The Welfare State on Paper: How Poverty Destroys Ukraine’s Constitutional Principles

Ukraine today is a country of contrasts, and Ukrainian society is bursting at the seams. Some are trying to survive in conditions of constant austerity, rationing food, denying themselves even basic needs. And others, among whom are primarily those who call themselves “servants of the people”, go on vacation to expensive resorts, buy luxury cars and unjustifiably increase their wages, devaluing the work of other sections of the population.
While we are being convinced of the need to tighten our belts, the luxurious estates of politicians shine with golden chandeliers, and at their banquets, toasts to “important achievements” are heard. The people say: “to whom is war, and to whom is the mother”. In this reality, war and crisis do not become an obstacle for them, but an opportunity to fill their pockets. Article 1 of the Constitution states that we live in a democratic, legal and social state. But can it be called the truth, when for the majority of the population, life has turned into a struggle for survival, and privileges and laws work only in favor of the chosen ones?
“Ukrainian abyss”
In recent years, the gap between rich and poor has become so deep that it seems as if we live in parallel worlds. And while the elites are building themselves “islands of safety” with high fences, the rest of the country is sinking more and more into poverty. Let’s try to figure out how it happened that instead of development and prosperity, we got a survival economy.
As indicated the results survey of the socio-economic status of households (OSESD), which was conducted by the Institute of Demography and Problems of the Quality of Life of the National Academy of Sciences of Ukraine and the Ukrainian Center for Social Reforms in December 2023 – February 2024 by order of the Ministry of Social Policy of Ukraine, in 2023 the poverty level in Ukraine increased by 1 .7 times compared to 2021 (from 20.6% to 35.5%). Experts indicate that the main reason for this growth was a sharp economic downturn in 2022, and 2023 only cemented this trend.
However, in Zakarpattia and Chernivtsi regions, the poverty level remained at the level of 2021, which is due to the relocation of enterprises to safer areas of the country and the arrival of displaced persons to these areas after the start of a full-scale invasion. On the other hand, in the Chernihiv, Sumy, and Volyn regions, poverty rates have increased significantly due to proximity to the borders, population migration, and, in the case of the first two regions, active hostilities. It should be noted that the data do not cover temporarily occupied territories.
If we compare it with the first years of the Russian-Ukrainian war (2014-2015), when the poverty level of the population tripled, then in 2022, despite all the difficulties, the economy more or less held up.
The level of poverty is also indicated by the indicator of GDP per capita, which in 2023, which at the current exchange rate of the US dollar was $5,181 per capita, was the lowest among European countries, where the world average is $11-12 thousand. However, even here the situation is not unambiguous, as this indicator has increased compared to the level by 2022 ($3,200–3,600), which is explained by the reduction in the number of the country’s population.
As we can see, the level of poverty in Ukraine has increased rapidly in recent years. The average citizen is increasingly faced with a choice: to buy products or pay for utilities. The income of most families has been reduced to the level of survival. At the same time, the rich are getting even richer, using the economic crisis for their own benefit. Elite areas, expensive cars, offshore – this is a completely different world that exists in parallel with the lives of most Ukrainians. For those with resources and connections, there are virtually no laws. Trials against the rich are turning into a farce, and corruption has long become the norm. It is hardly possible to talk about democracy, when for some laws are just a formality, and for others they are a burden. Small businesses are being suffocated by taxes and fines, the middle class is disappearing, and migrant workers are leaving the country in search of a better fortune. Those who remain become hostages of a system that works for the benefit of the chosen ones.
Welfare state or utopia
Ukraine officially declares itself a social state. But in a welfare country, pensioners cannot afford even basic medicines, and young people are forced to work two jobs to somehow make ends meet. Public assistance is distributed unfairly, and most support programs exist only on paper.
Democracy means equality of opportunity. However, unfortunately, today this word is losing its meaning. When the rich dictate the rules and the poor are forced to suffer in silence, democratic principles are destroyed. The constitution becomes a declaration of ideals that have nothing to do with reality.
Growing poverty does not only lead to economic problems. This becomes a threat to the existence of the country as such. The destruction of the middle class, the polarization of society, and distrust in justice and the state stand in the way of building the country’s well-being and progress. Now more than ever, the political will for change is needed. Ukraine needs not only to persevere in the struggle for its independence, but also to promote the country’s development and accession to the EU. And here it is important that deputies surrender their principles and be ready to give up their privileges for the sake of justice and the welfare of the whole country
Survival for some, privileges for others
Families, where parents work two jobs to feed their children, constantly hear from politicians that life is difficult for everyone, there are not enough funds in the budget, and therefore they have to be patient. But this “difficult” for ordinary people means queuing at humanitarian centers or saving on medicine. For deputies, it is a “restricted vacation” when they have to fly in business class instead of a private plane.
