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10/05/2012
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Poverty, welfare and social intervention in Romania
Florin Lazar, PhD LecturerUniversity of Bucharest, Faculty of Sociology and Social Work, Bucharest, Romania
Outline
A historical perspective on poverty in Romania
Current situation of poverty & intervention in Romania
Responses to poverty
Recent changes
Conclusions
Romania…
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A historical perspective on poverty in Romania
XIV-XIX century mainly charity work for the poor and disadvantaged
Examples:1365 near Bucharest (Campulung Muscel) a village for the ill (blind, disabled)1480 in Moldova (Stefan the Great)1524 near Bucharest (Curtea de Arges monastry) – shelter, food, clothes and moneyXVI century – regulations – poor card/allowing begging – only for the disabled; poor able to work receiving help only if proving insufficient gains from work, begging forbidden1686 – the dean (clerical) of Bucharest – a list of the poor receiving money from the city hall budget
Beggars neighbouhood
1695 – two main social assistance institutions for the poor1775 – Child Protection Law1782-1785 - Poor box
18311831--1832 1832 –– Organic Regulations Organic Regulations –– social assistance social assistance establishedestablished1881 1881 –– social assistance service of Bucharest city hallsocial assistance service of Bucharest city hall
Social work education - history
1929 University education 1929 University education in in social social work work -- PrincipesaPrincipesaIleana School of Social WorkIleana School of Social Work–– with sociologists with sociologists supportsupport19291929--1936 a Social Work Review1936 a Social Work Review1947 communist rule1947 communist rule1952 Social Work education from university to post1952 Social Work education from university to post--high schoolhigh school1969 Social Work education forbidden 1969 Social Work education forbidden –– until until 199019901994 1994 –– first SW graduates (4 years study)first SW graduates (4 years study)Since 2005 - 3 years undergraduate (Bologna)In 2011: 22 Social Work programs at university level
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Romania – General information
GDP/inhabitant (PPP) - 12.476 $/year (2011),
19 mil. Inhabitants – provisional data census Oct.2011 (down from 21.7 in 2002 and reference for statistics!)
Capital: Bucharest (1.6 mil. Inhab.)
Official language – Romanian; Ethnic Minorities: Hungarian, Roma, others
Religion: Christian orthodox
Urban/rural: 55%/45% http://businessday.ro/wp-content/uploads/2011/07/Pondere.jpg
Independent since 1866
01.01.2007 joined EU
Current situation:1990-2012
Transition from socialist/centralized economy to free market
Economic downturn, restructuring, unemployment, migration (1.8 mil. in Italy), demographic decline (22.5-19 mil), polarization (GINI 1989 – 21; 2008 – 32)
1995 first social welfare law (with WB support)
International donors – IMF, WB, EU, USAID
Construction of social work services and system
2001 – first social work law/then 2006, 2011
Socio-economic data
Pensioners – 2.5 mil. – 1990 vs. 5 mil. 2012
Employees – 8 mil. 1990 vs. 4.8 mil. 2012
Dependency ratio: 1.36
Unemployment rate: 7.7% (8.2% men/7.0% women)
Youth unemployment rate: 25.4%
Employment rate: 57.9% (64.8%/51.1%) – youth: 23%
Poverty higher in rural areas
Source: Cantillon, 2011
In 2010 the second poorest EU country
Relative poverty (60% of median) 22.4% in 2009
32.2% - material deprivationin 2009
41% at-risk-of-poverty or social exclusion (49% for children)
GDP per capita in Purchasing Power Standards (PPS) (EU-27 = 100) 2010
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Social protection expenditures - % of GDP, 2000-2008, EU-Romania
26,4 26,6 26,9 27,2 27,1 27,1 26,725,7
26,4
13,0 12,813,6 13,1 12,8
13,412,8
13,614,3
0
5
10
15
20
25
30
2000 2001 2002 2003 2004 2005 2006 2007 2008
EU27
Romania
Social protection expenditure - % GDP, 2009, EU
18.518.2
18.5 18.317.8
17.2
16
14.515
15.516
16.517
17.518
18.519
2007 2008 2009 2010 2013 2015 2020
relative poverty rate %
Estimated relative poverty rate
Romanian welfare state…
Post communist corporatist-conservative (Deacon, 1992)
