State as the main institution of increasing the level of social cohesion

The role of the state in the process of the social development of the society. Fundamentals to the social policy of the state, through which the state can really get into the level of social cohesion. Fundamentals of real-life social policy of the state.

Рубрика Социология и обществознание
Вид статья
Язык английский
Дата добавления 14.10.2018
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Kyiv National Economic University named after Vadym Hetman

State as the main institution of increasing the level of social cohesion

Grynenko A.M., Ph.D., professor, anatolygrinenko@ukr. net

Kyryliuk V.V., assistant


social policy cohesion state

The aim of the article is to research the process of enhancing social cohesion. The main approaches to social policy of the state that enables it to influence the level of social cohesion are covered. In modern conditions social policy is universal, necessary and functionally important area of social life, especially for improving social cohesion. Main directions of the implementation of state social policy in the context of social cohesion have been researched. Changes in the policy of citizens' incomes, sector of employment, health, education, culture, housing sectors of state social policy are hihglighted. The main factors of the increase of the level of social cohesion in Ukraine have been analysed

Keywords. Social inequality, social cohesion, social stratification, income inequality; social policy.


Держава як основний інститут підвищення рівня соціальної згуртованості суспільства

У статті розглянуто роль держави в процесі підвищення соціальної згуртованості суспільства. Розкрито основні підходи до соціальної політики держави, через яку держава може реально впливати на рівень соціальної згуртованості суспільства. Соціальна політика в сучасних умовах є універсальною, необхідною та функціонально значимою сферою життєдіяльності суспільства, особливо для підвищення рівня соціальної згуртованості суспільства. Вивчено основні напрямки реалізації соціальної політики держави в контексті соціальної згуртованості суспільства. Акцентовано увагу на змінах у політиці доходів громадян, сфери зайнятості населення, медичної, освітньої, культурної, житлової сфери державної соціальної політики. Проаналізовано основні фактори росту рівня соціальної згуртованості суспільства в Україні.

Ключові слова. Соціальна нерівність, соціальна згуртованість, соціальна стратифікація, нерівність доходів; соціальна політика.


Государство как основной институт повышения уровня социальной сплоченности общества

В статье рассматривается роль государства в процессе повышения социальной сплоченности общества. Освещены, основные подходы, к социальной политики государства, через которую государство может реально влиять на уровень социальной сплоченности общества. Социальная политика в современных условиях является универсальной, необходимой и функционально значимой сферой жизнедеятельности общества, особенно для повышения уровня социальной сплоченности общества. Исследованы основные направления реализации социальной политики государства в контексте социальной сплоченности общества. Акцентировано внимание наизменениях в политике доходов граждан, сфере занятости населения, медицинской, образовательной, культурной, жилищной сферах государственной социальной политики. Проанализированы основные факторы роста уровня социальной сплоченности общества в Украине.

Ключевые слова. Социальное неравенство, социальная сплоченность, социальная стратификация, неравенство в доходах; cоциальная политика.

After becoming an independent state Ukraine declared course towards liberalization of social relations. Certain changes that were signs of the government's withdrawal from traditional paternalistic forms of relationship between the people and the government occurred. Pension reform and targeted types of social assistance were introduced. Centralized funds of public consumption that formed the basis of social security were terminated. Social insurance funds emerged in the area of social protection against social risks. They were autonomous, separated from the state budget and based on insurance solidarity principles.

Scientific studies show that the biggest changes have occurred in systems of education [1], system of employment, [4], health care, housing and communal services [2], ideological sphere (a significant easing of censorship, almost complete absence of defined state ideology), government regulation [11], salaries, etc; military reform was introduced. Significant transformation of cultural values occurred. A more opened-type culture of positive perception of the international experience and increased sense of involvement in global development process was formed instead of closed-type culture of the Soviet period. However, despite significant changes in modern social relations, a significant share of paternalism still remains in society along with the remnants of the elements of old (Soviet) system of relations.

The data of the research conducted by Ukrainian Institute of Social Studies named after O. Yaremenko in 2013 indicate a certain change of values in Ukrainian society: "Under the conditions of sufficiently high demand for paternalism, an increase in numbers of those who believe that the state should create conditions for citizens to provide a decent standard of living on their own was reported". This point of view is nowadays supported by 68.8 % of respondents and even by 73,6-76,4 % of young people. At the same time, 28 % of respondents believe that the state must provide citizens with a decent standard of living, albeit not very high, but for everyone [6,30].

