The Political Economy of Pension Reform in Eastern Europe

Abstract

The retirement schemes in several East European countries underwent fundamental change in recent years, defying conventional wisdom in welfare state research. This article takes a new look at the determinants of paradigm choice in the area of old‐age security, comparing the Polish, Hungarian and Czech experience from an actor‐centred institutionalist perspective. The author points out that structural factors — notably the financial situation of retirement schemes and the level of external debt — largely determined the set of main pension reform actors, as well as their relative strength. The resulting actor constellations produced the basic paradigm choice, based on the actors' respective cognitive maps and consequent perception of pension reform alternatives. Tactical moves and the strategic potentialities of the chosen paradigm were also relevant.