Conceptual approaches to building financial models of social welfare in the context of structural economic transformation and global challenges

Abstract

An advanced social welfare system in the context of sustainable economic growth is a crucial element of human life in contemporary conditions. It enables the state to go beyond mere economic growth and provide a range of social guarantees for citizens, meeting the principles of sustainable development and socially significant needs of society. The transformation of social welfare systems occurs in parallel with changes in the global economy, making the scientific discourse on future financial models for social welfare increasingly relevant. This article explores conceptual approaches to constructing financial models for social welfare within the framework of global challenges and structural economic transformation. Fundamental principles of such models are examined, including social justice, intergenerational solidarity, the protection of citizens' social rights, system stability and security, as well as economic efficiency. Various theoretical approaches to financing social welfare are analyzed: universalism, selectivism, subsidiarity, and residualism. The study substantiates the need to transition toward mixed financial models for social welfare, which can better adapt to challenges related to digitalization, population aging, climate change, and geopolitical risks. Particular attention is paid to the role of the state in the social welfare system and potential directions for fiscal decentralization to enhance resilience and effectiveness. The conclusions emphasize the importance of adapting social systems to achieve sustainable economic growth and social equity amid global changes. The author declares no conflicts of interests.