Ukrainian social welfare system development in the context of european integration

The lack of clear definitions and general systematisation of all regulations - the most significant shortcoming in the system of state provision of social welfare. The main differences in the social protection in the countries of the European Union.

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Ukrainian social welfare system development in the context of european integration

Karina V. Gnatenko, Natalya M. Vapnyarchuk, Irina A. Vetukhova, Galina O. Yakovleva, Anna S. Sydorenko

Карина Валеріївна Гнатенко Кафедра правознавства Східноукраїнський національний університет імені Володимира Даля Сєвєродонецьк, Україна. Наталія Миколаївна Вапнярчук Відділ координації правових досліджень Національна академія правових наук України Харків, Україна. Ірина Анатоліївна Вєтухова, Галина Олександрівна Яковлева Кафедра трудового права Національний юридичний університет імені Ярослава Мудрого Харків, Україна. Анна Сергіївна Сидоренко Кафедра конституційного, адміністративного, екологічного та трудового права Полтавський юридичний інститут Національного юридичного університету імені Ярослава Мудрого Полтава, Україна. ФОРМУВАННЯ СИСТЕМИ СОЦІАЛЬНОГО ЗАБЕЗПЕЧЕННЯ НАСЕЛЕННЯ УКРАЇНИ В КОНТЕКСТІ ЄВРОІНТЕГРАЦІЇ

Анотація. На етапі формування в Україні нової системи соціального забезпечення важливо дослідити та вивчити всі можливі моделі та розробити рекомендації, щодо впровадження найбільш ефективних. Актуальність даного дослідження полягає у вивченні нормативно-правової бази, яка функціонує в Україні та можливостей її вдосконалення й реформування у більш конкретний нормативно-правовий акт. Мета дослідження полягає у вивченні основ та принципів системи соціального забезпечення населення, вивченні існуючих системи соціального забезпечення, які успішно функціонують на території зарубіжних країн. Для вивчення та аналізу можливостей покращення системи соціального забезпечення населення, авторами були використані специфічні та загальнонаукові методи пізнання, був використаний метод синтезу та аналізу літературних джерел, досліджено українські та закордонні нормативно-правові акти з питань соціального забезпечення населення. В роботі використані методи збору та обробки інформації, порівняльний метод, для вивчення можливості впровадження досвіду європейських країн в українську систему соціального забезпечення громадян. Під час написання даної статті авторами вивчено існуючі системи та моделі організації надання соціальної допомоги населенню в різних країнах. Проведено порівняння моделей соціальної допомоги, виявлено переваги та недоліки. Вивчено та проаналізовано структуру та перспективи наявної в Україні системи соціального забезпечення населення. Виявлено найбільш позитивні приклади для їхнього впровадження в існуючу нормативно-правову базу з метою удосконалення та покращення якості надання соціальних послуг на території України. Встановлено, що дослідження та аналіз закордонного досвіду допоможе виокремити найбільш дієві моделі соціального забезпечення населення. Проведення аналізу та вивчення проблеми дозволить дослідити, які недоліки та переваги мають системи різних зарубіжних країн. За допомогою поетапного аналізу, можливо виокремити ряд принципів соціального забезпечення, які в подальшому зможуть стати базою для формування Соціального кодексу України.

Ключові слова: декларація соціальних прав, фінансові виплати, Соціальний кодекс України, соціальна політика, реформа.

Karina V. Gnatenko Department of Law Science Volodymyr Dahl East Ukrainian National University Severodonetsk, Ukraine. Natalya M. Vapnyarchuk Department of Legal Research Coordination National Academy of Legal Sciences of Ukraine Kharkiv, Ukraine. Irina A. Vetukhova, Galina O. Yakovleva Department of Labor Law Yaroslav Mudryi National Law University Kharkiv, Ukraine. Anna S. Sydorenko Department of Constitutional, Administrative, Environmental and Labour Law Poltava Law Institute of Yaroslav Mudryi National Law University Poltava, Ukraine

