The cost of becoming a neo-liberal welfare state: A cautionary case of Lithuania

Abstract

This article reveals the extent to which western-driven neo-liberal policies have influenced and shaped the current state of the national welfare policies, and consequent socio-economic conditions, in Lithuania. It looks at different stages of welfare state development following the independence of Lithuania before providing an overview of the current national institutional settings and policies. First, it discusses policy reforms that occurred during the transformation from planned to market economy. This part deliberates ideological changes characteristic to that period along with socio-economic impacts of the transformation. Then, it evaluates the more recent welfare state developments that began after Lithuania’s accession to the European Union (EU). The article concludes with an assessment of the key features of contemporary welfare policies and their wider socio-economic outcomes.