The Role of the Non-Governmental Sector of the Social Security System in the Provision of Social Services under Modern Conditions

Abstract

The current state, challenges, and prospects for engaging the non-governmental sector in the provision of social services in territorial communities of Ukraine amid decentralisation, social protection reform, and the full-scale war are examined. The legal framework governing the participation of non-governmental providers in the social services system and the principal mechanisms of their cooperation with local self-government bodies are analysed, including social contracting, public procurement, social project competitions, and public-private partnerships. It is established that, despite the legally recognised equal status of service providers regardless of their form of ownership, state and municipal institutions continue to dominate the social services system, while the potential of non-governmental organisations remains underutilised. Significant territorial disparities in the involvement of non-governmental providers and limited access to their services in small urban and rural communities are identified. The particular role of non-governmental organisations in providing scarce and specialised social services, responding promptly to emerging social challenges, and mobilising non-budgetary resources is highlighted. The main barriers to the development of the non-governmental sector are identified, including unstable funding, deficiencies in the social contracting mechanism, unequal operating conditions for municipal and non-governmental providers, the absence of state standards for certain social services, problems with tariff setting, inadequate assessment of the population’s needs, and disparities in the financial and administrative capacity of territorial communities. The necessity of completing the development of state standards for social services, improving social contracting procedures, introducing advance payments and multi-year contracts, enhancing the assessment of the population’s needs, and strengthening public accountability of local self-government bodies is substantiated. It is concluded that the role of local self-government bodies should gradually shift from maintaining municipal institutions to commissioning and coordinating social services, thereby ensuring equal conditions for providers of different forms of ownership and orienting the system towards the needs of service recipients.