Financial indicators in the system of economic security of the world countries

Abstract

The paper is aimed at quantitative evaluation of the level of countries’ financial solvency based on the use of a multidimensional methodical toolkit for evaluating financial indicators of a country’s development, which results in the construction of the appropriate integral security indices. Unlike other methods to assess the level of security, the proposed approach makes it possible to determine not only the integrated level of a financial component of the economic security but also to calculate the quantitative thresholds of the financial indicators aggregated in the integral index (gold and currency reserves, external debt per capita, changes in the official local currency rate, budget deficit/surplus to GDP); going beyond the threshold values is a signal of the increased risk and lack of solvency. Comprehensive consideration of the financial indicators, taken from the official statictic databases or calculated basing on the official statictics, in the structure of the integral index helps quantify the level of a financial component in the system of ensuring countries’ economic security. The proposed approach is approbated in terms of the countries for which the level of a component of the financial solvency (critical, dangerous, unsatisfactory, safe, and optimal) has been calculated. From the practical viewpoint, the proposed toolkit makes it possible to identify actual and potential threats to the countries’ sustainable development. The obtained integral indices of security can be used as the variables in economic and mathematical models while evaluating the effect of security status on the global economic development and positions of certain countries, communities, and regions in the system of world economic relationships.