1393-EUROP(Cover)

Report 2001

REPORT ON POVERTY IN EUROPE REPORT ON POVERTY IN EUROPE ON POVERTY REPORT

Caritas Europa, aisbl

4 rue De Pascale 1040 Bruxelles Belgique Tel. 00 32 2 280 02 80 Fax 00 32 2 280 16 58 [email protected] www.caritas-europa.org Report 2001 Report 2001

Report on Poverty in Europe Ackowledgements

The organisation of the first Caritas Europa Report on Poverty in Europe would not have been possible without the active involvement of Caritas Europa Member Organisations and many colleagues working in their Social Policy Departments. However the Report would not have come into being without the vision of Hermann Icking.

Caritas Europa is particularly grateful for the informative, analytical and expert collaboration of Rebecca Weaver and Eileen Sudworth. Rebecca provided us with in-depth analysis of the statistical indicators and data: her expertise was fundamental in order to identify common denominators in the statistical matrices of the tables and the graphic of the report. Thanks to her high quality editorial skills, Eileen revised the original text and helped us through in pulling the different chapters together.

We are especially indebted to the Imprimerie Les Editions Européennes who, with great skill and patience, designed the book for printing. Special thanks to Jacqueline Tordoir and Tony Hardiment in the Caritas Europa General Secretariat in Brussels who contributed to check the information of the report in relation to their own areas of competence.

We express our gratitude to Caritas Armenia, Caritas Austria, Caritas Bosnia-Herzegovina, Caritas Estonia, Caritas France, Caritas Ukraine, Caritas Switzerland who contributed the photos for this publication.

We hope that the report serves as background information and as a working document for the many programmes and projects related to poverty undertaken by Caritas Europa member organisations and other international and non-governmental organisations.

Brussels, 1 February 2002 Bruno Kapfer (Acting Secretary General) Maria Francesca Vencato (Social Policy Officer) Tables of contents

■ Executive Summary 10 Introduction and Context 10 Definition of Poverty 11 The Countries covered in this Report 12 The Statistical Survey - Demographics, Education and Development 13 The Perspective of the Different National Caritas Organisations 16 Conclusions and Recommendations 20

■ Introduction 23 Caritas Europa and Poverty 27 Methodology 28 ■ Demographics, Education and Development 30 Introduction 30 Demography 37 Overview 37 Group 1: The European Union Plus 37 Group 2: The Accession Countries 38 Group 3: Non-Accession Countries 39 Group 1 Compared To Group 2 40 Group 1 Compared To Group 3 40 Group 2 Compared To Group 3 40 Education & Development 41 Overview 41 Group 1: European Union Plus 41 Group 2: The Accession Candidates 43 Group 3: Non-Accession Countries 44 Group 1 Compared To Group 2 45 Group 1 Compared To Group 3 46 Group 2 Compared To Group 3 46

■ Group 1: EU plus Countries European Union Countries 47

Austria 48 Overview 48 Demographics 48 Education & Development 48 The Caritas Austria Perspective 48

Belgium 49 Overview 49 Demographics 49 Education & Development 49 The Caritas Belgium Perspective 50

Denmark 50 Overview 50 Demographics 50 Education & Development 51 The Caritas Denmark Perspective 51 Finland 51 Overview 51 Demographics 51 Education & Development 51 The Caritas Finland Perspective 52

France 52 Overview 52 Demographics 52 Education & Development 53 The Caritas France Perspective 53

Germany 53 Overview 53 Demographics 53 Education & Development 54 The Caritas Germany Perspective 54

Greece 54 Overview 54 Demographics 54 Education & Development 54 The Caritas Greece Perspective 55

Ireland 55 Overview 55 Demographics 55 Education & Development 55 The Caritas Ireland Perspective 56

Italy 57 Overview 57 Demographics 57 Education & Development 57 The Caritas Italy Perspective 57

Luxembourg 58 Overview 58 Demographics 58 Education & Development 58 The Caritas Luxembourg Perspective 58

The Netherlands 59 Overview 59 Demographics 59 Education & Development 59 The Netherlands Caritas Perspective 59

Portugal 59 Overview 59 Demographics 59 Education & Development 60 The Caritas Portugal Perspective 60

Spain 60 Overview 60 Demographics 60 Education & Development 60 The Caritas Spain Perspective 61 Sweden 61 Overview 61 Demographics 61 Education & Development 62 The Caritas Sweden Perspective 62

United kingdom 62 Overview 62 Demographics 62 Education & Development 63 The Caritas of England and Wales Perspective 63 The Caritas Scotland Perspective 63

Andorra 64 The Caritas Andorra Perspective 64

Iceland 64 Overview 64 Demographics 65 Education & Development 65

Malta 65 Overview 65 Demographics 65 Education & Development 65 The Caritas Malta Perspective 66

Monaco 66

Norway 66 Overview 66 Demographics 66 Education & Development 66 The Caritas Norway Perspective 67

Switzerland 67 Overview 67 Demographics 67 Education & Development 68 The Caritas Switzerland Perspective 68

■ Group 2: EU Accession Countries 69

Bulgaria 70 Overview 70 Demographics 70 Education & Development 70 The Caritas Bulgaria Perspective 70

Czech republic 71 Overview 71 Demographics 71 Education & Development 71 The Caritas Czech Perspective 71

Estonia 71 Overview 71 Demographics 71 Education & Development 72 The Caritas Estonia Perspective 72 Hungary 72 Overview 72 Demographics 72 Education & Development 73 The Caritas Hungary Perspective 73

Latvia 73 Overview 73 Demographics 73 Education & Development 74 The Caritas Latvia Perspective 74

Lithuania 74 Overview 74 Demographics 74 Education & Development 75 The Caritas Lithuania Perspective 75

Poland 75 Overview 75 Demographics 75 Education & Development 75 The Caritas Poland Perspective 76

Romania 76 Overview 76 Demographics 76 Education & Development 76 The Caritas Romania Perspective 77

Slovakia 77 Overview 77 Demographics 77 Education & Development 78 The Caritas Slovakia Perspective 78

Slovenia 78 Overview 78 Demographics 78 Education & Development 79 The Caritas Slovenia Perspective 79

Turkey 79 Overview 79 Demographics 79 Education & Development 80 The Caritas Turkey Perspective 80

■ Group 3: Non-Accession Countries 81

Albania 82 Overview 82 Demographics 82 Education & Development 82 The Caritas Albania Perspective 82

Armenia 83 Overview 83 Demographics 83 Education & Development 83 The Caritas Armenia Perspective 83 Belarus 84 Overview 84 Demographics 84 Education & Development 84 The Caritas Belarus Perspective 85

Bosnia-Herzegovina 85 Overview 85 Education & Development 85 The Caritas Bosnia-Herzogovena Perspective 85

Croatia 86 Overview 86 Demographics 86 Education & Development 86 The Caritas Croatia Perspective 86

Georgia 87 Overview 87 Demographics 87 Education & Development 87 The Caritas Georgia Perspective 87

Macedonia 88 Overview 88 Demographics 88 Education & Development 88

Moldova 89 Overview 89 Demographics 89 Education & Development 89 The Caritas Moldava Perspective 89

Russian Federation 90 Overview 90 Demographics 90 Education & Development 90 The Russian Federation Caritas Perspective 91

Ukraine 92 Overview 92 Demographics 92 Education & Development 93 The Caritas Ukraine Perspective 93

Yugoslavia, Fr (Ser./Mont.) 93 Overview 93 Demographics 94 Education & Development 94 The Caritas Yugoslavia Perspective 94

■ Conclusions and Policy Recommendations 95

■ Caritas Europa Member Organizations 102

■ Bibliography 106 8 Preface

There are many poor people in all European ■ On old-age policy: home care, right to services countries. The marginalisation of women and the particularly in Central and Eastern Europe discrimination to which they are subjected are ■ On relations between the European Union and aggravating their situation nearly everywhere. the countries of Central and Eastern Europe: Policies vary widely: for instance, Greece, Armenia development of solidarity and the mechanisms of and Turkey devote 2 to 3% of the Gross National the structural funds, development of economic Product to education, Sweden and Poland 8% and exchanges, support for countries which will not Moldavia 11%! be joining the Union, cooperation with the civil Faced with such diversities detailed in the “Poverty society and NGOs. Report” and the painful situations encountered throughout the European continent, Caritas Europa has conducted a statistical and descriptive study of The European countries have undertaken commitments the human condition thanks to the contributions of its on the social front. Article 14 of the European Social members in 44 countries. Charter of the Council of Europe, Turin 10 October 1961, stipulates that the Contracting parties Six segments of the population draw particular undertake “to promote or provide services which, by attention: using methods of social work, would contribute to the ■ The unemployed, whether long-term or on welfare and development of both individuals and insufficient benefit groups in the community, and to their adjustment and ■ Persons who are working but are poorly paid or social environment; (and) to encourage the are in a precarious situation, the now famous participation of individuals and voluntary or other "working poor" organisations in the establishment and maintenance ■ Single parents and large families of such services”. ■ The elderly The Preamble of the Charter of Fundamental Rights ■ Asylum seekers and migrants of the European Union, Nice 7 December 2000, ■ Minorities declares that: "Conscious of its spiritual and moral heritage, the Union is founded on the indivisible, Major recommendations emerge which will be universal values of human dignity, freedom, equality developed by Caritas Europa and its members this and solidarity". year both with the authorities of the European Union and of the fifteen Member States and all the other This "Report on Poverty" of Caritas Europa is European countries. They concern accordingly both intended to make a positive contribution to the the citizens of the European countries and migrants analysis of situations and resolution of problems. A living there under one or another capacity: vast European network of autonomous members ■ On employment: access to work, minimum committed to social and medical work, emergency wage, fight against discrimination and development at world level, Caritas Europa ■ On family policy: financial support for the undertakes to contribute to the well-being and the education of the children and education systems general interest, in the service of the most that take particular account of the situation of underprivileged of our brothers and sisters and families in difficulties together with them.

Denis Viénot President, Caritas Europa

2 January 2002

9 Executive Summary

This report on Poverty in Europe is the first of its kind The report on Poverty in Europe has been compiled produced by Caritas Europa. Caritas Europa, with using a) poverty and poverty related statistics and member organisations in 43 countries of Europe, is statistical analysis commissioned by Caritas Europa1; one of seven regions of Caritas Internationalis, a b) contributions from the different Caritas member Catholic confederation headquartered in the Vatican. organisations throughout Europe. This confederation is a network of 154 autonomous national Catholic relief, development and social work organisations in 198 countries and territories throughout the world.

■ Introduction and Context

There is today an international consensus that the of every 275 persons on Earth." This was prior to reduction and eventual eradication of poverty the current 'war against terrorism' and the bom- represents one of the most serious and urgent bings of Afghanistan, following the September economic and ethical challenges of the 21st century. In 11 2001 atrocities in the United States. the currently rapidly changing world order, it is recognised that poverty is a multidimensional problem ■ The accelerated globalisation process which, and one which impacts on every area of life - from whilst expected to produce overall gains, has individual well-being and dignity to policies at the resulted in growing inequity both between macro level relating to economics, politics, social countries and within countries. Despite economic benefits systems, freedom and security. Momentous growth, as the United Nations Development upheavals in recent years have irrevocably changed the Programme points out, in the OECD (Organisa- global geopolitical landscape and have prompted a tion for Economic Cooperation and Development) rethinking of many of the precepts of conventional countries (its 30 member countries are the richest economic wisdom, not least of which is the in the world and include all 15 current EU acknowledgement of the complexity of poverty. This Member States and the Czech Republic, Hungary, matrix of changes can briefly be summarised as follows: Iceland, Norway, Poland, Slovakia, Switzerland and Turkey), 130 million people are income poor, ■ The geopolitical repercussions of the collapse of 34 million are unemployed and adult functional the Soviet Union/Eastern bloc which has, inter illiteracy rates average 15%. alia, resulted in the emergence of over 150 million "new poor" and has prompted a ■ The globalisation process has also brought with it redrawing of the development map. a heightened awareness of new forms of global interdependency in areas such as HIV/AIDS2, ■ The failure of the anticipated 'peace dividend' to migration, trafficking girls and women3, global materialise and an increase in conflicts in the security, drug trafficking4 and international world - including in Eastern Europe. Death and terrorism. This latter was brought home to the devastation has been accompanied by a massive world community by the terrorist atrocities in the increase in the number of refugees, internally United States of September 11, 2001 which displaced persons, asylum seekers and migrants. brought with it such tragic loss of life. These At the start of 2001, the United Nations High events and the subsequent 'war against Commissioner for Refugees (UNHCR) estimated terrorism' have fundamentally altered perceptions that "At the start of 2001, the number of people of national security and, ultimately, the role of the of concern to UNHCR was 21.8 million, or one out nation State in the new world order.

1 The statistics are drawn for the most part from the United Nations Development Programme, EUROSTAT, the World Bank. 2 The UNDP in its Human Development Report 2001 states that, by the end of the year 2000, 36 million people were living with HIV/AIDS 10 3 The UNDP cited above quotes a figure of 1.8 million women and girls victims of illegal trafficking. 4 The UNDP report cited above notes that, in 1995, the illegal drug trade was estimated at US $400 billion. ■ The globalisation process has also brought with it ■ This same period has seen increased European a heightened awareness of new forms of global integration - with the creation of the European interdependency in areas such as HIV/AIDS5, Union in the Treaty of Maastricht and the launch migration, trafficking girls and women6, global on 1 January 1999 of the European Monetary security, drug trafficking7 and international Union (with the EURO coming into effect on terrorism. January 1 2002) - and negotiations for enlargement of the Union. Thirteen countries currently have ■ Linked to this was the spate of international association agreements with the European Union conferences in the 1990s, all of which brought and have applied for accession (c.f. Table below). with them a heightened awareness of the The front-runners on the European adhesion list complexity of poverty and sustainable develop- are Poland, Hungary, the Czech Republic, Estonia, ment and of the inter-relatedness of poverty, Slovenia and Cyprus. The other accession population, human rights, health and gender countries are: Bulgaria, Latvia, Lithuania, Malta, issues. Romania, Slovakia and Turkey.

■ Definition of Poverty

Inspired by the Gospels and Catholic Social Teaching, which is based not solely on income, as hitherto, but Caritas Europa has a holistic, human-centred includes basic needs, basic human rights and such approach to development. The human person - and intangibles as vulnerability, risk, inequality, the quality of his/her life - is at the centre of the marginalisation, discrimination, exclusion, feelings of Caritas approach. This is very much in line with the powerlessness, the circumscribing of options and current international thinking which sees poverty as a choices. For example, the EU's development policy8 multi-dimensional, multi-faceted phenomenon and includes the following definition of poverty:

"Poverty is defined not simply as the lack of income and financial resources but also as encompassing the notion of vulnerability and such factors as no access to adequate food supplies, education and health, natural resources and drinking water, land, employment and credit facilities, information and political involvement, services and infrastructure. All of these are needed to enable disadvantaged peoples to have control over their development, enjoy equality of opportunity and live in a safer environment. Community development policy must, therefore, support poverty reduction strategies which embrace these various dimensions and are aimed at consolidating the democratic process, peace and the prevention of conflict, the development of social policies, the integration of social and environmental aims in macro-economic reform programmes, respect for equality between men and women, the reform or introduction of an appropriate institutional framework, the strengthening of public and private sector capabilities and natural disaster preparedness."

This definition and the current global context is the starting point for this Caritas Europa report.