Abstract. At the stage of development of a new social security system in Ukraine, it is important to research and study all possible models and develop recommendations for the implementation of the most effective ones. The relevance of this study lies in the investigation of the regulatory framework that operates in Ukraine and the possibilities of its improvement and reform into a more specific regulation. The purpose of the study is to examine the basics and principles of the social security system, the study of existing social security systems that operate successfully in foreign countries. To investigate and analyse the possibilities of improving the social security system, the study used specific and general scientific methods of cognition, including the method of synthesis and analysis of literature sources, review of Ukrainian and foreign regulations on social security. The methods of information collection and processing, a comparative method, were used to research the possibility of implementing the experience of European countries in the Ukrainian social security system. The study examined the existing systems and models of organisation of social assistance to the population in different countries. The models of social assistance are compared, and the advantages and disadvantages were identified. The structure and prospects of the current system of social security of the population in Ukraine were studied and analysed. The most positive examples were identified for implementation in the current legal framework in order to improve and enhance the quality of social services in Ukraine. It was established that research and analysis of foreign experience would help identify the most effective models of social security. Analysing and studying the problem would allow to explore the disadvantages and advantages of the systems of different foreign countries. With the help of a step-by-step analysis, several principles of social security were identified, which would have the opportunity to become the basis for the development of the Social Code of Ukraine.

Keywords: declaration of social rights, financial payments, the Social Code of Ukraine, social policy, reform.

Introduction

Compared to the leading welfare states, Ukraine is just beginning to develop a legal system with regard to social welfare. The world legal system in social security very clearly defines the human rights to social welfare, which is to be ensured by the state. The rights to social security of every citizen are officially recognised by the international community, they are considered to be some of the fundamental and crucial rights for ensuring normal human life [1]. The right to social welfare protects a citizen from crisis life situations and provides them with material assistance from the state. A citizen can receive welfare benefits in case of loss of livelihoods and due to circumstances beyond their control. Such circumstances include unemployment, the acquisition of the status of a person with a disability by a person, reaching old age, illness, or loss of primary income earner. The Universal Declaration of Human Rights1 is the main international document that clearly regulates the human right to social security. It was developed and approved by the UN General Assembly in 1948. This legal act defines an array of basic and fundamental rights of every person. These rights are designed to provide a person with decent living conditions and social welfare that guarantees a decent standard of living, including food, clothing, certain living conditions, regular medical examinations, and social services necessary to ensure and maintain the health and well-being of citizens and their families. her. A set of social rights stated in the declaration guarantee the citizen support and security from the state in case of disability, reaching old age, obtaining the status of unemployed, and in case of illness [2].

The basic and most significant shortcoming in the system of state provision of social welfare is the lack of clear definitions and general systematisation of all regulations [3]. Currently, Ukraine is undergoing a continuous process of reform and improvement of the existing social assistance system. Improvements and changes are not adopted in a structured way, as the modernisation of the legal framework occurs by means of adopting new regulations. For example, the Law of Ukraine “On State Assistance to Families with Children”Universal Declaration of Human Rights. (1948). Retrieved from https://www.un.org/en/universaldeclaration-human-rights/ Law of Ukraine No 2811-XII “On the state help to families with children”. (1992, November). Retrieved from https://zakon.rada.gov.ua/laws/show/2811-12#Text has been revised and improved 30 times since 2001. In 2008, the law was amended to provide family and child care for parents to receive until the child reaches the age of three. In 2009, this law was once again submitted for revision and improvement. Thus, since 2009 the state has been providing care for parents upon adopting a child. In 2011, changes were made to the amount of financial aid at the birth of a child and the procedure for assigning child benefit to single mothers was adjusted. In 2013 and 2014, the procedure for granting and quantifying financial benefits at the birth of a child was adjusted. In addition, the aforementioned changes introduced in 2008 were repealed. The Law of Ukraine “On the State Social Assistance to Low-Income Families”Law of Ukraine No 1768-In “On the state social assistance to low-income families”. (2000, June). Retrieved from https://zakon.rada.gov.ua/laws/show/1768-14#Text has also been revised and amended many times. Thus, it has been subjected to as many as 17 amendments [4].

