Table Of ContentWelfare States in
Transition
East and West
Edited by
Irwin Collier, Herwig Roggemann,
Oliver Scholz and Horst Tomann
WELFARE STATES IN TRANSITION
STUDlES IN ECONOMIC TRANSITION
General Editors: Jens Holscher, Commerzbank Professor for Money and Finance,
University of Chemnitz, and Honorary Professor, Institute for German Studies,
University of Birmingham: and Horst Tomann, Professor of Economics, Free
University Berlin
This new series has been established in response to a growing demand for a greater
understanding of the transformation of economic systems, It brings together
theoretical and empirical studies on economic transition and economic
development. The post-communist transition from planned to market economies is
one of the main areas of applied theory because in this field the most dramatic
examples of change and economic dynamics can be found. The series aims to
contribute to the understanding of specific major economic changes as well as to
advance the theory of economic development. The implications of economic policy
will be a major point of focus.
Titles include:
Irwin Collier, Herwig Roggemann, Oliver Scholz and Horst Tomann (editors)
WELFARE STATES IN TRANSITION: East and West
Hubert Gabrisch and Rudiger Pohl (editors)
EU ENLARGEMENT AND ITS MACROECONOMIC EFFECTS IN
EASTERN EUROPE: Currencies, Prices, Investment and Competitiveness
Jens HOlscher and Anja Hochberg (editors)
EAST GERMANY'S ECONOMIC DEVELOPMENT SINCE UNIFICAT[ON
Domestic and Global Aspects
Emil Kirchner (editor)
DECENTRALIZATION AND TRANSITION IN THE VISEGRAD
Poland, Hungary, the Czech Republic and Slovakia
Johannes Stephan
ECONOMIC TRANSITION IN HUNGARY AND EAST GERMANY
Gradualism and Shock Therapy in Catch-up Development
Studies in Economic Transition
Series Standing Order ISBN 978-0-333-73353-0
(outside North Amah'a only)
You can receive future titles in this series as they are published by placing a standing order.
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Customer Services Department, Macmillan Distribution Ltd
Houndmills, Basingstoke, Hampshire RG2l 6XS, England
Welfare States
in Transition
East and West
Edited by
lrwin Collier
Pmjl!ssor of Eml1ulllics
Free Ullil'I'r,\'''I), Dedit,
Herwig Roggemann
Professor of La\\'
Fru Ul1il'(~rsit)' Berlill
Oliver Scholz
UcWref ill £COIIQmics
Fru Unjl'l'rsit)' EJulill
and
Horst Tomann
Pro/t'ssor of Economics
Free Unil'ersi/), Bl'rlill
First published in Great Britain 1999 by
MACMILLAN PRESS LTD
Houndmills, Basingstoke, Hampshire RG2I 6XS and London
Companies and representatives throughout the world
A catalogue record for this book is available from the British Library.
ISBN 978-1-349-40903-7 ISBN 978-0-230-37151-4 (eBook)
DOI 10.1057/9780230371514
First published in the United States of America 1999 by
ST. MARTIN'S PRESS, INC.,
Scholarly and Reference Division,
175 Fifth Avenue, New York, N.Y. 10010
ISBN 978-0-312-21911-6
Library of Congress Cataloging-in-Publication Data
Welfare states in transition: East and West 1 edited by Irwin Collier
.. let a1.J.
p. cm. - (Studies in economic transition)
Includes bibliographical references and index.
ISBN 978-0-312-21911-6
l. Mixed economy-Europe, Central-Congresses. 2. Europe,
Central-Economic conditions- Congresses. 3. Europe, Central
-Social policy-Congresses. 4. Post-communism-Europe, Central-
-Congresses. 5. Welfare state-Congresses. I. Collier, Irwin L.,
1951- II. Series.
HC244.W376 1999
338.947-dc21 98-47081
CIP
Selection, editorial matter and Preface lj') Irwin Collier, Herwig Roggemann, Oliver Scholz
and Horst Tomann 1999
Text © Macmillan Press Ltd 1999, with the exceptions of
Introduction © Irwin Collier and Horst Tomann 1999
Chapter 2 lj') Herwig Roggemann 1999
Chapter 4lj') Oliver Scholz and Horst Tomann 1999
Reprint of the original edition 1999
All rights reserved. No reproduction, copy or transmi;,sion of this publication may be made
without written permission.
No paragraph of this publication may be reproduced, copied or transmitted save with
written permission or in accordance with the provisions of the Copyright, Designs and
Patents Act 1988, or under the terms of any licence permitting limited copying issued by
the Copyright Licensing Agency, 90 Tottenham Court Road, London WIP 9HE.
Any person who does any unauthorised act in relation to this publication may be liable to
criminal prosecution and civil claims for damages.
The authors have asserted their rights to be identified as the authors of this work in
accordance with the Copyright, Designs and Patents Act 1988,
This book is printed on paper suitable for recycling and made from fully managed and
sustained forest sources.
