THE MODEL OF SOCIAL PROTECTION OF UKRAINE’S POPULATION MUST BE CHANGED

Abstract

The article is devoted to the analysis of the current model of social protection of Ukraine’s population. On the basis of statistical data, its negative effect on the majority of people is demonstrated. The necessity to change the model of social protection of the population by means of the stimulation of a demand, which foresees the use of a new mechanism of formation of incomes in the country, is substantiated. Such mechanism must allow the employee to distribute his/her incomes in such proportions: direct taxes – 20–40%, housing payment – 25–30%, allocations into nongovernmental pension funds – about 5%, purchase of commodities and services – up to 30–40%. Such structure of the expenditure of population’s incomes will stimulate the production of people consumer goods and services, give the work to many persons, and stabilizes country’s economy. Our country should refuse the existing differentiation in the payment for work by means of its increase on the whole. In this case, the rate of growth of wages should be in branches, where the wages are lower than the low provision limit. Certain changes in the structure of incomes and the share of the payment for work in it are necessary. A new model of social protection of the population (rather than the improved or modernized old one) must be based on the basically new economic policy, whose objects would become the employee and his/her essential interests. First, a similar policy requires the creation of conditions, under which the main source of a material welfare of a person is the work in any production sphere. Second, it is possible at the attainment of the social compromise. Such conditions will allow one to ensure a certain stabilization in the society and to develop a scientifically grounded program of Ukraine’s socio-economic development for 15–20 years. It should be a program of common efforts, which can be realized only in the case where it will take the interests of all strata of the population into account and will become commonly recognized.