Sergiy Londar
Lidia Londar
Ivan Gaiduk


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Language: Ukrainian
Abstract. Approaches to measuring social development in society are summarized, inter alia, through the Human Development Index and its three pillars (health, education and well-being). An analysis of the possible social impact of private pension provision on human development was carried out. The relationship between indicators covering GDP per person, gross fixed capital formation (investment), selected components of the Human Development Index, the sum of private pension assets was analyzed to identify common trends for some of the world’s largest non-state pension funds and, by comparison, for Ukraine. The correlation between private pension assets (PPA) and GDP per person in most developed countries has been high enough to represent a significant contribution of private pension assets to GDP. This impact can be achieved primarily through the investment of private pension assets, as evidenced by the high correlation between the level of PPA and investment figures. A clear time lag between the formation of PPA and investment, which lasts approximately one year, has been revealed. This may mean that pension funds will be allocated to selected investment projects in a year and thus improve the national economy. Similar figures in the case of Ukraine are weakly correlated, which may indicate that there is virtually no impact of still small private pension assets on economic life in general and its humanitarian component in particular. The dependence of average life expectancy at birth on GDP per person based on purchasing power parity (PPP) and the dependence of healthy life expectancy on government spending on health care was simulated. In Ukraine, the relevant indicators differ from the optimal ones and the participation of non-state pension funds in health care projects would be appropriate. Proposals are offered on the development of the private pension insurance, as well as increasing the level of the “long money” component in Ukraine’s economy.
Keywords: Human Development Index, private pension assets, domestic government health expenditure, optimal level of GDP per person for life expectancy, оptimal government expenditure on health per person, domestic government expenditure on education.

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