Looking for an identity (Lazar, 2000) and moving towards liberal/Southern Rim model (Preda, 2002)
Poor inegalitarian (Cantillon, 2011) along with the Baltic States, Bulgaria, Greece, Poland, Portugal and Cyprus
Developing Eastern European (Kuitto, 2011), along with the Baltic States, Bulgaria, Poland and Slovakia
Responses to poverty: social policy in Romania
Comprehensive welfare system in terms of organization and vulnerable groups covered
Public pensions predominant in social protection exp. – social insurance Bismarck-ian model; mandatory private pensions (2008)ș; private pensions less present (260,000 in 2011)
Universal benefits/services reduced (education, child allowance)
Health social insurances
Mainly cash transfers, but small value
Many changes…
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Social policy for the poorMinimum income guaranteed (MIG)
Family allowances means-tested
Heating subsidy/aid
Benefits for people with disabilities
Food allowance for people living with HIV/AIDS
”Social Scholarships” for poor students
Cash for high school
Social canteen/free meal
Funerals aid
Health insurance for those receiving MIG
Emergency aid
Refundable Aid for refugees
… No official poverty line
Minimum income guaranteed Means-tested
Thresholds depending on number of persons 1-5, more than 5 flat-rate amount (for 1 person 18% of minimum wage, 8% of average net wage)
Social inquiry report/form
Personal assets and ”products” (e.g. animals, land, car, jewelries, etc.) taken into consideration
Paid by city hall from the central and local budget
Work required from those able for public interest services (e.g. paint trees)
15% increase on amount paid if legally employed
Amount for 1 person: 28 euro/37 USD
12% fraud in 2010
Absolute poverty by age group, 2007-2010
children and youth most affected
Levels of various benefits and indices
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Social services
Persons with social assistance responsibilities (in rural areas) – average 1 person/administrative unit
Public social assistance services at local level (cities until end 2011) – av. 25/unit
At county level/Bucharest districts level – specialized services
0.9% of GDP on social services (Kuitto, 2011)
Types of services for the poor
Vocational counseling/training courses from public employment agencies
Day care for children from poor families
Boarding schools for children
Health care services/insurance
Material help provided by local authorities and NGOs
Recent changes2010 – 20 bln. Bailout (IMF, WB, EU)
July 25% cuts in public services wages (in 2011 regain 15%) + bonuses+ reduced employees
15% cuts in some social benefits
2011 – new social work/assistance law & Strategy (2011-2013)Increased conditionalitiesReduce costsImprove coordination/administration between measuresIncreased role of social workers
Since Monday May 7th a new Government (Social democrats + liberals)…
Conclusion
Romanian social policies are still looking for an identity
Toward minimalist welfare state/US?
Services for the poor underdeveloped
Poverty & material deprivation – present; 2020 target 580,000 less poor
Trend - more targeting and blaming of the poor…
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Thank you for your attention!
Contact:
References Cantillon, B. (2011) The paradox of the social investment state: growth, employment and poverty in the Lisbon era, Journal of European Social Policy, 21: 432-449
Deacon, B. (1993) Developments in East European Social Policy. Jones, C., New Perspectives on the Welfare State in Europe, London, Routledge.
Kuitto, K. (2011) More than just money: Patterns of disaggregated welfare expenditure in the enlarged Europe. Journal of European Social Policy, 21: 348-364
Lazar, F. (2000) Statul bunastarii din Romania in cautarea identitatii (Romanian welfare state looking for an identity), Calitatea Vieții, no.1-4, 7-37.
Preda, M. (2002) Politica sociala romaneasca intre saracie si globalizare (Romanian social policy between poverty and globalization), Iasi, Polirom.
Preda, M; Buzducea, D.; Fărcăşanu, D.; Grigoraş, V; Lazăr, F. Rentea, G-C. (2011) Analiza situației copilului din Romania (Analysis of the situation of the child in Romania), UNICEF Romania, forthcoming.
Eurostat database for statistics
Social legislation
