UKRAINE NATIONAL PROGRESS REPORT ON THE REGIONAL IMPLEMENTATION STRATEGY OF THE MADRID INTERNATIONAL PLAN OF ACTION ON AGEING 2007-2011 2 CONTENTS Summary 3 Country Information 4 National Situation in Population Ageing 5 Methodology 6 Review and Appraisal of National Follow-Up to Regional Implementation Strategy of the Madrid International Plan of Action on Ageing 7 Conclusions and Priorities for the Future 23 Annexes 28 3 Summary The socio-demographic policy in Ukraine in the recent five years is characterized by some revitalization and has some achievements evidently supported by the materials presented in this report. The main results of the government development policies and priorities in the area of population ageing in Ukraine are summarized below. The escalation of the demographic ageing process and the need to strengthen social security of older persons determined a priority need for social care system reforms. There are yet some achievements in the pension system reform through improving the parameters of its PAYG component, increasing the retirement age, and introducing incentives for the participation of older workers in the labour force. Further steps to reform the pension system in Ukraine and ensure successful adaptation of the labour market adaptation to demographic changes should be taken towards the transformation of retirement into a flexible and gradual process. This should include financial incentives for employers to hire workers in the pre- and post-retirement ages, focusing on education and training of older workers and eradication of age discrimination in favour of younger workers. Interventions are also necessary to maintain and promote health and well-being of older people, improve working conditions and create conducive environment for various economic activities of older people. In the recent years Ukraine has been actively developing legal frameworks for continuous education and life-long learning, including in the area of vocational training. Innovative forms of social and educational services for the elderly were piloted. The main challenge for the future is further improvement of mechanisms for implementing the legislation and empowering older people to participate in appropriate education and training programmes. Reducing poverty levels among pensioners’ households is an important achievement of Ukraine over the last five years. Extreme poverty levels among older persons were decreasing at a steady and quick pace. However, the level of deprivation of older people in certain living conditions remains rather high: accessibility of good quality health care, infrastructural facilities, transportation etc. is limited in many cases. Therefore the issue of increasing the living standards and improving the quality of life in older age remains important and topical. To comprehensively address the poverty challenges, on 31 August 2011 the Government approved the draft law "On approval of the national programme for overcoming and preventing poverty by 2015". Given the adverse health and demographic situation in Ukraine, one of the top priorities of the national development policies are maintaining good health and working ability of older people. The current health care reform is aimed at solving the problems existing in this area, being part of the presidential programme of reforms for 2010-2014 "Wealthy Society, Competitive Economy, Effective State". 4 Country Information 1. Name of the State Ukraine 2. Report Developer Ministry of Social Policy of Ukraine (jointly with concerned executive authorities, non-governmental organizations and academic institutions) 3. Report Developer Contacts Mailing Address: 8/10 Esplanadna St., Kyiv, Ukraine Ms. Iryna Tarabukina – Director, Department of Social Services, Ministry of Social Policy of Ukraine ([email protected]) Ms. Iryna Kurilo, Ph.D., D. Sc. (Economics) – Scientific Consultant, M.V. Ptukha Memorial Institute for Demography and Social Studies of the National Academy of Sciences of Ukraine ([email protected]) Ms. Olga Krentovska, Ph.D. (Public Administration) – National Focal Point on Ageing, National Presidential Academy of Public Administration ([email protected]) 4. Title and Contact Information of the Official Institution Responsible for Ageing Ministry of Social Policy of Ukraine 5. Title, Coding and Adoption Date of a National Strategy, Plan of Action or Other Document on Population Ageing None 5 National Situation in Population Ageing By share of population aged 60 years and above Ukraine ranks among the top 30 oldest countries of the world, sharing the 25-26 position with Norway. By share of persons aged 65 and older, Ukraine is somewhat below (by 1.1-1.2 percentage points) the average figure for the EU countries group and substantially behind the world leaders by the level of ageing (Italy, Germany, Japan). Ukraine’s longevity index, similar to that of the Russian Federation, is on average 5-6 percentage points lower than in countries such as Sweden, France or Spain. Such differences concerning our country’s position in the global ranking of various ageing indicators are caused by its substantial lagging behind the developed European countries in average life expectancy, as well as by low survival rate into the oldest age in Ukraine (see Annex 4. Population ageing indicators for 2006-2010). The specific features of the ageing process in Ukraine are as follows: - the ageing rate is traditionally affected by the ‘demographic waves’ caused, in their turn, by specificity of historical development (war periods, social cataclysms, etc.); - population ageing was for a long time occurring under the influence of decreasing birth rates and no sustainable positive shifts in people’s life expectancy; - typical substantial differences in ageing rates by sex and settlement type; - noticeable regional variation of population ageing indicators; - a rather high ageing rate is combined with large-scale de-population. Ageing of Ukraine’s population is accompanied by declining numbers and shares of labour-active population groups, growing demo-economic burden upon able-bodied population, decreasing financial opportunities of social security under general growth of demand for social services on the older people’s part. The process of reduction in the number of able-bodied persons will especially speed up in 2015-2020 because the most numerous generations will exceed the working age limits in that period; in the nearest decades, demographic burden upon the able-bodied population in Ukraine will grow, and the burden structure share caused exactly by persons of post-working age will increase at an increasing rate as soon as after 2020. Labour force ageing in Ukraine takes place amid its insufficient educational and vocational flexibility, as well as weak development of institutions and traditions of self-education activities and lifelong learning, and is combined with a conservative structure of economy and employment. The challenges of rapid ageing are aggravated by people’s low living standards and unsatisfactory health, as well as by incompletely shaped market institutions, the existence of which would provide certain opportunities to mitigate negative economic consequences of ageing. 6 Methodology In the course of the study on Ukraine’s implementation of the Madrid International Plan of Action on Ageing (MIPAA) and its Regional Implementation Strategy (RIS), quantitative and qualitative approaches to policy assessment on population ageing were combined. A transverse analysis method prevailed in quantitative information analysis: it considered the outcomes of the policy measures implemented during the period under review (last five years) in various sectors such as social protection of older persons, maintenance of their health and well-being, development of lifelong education, efficient employment, achievement of gender equality, securing family and social integration of the elderly, etc. The analysis involved a broad range of information sources (data from the State Statistics Service, departmental statistics of the Ministry of Health, the Ministry of Social Policy, the Pension Fund, the Ministry of Finance, the Ministry of Education and Science, Youth and Sport, etc.), and of statistical methods for information processing. Some policy measures were also studied with a longitudinal analysis method. To assess the efficiency of social programmes existing in Ukraine and aimed at older people, a special methodology for their efficiency assessment was developed by combining quantitative and qualitative approaches. In particular, quantitative analysis used population poverty indicators and their behaviour whereas qualitative analysis involved results of a special modular population survey on efficiency of social assistance programmes. The study also used a ‘top-to-bottom’ approach by carrying out (with involvement of professional sociologists) a special nationwide survey of older persons using the in-depth interview method (September 2011). One of the survey objectives was to find out the older people’s opinions on their treatment by the society and the State as well as to obtain their appraisal of the state policy on population ageing. To analyze the state of affairs in certain policy implementation areas (particularly on securing family inter-generational solidarity, reducing the older people’s rate of poverty and deprivations in living conditions, etc.), results of a number of socio-demographic population surveys, carried out in Ukraine during 2009-2010,