CORRESPONDENCE OF THE MODEL OF OVERCOMING POVERTY OF NOBEL LAUREATES TO THE CONDITIONS OF THE ECONOMIC SITUATION OF MODERN UKRAINE

K. Redko, PhD in Economics, Senior Lecturer, Department of International Economy, Department of Management and Marketing, National Technical University of Ukraine "Igor Sikorsky Kyiv Polytechnic Institute" ORCID ID: 0000G0003G2609G3471 O. Larina, student of the group UMG01, Department of Management and Marketing, National Technical University of Ukraine "Igor Sikorsky Kyiv Polytechnic Institute" ORCID ID: 0000G0002G6424G9804


FORMULATION OF THE PROBLEM
Since the proclamation of Ukraine as an independent state, the living standards of the population have increased significantly. GDP rose from one to three thousand dollars, inflation fell, [1] infant mortality fell to less than one percent.
Despite the positive developments, Ukraine still faces many challenges: The protracted war, one of Europe's lowest GDPs, and growing international debt. These aspects have a strong negative impact on the welfare of the population.
Three Nobel laureates in 2019 -Abhijit Banerjee, Esther Duflo, and Michael Kremer [3] -suggested concrete steps that emerging economies can take to overcome or reduce poverty. Their works need to be studied in accor dance with Ukrainian realities.

ANALYSIS OF RECENT RESEARCH
AND PUBLICATIONS Since the mid 1990s, the problem of poverty has been considered in the works of such domestic scientists as Libanova, Saenko, Revenko, Gnibidenko, Mandibury, Paniotto.

