State and Prospects of Development of Welfare Economics in Ukraine

Journal of Environmental Treatment Techniques

2019, Volume 7, Issue 3, Pages: 377-382

State and Prospects of Development of Welfare

Economics in Ukraine

Olha Koicheva *, Bilokur Yevheniia , Nehara Rodion

Department of Administrative and Financial Law, National University «Odessa Academy of Law»», Odessa, Ukraine, E-mail:

olgakoicheva11@gmail.com

Department of Administrative and Financial Law, National University «Odessa Academy of Law»», Odessa, Ukraine, E-mail:

evgeniabelokur@gmail.com

Department of Administrative and Financial Law, National University «Odessa Academy of Law»», Odessa, Ukraine, E-mail:

nrv.oda9941@gmail.com

*Corresponding author email: olgakoicheva11@gmail.com

Received: 05/06/2019 Accepted: 10/08/2019 Published: 20/08/2019

Abstract

The desire to become an integral part of the European community demands from Ukraine to comply with certain requirements

and to conform to the established standards. One of the criteria for compliance is the developed economy, which ensures the interests

of the state as a whole and of each member of society separately. For many years our state has been trying to take its "place in the

sun" where all its citizens will do well, and everyone will be able to meet his or her needs, despite the fact that they all are different.

Ukraine, like almost all post-Soviet states, refers to developing countries, and this factor must necessarily be taken into account when

building the modern economy of the country. The economic welfare of a person is determined by many socio-economic factors, such

as: level and quality of life, the provision of necessary vital goods, the amount of wages agreed with the necessary and desirable

needs. The most important indicator of economic prosperity is the level and quality of life. It is the quality of life that determines the

level of provision, the abundance not only of individual citizens, but also of the country, of the nation as a whole. The definition of

welfare" should be traditionally understood as the correspondence between the volume of goods and the volume of needs, the level

of implementation of which depends on the level of their manifestation, which is formed under the influence of both internal and

external factors, and the financial support necessary for their satisfaction. Factors influencing the presence or absence of welfare and

determining its level can be divided into: subjective –psychological features, upbringing, education, environment, outlook, mentality,

and objective –the urgent problems of time, the dominant ideology, the type of economic system, economic expectations, and the

impact of scientific and technological progress. The urgency of the study of the feasibility of the welfare economics is stipulated by

the urgent need to improve living standards through the implementation of the specified model of economics in Ukrainian society,

which is currently in a deep protracted crisis, constantly faced with the difficulties of the transition period, the emigration of the able-

bodied population and other factors that negatively affect the level of life of the population.

Keywords: Economics Of Welfare, Happiness, Living Standards Of Population, Economic Needs, Human Factor.

of a society and enables to find out the desirable trajectory of

Introduction

social development. The current and prospective levels of

welfare are the factors that can hold back or promote social

and economic development creating incentives or levelling

the desire of members of society to implement the proactive

economic behaviour. In addition to the discussion character

of the indicator of social welfare, the list of factors

influencing its level remains open and controversial and it

stipulated the necessity to further study this issue in order to

develop effective measures of social and economic policy.

The evolution of economic theory has always occurred

under the influence of various shifts in the real world

economy. This is a dialectical process of interdependence and

mutual influence, which contributes to the accumulation and

A human being is proclaimed to be the highest social

value of the state. Its rights are to be protected, needs are to

be satisfied, and interests should be taken into account when

building a society which the person lives in. A separate

individual, like society as a whole, seeks to increase its own

welfare, which is the natural purpose for the functioning of an

economic system. Therefore, the problems of measuring

welfare and finding the ways to improve it have been in the

spotlight of many scholars for a long time starting from the

classics of economic theory to well-known contemporary

theorists. In general, social welfare is a socio-economic

category that combines the economic, social, ecological,

cultural and institutional components of the living conditions

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2019, Volume 7, Issue 3, Pages: 378-382

formation of new theoretical knowledge. However, the

modern economic reality is so diverse and flexible that the

speed of its change is ahead of the tempo of its study. The

current proliferation of artificial intelligence in the course of

innovative discoveries makes it necessary to reconsider the

angle at which economic processes are conducted in order to

meet the needs of society.

At the present stage of development, society is changing

its priorities – it is no longer merely the satisfaction by the

material goods obtained as a result of commercial activity,

the attention is paid to obtaining aesthetic enjoyment, which

in most cases involves the realization of abilities and talents

through creative work for people.

