THE QUADRILEMMA OF ECONOMIC SECURITY: GLOBALIZATION, DEMOCRACY, SOVEREIGNTY, AND STATE SURVIVAL

Abstract

The article presents a theoretical extension of Dani Rodrik’s political trilemma of globalization by incorporating contemporary global shocks, including full-scale war, sanctions regimes, geo-economic fragmentation, and disruptions in global value chains. It is argued that the classical trilemma, which balances economic globalization, democracy, and national sovereignty, is insufficient to explain the transformation of state economic policy under systemic and existential crises. In response, the paper proposes the concept of the quadrilemma of economic security, in which state survival and economic security emerge as a fourth system-forming dimension that dominates policy priorities. The study demonstrates that in wartime or high-risk conditions, economic security shapes the permissible combination of market openness, democratic procedures, fiscal flexibility, and state intervention. This transformation facilitates selective and strategically managed integration, emphasizing differentiated participation in global value chains, strategic control over critical sectors, and a strengthened coordinating role of the state. Using Ukraine as an empirical case for 2022-2025, the article shows that a state can simultaneously limit domestic market mechanisms, pursue deep European integration, maintain macroeconomic stability, and preserve democratic institutions, thereby challenging the universality of Rodrik’s trilemma. The findings highlight the necessity of adaptive state regulation, combining strategic planning, temporary protectionism, flexible market governance, and prioritization of critical infrastructure to ensure survival, resilience, and long-term economic sustainability. The study further underscores the practical and theoretical significance of integrating economic security into globalization frameworks, providing an analytical basis for developing selective integration strategies and adaptive governance models capable of responding to contemporary crises, including war, sanctions, and global economic fragmentation, while maintaining democratic legitimacy and strategic autonomy.