The Transformation of the Social Systems in Romania after 1989 – West Orientation with Home-made Obstacles  Cover Image
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Die Transformation der Sozialsysteme in Rumänien nach 1989: Westorientierung mit hausgemachten Hindernissen
The Transformation of the Social Systems in Romania after 1989 – West Orientation with Home-made Obstacles

Author(s): Björn Hacker
Subject(s): Politics / Political Sciences
Published by: Südosteuropa Gesellschaft e.V.

Summary/Abstract: The Romanian welfare state was one of those laggards, that reformed their social security systems very late compared to other central and eastern European countries. During the first years of the transition period after 1989, Romanian politicians seemed to have been occupied by getting the economy work, being confronted with high inflation and a massive rise of unemployment throughout the country. In the mid-90s, when financing problems in the pension and health sectors became too urgent to be ignored any longer, gradual reforms have been implemented. But the effects on financial sustainability of the social security system appeared to be low. Therefore, Romania began to pursue more fundamental reforms on the eve of the millennium: Replacement of the tax-financed health care system by a Bismarckian insurance scheme, introduction of a (not yet working) capital financed pillar in the pension system and emphasis on activating labour market policies. Still, the circumstances under which the welfare reforms should work are far from being ideal. Although Romania joined the EU in 2007, modernisation is not yet completed. Until now, the evolution of the social security system shows considerable path dependencies. It is to be observed, whether economic prosperity and infrastructural stabilisation will pave the way to a clearer affiliation to welfare state systems.

  • Issue Year: 2007
  • Issue No: 04
  • Page Range: 60-75
  • Page Count: 16
  • Language: German
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