Wartime Defense Financing Architecture: Digital Transformation and Institutional Modernization in Ukraine

Keywords: Defence Financing, Defence Procurement, Institutional Modernization, Digital Transformation, Anti-Corruption Compliance, Dot-Chain Defence, Brave 1, Defence Industrial Complex, War Economy, Recovery Under Fire

Abstract

Purpose. Substantiation of a conceptual model of the architecture of financial support for the state’s defence needs under the legal regime of martial law, integrating fiscal policy under conditions of extreme defence burden, digital transformation of procurement processes, and institutional modernization of the supply system of the Armed Forces of Ukraine.

Method. Mixed methods paradigm combining quantitative analysis of empirical data with qualitative analysis of institutional transformations, including case study strategy, statistical analysis, comparative institutional analysis, content analysis of regulatory framework, structural-functional analysis, and bibliometric analysis of 38 Scopus publications for the period 2023–2026.

Practical implications. Substantiation of the effectiveness of specialized procurement agencies model with functional differentiation of lethal and non-lethal procurement, providing recommendations for implementing digital procurement platforms with 5–10 days delivery cycle instead of months, identifying effective mechanisms of public-private partnership in the defence innovation sector, creating a foundation for adapting Ukrainian institutional modernization experience by partner countries.

Value. Expanding theoretical understanding of institutional modernization possibilities under extreme conditions through the concept of “isomorphism under survival pressure”, filling gaps in research on defence financing systems functioning under extreme burden (34% of GDP), conceptualization of “Recovery under Fire” paradigm as an alternative to classical post-war reconstruction models, development of a three-level defence financing architecture model and six-dimensional institutional resilience model.

Paper type. Research.

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Published
2026-02-28
How to Cite
Bondarenko, S., Naumenko, M., & Gakava, T. (2026). Wartime Defense Financing Architecture: Digital Transformation and Institutional Modernization in Ukraine. Social Development and Security, 16(1), 344-379. https://doi.org/10.33445/sds.2026.16.1.26
Section
Social Sciences