RESILIENCE OF THE SOCIO-ECONOMIC SYSTEM: STRATEGY AND TACTICS FOR MINIMIZING INEQUALITIES IN UKRAINIAN SOCIETY

Authors

DOI:

https://doi.org/10.35774/jee2024.04.560

Keywords:

adaptability, flexibility, inequality, policy of social quality, social resilience, societal resilience, social sustainability, stress resistance.

Abstract

The article is devoted to identifying the directions of state policy aimed at ensuring social sustainability and the challenges associated with the growing processes of inequality in the context of war. The authors revealed the substantive components of the concept of social sustainability, which is a systemic synergistic characteristic of adaptability, stress resistance, and flexibility of the social and labor sphere. The comparative analysis allowed to confirm the deepening of inequality processes in Ukrainian society in the context of a prolonged war and to prove that the solution to the problem of inequality lies in ensuring the social stability of the labor market, eliminating discrimination, and preventing exclusion from the labor market. The generalized threats to social sustainability allowed the authors to substantiate the institutional direction of ensuring the social sustainability of Ukrainian society, which includes the post-war renewal of the social contract based on the basic principles of social justice, cohesion, complementarity, social quality and inclusiveness.

JEL: J18, D63, D69, I30.

Author Biographies

Victoria BLYZNIUK, State Organization «Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine», Kyiv, Ukraine

DSc (Econ), Senior Researcher, Head of Department of Labor Socio-Economics

Svitlana SHUMSKA, State Organization «Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine», Kyiv, Ukraine

DSc (Econ), Associate Professor, Leading Researcher, Department of Economic Development Modeling and Forecasting

Tetiana BURLAY, State Organization «Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine», Kyiv, Ukraine

DSc (Econ), Associate Professor, Leading Researcher, Department of Economic Theory

Olena BORZENKO, State Organization «Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine», Kyiv, Ukraine

DSc (Econ), Professor, Head of International Financial Research Sector

Aikaterini-Sotiria ARGYRIOU, Athens, Greece

Master of Sciences in Shipping

References

AXA Research Fund. (2022, November 22). Building societal resilience: The role of inclusion in a gragmented world. https://axa-research.org/storage/media/ 1554/AXARF_Building_Societal_Resilience_digital.pdf

Blyzniuk, V. V. (2020). Institutional support of the inclusiveness of Ukrainian labor market [in Ukrainian]. Ekonomika i Prohnozuvannia, 3, 56-74. http://eip.org.ua/docs/EP_20_3_56_uk.pdf

Burlay, T., Borzenko, O., & Grytsenko, A. (2023). Societal consequences of modern hybrid war: Key dimensions in the context of Ukraine. Journal of European Economy, 22(2), 158-183. https://doi.org/10.35774/jee2023.02.158

Burlay, T., Dmytruk, D., Kostrytsia, V., & Levin, R. (2022). The social quality policy: theory and international approaches in the context of the Ukraine’s post-war reconstruction task. Ukrainian Society, 3(82), 09–27. https://doi.org/10.15407/socium2022.03.009

Cabinet of Ministers of Ukraine. (2024). Order of September 30, 2024, No. 922-r «On approval of the Demographic Development Strategy of Ukraine for the

Period until 2040» [in Ukrainian]. https://www.kmu.gov.ua/npas/proskhvalennia-stratehii-demohrafichnoho-rozvytku-ukrainy-na-period-do- 2040-roku-922r-300924

Cherenko, L. M. (2013). Specifics of formation and symptoms of inequality in Ukraine [in Ukrainian]. Demography and Social Economy, 2(20), 60-69. https://dse.org.ua/arhcive/20/6.pdf

Di Caro, P., & Fratesi, U. (2018). Regional determinants of economic resilience. The Annals of Regional Science, 60(2), 235–240. https://doi.org/10.1007/ s00168-017-0858-x