The main aim of this paper is to present directions of state social policy in Ukraine. This article propounds the following thesis reforming social policy in Ukraine should be the basis for improving social cohesion of Ukrainian society and integration of our country into the community of developed countries. To accomplish the research aim undertaken in this paper, the authors used specialist literature both in Ukrainian and in English (Academic Search, BazEkon, EBSCO, Google Scholar, In the article used the method review of scientific literature.

This article consists of introduction, six subsections and conclusions. The second subsection describes trends directions of improving state social policy in Ukraine; the third subsection deals household incomes; in other subsections considered more sphere of employment, sphere of education and sphere of health.

Research results. In modem conditions social policy is universal, necessary and functionally important area of the development of society, especially for increasing the level of social cohesion. Its objective nature and scope of implementation are defined by high level of social diversity and complexity of social relations in societies of modern type, which as factors of social development require constant efforts towards their regulation.

Ukraine is declared a social state, the one that has a set of rights and freedoms, high standard of living of the majority of population reached through a certain system of social security. Therefore, the course of reforms should be aimed at social priorities and the reforms should be filled with social content. It is known that after the collapse of the Soviet totalitarian system such actions as the development of economic activity of the population, entrepreneurship promotion, formation of middle class and its strengthening were put in the forefront of the social policy of Ukraine. In our opinion, the government failed these tasks. Collapse of employment, deep polarization of incomes, rising poverty and emergence of a number of other problems followed as a result.

Solving such problems and developing social mechanisms to the level of modern European democracies is an integral component of modern integration processes. It is obvious that political slogans and good intentions are not enough to provide social cohesion. It should form consciously, purposefully, consistently and with the participation of all social forces. A special role in this process belongs to the state [5, 237;13]. The state can and must influence the level of social cohesion through social policy and its instruments.

Under conditions of transformation of social relations, formation of the social state and civil society, social policy aims to narrow down, and, eventually negate the role of factors that are losing their social value or slowing down the process of public sociodynamics in social life and create conditions for strengthening the role of factors and determinants that promote social progress, enhance social security of people. Currently the goal of social policy is to solve contradictions of social development that slow down the formation of socially oriented economy, middle class, social mobility, establishment of effective mechanisms of social sustainment of the person, the main subject of social development [11, 109]. In our opinion, it is advisable to consider directions of improvement of social policy of Ukraine in the context of social cohesion in terms of the following areas of state's activity: household incomes; employment and labor market; healthcare area; housing policy; education area.

The problem of income is, perhaps, the most complex and controversial issue. It is known that at a certain stage of development society divided into different social groups, characterized by significant economic inequality in income between rich and poor. Nowadays, inequality of incomes is one of the most destabilizing factors that negatively affect the level of social cohesion. Intensive income inequality is quite a painful and explosive topic for modern Ukrainian society, which authorities and social layers that find it uncomfortable, do not like to discuss for obvious reasons, and, therefore, tend to ignore [11, 110].

Healthy macroeconomic policies play the most important role in creating stable conditions necessary for growth. However, such policy can not be guided solely by market mechanisms, otherwise there is the risk of losses due to negative social consequences. Market economy, like any other economic system, creates inequality of financial resources and financial situation and thus affects people's income which is the basis for their social well-being. State policy in the regulation of incomes does not meet the imperative of our time and requirements for progressive and sustainable development. In order to solve the problems in distribution, redistribution and regulation of incomes it is necessary to make a number of transformational changes (see Table 1).

