Application of the Basic Income Concept in Ukrainian Economy .
Journal Title: Вісник Київського національного університету імені Тараса Шевченка. Економіка. - Year 2016, Vol 1, Issue 178
Abstract
Finance for the social sphere remains a great challenge in modern economy. The necessity of adequate living standards under limited resources raises a complicated problem for governments to provide appropriate distributing mechanism among the most vulnerable sections of the population. The paper analysed the concept of absolute basic income, which in some EU countries is considered as a substitution for a modern system of social security. Inequality of incomes creates not only a social problem but it is also an obstacle in the way of economic growth. It leads to the conclusion that government should provide some strategy to avoid high inequality. The model of rational individual with certain basic income is under investigation. The analysis of the model suggests that the presence of additional income not only facilitates more effective involvement of individuals to work, but it is a sort of indisputable factor for guaranteeing freedom of individuals and increasing their mutual respect. Thus, the idea of basic income, which spreads among European countries, has not only economic, but also political and psychological components that may affect the mentality of people in future. It is demonstrated that the transition to a new social security schemes in Ukraine can accumulate from 856 to 1020 bln. UAH in 2015 prices. It can provide guaranteed monthly payments from 1928 to 2297 UAH per capita and from 482 to 574 USD per child without changing the structure of the budget in case of replacement minimum pensions, minimum wages and full monetization of privileges. Obviously, such strategy not only would improve the efficiency of budget spending, but also produce a multiplier effect on the economy by changing and optimizing the consumption patterns of the population, increasing the competition in all markets for a real consumer. It has a chance of reducing the struggle to obtain state funds through tenders. However, the transition to the new system can be implemented only after reforms in health, education, judicial systems, monetization of most privileges.
Authors and Affiliations
Andriy Stavytskyy
Keywords
Related Articles
- EP ID EP240141
- DOI 10.17721/1728-2667.2016/178-1/5
- Views 113
- Downloads 0
THE ANALYSIS OF FEATURES AND REASONS OF THE BANKRUPTCY OF NATURAL PERSONS
The bankruptcy law of natural persons has recently come into force in Lithuania. Therefore the possibilities of the application of the bankruptcy law of natural persons have not been analysed in detail. Only a detailed a...
The Details of Construction and Application of European Commission Macromodel QUEST III with Extended Fiscal Block
In this paper we provide detailed derivation of dynamic stochastic general equilibrium model QUEST III that was developed under European Commission project. The principal feature of the model is the presence of both mone...
FOREIGN DIRECT INVESTMENTS AND INSTITUTIONAL PERFORMANCE: A ROMANIAN PERSPECTIVE
Our paper uses statistical tools with the aim of empirically investigating the institutional determinants of foreign direct investments (FDI) in Romania. The analysis is focused on the public policies that are relevant f...
THE GENESIS OF THE FUNCTIONS OF GOVERNMENT DEBT SECURITIES
Government borrowings appear at a certain stage of development the economic system. Governments used loans many centuries ago because there are often occurred situations when borrowings were the only way to attract addit...
THE SIGNAL APPROACH TO MODELLING THE BALANCE OF PAYMENT CRISIS
The paper considers and presents synthesis of theoretical models of balance of payment crisis and investigates the most effective ways to model the crisis in Ukraine. For mathematical formalization of balance of payment...