Diodato, D., & Weterings, A. B. R. (2015). The resilience of regional labour markets to economic shocks: Exploring the role of interactions among firms and workers. Journal of Economic Geography, 15(4), 723–742. https://doi.org/10.1093/jeg/lbu030

Edlund, J., Bechert, I., & Quandt, M. (Eds.). (2017). Social inequality in the eyes of the public: A collection of Analyses Based on ISSP Data 1987-2009 (GESIS-Schrift enreihe, 17). GESIS – Leibniz-Institut für Sozialwissenschaften. https://www.ssoar.info/ssoar/bitstream/handle/document/57225/ssoar-2017-edlund _et_al-Social_Inequality_in_the_Eyes.pdf?sequence=3&isAllowed=y&lnkname= ssoar-2017-edlund_et_al-Social_Inequality_in_ the_Eyes.pdf

European Commission. (2023, February 1). Analytical report following the Communication from the Commission to the European Parliament, the European Council and the Council Commission Opinion on Ukraine’s application for membership of the European Union (Commission Staff Working Document SWD(2023) 30 final). https://neighbourhood-enlargement.ec.europa.eu/system/files/2023- 02/SWD_2023_30_Ukraine.pdf

European Commission. (2024). Reducing inequalities. https://internationalpartnerships.ec.europa.eu/policies/human-development/reducinginequalities_-en#:~:text=SDG%2010%20aims%20at%20reducing,- %2C%20ethnicity%2C%20religion%20and%-20opportunity

Eurostat. (n.d.). Gini coefficient of equivalised disposable income [Dataset]. EUSILC survey. Retrieved from https://ec.europa.eu/eurostat/databrowser/ product/page/ilc_di12

Fingleton, B., Garretsen, H., & Martin, R. (2012). Recessionary shocks and regional employment: Evidence on the resilience of U.K. regions. Journal of Regional Science, 52(1), 109–133. https://doi.org/10.1111/j.1467-9787. 2011.00755.x

Ganzeboom, H. B. G., De Graaf, P. M., Treiman, D. J., & De Leeuw, J. (1992). A standard international socio-economic index of occupational status. Social Science Research, 21(1), 1-56. https://www.sciencedirect.com/science/article/ abs/pii/0049089X9290017B

Grytsenko, A., Bilorus, O., Burlay, T., Podliesna, V., & Borzenko, O. (2024). Ukraine’s economy: Resilience under war and challenges of post-war recovery. Science and Innovation, 20(5), 16-34. https://doi.org/10.15407/scine20.05.016

Haller, M., Jowell, R., Smith, T. W. (Eds.). (2009). The International Social Survey Programme 1984-2009: Charting the globe. Routledge.

Heyets, V. M., Burlai, T. V., & Blyzniuk, V. V. (2023). Social resilience of the national economy through the prism of the experience of the European Union and Ukraine [in Ukrainian]. Economic Theory, 3, 5–43. https://doi.org/ 10.15407/etet2023.03

Heyets, V., Blyzniuk, V., & Nykyforuk, O. (2022). The recovery of Ukraine: Social quality in the postwar societal space. International Journal of Social Quality, 12(1), 01–28. https://doi.org/10.3167/IJSQ.2022.120102

ILO. (2012). Social Protection Floors Recommendation, 2012 (No. 202). Information System on International Labour Standards. URL: https://www.ilo.org/ dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT _ID:3065524

InfoSapiens. (2024). Consumer Sentiment Index in October 2024 [in Ukrainian] [Press Release]. https://www.sapiens.com.ua/publications/socpol-research/ 324/CCI_Oct24_PR_ukr.pdf

Irwin, S. (2018). Lay perceptions of inequality and social structure. Sociology,

(2), 211–227. https://doi.org/10.1177/0038038516661264

Keck, M., & Sakdapolrak, P. (2013). What is social resilience? Lessons learned and ways forward. Erdkunde, 67(1), 5–19. https://doi.org/10.3112/ erdkunde.2013.01.02

