How Slovakia has kept the confidence fairy

Since its creation as a country in 1993, Slovakia's average real growth rate has been not only the highest among Eurozone countries, it has been the highest in the European Union. And unlike most “peripheral” Eurozone countries, most recently (March/April, 2013) Cyprus and Slovenia, it has not suffered from significant capital flight. We provide some clues as to why this is so. In contrast to many of the post-1989 Central and Eastern European (CEE) “transition” economies, as well as the troubled five “GIPSI” countries (Greece, Ireland, Portugal, Spain and Italy), Slovakia has kept unit costs competitive, fostered a sound banking system, and managed its monetary and fiscal policy responsibly. Both public and private debt is relatively low and largely funded from internal savings. In short, Slovakia offers lessons for many CEE countries as well as Eurozone countries struggling to restore internal and external balance.     

Hybridization instead of Clustering: Transformation Processes of Welfare Policies in Central and Eastern Europe

Welfare state theories tend to use concepts of clustering for defining the affiliation of national social security systems to overarching worlds of welfare. A closer look at the transformation processes of welfare policies in Central and Eastern Europe shows a great variability among those countries in approximating their welfare states to Western European standards. In the design of their pension systems, their health care provision and their unemployment protection, Central and Eastern European Countries (CEEC) follow different reform paths. Welfare clusters in Western Europe are used as reference models, but no single example applies to all sectors of social security. Thus, a generalizing picture of welfare provision cannot be drawn for Central and Eastern Europe. Instead of constituting a new individual type of welfare arrangement, a hybridization process is observable.     

The impact of adverse initial conditions and the resulting speed and sequence of reforms in determining the delayed EU membership of Bulgaria

The subject of the paper is the analysis of the speed, sequence and path of a formerly centrally administered economy, Bulgaria, to a market economy. Comparing the macroeconomic developments and transition reforms of Central and Eastern European (CEE) countries, Bulgaria is lagging behind. It is concluded that the stop-and-go nature of the conducted Bulgarian reforms and the lack of commitment to deep-seated reforms by successive governments were due to the adverse initial economic conditions that the country experienced during transition, as well as the intense external shocks the country endured. These factors were the main barriers to attaining sustained growth, and contributed to Bulgaria's delayed entrance to the EU.     

Analysing the Welfare State in Poland, the Czech Republic, Hungary and Slovenia: An Ideal-Typical Perspective

This article applies ideal-typical welfare state theory in analysing the recent transition and the current position of welfare state systems in Eastern Central Europe, taking the cases of Poland, the Czech Republic, Hungary and Slovenia. The article argues that Eastern Central European welfare state systems have returned to their historical and cultural roots of welfare state formation and development, to the time before the onset of state socialism in Soviet times. First, social security policies and social and labour laws were established when the vast bulk of Eastern Central European countries were member states of the Austro-Hungarian Empire, sharing the same political economy, legal system and culture. Over the last 20 years, the socialist system of employment-based social services and benefits has been replaced with Bismarckian-type social security policy and systems. While there are major alterations here and there – in ideal-typical perspective – the four countries under scrutiny share all the major traits of Continental European (Christian Democratic) welfare regimes .     

Second‐pillar pensions in Central and Eastern Europe: Payment constraints and exit options

During 1998–2007, a majority of Central and Eastern European (CEE) governments enacted laws obligating workers to save for retirement in privately managed individual accounts. The governments funded these accounts with a portion of public pension revenues, thus creating or increasing deficits in public systems. After the onset of the global financial and economic crisis (2008), most CEE governments reduced these funding diversions and scaled back the accounts. Now, a decade after the crisis, this article examines the benefits that the accounts are beginning to pay retiring workers. In general, these benefits are shown to be disadvantageous compared with public pensions. Some pay lump sums in lieu of regular monthly benefits, most fail to adjust pensions regularly for inflation, and some pay women less than men with equal account balances. In several countries, pensioners with individual accounts receive lower benefits than those without them. To enable retiring workers to avoid these disadvantages, several CEE governments have allowed them to refund their account balances and receive full public pensions. Yet while this strategy diffuses worker dissatisfaction, it also places strains on public pension finance. To assist second‐pillar account holders without weakening public pensions, governments should consider making private pension savings voluntary and financing these schemes independently of public pensions – i.e. by worker and employer contributions and, possibly, direct state support.     

Eastern European immigrants in the United States: A socio-demographic profile

Immigration to the United States has experienced a phenomenal increase in the last decades. Following the dissolution of the “Iron Curtain” in the late 1980s and early 1990s, Eastern Europeans have been free to emigrate. Since then, there has been an increase in their numbers in the U.S. This study is an analysis of the socio-demographic profile characterizing the immigration from Eastern Europe. It examines income levels and the poverty status for Eastern European immigrants (at the individual and family levels). The study also examines educational attainment and language proficiency. The findings show that, generally, the educational attainment of people coming form Eastern European (e.g., Bulgaria, Estonia, Latvia) countries is high compared to those coming from other region (e.g., Mexico). The results also indicate that while some immigrants from Eastern Europe have relative low levels of poverty (e.g., Slovenia), the majority of them are confronted with high levels of economic strain.     

