Prospects for the implementation of unconditional basic income in Ukraine (part 2)

Abstract

The article reveals the role of unconditional basic income (UBI) as an innovative tool for the development of the national economy. Based on the analysis of scientific works of domestic and foreign scientists, its advantages and disadvantages are determined. According to its supporters, the advantages of UBI include: transparency, efficiency, poverty reduction, positive impact on economic growth. Among the shortcomings, the following can be distinguished: high cost, probable loss of motivation by citizens to work, impossibility to eliminate the fundamental causes of inequality with the help of UBI. Examples of the implementation of UBI in developed, developing countries, and countries with emerging markets are given. The current socio-economic situation in Ukraine is characterized, taking into account the influence of endogenous and exogenous negative factors, the consequences of the full-scale Russian invasion, in particular the loss of territories with significant deposits of natural resources and powerful industrial potential, mass migration of the population, etc. Our state is currently unable to use its powerful economic potential. An analysis of the expenditures of the State Budget of Ukraine for 2023 on social protection and pension provision of the population was carried out. It is proposed to introduce the UBI in Ukraine as a reliable tool of social protection with the use of international aid funds (during martial law) and rent payments as sources of its payment. It is concluded that the payment of UBI will increase the level of trust in the state and reduce corruption, as citizens will have less need to receive additional income outside the tax system and state support programs.