [1] at the level - 12.9 billion dollars of USA (7.1% of GDP) led to a drop in purchasing power of citizens, hryvnia devaluation, reducing gold reserves of NBU, which generally forms a threat to the national interests of Ukraine and its security.

The unemployment rate, which according to the ILO methodology is 9.4% (more than 4 million pers.), shows considerable tensions and instability in the country, and thus the ability to manipulate people to weakening of state control over the processes taking place in the country .

Therefore, to ensure a certain level of economic security related to restructuring and increased competitiveness of the national economy is the main focus of government policy on national security.

Thus, in the present realities of society, priority of national security is state's ability to withstand external and internal destabilizing factors, manifested in the form of economic upheavals; minimization of dependence on external conditions by structural adjustment, economic modernization and expansion of the internal market.

LIST OF REFERENCES

1.            «Авiакон» встановив на вертольоти мiноборони пристрої для захисту вiд ПЗРК // офіційний сайт ГК "Укроборонпром" від 8 серпня 2014

2.            Горбулин В.П. Оборонное строительство в Украине. Проблемы развития ОПК и подходы к их решению / В.П. Горбулин // Стратегическая панорама. - 2013. - № 3. - С. 125-133.

3.            Грицак П. Процес інтеграції Польщі до НАТО та її роль в Альянсі // Сучасність. – 2006. - № 12. – С. 84 – 94.

4.            Закон України «Про оборону України» від 06.12.1991 № 1932-XII (Редакція станом на 17.05.2014) // Електронний ресурс - http://zakon4.rada.gov.ua

5.            Про основи національної безпеки України від 19.06.2003 № 964-IV Закон України // Електронний ресурс - http://zakon4.rada.gov.ua

6.            Про особливості управління об'єктами державної власності в оборонно-промисловому комплексі від 16.06.2011 № 3531-VI Закон України // Електронний ресурс - http://zakon4.rada.gov.ua

7.            Lens S. The Military-Industrial Complex. Philadelphia, 1970. P. 145.

8.            Trends in World Military Expenditure, 2013. SIPRIFactSheets. April 2014.

9.            War, Business and American Society. Historical Perspectives on the Military-Industrial Complex. Ed. by B.Cooling. New-York, 1977. P.4,43.