METHODOLOGY FOR ASSESSING THE INSTITUTIONAL CAPACITY TO ENSURE THE STATE'S ECONOMIC SECURITY

Abstract

The purpose of this study is to develop a comprehensive methodology for assessing the institutional capacity to ensure the economic security of the state. The relevance of the chosen research topic is determined by the growing need to counteract modern hybrid, geopolitical, and economic challenges in the context of global instability, military conflicts, and digital transformation. Traditional approaches mostly focus on calculating macroeconomic indicators, whereas the institutional readiness of public authorities to implement proactive and anti-crisis measures remains insufficiently evaluated. Consequently, a shift from assessing isolated state bodies to analyzing the entire security system as a holistic mechanism is critically required. To achieve this goal, a multifaceted methodology was applied, combining institutional, systemic, functional, and risk-oriented approaches. The assessment model is built upon comparative analysis of international public governance standards and specific economic security requirements. The research employs mathematical classification and indexing methods to construct a composite indicator. Specifically, the method of linear Min-Max normalization was utilized to transform heterogeneous data into a unified dimensionless scale, followed by an additive convolution technique. Expert evaluation methods were also used to assign weight coefficients to each structural component based on its significance in the overall system.The results of the study indicate that institutional capacity should be evaluated through a system of six interrelated functional components: regulatory, organizational and managerial, human resources, financial, information and analytical, and coordinative. Each of these components reflects a critical aspect of public administration functionality, ensuring that state institutions do not duplicate efforts but instead create a synergistic effect. Furthermore, the research proposes a mathematical framework for calculating an integral indicator of institutional capacity. To provide a meaningful interpretation of the obtained numerical values, a modified verbal-numerical desirability scale was adapted specifically for the economic security sector. This adapted scale categorizes the institutional capacity into four distinct levels: critical, satisfactory, sufficient, and optimal. For each level, corresponding vectors of managerial response have been defined, ranging from immediate anti-crisis structural reforms to the maintenance and scaling of successful innovative practices. The practical value of the obtained scientific results lies in the provision of a universal analytical tool for continuous monitoring of institutional capacity at various levels of public administration. The developed methodology allows government agencies to identify structural imbalances at an early stage, evaluate the effectiveness of state policy implementation, and prioritize institutional reforms. Ultimately, this framework serves as a robust information and analytical foundation for making scientifically grounded managerial decisions, ensuring the resilience and adaptive capability of the national economic security system against emerging contemporary threats.