Even during the war, when society gives its last for the front, in many top offices, completely different matters are boiling. Land plots, corrupt tenders and lobbying for the interests of the rich are the focus of many potential rulers. They do not care about the problems of ordinary workers and pensioners.
For a long time, the Ukrainian system was built so that the rich and influential were beyond the reach of the laws. While ordinary people work to pay their taxes, those taxes are often turned into funds for the welfare of those sitting in the seats of parliament. Every time there is an increase in the salaries of teachers or doctors, the deputies sigh sadly: “The budget won’t last“. But strangely, there are millions for new cars for government institutions or renovations of offices. Such stratification leads to despair and destroys society from within. People stop believing in justice, in power, in the possibility of change. The country is turning into a training ground for the enrichment of the chosen ones, while the majority is just fighting for survival.
The growth of deep poverty is directly related to the consequences of full-scale war. Pensioners who live alone and receive the minimum pension suffer. Internally displaced persons (IDPs) who have been left without a roof over their heads, property they have accumulated over the years and have not been able to find work, are fighting for survival. But, paradoxically, in the labor market, despite the shortage of personnel in some professions, the unemployment rate remains high. This is due to the fact that the labor market has not yet fully recovered after the start of a full-scale war. According to experts, the level of recovery is about 2/3 or 3/4 of the pre-war level. The number of jobs is still significantly lower than in 2021. In addition, part of the population has moved abroad, and the creation of new jobs in some regions remains insufficient. Also, the demand for labor does not match the supply. In certain fields, especially those that require high qualifications, there is an acute shortage of specialists. In such cases, employers are forced to offer higher wages to attract the right workers.
How to fight poverty: lessons from other countries
Poverty and inequality is a problem faced by all countries of the world. However, some states have been able to find effective ways to reduce the gap between rich and poor, making equality and social justice not just words, but reality.
Let’s go through the pages of history to find out exactly how they managed to do it. So, in the 1930s, during the Great Depression, the United States was on the verge of economic collapse. Millions of people lost their jobs and homes. President Franklin Roosevelt launched the New Deal program, which became a turning point in the fight against poverty. During this program, the state created millions of jobs through large-scale infrastructure projects, introduced social insurance and a minimum wage. As a result, the country received economic growth, and many Americans were able to return to a fulfilling life.
It is enough to mention Germany, which literally lay in ruins after the Second World War, and the level of poverty was off the charts. But after several decades, the country became one of the strongest economies in the world. Officials invested in education, created conditions for the development of small businesses, and introduced a wide system of social benefits. They created the so-called social market economy, where a balance is established between market freedom and the state’s responsibility to citizens.
In 2003, Brazil launched the Bolsa Família program, which provided cash payments to the poorest families. The principle of operation of this program was based on the payment of financial assistance to families if their children went to school and regularly visited the doctor. This enabled more than 40 million people to lift themselves out of extreme poverty.
Over the past 40 years, China has lifted more than 800 million people out of poverty. The government has implemented numerous reforms in agriculture, created jobs in cities, and constantly invests in infrastructure and education. Even now, the state adheres to a clear strategy to combat poverty as part of the national policy.
But in some Canadian provinces, they are experimenting with the introduction of a basic income, when every citizen receives a certain amount of money from the state, regardless of whether he works. The idea is that minimal financial support allows people to cover their basic needs and focus on finding a job or studying.
Sweden, Norway, Denmark and Finland are examples of countries with some of the lowest levels of inequality in the world. The explanation for this is very simple: high taxes on the incomes of the rich and large corporations are directed to finance free education, medicine, social housing and welfare. In the Scandinavian countries, they are not afraid to talk about the redistribution of wealth. It does not make people equally rich, but it gives them equal access to basic opportunities. That is why Swedes, Norwegians and Finns are considered happy and educated citizens with a high standard of living and low crime. And this is not a utopia, but real European countries today.
As the experience of other countries shows, poverty can be defeated by changing the attitude towards it. After all, this is not a sentence, but a challenge that can be overcome if there is political will and an effective strategy. Ukraine should learn the following lessons from the achievements of other countries:
- investments in education and medicine create equal opportunities;
- high taxes on the rich and corporations are not a punishment, but a way to support society;
- social programs work if they are targeted and controlled, not just fixed on paper.
But the main thing is effective state management and overcoming total corruption, as well as the political will of the authorities to make it happen.
If the situation does not change, the country risks ending up in a closed circle of poverty, inequality and social tension. Officials should understand that poverty cannot be dismissed as something insignificant. After all, it will begin to destroy the economy, trust in the state, undermine the foundations of democracy and create the basis for political manipulation.
A country where most people live on the edge of survival cannot develop. A weakened economy, a mass exodus of the working population, and disbelief in justice can lead to a point of no return. If the state does not change its priorities, we will see an even wider social gap, where the rich will continue to dictate the rules, and the rest will just try to survive, and the image of a democratic and welfare state will remain only an illusion on paper.