Conceptual Approaches to Improving the Functioning of Non-State Social Insurance Institutions in Ukraine

By Malyovanyi, Mykhaylo; Nepochatenko, Olena et al. | Economics & Sociology, April 1, 2018 | Go to article overview

Conceptual Approaches to Improving the Functioning of Non-State Social Insurance Institutions in Ukraine


Malyovanyi, Mykhaylo, Nepochatenko, Olena, Nesterchuk, Yulia, Economics & Sociology


(ProQuest: ... denotes formulae omitted.)

Introduction

Social protection of population is the cornerstone in the functioning of contemporary states, while realization of social priorities is one of the first steps in it. Its active development during the XXth century, accompanied by the expansion of types and forms of social protection, increasing number and size of social services and assistance along with the formation of social responsibility of business, provided protection from various social risks and threats for the majority of population.

Contemporary welfare state concept takes on the responsibility to provide every citizen with a sufficient level of social protection, to create free access to accredited education and healthcare, to reduce inequality and poverty. Achievement of these tasks requires a steady increase in financial resources, which in the vast majority of countries that have formed integral systems of social protection, are accumulated by the state at the central or local levels. Since the 1990s the most developed countries have begun to review and reform their social protection systems, being driven by economic and demographic changes that have taken place in the world. Therefore, despite the fact that scientists have different points of view on the state of social protection systems of population, they are unanimous in one - at this stage there is a transition from the model of welfare state (accompanied by a decrease in state funding of social programs and their gradual reduction) to a new state social policy, which aims to eliminate the contradiction between market laws and social objectives. Swiss political expert Giuliano Bonoli believes that "dismantling of the welfare state is the main theme of contemporary social policy across Europe" (Giuliano et al., 2000). Swedish economist G. Espring-Andersen points out two main reasons for this process: "The first is that the current status quo is difficult to maintain, taking into account demographic or financial conditions. The second is that this particular status quo looks outdated and does not meet the future's great challenges" (Esping-Andersen et al., 2002, p. 4). Today's factors shaping the foundations of social policies worldwide are new to the world economic thought. Taking this into consideration, a new scientific concept on the development of social protection for the population has emerged. This concept should be aimed at solving the dilemma of the "quadrature of the circle" of the social protection system, taking into account the globalized state of the economy, the overall popular tendency to reduce taxes and the spread of neoliberal economic policy. At the same time, the role and the place of the social welfare system has been widely discussed in academic circles, indicating the urgency and the still unresolved nature of this problem. In recent years, special attention has been also paid to the problem of financing social protection systems and the related interaction between private and public sectors.

The main objective of this study is to analyze the activities of institutes of non-state social insurance in Ukraine in order to identify trends in its further development and the main problems of its functioning.

1. Literature review

1.1. Assessment of the impact of social expenditures and their structure on economic growth

Social protection of population has always been closely related to economy and its main determinants (labor market, wages (income), labor productivity, investment level, economic growth, etc.). In this connection more and more frequently scientists consider the system of social protection not only from a social point of view, but also as a mechanism to stimulate the country's economic development. This requires a deeper analysis of the interconnection of socio-economic factors and social protection of population, especially in the context of the formation and use of financial resources. …

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