Table 1. Directions of improvement of state social policy regarding incomes


Expected results


Tax reform (creating a fair tax system);

1. Improvement of the structure of incomes;

2. Decrease of the level of shadow economy from 47 % to 30-40 %;

3. Development of small and medium businesses (increasing the share of small and medium businessess in the area of employment from 40 % to 5060 %);

4. Formation of the fundamental prerequisites for the creation and development of middle class in the coming years;

5. Taxes reduction and their equitable distribution (tax burden will be transferred to more prosperous groups of population);

6. Increase of the level of minimum of subsistence based on the revised cost of the consumer basket (in 2-2.5 times);

7. Increase of the efficiency of targeted orientation of assistance and social protection;

8. Decrease of budgetary expenditures on social assistance as a result of their effective distribution;

9. Legalization and transfer of a significant part of funds from offshore zones to the budget of Ukraine;

10. Reduction of corruption.


Review of the cost of consumer basket and its alignment with the real modern conditions;


Clarification of the minimum of subsistence and proving the necessity to change it for basic social and demographic groups considering regional differentiation. Making sure that the minimum of subsistence will function as a state social standard;


Adoption of new regulatory acts and improvement of the system of existing regulatory acts related to wages, minimum of subsistence and the tax system of Ukraine;


Reduction of budgetary social costs as a result of implementation of targeted social aid and increase of the efficiency of the system of social support;


Implementation of the mechanism of verification of legality of incomes in cases of purchasing expensive goods (apartments, houses, cars), as well as shares and other securities, depositing (transferring) large amounts of money;


Strengthening financial, administrative and criminal liability for tax evasion;


Social engagement of vulnerable groups of population;


Legalization of incomes promoting;


Formation of a clear and stable legal base for efficient operation of all business structures and strengthening the fight against economic crimes and corruption;


Fighting against offshore zones of Ukrainian companies in Cyprus and other countries;


Restoration of the system of means of social mobility.

Source: compiled by the authors

If they are to be successfully implemented, it would contribute to ensuring equality of opportunities and social justice, which in our opinion, is a prerequisite for increasing the level of social cohesion in Ukraine. The level of domestic households' incomes is insufficient for savings. Consumption expenditures are dominant in the structure of total households' expenditures. The vast majority of savings was of insurance and reserve nature, not investment. Therefore, the transformation of incomes policy and structural improvement of households' incomes is one of the priority directions.

Improvement of the structure of incomes (increase of salary, dividends, interest on deposits, property ownership shares in the total structure of income), development of consumers market, decrease of social obligations of the state to citizens, formation anddevelopment of a new lifestyle will lead to the formation and strengthening of middle class, which is one of the most important tasks for Ukraine in terms of integration into the world economy. Compliance with the abovementioned mechanisms of the improvement of the policy of incomes and expenses will lead to an increase in real incomes and economic activity of population, decrease of differentiation of population by income level and competitiveness of Ukrainian economy [7].

Since the main part in the income structure of the population of Ukraine is salary, which is the remuneration for work, then the solution of the employment problems is the next direction of improvement of social policy and increase of the level of social cohesion. Small and medium business are the basis for the formation and development of the middle class and are one of the key objects in the areas of incomes and employment. At the same time middle class acts as a force that can support market reforms and become the social base of such support. Simultaneously, the pace and quality of these transformations are also associated with middle class. If market reforms act as an instrument, middle class as the embodiment of national welfare acts as a target of this process [7]. That is why, in our opinion, the government should support and promote small and medium businesses, increase the share of small and middle business in GDP and other measures of employment, and improve the functioning of labor market (see table 2).

Table 2. Directions of improvement of state social policy in the area of employment and remuneration of labor


Expected results


Improvement of the regulatory framework in the area of employment and remuneration of labor, effective monitoring of compliance with adopted regulatory acts;

1. Increase of efficiency of adopted regulatory acts and adoption of new regulatory acts in the area of employment;

2. Decrease of the level of hidden unemployment from 40 % to 20 %;

3. Decrease of the level of youth unemployment in 1.5-2 times;

4. Increase of the level of legal employment and decrease of the share of informal employment;

5. Decrease of the level of parttime employment (improvement of part-time employment);

6. Increase of the minimum and average salary to the level that would actually meet the cost of living;

7. Improvement of the quality of educational services and greater mutual consistency between educational services market and labor market;

8. Increase of investments in the development of enterprises, regions, industries.


Ensuring the right to work and creation of conditions (removing barriers) for self-realization;


Increase of salary (Increase of the level of minimal salary);


Provision of labor market flexibility and expansion of opportunities to use workforce of different professional qualification;


Promotion of the transition of people from informal sector to formal sector of employment (increase of the motivation towards legal productive employment);


Strengthening the link between labor income and social protection;


Adoption of national and regional employment programs;


Regulation of consistency between the educational services market and

the labor market (obligatory employment of young specialists after graduation);


Promotion of the creation of new jobs by means of soft loans and tax incentives;


Reorganization of employment services;


Mutual consistency of employment policy and economic policy;


Implementation of active measures of fiscal and investment policy;


Provision of employment for vulnerable groups of population and persons with special needs.