Financial frictions and indebtedness of Balkan firms: A comparison with Mediterranean and Central European countries

Using a large database of financial data for non-financial corporations, we study the process of debt accumulation and its influence on liquidity through the boom-bust-recovery regimes (2006–2010) in the Balkan countries and benchmark this against the Mediterranean and Central European countries. The domestic amplification effects (through the financial accelerator and collateral pricing) of both the capital surge from developed EU countries at the onset of the crisis and the capital reversal afterwards are the focus of the analysis. We show that domestic generators and amplificators of the crisis have much larger effects in the Balkan countries than in the Mediterranean countries, not to mention the countries of Central Europe. In the boom period, the financial accelerator was several times stronger in the Balkan countries than in the Mediterranean and Central European countries. In the bust and recovery periods, however, the direct effects of the financial accelerator declined, but the indirect effects increased considerably due to liquidity squeezes and contagion, especially strong were corresponding intercompany debt effects. In the Balkan countries, these effects in the bust and recovery periods were at least 50% larger than in the Mediterranean and Central European countries. Higher crisis costs in the Balkan countries, relative to the benchmark regions, could be attributed to the late integration of these economies into international financial and trade flows, weak institutions of financial intermediation, and inexperienced regulators; however, the importance of the contribution of misguided EU convergence doctrine cannot be ignored. Lessons for improving macromanagement in EU periphery countries are suggested.     

Swimming against the tide: why Sweden supports increased labour mobility within and from outside the EU

While the free movement of labour in the EU is generally depicted as a positive feature of the single market, it was also controversial in the debate on EU enlargement. Actors opposing enlargement argued that large waves of migrants from Central and Eastern Europe (CEE) would ‘swamp’ Western labour markets, leading to so-called social tourism and increasing xenophobia. Contrary to the developments in other countries, Sweden was one of the only three Member States to immediately open its doors to citizens from the EU accession countries of 2004 and 2007. Sweden has also been one of the few EU countries to actively promote greater liberalisation of labour migration policy for third-country nationals (TCNs) within the EU, and the new Swedish Immigration Law of 2008 dramatically liberalised the TCN labour migration policy and made it more employer-driven. We argue that in order to understand why Sweden has supported increased labour mobility within and from outside of the EU, we need to complement existing explanations by analysing the preferences of the political parties. A two-dimensional analysis focusing on economy and culture provides an understanding of why so-called unholy coalitions of parties in support of liberal labour policies have emerged in Sweden during the 2000s. The article ends with a discussion of lessons learned from the Swedish case and wider implications for rights-based mobility in the EU.     

Role of social welfare in European suicide prevention

Yur'yev A, Värnik A, Värnik P, Sisask M, Leppik L. Role of social welfare in European suicide prevention The aims of this study were to assess the relationship between suicide mortality and social expenditure in 26 European countries, explore attitudes towards welfare systems and their relationship with suicide mortality, and compare attitudes towards welfare provision in Eastern and Western Europe. The World Health Organization suicide data and Organisation for Economic Co‐operation and Development social expenditure data for 1980–2005 were used. Data on attitudes towards welfare systems were taken from the European Social Survey. Differences between mean scores for attitudes in Western and Eastern European countries were calculated. Correlations between social expenditure and suicide trends were negative in most countries for both genders. Inverse correlations between attitudes towards welfare provision and suicide mortality rates were demonstrated for males only. Differences in attitudes were found between Eastern and Western European countries; for example, confidence in the welfare system was found to be stronger in Western Europe. Higher social expenditure and greater confidence in welfare provision appear to have suicide‐preventive effects.     

The Trajectory of Post-communist Welfare State Development: The Cases of Bulgaria and Romania

Governments of countries undergoing a post‐communist transition face the dilemma of balancing conflicting demands for greater economic efficiency (to achieve a successful transition to a market system) with demands for enhanced social protection (to legitimize regime change through a visible improvement in living standards which includes vulnerable groups). This paper analyses the transition in Bulgaria and Romania. Unlike other European countries, these countries did not embark on retrenchment policies until the mid‐ to late 1990s, so convergence with policies of spending constraint elsewhere in Europe was belated and partial. The social problems created by strict economic policies, exacerbated by a determination to reorganize the post‐communist welfare states along the lines promoted by international organizations, are now being recognized. Post‐communist governments in South‐eastern Europe have belatedly started to address the social aspects of transition to democracy and the market. This probably reflects the process of regime change in Bulgaria and Romania, which has been characterized as a “two‐step transition to democracy”, with liberal governments only succeeding transformed communist elites in power after a protracted transition.     

