Chinese social credit system: key features and possibility of using in Ukraine

Vadym Shved
PhD of Economics, Associate Professor, Department of Business and Law, Vinnytsia Institute of Economics and Social Sciences of University «Ukraine», Ukraine, e-mail: osvitav@gmail.com, ORCID ID: https://orcid.org/0000-0001-5497-0975

Cite this article:

Shved, V. (2021). Chinese social credit system: key features and possibility of using in Ukraine [Kytaiska systema sotsialnoho kredytu: kliuchovi osoblyvosti ta mozhlyvosti vykorystannia v Ukraini], Socio-economic research bulletin, Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 2 (77), pp. 41–53.

Abstract

The article considers the key features of the social credit (rating) system implementation and functioning, which is the main tool for digitalization of Chinese society, and in the future is considered by the Chinese authorities as a basic mechanism of electronic government. The historical retrospective of the phenomenon of social rating emergence and development, which was later transformed into social credit, is presented. Attention is paid to the differences in the implementation and functioning of the social credit system, depending on regional characteristics. The participants in the social credit system and the main mechanisms for collecting information for the social credit level formation, including through the mandatory use of specially designed ID-cards, and recently the almost widespread use of the verification for a person by face, have been determined. Despite the position of the Chinese authorities, according to which the use of the social credit system is successful, a list of shortcomings that are now inherent in this system, both of an author’s and of an expert nature, is given. The practice of implementation the state digital eco-environment «Diia» (State and I), which is a key tool for building a digital state, as well as the functional content of the «Diia» eco-environment (service) and its main components, is analyzed. The basic shortcomings that are now inherent in the service are determined, in particular, the key tool in the fight against coronavirus – «Diia. Vdoma», as well as the controversial character of the proposed innovation for the business environment «Diia. City». The features of the declared novel of the relationship between the citizen and state ‒ the concept of «paperless», are studied. The issue of regulation of the «Diia» eco-environment functioning is raised in the context of the legislative introduction of the concept of «paperless» announced on September 1, 2021. The conclusion is substantiated that the basic mechanisms are already being introduced in Ukraine, which form the basis for the Chinese social credit system functioning, in particular, through the tools of citizensʼ verification. On the basis of the analysis carried out, proposals are made to improve the functionality of the «Diia» eco-environment.

Keywords

social rating; social credit system; digitalization; verification; «Diia».

JEL classification: H100; M210; O520; O530; DOI: https://doi.org/10.33987/vsed.2(77).2021.41–53

UD classification: 338.242.2

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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