Hostname: page-component-8448b6f56d-qsmjn Total loading time: 0 Render date: 2024-04-24T14:39:05.378Z Has data issue: false hasContentIssue false

Social protection expenditure and redistribution in the Western Balkans

Published online by Cambridge University Press:  15 March 2022

Artan Mustafa*
Affiliation:
Faculty of Political Science, University for Business and Technology (UBT), Prishtina, Kosovo
Maja Gerovska-Mitev
Affiliation:
Institute of Social Work and Social Policy, Faculty of Philosophy, Ss. Cyril and Methodius University in Skopje, North Macedonia

Abstract

This paper analyses social protection expenditure, its financing and its correlation with redistribution effects in the European Union (EU) candidate and potential candidate countries from the Western Balkans – Albania, Bosnia and Herzegovina, North Macedonia, Montenegro, Kosovo and Serbia. Although social expenditure in the Western Balkans varies between countries in terms of the extent and functions, in general, it is growing and concentrates on the elderly population. The expenditure is strongly redistributive towards old age, but is less efficient in reducing extensive child and working-age poverty. From an intergenerational perspective, despite various recent improvements, it remains significantly unbalanced compared to the EU. The expenditure reflects the design of social rights that have been shaped by the legacy of socialism and war, local politics, and international organisations perhaps more than by the impact of economic resources and aging.

Type
Research Article
Copyright
© The Author(s), 2022. Published by Cambridge University Press in association with Social Policy Association

