SYSTEMIC IMPROVEMENT OF FINANCIAL INSTRUMENTS OF SOCIAL POLICY FOR VULNERABLE GROUPS

Abstract

The article provides a comprehensive analysis of theoretical foundations and practical approaches to the formation of financial instruments of social policy from the standpoint of systematicity, innovation and orientation towards sustainable social development. It is substantiated that financial instruments of social policy should be considered not only as a mechanism for redistributing resources and minimizing social risks, but also as a tool for social investments aimed at developing human capital, increasing employment levels and reducing the dependence of vulnerable groups on constant state support. This approach allows reorienting social policy from a short-term response to social problems to achieving long-term socio-economic results. The article pays special attention to the analysis of the role of the state in the formation of an effective system of financial instruments of social policy, as well as the possibilities of using international experience in this area. It is shown that in countries with developed models of the social state, active support instruments that combine financial assistance with programs of employment, professional adaptation, education, entrepreneurship and social entrepreneurship dominate. Adaptation of such approaches to national conditions is considered an important factor in increasing the effectiveness of social policy in Ukraine. The article also focuses on innovative financial instruments of social policy, in particular the development of social entrepreneurship, the use of grant programs, public-private partnership mechanisms and result-oriented financing. It is substantiated that the combination of budgetary resources with funds from business, the public sector and international donors allows diversifying sources of financing of social programs, increasing their effectiveness and reducing the fiscal burden on the state budget. The role of regional innovative approaches, which ensure the adaptation of financial instruments of social policy to the specifics of the development of territories and the needs of local communities, is separately considered. The results of the study indicate that the systematic improvement of financial instruments of social policy for vulnerable groups is a necessary condition for strengthening social stability, reducing the level of social inequality and ensuring sustainable social development. The practical significance of the article lies in the possibility of using the obtained conclusions and generalizations in the process of forming and implementing state and regional social policy programs aimed at supporting vulnerable groups of the population in the face of modern socio-economic challenges.