Public Policy and Social Conditions
In the early 1990s considerable attention was given to the issues of stabilization, privatization, taxation and labour market adjustment in the Eastern Europe transition, but demographic and welfare issues received less attention. While the economic and social reforms undertaken were desirable they faced severe problems of implementation and involved economic, social and political costs far greater than anticipated. This first Report highlights the fact that initial hopes for rapid transformation and economic prosperity were quickly tempered by a considerable decline in output, employment and incomes, a worsening of some social indicators, and the appearance of new welfare problems. The Report warns against neglecting the social costs of transition which affect children and adults, but also threaten the entire reform process.
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