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• W163099466 abstract "Social policy is generally understood in the social sciences as the counterpart of the economic policy. Its necessity as corrective of the market economy was respected by liberal economists like Friedrich A. Hayek (1960). It is therefore surprising that there have been very few investigations into the social policies of Central and East European states since the transformation. While the economic results of the process of transformation have been well-documented by numerous examinations of the results of privatization, financial consolidation or the implementation of new institutions and laws, research on social insurance systems and social policies tends to be the exception. The few analyses of Central and East European social policy which exist either use outdated data, such as the contribution of Peter Gedeon (1995), or they use verbal descriptions. The latter is practiced by international organizations such as the World Bank. Its recent world development report (1996) devoted in particular to the transformation states doesn't offer any data on the social expenditures of the Middle and East European reform states. This cognitive deficit excited my curiosity. My original premise was that details and data about the development of social policies and social insurance systems in the Central anti East European countries must exist. My research goal was to find this information for some countries, show the previous directions in which the policies developed and the constraints in implementing them, and then compare this information with the future development potential. For the analysis I chose Poland and Hungary because the conditions in these countries were similar at the beginning of the transformation process. In both there existed a phase of liberalization before 1989; the economic conditions were also similar in many respects. Poland and Hungary at the end of the 1980s had incurred debts both with the IMF and western banks. However, the two countries chose different strategies at the beginning of the transformation. Poland chose shock therapy and Hungary a more gradual procedure. As a third country I chose the Slovak Republic, much like her two neighbors, to reduce the likelihood of fortuitous results. If we use constant prices to negate inflation, then the Gross Domestic Product (GDP) declined in all three countries after the beginning of the transformation process. To this day it has yet to reach the per inhabitant standard of 1989 or 1990 (Chart 1), This leads one to suspect that the share of the social expenditure in the GDP is also smaller. Social expenditures includes only a portion of all social benefits. As social expenditures, I include here the following: expenditures for unemployment insurance and welfare. Expenditures for science and research, education, culture, or sports which may be partly accounted as social expenditures are excluded in this study. Social benefits provided by families or neighbors and many other benefits are also excluded. Christian yon Ferber (1967) already pointed out back in the 1960s the reasons for this: these social expenditures enable us to make international comparisons. They provide a clue about how much of a society's wealth is spent on social interests. [CHART 1 OMITTED] Contrary to expectations, since the beginning of the transformation, the share of GDP spent on social services has increased (Chart 2). At the beginning of the 1990s, the countries examined here spent not only a larger share of their GDP on social services than the South Asian and East Asian countries--while the South Asian and East Asian countries spent only 5.5 or 8.4 percent on average, Slovakia, Poland and Hungary used between 17 and 27 percent of GDP for social expenditures. In many Central and East European countries the present percentage of GDP dedicated to social expenditures is also higher than in most Latin American states which average around 10 percent (United Nations, 1994). …" @default.
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• W163099466 date "1998-09-22" @default.
• W163099466 modified "2023-09-28" @default.
• W163099466 title "The Development of Social Benefits and Social Policy in Poland, Hungary and the Slovak Republic since the System Transformation" @default.
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