The analysis of the mechanism for implementing the

welfare economics and the factors influencing it will make it

possible to calculate the criteria for assessing the welfare of

the population. In the modern world, there are still no

generally accepted universal criteria that will serve

simultaneously as directions of its implementation of the

welfare economy. Despite the importance of this sphere of

public life in the domestic science, its development is not

sufficiently studied.

is aimed at studying which economic factors and to what

extent determine human happiness, how human happiness

depends on the level of economic development of a country,

which economic parameters reflect the "level of happiness"

of society as a whole, how the sense of a person's own

happiness affects the effectiveness of his economic activities,

and what is the measure of responsibility for the happiness of

the individual and the state is (14).

It is difficult to even imagine what kind of connection can

be between the two concepts of economics and happiness

without mentioning the interdependence and direct impact of

happiness on the economics, but not vice versa. In joint work

with the American Economist R. Kranton, Nobel Prize

Winner G. Akerlof and R. Kranton, repeatedly wrote about

the necessity and possibility of recording the peculiarities of

self-perception of a person in the economic analysis (1). The

level of life satisfaction is one way to determine the level of

welfare. The search for happiness of an individual in a

society is a prerequisite for the development of the economics

of welfare.

The study of how the welfare of people depends on the

level of income is one of the new directions of the economy –

the welfare economics which emerged on the brink of three

sciences: economics, sociology and psychology in the 70's of

XX century. A group of American scholars led by R.

Easterlin found that the incomes of Americans significantly

increased for the period under study, but the quota of happy

people did not practically change (3). The received

conclusions were called "Easterlin paradox". These studies

Methodological Frameworks

With the advent of the 21st century, we are aware that the

modern society we live in and try to develop is a consumer

society. Life often dictates its own conditions of being in it,

and when it is accompanied by a continuous focus on

consumption, then the number of dissatisfied people who are

not contented with the ever-increasing "standard of living" is

inevitably increasing. The phenomenon of so called down

shifting can be increasingly observed which is a voluntary

rejection of the gained social status, career growth and a

deliberate reduction in the level of income in order to free

some time for the sake of oneself and the family. Such people

appreciate their free time more than money and permanent

accumulation of material wealth (17).

Economic growth, as one of the main indicators of the

consumer economics, is a rather negative trend, the essence

of which is that the values of a consumer society which exist

at present cause changes in the general public conscience.

According to American economist J. Sachs (11), nowadays

all social values are involved in pursuing (in the race)

corporate profits which begins to dominate other aspirations:

honesty, justice, trust, physical and mental health as well as

environmental sustainability. This development tendency is a

global threat to human development, because society is

gradually becoming aware that the economics which main

purpose is to increase consumption and maximize profits

does not have a prospect of development and existence. In

search of a variant of radical changes, the scientific

community of the whole world hopes for new scientific

directions – economic theories of happiness and welfare

which presuppose another, and in some cases, the opposite

ideology of society's development.

have caused

a widespread resonance in the scientific

community, as the conclusions of scientists questioned the

traditional desire of society to increase consumption in the

form of achieving the growth of real GDP per capita. If the

growth of consumption does not make people happier, then

what the level of happiness depends on?

In 1974, Easterlin published the results of his research in

the article "Does economic growth improve the human lot?

Some empirical evidence" (3). In his study, the author

demonstrated that for a certain period of time under study, the

income of Americans increased significantly, and the quota

of happy people in the country remained practically at the

same level. He also researched the influence of changes in

relative income to the satisfaction of life. It turned out that

Americans appreciate relative rather than absolute income.

The conclusions drawn from the study are called "Easterlin

Paradox".

"Easterlin paradox" can be explained by the fact that the

level of happiness is not related to absolute income, but

relative income, in other words, the comparison of own

income with the income of others makes people either happy

or unhappy. It is known that the needs of people grow along

with an increase in income, but when incomes already cover

the basic needs of a person, he begins to use money to

compare himself with others. People want not only to be

wealthy, but to become richer than others. The economic

growth simply cannot meet this need for everyone indeed

The economic theory of happiness (economics of

happiness) is one of the new directions of modern research

based on the concept of bounded rationality which was

proposed by the Nobel laureate H. Simon. The subjective

perceptions of an individual about the satisfaction of his life

as an economic phenomenon are in the limelight. This theory

(16).

