THE ROLE OF INSTITUTIONAL FACTORS IN PROVIDING POPULATION WELFARE
Abstract
The purpose of the article is to research of institutes’ and institutional factors’ influence on the level of population welfare. Analyzing, systematizing and generalizing the scientific works of many researchers it is revealed that the economic success of any country depends on the institutions – the rules under which its economy works and the incentives received by its citizens. As a result of the study, the essence of the concepts of inclusive and extractive institutions is disclosed. The modern institutional approaches to the study of the category “welfare” are singled out. The peculiarities of the formation of the institutional environment in Ukraine and its role in ensuring the population welfare are revealed. It was found that the institutional weakness in providing welfare is higher in countries with slow reforms than in transition countries due to the low effectiveness of institution-building policies, the satisfaction of the oligarchic top’s needs and corruption at the local and national levels. The essence of the concept “institutional trap” is revealed and the preconditions of its origin are revealed. A comparative analysis of the state of Ukraine’s institutional environment with other countries of the world was carried out using the indicators of the World Economic Forum and leading think tanks (Inclusive Development Index, Corruption Perceptions Index, International Happiness Index, Gini coefficient, Palma Coefficient etc.). The prospect of further research in this direction is the development of a mechanism for managing institutional factors in order to increase the population welfare in Ukraine.
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