Resilience of Economy: Its Essence and Challenges for Ukraine

Abstract

The article is concerned with the conception of resilience, originated from ecological studies and then subsequently applied to social and economic systems. The aim of the study is to determine the contents of the concept of «resilience» and identify the key challenges of resilience with regard to the Ukrainian economy in the 21st century. The essence of the concepts of «resilience», «resilience of economy», existing approaches to their interpretation, difference from the concepts of «sustainability» and «stability» were studied; the key risks and shocks that posed the challenges in terms of resilience of the Ukrainian economy in the 21st century are identified and examined. It is defined that resilience in the economy means the ability of the system to recover and adapt after crisis, stressful situations. The concept of resilience differs from sustainability and stability, emphasizing the post-event adaptation of the system. Two approaches to understanding resilience have been defined: the first is focused on recovering the system to equilibrium after crisis events, and the second – on the constant adaptation to changes. Situations in Ukraine, such as the global financial crisis of 2008, russian aggression in 2014, the COVID-19 pandemic, and the russian invasion in 2022, have significantly affected the country’s economy and underlined the need to develop resilient mechanisms to ensure sustainability and recovery from shock events. The importance of understanding and researching the conception of resilience for the development of effective strategies for crisis management and creation of stable economic systems in changing conditions is substantiated. Implementation of experience and study of resilience factors of other countries that faced similar challenges after military conflicts can be useful for Ukraine to overcome the crisis, ensure stability and growth, as well as preserve the potential for further development after the cease of the war.

Keywords

• resilience
• sustainability
• stability
• adaptation
• economic crisis
• risks
• shocks
• military aggression
• development potential
• sectors of economy
• industry.