ABSTRACT

This chapter analyses political processes that shaped the variety of welfare regimes in transition economies. It shows that the longer-term impact of adjustment to fiscal shocks on welfare states is conditioned by the strength of welfare constituencies in the respective countries. The chapter deals in more detail with the transformation of welfare regimes in Eastern Europe and the Commonwealth of Independent States (CIS) respectively, addressing also the variation within the country groups. It discusses among three major types of reforms with distinct political-economic triggers and dynamics: the welfare adjustments, the neo-liberal restructuring, and the revolution in pensions. In Belarus, welfare efforts were generally maintained or, if compared to GDP, substantially increased. As welfare efforts relative to GDP remained relatively stable, neo-liberal analysts concluded that the welfare state in Russia was relatively protected, with social support deemed to have expanded beyond a sustainable level.