Support to the Social Sector Reform in Ukraine Project Report 2011-2015
United Nations Development Programme in Ukraine In partnership with the Ministry of Social Policy Support to the Social Sector Reform in Ukraine Project Report 2011-2015 Project ID: SSSR #00079811 Kyiv 2015 Content Context 3 Objective and Expected Output 4 Results Achieved 5 Results Achieved in Areas 7 1. Social Services Delivery System 7 2. Pension System 13 3. Employment Policy 13 4. Poverty Reduction Policy 14 5. Reform in Social Sector 15 2014 Crisis Response 15 Publications in Media 17 Emerging Trends and Topics 18 Annex 1. Project Budget 21 Annex 2. Press clipping 22 2 Context During Ukraine’s nearly two decades of market economic transformation, the social sector has been only partially reformed. To a considerable extent, it still preserves Soviet characteristics, such as maximum social assistance coverage of the population, many but very small social payments, little correlation between payments and needs, public funding unrelated to delivered services, and many unjustified expenditures. Given the severe economic downturn in Ukraine since 2008, major political changes following the Revolution of Dignity in 2014, the on-going military conflict in the East and 90% local currency depreciation, the social payments, including pensions, became even smaller (e.g. minimum monthly pension is 1,074 UAH which is equivalent of 50 EUR or 1.6 EUR per day) and new challenges, such as social services to internally displaced people from the military zone and the demobilized population, emerged. Overall, three shortcomings plague the Ukrainian social sector. First, social expenditures as a whole are far too large for a country at Ukraine’s level of economic development.
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