The Easterline paradox stirred the minds of modern

economists and stimulated new research on the relationship

between income levels and welfare of life. Compared with

the works of the last century, the quality of such researches

have increased. So, modern researchers have increased the

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2019, Volume 7, Issue 3, Pages: 378-382

size of the sampling population and increased its

representativeness, as well as studied other factors affecting

welfare more deeply.

As the result of researches, interesting conclusions were

drawn – the positive dynamics of economic indicators did not

correspond to the increase of welfare in the countries with a

transition economy.

in the writings of A. Smith, according to whom the physical

increase in the number of amenities arising from the division

of labour and the use of machines in the work of employees

and means the growth of social welfare, makes it possible to

formulate the dependence of social welfare on the

productivity of social labour and its proportionality to needs

(12).

Modern domestic scholars explain such a discrepancy by

three factors: the first one is macroeconomic instability; the

second is the deterioration in quality and accessibility of

public goods; the third is the age. Let us consider these

factors in more detail.

In general, the classical schools associate the growth of

social welfare with the implementation of scientific and

technological progress that takes place independently of the

will of individuals, is based on the relations of competition

and is always displayed in the growth of wealth in the form of

commodities.

Macroeconomic instability and uncertainty in

economic policies are causing a decline in the welfare of the

population in both in the countries with developed and

transition economies. This is a general dependence for all

countries.

In the opinion of the neo-classicists, the problem of

welfare formation was in the fact that the sphere of rendering

services as a source of wealth was outside the attention of

scholars. They studied public interest as a sum of personal

interests. Based on these beliefs, A. Pigou assigned the

important role to the state with the function of interference to

the mechanism of utilization of resources and income

transfers from rich to poor.

Thus, at the beginning of the twentieth century, the

economics of welfare has gradually transformed into the

Theory of Public Choice, in which a positive analysis has

been carried out of how different social benefits are built up

and implemented.

. Deterioration in quality and accessibility of public

goods. In comparison with the socialist period in transition

countries, public goods have become less accessible, and

their quality has deteriorated. People had expectations about

the quantity and quality of these amenities in the past, when

these amenities were free and of acceptable quality, and this

negatively impacted the welfare of the population.

. Age. Young people in the countries with transition

economies are just as happy as in other countries, but older

people are unhappier. The dependence of life satisfaction on

age in other countries has the form of a U-like curve: the

satisfaction first falls to the age of 35-40, then begins to

grow, and reaches the level of 18-year-olds by age of 80-88.

In countries with transition economies, another situation has

been identified – older people are always less happy than

younger people (4,5,6).

Based on the above, it can be concluded that welfare

cannot be characterized by one qualitative or quantitative

indicator, it has a wide range of interrelated and

interdependent characteristics.

3.2 Modern Approaches to Definition of the Welfare

Economics

The present stage of the economic development of

society is characterized by the transition from the desire to

obtain material values in order to meet the material needs to

the desire for self-expression which indicates that the needs

of a modern individual are constantly expanding with an

emphasis on personality of the individual. In all spheres of

life there is a tendency of transition from the desire to meet

the physiological needs of aesthetic and spiritual ones

indicating changes in the system of values of society. The

transition from permanent to higher needs is evidence of the

consciousness transformation of members of society, which

demands to develop a new approach to the study of processes

and phenomena, in particular economic ones, as the

traditional scientific approach cannot explain the laws of

development of intellectual society (13).

The welfare has been considered in two main aspects to

the present day – what should be part of the concept of

person's welfare and through which mechanisms it is possible

to realize welfare. In these approaches, an individual is

primarily considered as a consumer creature. At the present

stage of human development, the influence of the intellectual

component increases and it makes it necessary to regard a

person as a creator who wants to be realized through creative

work.

Results and Discussions

.1 Formation and Development of the Economics of

Welfare

Studying the stages of development and formation of the

welfare economics, the special attention should be drawn to

the inextricable connection with the development of

economic thought, whose history of development

simultaneously serves as a history of the development of the

science of wealth, welfare and the possibility of their

achievement. The mentioned problems were of interest to the

well-known thinkers of antiquity. Aristotle argued that wealth

is certainly not the wealth we strive for because it is useful, in

other words, it exists only for the sake of something else (2).

In general, the research of welfare was conducted by

leading economists of all time – from the classics of political

economy to the liberals of the German school, from

marginalists V. Pareto, A. Marshall, V. Pigou to

contemporaries, who contributed to the development of

theories and models of welfare, such as S. Kuznets, J.

