FUNCTIONING OF THE SOCIAL PROTECTION SYSTEM OF UKRAINE UNDER MODERN CHALLENGES

Abstract

The social protection system of Ukraine functions under the conditions of numerous challenges, namely demographic changes; the impact of globalization; changes in the labor market under the influence of digitalization; climate change; macroeconomic crisis caused by wartime. This creates pressure on the functioning of the specified system and requires a comprehensive assessment of its functioning. This paper aims to identify gaps in the functioning of the social protection system of Ukraine and to create recommendations for its further development under modern challenges. It used such tool as a Social Protection System Review (SPSR), which provides instruments for the assessment of a country's social protection system within five dimensions: needs; coverage; effectiveness; sustainability; and coherence. This assessment became a ground for creating recommendations for the development of the social protection system of Ukraine under modern challenges. The assessment of Ukraine's social protection system within five dimensions led to the finding that the level of social risks in Ukraine is rising as indicated by negative tendencies of economic and social indicators; many social programs exist based on the quite difficult legislative basis what decrease level of effectiveness of social protection; social expenditures exceed social receipts, and this does not support the sustainability of Ukraine's social protection system. To develop the social protection system of Ukraine under modern challenges, it is important to make social protection inclusive through the implementation micro micro-social insurance in cooperation with the private insurance sector; to visualize eligibility criteria for social benefits and other conditions for social programs what will make legislative basis of social protection clearer; to optimize number of social protection programs for increasing the level of benefits per vulnerable person; to make stronger the coherence and coordination between social institutions; to increase the social and financial literacy of population aimed at rising of their awareness of financial mechanisms of social protection.

Keywords

• social sustainable development
• social risks
• social risk management
• social protection system assessment
• social inclusion