The World Bank has approved an $880 million social support project for Ukraine
The World Bank’s Board of Executive Directors has approved a new SPIRIT (Social Protection for Inclusion, Resilience, Innovation and Transformation) project worth a total of US$880 million. The initiative aims to modernise Ukraine’s social protection system, support vulnerable groups and strengthen community resilience.
The project will be implemented by the Ministry of Social Policy, Family and Unity of Ukraine. It is expected to benefit over a million people, including low-income families, families with children, people with disabilities, older people and carers.
Funding comprises a World Bank loan of US$860 million and grant co-financing from the UK and Germany totalling US$20 million through the Trust Fund for the Support, Recovery, Reconstruction and Reform of Ukraine.
The SPIRIT project is part of broader international support for Ukraine and is intended to facilitate the implementation of reforms necessary for European integration in the areas of social policy, support for people with disabilities and labour market integration.
The programme envisages the implementation of three key reforms. The first concerns the creation of a unified Basic Social Assistance system to replace the current fragmented support programmes. It is planned to introduce a ‘one-stop shop’ principle for benefit recipients and to combine financial support with social services and employment through an integrated case management system.
The second reform involves changing approaches to the funding of social services. Public funds will be allocated according to the ‘money follows the person’ principle through the procurement of services from public, community and private providers.
The third area concerns the modernisation of the support system for people with disabilities. It envisages a shift from a medical model of disability assessment to a person-centred approach that takes into account a person’s actual needs and expands access to rehabilitation, assistive devices and employment support.
Denys Ulyutin, Minister of Social Policy, Family and Unity of Ukraine, described the approval of the project as an important sign of international trust and support for Ukraine.
According to him, SPIRIT is an investment in people, communities and the country’s future, and the implementation of the project will enable greater support for vulnerable groups, strengthen community capacity and invest in human capital even in the context of war.
Bob Som, the World Bank’s Regional Director for Eastern Europe, noted that Ukraine continues to suffer significant humanitarian and economic losses. He emphasised the need to support households that have lost a significant portion of their income, to help them meet basic needs and avoid poverty.
According to Bob Som, the project aims to support reforms designed to help overcome poverty, improve access to social assistance and ensure that it reaches those who need it most, even in times of crisis.
The Ministry of Social Policy, Family and Unity of Ukraine thanked the World Bank and international partners for their support and cooperation in rebuilding Ukraine’s human capital.
