Implementation of the welfare state in the Visegrád countries

Abstract

ABSTRACT. This paper aims to match the Visegrad countries which joined the European Union in 2004 and are usually analysed as a separate group of their own (often referred to as the catching-up countries) with the welfare models functioning in Western Europe. The empirical part includes an analysis of the practical functioning of the welfare state in the Visegrad countries against the broader background of the EU-15. The working hypothesis is that the models differ in terms of the effectiveness and justice of embraced solutions, as well as the influence of public spending on the quality of life and reduction of poverty.Our analysis shows that one can classify Czech Republic as a country of the Nordic model, Hungary and Slovakia as Continental and Poland as Mediterranean. The Nordic system performs the best among all the welfare state models in terms of the principal assessment criteria that include the labour market situation, as well as the reduction of poverty and social inequalities. However, their policies have not been very cost-effective; public spending exceeds 30% of the GDP, and the global crisis has increased it even further. The example of Anglo-Saxon Ireland shows that public expenditure can be used more effectively to fight poverty; Ireland has managed to reduce poverty by almost as much as Sweden, Finland, or Denmark, but at a much lower cost.In the analysis, the Visegrad countries, the Czech Republic (the Nordic model) and Slovakia (the continental model) in particular, achieve satisfactory results across all indicators.Keywords: welfare states, the European Social Model (ESM), Visegrad countries, labour market, reduction of poverty.JEL Classification : E24, I31, I38, J21IntroductionIn the aftermath of the Second World War, the countries of Western Europe have adopted a special socio-economic model, known today as the welfare state or the European Social Model (ESM). The model can be considered a specific example of social policy implemented on European soil (hereinafter, the terms 'social policy' and the 'European social model' will be used interchangeably). However, it is worth noting that despite many similarities, the details of its implementation have varied from one state to another (see Strielkowski et al., 2014; or Strielkowski and Cabelkova, 2015). The Visegrad countries, which joined the European Union in 2004, have usually been analysed as a separate group of their own, referred to as the catching-up countries. The purpose of this article is to match them with the welfare models functioning in Western Europe. The research part includes an analysis of the practical functioning of the welfare state in the Visegrad countries against the broader background of the EU-15. The hypothesis is that the models differ in terms of the effectiveness and justice of embraced solutions, as well as the influence of public spending on the quality of life and reduction of poverty.1. Basic concepts and definitionsThe European Social Model (ESM) is not easy to define, as the EU member states have adopted many different variants of the model within their national frameworks. This is mainly due to the difference in traditions, cultures, and experiences, as well as the level of economic development. However, there also exist certain similarities between the different national solutions, and, consequently, it is possible to propose a general and coherent definition of ESM by enumerating its most important features (Borowiec, 2011).The Treaty on the functioning of the European Union (TFEU) emphasizes that:* In all its activities, the Union shall aim to eliminate inequalities, and to promote equality, between men and women (art. 8);* art. 9: In defining and implementing its policies and activities, the Union shall take into account requirements linked to the promotion of a high level of employment, the guarantee of adequate social protection, the fight against social exclusion, and a high level of education, training and protection of human health. …