TO THE ISSUE OF PUBLIC GOOD PROVIDING MODERNIZATION IN THE CONTEXT OF HOUSEHOLDS’ FINANCIAL WEALTH

Abstract

The article is devoted to urgent problems of building a socially oriented economy from the perspective of the provision and financing of public goods and services. The necessity of resolving this problem in close connection with the financial solvency of households has been underlined. The households are capable to offer funds for public services providing as well as they are capable to form reserves of maneuver of society in the event of financial shocks.

We are sharing a point of view that the leading factor of poverty in society is low incomes of employees through the unequal distribution of national income. However there are other reasons too. There is certain passivity in the income gaining from other sources. Because of  lack of incentives to intensive work and entrepreneurship, the share of income from entrepreneurship and self-employment in total household income that have to cover their needs for goods and services remains very low.

         Reasonability of the position that social security is not just a redistribution of national product in favor of the poor, but also a range of regulation measures for improvement of macroeconomic and political stability, avoidance of deepening social inequality is underlined.

Mutual responsibility of the state and the citizens are the key features of civil society. In the context of public services the government should provide the minimum standards of public goods consumption. The part of public goods should be financed from various sources. Commercialization became a prerequisite for improving the efficiency of public goods.

         The rationalization of socialization processes in distribution of GDP should be based on objective of optimal combination of interrelated economic and social imperatives of social development. The attention is drawn to the fact that the improvement of public provision of social standards should be consistent with the achieved level of economic development. The identification of opportunities for citizens to participate in the development of the public sector with minimizing their hopes of the public consumerism as a result of failure of incentives to intensive work and entrepreneurship now as the challenge for state policy in Ukraine have been stressed. In such processes the qualitative role of state should be increased, but not quantitative.