The Interrelation Between Government and Business in Fighting Poverty in Ukraine

Abstract

Before the financial crisis of 2008, the level of absolute poverty in Ukraine was gradually decreasing, but the post-crisis stagnation of the economy has created fundamentally new causes and forms of poverty that Ukraine has never faced before. A total new problem for the Ukrainian population was sudden poverty as a result of the military conflict. The authors of this article aim at justifying the mechanisms of interrelation between government and business in order to fight poverty among our population. The authors’ conclusions suggest that solving the issue of poverty can be possible only if the government and business branch will cooperate. The authors set the highest priority on developing social entrepreneurship and the entrepreneurial spirit of the population, creating favorable conditions for the micro-crediting of the population, particularly the unemployed part. The authors also put stress on the role of the society itself: its ability to selforganization can contribute to the improvement of the situation on the labor market and influence the decrease of poverty levels; moreover, attention is paid to the need of creating trust and responsibility to the state control system, which is possible through building a transparent system of governance.