论东欧新马克思主义的理论定位

"东欧新马克思主义"指的是第二次世界大战后在东欧国家兴起的一种马克思主义流派,其历史大体上分为两个时期:20世纪50-70年代,东欧新马克思主义作为稳定的学术派别存在,具体地说,包括南斯拉夫实践派、布达佩斯学派以及波兰和捷克斯洛伐克等国的新马克思主义;70年代后.东欧新马克思主义者作为个体融入到西方学术界,但其学术创作仍然有着东欧新马克思主义的深刻烙印.东欧新马克思主义与通常意义上的西方马克思主义以及70年代后欧美新马克思主义共同构成了20世纪新马克思主义的基本格局,其中,东欧新马克思主义鲜明的理论特色在于:其一,对马克思思想独特的、深刻的阐述;其二,对社会主义理论与实践、历史与命运的反思和对社会主义改革的理论设计;其三,对现代性的独特的理论反思.     

Breakthroughs on Fundamental Issues of Socialist Political Economy in China’s Economic Reform

How to effectively integrate the basic economic system of the primary stage of socialism in which public ownership is the dominant and diverse economic sectors develop side by side with a resource allocation model in which the market plays a decisive role is a fundamental issue in building a socialist political economy with Chinese characteristics. Western bourgeois economics and the traditional understanding of Marxist classical writers reject the possibility of such integration. In the transitional countries of Central and Eastern Europe, the practice and theoretical exploration of combining the two ended by abandoning public ownership. The fundamental feature of socialist economic reform practice with Chinese characteristics is to uphold their organic unity. This approach has already achieved great progress but at the same time is confronting a series of new problems.     

Rural Movements in Europe: Scandinavia and the Accession States

This paper explores the national rural/village movements now established in some 16 European countries, with special focus on those in Scandinavia and Eastern Europe. The aim of the paper is to raise awareness by providing information on the significance of rural social movements, rather than to attempt a detailed analysis. Starting in the 1970s in some Scandinavian and Western European countries, as a local community response to rural decline, the village movements have built into major national forces, and have recently expanded into the EU accession states in Central and Eastern Europe. They were established to address issues of rural decline, agricultural change, migration, centralization and EU accession. They are now also organizing themselves at EU level, to provide a voice for rural communities in Europe. This is a notable example of a structured approach to mobilizing rural communities to become stronger agents of local development and to participate in rural policy‐making at local, regional, national and EU levels. The paper draws on information gained in a recently completed initial investigation of the national village movements in Estonia, Finland, Slovakia and Denmark, together with information from Sweden. The information is based on that gathered from a wide range of interviews and the minimal documentation available from the movements themselves. The experiences of the movements in enabling local structural development, capacity‐building, empowerment and action are documented, as is their work to develop strategic planning and advocacy. The paper identifies the motivating forces, structural and process models, activities and outcomes of the different movements. It takes account of the effects of differing national contexts, and identifies some key elements of experience and learning.     

R&D in a post centrally-planned economy: The macroeconomic effects in Poland

Half a century of centrally planned policy in the Central and Eastern European countries resulted in outdated technologies, inefficient allocation of resources and low productivity. Following the end of communism there was a fifteen year process of transition which ended in 2004 with eight post-communist countries joining the European Union (EU) of which Poland was the largest. As part of the EU these countries now face the challenge of the common EU strategy Europe 2020, which has set the target of achieving R&D expenditure to GDP ratio (called the R&D intensity) of 3% by 2020 for the Union as a whole in an effort to increase the competitiveness of the region. Poland, like the other post-communist countries, faces a lower target of R&D intensity, set at 1.7%. Nevertheless, the challenge is immense, since the country is still at only half that level and has little experience in developing policies to help achieve it. In this paper we tested two possible policy options to achieve the target: (1) to increase government expenditures on R&D and; (2) to provide tax relief on R&D to businesses. The method applied to assess the options is a recursive dynamic computable general equilibrium (CGE) model for Poland with an explicit link between productivity and R&D stock. The results show that achieving the R&D intensity target via the use of tax relief is 2.5 times more costly to the government budget, but it has a greater impact on the economy in terms of a higher GDP growth. Tax relief proved efficient in the short run while in the long run the government expenditure policy provides better value for money.     

EU Integration and the Transformation of Post‐communist Welfare: Traversing a ‘Quantum Leap’?