Thus, there is a trend of regular changes in current legislation and the lack of regulations that could govern and consolidate information on social welfare. The presence of such a document would give citizens the opportunity to learn about the list of welfare benefits, the list of categories of citizens entitled to receive them, and would increase the general awareness of Ukrainians in legal regulation of social protection [5]. Currently, in the absence of a complete list of social benefits and the above-mentioned list of categories of citizens, the majority of the population is not informed and as a result cannot exercise their right to social welfare. To discontinue such trends, it is advisable to reform the legal regulation of social welfare in Ukraine. The process of reforming and systematising the laws of Ukraine in social welfare system was launched in 1998. The Verkhovna Rada of Ukraine received four drafts of the Social Code of Ukraine. However, the Verkhovna Rada did not accept any of the drafts and returned them for revision. In January 2020, the possibility of adopting the Social Code of Ukraine in the next 3-4 years was announced [6]. Systematisation of the legal framework is a complex procedure that requires a phased implementation. For this, consolidation and codification are required. Consolidation will systematise the information in the current legislation and allow to organise it, thereby eliminating the contradictions between the acts and laws that have undergone amendment and improvement [7]. Once consolidated, it is important to codify the existing regulatory framework. Subject to high-quality codification, it is possible to obtain a clear system of regulations that can become the basis for the creation of the Social Code of Ukraine.

It is noteworthy that in recent years Ukraine has pursued a course to implement a European social welfare system [8]. To develop an effective and efficient social welfare system, it is necessary to consult the international practices, which have already passed the stage of testing various models of social welfare system and has worked out effective strategies and tactics for implementing changes in the said system. Ukraine is on the way to developing a system of social welfare; therefore, it is possible to analyse the experience of all leading countries and implement only the most effective methods.

1. Materials and methods

european social welfare

The theoretical methods used to write this scientific paper were as follows. Analysis of legal scientific literature on the subject matter. The paper analyses the scientific articles of leading scholars who studied the problems of social welfare, state social assistance, and investigated the functioning of the social welfare system in different countries. The authors also considered the general theses in the scientific literature on the subject matter. To obtain information on the current social welfare system in Ukraine, an array of regulations, laws, and the Constitution of Ukraine1 were studied. In particular, the study includes analysis of such laws of Ukraine as “On Social Work with Families, Children, and Youth”Constitution of Ukraine. (1996, June). Retrieved from https://zakon.rada.gov.ua/laws/show/254%D0%BA/96-%D0%B2%D1%80#Text Law of Ukraine No 2558-III “On social work with families, children, and youth”. (2001, June). Retrieved from https://zakon.rada.gov.ua/laws/show/2558-14#Text, “On Social Services”Law of Ukraine No 2671-VIII “On social services”. (2019, January). Retrieved from https://zakon.rada.gov.ua/laws/show/2671-19#Text, “On the Basic Principles of Social Protection of Labour Veterans and Other Elderly Citizens”Law of Ukraine No 3721-XII “On the basic principles of social protection of labour veterans and other elderly citizens”. (1993, December). Retrieved from https://zakon.rada.gov.ua/laws/show/3721-12#Text., “On the Status of War Veterans, Guarantees of Their Social Protection”Law of Ukraine No 3551-XII “On the status of war veterans, guarantees of their social protection”. (1993, October). Retrieved from https://zakon.rada.gov.ua/laws/show/3551-12#Text, “On the Rehabilitation of Persons with Disabilities in Ukraine”Law of Ukraine No 2961-IV “On the rehabilitation of persons with disabilities in Ukraine”. (2005, October). Retrieved from https://zakon.rada.gov.ua/laws/show/2961-15#Text, “On the Basics of Social Accounting of Homeless People and Homeless Children”Law of Ukraine No 2623-IV “On the basics of social accounting of homeless people and homeless children”. (2005, June). Retrieved from https://zakon.rada.gov.ua/laws/show/2623-15#Text, “On Pensions”Law of Ukraine No 1788-XII “On pensions”. (1991, November). Retrieved from https://zakon.rada.gov.ua/laws/show/1788-12#Text, “On the Obligatory State Pension Insurance”Law of Ukraine No 1058-IV “On the obligatory state pension insurance”. (2003, July). Retrieved from https://zakon.rada.gov.ua/laws/show/1058-15#Text, “On the State Help to Families with Children”Law of Ukraine No 2811-XII “On the state help to families with children”. (1992, November). Retrieved from https://zakon.rada.gov.ua/laws/show/2811-12#Text "Law of Ukraine No 1768-III “On the state social assistance to low-income families”. (2000, June). Retrieved from https://zakon.rada.gov.ua/laws/show/1768-14#Text, and “On the State Social Assistance to Low-Income Families”11. The authors analysed several drafts submitted to the Verkhovna Rada of Ukraine in order to identify opportunities to finalise these projects and understand the profitability of the implementation of such drafts in Ukraine. The authors studied the European Social Charter and other legal instruments in force in European countries so as to obtain information on the development and functioning of social security systems in other countries, including in the Member States of the European Union.