5 The UNDP states that, by the end of the year 2000, 36 million people were living with HIV/AIDS 6 The UNDP cited above quotes a figure of 1.8 million women and girls victims of illegal trafficking. 7 The UNDP report cited above notes that, in 1995, the illegal drug trade was estimated at US $400 billion. 11 8 The EU's Development Policy - Statement by the Council and the Commission, 31 January 2001 ■ The Countries covered in this Report

The membership of Caritas Europa ranges from tiny number 1 in the world, to Moldova, with an HDI countries such as Monaco, with a population of ranking of 98. In terms of the World Bank 33,000 to the Russian Federation, home to 146.2 classification based on income aggregates, adopted million people. The countries in which Caritas Europa as of July 1 2000, Caritas Europa includes members in has members include those with a high Human the high, middle and low income aggregate brackets, Development Index (HDI)9 and those with medium as the following table (information was obtained from HDIs, as defined by the United Nations Development that in the UNDP Human Development Report 2001) Programme (UNDP): ranging from Norway, ranked shows:

Classification of Countries by Income Aggregates

HIGH INCOME MIDDLE INCOME LOW INCOME GNP per capita of $9,266 GNP per capita of $756 GNP per capita of $755 or more in 1999 to $9,265 in 1999 or less in 1999

■ Austria ■ Albania ■ Armenia ■ Belgium ■ Belarus ■ Georgia ■ Denmark ■ Bulgaria ■ Moldova ■ Finland ■ Croatia ■ Ukraine ■ France ■ Czech Republic ■ Germany ■ Estonia ■ Greece ■ Hungary ■ Iceland ■ Latvia ■ Ireland ■ Lithuania ■ Italy ■ Macedonia ■ Luxembourg ■ Malta ■ Netherlands ■ Poland ■ Norway ■ Romania ■ Portugal ■ Russian Federation ■ Slovenia ■ Slovakia ■ Spain ■ Turkey ■ Sweden ■ Switzerland ■ United Kingdom

Based on the World Bank income aggregates, the The above table does not include countries, where countries involved in Caritas Europa range from Caritas Europa has members, which are currently Germany, with a gross national income (in US $ not featured in the UNDP Human Development Billions in 1999 figures) of 2,103.8 to Moldova, with a Report - Andorra, Bosnia-Herzegovina, Monaco and gross national income (in US $ Billions in 1999 figures) Yugoslavia. of 1.5. In per capita terms, the gross national income per capita, per year (in 1999 figures) was US $25, 620 In order to maximise clarity in such a diverse grouping in Germany and in Moldova US $41010. of countries, they have been divided roughly11 into

9 The Human Development Index - HDI - was developed by the United Nations Development Programme (UNDP) some years ago. The HDI is a composite index based on 3 indicators: a) longevity, as measured by life expectancy at birth; b) educational attainment, as measured by a combination of adult literacy (two-thirds weight) and the combined gross primary, secondary and tertiary enrolment ratio (one third weight); and, c) standard of living, as measured by Gross Domestic Product per capita (Purchasing Power Parity in $ US). 10 World Development Indicators 2001, the World Bank, April 2001, Washington DC. 12 11 The term "roughly" is used since, because Caritas Europa is not linked to any political structure or construct, there are a number of anomalies in the groupings : a) Caritas organisations correspond to national Catholic Bishop's Conferences. In ▼ three groupings: a) the European Union members Accession Countries) and c) those countries which at together with other richer western European present are not EU applicant countries. countries (Group 1 EU Plus); b) the countries which have applied for accession to the EU (Group 2 The groupings adopted are consequently as follows:

GROUP 1 GROUP 2 GROUP 3 European Union Plus Accession Countries Non-accession Countries

EU ■ Bulgaria ■ Albania ■ Austria ■ Czech Republic ■ Armenia ■ Belgium ■ Estonia ■ Belarus ■ Denmark ■ Hungary ■ Bosnia-Herzegovina ■ Finland ■ Latvia ■ Croatia ■ France ■ Lithuania ■ Georgia ■ Germany ■ Poland ■ Macedonia ■ Greece ■ Romania ■ Moldova ■ Ireland ■ Slovakia ■ Russian Federation ■ Italy ■ Slovenia ■ Ukraine ■ Luxembourg ■ Turkey ■ Yugoslavia FR ■ Netherlands ■ Portugal ■ Spain ■ Sweden ■ United Kingdom

NON-EU ■ Andorra ■ Iceland ■ Malta ■ Monaco ■ Norway ■ Switzerland

■ The Statistical Survey - Demographics, Education and Development

In line with the concept of human-centred between the sexes, income levels and gender-based development and the multi-dimensional nature of income disparities, unemployment, computer and poverty, the statistical survey has, as its starting point, internet usage, migrants and asylum seekers. Each investment in human and social capital. Thus the Group is analysed in turn and comparisons are made survey and analysis includes demographic data such between the three Groups. as life expectancy, population growth, urbanisation, health indicators - including HIV/AIDS, and public It is important to stress that specific aspects of a spending on health. It also goes on to cover public society should not be dealt with in isolation but, from spending on education, enrolment ratios - including a starting point of investment in human and social

the United Kingdom, there is a Bishops Conference for England and Wales and one for Scotland. The whole island of Ireland has one Bishops Conference. b) Although Cyprus is an EU accession country, it is not included in this report since, in Caritas Internationalis, this country belongs to the Middle East and North Africa Group. Conversely, Georgia, often regarded as part of Asia, is included in the Caritas Europa region. c) Some smaller countries - such as the principalities of Monaco and Andorra - are included in the study but are not included in the overall statistical analysis. d) two countries - Iceland and Monaco - were not in a position to make a contribution to this study. f) although Malta is an accession country, it has been included in Group 1 as a special case since it corresponds more 13 closely - politically and economically - to the countries in Group 1 rather than to the Group 2 Accession Countries. capital, should be seen as interrelated and mutually the poorest 20% sharing 10.4%. It should be reinforcing - either positively or negatively depending noted that the United Kingdom has less equity on how they are dealt with. For example, an than all of the accession countries except Turkey, undernourished or malnourished child living in where the richest 20% have 47.7% of the income poverty will be more prone to illness and less likely to and the poorest 20%, 5.8% of the income. The UK do well in terms of educational attainment. This in is also less equitable than some of the Group 3 turn leads to low paid jobs, intermittent jobs because countries: Belarus, Croatia, and Ukraine. In of ill health or unemployment. In its turn, this leads to Group 3, the highest inequity in income further and chronic poverty. And the child, once distribution is in the Russian Federation, where grown, is likely to produce children who start the the richest 20% have 53.7% of the income and vicious circle all over again. Conversely, to create a the poorest 20% a mere 4.4%. The most virtuous circle, investment in health and education equitable, in Group 3, is Belarus where the richest leads to a healthier, more skilled workforce, with 20% have 33.3% of the income and the poorest heightened earning capacity, higher social 20%, 11.4%. contribution, the ability to absorb new technology, and less chronic sickness. And, quite apart from ■ The feminisation of poverty can, in large part, be earnings' capacity, a healthier, more educated society seen in the gap between male and female offers greater opportunity and choice to its citizens earnings which exists in all the countries included for a fuller life and greater potential to realise each in the study. The UNDP gives estimates for the person's capabilities. year 1999 and in Purchasing Power Parity (PPP)12. In Group 1, on average, women earn 51.8% of From the statistical analysis, the following should be men's wages. The narrowest gap is in the United highlighted: Kingdom where women earn 71.5% of male income. It is the highest in Malta, where women ■ In Group 1, containing the EU Member States, earn only 27.7% of male income. This figure together with other richer western European represents the largest gap across all three countries, the percentage of the population Groups. In Group 2, women earn on average living in poverty (defined as half the average 60.73% of male salaries - a more equitable income) between 1987 and 1997, Italy, with average than for Group 1. The narrowest gap 14.2% and the United Kingdom, with 13.4% between male and female earnings is in Lithuania recorded the highest levels. Belgium and where women earn 67.11% of men's earnings and Finland, both with 5.2% recorded the lowest. the highest gap is Turkey with women's earnings Although many statistics on this are lacking for at 44.8% those of men. Group 3 has an average Group 2 and Group 3 countries, Italy and the of 59.70%. The narrowest gap is in Armenia United Kingdom have a greater percentage of where women earn 66.11% of male earnings. The people subsisting on half the median wage. This highest gaps are in the Ukraine (54.37%), is higher than that of the Czech Republic (2.3%), followed by Albania at 54.99%. Hungary (10.1%), Poland (11.6%), and Slovakia (2.1%). They are surpassed by the Russian ■ Long term unemployment (defined as unemploy- Federation, with 20.1% (UNDP 2001 Human ment lasting longer than 12 months) is highest in Development Report). Spain (8.1% of the workforce) and lowest in Norway, with 0.2% of the workforce. ■ As far as the equitable distribution of income is concerned, in the Group 1 (EU Plus countries), ■ According to available data, people lacking the United Kingdom is at the bottom of the functional literacy (in the 16 - 65 year old age league, with the richest 20% having 43% of the group) is a staggering 48% in Portugal. This is available income, and the poorest 20% sharing higher than the rates for the Czech Republic 6.6%. The first in the league table is Austria, with (15.7%), Hungary (33.8%), Poland (42.6%) and the richest 20% having 33.3% of the income and Slovenia (42.2%).

12 Purchasing Power Parity is the rate at which $1 has the same purchasing power over domestic GDP as the US dollar has 14 over US GDP. PPP rates allow a standard comparison of real price levels between countries. ■ The percentage of GNP spend on education (for highest in Sweden( 79.3 years) where the the years 1995-97) is, on average, 5.6% for Group number of doctors (311 per 100,000 people) and 1, 5.1% in Group 2 and 5.4% in Group 3. This share of GNP spent on public healthcare (6.7% of similarity between the Groups masks inequity GNP) is well above the average. In Group 2, between them. In Group 1, the highest Turkey has the lowest life expectancy at 69 years, expenditure is in Sweden (8.3% of GNP) and followed by Romania at 69.8. In Group 3, life Denmark (8.1% of GNP) to a low in Greece of expectancy is highest in Croatia (73.3 years) 3.1%. In Group 2, educational expenditure is where infant mortality is lowest (8 deaths per highest in Poland (7.5% of GNP) and Estonia 1,000) and where the share of GNP (8.1%) spent (7.2%) and is lowest in Turkey, at 2.2%. In Group on healthcare is the highest. The Russian 3, expenditure ranges from a high of 10.6% in Federation has the lowest life expectancy (66.1 Moldova to a low of 2% in Armenia. years), followed by Moldova (66.6 years).

■ Literacy rates and educational expenditure are ■ Infant mortality is lowest in Group 1 with an obviously reflected in the use of information average of 4.9 deaths per 1,000 live births; technology, which is an essential feature of followed by Group 2 with 14.9 per 1,000 and globalisation. The number of personal computers Group 3 with 20.9 per 1,000. In Group 1, infant per thousand people averages, in Group 1, 297.3; mortality - at 6 per 1,000 live births - is highest in in Group 2, 88.1 and in Group 3 a very low Belgium, Greece, Ireland, Italy, Spain and the average of 22.8. Again, there are disparities United Kingdom. In Group 2, the highest by far within groups. Four countries - Switzerland, is Turkey, with a staggering 40 deaths per 1,000 Sweden, Norway and Ireland - have in excess of live births, compared to the Czech Republic and 400 computers per thousand people. The lowest Slovenia with the lowest infant mortality rates of numbers are in Greece (60.2) and Portugal (93). 5 deaths per live births. In Group 3, the highest In Group 2, the highest number per thousand is in is Albania (with 29 per 1,000), followed by Slovenia (251.4) and lowest in Turkey (33.8). Moldova (with 27 per 1,000). The lowest in this Group 3 ranges from a 'high' of 67 in Croatia to a Group is Croatia, with 8 deaths per 1,000 live births. low of 8 in Moldova. The numbers of internet users mirror this pattern. A certain amount of caution is needed where percentages are used (since Group 1 countries are ■ The probability at birth of not reaching 60 years richer than Group 2 who are in turn richer than Group old (as a percentage of the population between 3) and this, therefore, inevitably impacts on net worth the years 1995 and 2000) is, in the EU countries, e.g. whilst Group 3 spends a higher percentage of highest in Portugal (13.1%), followed by Denmark GNP on education than Group 2 and is only slightly at 12%. In the Russian Federation, this figure is lower than in Group 1, its GNP is much lower and the 30.1%, followed by Moldova (27.4%) and Ukraine net value diminishes accordingly. (26.3%). Nevertheless a picture of disparities in key indicators ■ Life expectancy in Group 1 averages 77.6 years, - both between the countries of Europe and within compared with 71.5 years in Group 2 (Accession them - clearly emerges. And much needs to be done Countries) and 70.4 years (Group 3, non to even out such disparities and create a more just Accession Countries. Life expectancy at birth is and equitable Europe.

15 ■ The Perspective of the Different National Caritas Organisations

Following the overall statistical survey and analysis, In addition to global economic slowdown, those the third section of the report, again organised countries involved in war and civil strife (particularly according to the three Groupings, gives a perspective Bosnia-Herzegovina and Yugoslavia) are experiencing of the different national Caritas organisations against particular turmoil and the need to reconstruct the backdrop of national statistical data. housing and basic infrastructure before there can be any hope of economic recovery. Whilst statistical data sketch an overall picture, particularly with regard to the glaring disparities It is also true to say that those countries whose between male and female earnings, what is less economies are "in transition" from a state-dominated obvious in any statistical analysis is the socialist system to a free market economy are interrelatedness of the different factors comprising experiencing poverty, in particular the emergence of the poverty matrix and the 'intangibles' such as the "new poor", with much greater difficulty than the discrimination, vulnerability marginalisation and social richer countries of western Europe. Economies in exclusion. This more sharply focused picture transition to liberalised market driven systems, emerges clearly from the contributions of the Caritas experience rapid privatisation, low productivity, high Europa member organisations and stems directly unemployment, poor wages, the 'disappearance' of from their work on the ground with the poorest and the middle classes, and wholly inadequate social most needy. Cold, hard facts reveal patterns and welfare systems. The development of the 'black trends and highlight disparities both between and economy' is particularly noted in countries such as the within countries. They do not - and cannot - reveal Russian Federation and the Ukraine. In Georgia, the depth of human pain misery experienced by where the appropriate environment was not created millions of people due to economic structural reform; prior to the liberalization of prices, the transition has civil strife and war; living on an island of poverty - as been especially difficult and lengthy and has led to a pensioner, a homeless person, one of the long term the drastic impoverishment of a socially unprotected unemployed, as a lone parent - amidst a sea of people. It is estimated that 35% of the population plenty; discrimination experienced by immigrants, are living below the poverty line. refugees, asylum seekers, and other minority groups in society. Poverty also appears to be particularly acute where there is mass migration from impoverished rural areas Despite the diversity of the countries included in this to urban areas in such countries as Albania and report, the existence of chronic poverty is a common Macedonia. Other "new poor" are those who work in denominator. And poverty, far from decreasing, has the State-maintained social sectors e.g. doctors, tended to rise in recent years. The general downturn teachers, civil servants. These comprise the "working in the global economy has had adverse effects on all poor" - employed, therefore unable to benefit from countries. The prospect of a renewed downturn and unemployment payments, yet poorly paid and with possible recession following the terrible events of their wages often in arrears. This is particularly acute September 11, 2001 in the United States, does not in the Russian Federation and the Ukraine. Yet this encourage optimism.

