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Social Protection: problems, threats, challenges

stmm. 2019 (4): 61-89

UDC 316.364.2

DOI https://doi.org/10.15407/sociology2019.04.061

Olena Ivanenko - Candidate of Science in Philosophy, Senior Research Fellow, Department of Economic Sociology at the Institute of Sociology of National Academy of Science of Ukraine, Kyiv.

ORCID https://orcid.org/0000-0002-3635-1078

Abstract. The article deals with the state policy of social protection, attempts to improve, optimize and update it, and the impact of these attempts on the financial status and well-being of the Ukrainian population. It is shown what exactly the reformation of the pension system is turning into for the elderly, what problems are being actualized in this regard, and what can it threaten to the next generation of pensioners.

According to the Constitution of Ukraine, our country is a social state, and this implies an orientation towards ensuring social and economic human rights. Social policy plays a dual role. On the one hand, economic growth creates favorable conditions for improving people's lives, and on the other hand, the social policy is a factor of economic growth and regulation of the country's economy. Meanwhile, this article focuses specifically on the social sphere (and not on the economic or political one), the rational regulation of which should be the first priority of state policy.

The analysis of state policy in terms of reform in the field of social protection shows that all reforming attempts undertaken by the state in order to improve this sphere, brought almost no change of the current developments in the country: they did not improve the financial situation of wide segment of the people, in particular pensioners, and did not reduce the degree of impoverishment and poverty. So, according to law, our pension system is three-tier. However, the statements declared in laws are not yet implemented, whereas the current programs are mechanically “modernized”, and it causes nothing in the terms of positive changes. As a result of further delay with the introduction of a three-level pension system, the young generation, which should retire in the near future, will be deprived of guaranteed financial support.Keywords: state policy, social protection, pension provision, pension reform, “modernization”, international financial assistance, Marshall Plan for Ukraine.

Full article: ukr | rus

References

Age Pension: Terms of Assignment and Documents (2019, October20). [In Ukrainian] / The law portal of Ukraine . Retrieved from https://www.lawportal.com.ua/pensija-za-vikom-umov... [= Пенсія за віком 2019]

Andrews Kubilius: There is support for the Marshall Plan for Ukraine, it is about 5 billion euros a year (2017, April 11). [In Ukrainian]. European truth. Retrieved from https://www.eurointegration.com.ua/interview/2017/... [= Андрюс Кубілюс 2017]

Ash, T. G. (2014, September 17). Ukraine: How to close the door on Putin. The Guardian. Retrieved from https://www.theguardian.com/commentisfree/2014/sep...

Becker, J., & Jäger, J. (2010). Development trajectories in the crisis in Europe. Debatte: Journal of Contemporary Central and Eastern Europe, 18(1), 5–27. https://doi.org/10.1080/09651561003732488

Cabinet of Ministers of Ukraine. (2016, October 11). The Resolution No. 780 “On approval of the list of food items, non-food items and services for basic sociodemographic groups”. [In Ukrainian]. Retrieved from http://www.kmu.gov.ua/control/ru/cardnpd?docid=249... [= Кабінет Міністрів 2016]

Dale, G., & Fabry, A. (2018). Neoliberalism in Eastern Europe and the former Soviet Union. https://doi.org/10.4135/9781526416001.n19

EBRD Director for Ukraine gives up his current position. (2018, May 29). [In Ukrainian]. Economic Truth. Retrieved from https://www.epravda.com.ua/news/2018/05/29/637239 [= Директор 2018]

“Germany working on ‘Marshall Plan’for Ukraine” — parliament deputy. (2016, February 29). Interfax-Ukraine. Retrieved from https://en.interfax.com.ua/news/general/328070.htm...

Hallman, T. (2007). A “Marshall Plan” for Ukraine. People-Centered Economic Development. Retrieved from http://wp.p-ced.org/projects/ukraine/a-marshall-pl...

