METODOLOGICAL APPROACHES TO THE STUDY OF THE PARADIGM OF SOCIAL FINANCE

Abstract

Social and political transformations in Ukraine cause the search of fundamentally new directions for functioning of socio-economic system. One of the ways of solving these problems is the formation of methodological approaches to the paradigm of social finance. Social finance as a financial tool for solving economic and social problems emerged in the late twentieth century in the United Kingdom and the United States. It should be mentioned that in the present circumstances in Ukraine the support of the social sector is the main direction of the state. In foreign countries social problems are successfully solved and social guarantees are provided using works by W. Beveridge, J. Rawls, R. Schiller.

The article reveals the evolution of the concept of "social finance" using scientific achievements of such scholars as A. Nichols, J. Emerson, T. Pickett, D. Sheiman. Today, the world's widely used tools of social finance are social enterprises, social financial investment funds. It is proved that a modern sense of social finance is a part of social investment that in its turn is the resource of achieving social changes. It was found that social investments cover financial, social and human capital, but unlike conventional investments, social finance provides obtaining a specific effect for the society, in other words, directed investments to improve social indicators. The obtained results of the study determined the place and role of social finance in the redistribution of resources for receiving a social impact. The place of social finance in the public redistribution consists in using social tools for implementing timely financing of social services and social infrastructure maintenance. The role of social finance is to implement social programs to support poor people, to support and finance social initiatives of economic growth. The sources of the funds of social finance are a private capital, the capital of business entities, investment resources as well as charitable contributions and grants. The necessary conditions to support social finance from public and private sectors are strengthening the role of non-budgetary sources; non-traditional forms of fundraising of business structures and households to finance social development; the expansion of payments for social services; the involvement of non-profit organizations for solving urgent social problems.