Source: compiled by the authors

Implementation of the abovementioned steps requires the interaction of state, business and society -- it is necessary to attract investment and donor assistance, which will allow this country to enter a whole new level in the development of small and medium businesses and establishment of the middle class. More attention should be paid to the quality of education and vocational training programs, not the number of students. Education policy should give special significance to the preparation of competitive specialists in important professions with the use of universal training programs in order to increase the possibility of a smooth transition from education to work. Except for the youngest age group (students after graduation), the state should focus on improving the chances of employment for the older age groups, and, on the other hand, stimulate all those who have a right to any kind of pension to exit the work group (restriction of receiving full salary and pension at the same time) [4, 527].

It is necessary to direct efforts to remove barriers for voluntary migration, the spread of information about job openings and living standards across the country, improvement of infrastructure, transport system and housing market (including the development of the real estate mortgage system). Particular attention should also be paid to measures of diminishing chronic rural [4, 528].

Ensuring an effective health care system is recognized as one of the directions of development in Ukraine in the coming years. There are different opinions about the vision of the principles of financing health care in Ukrainian society. Some are inclined to think that this should be a budget system (without direct or indirect payments), some believe that it is necessary to develop an affordable health care insurance system.

First of all, in our opinion, the state should pay attention to the formation and spreading of standards of healthy lifestyle in society. More specifically, measures aimed at reducing consumption of alcohol, fight against narcomania and smoking. In addition, it is necessary to proportion physical activity, which can be realized through the development of appropriate infrastructure (bikeways, free recreation grounds, inexpensive sport club and swimming pools). Main directions of improvement of Ukrainian health system are shown in Table 3.

Practical implementation of many measures is important for the increase of life expectancy. To begin with, in our opinion, it is necessary to develop and adopt the Law of Ukraine "On basic principles of state policy regarding elderly persons in Ukraine" which would guarantee medical care for elderly persons. It is also necessary to legislate mandatory annual preventive examinations of people of retirement age (60 years and older), and regulate relations of health and social services [7].

Active housing policy should be viewed as an integral part of effective state social and economic policy. The level of social efficiency of the latter is largely determined by the ability of the state to fulfill its constitutional obligations to the citizens in the housing sector. Activation of efforts of the government towards solving housing problems of citizens would create conditions for solving a wide range of socioeconomic and socio-political issues. In particular, it would provide a powerful boost for domestic construction industry, and through it, to the entire Ukrainian economy. Also, it would positively affect the existing labor market [2, 4].

Table 3 Directions of improvement of state social policy in health care area


Expected results


The Ministry of Heakthcare should restore the system of mandatory medical examinations for early diagnoses of diseases and make medical aid accessible to all layers of population;

1. Adoption and improvement of a number of legislative acts -- the Law of Ukraine "On reproductive health protection", the Law of Ukraine "On health care financing and mandatory medical insurance in Ukraine", the Law of Ukraine "On emergency medical assistance"; The Law of Ukraine "On medical autonomy", the Law of Ukraine "On basic principles of state policy regarding elderly persons";

2. Legislative consolidation of the mandatory medical examinations;

3. Decrease of mortality from disease and the number of ill persons;

4. Decrease of infant mortality;

5. Development of sports and recreational infrastructure (construction of new sports grounds, sports centers, bikeways, etc.);

6. Increase of life expectancy in the medium term (by 1-2 years);

7. Decrease of the number of alcohol addicted, drug addicted and tobacco addicted persons among all age groups in Ukraine;

8. Increase of investments in medical sector of Ukraine;

9. Increase of the number of family doctors;

10. Optimization of hospitals network;

11. Consolidation of changes to the Budget Code of Ukraine on health financing in the amount not less than 5 % of GDP.


Ensuring formation and spreading of standards of healthy life style;


Effective struggle with alcoholism, narcomania and smoking among the population;


Investments in improvement of quality and expansion of access to medical services;


Formation and improvement of the system of prevention and early diagnosis, especially for socially determined diseases;


Reform of the system of medical area management;


Development and adoption of the Law of Ukraine "On basic principles of state policy regarding elderly persons in Ukraine";


Development and strengthening of the institution of family doctor;


Optimization of the network of regional, city and precinct hospitals, change of specialization and conversion of these hospitals in order to meet the needs of the population in health care;


Acceleration of the development of the system of reproductive health protection;


Providing access to medical services to all citizens of Ukraine regardless of their wealth and place of residence.

