Improving the mechanism of privileges provision


The Government of Ukraine has been striving to find ways of reforming the system of social privileges for a long time. The reasons for it are poor targeting of privileges, their in-kind (non-cash) provision, inadequate accounting mechanisms, and a large number of legislation acts regulating privileges provision (about 50).

Under this direction of the Social Assistance Reform Project, the experts of CASE Ukraine studied the relevant international experience and other experts’ works, and jointly with the Ministry of Labour and Social Policy proposed options for reforming the system of privileges and assessed their potential impact.

Given the delicacy of the issue, reform of the privileges system should be gradual. The minimum set of changes would include streamlining the system of privileges, setting norms of consumption of services covered by privileges, and improving their accounting. The last issue may be addressed by introducing social electronic cards.The gradual replacement of privileges with targeted benefit types is also worth considering.

The main results of this pilot project are presented in the following publications:

1. Summary report on Improving the Mechanism of Privileges Provision

2. Rethinking Transport Privileges in Ukraine in Light of International Experience

3. International Experience of Using Electronic Cards to Provide Social Assistance

4. International Experience of Transforming Transportation, Housing and Communication Privileges into Targeted Benefits or Applying Means-Testing for Those Privileges

5. Social Assistance System Transformation: the Experience of Moldova

6. Social Privileges in Kyrgyzstan


7. International Experience of Providing Communication Privileges

March 11, 2009