Systems Analysis of Social Security in a Transition Economy: The Ukrainian Case
IIASA Interim Report IR-98-073
43 Pages Posted: 16 Nov 2000
Date Written: November 1998
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 new 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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