12 Purchasing Power Parity is the rate at which $1 has the same purchasing power over domestic GDP as the US dollar has 16 over US GDP. PPP rates allow a standard comparison of real price levels between countries. problem is not confined to eastern Europe. In France, the same year, among young people (aged for example, there are 1,820,000 "working poor" of between 15 and 24), 21.4% were unemployed. In whom 270,000 have jobs of fixed duration. In the Poland, high unemployment is coupled with an year 2,000, 50% of people aged 55-59 years were antiquated agricultural sector. In June 2001, unemployed. there were almost 3 million unemployed people in Poland. In Croatia, due to economic At the same time, there are common threads running restructuring, the unemployment rate is 24%. throughout the reports from the Caritas Europa member organisations. The poor are often the least ■ Low pay continues to be a feature of most well educated, have the lowest paid jobs or are economies, even those which have established a unemployed, have inadequate or no access to social legal minimum wage. In Switzerland, there were, services such as child care, health care and housing. in 1999, 414,000 households in the category of With regard to this latter, the lack of housing which is the "working poor". In Turkey, particularly among affordable for the poor or those on modest income is the poor in large cities, low wages play an common to a number of countries of Europe. At one important role in the fact that, in March 2001, end of the income scale, in the UK, a recent study by more than 1 million people in Istanbul are the Joseph Rowntree Foundation found that roughly effected by malnutrition. In the Russian 9.5 million people in Britain today cannot afford Federation and the Ukraine, low wages, coupled adequate housing conditions. In Moldova, at the with long delays in paying salaries, are resulting in other end of the income scale, in rural areas in a massive brain drain. The so-called 'budget particular, homes are not equipped with piped water sphere employees' (i.e. doctors, teachers) earn and sewage systems. Heating is non-existent. only 30 Euros a month. In Bulgaria, the average Highlighted below are the major categories of people wage in 2000 was 127 Euro a month (with a who either live in poverty (temporary or chronic) or minimum wage of 40 Euro). Even in Andorra - who are particularly vulnerable/at risk of chronic regarded as a fiscal paradise - government policy poverty. is one of keep labour costs low and reducing social benefits. This results in a highly vulnerable, The Unemployed unskilled workforce where job turnover is very high. ■ Every Caritas organisation points to the high levels of unemployment - particularly long term ■ Unemployment benefits are generally inadequate unemployment - as a key factor in the poverty and insufficient to protect the unemployed - matrix. This is often coupled with underemploy- particularly the long-term unemployed - from ment, low pay, job insecurity, inadequate poverty. In Belgium, the unemployment benefit unemployment benefits. This is also linked to represents only 27% of the average wage. In illiteracy or low educational and skills levels - Belarus the unemployment benefit is 30% of the inadequate to meet the exigencies of today's minimum wage. Even in Norway, with the highest rapidly developing technological world. And Human Development Index in the world and prominent among the unemployed are young certainly the show case in terms of social security people, the middle-aged and the disabled, benefits, it is noted that these extensive benefits physically or mentally. are geared to paid employment. Consequently, there is a level of poverty due to the lack of ■ High levels of unemployment are rife across access to paid employment e.g. through illness. Europe and are cited from Austria to the Ukraine. In Austria, for example, of the long-term ■ The unemployment situation has other adverse unemployed (defined as longer than 6 months), social effects - homelessness, alcoholism, drug 32% are threatened by poverty. In Finland, in addiction. Drug addition, particularly among 2000 the unemployment rate rose, as a result of young people who often see little hope for the the recession of the 1990, to 9.8%. 27.2% of the future, is on the increase - from Norway to unemployed are the long-term unemployed. In Slovakia. Alcoholism is also more prevalent

12 Purchasing Power Parity is the rate at which $1 has the same purchasing power over domestic GDP as the US dollar has 17 over US GDP. PPP rates allow a standard comparison of real price levels between countries. among the unemployed (and this, of course, The Elderly reduces or eradicates opportunities for employment). In Poland, for example, alcoholism ■ 17 countries14 highlight the elderly as being affects approximately l million people. Drug amongst the poorest sections of society. In Croatia, addiction and alcoholism, especially among for example, 40% of the poor live in households young people, is also noted in Slovakia. The where the head of the family is a retired person. In homeless face a similar vicious circle with regard Austria 26% of one-person households living on to gaining employment. In Austria, in 1999, for pensions are threatened by poverty. example, the homeless comprised some 2,000 people who visit stationary accommodation ■ Again, the state pension schemes are highly centres, approximately 12,000 people living on inadequate. In Belgium, for example, pensions the streets and at least 7,000 seeking shelter in represent 37% of the average wage. In Bulgaria, the accommodation facilities of immigrant and the average social pension is just 40 Euro and the refugee support centres. The homeless, sleeping minimum pension is 23 Euro. The Ukraine has an in doorways or on park benches, begging in the average pension of a mere 12 Euro. streets, are now an all too familiar sight in cities throughout Europe. ■ In a Europe of low or minus population growth rate, with rising life expectancy, the elderly form Lone Parents and larger families an increasing proportion of society. Countries - both the state and its citizens - have a duty to ■ Some 14 countries13 mention in particular the ensure that, after decades of economic plight of lone parents, particularly where the lone contribution, the elderly have the opportunity to parent is female. Lone parents (and the elderly) live full and meaningful lives. are the major categories of people who live below the poverty line in Luxembourg, for Asylum Seekers example, 12% of people live below the poverty line, calculated at 60% of the average wage. In ■ The numbers of asylum seekers or refugees Austria, 47% of lone parents with no income from hardly figure in the statistical survey - their gainful employment are threatened by poverty. numbers are too low to register meaningfully. And indeed, the number of asylum seekers as a ■ Similarly, families with more than 2 or 3 proportion of total refugees, is extremely low. dependent children feature among the poor. The United Nations High Commission for Refugees (UNHCR) reports that, at the start of ■ The problem is exacerbated by inadequate the year 2001, the number of people of concern benefits for lone parents coupled with the high to UNHCR was 21.8 million. These included 12 price and/or lack of access to child care facilities. million refugees (55%), 0.9 million asylum seekers (4%), 0.8 million returned refugees (4%), 6 million ■ Clearly the social system is geared to a concept internally displaced people (IDPs) of concern to of the family, with one breadwinner, usually male, UNHCR (27%), 0.4 million returned IDPs (2%) and and the partner arer of the children: This is an 1.7 million others of concern (8%). As can be outmoded one and needs to be brought in line seen from the above, the proportion of asylum, with the realities of the modern economy. Low seekers in this group of people of concern to pay, employment instability, inequity between UNHCR is relatively small - and is roughly equal to male and female earnings, inadequate provision the number of refugees who have returned to of affordable child care all conspire to place lone their countries. The vast majority of the refugee parent families or families with a larger than population are to be found in border countries. average number of dependent children at great At the end of the year 2000, Asia hosted the risk of chronic poverty. largest refugee population (44.6%), followed by Africa (30%), Europe (19.3%), North America (5.2%), Oceania (0.6%) Latin America and the Caribbean (0.3%)

13 Austria, France, Germany, Luxembourg, Netherlands, United Kingdom, Andorra, Latvia, Lithuania, Poland, Romania, Slovakia, Armenia, Belarus. 14 Austria, Belgium, Greece, Italy (particularly in the Centre and North), United Kingdom, Bulgaria, Estonia, Lithuania, Romania 18 (especially elderly rural women), Albania, Belarus, Bosnia, Croatia, Georgia, Macedonia and the Ukraine. ■ 9 countries15 highlighted the difficulties faced by ■ Similarly, Bosnia-Herzegovina is facing the heavy asylum seekers. It should be stressed that asylum consequences of war. Some 625,800 refugees seekers are people fleeing for their lives from war from Bosnia and Herzegovina are still scattered or persecution. Yet they all too often are confronted over 40 other states, while the country has with a hostile, highly bureaucratic system. If they accepted 40,000 refugees from Kosovo. Some succeed in jumping this hurdle, they often face 100,000 people emigrated after the Dayton discrimination in terms of employment and housing. Peace Accord (initialled on November 21 1995) because of unemployment, national intolerance, ■ In France, the situation of refugees is critical since and the inability to return to their homes. they are ineligible for official aid until their status is recognised by the administration. Even then, Migrants limited in terms of amount and duration e.g. 274.40 Euros for 12 months for an adult. In ■ Migrants are another group which are particularly Austria, their situation is acute if they fall outside prone to poverty. Often escaping poverty in their the federal social care and assistance programme. own countries or in search of better standards of If they do, they are not entitled to earn a living living for themselves and their families, they and end up living on the streets. In Germany, frequently find themselves discriminated against, asylum seekers, together with migrants, are in the in low paid employment or unemployed, living in high risk category of poverty and social exclusion. inadequate housing conditions. They tend to end up in low paid jobs which German nationals refuse to do. Minorities - the Roma people

■ Yugoslavia is facing a particularly acute situation ■ Europe remains characterised by unacceptable with regard to refugees and internally displaced forms of racism and xenophobia against people (IDPs). The great influx of non-Albanian minorities. Migrants are often encouraged by the people (Serbs, Montenegrins, Roma) from host country to meet particular labour shortages Kosovo, which started in June 1999, resulted in or to perform the jobs which nationals are some 200,000 internally displaced persons who reluctant to do. Ironically - and particularly during entered Serbia during the course of last summer. times of recession and high unemployment - they Among these refugees from Bosnia and Croatia, are often made scapegoats and accused of there are more than 500,000 located primarily in "stealing our jobs" and are greeted with hostility the northern part of the country. by the host population.

15 Austria, France, Germany, Portugal, Poland, Turkey, Armenia, Bosnia, Yugoslavia 19 16 Bulgaria, Hungary, Romania, Slovakia and Macedonia ■ In this regard, since it is featured in a number of and eastern Europe. Roma communities are most the contributions from eastern European numerous in Romania (between 1.8 to 2.5 million countries16, particular mention should be made of Roma people), Bulgaria (700,000 to 800,000), the Roma people (also known as Rom, Romani or Hungary (500,000-600,000), Slovakia (400,000 to Romany). Often falsely labelled "Gypsies", the 500,000) and the Czech Republic (250,000 to Roma are descendants of ancient warrior classes 300,000). Caritas Europa member agencies are of northern India who first made their appearance working with Roma people and Caritas Europa in Europe in the 15th century. Their rich history is has established a working group on this issue. marred by successive waves of discrimination, persecution, forced assimilation and enslavement. ■ In Bulgaria, Roma people fall into the category The best-known horror story is the attempt to that registers the highest unemployment, exterminate them by the Nazis. It is estimated illiteracy, low qualifications and high drop-out that some 600,000 Roma people lost their lives in rate from schools. In Hungary, over the last the Nazi pogroms. Statistics are hard to come by. decade, the Roma people have drifted towards Not surprisingly, given their history of the margins of society. The government is taking persecution, among the Roma, there is a school this on board, especially with regard to of thought which rejects any data gathering on education. In Slovakia, it is noted, the Roma the basis of ethnicity. Where there are substantial people's average life span is 15 years shorter than populations of Roma people, they tend to be the rest of the Slovak population. In Macedonia, among the poorest of the poor. Catherine 95% of the Roma population is unemployed and, Magnant of the European Commission's Human as a result, often live as squatters on communal Rights and Democratisation Unit, speaking at a property. They lack basic public services such as European Commission sponsored Caritas electricity, water and sanitation services. In Conference in October 199917, stated that there Romania, they are included in the category most are some 8 million Roma living in Europe, with the vulnerable to social and economic deprivation. vast majority (around 6 million) living in central

17 Enlargement and Civil Society, Proceedings of the European Commission-sponsored Caritas Conference, Brussels, October 20 1999. Available from Caritas Europa, 4 rue de Pascale, 1040 Bruxelles. ■ Conclusions and Recommendations

As this report has amply demonstrated, poverty is a The report goes on to make policy recommendations multi-dimensional, complex issue and therefore is not in the following fields: employment oriented amenable to simplistic solutions. A holistic approach activities; education and training; social protection; is necessary - not simply to alleviate poverty healthcare; housing; lone parent families and families (although this is a good in and of itself) - but to with more than 3 children; the elderly; asylum eradicate it from society. The elimination of poverty seekers; legally resident migrants; clandestine involves tackling the root causes and putting in place migrants and victims of trafficking; relations between a matrix of multi-sectoral approaches and the European Union and the countries of central and programmes. In developing such approaches and eastern Europe, both EU candidate and non- programmes, the centrality of the human person candidate countries. must be underscored. Thus, human dignity, equity, basic human needs and rights, participation, social In this Executive Summary, we would highlight the and political inclusion are all key concepts in this following four areas: approach. In the current enlargement process which seeks to embrace the associated countries of central Employment-oriented activities and eastern Europe, the European Council in Copenhagen (June 1993) developed the following Since unemployment has been identified as the key criteria18: factor in the poverty matrix, particular attention should be given to the unemployed, particularly the ■ The stability of institutions guaranteeing long-term unemployed. The promotion of job- democracy, the rule of law, human rights and oriented programmes, training and vocational respect for and protection of minorities (political courses would greatly facilitate the reintegration into criterion); the labour market of those in long term unemployment.. Initiatives need to be developed to ■ The existence of a functioning market economy improve infrastructures and create new jobs, placing as well as the capacity to cope with competitive particular emphasis to the fight against social pressure and market forces within the European exclusion. Union (economic criterion); Lone Parent Families and Families with ■ The ability to take on the obligations of more than three children membership including adherence to the aims of political, economic and monetary union (criterion There needs to be better harmony between the concerning adoption of the Community acquis. demands of family life and the exigencies of earning a living. In this respect, accessible and affordable As a grouping of relief, development and social work child-care facilities such as kindergartens and nursery organisations throughout Europe, Caritas Europa places need to be made available to low-income, places particular stress on the first of these criteria. disadvantaged groups. Childcare subsidies and Ensuring democracy (including political participation, childcare allowances are two important examples of the fostering of a vibrant civil society, social inclusion), good practice that would improve the participation in the rule of law, respect for human rights in their the labour market - both for parents with a larger than widest sense and respect for and protection of average number of dependent children and for lone minorities are of paramount importance in the parents. creation of a more just, more equitable European Union.

18 Enlargement: Preparing for Accession, European Commission. Last updated on May 14, 2001. 21 Website: http://europa.eu.int/scadplus/leg/en/lvb/e4000.htm. In this respect and as is the case for all other social Relation between the European Union services, it is fundamental to ensure that the and the Central and Eastern European necessary information should be readily accessible Countries (CEECs) and the procedure as simplified as possible. Such transparency of information would avoid current Stronger financial solidarity among the Member problems where those entitled fail to claim all their States of the European Union and the EU candidate due benefits, either because of ignorance concerning countries and the non-candidate countries of Europe entitlement or because of frustration related to the should be developed. procedure, and, as a result, fall below the socio- cultural minimum standard of living. The EU Member States should develop their commercial and cultural exchanges with the The Elderly candidate countries during the pre-accession phase and as part of the accession strategy. In relation to The old-age pension should allow a person without economic globalisation of the economy, within the any other income a reasonable standard of living. framework of world trade negotiations, the European Union in particular should ensure that the situation in central and eastern European countries is taken fully into account.

