Generolo Jono Žemaičio Lietuvos karo akademija

The individual principles of the cyclical course of economic processes in modern economic conditions were considered. The existing theories of economic (business) cycles were analyzed. The financial economy was defined as a component of the security of financial flows. The factors of strengthening (weakening) of the interaction of financial flows in the economy and their safe movement support were characterized. The effect of multiplication of financial flows for individual stages of the economic cycle was disclosed. The specifics of complex security of the movement of financial flows in industrial and financial economies were studied. A comparative characteristic of industrial and financial economies was carried out according to a number of criteria.

The key components in economic security system of the enterprise, which have the greatest influence of factors in external and internal environment are defined. The structuring of strategic economic security of an enterprise as an object of management was done. The structural model of providing comprehensive strategic economic security was proposed. The introduced structural model solves the issue of conceptualization of the economic security architecture and is a unitary system. In providing strategic economic safety of the enterprise it is offered to allocate the presence of an object that is at risk, and the presence of factors that have a threatening effect on the safety of the object as its constituents.

This scientific paper considers the essence of investment, financial and operational activity of the enterprise in the context of provision of a high level of its economic security, and describes the importance of investment support for the economic activity of the enterprise and the place of investments for the factor of economic security. The method of estimation of investment, financial and operational risks based on matrix and expert approaches was offered. The modelling of the systemic risk impact on the economic security of the enterprise was performed and recommendations on the neutralization of the influence of risks were developed.

It is argued that the assessment of the security level of the bank lending activities should be made taking into account the socio-economic interests of all participants in the credit process. The developed methodology of the score assessment of the security level of credit operations of the bank includes not only an analysis of the security status of the credit operations of a particular bank, but also an assessment of the external conditions of its implementation. The process of assessment of the security level of the bank credit operations is implemented in five stages: the development of a system of security indicators for the bank credit operations; formation of the information base, which consists of bank reporting (financial and managerial) and macroeconomic indicators; analysis of security indicators; preparation of the report on the state of security; advising on adjustment of the bank’s policy to enhance security of credit operations and prevent the effects of possible threats. The introduction of a methodology for scoring in the practical activities of banks will allow to obtain objective characteristics of the security of credit operations, identify weaknesses, strengthen security measures, improve the bank’s credit policy to prevent the effects of possible threats.

It was argued that the development of an effective strategy for the protection of the industrial organization and ensuring its proper implementation should be based on the methodological basis of the theory of security. The fundamental changes in the process of formation of a security strategy are determined by the fact that the process specified is objectively developing and gradually becoming more complicated. At the present stage, the security strategy is formalized into a certain organized system, which should include the existing structural subdivisions of the business entity and create conditions for the protection of the priority areas of its operations. The main objective of formation of a strategy for the protection of entrepreneurship is the early distinguishing and isolation of external and internal dangers and threats, overcoming existing imbalances in the process of formation of the innovative basis for further development, creation of a safe environment for the existence of a business entity and, ultimately, achieving the stated goals of a particular industrial organization. All this allows us to formulate an appropriate strategy for its economic security.

The study of the evolution of the economic security of the business entity has shown that at the present stage of economic development it is important to consider the factors of influence on economic security, in particular: the effectiveness of management, personnel and financial safety, a strategic approach to the functioning of the communication system of protection, taking into account the evolution of security and active search for innovative modern domains of development of industrial organizations and increase of the responsibility of performers for the consequences of their work. This allows to reduce the risk of loss of economic safety of the business entity. It was argued that innovative conceptualization of risk as a probable threat of losses lies within the scope of activity of managers of various units and has features of probable economic and objective-subjective nature, as well as a wide range of variability of the impact on the issues of economic safety and is conditioned by the dynamic development of important societal significant economic processes at the global and national levels, which ultimately contributes to enhancement of the organization’s competitive advantages.

The article analyses conceptions of both, the economic security and financial security of the state, in respect to a recent increase of attention given to assuring the state’s economic security while emphasizing mostly the financial factor. Therefore, a thorough analysis on the two conceptions, as well as, on their interrelation, based on scientific literature, revealed that state’s financial security and stability can reflect the economic security of the state only to some extent. The performed scientific practical research verified the hypothesis, which emerged during theoretical research, that financial security and stability cannot fully ensure the economic stability of the state.

In the Middle East, vast oil reserves led to economic modernization and prosperity in the region. However, it is one of the most conflict-prone regions. This paper studies the relationship between military spending, oil and development in Middle Eastern countries using a panel data fixed effect for country-level observations over the period 1986–2016. The relationship between development and conflict will not be uniform throughout the region. Therefore, to test this hypothesis, the study categorized oil exporting countries into three parts that are countries with above average oil export, below average oil export and no oil export. The estimates show a significant reduction in military spending over time and the most declines were observed in the countries where oil export is above average than the Middle East. The results indicate a significant inverse relationship between the military spending with exports and oil rents in overall Middle East analysis and for countries whose average oil export is greater than the Middle East. It is also found that the military burden adversely affects economic growth across all the model specification. However, military spending is declining over time which indicates that there is a reverse causality between development and conflict. It is crucial finding in the context of peace and development literature.

The experience of developed countries regarding the peculiarities of investment in innovative projects, in particular the EU, USA, Japan, was analyzed. It has been proved that the strategic predicate of ensuring the country’s economic security is the promotion of a favorable economic and legal, financial and resource-based support for the development of scientific and innovative activity. The tools of activation of innovative activity of organizations and corresponding regulatory mechanisms of influence of the state policy were determined. A system of critiques and factors was developed for the recognition of the innovative activity of subjects of the basic structure of ecology in five groups of types of innovations: social-economic, marketing, market-oriented, government, technical. It was revealed that the main risk factor for the development of innovations, which objectively precedes the institutional-independent activity of economic entities, is to motivate the owners of organizations for their activities. This factor acts on the social and psychological level, since, their application is a key importance, including the fact that their monitoring does not require significant expenditures.

Criteria are determined that can be applied to recognize waste as economic resources. The criteria for recognition of waste as economic resources include the following: the existence of property rights, the possibility of sale, the receipt of economic benefits and the environmental effect. These criteria are the basis of a new understanding of this economic concept and the basis for shaping the behavior of economic agents in waste management. The proposed criteria have a significant impact on the formation of the accounting system for waste and waste management operations. The place of waste in the environmental safety management system is substantiated on the basis of determining the process of its generation at all stages of economic activity of an industrial organization and the directions of its management both at the internal and inter-economy level. A waste classification matrix is developed for identification and recognition purposes, which makes it possible to form an information space as the basis for making management decisions in the field of environmental safety of industrial organizations.