Social insurance schemes: foreign experience in the realities of Ukraine

Abstract

The article is devoted to the justification of the role and importance of compulsory social insurance in developed countries. Special attention is paid to the importance of active orientation to public policy in social sphere. Foreign practices in the implementation of social protection of population and regulation of social development are analyzed. The priority directions for reforming the public social policy in Ukraine in the context of adaptation to the standards of highly developed countries are determined. Key institutional features of national social insurance systems are studied. Conceptual components of forming civilized social security institute, based on the advanced achievements. Substantiated mechanism for financing social protection and social security. Features of financing social services at the local level generally accepted for all developed foreign countries is a division of local budgets into two distinct functional types of local budgets. This local current (administrative) budget and local budgets Development (Investment Funds). Each of these types has its own budget expenditures and revenues. Experience in the development of public relations reveals that social security is an objective and necessary phenomenon. The objectivity of social insurance due to the risky nature of the market economy and the need to establish financial guarantees to ensure that persons who for certain reasons are unable to participate in the process of material production and to get paid for their work. The analysis of foreign experience and its comparison with state realities is allowed the author to make a number of proposals to improve the state practice of social insurance.