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.