“It will take 10 years to fix the Pension Fund deficit” — Reva. (2018, December 22). [In Ukrainian]. Mirror Weekly. Retrieved from https://dt.ua/POLITICS/na-pogashennya-deficitu-pen... [= На погашення 2019]

Kir’yan, T. M. (Ed.). (2017). Employment, labour and social protection in Ukraine and abroad. [In Ukrainian]. Kyiv: Institute for Research on Labour and Employment of the Ministry of Social Policy of Ukraine and National Academy of Sciences of Ukraine. [= Зайнятість 2017] https://doi.org/10.15407/knit2019.06.051

Living wage in Ukraine (2019). Minfin. [In Ukrainian]. Retrieved from https://index.minfin.com.ua/en/labour/wagemin [= Прожитковий мінімум, 2019]

Ministry of Finance of Ukraine. (2019, September 26). Ukraine’s government debt. [In Ukrainian]. Retrieved from

https://index.minfin.com.ua/ua/finance/debtgov [= Державний борг 2019]

Monetisation of subsidies and benefits is underway: How will it work? (2019, February 6). [In Russian]. Channel 24. Retrieved from https://24tv.ua/ru/monetizacija_subsidij_lgot_2019... [= Монетизация 2019]

National Bank of Ukraine. (2013, June 19). Ukraine’s external debt as of April 1, 2013. [In Ukrainian]. Retrieved from http://www.webcitation.org/6HgLKlee5 [= Зовнішній борг 2013]

Onaran, Ö. (2010). Global crisis and the policy reaction in Western and Eastern EU: Can policy save capitalism from itself? https://doi.org/10.1057/9780230306912_7

Onaran, Ö. (2011). From transition crisis to the global crisis: Twenty years of capitalism and labour in the Central and Eastern EU new member states. Capital & Class, 35(2), 213–231. https://doi.org/10.1177/0309816811402648

Passing the Government’s pension reform bill will make it possible to expand the list of benefits at retirement and increase pensions. (2017, June 1). [In Ukrainian]. The Government’s Portal. Retrieved from https://www.kmu.gov.ua/ua/news/250034938 [= Ухвалення 2017]

Pension Fund of Ukraine. (2019, January 14). A report on the distribution of monthly pensions among retirees as of January 1, 2019 (Form No. 5-PF). [In Ukrainian]. Retrieved from https://www.pfu.gov.ua/387109-zvit-pro-rozpodil-pe... [= Звіт про розподіл 2019]

Pension in Japan (2019). [In Russian]. VisaSam.ru. Retrieved from https://visasam.ru/emigration/pension/pensiya-v-ya... [=Пенсия в Японии 2019]

Pension reform: Every Ukrainian will be able to decide for themselves at what age to retire. (2019, August 4). [In Ukrainian]. Politica.com.ua. Retrieved from http://politica.com.ua/pensijna-reforma-kozhnij-uk... [= Пенсійна реформа 2019]

Poor in Ukraine now more than five years ago - World Bank (2018. June 17) ). [In Ukrainian]. Ukrinform. Retrieved from https://www.ukrinform.ua/rubric-economy/2500636-bi... -kiv-tomu-svitovij-bank.html [= Бідних в Україні 2019]

Roubini, N., & Mihm, S. (2011). Crisis economics: A crash course in the future of finance. [In Russian]. Moscow, Russian Federation: Eksmo Press. [= Рубини 2018]

Rumiantseva, S. (2007, November 29). How do Czech pension funds work? [In Ukrainian]. The Securities, 45, 13. [= Румянцева 2007]

Shlemko, V. T., Binko I. F. (1997). Ukraine’s economic security: What it is and how it is ensured. [In Ukrainian]. Kyiv, Ukraine: National Institute for Strategic Studies. [= Шлемко, Бінько 2009]

Stasenko, M. (2018, March 27). How a social welfare system cultivates poverty. [In Ukrainian]. Economic Truth. Retrieved from https://www.epravda.com.ua/publications/2018/03/27/635376. [= Стасенко 2018]

The Cabinet raises pensions for Ukrainians having a long career history. (2019, June 26). [In Russian]. RBC-Ukraine. Retrieved from https://www.rbc.ua/rus/news/kabmin-povysil-pensii-... [= Кабмин 2019]

The main points of the pension reform: What’s in it for today’s and tomorrow’s retirees? (2017, October 6). [In Ukrainian]. TSN.ua. (A television news agency). Retrieved from https://tsn.ua/groshi/golovne-pro-pensiynu-reformu... [= Головне 2017]

“The Marshall Plan for Ukraine” authors announce progress in its implementation. (2018, May 4). [In Russian]. GordonGordonua.com. Retrieved from https://gordonua.com/news/politics/avtory-plana-ma... [= Авторы 2018]

The Order of the Ministry of Social Policy of Ukraine, Ministry of Economic Development and Trade of Ukraine and State Statistics Service of Ukraine No. 178/147/31 “On approval of the Guidelines on determining the subsistence wage”, February 3, 2017. [In Ukrainian]. The legislation of Ukraine. Retrieved from https://zakon.rada.gov.ua/laws/show/z0281-17 [= Про затвердження 2017]

