The World Bank has approved a large-scale project SPIRIT aimed at reforming and enhancing the efficiency of the social protection system in Ukraine. The main goal of the project is to support the most vulnerable segments of the population and strengthen the resilience of Ukrainian communities.
This is reported by Finway
Social Protection: New Approaches and Scale of Reforms
The planned measures will cover over one million citizens. Priority groups will include low-income families, families with children, persons with disabilities, the elderly, and those who care for others. The implementation of the project will be carried out by the Ministry of Social Policy, Family, and Unity of Ukraine.
“The Board of Executive Directors of the World Bank approved the new SPIRIT project (Social Protection for Inclusion, Resilience, Innovation and Transformation) with a total volume of $880 million, aimed at modernizing Ukraine’s social protection system, supporting vulnerable population groups, and enhancing community resilience.”
Funding Structure and Key Reforms
The total funding amounts to $880 million. Of this amount, $860 million is a loan from the World Bank, while the remainder is grant co-financing from the governments of the United Kingdom and Germany through the Target Fund for Support, Recovery, Reconstruction, and Reform of Ukraine (URTF).
The SPIRIT project includes the implementation of three important reforms:
- Creation of a Unified Basic Social Assistance System — instead of the current fragmented support programs, a harmonized system of assistance provision will be introduced.
- Reform of Social Services Financing — the principle of “money follows the person” will be introduced, allowing the purchase of social services from state, community, or private organizations.
- Modernization of Support for Persons with Disabilities — a shift to a person-centered approach with an assessment of the individual’s real needs, expanding access to rehabilitation, assistive devices, and employment support.
The Government of Ukraine has already confirmed its intention to attract the corresponding loan to implement these reforms, which is expected to be a significant step in enhancing social security and integrating vulnerable categories of Ukrainians.