While many academic accounts treat post‐communist Europe as just another site of Europeanization with an emphasis on ‘adaptation’ and ‘learning’, this article argues that EU integration and the transformation of post‐communist Europe is a much more complex, volatile and uncertain process; not so much one of adaptation but more a ‘quantum leap’, apparently bypassing the stage of a Keynesian regime. Post‐communist Europe is asked to join an EU agenda that has many features of what Jessop calls the ‘Schumpeterian Workfare Postnational Regime’ (SWPR). In that sense, EU integration of post‐communist welfare is not simply a ‘catch‐up’, it is a complex transformation process whereby, rather than EU Enlargement and Eastern Europe being seen as a threat to ‘Social Europe’, the EU imposes its own ‘social deficit’ and economic hegemony onto Eastern Europe.     

Balancing informality and need – policy responses to informal East-West migration in Austria,the Netherlands and Sweden

The article provides an analysis of policy responses to mobile EU citizens without legal residence in the Netherlands, Austria and Sweden. A comparative case study design uses qualitative survey and interview data to identify national and local policy responses to the implications of EU citizens from Central and Eastern Europe (CEE) living without legal residence in the aforementioned countries. The theoretical framework specifies how the institutional logic of welfare regimes is likely to generate policy responses that address need, sanction informality or do both. The choice indicates the priority given to redistributive outcomes, administrative procedures, or both. The results reveal similar responses to those implications relating to the labour market, but slightly different approaches to the implications in the social domain. Policy responses to labour market implications have predominantly focused on sanctioning informality. Swedish and Austrian policy responses in the social domain have focused on addressing need. Dutch policy responses to social issues instead focused on sanctioning informality, prioritizing procedure. The results indicate that local and national policy responses to implications of informal intra-EU migration may be fruitfully understood through the prism of welfare regimes and related approaches to need and informality.     

Ageing and the politics of pension reforms in Central Europe,South‐Eastern Europe and the Baltic States

Cerami A. Ageing and the politics of pension reforms in Central Europe, South‐Eastern Europe and the Baltic States Int J Soc Welfare 2011: 20: 331–343 © 2010 The Author(s), Journal compilation © 2010 Blackwell Publishing Ltd and the International Journal of Social Welfare. This article investigates ageing and the politics of pension reforms in Central Europe, South‐Eastern Europe and the Baltic States. It emphasises the importance of historical legacies, presence of veto points, trade unions' power, electoral rules and country‐specific patterns of political competition, but it also highlights the central role in institutional change played by other concomitant factors, such as those associated with the communicative actions of national and international actors. The role played by power politics, class conflicts and strategic use of social policies is also emphasised. The main argument put forward in this article is that pressures for reforms in the pension systems have not only been the response of demographic, economic and financial pressures but have also been the result of a new consensus found on new economic ideas and discourses that saw in the privatisation of the economy a new modernisation paradigm.     

Which kind of Europe?: An exhortation to act locally and think globally

The attempt to create a European Economic Space by January 1, 1993 has heightened awareness among politicans, concerned citizens and the scientific community of the increasing trend toward integration in Europe. There is, however, a basic dichotomy endemic to the process of European integration: the dichotomy of "wider or deeper". The "C" in EC seems to stand for club and not for community. European integration functions as an instrument of exclusion, rather than an instrument of inclusion. This article seeks to develop a political theory of integration, promoting the idea of integration achieved through transactions of sharing rather than transactions of exchange. This view constitutes a challenge for European social work practitioners and educators, to transform existing international networks from rather exclusive groups into all-inclusive international communities.     

Social Security in a Rapidly Changing Environment: The Case of the Post-communist Transformation

Overcoming the economic crisis and implementing institutional change in Central and Eastern Europe and the former Soviet Union has been greatly facilitated by a pre-existing social security network—although adaptations to the new circumstances have been necessary. This paper offers a review of these adjustments and the various strategies that have been employed for mitigating losses in income and in social cohesion with the market reforms. The paper shows how countries first expanded, then curtailed their social programmes, and have started moving away from collective to individualized solutions, not only in the economic but also in the social field. Although this thrust promises many advantages, such as greater personal responsibility and system transparency, several population groups—typically those that fail to form a powerful interest group—risk being left behind by the reform process. The paper concludes that these experiences from the region offer valuable lessons for social programmes assisted by international exchanges that aim to counter the negative impacts of rapid economic and institutional change increasingly a worldwide phenomenon.     

The impact of euro Area monetary policy on Central and Eastern Europe

This paper investigates the effects of a euro area monetary policy shock on Central, Eastern, and Southeastern Europe (CESEE). We use shadow rates as a proxy for the monetary policy stance and propose a novel way of treating euro area countries in a multi-country framework. More specifically, our approach allows to place sign restrictions on both euro area aggregate and single member states’ quantities. This procedure fully takes cross-country heterogeneity within the euro area into account and leads to shocks that are economically consistent between both layers of aggregation. Our results show that prices and output fall in response to the euro area monetary tightening, both within the euro area and the CESEE region but to a varying degree. The revealed cross-country heterogeneity in the size of the effects emphasizes the usefulness and importance of our empirical approach.