Poverty, inequality, and social policy in transition economies
AbstractIn examining what happens to poverty and income inequality during the early period of transition to a market economy, the author covers the period up to 1993. His analysis includes almost all transition economies that were not affected by wars, blockades, or embargoes. (In economies so affected, the intrinsic issues of transition are overshadowed by more basic issues of war or quasi-war economy and survival). The two key issues of social policy in transition economies are pension reform and better targeting of social assistance. Pensions represent 70 to 80 percent of cash social expenditures. No reduction of current levels of social spending (which is unsustainable) can be envisaged without pension reform. Better targeting of social assistance is needed because many universally or enterprise-provided benefits have been terminated, poverty has increased, and social programs lack funding. If poverty is on the rise and money is scarce, better targeting is the only option.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 1530.
Date of creation: 30 Nov 1995
Date of revision:
Health Monitoring&Evaluation; Services&Transfers to Poor; Environmental Economics&Policies; Public Health Promotion; Poverty Impact Evaluation; Environmental Economics&Policies; Safety Nets and Transfers; Services&Transfers to Poor; Rural Poverty Reduction; Health Monitoring&Evaluation;
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- Sándor Sipos, 1992. "Poverty Measurement in Central and Eastern Europe before the Transition to the Market Economy," Innocenti Occasional Papers, Economic Policy Series, UNICEF Innocenti Research Centre iopeps92/28, UNICEF Innocenti Research Centre.
- Edward J. Bird & Johannes Schwarze & Gert G. Wagner, 1992. "The Changing Value of Human Capital in Eastern Europe: Lessons from the GDR," Discussion Papers of DIW Berlin 55, DIW Berlin, German Institute for Economic Research.
- Milanovic Branko, 1994.
"Cash Social Transfers, Direct Taxes, and Income Distribution in Late Socialism,"
Journal of Comparative Economics,
Elsevier, vol. 18(2), pages 175-197, April.
- Milanovic, Branko, 1993. "Cash social transfers, direct taxes, and income distribution in late socialism," Policy Research Working Paper Series 1176, The World Bank.
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