The Efficiency of Social Policy in Ukraine: Challenges and Prospects

• Authors: Viktor Ventsel

Abstracts

EN

The article considers pertinent issues related to social policymaking and its implementation in Ukraine. Emphasis is placed on remuneration as the key element of ensuring citizens’ welfare and economic development of the state. Remuneration plays one of the most important roles in the economic system and ensuring a decent standard of living. The wage reflects the employee’s welfare level and should be correlated with the qualification level and productivity in the production spheres or determined according to the set qualification criteria, quality assessment system and efficiency of employees in non-production spheres. Low remuneration standards and low correlation between wages and productivity affect the motivation of the workforce and reduce its economic and labour activity. The analysis of the minimum wage and subsistence level as the categories defining the status and directions of economic and social policy of the state has been performed. The minimum wage has a decisive influence on many social and economic processes. A significant issue in Ukraine is that establishing the minimum wage in the legislation is made without objective analysis and taking into account the financial and economic conditions that should be the basis for the state social policymaking. The minimum wage directly affects the volume and structure of the expenditure part of state and local budgets, as it is one of the basic elements for making the payroll of budgetary institutions and organizations. For business structures, the minimum wage is an indicator that reflects the economic and social policy of the state, as well as a microeconomic category that affects their current business activities and the production and financial strategy making. Some aspects of the current social protection system in Ukraine have been described. One of the main issues in Ukraine is the excessive number of legislative acts regulating social protection matters. Another important issue is that a significant number of benefits and social transfers, which are stipulated in the legislation and guaranteed to the citizens, cannot be implemented due to lack of financial resources in the state budget. Today, one of the priority tasks of the state policy is to address issues of reforming the social protection system and the introduction of new efficient mechanisms for financing and managing the social services system. It has been noted about the need to develop and set in the legislation a system of social standards and norms, as well as the development of a standardised mechanism for determining the minimum wage and subsistence level based on and depending on the socio-economic development indicators.

Keywords

EN

social policy; remuneration; minimum wage; subsistence level; social protection

• Publisher: Wydawnictwo Adam Marszałek
• Journal: Reality of Politics
• Year: 2020
• Issue: 11
• Pages: 68-82

