Economic Incentives in the Penitentiary System

The purpose of the article is to study economic incentives in the penitentiary system of Ukraine. The author establishes that the penitentiary system includes specially authorized bodies and institutions whose activities should ensure the implementation of state policy in the field of execution of criminal sentences. The author analyzes the economic dimension of this system and establishes that it allows identifying the level of state priority in this area, in particular, through the study of budget financing for the period 2019-2024. It is noted that although the financing of the penal system shows an upward trend, a linear increase in expenditures does not guarantee that the costs are in line with actual needs. It is determined that in the context of reforms, the need for institutional mechanisms of economic incentives for the behavior of convicts with a view to effective resocialization is becoming more urgent. It is noted that labor activity is seen as the main instrument of resocialization, and the formation of economic incentives to work is a condition for the successful integration of convicts into society. It is proved that the current system of remuneration of convicts provides for tariffication, differentiation of rates depending on the profession and complexity of work, as well as mandatory deductions and fixation of earnings. It is found that the legal regulation covers hourly, piece-rate and indirect remuneration systems, as well as incentives for the management of production units. It is emphasized that the establishment of qualification categories for convicts is carried out by the commissions of institutions, taking into account their skills and experience. It is emphasised that the system of remuneration of prisoners also provides for additional payments for complex, harmful and managerial functions, which contributes to the formation of an internal hierarchy of incentives and self-organisation. It is emphasized that the introduction of economic incentives in the penitentiary system is a key factor not only in the effective functioning of penitentiary institutions, but also in the successful re-socialization of persons deprived of their liberty in conditions of limited resources and the need for sustainable social transformations.