THE PURPOSE OF THE ARTICLE
To analyze the level of poverty of the population of Ukraine and the appropriateness of using the model of Nobel laureates in the modern economy.
of factors that inextricably affect or mutually reinforce each other.
The poverty rate, which is $ 5.50 US per day, is the percentage of the population living on less than US $ 5.50 per day. This amount is considered the extreme poverty line in the world. From 1992 to 2018, this figure for Ukraine fell from 41.3% to 4% of the country's population living below the poverty line [5]. The World Bank Group ranks Ukraine among the countries with a poverty rate of 3% (2018) [6] The UN ranks Ukraine 88th out of 189 countries for which the Human Development Index is calculated -a consolidated indicator for measuring long term progress on three main parameters of human development: long and healthy life, access to knowledge, and a decent standard of living, which puts the country in the category of the high level of human development [7].
Despite the positive international assessment, Ukraine lags far behind other countries on the European continent. According to the IMF report, Ukraine is the poorest country in Europe, surpassing its "Competitor for the title" -Moldova [8].
The concept of poverty is constantly evolving in accordance with the development of the world and its trends. There is no doubt that poverty is not just the calculation of GDP, the level of the minimum wage or lack of access to certain resources, the lack of which negatively affects the situation and development of the individual. Poverty is a state of mind that a person borrows from the socio cultural environment in the process of its development and growth. In conclusion, it is safe to say that reforms aimed at the availability and quality of social services -education and health care -can have a long term impact on personal and public living standards.
To combat Ukrainian poverty, we must study international practices, borrow methods, and identify the most effective steps. The main directions of development of the state and society on the way to prosperity should be to increase the level of education, medicine, financial stability, and awareness of citizens.
The 2019 Nobel Prize winners showed how to solve the problem of global poverty by breaking it down into a series of smaller -but more precise -issues at the individual or group level. They responded to each of them with a specially designed field experiment. In just twenty years, this approach has completely changed research in an area known as development economics. This new study now provides a steady stream of concrete results, helping alleviate global poverty [9].
The first study of the winners focused on the problems of the education system. What changes can be made to improve the level of education at the lowest cost? Children from low income countries often do not have access to quality textbooks and good nutrition. Would the overall school performance improve if these problems were solved? Michael Kremer and his colleagues conducted a series of field experiments to find answers to these and other questions.
"Much attention in the world is paid to data that tells only part of the story of people's lives. For example, it is becoming increasingly clear that it is not enough to simply count how many children are in school: we also need to know if they are learning something. Focusing on quality is extremely important to promote sustainable progress in human development, "said Selim Jahan, Director of the UNDP Office of Human Development [10]. The main obstacles identified by the Nobel laureates were the inconsistency of the program and method of teaching with the needs of students, the frivolous attitude of teachers to the performance of their duties, and the low level of schools. By addressing this, additional targeted work with the weakest students is seen, which has a positive effect in the medium term.
Another study in this area was to increase the moti vation of teachers by employing them on short term contracts. Teachers were more interested in better teaching students since the test results would determine whether their contract would be extended or not. Teachers found new teaching methods and worked more with the weakest students, which increased the average level of knowledge recorded through tests. This new experimental study of education in low income countries shows that adapting learning to students' needs, rather than additional resources, has the most significant effect on improving the situation.
The next branch was medicine. The main question was whether the medicine should be paid for, and if so, how much it should cost. With low wages, poor people are very sensitive to changes in prices and are wary of recommen dations for investment in prevention measures. The study found that 75 percent of parents gave their children deworming and antiparasitic pills if they were free, compared to 18 percent when the price was about one US dollar. The low quality of medical services has also become an obstacle for the population to take preventive measures. The lack of doctors, the inaccessibility of a number of medical services in small towns and villages, and the constant shortage of vaccines have been addressed through mobile clinics. The level of vaccination in the villages has tripled -18 to 6 percent, and when encouraged by giving a family a bag of lentils after vaccinating children, the percentage rose to 39.
The microcredit program did not have a significant impact on improving the well being of the population. A slight positive impact on investment in existing small businesses was found, and the effect on consumption or other development indicators was almost zero.
A vaccination study found that 61% of children in many poor countries remain partially immunized. The main obstacles to this procedure were the inaccessibility of assistance and the inadequate level of encouragement and awareness of the population. However, another but less obvious factor was the irrationality of the people. This explanation may also be key to other observations that, at least at first, seem difficult to understand.
One such observation is that many people are reluctant to use modern technology. In a field experiment, Duflo and Kremer investigated why smallholders -especially in sub Saharan Africa -do not use relatively simple innovations such as fertilizer, although they can provide great benefits. Today's focus does not allow people to see the prospects of investing in newer inventions, which could significantly improve the productivity of enterprises. In policy matters, the limited ratio nality of people can be a key factor in many issues. For example, temporary subsidies have more advantages than permanent ones because they encourage people to make decisions here and now and invest in their businesses. This is exactly what Duflo and Kremer's study found: temporary subsidies had a much greater impact on fertilizer use than permanent subsidies.
As a developing economy, Ukraine has a similar list of problems with the countries listed in the study, so ways to solve them can be borrowed.
According to the results of the second annual survey of KPMG in Ukraine 2019 CEO Outlook, the greatest threat to business growth in Ukraine for the second year in a row remains the risk associated with the lack of qualified personnel. This opinion is shared by 29% of company executives [11].
The main reason can be considered the aging population of Ukraine and the world as a whole. Over the past 60 years, the birth rate has almost halved: in the 1960s, it was 5 children per woman, now it is 2.4 children per woman. In Ukraine, this figure in 2016 was 1.5 children per woman [13]. An aging population means that fewer and fewer people are able to work, leading to declining productivity and, as a result, reducing economic growth. As the older generation of workers is actively retiring, and the replacement of the younger age is insuffici ent, most states are raising the retirement age and focusing on improving health care.
In 1975, Samuel Preston developed the Preston curve: the horizontal axis marked GDP per capita, the vertical -life expectancy. The curve shows a clear but gradually declining trend towards an increase in life expectancy with an increase in GDP. In essence, this is a trend that is manifested when comparing life expectancy (LE) and gross domestic product (GDP).
The Preston curve reflects at least three circumstances: 1) Life expectancy increases with increasing resources available for life; 2) Life expectancy cannot grow indefinitely, no matter how many resources are allocated for it, so as GNP increases, life expectancy slows down; 3) taking into account the scatter of points around the Preston curve, it turns out that life expec tancy depends significantly not only on the resources available to support life but also on the conditions of their consumption; in addition to natural, the distribution is considered by diffe rent budget items (health care, defense spending, investment in development) and by different groups of the population (property inequality, city/village) [14][15][16][17]. The relationship between GDP and Life expectancy as of 2015 is shown in Figure 1 [18].
In their research, Nobel laureates looked at key areas of human capital development, such as education, healthcare, and personal finance. The question arises: what is the situation in Ukraine with these industries?
In the draft law on Ukraine's state budget for 2020, these public funding areas have undergone the largest reductions compared to previous years. Expenditures of the consolidated budget of Ukraine by functional classification,% of GDP, have been reduced by the following items: health care, education, social protection and social security [19].
Real gross domestic product (GDP) in the second quarter of 2020 compared to the previous quarter (taking into account the seasonal factor) decreased by 9.9% and compared to the second quarter of 2019. -at 11.4%. Nominal GDP amounted to UAH 867.8 billion, and GDP per capita amounted to UAH 20,744.    Table 2 shows that in all educational institutions of the country, the number of students is declining sharply. In the coming years, the aggravation of the problem of the shortage of qualified personnel in Ukraine will be a very expected phenomenon.
The personal finances of the population also underwent significant reductions. As we can see, in ten years, the country has not only not lost the tendency to arrears of wages but also significantly exceeded the initial data.
If in 2010 as of January the amount of arrears of wages in the country as a whole amounted to 1390.8 million hryvnias, in September 2020, the arrears increased to 3421.4 million hryvnias without taking into account part of the occupied territories in Donetsk and Luhansk regions. Given the unstable political and economic situation in Ukraine, late payment of wages can be a decisive factor in exacer bating the personal crisis, which has adverse consequences for the whole country (Fig. 3).
The main component of household income is wages, the amount of which directly affects the socio economic development of the country and largely determines the standard of living of its citizens. The growth rates of nominal and real wages remain very low against the background of inflation (Table 3).
From table 3, we see that the nominal wage does not correspond to the real wage during the study period. The discrepancy between nominal and real wages has a negative impact on living standards. Today we see that wages do not perform their basic functions, namely -most workers can not provide adequate living conditions [22].