ENHANCING THE INCENTIVE ROLE OF THE STATE IN UKRAINE’S FOOD SECURITY SYSTEM (EVIDENCE FROM THE AQUACULTURE SECTOR)

Abstract

This article addresses the policy challenge of accelerating aquaculture development in Ukraine under prolonged wartime uncertainty and the transition to post-war recovery. The aim is to justify an integrated state incentive framework that strengthens food security, expands domestic supply of high-quality protein, and supports employment and value creation in rural communities. The topic is relevant because disrupted logistics, elevated investment risk, constrained public budgets, and tighter market requirements for safety and traceability increase the cost of doing business and slow modernization in primary food sectors. The research methodology combines institutional analysis of policy tools, comparative assessment of alternative regulatory designs, logical modelling and synthesis of incentive channels, and expert evaluation of implementation constraints at the territorial level. A problem-oriented mapping of the aquaculture business cycle is used to identify where public intervention can most effectively reduce transaction costs, improve predictability, and crowd-in private investment. The results propose a coherent model of state stimulation built around three complementary channels: economic instruments that mobilize investment and working capital through targeted compensation, risk-sharing finance, and performance-linked support; regulatory modernization that streamlines permits and access to water resources through digital services, spatial planning, and risk-based oversight while preserving environmental and biosecurity safeguards; and intellectual-innovation measures that accelerate technology diffusion, training, advisory services, and data-driven governance. The study shows that the payoff from public spending is determined not only by the size of funding, but also by the stability of rules, the speed of administrative decisions, and the institutional capacity to deliver policies consistently across regions. Practical value is provided by a set of actionable design principles for programs and monitoring, enabling authorities and producers to select incentive packages, define measurable indicators, and implement reforms that improve investment attractiveness, reduce compliance costs, raise biosecurity, and support market integration.