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adema, W., Fron, P., & Ladaique, M. (2014). How much do OECD countries spend on social protection and how redistributive are their tax/benefit systems? International Social Security Review 67, 125. https://doi.org/10.1111/issr.12028 CrossRefGoogle Scholar
Adema, W., & Ladaique, M. (2009). How expensive is the welfare state? Gross and net indicators in the OECD Social Expenditure Database (SOCX). Paris: OECD Publishing, Paris. (OECD social, employment and migration, Working paper no. 92). https://doi.org/10.1787/220615515052 CrossRefGoogle Scholar
Arandarenko, M., & Uvalic, M. (2014). International advice and institutional (mis)configuration, Southeastern Europe 38(1), 232249. https://doi.org/10.1163/18763332-03802003CrossRefGoogle Scholar
Bartlett, W., & Xhumari, M. (2007). Social security policy and pension reform in the Western Balkans. European Journal of Social Security 9(4), 297322.CrossRefGoogle Scholar
Birnbaum, S., Ferrarini, T., Nelson, K., & Plame, J. (2017). The generational welfare contract justice, institutions and outcomes. Cheltenham, UK: Edward Elgar.Google Scholar
Braithwaite, J., Grootaert, C., & Milanovic, B. (1999). Poverty and social assistance in transition countries. New York: St. Martin’s Press.Google Scholar
Castles, F. (2009). What welfare states do: A disaggregated expenditure approach. Journal of Social Policy 38(1), 4562. https://doi.org/10.1017/S0047279408002547 CrossRefGoogle Scholar
Castles, F. G., & Obinger, H. (2007). Social expenditure and the politics of redistribution. Journal of European Social Policy 17(3), 206222. https://doi.org/10.1177/0958928707078364 CrossRefGoogle Scholar
Centre of Official Publications [Albanian: Qendra e Botimeve Zyrtare]. (2020). Law on 2020 budget. Tirana: Centre of Official Publications. https://qbz.gov.al/eli/ligj/2019/12/18/88/8f73ba9b-5c66-4da6-a110-0dfc8eda8d86;q=buxhet Google Scholar
Cocozzelli, F. (2007). Kosovo. In Deacon, B. & Stubbs, P. (Eds.), Social policy and international interventions in South East Europe (pp. 203220). Cheltenham, UK: Edward Elgar.Google Scholar
Deacon, B., & Hulse, M. (1997). The making of post-communist social policy: The role of international agencies. Journal of Social Policy 26(1), 4362. https://doi.org/10.1017/S0047279496004898 CrossRefGoogle Scholar
Esping-Andersen, G. (1990). The three worlds of welfare capitalism. Cambridge: Polity Press.Google Scholar
ESSPROS. (2016). European system of integrated social protection statistics – ESSPROS: Manual and User Guidelines. Luxembourg: European Commission.Google Scholar
European Social Policy Network. (2019). ESPN thematic reports on financing social protection (reports on Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia). Brussels: European Social Policy Network (ESPN)/European Commission. https://ec.europa.eu/social/main.jsp?advSearchKey=ESPN_financing2019&mode=advancedSubmit&catId=22&policyArea=0&policyAreaSub=0&country=0&year=0 Google Scholar
Eurostat. (2021). Income and living conditions dataset. Eurostat. https://ec.europa.eu/eurostat/web/income-and-living-conditions/data/database Google Scholar
Gerovska-Mitev, M. (2019). ESPN thematic report on financing social protection – North Macedonia. Brussels: European Social Policy Network (ESPN)/European Commission.Google Scholar
Gerovska-Mitev, M. (2021) ESPN flash report: Unemployment Insurance in North Macedonia. Brussels: European Social Policy Network (ESPN)/European Commission.Google Scholar
Gotcheva, B., & Sundaram, R. (2013). Social safety nets in the Western Balkans: Design, implementation and performance. In Laderchi, C. R. & Savastano, S. (Eds.), Poverty and exclusion in the Western Balkans (pp. 221244). New York: Springer.Google Scholar
Hacker, J. S., Pierson, P., & Thelen, K. (2015). Drift and conversion: Hidden faces of institutional change. In Mahoney, J. & Thelen, K. (Eds.), Advances in comparative-historical analysis (pp. 180210). Cambridge: Cambridge University Press.CrossRefGoogle Scholar
International Monetary Fund. (2012b). Montenegro: Article IV consultation. Washington, D.C.: IMF. https://www.imf.org/external/pubs/ft/scr/2012/cr12122.pdf Google Scholar
International Monetary Fund. (2018). Montenegro: Article IV consultation. Washington, D.C.: IMF. https://www.imf.org/~/media/Files/Publications/CR/2018/cr18121.ashx Google Scholar
International Monetary Fund. (2019). Republic of Serbia: Staff report for the 2019 Article IV consultation and second review under the policy coordination instrument. Washington, D.C: IMF. https://www.imf.org/-/media/Files/Publications/CR/2019/1SRBEA2019001.ashx Google Scholar
International Monetary Fund. (2020a). Bosnia and Herzegovina: Request for purchase under the rapid financing instrument-press release; staff report; and statement by the executive director for Bosnia and Herzegovina. Washington, D.C.: IMF. https://www.imf.org/en/Publications/CR/Issues/2020/04/22/Bosnia-and-Herzegovina-Request-for-Purchase-Under-the-Rapid-Financing-Instrument-Press-49358 Google Scholar
International Monetary Fund. (2020b). Republic of North Macedonia: Article IV consultation. Washington, D.C.: IMF. https://www.imf.org/en/Publications/CR/Issues/2020/01/24/Republic-of-North-Macedonia-2019-Article-IV-Consultation-Press-Release-Staff-Report-and-48982 Google Scholar
Kaluđerović, J., & Golubović, V. (2019). ESPN thematic report on financing social protection – Montenegro. Brussels: European Social Policy Network (ESPN)/European Commission.Google Scholar