The combination of various methods of scientific knowledge has laid the foundation for exploration of the subject matter. The grouping and use of various methods led to the analysis of issues related to the current situation of the social welfare system in Ukraine.

Through the study of scientific and legal sources of various foreign countries, the authors developed an understanding of the principles of building a social welfare system existing abroad.

The analysis of the Scandinavian model of social welfare helped learn about the principles of building an effective model and policy of social welfare.

The study used an Aristotelian method, which allowed to outline and propose a set of changes to the current legal regulation of social relations and to develop possible prospects for implementing the European practices.

Methods such as generalisation and abstraction allowed to systematise the data obtained and develop clear recommendations for the social welfare system in Ukraine, evidence from the experience of legislation and policy of other countries.

Comparative and structural-functional methods were used to substantiate the selected models and systems of social welfare, as well as to consider the possibility of their implementation in the Ukrainian social welfare system.

2. Results and discussion

Varieties of systems and models of welfare system. Analysis of the literature on the subject matter and study of the corresponding legal documentation provided the authors with information on the structures and systems of social welfare in different countries. Based on the received information it is possible to compare foreign structures with the Ukrainian system of social protection of the population. Existing systems of social protection in the world are divided into different groups depending on the ratio of structural elements [9]. There are two main systems: insurance and universal. The universal system is financed from the state budget, and its main advantages are the reduction of inequality among citizens, the achievement of maximum social justice, as well as the reduction of the difference in the status and income of citizens. In this system, the state acts as a guarantor of a certain level of income and the provision of social welfare regardless of the personal contribution of each citizen. To meet the social needs of the most vulnerable population segments, the state uses the direct (targeted) redistribution of funds from the tax system and budget. This system also shows an increase in the importance of municipal and private social funds to provide assistance to individuals and groups of citizens. The main basis for determining the required level of financing for social funds is the social needs of the population. According to the concept of this system, the financing of social welfare of citizens is a direct investment in human resources, therefore the state invests in the prospects of its economy. The interpretation of this system can be defined as the investment of citizens in their welfare through the development of strategies and systematic work [10].

Many scholars have studied and analysed the development of effective social protection systems. Table 1 presents several basic models of social policy used by the world's leading countries. Among the models of social policy in different countries are the four most common models, such as Catholic, conservative, liberal, and social democratic.

Table 1. Characteristics of social policy models

Model Characteristic~

Catholic

Conservative

Liberal

Social-democratic

Central unit

Family

Local labour market

Central government

Local authorities

Level of spending on social welfare

Low

High

High

High

Employment

Low for women

High, distributed part-time employment

High

High, statestimulated

Private sector participation

-

+

+

+

Main source of funding

Self-help, family help, community help

Market (insurance payments)

