DIGITAL ECONOMY AS A FACTOR IN THE DEVELOPMENT OF A SOCIAL STATE

Alla Silenko (), Vira Bezrodna () and Olga Nikogosyan ()
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Alla Silenko: Odessa State Environment University, Ukraine
Vira Bezrodna: O.S. Popov Odessa National Academy of Telecommunications, Ukraine
Olga Nikogosyan: Odesa I.I. Mechnikov National University, Ukraine

Baltic Journal of Economic Studies, 2020, vol. 6, issue 5

Abstract: The digital economy is becoming a development trend in most modern countries, the basis for sustainable economic growth and living standards of the population. In this regard, it seems relevant to consider the significance of the impact of the digital economy on the welfare state. The purpose of the article is to study the influence of the digital economy on the quality and living conditions of citizens in a welfare state. Methodology. The study is based on a systemic approach, within which the digital economy has been viewed as an external phenomenon (input) that has been able to affect the welfare state system (output). Results. The hypothesis of the study that the digital economy improves the quality and living conditions of citizens in a welfare state was partially confirmed. However, it became clear that in addition to positive, the digital economy has negative consequences for people. For example, the digital economy improves the ability to solve many social problems, but at the same time creates new problems. For example, it creates new jobs, new professions, as a result of which workers in traditional professions become unclaimed. The digital economy not only solves and creates problems, but also exposes them. So, it has clearly outlined the problem of social inequality in Ukraine. Undoubtedly, the digitalization of public social services makes life easier for people, but only if they are prepared for this process. Digital illiteracy of the population, characteristic of countries lagging behind in technological development, including Ukraine, is an obstacle to the introduction of digitalization into the social sphere. At the same time, the state is not ready for the active introduction of digital technologies into the system of social policy yet due to the lack of necessary resources. Digitalization will not improve people’s lives until the state has funds for social policy. And yet, some measures are being taken in this direction.

Keywords: digital economy; welfare state; information and communication technologies; social risks; benefits of digitalization (search for similar items in EconPapers)
JEL-codes: O33 O35 (search for similar items in EconPapers)
Date: 2020
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:bal:journl:2256-0742:2020:6:5:19

DOI: 10.30525/2256-0742/2020-6-5-155-162

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