The reaction of the social security systems of the European Union and the united states of America to financial crises: proposals for using the experience in Russia

Abstract

In the context of accelerated transformation of the domestic economy, attempts at economic and socio-political isolation of the Russian Federation (hereinafter referred to as RF, Russia), the question of rethinking the role of social protection in the development of the RF arises. The purpose of the work is to develop recommendations for increasing the adaptability of the domestic social protection system to future possible shocks, with consideration to modern practices used in developed economies. The object of the study is social protection systems. The subject is measures of adaption of these systems to consequences of financial crises. When conducting the study, the following methods have been used: analysis, induction, measurement, comparison, computational and constructive, statistical and economic. The main results of the study include identification of the basic channels for the transition of a financial crisis into a social one, and assessment of the fiscal impulses of the European Union countries, United States of America, and Russia in order to mitigate the negative shocks of financial crises. The practical significance of the work is due to the possibility of using the results in the activities of government bodies as part of improving the domestic social protection system. The similar nature of consequences of global financial crises has allowed us to draw a number of conclusions. Firstly, job retention schemes and social support measures for the unemployed population make it possible to create an effective system of income support for workers, especially for vulnerable groups. Secondly, increasing the targeting of social support measures will lead to the performance growth of social protection system, allowing for a more rational distribution of limited budget resources. Finally, this social system can effectively reach the target segment of beneficiaries only if means-testing information systems are of high quality.