State for the poor unemployed (taxes), insurance payments for taxpayers

State and communes (municipalities), tax redistribution

Emphasis on compulsory social insurance

-

++

+

-

Emphasis on voluntary insurance

+

+

+

-

The authors consider and analyse each of the models provided in Table 1 and theoretical information from different resources in more detail. The Catholic model of social welfare was developed in the scientific works of Vatican scholars in the 20th century. In particular, it was considered in such scientific articles as “Populorum Progressio”1 and “Sollicitudo Rei Socialis”Populorum Progressio. Encyclical of Pope Paul VI on the development of peoples. (1967, May). Retrieved from http://www.vatican.va/content/paul-vi/en/encyclicals/documents/hf_p-vi_enc_26031967_populorum.html Sollicitudo Rei Socialis. (1987). Retrieved from http://www.vatican.va/content/john-paul-ii/en/encychcals/documents/hf_jp-ii_enc_30121987_sohicitudo -rei-socialis.html. According to the basic principle of this model, every person and citizen should first seek help from themselves or their immediate environment. The immediate environment is the family. If they do not have the opportunity to help, the person should turn to the local community, neighbours, church, other public organisation. In case of inability of all the above instances to provide adequate assistance, the citizen may apply to state insurance services or other state organisations and government agencies. Scholars have concluded that the Catholic model is not viable anywhere but the Vatican. Thus, it is rather considered as a theoretical model. Researchers believe that the modern world has no room for such a model [11].

The conservative model obliges citizens to social insurance, keeps records and controls this process. It is attributed to the insurance system of social welfare. Such a system is financed by means of collecting taxes from employees and employers. In this model, the welfare of the citizen and their further social security depends on the results of their work. This model guarantees proper social welfare for citizens employed in well-developed industries. A significant disadvantage of the conservative model is the insufficient security or a complete lack thereof with regard to citizens who are employed part-time or have the status of unemployed. This shortcoming emerged due to the insufficient level of tax redistribution. Therefore, people belonging to the above groups do not receive adequate aid from the state and can only rely on charitable social organisations [12].

The liberal model has some similarities with the conservative one. It is also based on market positioning as the most important area for the organisation of relations in society. However, there are still several differences between the two models. Firstly, according to the liberal model, the state envisages a residual social policy. Residual social policy involves the ability of citizens to exist in society without social aid from the state. According to the liberal model, the social sphere is financed on a residual basis, therefore the amount of social benefits will depend on the contributions available from volunteers and charitable organisations [13]. Secondly, the liberal model presumes that the state bears part of the responsibility for its citizens as against the conservative model. The Great Britain and the United States can be considered classic countries representing the liberal model. In recent decades, the liberal model has undergone some modifications in these countries. There, the social policy still maintains the specific features and principles of this model. Over the years of operation of this model in the said countries, the social responsibility of the state for the welfare of the population has increased. However, the model is still based on two main principles. These are the principles that oblige citizens to social insurance, payment of contributions, and the principle of state social assistance to citizens. The condition for receiving such assistance from the state can only be the financial disadvantage of the citizen [14].

The social democratic model was popularised in the Scandinavian countries. It started taking shape at the turn of the last century in order to reduce the difference in living conditions of rich and poor. This model is attributed to the universal social welfare system. This means that the state fully ensures the social welfare of its citizens. This model had a positive impact on the development of social policy in the Scandinavian countries, enabling the removal of the term “poverty” in relation to the population of these countries, leaving only the concept of “weak population groups”. These include the elderly, children under the age of six, the unemployed, troubled children, and people addicted to alcohol or drugs. According to the liberal model, there are several approaches to solving the problem of “weak groups”, which are based on certain fundamental principles. The first principle lies in the statement that every citizen has an equal value for the state, i.e. the state undertakes to provide social assistance to each person, if necessary [15]. The second principle is that the package of social services is provided to everyone on a voluntary basis, but if a citizen cannot make decisions to receive social assistance from the state, it can be provided compulsorily. The third principle declares that state social assistance should be introduced in all spheres of a citizen's life, it should enable them to live a normal social life and must constitute a continuous process. The last fundamental principle states that social assistance should equalise the level of social and material assistance in society, the state should guarantee every citizen the same level of education, living conditions, and provide employment.