The realities of pension reform: How it will affect those who are to retire in 30 years. (2018, April 14). [In Ukrainian]. Channel 24. Retrieved from https://24tv.ua/ru/realii_pensijnoi_reformi_shho_b... [= Реалії 2018]

The Resolution of the Cabinet of Ministers of Ukraine «On Approval of Food Sets, Sets of Non-Food Products and Sets of Services for the Major Social and Demographic Groups». October 11, 2016 No. 780 (2016). [In Ukrainian]. Government`s portal. Retrieved from http://www.kmu.gov.ua/control/en/cardnpd?docid=249... [= Про затвердження 2016]

The system of social protection and social security in Ukraine. The Real Status and Prospects of Reformation (2009). [In Ukrainian]. Kyiv: Center for Public Expertise. Retrieved from http://www.irf.ua/files/ukr/programs_law_areas_pub... [= Система соціального захисту 2009]

They promise to raise pensions from October 1 of this year (2017, July 23). [In Ukrainian]. TSN. Retrieved from https://tsn.ua/groshi/vihid-na-pensiyu-navit-u-65-... [= Підвищити пенсії 2017]

Ukraine changes retirement rules. (2011, September 10). [In Ukrainian]. BBC News Україна. Retrieved from https://www.bbc.com/ukrainian/politics/2011/09/110... [= Україна змінила 2011]

Ukraine falls into top three IMF debtors. (2018, February 28). [In Russian]. Finance.ua. Retrieved from https://news.finance.ua/ru/news/-/421597/ukraina-p... [= Украина попала 2018]

Ukraine: The social sectors during transition. A World Bank country study. (1994). [In Ukrainian]. Kyiv, Ukraine: Osnovy Press. [= Україна 1994]

Ukrainian pension calculation mechanism will be revised. (2018, March 5). [In Russian]. The Today. Retrieved from https://www.segodnya.ua/economics/enews/v-ukraine-... [= В Украине 2018]

Where does the Pension Fund get its money from? (2019, February 18). [In Russian]. Channel 24. Retrieved from https://24tv.ua/ru/otkuda_pensionnyj_fond_beret_de... [= Откуда 2019]

Social Protection: problems, threats, challenges

stmm. 2019 (4): 61-89

UDC 316.364.2

DOI https://doi.org/10.15407/sociology2019.04.061

Olena Ivanenko - Candidate of Science in Philosophy, Senior Research Fellow, Department of Economic Sociology at the Institute of Sociology of National Academy of Science of Ukraine, Kyiv.

ORCID https://orcid.org/0000-0002-3635-1078

Abstract. The article deals with the state policy of social protection, attempts to improve, optimize and update it, and the impact of these attempts on the financial status and well-being of the Ukrainian population. It is shown what exactly the reformation of the pension system is turning into for the elderly, what problems are being actualized in this regard, and what can it threaten to the next generation of pensioners.

According to the Constitution of Ukraine, our country is a social state, and this implies an orientation towards ensuring social and economic human rights. Social policy plays a dual role. On the one hand, economic growth creates favorable conditions for improving people's lives, and on the other hand, the social policy is a factor of economic growth and regulation of the country's economy. Meanwhile, this article focuses specifically on the social sphere (and not on the economic or political one), the rational regulation of which should be the first priority of state policy.

The analysis of state policy in terms of reform in the field of social protection shows that all reforming attempts undertaken by the state in order to improve this sphere, brought almost no change of the current developments in the country: they did not improve the financial situation of wide segment of the people, in particular pensioners, and did not reduce the degree of impoverishment and poverty. So, according to law, our pension system is three-tier. However, the statements declared in laws are not yet implemented, whereas the current programs are mechanically “modernized”, and it causes nothing in the terms of positive changes. As a result of further delay with the introduction of a three-level pension system, the young generation, which should retire in the near future, will be deprived of guaranteed financial support.Keywords: state policy, social protection, pension provision, pension reform, “modernization”, international financial assistance, Marshall Plan for Ukraine.

Full article: ukr | rus

References

Age Pension: Terms of Assignment and Documents (2019, October20). [In Ukrainian] / The law portal of Ukraine . Retrieved from https://www.lawportal.com.ua/pensija-za-vikom-umov... [= Пенсія за віком 2019]

Andrews Kubilius: There is support for the Marshall Plan for Ukraine, it is about 5 billion euros a year (2017, April 11). [In Ukrainian]. European truth. Retrieved from https://www.eurointegration.com.ua/interview/2017/... [= Андрюс Кубілюс 2017]

Ash, T. G. (2014, September 17). Ukraine: How to close the door on Putin. The Guardian. Retrieved from https://www.theguardian.com/commentisfree/2014/sep...