22 Introduction

There is today an international consensus that the ■ The accelerated globalisation process - reduction and eventual eradication of poverty particularly with regard to trade, investment and represents one of the most serious and urgent information technology. Whilst this ongoing economic and ethical challenges of the 21st century. In process is deemed to result in overall gains, there the currently rapidly changing world order, it is is, as the United Nations Development recognised that poverty is a multidimensional problem Programme has pointed out, a complex pattern and one which impacts on every area of life - from of winners and losers, with the poorest countries individual well-being and dignity to policies at the bearing the brunt of the losses. In addition, there macro level relating to economics, politics, social is growing inequity both between countries and benefits systems, freedom and security. Momentous within them. In the UNDP 1999 Human upheavals in recent years have irrevocably changed the Development Report20 on globalisation, it is global geopolitical landscape and have prompted a pointed out that "The income gap between the rethinking of many of the precepts of conventional fifth of the world's people living in the richest economic wisdom, not least of which is the countries and the fifth in the poorest was 74 to 1 acknowledgement of the complexity of poverty. This in 1997, up from 60 to 1 in 1990 and 30 to 1 in matrix of changes can briefly be summarised as follows: 1960". In its 2001 report states that "The richest 10% of the world's people received as much ■ The geopolitical repercussions of the collapse income as the poorest 57%". This stark reality, of the Soviet Union/Eastern bloc which has led, coupled with crippling debt and the global inter alia, to new development thinking on what financial crisis which began in the late 1990's in constitutes developed and developing countries - South East Asia led to a fundamental rethinking why should, for example, South Korea (with a of economic paradigms. In its 2001 Human Human Development Index (HDI)19 of 26) or Development Report, UNDP points out that, in Argentina (with an HDI ranking of 34) remain the countries belonging to the Organisation for classified as "developing" countries, whilst Economic Co-operation and Development (its 30 others, such as Albania (with an HDI ranking of member countries are the richest in the world and 85) or Moldova (with an HDI ranking of 98) not be include all 15 current EU Member States and the classified as such. The events in the Soviet Union Czech Republic, Hungary, Iceland, Norway, and Eastern bloc led to the emergence of the Poland, Slovakia, Switzerland and Turkey), 130 "new poor"- estimated as long ago as 1999 by million people are income poor, 34 million are the UN Secretary General as an additional 150 unemployed and adult functional illiteracy rates million people. average 15%.

■ Related to this is the failure of the 'peace ■ The globalisation process has also brought with it dividend' to materialise, not least because of a a heightened awareness of new forms of global sharp increase in conflicts in the world - in Africa interdependency in areas such as HIV/AIDS21, but also in Eastern Europe resulting in heavy migration, trafficking girls and women22, global expenditure on emergency aid and peace- security, drug trafficking23 and international keeping forces. These conflicts have resulted in terrorism. This latter was brought home to the unprecedented numbers of refugees, internally world community by the terrorist atrocities in the displaced persons and migrants. Prior to the United States of September 11 2001 which November 2001 bombing of Afghanistan, the brought with it such tragic loss of life. These UNHCR, in its latest information, states that "At events and the subsequent 'war against the start of 2001 the number of people of terrorism' have fundamentally altered concern to UNHCR was 21.8 million, or one out of perceptions of national security and, ultimately, every 275 persons on Earth." the role of the nation State in the new world

19 The Human Development Index - HDI - was developed by the United Nations Development Programme (UNDP) some years ago. The HDI is a composite index based on 3 indicators: a) longevity, as measured by life expectancy at birth; b) educational attainment, as measured by a combination of adult literacy (two-thirds weight) and the combined gross primary, secondary and tertiary enrolment ratio (one third weight); and, c) standard of living, as measured by Gross Domestic Product per capita (Purchasing Power Parity in $ US). 23 20

The Human Development report is published annually by the UNDP, New York. ▼ order. Speaking to the College of Europe in ■ Linked to this was the spate of international Bruges on enlargement on November 12 200124, conferences in the 1990s: The World Conference European Commission President, Romano Prodi, on Education for All (Jomtien, 1990); the UN said: "The terrorist attacks which struck the Conference on Environment and Development United States of America on the morning of 11 (Rio de Janeiro, June 1992); World Conference on September propelled the whole world into a new, Human Rights (Vienna, June 1993); International unknown and dangerous dimension. That Conference on Population and Development morning marked the real beginning of the (Cairo, September 1994); World Summit for twenty-first century." In addition, it has resulted Social Development (Copenhagen, March 1995); in a global economic slowdown and economic Fourth Conference on Women (Beijing, growth forecasts. On 15 November 2001, Paolo September 1995); Second UN Conference on Garonna, Acting Executive Secretary of the UN Human Settlements (Istanbul, June 1996). All of Economic Commission for Europe pointed out: which brought with them a heightened "The short-term economic outlook for the ECE awareness of the complexity of poverty and region, and indeed for the world economy as a sustainable development and of the inter- whole, has become exceptionally uncertain since relatedness of poverty, population, human rights, the terrorist attacks in New York and Washington health and gender issues. on 11 September. The current trends are pointing to a worst case scenario in which the ■ This same period has seen increased European simultaneous weakening of economic activity in integration - with the creation of the European the major economies, if allowed to continue, Union in the Treaty of Maastricht and the launch could push the global economy into deep on 1 January 1999 of the European Monetary recession." Particularly at risk from the current Union (with the EURO coming into effect on global downturn, he added, are those ECE January 1 2002) - and negotiations for countries with economies in transition, notably enlargement of the Union. Thirteen countries the countries of eastern Europe and the Baltic currently have association agreements with the area25. European Union and have applied for accession

21 The UNDP in its Human Development Report 2001 states that, by the end of the year 2000, 36 million people were living with HIV/AIDS 22 The UNDP cited above quotes a figure of 1.8 million women and girls victims of illegal trafficking. 23 The UNDP report cited above notes that, in 1995, the illegal drug trade was estimated at US $400 billion. 24 24 An Enlarged and More United Europe, A Global Player - Challenges and Opportunities in the new Century, speech by Romano Prodi, President of the European Commission, to the College of Europe, Bruges, 12 November 2001. ▼ (c.f. Table below). The front-runners on the million citizens. However, the European Union's European adhesion list are Poland, Hungary, the Gross Domestic Product (GDP) will grow by no Czech Republic, Estonia, Slovenia and Cyprus. more than 5%. As a result, the Community is The other accession countries are: Bulgaria, providing 21 billion Euro in pre-accession aid to Latvia, Lithuania, Malta, Romania, Slovakia and the Central and Eastern European countries for Turkey. And, as is demonstrated in this report, the period 2000-2006 (10.5 billion Euro through accession countries (with the exception of Malta) the PHARE programme, primarily for institution are generally considerably poorer than the building and investment financing; 3.5 billion current grouping of 15 countries. Indeed, the Euro in aid for agricultural development; and European Union, in its latest briefing, structural aid - primarily in the transport and Enlargement: Preparing for Accession (last environmental sectors - to the tune of 7 billion updated on 14 May 2001), points out that with Euro). The following table indicates the this first wave of accessions, the population of the accession countries, the date of their application European Union will be enlarged by 25% (or 100 to join the European Union and the date at which million people in these six countries) to 500 an Association Agreement was signed26.

Country Association Agreement Accession application signed on submitted on

■ Bulgaria 1-3-1993 13-12-1995 ■ Cyprus 19-12-1972 3-7-1990 ■ Czech Republic 6-10-1993 17-1-1996 ■ Estonia 12-6-1995 24-11-1995 ■ Hungary 16-12-1991 31-3-1994 ■ Latvia 12-6-1995 13-10-1995 ■ Lithuania 12-6-1995 8-12-1995 ■ Malta 5-12-1970 3-7-1990 ■ Poland 16-12-1991 5-4-1994 ■ Romania 8-2-1993 22-6-1995 ■ Slovakia 6-10-1993 27-6-1995 ■ Slovenia 10-6-1996 10-6-1996 ■ Turkey 12-9-1973 14-4-1987

25 United Nations Economic Commission for Europe, launching its Economic Survey of Europe, 2001 No 2, in press releases of November 15 2001 entitled: 2002 - Global economy needs a growth locomotive, and 2002 - Transition economies: considerable risks due to the global downturn. 26 Association Agreements have given an added boost to the already considerable trade between the accession countries and the European Union. The Association Agreements provide the legal framework for association 25 between the applicant countries and the European Union and cover their political and economic relations. The realities outlined above triggered a review of and the need not merely to alleviate poverty but to development thinking among theoreticians and embark on measures for its elimination. practitioners alike, including the European Union. Central to this thinking and the concomitant more In a seminal document, The EU's Development Policy holistic approach to complex issues was the - Statement by the Council and the Commission, of redefinition/clarification of the concept of poverty 31 January 2001, poverty is defined thus:

This approach is in line with the International includes concepts of vulnerability, risk, inequality, Development Targets (IDTs) established within the marginalisation, discrimination, exclusion, feelings of framework of the UN. In particular, these targets aim powerlessness, the circumscribing of options and - by the year 2015 - at halving the proportion of choices. It follows, therefore, that a holistic approach people on the planet who live in absolute poverty; at must, in addition to meeting basic human needs, give achieving universal primary education and eliminating equal focus to empowerment, inclusion, security, gender disparity in education; at reducing child equity, the expansion of options, and participation. mortality and at improving maternal health. All of the above represent both the context and the Thus there has been a paradigm shift from defining starting point from which Caritas Europa has poverty in purely economic terms to a greater prepared its first report on Poverty in Europe which, understanding of the complexity and the dynamic of it is envisaged, will be reviewed, updated and poverty. Whilst encompassing a basic needs/basic enhanced as a regular report to contribute to the rights approach, the new development thinking and poverty debate in general and poverty in Europe in the clarification of the definition of poverty also particular.

26 ■ Caritas Europa and Poverty

The inalienable dignity of the human person, the naked and give succour to those in distress. Moreover, eradication of poverty and the struggle for a just and Caritas organisations are inspired by the extensive equitable society are at the heart of the work of the body of Catholic Social Teachings, enshrined in Caritas organisations, both in their own countries and particular in papal encyclicals. As long ago as 1967, overseas. Underpinning all this work are the teachings Pope Paul VI stated in his encyclical, Populorum of the Gospels which stresses the duty to feed the Progressio (The Development of Peoples): hungry, to give shelter to those in need, to clothe the

"The struggle against destitution, though urgent and necessary, is not enough. It is a question, rather, of building a world where every man, no matter what his race, religion or nationality, can live a fully human life, freed from servitude imposed on him by other men or by natural forces over which he has not sufficient control; a world where freedom is not an empty word and where the poor man Lazarus can sit down at the same table with the rich man." (paragraph 47)

Elsewhere in the same document is the following:

"To speak of development, is in effect to show as much concern for social progress as for economic growth. It is not sufficient to increase overall wealth for it to be distributed equitably. It is not sufficient to promote technology to render the world a more human place in which to live….Economies and technology have no meaning except from the human person whom they should serve. And people are only truly human in as far as, masters of their own acts and judges of their worth, they are authors of their own advancement, in keeping with the nature given to them by their Creator." (paragraph 34)

This view of human centred development goes Solicitudo Rei Socialis (Social Concern), written by the hand-in-hand with the preferential option for the poor present Pope, John Paul II in 1987 states: and with the concept of solidarity. In his encyclical,

"Solidarity…is not a feeling of vague compassion or shallow distress at the misfortunes of so many people, both near and far. On the contrary, it is a firm and persevering determination to commit oneself to the common good; that is to say, to the good of all and of each individual, because we are really responsible for all." (paragraph 38)

In 1991, in Centesimus Annus (The Hundredth Year), Pope John Paul II underlines

"There are needs and common goods that cannot be satisfied by the market system. It is the task of the State and of all society to defend them. An idolatry of the market alone cannot do all that should be done." (paragraph 40)

27 The commitment to human-centred development, Summit for Social Development and to prepare the justice, equity and solidarity which are leitmotifs of next session of the UN Commission for Social Catholic social teaching are congruent with current Development, held a meeting in Costa Rica (June 11- thinking on "human capital". For example, the UN 13 2001) to discuss expenditures in the social sector as Expert Group, established as a follow up to the World a productive factor. The UN experts state:

"Because of its strong positive impact on the formation of human capital, spending on education and health are widely admitted as highly productive social investments. They contribute to the formation of a healthier and more educated human capital that can render productive labour, economic growth, and ultimately, a better and more equal society. However, social sector expenditure are broader than education and health alone and include other spending items such as food and income support programmes, labour-related spending, remedial and other services, and all-encompassing social protection. Often the positive impact of investment in these sectors may not be immediate, but nevertheless they are recognised as socially valuable and productive investments in the long-term. Social protection programmes provide a good illustration of this point. Among other goals, these programmes protect individuals against risk or deprivation deemed unacceptable in a specific country context. Social protection measures often represent a long-term commitment not only to help the less fortunate and most vulnerable but also to ensure development of the human potential of everyone to its highest. Seen in a broader context, social protection is obviously a productive investment, benefiting not only the immediate recipients but also society as a whole. There is a substantial cost to society when comprehensive social security systems are not in place, particularly in times of major social transformations and transitions."

■ Methodology

The present study is a combination of a) overall ■ Caritas organisations are set up by the respective statistics/poverty related indicators and their analysis national Bishops' Conference and correspond to (gleaned from official sources such as EUROSTAT, the them. In the United Kingdom, there are two European Union, the World Bank, the United Nations Bishops' Conferences and hence two Caritas Development Programme (UNDP), the United Nations organisations: one for England and Wales and High Commission for Refugees (UNHCR), the Central one for Scotland. The Bishops' Conference of Intelligence Agency Factbook and are listed in the Ireland is responsible for the whole of the island Bibliography); b) contributions from individual members i.e. both the Republic of Ireland and Northern of Caritas Europa who witness in their daily work the Ireland. Hence, the Caritas organisations do not fundamental meaning of poverty in their societies. correspond exactly to the existing political definition of the United Kingdom. In order to maximise clarity in such a diverse grouping of countries belonging to Caritas Europa, the ■ Similarly, although Cyprus is an EU accession countries have been divided into three groupings. country, it is not included in this study since it is These can be summarised as: Group One: European not a member of the Caritas Europa region. Union Member countries together with other richer Rather it is a member of Caritas Middle East and countries of western Europe; Group Two: the EU North Africa region. Conversely, Georgia, regarded accession countries; and Group Three: the non- often as part of Asia, is included in the Caritas accession countries. Because Caritas Europa is not Europa region. linked to any political structure or construct, there are inevitably certain anomalies in the categories ■ Some smaller countries - such as Monaco and selected and to which the reader's attention is drawn: Andorra - are included in the study although they

28 do not figure in the majority of official statistical have a distorting effect on data analysis and data. For these countries in particular information disproportionately affect the outcome. Indeed the has been taken from the CIA Factbook. The two European Union itself regards Malta as a specific principalities are not included in the statistical case different from the other applicant countries. analysis due to a dearth of information. The Commission's report, Enlargement: Preparing for Accession, cited earlier, acknowledges this and ■ Two member organisations were not in a position goes on to say: "The Commission's latest report on to assist with this report - Caritas Iceland and the progress made by Malta for accession indicates Caritas Monaco. It is, however, hoped that they that the country must continue its efforts in will participate in any future endeavour of this kind. implementing policies on equality of the sexes, the treatment of refugees and reform of the administra- ■ Although Malta is an accession country, it has been tion. The report highlights that the priorities of included in Group One as a special case. Malta Malta's accession partnership have for the most corresponds more closely - politically and econo- part been fulfilled. The most significant progress has mically - to the countries included in Group One been made in the fields of industrial policy, justice rather than those in the Group Two Accession and home affairs. Efforts should be maintained in Countries. Its inclusion in Group Two would thus the areas of State aid and the environment."

The Groupings selected are consequently as follows:

GROUP 1 GROUP 2 GROUP 3 European Union Plus Accession Countries Non-accession Countries

NON-EU ■ Andorra ■ Iceland ■ Malta ■ Monaco ■ Norway ■ Switzerland

The next section of this report will focus on an country-by-country, giving both statistical information overview of each of the three Groups and similarities and the perspective of the Caritas Europa member and divergences within and between them. The organisation in that country. This is followed by following three sections examine each Group conclusions and recommendations.

