TRANSFORMATION OF SOCIAL INVESTMENT UNDER CONDITIONS OF MARKET INSTABILITY: IMPACT ON ECONOMIC SECURITY

Abstract

The article examines the theoretical and methodological foundations of the transformation of social investment under conditions of market instability and its impact on economic security. It is determined that social expenditures are increasingly acquiring a strategic character as a tool for macroeconomic stabilization and mitigation of systemic risks. The limitations of traditional redistributive mechanisms are identified, as they fail to ensure sufficient effectiveness in a highly volatile economic environment. The study substantiates the need to shift from passive social transfers to investment-oriented approaches focused on human capital development, productivity growth, and long-term economic resilience. A comprehensive analytical model is proposed to assess the impact of social investment on economic security, integrating institutional efficiency and macroeconomic risk parameters. The model allows for evaluating the effectiveness of social policy from the perspective of systemic stability and risk management. It is demonstrated that a risk-oriented approach to managing social expenditures enhances the effectiveness of public policy by prioritizing resource allocation according to the level of threats and their impact on the economy. Particular attention is given to the conditions of a wartime economy, where social spending simultaneously performs stabilizing and fiscally burdensome functions. The importance of balancing financial sustainability and social support is emphasized. The findings confirm that social investment should be considered as an integrated mechanism of financial and institutional influence aimed at strengthening economic security and ensuring sustainable development. Additionally, the results highlight the role of adaptive policy design in responding to dynamic economic shocks and structural transformations. The proposed approach contributes to improving decision-making processes in public finance management. It also creates a foundation for further empirical research on the efficiency of social investment in unstable economic environments.