| Abstract: | This study examined: (i) Kosovo's social policy's poverty and inequality outcomes in recent history, namely during Yugoslav self‐management socialism (1952–1989), the United Nations Mission in Kosovo (UNMIK) (1999–2008) and independence (2008 onwards), and (ii) the impact of local politics in the more recent trajectory of social policy. The study shows that the poverty rate after the war (1999) is significantly lower than it was during socialism, but that there is persistent high and deepening Gini inequality and social exclusion. Transfers and taxes of the residual‐liberal policy have reduced more pretransfer–pretax inequality, and especially poverty, compared with self‐management's insurance‐dominated socialism, but their effectiveness is declining due to the policy's underlying long‐term, pro‐market logic and its increasing particularism with respect to short‐term transfers. The article argues that the main local political cleavages have originated from self‐management socialism's extensive stratification. These cleavages matter in distributive conflicts, and they mattered also during the UNMIK period by easing the pathway for the unprecedented influence international organisations have had on policy formation. |