Buchanan, A. Sen (10)

The human factor is gaining widespread recognition in

the economy and in the strategic planning of its development.

A look at the problem of economic welfare through the prism

of the human factor will enable to see the motivation of

subjects in the economy which is not primitive and one-

dimensional, but complex and multi-element, to predict and

effectively regulate its development. While forming the

welfare, the greatest attention should be paid to ethical values

and needs because ignoring them generates global problems

The most widespread idea at the present time is that the

theory of welfare has evolved through the study of English

economist A. Pigou, but the first mention of it can be found

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in the economy. They are the factors which the level of

human development depends on, which affects the extent of

manifestation of economic needs, and those, in turn, stimulate

the economic activity of society, on which the level and

quality of life of its members depend on.

further development. In accordance with the conceptual

approaches of L. Erhard, the regulation of economic relations

should be based on the impossibility of limiting competition.

The peculiarity of perfect competition lies in the fact that an

individual seller cannot set a price that exceeds the market

price, since buyers can buy the necessary amount of goods

from other sellers at market price.

Another necessary condition for the practical

implementation of the theory of social welfare is to create the

stability of currency circulation, namely, to prevent inflation

of the monetary unit. And the latter is almost one of the main

pillars for the development of both business and the economy

of a country. This is confirmed not only by the experience of

European countries, but also Ukraine.

So in the country now there is stagnation of all chains of

economy. The constant decrease in the value of the national

currency leads not only to the transfer of financial savings of

the population into more stable and firm currencies, but also

to the reduction of production in the real sector of economy,

distrust of both citizens and investors to the Ukrainian

monetary unit, the game of lowering the cost of hryvnia in the

financial market, the increase in credit rates and financial

pressure on the population of our state and, consequently, the

increase in prices of manufactured products and the decrease

in the living standards of the majority of Ukrainians.

And one of the most important conditions for the

development of society, according to the theory of social

welfare, is the social security of members of society and

justice in all spheres of their life. At the same time, the

creation of social security and justice is not primarily due to

the provision of subsidies or other types of state assistance to

the population by the country, but through the development

of entrepreneurial activity, control over the use of budget

funds by the state and local governments, implementation of

financing programs for sectors of priority for the economy of

the country.

Explaining the correlation of economic growth in various

countries and the level of welfare of their population, the

economics of welfare gives the opportunity to draw the

following conclusions. For the poorest countries and

countries with developing markets, GDP growth will solve

two problems: the growth of material welfare and the

improvement of the mental well-being of citizens. As for

developed countries, as the problem of achieving a high level

of material conditions has already been solved for them, the

problem of increasing mental well-being moves to the

foreground.

Instead, Ukraine has not yet developed a single concept

for the development of the welfare economics. the only

theoretical basis for the development of our country in the

post-Soviet period was practically the realization of the

principle of "invisible hand of the market" according to

Adam Smith's market economy theory, "... based on the

principle of "laissez faire" (from French – to enable to act,

not to interfere with the move). The essence of this principle

is that the natural order based on the liberal economic idea of

free enterprise and non-interference of the state in economic

activity must not be violated by any external factors.

Nowadays human-centred development prospects have

begun to push out the prospects which are profit-oriented

only. Such a reorientation sets new tasks for science, based

on the principle that the economy exists for the development

of people, and not vice versa. This approach is an alternative

to the previous concepts of welfare, which essence was

reduced to the fact that material wealth is the most important

value that can replace other values. Therefore, the conduct of

economic activities was based on methods with the

application of approaches that would provide society with

maximization of wealth. The presence of national wealth will

not always be a guarantee of a choice available as there may

be one or maybe not, therefore, to realize the welfare

economics, it is important not only the availability of wealth,

but also the way it is used in the country (15). After

comprehending such allegations, a logical question arises –

do we really need such achievements as their availability

does not provide any guarantees.

During the period of research, welfare considerations in

economic science made the transition from total scope of

consumption to its structure, then from purely material values

to non-material and spiritual ones, and gradually included

such factors of human existence as rest, health, cultural and

professional development, the condition of environment and

so on. In modern economic research, welfare is

combination of not only economic, social and environmental

factors, but also organizational, legal, moral, ethical and

political relations that successfully regulate the processes of

life and harmonious development of society. A retrospective

analysis of opinions suggests the need for the use of a

systematic approach to the study of processes and phenomena

of socio-economic life, since the focus on the study of its

individual components does not guarantee the desired result.