Kostrytsia, V. I., & Burlay, T. V. (2023). Current priorities of social development: Impact of global transformations and Ukraine’s tasks in the (post)war period [in Ukrainian]. Ekonomika Ukrainy, 4, 97-116. https://doi.org/10.15407/ economyukr.2023.04.097

Kostrytsia, V. I., & Burlay, T. V. (2024, April 17-18). The post-war dimension of social security of Ukraine in the context of global trends [in Ukrainian]. In Theory and practice of development of the ecosystem of the social sector in the conditions of the post-war revival of Ukraine: Proceedings of the International Scientific and Practical Conference (pp. 176-183). Kyiv, Ukraine. Kyiv National Economic University. https://core.ac.uk/download/617986714.pdf

Kostrytsia, V. I., Burlai, T. V., & Blyzniuk, V. V. (2024). The deformations of the institution of social dialogue in Ukraine as a factor of social desolidarization. Economic Theory, 3, 45-80. http://etet.org.ua/docs/ET_24_3_45_en.pdf

Lenski, G. (1954). Status crystallization: A non-vertical dimension of social status. American Sociological Review, 19, 405–413. https://doi.org/10.2307/2087459

Libanova, E. M. (2014). Inequality in Ukrainian society: Origins and modernity [in Ukrainian]. Ekonomika Ukrainy, 3, 4-19. http://nbuv.gov.ua/UJRN/ EkUk_2014_3_2

Martin, R., & Gardiner, B. (2019). The resilience of cities to economic shocks: A tale of four recessions (and the challenge of Brexit). Papers in Regional Science, 98(4), 1801–1832. https://doi.org/10.1111/pirs.12430

Ministry of Social Policy: Factual size of the subsistence minimum [in Ukrainian]. (2024, July 25). Retrieved from https://kadrovik.isu.net.ua/news/581762- minsotspolityky-faktychnyy-rozmir-prozhytkovoho-minimumu

Ministry of Veterans Affairs of Ukraine. (2023, May 22). «This is a category of powerful people.» The Minister of Veteran Affairs spoke about assistance to veterans and their families [in Ukrainian]. https://mva.gov.ua/ua/news/cekategoriya-potuzhnih-lyudej-ministr-u-spravah-veteraniv-rozpovila-prodopomogu-veteranam-i-yihnim-rodinam

Novikov, V. M. (2013). Overcoming excessive inequality is the social policy priority [in Ukrainian]. Ukraina–Aspekty Pratsi, 3, 3-7. http://jnas.nbuv.gov.ua/ article/UJRN-0000286390

Novikova, O., Zaloznova, Yu., & Azmuk, N. (2023). Human capital recovery in Ukraine in the post-war period using the advantages of digitalization. Journal of European Economy, 21(4), 399-401.https://doi.org/10.35774/ jee2022.04.399

Oksamytna, S. M. (2015). The citizens’ self-identification in the social structure of Ukrainian society. Grani, 1(117), 67-72.

Pension Fund of Ukraine. (2024, July 17). The average amount of the assigned pension payment and the share of pensioners by the amount of assigned monthly pensions in their total number as of July 1, 2024 [in Ukrainian].

[Presentation]. https://www.pfu.gov.ua/2166027-serednij-rozmir-pryznachenoyipensijnoyi-vyplaty-ta-pytoma-vaga-pensioneriv-za-rozmiramy-pryznachenyhmisyachnyh-pensij-u-zagalnij-yih-chyselnosti-stanom-na-01-07-2024/

Piketty, T. (2014). Capital in the twenty-first century. Cambridge: The Belknap Press of Harvard University Press.

Pribytkova, I. M. (2006). New status nominations: Poor-middle-rich. In: S. Makeev (Ed.), New social inequalities (pp. 168-194) [in Russian]. Kyiv: Institute of Sociology, National Academy of Sciences of Ukraine.

