Abstract:

Development of the social security system is viewed at present in close relation to the level of economic development. The present study is aimed at the development of methodological approaches to the evaluation of the functioning of the social protection system with the account of the reciprocal influence of social and economic determinants. Theoretical part of the research deals with the review of the research papers written by different authors about the reciprocal influence of the social protection level and the country’s economy and methodological approaches to their evaluation. Methodology describes the authors’ approach to the evaluation of the functioning of social protection systems using two synthetical integral indexes: integral index of economic development (IIED) and integral index of social development (IISD)  that are aggregated into the final integral index – integral index of social protection system functioning efficiency (IISPSFE). Specific features of this methodology are: 1) author’s suggestion of the gradation of the value of each integral index; 2) suggested by the author graphic interpretation of the interaction of two integral indexes using modified Gartner quadrant (Gartner magic quadrant) that makes it possible to make the gradation of the countries according to the development level and functioning of their social protection systems (Magic Quadrant for Evaluating the Functioning and Development of Social Protection, term suggested by the author.). In the empirical part the author evaluates the interaction of social and economic development of the OECP countries over the period from 1995 to 2015 based on the suggested methodology.