29 Demographics, Education and Development

■ Introduction

Caritas Europa commissioned a statistical survey and "Society and state need to afford protection analysis of all the countries, both in their Groups as against the nightmare of unemployment outlined earlier and as individual countries. Particular through economic policies that ensure attention focused on demographic information (life balanced growth and full employment or expectancy, population growth, urbanisation, health through unemployment insurance and indicators - including HIV/AIDS, public spending on retraining programmes" health care); education and development (public expenditure on education; enrolment ratios, Centesimus Annus including between the sexes; income levels and Pope John Paul II, 1991 gender-based income disparities; unemployment; computer and internet usage; migrants and asylum seekers;). Each Group is analysed in turn and experienced by millions of people due to economic comparisons are made between the Groups. structural reform; civil strife and war; living on an island of poverty - as a pensioner, a homeless person, Whilst a picture begins to emerge, particularly with one of the long term unemployed, as a lone parent - regard to the glaring disparities between male and amidst a sea of plenty; discrimination experienced by female earnings, what is less obvious in any statistical immigrants, refugees, asylum seekers, and other analysis is the interrelatedness of the different factors minority groups in our society. comprising the poverty matrix and the 'intangibles' such as discrimination, vulnerability marginalisation It is perhaps useful to highlight some of these issues and social exclusion. This more sharply focused at this juncture of the report and in the context of the picture emerges clearly from the contributions of the framework of new global landscape outlined in the Caritas Europa member organisations and stems Introduction. It is important to recall that specific directly from their work on the ground with the aspects of a society should not be dealt with in poorest and most needy. Cold, hard facts reveal isolation but, from a starting point of investment in patterns and trends and highlight disparities both human and social capital, should be seen as mutually between and within countries. They do not - and reinforcing - either positively or negatively depending cannot - reveal the depth of human pain misery on how they are dealt with.

30 Over the last few years, for example, the European Commission document, Health, HIV/AIDS, Population Union has been pursuing pro-poor strategies for and Poverty Reduction, published in February 2000, health, AIDS and population (HAP). In the European this interrelatedness is aptly outlined as follows:

"Investment in improved health status is widely accepted as a cornerstone of poverty reduction strategies. Better health is recognised as both a consequence and an engine for economic growth and, conversely, poor health is seen as both a consequence and a cause of poverty and inequality in opportunity and/or gender discrimination. The poor have the worst health indicators, the least access to quality services and joint financing, the highest fertility and the largest burden of infectious diseases. Thus, good health among the poorest is a desirable good in and of itself and should be explicitly recognised as such together with education, nutrition and GNP per capita. Moreover, investment in HAP programmes can act as a catalyst for development in general.

"At the same time, the importance of the wider determinants of better health and health distribution is well recognised. Poor and inadequate water supplies, food insecurity, lack of female education and the recognised link between health and gender, social exclusion, lack of access to information and services, HIV/AIDS, unsustainable population increase and environmental pollution have a detrimental effect on the health status of people in a given country. There is, therefore, a need to shift from the promotion of medical models of health to a more integrated and participatory human and social development approach."

In similar vein, the UN experts meeting in Costa Rica, as a productive factor (cited earlier). Speaking about 11-13 June 2001, on expenditures in the social sector education, the UN experts say:

"Human capital is a critical determinant of economic growth and development. Therefore, investing in social sectors such as education is extremely beneficial. Globally, spending in the education sector represents 5% of world GDP but it generates major multiplier effects in economic, social and cultural terms. It is hardly possible to imagine any society able to move forward without a well-developed education system and consistent budget allocations on education. Usually, a greater amount of educational attainment indicates more skilful workers, who in turn can increase both production of goods and services and social cohesion. Well-educated workers also facilitate the absorption of advanced technology that leads to productivity gains. In addition, the level and distribution of educational attainment has a strong impact on social outcomes, such as child mortality, fertility, education of children and income distribution."

As far as refugees and asylum seekers are returned IDPs (2%) and 1.7 million others of concern concerned, it will be seen from the statistical analysis (8%). As can be seen from the above, the proportion that their numbers are such a small percentage that of asylum, seekers in this group of people of concern they barely register. This should suggest that this to UNHCR is relatively small - and is roughly equal to issue is an extremely serious one and of the number of refugees who have returned to their unprecedented proportions. As the UNHCR 2001 countries. The vast majority of the refugee Factbook makes clear, at the start of the year 2001, population are to be found in border countries. At the number of people of concern to UNHCR was 21.8 the end of the year 2000, Asia hosted the largest million. These included 12 million refugees (55%), 0.9 refugee population (44.6%), followed by Africa (30%), million asylum seekers (4%), 0.8 million returned Europe (19.3%), North America (5.2%), Oceania refugees (4%), 6 million internally displaced people (0.6%) and Latin America and the Caribbean (0.3%). (IDPs) of concern to UNHCR (27%), 0.4 million

31 The following table shows the 10 largest groups of refugees - their country of origin and the main countries of asylum, together with figures:

Origin of Major Refugee Populations 10 Largest Groups*

Country of origin** Main Countries of Asylum Refugees

■ Afghanistan Pakistan/Iran 3,580,400 ■ Burundi Tanzania 568,000 ■ Iraq Iran 512,800 ■ Sudan Uganda, Democratic 490,400 Republic of Congo, Ethiopia, Kenya, Central African ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ Republic, Chad

■ Bosnia-Herzegovina ▼ Yugoslavia, Croatia, USA, ▼ 478,300 Sweden, Netherlands, Denmark ■ Somalia Kenya, Ethiopia, Yemen, 447,800 Djibouti ■ Angola Zambia, DRC, Namibia 432,700 ■ Sierra Leone Guinea, Liberia 400,800 ■ Eritrea Sudan 376,400 ▼ ■ Vietnam ▼ China, USA 370,300

* An estimated 3.8 million Palestinians who are covered by a separate mandate of the UN Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) are not included in this report. However, Palestinians outside the UNWRA area of operations such as those in Iraq or Libya, are considered to be the concern to UNHCR

** This table includes UNHCR estimates for nationalities in industrialized countries on the basis of recent refugee arrivals and asylum seeker recognition

Source: UNHCR 2001 Factbook

32 The table below shows the top ten countries where Germany receives the largest number of asylum refugees are/were seeking asylum in the year 2000 and requests, whilst Austria is currently ranked number ten. based on asylum applications. As will be seen,

Asylum Applications Submitted in Selected Countries in 2000

Country of Asylum Asylum Applications Main Countries of Origin

■ Germany 117,650 Yugoslavia, Turkey, Iraq, Afghanistan, Iran

■ United States 91,600 China, Haiti, Mexico, El Salvador, Somalia

■ United Kingdom 75,680 Iraq, Yugoslavia, Sri Lanka, Afghanistan, Iran

■ Netherlands 43,900 Afghanistan, Yugoslavia, Iraq, Iran, Turkey

■ Belgium 42,690 Yugoslavia, Russia, Iran, Albania, Kazakhstan

■ France 39,780 China, Turkey, Democratic Republic of Congo, Mali, Sri Lanka

■ Canada 34,250 Pakistan, Sri Lanka, Hungary, China, Argentina

■ Switzerland 32,430 Yugoslavia, Turkey, Bosnia- Herzegovina, Iraq, Sri Lanka

■ Australia 19,400 Iraq, Afghanistan, China, Indonesia, India ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼ ▼

■ Austria ▼ 18,280 ▼ Afghanistan, Iran, India, Iraq, Yugoslavia

Source: UNHCR 2001 Factbook

33 As is underscored in the statistical analysis and important factors in the overall picture of poverty in contributions from Caritas Europa member Europe. The following table, extrapolated from the organisations, low education attainment levels, long UNDP Human Development Report 2001, amply term unemployment and increasing numbers of illustrates this: people subsisting below the poverty line are

Probability People lacking Long-term at birth of functional unemploy- Human Poverty not surviving literacy % ment (as % of Country Index to 60 aged 16 - 65 labour force) % Population below income poverty line

50% of median $11 a day $4 a day income (1994 PPP) (1990 PPP) Rank Value % % 1995-2000 1994-1998 1998 1987-97 1994-95 1993-95

EU Plus

Austria " " 10,6 " 1,2 10,6 " " Belgium 13 12,5 10,5 18,4 5,5 5,2 " " Denmark 5 9,1 12 9,6 1,1 7,2 " " Finland 4 8,8 11,3 10,4 3 5,2 5 " France 8 11,1 11,4 " 4,5 8 10 " Germany 6 10,5 10,6 14,4 4,5 7,5 7 " Greece " " 9,4 " 5,9 " " " Iceland " " 8,7 """"" Ireland 16 15,3 10,4 22,6 5,6 11,1 " " Italy 12 12,3 9,1 " 7 14,2 " " Luxembourg 7 10,7 11,4 " 0,8 3,9 " " Malta " " 8,4 """"" Netherlands 3 8,5 9,2 10,5 1,4 8,1 7 " Norway 2 7,5 9,1 8,5 0,2 6,9 4 " Portugal " 13,1 48 1,9 " " " Spain 10 11,5 10,3 " 8,1 10,1 " " Sweden 1 6,8 8 7,5 2,8 6,6 6 " Switzerland " " 9,6 " 1,2 9,3 " " United Kingdom 15 15,1 9,9 21,8 1,8 13,4 16 "

Accession Countries

Bulgaria " " 18,8 """"15 Czech Republic " " 13,7 15,7 3,3 2,3 " <1 Estonia " " 23,8 """"37 Hungary " " 21,9 33,8 3,5 10,1 " 4 Latvia " " 23,7 """"22 Lithuania " " 21,6 """"30 Poland " " 17,5 42,6 4 11,6 " 20 Romania " " 21,6 """"59 Slovakia " " 16,6 " " 2,1 " <1 Slovenia " " 13,8 42,2 " " " <1 Turkey N/A

Other Countries

Albania " " 12,4 """"" Armenia " " 14,7 """"" Belarus " " 26 " " " 22 Bosnia-Herzegovina N/A Croatia " " 15,8 " " " Georgia " " 17,5 """"" Macedonia " " 14,5 """" Moldova " " 27,4 """"66 Russian Federation "" 30,1 " " 20,1 " 50 Ukraine " " 26,3 """"63 Yugoslavia N/A

UNDPHuman Poverty Index Chart

34 Also underscored is the increasing gap not only income and the poorest 20% having 10.4% of the between richer and poorer countries, but also within income. In Group 2, the EU Accession Countries, almost countries. Again using the UNDP Human Development all fare better than the United Kingdom. The one Report 2001, the following table shows the level of exception is Turkey at the bottom of the league with the equity within societies. In Group 1, European Union richest 20% accounting for 47.7% of consumption and Plus Group, the United Kingdom emerges as the worst the poorest 20% sharing 5.8%. In Group 3, the Non- in terms of an equitable share of resources, with the Accession Countries, the Russian Federation is at the richest 20% arrogating 43% of income whilst the poorest bottom of the league, closely followed by Armenia - the 20% share between them 6.6%, and Austria as the most richest 20% account for 53.7% and 50.6% respectively equitable, with the richest 20% having 33.3% of the and the poorest 20% share 4.4% and 5.5% respectively.

Survey based on Survey Income or Gini Country HDI Rank Year Consumption Share of Income or Consumption Index*

Poorest Poorest Richest Richest 10% 20% 20% 10%

EU Plus

Austria 16 1987 I 4,4 10,4 33,3 19,3 23,1 Belgium 5 1992 I 3,7 9,5 34,5 20,2 25 Denmark 15 1992 I 3,6 9,6 34,5 20,5 24,7 Finland 10 1991 I 4,2 10 35,8 21,6 25,6 France 13 1995 I 2,8 7,2 40,2 25,1 32,7 Germany 17 1994 I 3,3 8,2 38,5 23,7 30 Greece 23 1993 I 3 7,5 40,3 25,3 32,7 Iceland 7 """"""" Ireland 18 1987 I 2,5 6,7 42,9 27,4 35,9 Italy 20 1995 I 3,5 8,7 36,3 21,8 27,3 Luxembourg 12 1994 I 4 9,4 36,5 22 26,9 Malta 30 """"""" Netherlands 8 1994 I 2,8 7,3 40,1 25,1 32,6 Norway 1 1995 I 4,1 9,7 35,8 21,8 25,8 Portugal 28 94-95 1 3,1 7,3 43,4 28,4 35,6 Spain 21 1990 I 2,8 7,5 40,3 25,2 32,5 Sweden 4 1992 I 3,7 9,6 34,5 20,1 25 Switzerland 11 1992 1 2,6 6,9 40,3 25,2 33,1 United Kingdom 14 1991 I 2,6 6,6 43 27,3 36,1

Accession Countries

Bulgaria 57 1997 I 4,5 10,1 36,8 22,8 26,4 Czech Republic 33 1996 I 4,3 10,3 35,9 22,4 25,4 Estonia 44 1998 I 3 7 45,1 29,8 37,6 Hungary 36 1998 C 4,1 10 34,4 20,5 24,4 Latvia 50 1998 I 2,9 7,6 40,3 25,9 32,4 Lithuania 47 1996 C 3,1 7,8 40,3 25,6 32,4 Poland 38 1998 C 3,2 7,8 39,7 24,7 31,6 Romania 58 1994 I 3,7 8,9 37,3 22,7 28,2 Slovakia 35 1992 I 5,1 11,9 31,4 18,2 19,5 Slovenia 29 1998 I 3,9 9,1 37,7 23 28,4 Turkey 82 1994 C 2,3 5,8 47,7 32,3 41,5

Other Countries

Albania 85 """"""" Armenia 72 1996 C 2,3 5,5 50,6 35,2 44,4 Belarus 53 1998 C 5,1 11,4 33,3 20 21,7 Bosnia-Herzegovina " """"""" Croatia 46 1998 I 3,7 8,8 38 23,3 29 Georgia 76 1996 I 2,3 6,1 43,6 27,9 37,1 Macedonia 60 """"""" Moldova 98 1997 I 2,2 5,6 46,8 30,7 40,6 Russian Federation 55 1998 C 1,7 4,4 53,7 38,7 48,7 Ukraine 74 1999 C 3,7 8,8 37,8 23,2 29 Yugoslavia " """""""

UNDP-Inequity Chart 35 Caritas Europa member organisations also highlight people find themselves between Scylla and Charybdis - the plight of youth, with few opportunities for gainful whether to have food or whether to have heating in employment, and the elderly whose pensions are wintertime. wholly inadequate to meet basic needs so that elderly

Youth and Elderly as Percentage of Population

25 % 23 % 21 % 20 % 20 % 20 % 18 % 18 % 18 %

15 % 14 % 15 %

Group 1

10 % Group 2

Group 3 (Excluding Belarus, 5 % Macedonia and Moldava)

0 % % of population % of male population % of female population under age 15, 2001 aged 60+ 2001 aged 60+ 2001

Youth and Elderly Chart

Finally, a special word needs to be said about Where there are substantial populations of Roma discrimination on grounds of race, colour, creed, people, they tend to be among the poorest of the gender or sexual orientation. Discrimination - and poor. Catherine Magnant of the European indeed varying degrees of racism and xenophobia - Commission's Human Rights and Democratisation persist throughout Europe. Much has been written Unit, speaking at a European Commission sponsored about the "feminization" of poverty and this is Caritas Conference in October 199929, stated that particularly true of single mothers. Migrants, legal there are some 8 million Roma living in Europe, with and illegal, and ethnic minorities are dispro- the vast majority (around 6 million) living in central portionately represented among the poorest in our and eastern Europe. Roma communities are most society. They are often in the lowest paid jobs, are numerous in Romania (between 1.8 to 2.5 million frequently unemployed and often do not know their Roma people), Bulgaria (700,000 to 800,000), rights - if any - under the host country social security Hungary (500,000-600,000), Slovakia (400,000 to system. They are further marginalised by racism and 500,000) and the Czech Republic (250,000 to stereotyping, whether overt or covert. In this regard, 300,000). since it is featured in a number of the contributions from eastern European countries28, particular mention should be made of the Roma people (also known as Rom, Romani or Romany). Their rich history is marred by successive waves of discrimination, persecution, forced assimilation and enslavement.

