The Verkhovna Rada has returned the 2013 draft national budget for revision. According to some MPs, the government must revise some indices, in particular, “those concerning the revenues.” There have also been promises to increase social expenditure, and this is perhaps the most popular part of it, since it concerns a raise in salaries for the public sector, revising and increasing pensions, revising minimum wages, increasing welfare payments, etc. Social expenditure is a main component of the national budget, it has to do with all citizens, from newborn infants to pensioners, but it often fails to meet households’ needs and provide adequate living standards. Unfortunately, a considerable proportion of Ukraine’s population is forced to rely on welfare payments, rather than on themselves. Ukraine’s social policy is still too far from promoting the development of the nation’s human potential, guarantee quality education, jobs, health care, and overall, dignified living.
According to the 2011 Human Development Report, Ukraine ranks 76 among 187 countries. Experts from the Ptukha Institute of Demography and Social Research have developed a methodology to calculate annual human development indices in the regions of Ukraine. The Day has asked Olena MAKAROVA, Ph.D., deputy director, Ptukha Institute of Demography and Social Research, doctor of economy, about the next year’s social component in the budget, and how it can promote such a major task as securing sustainable human development.
“IN 2011, ZAKARPATTIA OBLAST RANKED FIRST IN HUMAN DEVELOPMENT, WHEREAS CHERNIVTSI AND KHARKIV OBLASTS WERE SECOND AND THIRD, RESPECTIVELY”
The traditional components of human development include life expectancy, education, and GDP per capita. These are global human development criteria. Which regions of Ukraine lead in human development: Kyiv, Lviv oblast, or Donetsk?
“We have our own methodology of calculating the regional indicators of human development in Ukraine, which we have recently improved, and the new version, approved at the joint session of the State Statistics Service and the National Academy of Sciences’ Presidium, was presented earlier this year. At present, we have calculations made by this new methodology. We have somewhat simplified it, since the old version contained over 100 indicators. We have only kept those which directly influence human development: housing conditions, infrastructure, well-being standards, revenues, ecology, and the social environment. As far as decent working conditions go, here belong employment conditions and unemployment; the demographic block includes life expectancy indicators and infant mortality; the educational block has to do with education levels, average schooling length, and the proportion of population with formal, college/university education. We had long debates as to if a new indicator should be added, the average school graduation test results. We will see how it is going to work, but so far, it has provided good results as far as regional differentiation is concerned.
“In 2011, Zakarpattia oblast ranked first in human development, with Chernivtsi oblast second (the two oblasts swapped places after 2010), and Kharkiv oblast third. Why such outcome? The western oblasts have always been better in terms of environmental comfort, while the east led in economic development, including Donetsk, Dnipropetrovsk, and Luhansk, the industrial regions. Now we have noticed that those regions, which can better balance economic and social development, are taking the top places in the ranking. These are Chernivtsi, Zakarpattia, and Kharkiv oblasts. Zakarpattia has made it to the top of the rating due to demography, with a higher birth rate, a healthier environment, and a lower level of such anti-social phenomena as drug use, alcoholism, and crime.
“Unfortunately, Donetsk and the region, despite its powerful economic potential, ended up 18th. Overall, eastern Ukraine has the worst ecological indicators, a higher level of alcohol addiction, a worse crime situation, and worse birth figures. As a result, it has a worse integral human development index.
“We have long arrived at the conclusion that economic development alone is not sufficient for shaping human development. More important for the population’s living standards are comfortable housing conditions, ecology, and the quality of social environment.
“The worse situation is in Zhytomyr, Kirovohrad, Khmelnytsky, and Kherson oblasts. These are peripheral regions, where all indices, including housing conditions, ecology, economy, and birth rate, are worse on average. The negative development situation with some of these regions is accounted for by their past history. In particular, Zhytomyr oblast’s bad figures are to a certain degree explained by the consequences of the Chornobyl disaster, which has left it considerably maimed. Well-being figures are also low, because of these backward regions’ low economic efficiency. Such regions typically have seasonal labor migration as a widespread revenue source. People go away, earn an income, and come back.”
What can you say about Ukraine’s place in the worldwide human development rating? Has there been any progress? Last year we ranked 76 out of 187 countries.