Principles and possibilities of reforming the social sphere in the context of European integration. As mentioned above, Ukraine focuses on the European model of social policy. However, the Ukrainian government, after announcing the direction of the European integration movement, has repeatedly passed laws that contradict European principles on social protection. For example, laws specific to the Soviet model of social protection were proposed or adopted. These were legislative acts that provided benefits for new categories of citizens. The first decisive step in the process of European integration for Ukraine was the harmonisation of the Convention for the Protection of Human Rights and Fundamental Freedoms1. The authorised legal bodies of Ukraine also revised the European Social CharterConvention for the Protection of Human Rights and Fundamental Freedoms. (1990, January). Retrieved from https ://zakon.rada.gov.ua/laws/show/995_004#Text European Social Charter (revised). (1996, May). Retrieved from https://zakon.rada.gov.ua/laws/show/994_062#Text. These actions provoked the need for reforms [16]. Ukraine is carrying out reforms in the existing social system, the share of insurance relations between the state and citizens is growing, such a policy in social and legal relations can increase the level of social welfare of citizens and eventually improve socio-economic conditions. However, there are currently several negative factors in Ukraine that may slow down reforms and negatively affect future steps towards European integration. Such factors include a considerable number of benefits for the population and the inability to control their intended use, the lack of available funds in the Pension Fund, the poor demographic situation, and low levels of public confidence in public and private financial institutions. In the European Union, citizens are monitored for financial assistance from the state. In Ukraine, there are no relevant bodies that could control the profitability of financial assistance and the financial situation of persons receiving social benefits from the state [17]. This situation has led to the receipt of social assistance by citizens who do not need it and a low level of payments to citizens who are in a difficult financial situation.

Social protection in the countries of the European Union has certain differences and features according to the situation in the country. In general, these differences are found in the fundamental principles that are the same for each country of the European Union. One of such principles is the guarantee of financial aid to every citizen of the state in the form of a living wage, as well as opportunities for fulfilment in society. Every citizen of the European Union can count on state social assistance from the state or nongovernmental social organisations and foundations. Below is a review of models and systems developed in different Member States of the European Union [18].

The experience of the Netherlands can be applied to implement reforms in the Ukrainian social welfare system. The social policy system in the Netherlands includes social security for employees, social assistance, and state insurance. The country fully supports the livelihoods of people with disabilities, and social assistance also includes the provision of motorised transportation and the provision of housing for special needs. Unemployed citizens, the elderly, children, and the disabled also receive assistance. In general, under the social insurance system of the Netherlands, the state provides social assistance to citizens only in urgent cases, such as when the amount of social insurance is less than the allowable norm. Systematic assistance to the above categories of citizens is under the constant supervision of state bodies, including the amount of funding, and the expediency of using the assistance received by the citizen. Denmark and Finland are considered to be among the most socially oriented European countries. Denmark has been developing a socially oriented policy since the 1930s. The country has introduced free primary care for the entire population. The government has also introduced programme that guarantee assistance to pregnant women, providing them with everything they need, as well as compensating for 90% of lost income in the first fourteen weeks after the birth of a child. The country provides financial aid, which is indexed to the current cost of living, to families with children under the age of sixteen, and to large families. Finland has introduced a Scandinavian system of social policy. The country is one of the five best countries in the world to live in. As mentioned above, the Scandinavian system promotes equality of social security for the entire population. Finland also provides assistance to the unemployed, children, pregnant women, and people with disabilities. The state provides permanent social assistance to kindergartens and extended day-care groups in schools, as well as implements social adaptation programmes for people with disabilities.

At the beginning of the last century, Ukraine abandoned the old system of social welfare and started implementing new regulations and social programmes [19]. With the processes of European integration that have been actively taking place in recent years, the country is undergoing transformation and reformation. The social sphere is also subject to reforms based on European experience. Ukraine has the opportunity to take the best of the leading countries, while rebuilding the existing outdated system.