28 Bulgaria, Hungary, Romania, Slovakia, and Macedonia. 36 29 Enlargement and Civil Society, Proceedings of the European Commission-sponsored Caritas Conference, Brussels, October 1999. Available from Caritas Europa, 4 rue de Pascale, 1040 Bruxelles. ■ Demography

Overview

In many respects, demographic trends in Group 2 probably due in part to higher standards of living in (accession countries) are closer to those in Group 3 Group 1, levels of health care expenditure also seem (former Soviet countries) than in Group 1 (the EU Plus to be significant: health care expenditure is 6.2% of Group). Group 1 is highly urbanised, with 78% of its GNP in Group 1, but only 5.0% and 4.5% in Groups 2 population living in urban areas compared with only and 3. It is also noticeable that those Group 2 and 65% of Group 2’s and 56% of Group 3’s populations. Group 3 countries with relatively high levels of health Moreover Group 1’s population is rising at an annual care expenditure tend to have better health rate of 0.2%, against declines of 0.2% and 0.3% in indicators than those with lower spending levels. On Groups 2 and 3 respectively. Life expectancy in the other hand, there seems to be much weaker Group 1 is 77.6 years, compared with 71.5 and 70.4 correlation within Group 1 between health care years, and infant mortality in Group 1 is only 5 per expenditure and health indicators. This suggests that, thousand, against 15 and 21 per thousand in Groups whereas excessively low health care expenditure 2 and 3 respectively. levels may be blamed for poor health indicators in some Group 2 and Group 3 countries, health care Thus, despite a higher incidence of HIV in their expenditure in most Group 1 countries may already populations, Group 1 countries have considerably be at a level above which health indicators are better overall health indicators. Although this is affected by other factors.

Group 1: The European Union Plus

Infant People People People People Annual Population Mortality Living Living Living Living Public Popula- (In % of LifeEx- Rate with with with with Physi- Health Total tion the total) pectancy (Per HIV/Aids HIV/Aids HIV/Aids HIV/Aids cians Percent Expen- Popula- Growth 1999 at Birth 1.000 1999 1999 1999 1999 (Per com- diture tion Rate (Years) live 100.000 pared (% of (Millions) 1999- 1995- births) Adult Women Women Children people) to GDP Country 1999 2015 2000 1999 (% age (age (% age (age 1990 average 1990-98 urban rural 15-49) 15-49) 15-49) 0-14) Austria 8,1 -0,2 65 35 77,7 4 0,23 2000 0,0500% <100 302 6104,3 5,8 Belgium 10,2 0 97 3 77,9 6 0,15 2600 0,0433% 300 395 7984,0 7,9 Denmark 5,3 0,1 85 15 75,9 4 0,17 900 0,0225% <100 290 5861,7 6,8 Finland 5,2 0 67 33 77,2 4 0,05 300 0,0075% <100 299 6043,6 5,2 France 59 0,3 75 25 78,1 5 0,44 35000 0,7000% 1 303 6124,5 7,3 Germany 82 -0,1 87 13 77,3 5 0,1 7400 0,1480% 500 350 7074,5 7,9 Greece 10,6 -0,1 60 40 78 6 0,16 1600 0,0267% <100 392 7923,4 4,7 Iceland 0,3 0,6 92 8 78,9 5 0,14 <100 0,0012% <100 326 6589,4 … Ireland 3,8 1 59 41 76,1 6 0,1 600 0,0100% 170 554 11197,9 4,7 Italy 57,5 -0,3 67 33 78,2 6 0,35 30000 0,5000% 700 219 4426,6 5,6 Luxembourg 0,4 1,1 91 9 77 5 0,16 - - 272 5497,9 5,4 Malta 0,4 0,4 90 10 77,6 6 0,12 - - 261 5275,5 … Netherlands 15,8 0,2 89 11 77,9 5 0,19 3000 0,0600% 100 251 5073,4 6 Norway 4,4 0,3 75 25 78,1 4 0,07 360 0,0090% <100 413 8347,9 7,4 Portugal 10 0 63 37 75,2 5 0,74 7000 0,1400% 500 312 6306,4 5,2 Spain 39,9 -0,1 77 23 78,1 6 0,58 25000 0,4167% <100 424 8570,2 5,4 Sweden 8,9 -0,2 83 17 79,3 3 0,08 800 0,0267% <100 311 6286,2 6,7 Switzerland 7,2 -0,2 68 32 78,6 3 0,46 5500 0,1833% <100 323 6528,7 7,6 United Kingdom 59,3 0,1 89 11 77,2 6 0,11 6700 0,1117% 500 164 3314,9 5,6

Average 0,2 77,8 22,2 77,6 4,9 0,23 0,1293% 324,3 6,2

*less than 0.01 - removed for calculation purposes

37 The 19 countries in Group 1 have populations ranging average on public health, has an above average from a high of 82 million (Germany) to a low of 0.3 million incidence of HIV in the population, and a relatively (Iceland). The median is Sweden, with a population of 8.9 low number of physicians per capita. Infant mortality million. Luxembourg, one of the smallest countries, has is highest in Greece (which ties with Ireland for last the highest population growth rate at 1.1% per annum, place in spending on healthcare) and lowest in while Italy, one of the largest with 57.5 million has the Switzerland, where spending on healthcare is well lowest annual growth rate of –0.3. In Belgium, which above average and the number of physicians per depends on its centralised location and excellent capita is about average. transport system to drive the economy, 97% of the population resides in urban areas, while Ireland, which is The number of physicians per capita is highest in still highly reliant on agriculture, has a population of Ireland, and perhaps helps to balance out the which only 59% reside in urban areas. country’s low level of spending on health care. It also has the lowest incidence of people living with HIV. In Life expectancy at birth is highest in Sweden where line with longstanding complaints about waiting lists the number of doctors and share of GNP spent on for health care, the UK has the lowest number of public healthcare is well above average. Portugal, at physicians of any Group 1 country. Public health 75.2 years, has the lowest rate of life expectancy. expenditure is highest in Germany, which ranks about Perhaps not coincidentally, it spends less than average on most of the health indicators.

Group 2: The Accession Countries

Average -0,3 65,1 34,9 71,5 14,9 000 0,0026% 281,9 5,0

*less than 0.01 - removed for calculation purposes

The 11 countries in Group 2 have populations ranging population resides in urban areas, while at the other from a high of 65.7 million (Turkey) to a low of 1.4 end of the spectrum Slovenia, which is highly reliant on million (Estonia). The median is Bulgaria, with a alpine tourism and agriculture, has a population of population of 8 million. Turkey is not only the largest which only 50% resides in urban areas. Life expectancy country in the Group but also has the highest at birth is highest in Slovenia where the infant mortality population growth rate at 1.2 per annum, while Estonia, rate is among the lowest in Group 2 (5 deaths per has the smallest population and the lowest annual 1,000) and the percentage of GNP spent on public growth rate of –1.1. In the Czech Republic, 75% of the healthcare is well above average for the Group.

38 Turkey, at 69.0 years, has the lowest of life aged 15 -49 are infected. The number of physicians expectancy, with Romania at 69.8 years a close per capita is highest in Lithuania (395 for every second. Turkey also has the highest infant mortality 100,000 people) with Hungary running a close rate in Group 2, spends the least on public health as second. Public health expenditure as a share of GNP a share of GNP and has proportionately the fewest is highest in the Czech Republic (6.7% compared to physicians; however, it does have the lowest an average of 5.0%); it ranks about average on most incidence of HIV (0.01%). Latvia has the highest of the health indicators. incidence of people living with HIV: 0.11% of people

Group 3: Non-Accession Countries

Average -0,2 66,6 44,3 70,4 20,9 000 314,1 4,5

*less than 0.01 - removed for calculation purposes

The 11 countries in Group 3 have populations ranging Moldova (66.6 years) a close second. The infant from a high of 146.2 million (Russia) to a low of 2 million mortality rate is highest in Albania (29 deaths per (Macedonia). The median is Croatia, with a population 1,000), which also has the fewest physicians (129 for of 4.7 million. Ukraine, which at 50 million has the every 100,000 people). Armenia, with 0.01% of people second largest population, also has the lowest annual living with HIV, has the lowest incidence of HIV in the growth rate of –0.9, whilst Albania, one of the smallest population; the Ukraine, which has 0.96% of people with 3.1 million, has the highest annual growth rate of aged 15 -49 living with HIV, has the highest. The 0.6%. Albania also has the highest rural population at number of physicians per capita is highest in Belarus 39%; on the other hand, 77% of the population in the (443 per 100,000) with Georgia (436 per 100,000) Russian Federation resides in urban areas. running a close second. There is a high degree of correlation between public health expenditure and Life expectancy at birth is highest in Croatia (73.3 health indicators: as indicated above, these are best in years), where the infant mortality rate (8 deaths per Croatia, which has high public health expenditure, and 1,000) is the lowest in Group 3 and the share of GNP worst in Albania, which has proportionately the lowest (8.1%) spent on public healthcare is also highest. Russia, level of public health expenditure. at 66.1 years, has the lowest life expectancy, with

39 Group 1 Compared To Group 2 is an average of 20.9 deaths per thousand against a Group 1 average of 4.9 deaths per thousand. Albania, at The median population sizes are roughly the same in 29 deaths per thousand, has the highest rate. The Group 1and 2 – around 8 million, though Group 1 has proportion of people living with HIV is slightly higher in several countries (Germany, France, UK, Italy) with Group 3 than Group 1 (although the Russian figure populations that exceed 50 million; in Group 2 Turkey is seems unlikely to be as low as the reported 0.18%). the only country with such a large population. Average Ukraine, with 0.96%, has a higher incidence of HIV population growth rate is lower in Group 2 (around –0.3 amongst adults than Portugal’s Group 1 high of 0.74%. compared to 0.2 for Group 1). The highest annual The number of physicians per 100,000 is only slighter population growth rates in the groups are similar: lower in Group 3 (314.1 per 100,000) than Group 1 Turkey’s is 1.2%, while Luxembourg’s is 1.1%. At the (324.3 per 100,000). However, this number includes other end of the scale Estonia’s –1.1% is substantially former Soviet Union countries where public services lower than Italy’s -0.3%. More of the Group 2 population have noticeably declined: consequently, health lives in rural areas than Group 1’s (34.9% as opposed to expenditure may be more accurate in measuring the 22.2%). Average life expectancy in Group 2 is provision of healthcare. At 4.5%, average health significantly lower than in Group 1: 71.5 years compared expenditure in Group 3 is significantly lower as a share to 77.6 years; Turkey’s Group 2 low of 69 years compares of GNP than in Group 1 (6.2%). However, Croatia (8.1%) to the low of 75.2 years in Group 1 (Portugal). and Moldova (6.4%) lead the way in this area. Likewise infant mortality rates are much higher in Group 2, though Turkey with an infant mortality rate of 40 Group 2 Compared To Group 3 deaths per 1,000 live births somewhat skews the average: without Turkey the Group 2 average is 12.4 The median population in Group 3 is much smaller than rather than 14.9 deaths per thousand. The proportion of Group 2: 4.7 million compared to 8 million, though people living with HIV is lower in Group 2 than Group 1. Group 3 includes Russia (146.2 million people and Latvia with 0.11% is the highest in Group 2: this is, Ukraine with 50 million) while in Group 2 Turkey is the however, far lower than the incidence in Portugal, which only country with a population of more than 50 million. In at 0.74% of the adult population has the highest both groups the average annual population growth rate incidence. The number of physicians per 100,000 is much is negative: around -0.3% in Group 2and -0.2 in Group 3. lower in Group 2, though again this number is slightly However, Group 2’s high of 1.2% (Turkey) is much higher skewed by Turkey, which at 121 physicians per 100,000 is than that of Albania (0.6%), which is the highest in Group about 100 physicians per thousand lower than the 3. Slightly less of Group 2’s population (65.1%) lives in nearest Group 2 country. Without Turkey, the Group 2 urban areas than Group 3 (66.6%); however, the latter average of 298 per 100,000 is much more in line with that figure would be much lower without Russia, where 77% of Group 1(324.3 per 100,000). Public health expenditure of the population lives in urban areas. Albania (39%) has in Group 2 at 5% of GDP is lower than that of Group 1 the lowest urban population in Group 3, well below (6.2%); again, Turkey, where health expenditure is only Slovenia, which at 50% has the lowest urban population 2.2% of GDP, distorts the Group 2 average. in Group 2. Life expectancy in Group 2 is slightly lower than Group 2: the average of 71.5 years in Group 2 is Group 1 Compared To Group 3 only slightly higher than the average of 70.4years in Group 3. Turkey’s Group 2 low of 69 years compares to The median population in Group 3 is much smaller than the low in Group 3 of 66.1 years in Russia. Though infant in Group 1: 4.7 million as compared to a Group 1 mortality rates are lower in Group 2 (14.9 per thousand, median of 8.9 million. (It should be noted that compared with 20.9 per thousand in Group 3, the rate of population figures for Yugoslavia and Bosnia 29 deaths per 1,000 in Albania is much lower than the 40 Herzegovina are unavailable.) Average annual per thousand reported in Turkey in Group 2. population growth is lower in Group 3: around -0.2%, compared with 0.2% in Group 1. The high of 0.6% The incidence of HIV is higher in Group 3 than Group 2, (Albania) is much lower than that of Luxembourg (1.1%), and Ukraine with the Group 3 high of 0.96% has a far and Ukraine’s –0.9% annual growth rate (the lowest in higher incidence than Latvia (Group 2’s highest), where Group 3) is substantially lower than Italy’s -0.3%. More of the incidence is 0.11%. The number of physicians per Group 3 countries’ peoples live in rural areas than Group 100,000 is significantly higher in Group 3 (314.1/100 1’s (44.2% as opposed to 22.2%). Life expectancy in 000) than Group 2 (281.9/100 000), though if Turkey is Group 3 is significantly lower than Group 1: the average excluded, the group averages are similar. At 4.5% of of 70.4 years in Group 2 compared to an average of 77.6 GDP, public health expenditure in Group 3 is only slightly years in Group 1. Russia’s low of 66.1 years compares to lower than that of Group 1 (6.2%). Georgia spends only a low in Group 1 of 75.2 years (Portugal). Likewise infant 0.5% of GDP on public health, much lower than Turkey mortality rates are much higher in Group 3, where there (Group 2’s lowest) which spends 2.2% of GDP on health.

40 ■ Education & Development

Overview

The educational and economic differences between incomes are in Group 1 countries, where on average the three groups of countries are more complex than men earn nearly twice as much as women. The their demographic trends. Group 1 countries tend to indicators that show the greatest hierarchy between have higher enrolment ratios, while Group 2 and the three groups are the numbers of computers per Group 3 are similar to each other. Likewise, Group 1 capita, the amount of internet use, and income levels has significantly more scientists and engineers per (particularly men’s income levels). In these respects, capita. On the other hand, the group average shares in Group 1’s averages are far ahead of Group 2’s, which GNP of public expenditure on education are much the in turn are significantly ahead of Group 3’s. The same (with much more variation between individual number of refugees as a proportion of total countries). Despite female enrolment ratios30 being populations is very low (typically less than one per ten higher than male enrolment ratios in all three groups, thousand) in most countries of every group, with only male incomes are higher in all three groups. The a few countries such as Germany and Armenia biggest differences between men’s and women’s reporting significantly more.

