POLITICAL INSTITUTIONS AS THE FOUNDATION OF ECONOMIC STABILITY IN THE FACE OF GLOBAL CHALLENGES

Abstract

The article analyses the role of political institutions in ensuring the economic security of the state in the context of globalisation. It analyses the mechanisms through which political institutions influence economic stability by ensuring legal regulation, supporting democratic principles, the rule of law and effective response to economic crises.The article examines the classification of political institutions according to functional, organisational, territorial and historical criteria. It highlights the main functions of political institutions in creating a favourable investment climate and maintaining stable economic relations, which contributes to ensuring the economic stability of the state.It has been proven that effective political institutions are key factors in the adaptation of the national economy to internal and external economic challenges. The article assesses the ability of political institutions to respond quickly to economic shocks, including global financial crises, trade wars and sanctions.It concludes that the institutional quality of state bodies is critically important for ensuring economic security. It emphasises that the transparency, accountability and democratic nature of political institutions ensure stability and promote long-term economic growth, while centralised authoritarian institutions can only be effective in the short term.The key characteristics of political institutions that influence their ability to ensure economic security are identified: effective resource management, protection of property rights, curbing corruption, supporting social stability, and creating conditions for the development of international trade.It has been determined that political institutions must be flexible and adaptable to changes in the external environment in order to effectively manage economic processes. Directions for further research on the relationship between political institutions and economic security, taking into account different political regimes, have been proposed.