Abstract
The book series entitled ‘Studies in Critical Social Science Volume 192’ – ‘Social Security in the Balkans Volume 1’. The Balkans region consists of several southeastern European countries, including Albania, Bosnia and Herzegovina, Greece, Bulgaria, Croatia, Kosovo, Montenegro, North Macedonia, Romania, Serbia and Slovenia. Each country in the Balkans has its social security system, and while there may be some similarities in certain aspects, there are also significant differences in eligibility criteria, benefits and administration. In this book, an overview of Social Policy in Croatia, Albania, Bosnia and Herzegovina, Greece, Romania and Bulgaria is carried out in eight chapters divided into three sections. The first part is dedicated to Social Security: Overview of Reforms and Challenges, the second part to Pension System: Scheme and Development and the third section to Social Security Evolution and Economic Recession.
The first chapter in the first section relates to Croatia’s experienced significant structural changes and legislative reforms to pursue sustainable economic development while contending with issues related to an ageing population, the pressures of globalisation and pervasive technological advancement. It delves into Croatia’s endeavour to implement a comprehensive employment policy and social inclusion in the face of multiple demands and constant developments. It highlights the difficulties and evaluates the results of reforms in housing, health care, social security and welfare, employment and education, and discusses ways in which their social security system can be improved.
The next chapter discusses the dissolution of the former Socialist Federal Republic of Yugoslavia and the post-conflict (1992–1995) creation of Bosnia and Herzegovina. It highlights the numerous social issues that emerged due to this terrible conflict. The transitional difficulties and the effects of neoliberal policies. In doing this, the chapter explores the social security-related issues within the larger social security conceptual framework and their implications for the present security risks, difficulties and threats Bosnia and Herzegovina faces. The chapter brings to us society’s economic and social realm, including depopulation, poverty and social exclusion, unemployment, migration, vulnerable socioeconomic groups, and the concerns of Islamist extremism and terrorism. It suggests that the current risks and difficulties Bosnia and Herzegovina faces cannot be effectively addressed by the institutions in place.
This book section closes with a chapter on the post-communist transition in the Albanian pension systems. The authors in this chapter note that Albania had to contend with issues relating to an increase in the elderly dependency ratio, an increase in the number of pension beneficiaries in rural areas and a low number of direct contribution receipts compared to higher pension expenditures. They note that this necessitates a special directive for funding pensions from the state budget and the monopoly of public pension marketing compared to the private pension market. This chapter examines the current pension system’s operation, the variables and warning signs pointing to potential problems. It is guided by the elements that maintain the stability of the Albanian pension system. Furthermore, the authors indicate Albania’s 2014 pension reform was only partially successful. They note that while contributions to the public pension needs have increased since, even though there are now twice as many pensioners and private pension fund assets in Albania, the private pension market still only accounts for 1.7% of the country’s financial markets, making it small, underdeveloped and not contributing to the pension system.
The second section of the book hosts three chapters. The first chapter looks at the pension system in Greece and notes the significant structural adjustments to ensure viability in light of the country’s precarious budgetary condition since 2010. This chapter examines the structural evolution and changes to the Greek pension system after the reforms made in the previous 10 years. They highlight that what was once a multi-fund and multi-tier system with various rules governing pension benefits and eligibility for them has evolved into a system that operates with uniform rules for everyone and provides main and auxiliary pension benefits from two distinct funds that function in accordance with well-defined rules. The system’s difficulties with long-term budgetary viability and capacity to pay out suitable pensions are explained herein.
The fifth chapter delves into the current and future consistency of the Pension System and Social Security in Romania in the Face of Demographic Changes. It discusses the fact that because Pay-As-You-Go pension systems are based on the social security contributions of the labour force, demographic variables like population ageing and the growing phenomena of migration in emerging nations have a negative impact. This chapter highlighted the organisational structure of the Romanian pension system. It drew a picture of the impact of their upcoming demographic changes using structural equation modelling (SEM) and integrative assessment of specific pension indicators and demographic data from Romania from 1990 to 2017. Due to demographic challenges, they show that the working population cannot maintain Romania’s PAYG public pension system. They note that for Romanian’s pension system to be viable, it is imperative to complement public pensions with private ones.
