THE ROLE OF POLITICAL INSTITUTIONS IN THE SYSTEM OF ECONOMIC RELATIONS AND SECURITY

Abstract

The article discusses the fundamental role of political institutions in ensuring economic stability and security in the context of globalization. The author analyzes the relationship between the effectiveness of political institutions and the sustainability of economic systems, focusing on their functions of regulating internal and external economic processes. Particular attention is paid to the importance of political stability for maintaining law and order, the rule of law and transparency of market relations. The study emphasizes the importance of classifying political institutions by functional, organizational, territorial and historical criteria, which allows assessing their role in shaping the institutional environment for economic activity. It is noted that the effectiveness of institutions is determined by their ability to respond quickly to economic crises, adapt policies to changes in the global environment and prevent corruption. Special attention is paid to the influence of the political regime on the functioning of institutions. Democratic institutions, due to their accountability and transparency, ensure economic stability and a favorable investment climate, while authoritarian regimes demonstrate speed of decision-making but face long-term risks due to low accountability. Hybrid governance models have both advantages and disadvantages in the context of ensuring economic stability. Particular emphasis is placed on the challenges faced by political institutions in the context of corruption, social conflicts and economic crises. It is noted that the ability of political institutions to ensure legal regulation, effective fight against corruption and social equality are key factors in their success in ensuring macroeconomic stability. It is emphasized that political stability is a basic condition for implementing economic reforms, supporting the investment climate and long-term economic development, and effective political institutions are able to ensure not only economic stability but also create a favorable environment for socio-economic progress in the context of global changes.