“At the moment, Ukraine belongs to the group of countries having a high human development level, although we are still considerably lagging behind the group with top indices. Generally the tendency is positive, we are making a slow progress. I think that this positive shift can be accounted for by the still high quantitative education statistics. However, the quality of education is still dubious.”
“IN OUR COUNTRY BIRTH RATES ARE GROWING AMONG THE POOR AND ECONOMICALLY DISADVANTAGED”
The 2013 national budget has increased allocations for welfare payments to families with children, invalids, and the poor by 26 percent. Do you think this is reasonable?
“Families with children, indeed, are the most vulnerable group, and the highest poverty level is recorded among such families. I think it was quite justified to make this group top priority, moreover, if it includes the sick and handicapped. On the other hand, social security system eats up a lot of money. No degree of debating will help ease the burden on the economy. What probably needs to be done is to increase its efficiency, canalizing government aid to help those who need it most, rather than just axe spending. And since the existing welfare category system still allows for fraud (you can merely buy a certificate, and you are entitled to welfare payments), abuse and wasteful spending must be done away with immediately.”
The government has also provided for increased birth payments, 9 percent in total. In case of a first-born baby, parents are entitled to 29,800 hryvnias, the second, third and more children will “earn” them 59,700 and 119,400 respectively. Is this supposed to stimulate birth rate?
“It is not that simple. Indeed, these payments promoted birth, and now we observe a positive trend in this sphere. However, there is the other side of the coin. Problem families and poor families that cannot manage also prefer to have more children, for the sake of money. There is the danger that this tendency could persist, and it will only trigger the spread of poverty. The worst thing is that poverty is inherited: poor bring forth poor, and they are a majority compared to families with average incomes, typically self-reliant when it comes to raising children. Sadly, in Ukraine birth rate is growing among the poor and economically disadvantaged.”
“40 PERCENT OF 16-YEAR-OLD MALES RISK TO DIE BEFORE THEY REACH PENSION AGE”
“Health care is a very complicated problem. I am not sure that the reform, which is now being carried out, will yield expected results. I fear that we might destroy whatever we have, including the system of children’s doctors and district doctors, and that family doctors will not be able to fully replace what is available today.
“As far as prevention goes, it indeed is the most efficient method. Another crucial thing is to educate people to take up a responsible, healthy lifestyle. Even though more young people are attending gyms and other sport facilities today (at least, sport clubs are being increasingly more advertised), the proportion of people leading unhealthy lifestyles and keeping to unhealthy diets is still too high.”
The UN has recently published statistics to the effect that global infant mortality rates have dropped in general by 50 percent. However, in Ukraine it still doubles average European figures. The government claims that next year it is planning to open seven new perinatal centers, and reconstruct and re-equip the existing ones. Do you think this is enough to improve the situation?
“It is generally considered that infant mortality under 12 months is a nation’s most important demographic index. It allows to infer about the nation’s health and prospects. It is also an indicator of parents’ health and heredity. On the other hand, children can be born with problems, and as a rule, during their first year they are taken care of. However, it should be borne in mind that such children will require attention and special care afterwards as well. And therein lies the rub. A truly humane society should pay a lot of attention to this problem.”
What can be done to reduce the polarization of society?
“Europe and many other countries worldwide have a policy of social involvement, specially for such groups of population. For example, consider the homeless, former criminals released from jail, or orphans. They are so weak that they cannot reintegrate in society on their own. They need special services and help to get at least temporary housing, training, and employment. If this is not done, they will trigger an even worse criminal situation and the spread of anti-social diseases, such as tuberculosis, for one.
“Therefore, if society does not want to be afflicted, it must take care of such people and help them reintegrate. This can be done through non-governmental organizations, but they should be supported by state. The same goes for the disabled. They are widely employed abroad. It is often said in Ukraine that they must be employed at home. However, they will not be confined: they need communication, they need to create their own organizations, where they could work together with others. What is necessary for this is infrastructure, transportation, specially equipped buildings and roads.
“I make a special emphasis on ecological responsibility as top priority in the young generation’s education. Since we talk of sustainable development, which is supposed to ensure the living standards of generations to come, we must instill in the young a frugal treatment of energy, water, and other natural resources. This is really underestimated in Ukraine, since we are typically used to talk about the need to raise living standards, overcome poverty, and ensure a certain level of material consumption. However, time has come to look at the environmental problems and global challenges to human development. It is very important, if we take care of the future. This is number-one problem worldwide.”