Dates

published

2020

Contributors

author

Viktor Ventsel

• National Academy of Public Administration under the President of Ukraine

References

• Aristova I. V. (2006) Sotsialna funktsiia derzhavy yak vyznachalna katehoriia prava sotsialnoho zabezpechennia Ukrainy [Social function of the state as a determining category in the law of Ukraine social security]. Forum prava, no. 2, pp. 18-21.
• Cruz M., Foster J. et al. (2015) Ending Extreme Poverty and Sharing Prosperity: Progress and Policies. Policy Research Notes. World Bank, October 2015.
• The World Bank (2019) Ekonomichnyi ohliad. Ukraina [Economic review. Ukraine]. Downloaded from: http://pubdocs.worldbank.org/en/724161558601576209/Ukraine-Economic-Update-Spring-2019-uk.pdf
• Faktychnyi rozmir prozhytkovoho minimumu u 2015-2020 rokakh [The actual cost of living wage in 2015-2020]. Official web-site Ministry of Social Policy. Downloaded from: https://www.msp.gov.ua/news/12286.html
• Inshyn M.I., Kostiuk V.L. et al. (2016) Trudove pravo Ukrainy: pidruchnyk [Labor law of Ukraine: textbook]. Kyiv: Tsentr uchbovoi literatury [in Ukrainian].
• Konstytutsiia Ukrainy [The Constitution of Ukraine]. Downloaded from: http://zakon.rada.gov.ua/laws/show/254%D0%BA/96-%D0%B2%D1%80
• Luniak I. V. (2015) Zarobitna plata yak naivazhlyvishyi faktor realizatsii investytsiinoinnovatsiinoi modeli rozvytku [Wages as the most important factor in the implementation of investment and innovation model of development]. Investytsii: praktyka ta dosvid, no. 21, pp. 21-24.
• Malytska I. D. (2011) Funktsii zarobitnoi platy ta stan yikh vykonannia v Ukraini [Wage functions and the state of their implementation in Ukraine]. Derzhava i pravo, no.51. pp. 409-413.
• Nebava M. I. (2012) Protyrichchia formuvannia prozhytkovoho minimumu v Ukraini yak bazovoho standartu sotsialnoi polityky [Contradictions in the formation of the subsistence level in Ukraine as a basic standard of social polic]. Scientific Bulletin of the Academy of Municipal Administration, no. 11, pp. 152-167.
• Pihul N., Liuta O. et al. (2015) Finansove zabezpechennia sotsialnoi sfery v Ukraini [Financial support of social sphere in Ukraine]. Herald of the National Bank of Ukraine, no. 1 (227), pp. 30−35.
• Pro Derzhavnyi biudzhet Ukrainy na 2015 rik: Zakon Ukrainy vid 28.12.2014 № 80 [Law on the State Budget for 2015]. Retrieved from: https://zakon.rada.gov.ua/laws/show/80-19
• Pro Derzhavnyi biudzhet Ukrainy na 2016 rik: Zakon Ukrainy vid 25.12.2015 № 928 [Law on the State Budget for 2016]. Downloaded from: https://zakon.rada.gov.ua/laws/show/928-19
• Pro Derzhavnyi biudzhet Ukrainy na 2017 rik: Zakon Ukrainy vid 21.12.2016 № 1801 [Law on the State Budget for 2017]. Downloaded from: https://zakon.rada.gov.ua/laws/show/1801-19
• Pro Derzhavnyi biudzhet Ukrainy na 2018 rik: Zakon Ukrainy vid 07.12.2017 № 2246 [Law on the State Budget for 2018]. Downloaded from: https://zakon.rada.gov.ua/laws/show/2246-19
• Pro Derzhavnyi biudzhet Ukrainy na 2019 rik: Zakon Ukrainy vid 23.11.2018 № 2629 [Law on the State Budget for 2019]. Downloaded from: https://zakon.rada.gov.ua/laws/show/2629-viii
• Pro Derzhavnyi biudzhet Ukrainy na 2020 rik: Zakon Ukrainy vid 14.11.2019 № 294 [Law on the State Budget for 2020]. Downloaded from: https://zakon.rada.gov.ua/laws/show/294-IX
• Pro oplatu pratsi: Zakon Ukrainy vid 24.03.1995 № 108/95 [Law on salaries]. Downloaded from: https://zakon.rada.gov.ua/laws/show/108/95-%D0%B2%D1%80
• Pro prozhytkovyi minimum: Zakon Ukrainy vid 15.07.1999 № 966 [Law on living wage]. Downloaded from: https://zakon.rada.gov.ua/laws/show/966-14#top
• The World Bank (2019) Realizatsiia potentsialu ekonomichnoho rostu Ukrainy. Spetsialna dopovid [Realization of Ukraine’s economic growth potential. Special report]. Downloaded from: http://pubdocs.worldbank.org/en/233891558601579588/Ukraine-Special-Focus-Note-Spring-2019-uk.pdf
• Ventsel V.T. (2019) Sotsialno-ekonomichnyi analiz oplaty pratsi yak atrybutyvnoi oznaky sotsialnoi funktsii derzhavy [Social-economic analysis of wages as an attributive indication of the social function of the state] Public management and administration in Ukraine, no. 9, pp. 17-21.
• Bureau of Social and Political Development (2015) Zvit-monitorynh systemy sotsialnykh posluh v Ukraini [Report-monitoring of the social services system in Ukraine]. Downloaded from: https://bureau.in.ua/downloads/social-reform/reportua.pdf

Identifiers

DOI

10.15804/rop2020104

Biblioteka Nauki

1933232