Social Protection through Motivation


Social Protection through Motivation

Talking about assessing and transforming functions of the social protection system we should define what results these assistance and transformation should be targeted. And the goal should be placed at both the macro and micro levels.

Social service is in close contact with real sector of economy. On the one hand, it performs a sort of order from the real sector on human capital formation. On the other hand, it is a “compensator” of demand inconsistencies in real sector with the quality/quantity of available human capital. Due to this inconsistency, part of the population remains excluded from economic activity, unable to ensure their own well-being and in demand of the real sector expenditures.

The share of excluded population to be involved in economic activity depends on the work of social protection system. The ratio of the number of people receiving various forms of social protection and then engaged in an economic activity, the total number of recipients of social assistance will show the transformation index of socially vulnerable population. The closer the coefficient to 1, the better the transforming function of the system of social protection. And vice versa, the closer the index to zero, the greater the dependence of socially vulnerable groups on social protection measures.

Although these statements seem to be theoretical, they are still worth mentioning, as they set a benchmark that allows to measure changes of effectiveness of social protection measures in economy in the future.

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