Kaminska, M. E. (2013). The missing dimension: A comparative analysis of healthcare governance in Central and Eastern Europe. Journal of Comparative Policy Analysis: Research and Practice 15(1), 6886. https://doi.org/10.1080/13876988.2013.765756 Google Scholar
Kaminska, M. E., Druga, E., Stupele, L., & Malinar, A. (2021). Changing the healthcare financing paradigm: Domestic actors and international organizations in the agenda setting for diffusion of social health insurance in post-communist Central and Eastern Europe. Social Policy and Administration 2021, 116.Google Scholar
Kenworthy, L. (2010). Economic growth, social policy, and poverty. SSRN (online publication only). https://doi.org/10.2139/ssrn.1666931 Google Scholar
Korpi, W. (1983). The democratic class struggle. London: Routledge and Kegan Paul.Google Scholar
Korpi, W., & Palme, J. (1998). The paradox of redistribution and strategies of equality: Welfare state institutions, inequality, and poverty in the Western countries. American Sociological Review 63(5), 661687. https://doi.org/10.2307/2657333 Google Scholar
Lendvai, N. (2007). Europeanization of social policy? Prospects and challenges for South East Europe. In Deacon, B. & Stubbs, P. (Eds.), Social policy and international interventions in South East Europe, (pp. 2244). Cheltenham, UK: Edward Elgar.Google Scholar
Manow, P. (2010). Trajectories of fiscal adjustment in Bismarckian welfare systems. In Palier, B. (Ed.) A Long Goodbye to Bismarck? (pp. 279300). Amsterdam: Amsterdam University Press.CrossRefGoogle Scholar
Marshall, T. (1950). Citizenship and social class. London: Cambridge University Press.Google Scholar
Matković, G., & Stanić, K. (2020). The Serbian pension system in transition: A silent break with Bismarck. Economic Annals 65(225), 105133.CrossRefGoogle Scholar
Matković, G., & Stubbs, P. (2020). Social protection in the Western Balkans: Responding to the Covid-19 crisis. Sarajevo: Friedrich Ebert Foundation.Google Scholar
Milanovic, B. (1993). Cash social transfers, direct taxes and income distribution in late socialism. Washington DC: The World Bank. (Policy research, Working paper no. 1176). http://documents.worldbank.org/curated/en/747181468751149261/Cash-social-transfers-direct-taxes-and-income-distribution-in-late-socialism Google Scholar
Morel, N., & Palme, J. (2019). Financing the welfare state and the politics of taxation. In Greve, B. (Ed.), Routledge handbook of the welfare state (2nd ed., pp. 467476). Abingdon: Routledge.Google Scholar
Mustafa, A. (2021). Kosovo introduces a universal child benefit and extends maternity benefit to unemployed women. Brussels: European Social Policy Network (ESPN)/European Commission.Google Scholar
Mustafa, A., & Haxhikadrija, A. (2019). ESPN thematic report on financing social protection: Kosovo. Brussels: European Social Policy Network (ESPN)/European Commission.Google Scholar
Obinger, H., Petersen, K., & Starke, P. (Eds). (2018). Warfare & welfare. Oxford: Oxford University Press.CrossRefGoogle Scholar
Obinger, H., & Wagschal, U. (2010). Social expenditure and revenues. In Castles, F. G., Leibfried, S., Lewis, J., Obinger, H., & Pierson, C (Eds.), The Oxford handbook of the welfare state (pp. 333352). Oxford: Oxford University Press.Google Scholar
Obradović, M., & Jusić, M. (2019). ESPN thematic report on financing social protection – Bosnia and Herzegovina. Brussels: European Social Policy Network (ESPN)/ European Commission.Google Scholar
Obradović, N., & Filic, G. (2019). Inequality and welfare state clientelism in Bosnia and Herzegovina, Economic Annals 64(223), 83104.CrossRefGoogle Scholar
Official Gazette of the Republic of Kosovo. (2019). Law on budget 2019. Official Gazette of the Republic of Kosovo. https://gzk.rks-gov.net/ActDetail.aspx?ActID=18554 Google Scholar
Pejin Stokić, L. (2021). ESPN Flash Report – New law on financial support for families with children. Brussels: European Social Policy Network (ESPN) /European Commission.Google Scholar
Pejin Stokić, L., & Bajec, J. (2019). ESPN thematic report on financing social protection: Serbia. Brussels: European Social Policy Network (ESPN)/European Commission.Google Scholar
Titmuss, R. (1974). Social policy. London: George Allen & Unwin.Google Scholar
UNICEF. (2021). Universal child allowance for children up to 6 solid start for poverty reduction. Montenegro: UNICEF. https://www.unicef.org/montenegro/en/stories/universal-child-allowance-children-6-solid-start-poverty-reduction Google Scholar
Vachudova, M. A. (2008). The European Union: The casual behemoth of transnational influence on post-communist politics. In: Orenstein, M. A., Bloom, S., & Lindstrom, N. (Eds.), Transnational actors in Central and East European transitions (pp. 1937). Pittsburgh: University of Pittsburgh Press.CrossRefGoogle Scholar
Wilensky, H. (1975). The welfare state and equality: Structural and ideological roots of public expenditure. Berkley: University of California Press.Google Scholar
World Bank. (2021). Word bank open data. The World Bank. https://data.worldbank.org/indicator Google Scholar
Ymeri, S. (2019). ESPN thematic report on financing social protection: Albania. Brussels: European Social Policy Network (ESPN)/European Commission.Google Scholar
Žarković-Rakić, J., Aleksić-Mirić, A., Lebedinski, L., & Vladisavljević, M. (2017) Welfare state and social enterprise in transition: Evidence from Serbia. Voluntas 28, 24232448. https://doi.org/10.1007/s11266-017-9844-2 CrossRefGoogle Scholar