Systems Analysis of Social Security in a Transition Economy: The Ukrainian Case

Dobronogov, A.V. (1998). Systems Analysis of Social Security in a Transition Economy: The Ukrainian Case. IIASA Interim Report. IIASA, Laxenburg, Austria: IR-98-073

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Abstract

This paper deals with a case study on the social security system in a transition economy in Ukraine. The severe socioeconomic crisis in Ukraine, including a huge decline of production, hyperinflation, and the informalization of the economy, caused both a substantial reduction of social security contributions and an increase in the number of people who need assistance. The creation of a sustainable economic system in the country requires the development of a new model of social security suited to the realities of a market economy. The objective of this paper is to investigate the current situation, trends, and possible ways of reforms in the Ukrainian social security system, taking into account specific features of the national economy, in particular the informal sector. The analysis focuses on the key component of social security - the pension system - and combines both qualitative and model-based approaches.

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