Becker, J., & Jäger, J. (2010). Development trajectories in the crisis in Europe. Debatte: Journal of Contemporary Central and Eastern Europe, 18(1), 5–27. https://doi.org/10.1080/09651561003732488

Cabinet of Ministers of Ukraine. (2016, October 11). The Resolution No. 780 “On approval of the list of food items, non-food items and services for basic sociodemographic groups”. [In Ukrainian]. Retrieved from http://www.kmu.gov.ua/control/ru/cardnpd?docid=249... [= Кабінет Міністрів 2016]

Dale, G., & Fabry, A. (2018). Neoliberalism in Eastern Europe and the former Soviet Union. https://doi.org/10.4135/9781526416001.n19

EBRD Director for Ukraine gives up his current position. (2018, May 29). [In Ukrainian]. Economic Truth. Retrieved from https://www.epravda.com.ua/news/2018/05/29/637239 [= Директор 2018]

“Germany working on ‘Marshall Plan’for Ukraine” — parliament deputy. (2016, February 29). Interfax-Ukraine. Retrieved from https://en.interfax.com.ua/news/general/328070.htm...

Hallman, T. (2007). A “Marshall Plan” for Ukraine. People-Centered Economic Development. Retrieved from http://wp.p-ced.org/projects/ukraine/a-marshall-pl...

“It will take 10 years to fix the Pension Fund deficit” — Reva. (2018, December 22). [In Ukrainian]. Mirror Weekly. Retrieved from https://dt.ua/POLITICS/na-pogashennya-deficitu-pen... [= На погашення 2019]

Kir’yan, T. M. (Ed.). (2017). Employment, labour and social protection in Ukraine and abroad. [In Ukrainian]. Kyiv: Institute for Research on Labour and Employment of the Ministry of Social Policy of Ukraine and National Academy of Sciences of Ukraine. [= Зайнятість 2017] https://doi.org/10.15407/knit2019.06.051

Living wage in Ukraine (2019). Minfin. [In Ukrainian]. Retrieved from https://index.minfin.com.ua/en/labour/wagemin [= Прожитковий мінімум, 2019]

Ministry of Finance of Ukraine. (2019, September 26). Ukraine’s government debt. [In Ukrainian]. Retrieved from

https://index.minfin.com.ua/ua/finance/debtgov [= Державний борг 2019]

Monetisation of subsidies and benefits is underway: How will it work? (2019, February 6). [In Russian]. Channel 24. Retrieved from https://24tv.ua/ru/monetizacija_subsidij_lgot_2019... [= Монетизация 2019]

National Bank of Ukraine. (2013, June 19). Ukraine’s external debt as of April 1, 2013. [In Ukrainian]. Retrieved from http://www.webcitation.org/6HgLKlee5 [= Зовнішній борг 2013]

Onaran, Ö. (2010). Global crisis and the policy reaction in Western and Eastern EU: Can policy save capitalism from itself? https://doi.org/10.1057/9780230306912_7

Onaran, Ö. (2011). From transition crisis to the global crisis: Twenty years of capitalism and labour in the Central and Eastern EU new member states. Capital & Class, 35(2), 213–231. https://doi.org/10.1177/0309816811402648

Passing the Government’s pension reform bill will make it possible to expand the list of benefits at retirement and increase pensions. (2017, June 1). [In Ukrainian]. The Government’s Portal. Retrieved from https://www.kmu.gov.ua/ua/news/250034938 [= Ухвалення 2017]

Pension Fund of Ukraine. (2019, January 14). A report on the distribution of monthly pensions among retirees as of January 1, 2019 (Form No. 5-PF). [In Ukrainian]. Retrieved from https://www.pfu.gov.ua/387109-zvit-pro-rozpodil-pe... [= Звіт про розподіл 2019]

Pension in Japan (2019). [In Russian]. VisaSam.ru. Retrieved from https://visasam.ru/emigration/pension/pensiya-v-ya... [=Пенсия в Японии 2019]

Pension reform: Every Ukrainian will be able to decide for themselves at what age to retire. (2019, August 4). [In Ukrainian]. Politica.com.ua. Retrieved from http://politica.com.ua/pensijna-reforma-kozhnij-uk... [= Пенсійна реформа 2019]