Conclusions

After analysing all available sources of information on the subject matter, certain conclusions can be drawn about the state of the Ukrainian social welfare system and possible solutions for launching reform and modernisation. The study investigated the possibilities of developing and approving the Social Code of Ukraine, which should be based on the introduced international regulations and laws. Notably, Ukraine is gradually approaching the systematisation of the current legal framework and is ready to create a unified legal document that would govern social and legal relations in the country. A considerable number of practicing scholars agree on the necessity of introducing a new social insurance system, which would oblige economically active citizens of Ukraine to make unified insurance contributions to social funds. Subsequent to attracting such contributions to state and non-state social funds, the economic situation of the country should change for the better. Such a social welfare system operates in countries that with a liberal or conservative model of social welfare. If the experience of these countries is borrowed, Ukraine will be able to adopt an already existing system, thereby avoiding mistakes in creating and implementing a new system. Considering Ukraine's limited financial resources, some scholars insist on the development of a social insurance system, including individual insurance. Such an insurance system must be combined with state guarantees. It is also worth paying attention to citizens who receive social assistance from the state, to assess their living conditions, and financial situation. It is recommended to review the recipients of assistance, as well as to more carefully select the persons in need of it in the future.

Thus, Ukraine's orientation towards European integration processes requires gradual changes and adjustments to the social protection system. The existing system should be adjusted in accordance with European legislation and should be adapted to the standards of the European Union. Ukraine has ratified most of the International Labour Organisation's conventions in social welfare, but the approved standards have become non-regulatory. This means that the standards are considered to be indicative, but not mandatory for the development of the social welfare system. As a result, the level of pensions and social benefits does not meet the requirements of European and international legislation. On the other hand, the market and economic situation in Ukraine does not allow for the full transposition and implementation of generally accepted international social welfare standards into the country's legal framework. This is economically impossible due to the low level of financing for social funds in Ukraine and the unstable economic situation. In this regard, the implementation of foreign practices requires an in-depth study of the subject matter, solutions, and changes in some principles and legal provisions for their proper functioning in the current economic conditions.

The examples of social welfare systems in European countries that were presented in this study are based on high-quality planning and distribution of state budget assets. European social security systems are based on the principles of fair and useful distribution of public funds, as well as on the decentralisation of the social assistance process. The functioning of such a coordinated mechanism on the territory of European states is possible due to the self-government of individual bodies, which is regulated by the state. They have the opportunity to use and allocate funds provided by the state to finance the social needs of citizens at their own discretion. A certain autonomy of local communities helps to consider the specific features of social assistance in particular localities.

Thus, with the successful redistribution of funds, decentralisation of social assistance, introduction of a system of audit and control of social assistance financing, creation of a quality social insurance system, and improvement of financing of state and non-state social funds, as well as being guided by foreign experience, Ukraine will be able to build a social welfare system that would satisfy all of the existing social needs of citizens.

References

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2. Bakashbayev, A., Nurgaliyeva, A., Gumar, N., Khamidullina, Z., & Saduakassova, M. (2020). Examining the trends in bank deposits through internal and external factors based on the supply chain strategies: A primary and secondary data survey. International Journal of Supply Chain Management, 9(2), 526-536.

3. Melnyk, K.Yu. (Ed.). (2015, November). Solidarity the basic category of social security. Modern Problems of Labour and Pension Legislation: Proceedings of the IV All-Ukrainian Scientific and Practical Conference. Kharkiv, Ukraine.

4. Ashikbayeva, A.M., Gumar, N.A., & Zhanibekova, G.K. (2018). Setting up individual indicators of economic efficiency for environmental protection in oil refineries. Espacios, 39(18), 1-9.

5. Batchenko, L.V., & Dielini, M.M. (2010). Ukrainian reformed pension system development and its influence upon formation of mechanism of population social self-defense. Actual Problems of Economics, 6, 188-193.

6. Seisenbayeva, A., Gumar, N., Imramziyeva, M., Lapbayeva, S., & Shmanova, N. (2020). Towards sustainable development via enhancing viability of small businesses through lending: a case study. Journal of Security and Sustainability Issues, 9(3), 943-950.

7. Yaroshenko, O.M. (2019). Protection in branches: European experience of normative support of risk-oriented approaches. Financial and Credit ActivityProblems of Theory and Practice, 1(28), 522-530.

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