Resource information
The report is intended to determine the
appropriateness of the social protection system in meeting
the needs of the poor in Ukraine, and what are the changes
which can be instituted to improve such system. To this end,
the report presents the poverty measurement in the country,
assesses current social programs, and suggests a framework
for system redesign. In particular, it points at the
challenge of a transition economy, in realizing that poverty
does appear even among the employed population, while
childhood poverty does indeed affect the future of a nation.
The study presents the survey methodology, based on a
household survey, measures of income and expenditure, and of
inequality, examining the poverty line through a
multivariate analysis of poverty risks in the country,
including housing subsidies, energy arrears, in addition to
war entitlements and privileges. It finds that the Ukrainian
social support system could address social needs well, as it
has sufficient resources to do so, though currently, it does
so poorly. Thus resource allocation needs to be improved, by
targeting categorical benefits, testing asset and income
potential, as well as using indicators to substitute for the
direct measurement of income. An additional quantitative
analysis will be required to better plan management, and
effective evaluation, in addition to a system redesign to
reduce funding for poorly targeted programs, while
increasing social funding at large. A strategy is proposed
to phase-in a social assistance reform over a four-year
period, supported by the Bank.