Group 1: The European Union Plus

Scientists and engineers Public Personal Combined primary, secondary in R&D Expenditure Computers Internet Internet and tertiary gross (Per million on Education (Per 1.000 Users Users as a Country enrolment ratio %1999 people) (As % of GNP) people) in Thousands percent of EU Plus 1987-97 1995-97 1999 1999 population Female Male

Austria 89 90 1,627 5,4 256,8 1,84 02 3% Belgium 111 107 2,272 3,1 315,2 1,4 01 4% Denmark 101 94 3,19 8,1 414 1,5 02 8% Finland 108 99 2,799 7,5 360,1 2,143 04 1% France 96 93 2,659 6 221,8 5,37 0 09% Germany 93 95 2,831 4,8 297 14,4 01 8% Greece 81 80 773 3,1 60,2 0,75 0 07% Iceland 91 86 … 5,4 … … Ireland 93 89 2,319 6 404,9 0,679 01 8% Italy 87 81 1,318 4,9 191,8 7 01 2% Luxembourg 74 71 … 4 … … Malta 79 82 … 5,1 … … Netherlands 100 104 2,219 5,1 359,9 3 01 9% Norway 99 95 3,664 7,7 446,6 2 04 5% Portugal 99 94 1,182 5,8 93 0,7 0 07% Spain 99 91 1,305 5 119,4 4,652 01 2% Sweden 107 95 3,826 8,3 451,4 3,666 04 1% Switzerland 81 87 3,006 5,4 461,9 1,427 02 0% United Kingdom 112 100 2,448 5,3 302,5 2,5 0 04%

Average 94,7 91,2 2.5 5,6 297,3 19,9% excluding Greece

Group 1’s women have a slightly higher enrolment ratio population is highest in Sweden (3.8/thousand) and than men on average: 94.7 for women compared to lowest in Portugal (1.2/thousand); the average is 91.2 for men. Belgium has the highest enrolment ratios, 2.5/thousand. Public expenditure on education is 111 for women and 107 for men. The lowest is in highest in Sweden (8.3% of GNP) and Greece and Luxembourg where it is 74 for women and 71 for men. Belgium tie for last place, with 3.1% of GNP. The Group The number of scientists and engineers as a share of the 1 average is 5.6% of GNP spent on education.

28 Enrolment ratios are the number of students enrolled in education, regardless of age, as a percentage of the population 41 of official school age i.e. enrolment ratios will therefore include adults returning to education. Unemployment (Per thousand) Unemployment (Per thousand) unemploy- Estimated earned 1998 Total 1999 Total ment income(PPP US$) gdp-real 1999 % female growth Country of male rate (%) EU Plus 2000 Female Male Total Female Male Total (CIA) Female Male Austria 76,6 88,4 165 65 76,6 146,7 0 05% 16,445 34,182 04 8 3,1 Belgium 204,7 179,3 384 196,6 179,4 375 0 08% 15,51 35,798 04 3 4,1 Denmark 155,309 86,855 68,45 - - - 0 05% 21,274 30,565 07 0 2,8 Finland 142 143 285 131 130 261 01 0% 18,405 28,023 06 6 5,6 France 1613,4 1436,7 3050,2 1607,7 1452,1 3059,7 01 0% 17,525 28,554 06 1 3,1 Germany 1775 2074 3849 1598 1905 3503 01 0% 15,846 31,994 05 0 3 Greece 289,8 88,8 478,5 - - - 01 1% 9,401 21,595 04 4 3,8 Iceland 2,3 1,8 4,1 - - - 0 03% 21,297 34,335 06 2 4,3 Ireland 47,8 78,8 126,6 37,5 59,4 96,9 0 05% 14,347 37,641 03 8 9,9 Italy 1431 1313 2745 1404 1266 2669 01 0% 13,632 31,238 04 4 2,7 Luxembourg 2,587 2,947 5,534 2,523 2,828 5,351 0 03% 22,733 63,473 03 6 5,7 Malta 1,007 6,43 7,437 1,084 6,611 7,695 0 05% 6,526 24,017 02 7 3,4 Netherlands 181 155 337 - - - 0 03% 16,405 32,17 05 1 4 Norway 35 40 75 33 42 75 0 03% 22,037 34,96 06 3 2,7 Portugal 140,35 107,59 247,95 115,67 105,92 221,6 0 04% 11,163 21,348 05 2 2,7 Spain 1696,1 1364,3 3060,3 1503,5 1102 2605,5 01 4% 10,741 25,747 04 2 4 Sweden 122 154 276 107 133 241 0 06% 18,032 27,065 06 7 4,3 Switzerland 71,8 70 141,8 62,4 59,2 121,6 0 06% 17,977 36,569 04 9 3 United Kingdom 678,6 1097,8 1776,4 656,5 1095,2 1751,7 0 06% 19,753 27,611 07 2 3

Average 6,6% $16,3 $31,9 51,8

The number of computers per thousand ranges from people aged 15 -49 are infected. The number of 461.9 (Switzerland) to only 60.2 (Greece). Scandinavia, physicians per capita is highest in Lithuania (395 for on the whole, has the highest incidence of computer every 100,000 people) with Hungary running a close users: with a range of 360.1/thousand (Finland) to 451.4 second. Public health expenditure as a share of GNP is (Sweden). 19.9% of Group 1’s population claims to use highest in the Czech Republic (6.7% compared to an the Internet; Norway claims the most users (45.45%), average of 5.0%); it ranks about average on most of the while the UK has the fewest (4.22%). At 0.1% of the health indicators. population, numbers of refugees tend to be low: Germany has the highest share with 1.12% of the population while Luxembourg with 0.001% has the Refugees Refugees By Country By Country lowest. Unemployment was highest at 14% in Spain, of asylum of asylumas Country and lowest in the Netherlands (2.6%). Overall, the (Thousand) a percent EU Plus 1999 of population average of Group 1 was 6.6%. Incomes - represented in US $ at 1999 figures range from a high of $22,000 for Austria 83 000 % Belgium 18 000 % women in Norway to a low of $6,500 for women in Denmark 69 000 % Malta. Men’s incomes range from $63,500 in Finland 13 000 % Luxembourg to $1,300 in Portugal. On average women France 130 000 % Germany 976 0 01% earn $16,300: about 52% of the average income for Greece 6 000 % men: $31,900. The gap between male and female Iceland … salaries is closest in the UK (71.5%) though Scandinavia Ireland 1 0,002 % Italy 23 000 % in general is a close runner -up. The gap is widest in Luxembourg 1 0,001 % Malta where women earn only 27.2% of a man’s salary. Malta …. Netherlands 139 000 % Turkey, at 69.0 years, has the lowest of life expectancy, Norway 48 000 % with Romania at 69.8 years a close second. Turkey also Portugal … has the highest infant mortality rate in Group 2, spends Spain 6 000 % Sweden 160 000 % the least on public health as a share of GNP and has Switzerland 82 000 % proportionately the fewest physicians; however, it does United Kingdom 137 000 % have the lowest incidence of HIV (0.01%). Latvia has the Average 118,3 0,1% highest incidence of people living with HIV: 0.11% of

42 Group 2: The Accession Candidates

Scientists and engineers Public Personal Combined primary, secondary in R&D Expenditure Computers Internet Internet Country and tertiary gross (Per million on Education (Per 1.000 Users Users as a Accession enrolment ratio %1999 people) (As % of GNP) people) in Thousands percent of Countries 1987-97 1995-97 1999 1999 population Female Male

Bulgaria 76 69 1,747 3,2 26,6 0,235 0 03% Czech Republic 70 69 1,222 5,1 107,2 0,7 0 07% Estonia 89 84 2,017 7,2 135,2 0,2 01 4% Hungary 83 79 1,099 4,6 74,7 0,6 0 06% Latvia 83 80 1,049 6,5 82 0,105 0 04% Lithuania 83 77 2,028 5,9 59,5 0,103 0 03% Poland 86 83 1,358 7,5 62 2,1 0 05% Romania 70 68 1,387 3,6 26,8 0,6 0 03% Slovak Republic 77 74 1,866 4,7 109,7 0,6 01 1% Slovenia 85 80 2,251 5,7 251,4 0,25 01 3% Turkey 55 68 291 2,2 33,8 1,5 0 02%

Average 77,9 75,5 1.6 5,1 88,1 6,5% excluding Turkey

Like Group 1, Group 2 ’s women have a slightly higher highest in Slovenia (2.3 per thousand) and lowest in enrolment ratio than men on average: 77.9 for Latvia (1.0 per thousand). The average is 1.6 per women compared to 75.5 for men. Estonia has the thousand. Public expenditure on education is highest highest enrolment ratios, 89 for women and 84 for in Poland (7.5% of GNP); Turkey is in last place, men. The lowest ratio for women is in Turkey where it registering 2.2% of GNP spent on education. The is 55; the enrolment ratio for men in Turkey ties with number of computers per thousand people ranges Romania for lowest with 69. The number of scientists from 251.3 in Slovenia to 33.8 in Turkey. and engineers as a share of the total population is

Unemployment (Per thousand) Unemployment (Per thousand) unemploy- Estimated earned 1998 Total 1999 Total ment income(PPP US$) gdp-real Country 1999 % female growth Accession of male rate (%) Countries 2000 Female Male Total Female Male Total (CIA) Female Male Bulgaria 228,2 269,2 497,4 245,9 288 534 01 8% 3,951 6,251 06 3 5 Czech Republic 214,3 165,4 379,6 248,1 222,3 470,4 0 09% 10,214 15,98 06 4 2,5 Estonia 30,2 40 70,2 34,1 47 81,1 01 2% - - 6,4 Hungary 123,8 189,2 313 114 170,7 284,7 0 09% 8,381 14,769 05 7 5,5 Latvia 77,7 82,9 160,6 72,9 4,4 167,3 0 08% 5,021 7,716 06 5 5,5 Lithuania 107,7 137,2 244,9 113 150,3 263,3 01 1% 5,406 8,055 06 7 2,9 Poland 965 843 1808 - - - 12% 6,453 10,561 06 1 4,8 Romania 322,1 410,3 732,4 327,4 462,5 789,9 01 2% 4,441 7,711 05 8 2,2 Slovak Republic 149,6 167,5 317,1 190,3 226,6 416,8 01 7% 8,393 12,912 06 5 2,2 Slovenia 35 40 75 34 37 71 0 07% 12,232 19,942 06 1 4,5 Turkey 416 1041 1547 471 1259 1730 10% 3,937 8,772 04 5 6

Average 11,2% $6,2 $10,2 06 1

On average, 6.5% of Group 2’s population claims to Bulgaria have the fewest (2.9%). At 0.002% of the use the Internet; Estonia claims the highest population, refugees barely register: Slovenia has the percentage of users (14.3%) while Turkey (2.3%) and highest percent with 0.008% while the Czech

43 Republic with 0.001% has the fewest. Unemployment Refugees Refugees By Country By Country was highest at 17.7% in Bulgaria, and lowest in Country of asylum of asylumas Slovenia (7.1%). Overall, the average of Group 2 was Accession (Thousand) a percent Countries 1999 of population 11.2%. Women’s incomes range from $12,200 in Slovenia to $3,900 and $4,000 in Turkey and Bulgaria Bulgaria 1 0,00145% respectively. Men’s incomes range from $19,900 in Czech Republic 1 0,00133% Estonia … Slovenia to $6,300 in Bulgaria. On average women Hungary 5 0,00781% earn $6,200: about 60.7% of the average income for Latvia … Lithuania … men ($10,200). The gap between male and female Poland 1 0,00154% salaries is closest in Latvia (where on average women Romania 1 0,00179% earn 65.1% of men’s incomes). The gap is widest in Slovak Republic … Slovenia 4 0,00800% Turkey where women earn only 44.9% of a man’s Turkey 3 0,00405% salary. Average 0,002%

Group 3: Non-Accession Countries

Scientists and engineers Public Personal Combined primary, secondary in R&D Expenditure Computers Internet Internet Country and tertiary gross (Per million on Education (Per 1.000 Users Users as a Non-accession enrolment ratio %1999 people) (As % of GNP) people) in Thousands percent of Countries 1987-97 1995-97 1999 1999 population Female Male

Albania 99 95 … … 5,2 0,003 000% Armenia 77 82 … 2 5,7 0,03 0 01% Belarus 79 75 2,248 5,9 … 0,05 000 % Bosnia-Herzegovina … ... … … … 4 Croatia 69 68 1,916 5,3 67 0,2 0 04% Georgia 71 69 … 5,2 … 0,03 0 01% Macedonia 70 70 1,335 5,1 … 0,03 0 02% Moldova, Rep.of 75 70 ,,330 10,6 8 0,025 0 01% Russian Federation 82 75 3,587 3,5 37,4 2,7 0 02% Ukraine 78 77 2,171 5,6 15,8 0,2 000 % Yugoslavia, FR … … 1,099 … 20,7 80 (Ser./Mont.)

Average 77,8 75,7 1.8 5,4 22,8 1,2% excluding Moldova

Like Group 1, Group 3 ’s women have a slightly higher thousand is highest in Russia (3.6 per thousand) and enrolment ratio than men on average: 77.8 for lowest in Yugoslavia (1.1 per thousand). The average women compared to 75.7 for men. Albania has the is 1.8 per thousand. Public expenditure on education highest enrolment ratios, 99 for women and 95 for is highest in Moldova (10.6% of GNP); Armenia is last, men. The lowest ratios for men and women are in registering 2.0% of GNP spent on education. The Croatia where they are 69 and 68 respectively, number of computers/ per thousand people ranges although Georgia and Macedonia report similarly low from 67 (Croatia) to 5.2 (Albania) followed by ratios. The number of scientists and engineers per Armenia: 5.7. The average is 22.8 per thousand.

44 Unemployment (Per thousand) Unemployment (Per thousand) unemploy- Estimated earned 1998 Total 1999 Total ment income(PPP US$) gdp-real Country 1999 % female growth Non-accession of male rate (%) Countries 2000 Female Male Total Female Male Total (CIA) Female Male Albania ------16-25% 2,248 4,088 05 5 7,5 Armenia ------20% 1,775 2,685 06 6 5 Belarus 70,6 35,3 105,9 61,3 34,1 95,4 2.1% (official) 5,373 8,599 06 2 4 Bosnia-Herzegovina ------35-40% - - 8 Croatia 97,541 100,936 198,477 116,576 117,395 233,971 02 2% 5,3 9,612 05 5 3,2 Georgia 131,3 159,7 291 117,4 160,1 277,5 14.9% ('99) -- 1,9 Macedonia ------03 2% … - 5 Moldova, Rep.of - - - 73,633 13,598 187,231 1.9% (official) 1,618 2,495 06 5 -1,5 Russian Federation 4090 4787 8876 4357 4966 9323 10.5% (official) 5,877 9,283 06 3 6,3 Ukraine 1422 1515,1 2937,1 1263,3 1435,5 2698,8 4.3% (official) 2,488 4,576 05 4 6 Yugoslavia, FR ------30%… … 15 (Ser./Mont.)

Average $3,5 $5,9 06 0

On average, 1.2% of Group 3’s population claims to use the Internet, Croatia claims the highest percent of Refugees Refugees By Country By Country users (4.3%) while Armenia (0.1%) and Ukraine have Country of asylum of asylumas the fewest (0.4%). Refugees are 0.1% of the Non-accession (Thousand) a percent Countries 1999 of population population: Armenia (0.42%) has the highest percent while Albania, Georgia and Ukraine all have the Albania 4 000 % Armenia 296 000 % fewest with (0.01%). Unemployment was highest at Belarus … 35 -40% in Bosnia -Herzegovina, and lowest in Bosnia-Herzegovina … Moldova (1.9%). Incomes range from a high of Croatia 28 000 % Georgia 5 000 % $5,900 for women in Russia to a low of $1,600 and Macedonia 21 000 % $1,800 for women in Moldova and Armenia Moldova, Rep.of … respectively. Men’s incomes range from $9.600 in Russian Federation 80 000 % Ukraine 3 000 % Croatia to $2,500 in Moldova. On average women Yugoslavia, FR … earn $3,500: about 59.7% of the average income for (Ser./Mont.) men: $5.900. Male and female salaries are closest in Average 0,1% Armenia (66.1%); the gap is widest in Ukraine where women earn only 54.4% of a man’s salary.