Source: compiled by the authors

State administrative impact on housing affordability can be realized through systematic implementation of measures which are formed into an effective mechanism based on regulation of factors that directly influence the formation of its value. This would allow to ensure stable economic development of the country in conditions of unstable global economic situation. Creation of conditions that would help overcoming the housing crisis must become a real strategic priority of state policy.

In our opinion the optimal strategy of the state regarding housing market is to create the most favorable living conditions for socially and economically active groups of population, promoting the formation of middle class while supporting socially unprotected parts of population. In order to implement this strategy it is necessary to work on the main directions of improvement of housing policy which are outlined in Table 4.

Table 4. Directions of improvement of state social policy in housing policy area


Expected results


Adoption of adequate minimal social housing standards at the state level;

1. Increase of minimal social housing standards;

2. Gradual practical implementation of


affordability programs

3. Increase of domestic production of building materials by 20-30 %;

4. Overcome of bureaucracy and corruption in the area of providing plots of land for real estate development;

5. Increase of subsidies allocation efficiency;

6. Creation of housing associations and imposing functions of customers and investors of social housing on them;

7. Practical implementation of the mechanism of tax exemption;

8. Providing tax incentives for socially responsible business;

9. Increase of housing supply by enhancing investment activity in construction;

10. Increase of effective demand through mortgage lending;

11. Decrease of the share of dilapidated and energy-inefficient housing;

12. Increase of apartment building co-owners associations and quality of housing and communal services.


Development and implementation of new effective housing affordability programs;


State-level support of domestic producers of building materials that will be directed exclusively in the segment of affordable housing;


The elimination of corruption component through the use of municipal resources:plots of land and licensing documents;


Setting differential fee for renting and maintenance of social housing that would depend on income;


Enhancing construction and sales of affordable and social housing through the creation of housing associations;


Granting tax exemptions for real estate developers involved in social housing construction program;


Implementation of policy that would stimulate enterprises to build houses and provide employees with accommodation in terms of social renting;


Formation of organizational and financial scheme that determines the need for mortgage lending;


Solving the problem of rehabbing (reconstruction) by applying modern energy saving technologies, materials and equipment;


Technical upgrade of housing and public utilities enterprises;


Professional competitive apartment housing management on the basis of creation of apartment building co-owners associations.

Source: compiled by the authors

A clear definition of the criteria of market and social housing affordability should be an important point in the implementation of social housing policy. The main criterion of market housing affordability is the time during which a citizen can improve his or her housing conditions. This time parameter (coefficient of housing affordability) depends on the level of incomes and prices on the housing market (and consumer credit market), as well as the amount of budgetary funds that the state is able and willing to direct towards provision of its citizens with housing. This parameter makes it possible to identify a certain part of population that has incomes, savings and other assets which allow it to provide itself with housing on its own by purchasing (including by means of mortgage loans) or renting it.

In order to determine availability of mortgage loans it is necessary to set the marginal share of income that people can direct to loan settlement. The amount of monthly loan payments should not exceed the nationwide share of the total budget of a household (family) [2, 24-26].

Priority of the provision of the right to education and improvement of social policy in the education area also plays one of the main roles in increasing the level of social cohesion. According to sociological researches education of good quality is a basic value for 90 % of the Ukrainians. It is obvious that fruitful and constructive cooperation of central and regional authorities with educational institutions is a necessary component of implementing functions of education system management on national and regional levels. This allows to fulfill all state education standards effectively. In addition, the regional authorities function as coordinators and controllers and provide formation of effective mechanisms of regional education management in Ukraine on the basis of implementation of conceptual principles of theory of public administration, economics, laws of formation and development of relations [1].