Reggiani, A., De Graaf, T., & Nijkamp, P. (2002). Resilience: An evolutionary approach to spatial economic systems. Networks and Spatial Economics, 2(2), 211–229. https://doi.org/10.1023/A:1015377515690

Shumska, S., Gaidai, A., & Blyzniuk, V. (2023). Welfare оf Ukraine’s population: Assessments оf the level аnd impact оf key factors. Baltic Journal of Economic Studies, 9(2), 230-241. https://doi.org/10.30525/2256-0742/2023-9- 2-230-241

Simmie, J., & Martin, R. (2010). The economic resilience of regions: Towards an evolutionary approach. Cambridge Journal of Regions, Economy and Society, 3(1), 27–43. https://doi.org/10.1093/cjres/rsp029

Slozko, O.О., & Pidchosa, O. A. (2017). The solidarity economy: A review of the concept and results. In: A. S. Filipenko (Ed.), A Social and Solidarity Economy: the Ukrainian Choice (pp.18-35). Cambridge Scholars Publishing.

Sobel, M. M., De Graaf, N. D., Heath, A., & Zou, Y. (2004). Men matter more: The social class identity of married British women 1985–1991. Journal of the Royal Statistical Society, 167(1), 37–52.

Stiglitz, J. (2015). Tsena neravenstva: Chem rassloyenie obshchestva grozit nashemu budushchemu [The price of inequality: How today’s divided society endangers our future]. (E. Rozhdestvenskaya, Transl.). EKSMO. (Original work published in 2012)

Stiglitz, J. (2016). Velikoe razdelenie: Neravenstvo v obshchestve, ili shto delat ostavshymsia 99% naseleniya? [The great divide: Unequal societies and what we can do about them]. (F. A. Israfilov). EKSMO. (Original work published in 2015).

Sysak, I. (2023, December 7). The 2024 budget drama: how to close the 41- billion-dollar hole and where to get money for social benefits [in Ukrainian]. Radio Svoboda. https://www.radiosvoboda.org/a/milyard-dolariv-defitsytuyakzakryvatymut-diru-v-byudzheti-2024/32710041.html

Therborn, G. (2013). The killing fields of inequality. Polity Press.

United Nations, Department of Economic and Social Affairs. (2022). World population prospects 2022: Summary of results. https://www.un.org/ development/desa/pd/sites/www.un.org.development.desa.pd/files/wpp2022_sum mary_of_results.pdf

UNICEF. (n. d.). Socio-economic situation of households in Ukraine (according to the results of the nationwide sample survey of the socio-economic status of households, conducted in December 2023 - February 2024) [in Ukrainian]. https://www.unicef.org/ukraine/documents/social-economical-state-2023-24

Verkhovna Rada of Ukraine. (2005). Convention No. 131 Concerning Miminum Wage Fixing, with Special Reference to Developing Countries. Ratified by the Law of Ukraine No. 2997 of October, 19, 2005. https://zakon.rada.gov.ua/ laws/show/993_149#Text

Wilkinson, R., & Pickett, K. (2010). The spirit level. Why greater equality makes society stronger. New York: Bloomsbury Press

World Bank. (2024, February). Ukraine – Third Rapid Damage and Needs Assessment (RDNA3): February 2022 – December 2023. http://documents.worldbank.org/ curated/en/099021324115085807/P1801741bea12c012189ca16d95d8c2556a

Received: November 11, 2024.

Reviewed: November 19, 2024.

Accepted: November 25, 2024.

Downloads

Published

01.12.2024

How to Cite

BLYZNIUK, Victoria, et al. “RESILIENCE OF THE SOCIO-ECONOMIC SYSTEM: STRATEGY AND TACTICS FOR MINIMIZING INEQUALITIES IN UKRAINIAN SOCIETY”. Journal of European Economy, vol. 23, no. 4, Dec. 2024, pp. 560-8, doi:10.35774/jee2024.04.560.

Issue

Section

Europe in the World Economic System