After all, together with the development of society and its

corresponding transformations in the economy, which cover

both quantitative and qualitative changes, the concept of

welfare" evolves. On the basis of the above, one can

conclude that welfare is the correspondence between the

volume of values and the volume of needs, the level of

implementation of which depends on the level of their

manifestation which is formed under the influence of both

internal and external factors and the financial support that is

necessary for their satisfaction. The subjective factors should

include psychological features, upbringing, education,

environment, worldview, and mentality. While the objective

factors should consider time problems, dominant ideology,

type of economic system, economic expectations, influence

of scientific and technological progress. Welfare is a complex

economic, social and psychological category that includes an

ecological component and characterizes the standard of living

of the population as a measure of satisfaction of needs which

spectrum is formed at one or another stage of the evolution of

welfare under the influence of major problems of time.

Despite the rather positive processes regarding the

implementation of reforms by state authorities and self-

government, these measures are not comprehensive. Thus, for

the last two years, a considerable number of documents on

.3 Conditions of Welfare Economics

To build a modern welfare economics, there is a need for

certain prerequisites that will contribute to its formation and

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2019, Volume 7, Issue 3, Pages: 378-382

reforms in various branches of economy and administration

have been introduced in our state. However, this activity can

be characterized as an implementation of part of the

legislation of the European Union in response to the financial

and political pressure of the European community and part of

the society of our state. Accordingly, the results of such

activities have insignificant financial and social effects.

industrial and raw material base according to the values of

GDP and GNP, but in this case insufficient attention is paid

to the conditions under which there is an increase in

production capacity in order to increase economic indicators.

European countries have switched to a new index for

assessment of development and capacity of the country – the

Civilization Index of Welfare (CIW), which is calculated on

the basis of the GDP rate deducting the cost for restoring the

previous environmental conditions in the country, repairing

the health of citizens working in dangerous and harmful

industries. The new indicator has become more apparent in

terms of the real situation in the country. The CIW index has

not been widely spread, and it has led to the development of

new methodologies for measuring the level of economic

welfare of citizens.

.4 Implementation of Foreign Experience in Implementing

the Welfare Economics

Ukraine has been a developing country for many years.

To build the modern welfare economics, it is necessary to

study the experience of foreign countries and the possibility

of adopting positive reforms in order to achieve the result –

the welfare of the population.

One of the most successful examples of the

implementation of the theory of social welfare is the

realization of the model of social state of Gunnar Myrdal in

Sweden in accordance with the concept of creating a "State of

Welfare". G. Myrdal saw the peculiarity of the social model

of development in Sweden in introduction of a system of

legislative, economic and social guarantees for members of

society. At the same time, the main condition for increasing

the welfare of the able-bodied population is equal conditions

for conducting entrepreneurial activities, and for the

incapacitated persons –creation of conditions and provision

of a certain level of life necessities.

In the concept of "State of Welfare" of G. Myrdal, the

state also has a major role in ensuring social protection of the

population and the development of entrepreneurial activities.

So, the main directions of activities of the state are: to

provide members of society with a high cost of living and to

provide financial assistance to those who need it due to

objective reasons, to suspend privileges for those who do not

need them; to create conditions that enable citizens to earn

money for a productive life by any means that do not

contradict the law; to create conditions that ensure

satisfaction of the high level of citizens' needs in education,

medical care, etc.; to provide favourable working conditions

for hired workers, protecting them from the negative impact

of the market economy; to ensure ecological safety for

members of society; to protect citizens from criminal

attempts; to protect civil and political rights and freedoms in

accordance with the principles of a legal and social state; to

protect from political persecution and administrative

arbitrariness; to provide freedom of the spiritual life,

protection against ideological pressure; to create a favourable

social and psychological climate both in society in general,

and in separate places and structural units, protection from

psychological pressure; to ensure maximum stability of

public life (7).

The project of Organization for Economic Cooperation

and Development (OECD) became a step forward in the

search for new methodologies which was entitled "Better–

Live–Initiative". According to this project, launched in May

2011, all indicators of measurement and evaluation of well-

being, welfare needed to be reduced to a general basis. The

purpose of the project was a qualitative assessment of the

level and quality of life not only from the economic, but also

from the environmental, social, personal and other sides. The

initiator of this project was former French President Nicolas

Sarkozy, who declared in 2008 that the values of GDP and

GNP do not give a real picture of either the real state of

affairs in the country or the prediction of the future – the

further welfare of citizens.