The last chapter of this section focuses on Bulgaria. It is noted that since 1989, Bulgaria has been undergoing substantial structural reforms to promote economic stability and fair growth. However, the authors suggest that the Bulgarian social security system is under increasing pressure due to a large salary reduction, rising unemployment, a worsening old-age dependence ratio, declining fertility rates and high emigration outflows. They state that, in response to these tendencies, the Bulgarian government implemented several measures to preserve the system’s viability. The chapter explains the general concerns about Bulgaria’s pension system and the social, economic and demographic factors influencing its viability. It discusses the Social Insurance Fund Act, passed in 1996, and the Social Insurance Code, put into effect in 2003, and notes that this served as the foundation for the modern Bulgarian pension system. Herein, the authors explain that the results point to the need for further reforms in retirement policies because they must be built on a cost-effective, comprehensive strategy that includes both pension plans and a larger social security system.
The next section hosts two chapters under the heading of Social Security Evolution and Economic Recession, with the first chapter in this section, chapter 7, delving again into Greece’s social security system. Herein the authors note that this was made unfair and inefficient over time by its public policies. They highlight that the social insurance system was the main focus of funding, organisation and operation until the Great Recession. The social assistance system was a needy relative struggling to function because of social inadequacy and fragmentation. This chapter examined how the Great Recession affected Greece’s social security system – particularly the decreases in social spending, which was consistent with poverty’s escalating issues. The authors in this chapter demonstrate that the social security system is facing a race to the bottom in addition to the crisis’ considerable increase in poverty. They state herein that the remaining welfare programme, which was formed per the more expansive modern goals of neoliberal social policy, has only been able to provide survival assistance to people experiencing poverty.
The very last chapter, chapter 8, again focuses on Greece and what it went through during one of the longest and harshest recessions of any Western economy in the 20th century between 2009 and 2015. The chapter relates that during this period, the country’s real gross domestic product (GDP) decreased by more than a quarter, and all social and employment indices deteriorated at an unprecedented rate. The resulting fiscal consolidation measures not only increased taxation but also significantly reduced social security benefits and significantly reformed many different parts of the social security system, changing the size and scope of the system. This chapter overviews the Greek social security system after the global financial crisis, focussing on its more crucial components, such as pensions, health care and mini-mom income support. The analysis uses a variety of statistical indices and quantitative data from national and international agencies. It is based on a document analysis of legislative acts, official publications and research papers regarding national social policy by providing an overview of the system that became crystallised in the wake of the recession and briefly analysing a number of recent important improvements, the most significant policy obstacles to creating a long-lasting and fair social security system are covered in this chapter. The authors of this chapter demonstrated that while structural improvements were beneficial, austerity as whole hurt social policies. However, significant policy work will be required to deal with issues like population ageing, tight public budget limits, and balancing efficiency and equity in the upcoming years.
Social security in the Balkans typically encompasses various programmes and benefits to provide financial support and assistance to needy individuals and families. These programmes generally include:
Pensions. Providing retirement benefits to individuals who have reached a certain age and have contributed to the social security system during their working years.
Health Care: Offering medical services and coverage to insured individuals, which may include access to hospitals, clinics and medical treatments.
Unemployment benefits. Assisting individuals who have lost their jobs by providing temporary financial support until they can find new employment.
Disability benefits. Providing financial aid to individuals unable to work due to a disability or long-term illness.
Family and child benefits. Offering financial assistance to families with children to support their upbringing and well-being.
This book provides a picture of the challenges and reforms to meet these challenges. It is important to note that the specific details of social security programmes, such as eligibility criteria, benefit levels and funding mechanisms, can vary significantly from one Balkan country to another. In addition, social security systems in the region have undergone reforms and change over the years to adapt to economic challenges and demographic shifts.
It is valuable since it provides a comprehensive overview of the social security systems in each Balkan country. It can cover these systems’ historical development, structure and reforms. Such a comprehensive resource would benefit researchers, policymakers and anyone seeking in-depth knowledge of social security in the region. By examining similarities and differences, readers can gain insights into the strengths and weaknesses of each system and identify potential areas for improvement. It delves into the laws and regulations that underpin these systems, helping legal professionals, policymakers and administrators understand the legal intricacies involved. Moreover, it explores the impact of social security on ageing populations, labour market dynamics and poverty reduction, offering valuable insights for economists and social scientists. Also, it discusses these challenges and proposes potential solutions or policy recommendations.
It is also interesting from an international perspective as an international audience or researcher could explore the role of international organisations, foreign aid and best practices from other countries in shaping the region’s social security policies.
This well-structured book provides a practical guidance for policymakers and administrators seeking to improve and optimise their respective social security systems. It could draw from the successful case studies and lessons from these countries to inform policy decisions. It is an educational resource that could serve students studying public policy, social work, economics and related disciplines. It could also be a valuable reference for professionals in social services and development organisations.
Overall, this comprehensive book on social security in the Balkans fills a significant knowledge gap and serves as a valuable resource for individuals and institutions seeking to understand, evaluate and improve social welfare systems in the region.