10 9 8 7 6 5 432 I
08 07 06 05 04 03 02 01 00 99
Contents
List of Tables VII
List of Figures VlII
Preface IX
Notes on the Contributors X
Introduction
Irwin Collier and Horst Tomann XlII
Part I Conceptual Issues of the Market Society
1 The Market Economy and its Ethical Infrastructure 3
Marie Bohata
Comment on Chapter 1 16
Elinor Scarbrough
2 Functional Change in Property Rights in the
Welfare State: Lessons from the Federal
Republic of Germany 25
Herwig Roggemann
Comment on Chapter 2 41
Ronald A. Brand
3 The State of Corporatism in a Central Europe in
Transition 50
Reinhard Heinisch
Part II Social Policy in Transition
4 The Role of Social Policy during the Transformation
in Central Europe 93
Oliver Scholz and Horst Tomann
Comment on Chapter 4 112
Emil 1. Kirchner
V
VI Welfare States in Transition
5 Political Economy of Social Welfare Reform: the
Parliamentary Election of 1996 in the Czech Republic 114
Frantis ek Turnovec
Comment on Chapter 5 137
Kai A. Konrad
6 Enlargement of the European Union and the
Harmonization of Public Pension Systems 140
Ondrej Schneider
Comment on Chapter 6 158
Cathryn Ross
Part III Dynamics of Income Inequality
7 Social Cohesion and Transition Dynamics 167
lens Holscher
8 Income Distribution in Transition Economies and
its Dynamics 174
Miron Tegze
Comment on Chapter 8 185
Hans Wei:,feld
9 The Share and Position of Minimum Income
Categories of Households in the Czech Republic 189
Marie Vavrejnova
Comment on Chapter 9 202
Miriam Beblo
Index 205
List of Tables
3.1 Corporatism: system characteristics by country 58
3.2 Corporatism: institutional characteristics by country 66
5.1 Results of 1996 election to the Lower House of the
Czechoslovak Republic Parliament 119
5.2 Distribution of seats and voting power in the Lower
House of the Czechoslovak Republic Parliament 121
5.3 Comparative results of 1992 and 1996 elections 123
5.4 Regional distribution of electoral preferences 125
5.5 Electoral preferences in Prague 127
5.6 Electoral preferences in Northern Moravia 127
5.7 LR and RL cumulative distributions of votes
referring to social welfare reform 130
5.8 Voting power: an example of vote distribution 132
5.9 Voting power: a four-member committee 133
5.10 Forming a winning coalition 134
5.11 BC power index 135
5.12 Unemployment and average wages in Northern
Moravia 135
6.1 Employment and migration within the EU 150
7.1 Market constellations and economic dynamism 168
8.1 Gini coefficients in the Czech Republic and the
Slovak Republic 180
8.2 Gini coefficients for the Czech Republic 181
8.3 Gini coefficients for Romania 181
9.1 Household cost-of-living indices 193
9.2 Share of per capita income (in deciles) 194
9.3 Structure of per capita household expenditures
(percentage) 195
9.4 Minimum subsistence level (end of period,
monthly per household in kc) 196
9.5 Income indices (previous year = 100) 197
9.6 Expenditure on food as percentage of total
expenditure 197
9.7 Expenditure of the minimum income households
(average per capita expenditure) indices and shares 198
9.8 Minimum income categories and their revaluation 199
vii
List of Figures
5.1 Distribution of votes and seats in the Lower House
of the Czechoslovak Republic Parliament 120
5.2 Distribution of seats in the Lower House of the
Czechoslovak Republic Parliament 122
5.3 Comparison of 1992 and 1996 electoral results
(in shares of valid votes) 124
5.4 Comparison of 1992 and 1996 electoral results
(in shares of seats) 124
5.5 Comparison of regional results (in shares of valid
votes) 126
5.6 Electoral preferences in Prague 128
5.7 Electoral preferences in Northern Moravia 128
5.8 Median voter's position on social welfare reform 131
VllI
Preface
The papers and comments collected in this volume were first pre
sented at a symposium held at the Freie Universitat Berlin that
brought together scholars from a wide range of disciplines to criti
cally examine and compare recent social policy transitions in East
and West. This symposium represents early fruit from trilateral
research cooperation between the University of Pittsburgh, the
Charles University of Prague and the Freie Universitat Berlin. In
addition to participants from all three partner institutions, several
other distinguished scholars from Europe and the United States
contributed to the success of the symposium. The theme 'Welfare
States in Transition - East and West' will constitute a major com
ponent of future research cooperation between the partner
institutions.
There was overwhelming agreement among the participants of
the symposium that successful social policy transition in the east
ern economics could not be limited to merely duplicating institutions
of western welfare states. Of course one can still learn much from
the experience gathered over the past half-century, especially with
respect to the long-run impact and sustainability of some of the
major institutions of social policy. Just as we hope that policymakers
in the East can avoid many of the mistakes made in the western
welfare states, we also hope that social policymakers in the West
will have also learned from experience and so avoid the unneces
sary repetition of past errors.
The generous financial support provided by the Volkswagen Foun
dation is a debt we most gratefully acknowledge. Our students Sandra
Dittrich and Iris Paeschke deserve special recognition along with
our sincere thanks for serving as assistant editors in the prepara
tion of this book.
THE EDITORS
Berlin
ix