The commission was established in 2008 and it decided

during two years on the assessments to be included in the

general welfare criterion. Two years later, in 2010, the final

decision was taken that it was necessary to collect data on the

quality of education, health care, safety, and the state of the

environment, but also about the subjective assessment of

personal welfare by a person (8,9).

The last indicator is worth a little more detail. Subjective

evaluation is rather complicated, because it is necessary to

take into account the correspondence of a man – a woman, a

poor person – a rich person, a young specialist – an elderly

employee. The data of correspondence enabled to analyse the

relationship between social and gender inequality.

According to the "Better–Live–Initiative" project, on

December 12, 2011, the first results of the first stage of

research were received. The stage was proclaimed in the form

of a question – "How is life?". This stage was aimed at

gathering static data that enabled to conduct monitoring and

to make conclusions by comparing data from different

countries. The welfare was evaluated according to 11 most

important and necessary areas (criteria) – income, work,

housing conditions, society, education, environment, health,

civil rights, safety, satisfaction, rest.

The concept of G. Myrdal had been developed before

Ukraine became an independent state, but the principles of

building a welfare economics in our country are relevant to

the present day.

Turning to more modern reforms, it should be

remembered that the assessment of national economic

welfare in terms of GDP, GNP and total national income is

impossible, and the reason is the inconsistency of the

economic situation in the country with the level of well-

being. Most developed countries make conclusions about the

technological and scientific development of the country, the

The concept of the "welfare economics" has

tremendous theoretical and practical value, as it enables to

look at the problems of human development from a different

perspective. Today there is a unique opportunity to adopt

foreign experience and try to create a new economic system –

the welfare economics.

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Conclusions

The main problem solved by the theory of social welfare

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https://www.project-syndicate.org/commentary/the-economics-

of-happiness?barrier=accesspaylog

2. Smith, А. A Study on the Nature and Causes of the Wealth of

Peoples. Introduction and comments by V. Afanasyev. Moscow:

Publishing House of Social and Economic Literature.1962.

3. Stiglitz, J. Report by the Commission on the Measurement of

Economic Performance and Social Progress.2009. URL:

http://www.stiglitz-sen-fitoussi.fr/

The given analysis of the research history of the

population welfare testifies its urgency and practical value for

more than one century. The peculiarity of the category of

welfare of the population" is primarily in the impossibility

of its display by using only one connection or indicator.

Therefore, there is an urgent need to build a holistic system of

characteristics and indicators that would provide a complete

and comprehensive assessment of the category under

investigation. And the current realities of Ukraine are

encouraging to create the own welfare concept, to improve

the theoretical and methodological approaches to its study

taking into account the social and economic, cultural and

spiritual characteristics of each region.

It is certainly impossible to make all and everyone

absolutely happy people who will live in absolute welfare.

But the task of the welfare economics is to create conditions

in which it is possible to provide material and, primarily,

spiritual satisfaction with life. Perhaps it is precisely the

welfare economics that can become the basis of a new model

of sustainable development which can change not only the

world economy as a whole, but also the life of each

individual separately. It will be a model of development

where not only the optimal balance between the needs of

society and limited resources will be found, but also the ways

to maximize the emotional welfare of mankind will be

proposed.

documents/rapport_anglais.pdf.

4. The Happy Planet Index. Report. A Global Index of Sustainable

Well.2012.

URL:

http://www.happyplanetindex.org/assets/happy-planet-index-

report.pdf.

5. Vlasova, T. Human Welfare: Essence and Specificity at the

Present Stage of Development of Social Relations. Bulletin of

the Chernivtsi Trade and Economic Institute, Series "Economic

Sciences". 2009; 3: 9-17.

16. Vorobiev, E. & Demchenko, T. The Economics of Happiness as

a New Economic Paradigm. Journal of V. N. Karazin Kharkiv

National University. 2013; 1086: 74-77.

7. Yudin, B. Human Potential of Russia: Intellectual, Social,

Cultural Dimension. Russian Academy of Sciences. Human

Institute. Ed. Moscow: Human Institute of Russian Academy of

Sciences. 2002.

The conducted researches make it possible to assert that

nowadays Ukraine is facing challenges that are connected

with the formation of the new conceptual approaches to the

development of the economy which is based on the principles

of the welfare of society.

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