A conceptual framework for financial resilience strategies for Ukrainian territorial сommunities under wartime сonditions

Abstract

The full-scale war in Ukraine has profoundly transformed the financial environment of territorial communities, creating immediate shocks and long-term uncertainties that challenge local budgetary sustainability. Revenue shortfalls, disrupted economic activity, population displacement and urgent wartime expenditures have weakened the capacity of local governments to maintain essential public services and pursue development goals. This study addresses the need for context-sensitive instrument for formulating financial resilience strategies tailored to varying exposure levels, adaptive capacities and institutional arrangements of communities. The article proposes a conceptual descriptive framework for designing and assessing financial resilience strategies in Ukrainian territorial communities under wartime conditions. Financial resilience is conceptualized as a multidimensional construct integrating economic, social, institutional and technological components. Economic factors include budget diversification, investment climate and local revenue mobilization; social factors encompass demographic dynamics, civic engagement and social service provision; institutional factors cover governance efficiency, regulatory frameworks and crisis decision-making; and technological factors involve digital infrastructure e-governance and innovative public service delivery. The proposed framework operationalizes these dimensions through measurable indicators and a cyclical adaptive management process that combines analytic monitoring, strategy implementation, evaluation and feedback. Empirical evidence suggests that communities with diversified revenues, proactive social programs, effective governance and advanced digitalization demonstrate higher financial resilience, enabling rapid adaptation to war shocks and long-term post-war recovery. By integrating multidimensional factors into a unified descriptive model, the study provides local policymakers with practical tools to enhance fiscal stability and community resilience. Future research should empirically validate the framework, refine early-warning indicators and examine the role of international aid and inter-community cooperation in strengthening financial resilience. The framework offers a systematic, flexible approach applicable to diverse territorial contexts and contributes to sustainable post-crisis development strategies.