SOCIAL POLICY MODERNIZATION: CONTROVERSY OF THE HUMANITARIAN AND FINANCIAL DIMENSIONS

Abstract

Social policy in Ukraine requires a deep reform, a new paradigm in which exercising of the rights to social protection would be considered and function as a mechanism of sustainability support for the social system. Within the general problem of social policy modernization we point out an aspect related to the fact that rather often solving of social problems is replaced with populistic imitation as the result of critical shortage of financial and organizational resources as well as absence of any conceptual vision of the mechanism to be used to mobilize such resources. The goal of the article is to identify the ways of coordinating high humanitarian goals of social policy with real financial opportunities of the Ukrainian state. Realization of the fact that the country cannot afford to implement social programs fixing the current state of arts and creating obstacles on the way to structural changes in the economy should be the starting principle of social policy modernization. Transition from «social costs» policy to «social investment» policy, encouragement of the behavior of citizens that would promote economic effectiveness of the country is required. However, even in case the best, most fair models of national product re-distribution are applied, that will not adequately solve current problems. Since the main issue is what resources will be mobilized by the state to achieve social re-distribution and using what methods it will achieve this. We substantiate that the system of progressive taxation with parallel systemic changes in the fiscal policy, effective campaign against tax evasion could be the most effective tool for expanding budget finance base for the social domain. Another social policy mechanism is the system of social insurance, developed over the years of independence, primarily directed at quick response to numerous available challenges, sometimes, of force majeure nature. Its reform requires a comprehensive social insurance concept, reconciliated with the wage system, tax system, labour market policy, and demographic situation.

Keywords

• social policy
• social state
• social policy modernization
• social protection (social security)
• social investment
• progressive taxation