Current state and challenges of the institutional framework for public administration of international economic cooperation in Ukraine

Abstract

The article examines modern challenges and the transformation of the system of institutional support for the public administration of international economic cooperation development in Ukraine under the conditions of a «double transition» – functioning under the legal regime of martial law and fulfilling obligations regarding European integration. It is substantiated that the sphere of international economic cooperation at the current stage acquires not only commercial but also security significance, determining the possibilities for attracting resources for post-war recovery, preserving economic resilience, and integrating the national economy into global value chains.
The methodological basis of the study is the institutional approach, which allowed considering the public administration system as a dynamic set of formal rules and informal practices. The formal-legal method was applied to analyze the collisions between the outdated philosophy of the Law «On Foreign Economic Activity» and the imperatives of European integration, which enabled the identification of the phenomenon of «normative eclecticism». System analysis enabled the identification of dysfunctions in coordination between key stakeholders (the Ministry of Foreign Affairs, the Ministry of Economy, the Ministry of Finance), while the comparative method facilitated the juxtaposition of declared institutional functions (control) with the real needs of business (service, development) and global trends in capacity building.
Particular attention is paid to the analysis of the consequences of administrative reform, specifically the creation of merged ministries. Through the prism of public administration theory, it is proven that the mechanical centralization of heterogeneous functions (economy, trade, ecology) without proper policy delineation creates risks of institutional overload and conflict of interest (particularly in the context of the European Green Deal). Within the scope of the study, a diagnosis of institutional dualism in economic diplomacy and an assessment of the effectiveness of financial mechanisms for export support were carried out.
A critical mismatch of the Export Credit Agency’s toolkit with the scale of wartime challenges due to undercapitalization and overregulation has been established. It is determined that the dominance of fiscal logic over stimulating logic limits the possibilities for realizing the strategic goals of foreign economic policy. Conceptual principles for the transition from a controlling to a service-oriented model of public administration of international economic cooperation are proposed.
It is emphasized that the institutional architecture should be based on a clear delineation of Key Performance Indicators between agencies (political lobbying versus contract support), the introduction of a digital ecosystem «Single Window for Exporters», and the institutionalization of fast-track procedures for military-economic cooperation. Effective management of international economic cooperation must become an integral element of the comprehensive strategy for national security and economic revival.