Poor in Ukraine now more than five years ago - World Bank (2018. June 17) ). [In Ukrainian]. Ukrinform. Retrieved from https://www.ukrinform.ua/rubric-economy/2500636-bi... -kiv-tomu-svitovij-bank.html [= Бідних в Україні 2019]

Roubini, N., & Mihm, S. (2011). Crisis economics: A crash course in the future of finance. [In Russian]. Moscow, Russian Federation: Eksmo Press. [= Рубини 2018]

Rumiantseva, S. (2007, November 29). How do Czech pension funds work? [In Ukrainian]. The Securities, 45, 13. [= Румянцева 2007]

Shlemko, V. T., Binko I. F. (1997). Ukraine’s economic security: What it is and how it is ensured. [In Ukrainian]. Kyiv, Ukraine: National Institute for Strategic Studies. [= Шлемко, Бінько 2009]

Stasenko, M. (2018, March 27). How a social welfare system cultivates poverty. [In Ukrainian]. Economic Truth. Retrieved from https://www.epravda.com.ua/publications/2018/03/27/635376. [= Стасенко 2018]

The Cabinet raises pensions for Ukrainians having a long career history. (2019, June 26). [In Russian]. RBC-Ukraine. Retrieved from https://www.rbc.ua/rus/news/kabmin-povysil-pensii-... [= Кабмин 2019]

The main points of the pension reform: What’s in it for today’s and tomorrow’s retirees? (2017, October 6). [In Ukrainian]. TSN.ua. (A television news agency). Retrieved from https://tsn.ua/groshi/golovne-pro-pensiynu-reformu... [= Головне 2017]

“The Marshall Plan for Ukraine” authors announce progress in its implementation. (2018, May 4). [In Russian]. GordonGordonua.com. Retrieved from https://gordonua.com/news/politics/avtory-plana-ma... [= Авторы 2018]

The Order of the Ministry of Social Policy of Ukraine, Ministry of Economic Development and Trade of Ukraine and State Statistics Service of Ukraine No. 178/147/31 “On approval of the Guidelines on determining the subsistence wage”, February 3, 2017. [In Ukrainian]. The legislation of Ukraine. Retrieved from https://zakon.rada.gov.ua/laws/show/z0281-17 [= Про затвердження 2017]

The realities of pension reform: How it will affect those who are to retire in 30 years. (2018, April 14). [In Ukrainian]. Channel 24. Retrieved from https://24tv.ua/ru/realii_pensijnoi_reformi_shho_b... [= Реалії 2018]

The Resolution of the Cabinet of Ministers of Ukraine «On Approval of Food Sets, Sets of Non-Food Products and Sets of Services for the Major Social and Demographic Groups». October 11, 2016 No. 780 (2016). [In Ukrainian]. Government`s portal. Retrieved from http://www.kmu.gov.ua/control/en/cardnpd?docid=249... [= Про затвердження 2016]

The system of social protection and social security in Ukraine. The Real Status and Prospects of Reformation (2009). [In Ukrainian]. Kyiv: Center for Public Expertise. Retrieved from http://www.irf.ua/files/ukr/programs_law_areas_pub... [= Система соціального захисту 2009]

They promise to raise pensions from October 1 of this year (2017, July 23). [In Ukrainian]. TSN. Retrieved from https://tsn.ua/groshi/vihid-na-pensiyu-navit-u-65-... [= Підвищити пенсії 2017]

Ukraine changes retirement rules. (2011, September 10). [In Ukrainian]. BBC News Україна. Retrieved from https://www.bbc.com/ukrainian/politics/2011/09/110... [= Україна змінила 2011]

Ukraine falls into top three IMF debtors. (2018, February 28). [In Russian]. Finance.ua. Retrieved from https://news.finance.ua/ru/news/-/421597/ukraina-p... [= Украина попала 2018]

Ukraine: The social sectors during transition. A World Bank country study. (1994). [In Ukrainian]. Kyiv, Ukraine: Osnovy Press. [= Україна 1994]

Ukrainian pension calculation mechanism will be revised. (2018, March 5). [In Russian]. The Today. Retrieved from https://www.segodnya.ua/economics/enews/v-ukraine-... [= В Украине 2018]

Where does the Pension Fund get its money from? (2019, February 18). [In Russian]. Channel 24. Retrieved from https://24tv.ua/ru/otkuda_pensionnyj_fond_beret_de... [= Откуда 2019]

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