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Neoliberal Marginalization Of Social Component In Transition Countries

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  • Vlastimir Lekovic
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    Abstract

    This paper builds on the premise that the economy should be socially oriented and socially responsible, in other words, the natural imperative of the economy is to serve mankind. In this respect, in every economy, it is necessary to develop an efficient system of welfare and social support in order to empower each individual and help one realize his/her professional and innovative potential regardless of his/her socio-economic status. After all, the successful realization of the economic role of government, as well as the creation of such social policy that would result in greater equality of income distribution, is an essential condition for the stability and efficiency of the economic system, since greater equality is not opposed to greater efficiency criterion and more rapid economic growth. However, in transition countries, due to the prevailing neo-liberal concept of deregulation, liberalization and privatization, the social development component is completely marginalized. The consequences of such economic policies have been devastating, and the key social indicators of such situation are: high unemployment, increased poverty, concentration of wealth in the hands of a small minority and social insecurity. The mentioned concept failed and therefore it should be abandoned. In the opinion of the author of this paper, it should be replaced with the model of social market economy.

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    Bibliographic Info

    Article provided by Economic Laboratory for Transition Research (ELIT) in its journal Montenegrin Journal of Economics.

    Volume (Year): 8 (2012)
    Issue (Month): 3 ()
    Pages: 55-63

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    Handle: RePEc:mje:mjejnl:v:8:y:2012:i:3:p:55-63

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    Web page: http://www.mnje.com

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