The article is devoted to the interaction of the state and citizens as a strategy for overcoming modern challenges in state creation. The purpose of the study is to propose strategic directions for their solution based on the identification of problems of interaction between the state and citizens. In the course of scientific research, general scientific methods of cognition were used: analysis, synthesis, systematization, comparison and generalization. The results of the study show that building effective strategies for overcoming challenges in state formation is a key task for ensuring the stability and prosperity of the state. Major problem areas such as corruption, low trust in law enforcement and iWneffective interaction between the authorities and civil society were carefully identified. The causes of corruption, which permeates all spheres of the country’s life, undermining the authority of the state and democratic principles, were investigated. The high level of distrust of citizens towards state institutions, in particular law enforcement agencies, creates serious challenges for ensuring law and order. Survey data indicate a low level of trust in authorities and citizens’ reluctance to interact with them in case of violation of their rights, which further complicates the situation. It was shown that the effective involvement of civil society in the process of public administration is a necessary condition for overcoming existing problems. An important aspect is the development of special criteria for evaluating the effectiveness of the work of state bodies and the inclusion of proposals from public organizations in state policy. Perception of civil organizations as competitors by the authorities and limiting their access to the management process hinders productive cooperation. It was established that sustainable development and strengthening of democratic institutions can only be achieved through transparency, increasing the competences of authorities and strengthening control over their activities. The practical significance of the study lies in the development of strategic directions for the interaction of the state and citizens to overcome the challenges of state creation.
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