Security factor in the context of financial support for sustainable development

Abstract

Introduction. The issue of timely response of the global financial community to escalating military threats in certain regions of the world through targeted investments or financial assistance depends largely on the actualization of the issue of security as a leading factor of sustainable development in the global economy. The solution to this problem is possible with the introduction of innovative financial instruments, which could provide timely financing of security infrastructure. Problem Statement. The onset of military conflict brings with it enormous losses of socio-economic development. To a large extent, the risk of military conflict and its consequences can be reduced by financing the necessary measures to improve the defense capabilities of the country. According to the worldwide trend of implementing the concept of sustainable development, such funding is possible within one of the seventeen sustainable development goals. Purpose. To determine the main sources of financial aid except for the governments‘ aid of the world countries, to search for the possibilities of applying innovative mechanisms of financial support for sustainable development in the event of an aggravation of the security situation. Methods. General scientific and special methods were used: analysis, synthesis, grouping, description, comparison, theoretical generalization and classification. Results. It has been found that the security factor as a separate goal of sustainable development was established seven years ago, accordingly, the financing of security risks and military conflicts is carried out according to the principle of elimination of consequences. Therefore, there is a problem that requires the development of new tools for guaranteeing peace, which should be bonds, which are a financial tool for sustainable development in the event of increased risks of military aggression. The mechanisms of issuance must take into account different levels of risk. Which, in turn, should determine the requirements for the possibility of issuing such bonds and the results to be achieved. Conclusions. Under the present conditions, Ukraine has a unique opportunity to act as a catalyst for the recognition of the security factor as one of the defining components of the sustainable development concept, without which the achievement of sustainable development goals in the environmental, social and governance components is impossible. This increased focus on the security factor will require the search for and application of innovative financial instruments, one of which should be peace bonds.