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Poverty, inequality, and social policy in transition economies

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Author Info
Milanovic, Branko

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Abstract

In 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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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1530.

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Date of creation: 30 Nov 1995
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Handle: RePEc:wbk:wbrwps:1530

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Related research
Keywords: 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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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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. [Downloadable!] (restricted)
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  2. 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.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Rutkowski, Michael, 1995. "Workers in transition," Policy Research Working Paper Series 1556, The World Bank. [Downloadable!]
  2. Cerami, Alfio, 2008. "Central Europe in transition: emerging models of welfare and social assistance," MPRA Paper 8377, University Library of Munich, Germany. [Downloadable!]
  3. Cornia, Giovanni Andrea & Kiiski, Sampsa, 2001. "Trends in Income Distribution in the Post-World War II Period Evidence and Interpretation," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  4. Wu, Ximing & Perloff, Jeffrey M., 2004. "China'S Income Distribution Over Time: Reasons For Rising Inequality," 2004 Annual meeting, August 1-4, Denver, CO 20061, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
    Other versions:
  5. Bruno, Michael & Ravallion, Martin & Squire, Lyn, 1996. "Equity and growth in developing countries : old and new perspectives on the policy issues," Policy Research Working Paper Series 1563, The World Bank. [Downloadable!]
  6. Gerardo Angeles-Castro, 2006. "The relationship between economic growth and inequality: evidence from the age of market liberalism," DEGIT Conference Papers c011_009, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  7. Vadlamannati, Krishna Chaitanya, 2008. "Do Elections Slow Down Economic Globalization Process In India? It’S Politics Stupid !," MPRA Paper 10139, University Library of Munich, Germany. [Downloadable!]
  8. Denizer, Cevdet, 1997. "Stabilization, adjustment, and growth prospects in transition economies," Policy Research Working Paper Series 1855, The World Bank. [Downloadable!]
  9. Ravallion, Martin & Shaohua Chen, 1996. "What can new survey data tell us about recent changes in distribution and poverty?," Policy Research Working Paper Series 1694, The World Bank. [Downloadable!]
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  10. Vasco Molini & Guanghua Wan, 2008. "Discovering sources of inequality in transition economies: a case study of rural Vietnam," Economic Change and Restructuring, Springer, vol. 41(1), pages 75-96, March. [Downloadable!] (restricted)
  11. Lindbeck, Assar, 1997. "Incentives in the Welfare State," Seminar Papers 604, Stockholm University, Institute for International Economic Studies. [Downloadable!]
    Other versions:
  12. Cornia, Giovanni Andrea & Addison, Tony & Kiiski, Sampsa, 2003. "Income Distribution Changes and their Impact in the Post-World War II Period," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  13. Klugman, Jeni & Braithwaite, Jeanine, 1998. "Poverty in Russia during the Transition: An Overview," World Bank Research Observer, Oxford University Press, vol. 13(1), pages 37-58, February. [Downloadable!]
  14. Lokshin, Michael & Ravallion, Martin, 2000. "Short-lived shocks with long-lived impacts? - household income dynamics in a transition economy," Policy Research Working Paper Series 2459, The World Bank. [Downloadable!]
  15. Rémi Bazillier & Nicolas Sirven, 2006. "Les normes fondamentales du travail contribuent-elles à réduire les inégalités ?," Documents de travail 123, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV. [Downloadable!]
    Other versions:
  16. Gerardo Angeles-Castro, 2006. "The Relationship Between Economic Growth and Inequality: Evidence from the Age of Market Liberalism," Studies in Economics 0601, Department of Economics, University of Kent. [Downloadable!]
  17. Hassan, Fareed M. A., 1998. "Revenue-productive income tax structures and tax reforms in emerging market economies - evidence from Bulgaria," Policy Research Working Paper Series 1927, The World Bank. [Downloadable!]
  18. Yang Guang, 1999. "Facing unemployment : urban layoffs and the way out in post-reform China (1993-1999) : an empirical and theoretical analysis," Working Papers - General Series 308, Institute of Social Studies. [Downloadable!]
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