Эффективность государственных институтов и формирование социальных рисков: теоретические аспекты взаимосвязи / Effectiveness of public institutions and formation of social risk: theoretical aspects of the relationship

Journal Title: Університетські наукові записки - Year 2014, Vol 13, Issue 1

Abstract

The article analyzes the peculiarities of state institutions impact on the actualization of social risks. The institutionalism theory has been chosen as a basic research tool because of the key role of public institutions in the formation and development of the system of protection against social risks. Social risks arise and exist in normal development of society. They naturally accompany the normal functioning of society. The causes of social risks are the basic social relations. In this context, consideration of only the economic aspects of public relations makes it impossible to fully research the nature and peculiarities of their demonstration — it is important to study all the socio-economic and political conditions and factors that affect their dynamics. Country's ability to transform its “relative backwardness” into the advantage of high growth depends on the quality of institutions. If property rights and contracts are poorly protected, the large gap with the leader will only reduce the rate of growth. In contrast, the convergence of the levels of development, that is outrunning rate of growth of poor country compared to the rich one, is possible if strong institutions are available. As social risks are inversely proportional to economic growth, it is suggested to use the results of P. Mauro’s research, who has tested the hypothesis of corruption impact on socio-economic country’s data (corruption data are negatively correlated with the rate of economic growth and the level of investments). This connection is resistant to the introduction of controlling variables (per capita income, level of education, etc.) and it is demonstrated in all countries. Thus it is possible to speak about direct proportionality between the data of corruption and social risks. According to the results of the European Social Survey, Ukraine, for several years, has been on the last places among the European countries in terms of trust in the government institutions. The problem of trust between the government and society is in several plans, the main of which should be considered the continuing rejection of the main figures of power by the population of some regions of the country. Therefore it is possible to trace the relationship between the level of trust in the government, the subjective perception of the economic situation in the country and the level of social risks. The institutional specificity of Ukraine is that the country is characterized by an excessive political and authoritative influence on the processes that require a broad social and public participation. Because of this position of the state, Ukraine is one of the countries, which is the most vulnerable to global risks. According to the published analytical global risks report (Global Risks Report) our country is on the 37th place, being more at risk than Russia, India and Turkey. The results of cross-country studies have shown that differences in economic and political institutions constitute the fundamental reason for the differences between countries in terms of welfare and country risks. There are many different types of explanations why countries have different institutions. One of the most acceptable explanations can be considered from the standpoint of the theory of social conflict, according to which the inefficient institutions exist because they are beneficial for groups with political and economic power. One of the most important factors of minimizing of social risks in Ukraine in terms of the institutional theory may increase trust to institutions, and primarily to the state.

Authors and Affiliations

Василь НАДРАГА

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  • EP ID EP425569
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How To Cite

Василь НАДРАГА (2014). Эффективность государственных институтов и формирование социальных рисков: теоретические аспекты взаимосвязи / Effectiveness of public institutions and formation of social risk: theoretical aspects of the relationship. Університетські наукові записки, 13(1), 368-377. https://europub.co.uk/articles/-A-425569