However, along with interaction of central and regional authorities with educational institutions, establishing close connections with private sector and civil society is one of the main components the system of lifelong education. The state should be more pluralistic when it comes to provision of educational services, education system financing and management [1]. Transition to the system of lifelong education demands that central and regional authorities cooperate with private sector and civil society, using the comparative advantages and combining efforts in order to achieve common goals during transition to the system of lifelong education (see Table 5).

Table 5. Directions of improvement of state social policy in education area


Expected results


Ensuring the availability and continuity of lifelong education;

1. Practical implementation of principles of ensuring accessibility and continuity of lifelong education and their constant improvement;

2. Increase of salaries of people employed in education and science areas;

3. Gradual elimination of corruption components in the education system at all levels;

4. Implementation of the assessment system

"who is who" that is founded not only on the basis of evaluation of acquired knowledge and competencies, but also on the assessment of natural abilities and aptitudes of pupils, graduates and students; evaluation of classes, groups,schools,highereducation


management of education institutions;

5. Change in structuring the stages of secondary education;

6. Objective independent measurement of knowledge and competencies as the final stage of every educational level;

7. Increase of the number of specialized schools and providing them with the staff of high quality;

8. Increase of quality and prestige of vocational education;

9. Improvement and completion optimization of education institutions network, the most prudent forethought in reorganization and creation of a network of educational institutions of different levels and orientation for rural areas, small towns and big cities;

10. Gradual integration of the system of higher education of Ukraine in the world and European education and scientific space in the next ten years.


Fight against corruption at all levels;


Reorganization of Department of Education in order to

ensure protection of national, regional and local interests;


Reform of secondary education and conceptual reform of technical schools, colleges and vocational education in general;


Optimization of educational institutions network;


Development of the principle of thrift education at all levels;


Modernization of structure, content and organization of education based on competence approach;


Implementation of the model of integrated and inclusive education at all levels;


Ensuring healthy and fair competition in the education market on the basis of objective evaluation of the quality of higher education;


Introduction of regular diagnostics of labor market in order to use budgetary funds for higher education rationally;


Formation of motivation and ability to learn among persons who are willing to learn and who are already learning on the permanent basis;


Elimination of inequality of public access to quality education at all levels;


Integration of the system of higher education of Ukraine in the world and European education and scientific space.

Source: compiled by the authors

The system of lifelong education implies that learning should become more flexible and diverse. This allows alternative mechanisms of organization educational process, such as distance learning and e-learning, which provides the opportunity for free and flexible participation of students, as well as modular courses that are provided as needed [1].

In order to increase the effectiveness of social policy the level of social cohesion it is necessary to modernize economy and develop infrastructure (this will allow to gradually overcome territorial disparities that exist between urban and rural populations). Development of appropriate social infrastructure is equally important. Considering the fact that a third of Ukraine's population lives in rural areas, including almost a third of the economically active part of it, it would be impossible to prevent further mass outflow of rural youth to cities and degradation of villages. The primary task is the transformation of relationships between central and local authorities as well as change of mechanisms of funding construction and operation of infrastructure objects [1].

Secondly, it is necessary to encourage public-private partnerships (attracting investments of enterprises and companies, tax and other incentives for companies involved in infrastructure development). It is also important to delegate rights and obligations regarding development and maintenance of infrastructure objects to local authorities and local communities (with appropriate transformations of tax and budget systems). And finally, it is necessary to restore regional social, communal and cultural infrastructure for the development of regional labor markets [7].


Assessment of the current system of state social policy in Ukraine shows that it is imperfect. The following key priorities of social policy should be prioritized: provision of decent employment, balanced policy of incomes, modernization of vocational education, provision of basic social standards and social protection of vulnerable groups of population.

At the current stage, through the social policy the government has to learn, explore, analyze the nature of the origin of human needs, structure of consumption, separate rational needs of people, families, social groups and individual regions, society as a whole, taking into account the diversity of needs and consumers. Reforming social policy in areas of incomes of the population, employment and salaries, housing policy, health care, education and culture, combined with the modernization of the economy, development and implementation of the concept of social cohesion should be the basis for improving social cohesion of Ukrainian society and integration of our country into the community of developed countries of the world. Confirmation of this hypothesis is that our country is actively pursuing reforms in all areas of social policy to European integration. These considerations leave ample room for further analyses. This applies to both the research areas of social policy and its interaction with social cohesion and separately for each of the areas of social policy and social cohesion components.


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