Group 1 Compared To Group 2 Poland’s high of 7.6% is significantly higher than the Group 1 average, though Turkey’s 2.2% of GNP spent on The average enrolment ratio is higher in general for education is much lower than the 3.1% reported in Group 1 than for Group 2: women have an average ratio Greece and Belgium. The number of computers per of 94.7 in Group 1 as compared to 77.9 in Group 2 while thousand decreases significantly in Group 2. Overall, men have an average ratio of 91.2 in Group 1 compared Group 2 averages 88.1 computers per thousand while to 75.5 in Group 2. Estonia has the highest enrolment Group 1 averages 297.3. Slovenia, with 251.4 computers ratios in Group 2, reporting 89 for women and 83 for per thousand reports the most, while Bulgaria, with 26.6 men. Turkey has the lowest enrolment ratio for women: per /thousand just beats Romania for the fewest. 55, while its enrolment ratio for men (68) ties for last Internet users are also much lower: 6.5% of Group 2 use place in Group 2 along with Romania. Turkey is unusual the internet compared to a Group 1 average of 19.9%. for Group 1 and Group 2 in that the enrolment ratio for Estonia reports that 14.3% of the population uses the women is significantly lower than that of men. The internet – the highest for Group 2 while Turkey reports number of scientists and engineers per thousand is that only 2.3% of the population use the Internet. higher in Group 1; with an average of 2.5 per thousand versus 1.6 per thousand (excluding Turkey) in Group 2. On average 0.002% of Group 2’s population, refugees Slovenia with 2.3 scientists and engineers per thousand barely register, whilst Group 1 reports 0.1% on average. is closest to the average of 2.5 per thousand for Group Slovenia has the highest percent of refugees reporting 1 and is significantly higher than Portugal (1.2 per 0.008% while the Czech Republic, with 0.001% has the thousand). Latvia with 1.0 scientists and engineers per lowest. Unemployment, with an average of 11.2% on thousand has the lowest ratio. Public expenditure on average in Group 2 is higher than the Group 1 average education is not significantly lower in Group 2 (5.1% of of 6.5%. However, the highest unemployment 17.7% GNP) than Group 1’s average (5.6%). (Bulgaria) is in line with the 14% reported in Spain.

45 Incomes in general are lower: the average for women in Group 2 Compared To Group 3 Group 2 is $6,200 while it averages $16,300 in Group 1. The average enrolment ratio is slightly higher in general The average for men is $10,000 in Group 2 compared to for Group 2 than for Group 3: women have an average an average of $31,000 in Group 1. The gap is narrower ratio of 77.9 in Group 2 as compared to 77.8 in Group 3 between men’s and women’s salaries in Group 2: women while men have an average ratio of 75.5 in Group 2 make 60.7% of men’s salaries on average in Group 2 compared to 75.7 in Group 3. Albania with 99 for compared to 51.8% on average in Group 1. women and 95 for men has a higher enrolment ratio than Estonia (the highest in Group 2) which reports 89 Group 1 Compared To Group 3 for women and 84 for men. Except for Turkey, enrolment The average enrolment ratio is higher in general for ratios are higher for women than for men across both Group 1 than for Group 3: women have an average ratio Group 2 and Group 3. The number of scientists and of 94.7 in Group 1 as compared to 77.8 in Group 3 while engineers per thousand is higher in Group 3; with an men have an average ratio of 91.2 in Group 1 compared average of 1.8 per thousand versus 1.6 per thousand in to 75.7 in Group 3. Albania reports the highest Group 2. Russia with 3.6 scientists and engineers per enrolment ratios in Group 3 reporting 99 for women and thousand leads the way and is much higher than 95 for men in line with Group 1. Croatia has the lowest Slovenia which, with 2.3 scientists and engineers per ratios for Group 3: reporting 69 for women and 68 for thousand, is highest in Group 2. Latvia with 1.0 scientists men. The number of scientists and engineers per and engineers per thousand has the lowest ratio for thousand is higher in Group 1; with an average of 2.5 Group 2, but this is lower than the 1.1 scientists and per thousand versus 1.8 per thousand (excluding Turkey) engineers per thousand reported by Yugoslavia. in Group 3. Russia with 3.6 scientists and engineers per Public expenditure on education is higher on average in thousand is closest to the high in Group 1 of Sweden Group 3 (5.4% of GNP, though since the countries are which has 3.8 scientists and engineers per thousand. less wealthy the net effect is obviously less): Moldova Though Yugoslavia reports the lowest number of spends 10.6% of GNP on education while Poland only scientists and engineers with 1.1 per thousand, that is spends 7.5%. The low in Group 2 of Turkey (2.2% of similar to Portugal which reports 1.2 per thousand. GNP) is in line with that of Armenia, which at 2% is the Overall, public expenditure on education is not significantly lowest in Group 3. The number of computers per lower in Group 3 (5.4% of GNP) than Group 1’s average thousand decreases significantly from Group 2 to Group (5.6%). Moldova’s high of 10.6% is significantly higher than 3. Overall, Group 2 averages 88.1 computers per Sweden, which at 8.3% spends the most of GNP on thousand while Group 3 averages 22.8. Croatia’s 6 per education of a Group 1 country, though Armenia’s 2.0% of thousand (the highest for Group 3) is nowhere near that GNP spent on education is much lower than the 3.1% of Slovenia which reports having 251.4 computers per reported in Greece and Belgium. The number of compu- thousand. Bulgaria, which with 26.6 per thousand is the ters per thousand decreases significantly in Group 3. lowest in Group 2 is far ahead of Albania (the lowest in Overall, Group 3 averages 22.8 computers per thousand Group 3), which reports only 5.2 per thousand. while Group 1 averages 297.3. Russia, with 37.4 computers Internet users in Group 3 decrease by about 5%, less per thousand reports the most, while Albania (notwith- than the 13% decrease from Group 1 to Group 2 but standing its high education enrolment ratio), with 5.2 per from a lower base. Estonia reports that 14.3% of the thousand has fewest followed by Armenia and Moldova. population uses the Internet, the average is 6.5% in Internet users are also much lower: 1.2% of Group 3 use Group 2. Croatia, the country with the highest incidence the internet compared to the Group 1 average of 19.9%. of internet users in Group 3 is only 4.3% while the Croatia reports that 4.3% of its citizens use the internet average is 1.2%. On average, with 0.002% of Group 2’s – the highest for Group 3 while Albania beats Belarus population, refugees barely register, while Group 3 and Ukraine for last place, reporting that only 0.1% of reports 0.1% on average. Slovenia has the highest the population use the internet. The share of refugees percent of refugees reporting 0.008% while the Czech reported in Group 3 on average is in line with Group 1 Republic, with 0.001% has the lowest. This compares to which reports 0.1%. Armenia (probably because of the Group 3 where Armenia (0.4%) has the highest war over Nagorno Karabakh) reports 0.42% while incidence of refugees, while Albania has the lowest, Albania, Georgia and Ukraine report 0.01%. 0.015%. The highest unemployment in Group 2 is 17.7% (Bulgaria) while Group 3 has a high of 35 -40% Unemployment is high, although official figures are reported in Bosnia Herzegovina. In line with the unlikely to be wholly reliable. However, the highest decrease from Group 1 to Group 2, salaries decrease unemployment is reported in Bosnia -Herzegovina 35 - further from Group 2 to Group 3 though from a smaller 40% and Croatia (22%). Incomes in general are much base and thus a lower percentage. The average for men lower than Group 1: the average for women in Group 3 is $10,000 in Group 2 vis-à-vis an average of $5,900 in is $3,500 compared to an average of $16,300 in Group Group 3. The gap is narrower between men’s and 1. The average for men is $5,900 in Group 2 compared women’s salaries in Group 2: women earn 60.7% of to an average of $31,900 in Group 1. The gap between men’s salaries on average in Group 2 compared to men’s and women’s salaries is slightly narrower in Group 51.8% on average in Group 1; this gap widens only 3: women earn 59.7% of men’s salaries on average in slightly in Group 3: women earn 59.7% of men’s salaries Group 3 compared to 51.8% on average in Group 1. or 3.5K on average.

46 Group 1: EU Plus Countries European Union Countries

47 ■ Austria

Overview Education & Development

Austria’s well-developed market economy and high Austria’s men and women both have enrolment ratios standard of living is closely tied to other EU of 90, which is slightly below the Group 1 average of economies, especially Germany's. Austria joined the 95 for women and 91 for men. This slightly lower European Union in 1995 and the European Monetary overall level of education is reflected in the number of System in 1999. Growth is expected to remain at engineers per 1000 which at 1.6 per 1000 is about 3% in 2001. considerably lower than the EU average of 2.5 per 1000. Public expenditure on education, however, at 5.4% of GNP is close to the Group 1 average. The Demographics number of computer users per 1000 is slightly lower than the average Group 1 country of 297, but the At 8.1 million, Austria’s population is median for Group internet is widely used: more than 22% of the 1 countries. Its negative growth rate is slightly below population use the internet, compared to the Group 1 average for the EU, but life expectancy, at 77.2 years, average of about 20%. The proportion of refugees is is about average for this Group. 35% of Austrians live close to the Group 1 average of 0.1%. From 1998 – rurally, a significantly higher proportion than the 1999, unemployment decreased for both men and Group 1 average of 22%. Infant mortality, at 4.0 women, though women were slightly less likely than deaths per 1000, is better than the Group 1 average. men to be unemployed. At 5.4% unemployment is The proportion of Austrians living with HIV is 0.23%, below that of the Group 1 average of 6.6%. Income which is in line with other Group 1 countries. There are levels are in line with Group 1: women earn only 48% 302 physicians per 100,000 people, slightly fewer than of men’s income, which is close to the Group 1 average the Group 1 average; the share of GNP spent on of 52%. public health expenditure is also slightly below the Group 1 average.

The Caritas Austria Perspective

The categories of people mostly affected by poverty Children and families who, in the earlier statistics, were are mainly: considered as being threatened by poverty are less prominent. According to the old scale, 25% of the ■ lone parents with no income from gainful households with 2 or more children are prone to employment (47% of them is threatened by poverty); poverty. According to the new calculation this figure is ■ one-person households living on pensions (26% of now 19%. them is threatened by poverty); ■ people from non-EU countries (30% of them is Asylum seekers represent a group extremely affected threatened by poverty); by poverty especially when they fall outside the federal ■ long-term unemployed (defined as longer than six social care and assistance programme months) (32% of them is threatened by poverty); ("Bundesbetreuung"). This means they are not entitled ■ people of working age living in households where to earn their livelihood and, as a consequence, end up nobody is gainfully employed (26% of them is living on the streets. Moreover, in addition to facing threatened by poverty). discrimination when looking for employment or housing, the situation of non-EU migrants is also However, these results are due to a modification in the adversely affected by discrimination on the part of the calculation: For the first time the EUROSTAT-scale social welfare system (e.g. limited transfer payments (1;05;0,3) was used in calculating actual poverty and for people in need, limited social welfare benefits – if the risk of being reduced to poverty in Austria. In any at all – little or no access to publicly assisted comparison to the former scale (1;07;0,5), this has led housing) and by legal restrictions as they try to enter to a change in the groups of persons concerned. the labour market. In 1999, the homeless was

48 comprised of some 12,000 who visit stationary opening hours, costs, location within reasonable accommodation centers, approximately 2,000 living reach…). This inadequate access also often obliges on the streets and at least 7,000 seeking shelter in the one of the parents in two parent-households to remain accommodation facilities of immigrant and refugees at home and thus unable to find paid employment. support centers. Moreover transfer payments for people in need The threat of poverty for retired people stems from the ("Notstandshilfe") are not sufficient to protect the minimum pension payments, which are simply too low. long-term unemployed against poverty. The final mesh In the final analysis, the root cause of the problem is in Austria's social safety net consists of social welfare the fact that the pension scheme is geared to the benefits to meet special contingencies. However, this "average male work biography", characterised by is based on the social and medical care principle and uninterrupted full-time employment. This increasingly which does not guarantee basic material needs. In does not reflect the reality for many people, consequence, people who fall through the net of the particularly women. social insurance system (retirement benefits, unemployment insurance) lack any guarantee of Lone parents not gainfully employed are mostly having their financial needs met nor are they provided threatened by poverty because they do not have with care facilities. sufficient access to adequate childcare facilities (e.g.

■ Belgium

Overview both the number of physicians and the level of public health expenditure, which, at 7.9% of GDP is 1.7% Belgium has prospered in the past half century as a above the Group 1 average. modern, technologically advanced European state and member of NATO and the EU. Belgium’s modern economy capitalises on its central geographic location, Education & Development highly developed transport network, and diversified industrial and commercial base. With few natural With a ratio of education 111 and 107 respectively, resources, the economy is particularly dependent on Belgium’s men and women are educated far above the state of world markets. Belgium became a charter the Group 1 average, though public expenditure on member of European Monetary Union (EMU) in education, at 3.1% of GNP, is well below the Group 1 January 1999. average. (However, with a ratio above 100 one should note some double counting.) This higher overall level of education is not reflected in the Demographics number of scientists and engineers per 1000 which at 2.3 per 1000 is slightly lower than the Group 1 With a total population of 10.2 million, Belgium’s average of 2.5 per 1000. The number of computer population is roughly median for Group 1 countries. users, at 315.2 per 1000 is higher than the Group 1 Its flat growth rate is slightly below average for Group average. The internet is not as widely used as in most 1, though life expectancy, at 77.9 years, is about Group 1 countries: only 13.7% of the population use average for this Group. 97% people live in urban areas the internet, which is well below the Group 1 average. which is much higher than the Group 1 average. Infant The proportion of refugees is only 0.02% of the mortality, at 6 deaths per 1000, is slightly higher than population, lower than the Group 1 average of 0.1%. the Group 1 average. At 0.15% the proportion of Unemployment decreased for women and not for people living with HIV is lower than other Group 1 men from 1998-1999, although, as a whole, women countries, as is the proportion of women and children are more likely to be unemployed than men with HIV. Belgium’s strong health system is reflected in (197/1000 for women compared to 179.4/1000 for

49 men). Unemployment, at 8.4%, is significantly higher slightly higher than Group 1 average, but women than the Group 1 average. Incomes in general are in earn only some 43% of men’s income. line with Group 1 as a whole: income for men is

The Caritas Belgium Perspective

Caritas Europa has the following member Minister, Vande Lanotte, recently proposed that the organisations in Belgium: Caritas Catholica Belgica, government approve a draft reform of the minimum Caritas Catholic en Belgique Francophone et means of existence (the minimex) to be replaced by an Germanophone, Caritas Vlaanderen, Caritas Secours integration income. This draft reform involves greater International Belgique. demands placed on the beneficiaries of the system - with benefits henceforth be granted to potential According to the Centrum voor sociaal beleid (the beneficiaries through a contract system. If the draft University of Antwerp's social policy centre), the reform is approved by the parliament, assistance percentage of households that are below the so-called would be only given if more stringent conditions are security threshold in Belgium has increased from 5.9% fulfilled. Some fear that the result of such tightening of in 1988 to 7.7% in 1997. In terms of individuals, the conditions will be a decrease in the protection of the percentage rose from 5% to 6.4% in the same period. needy. The Centre has highlighted the crucial role played by the social security system as a poverty-prevention Yet currently, the social security system has a large mechanism. However, that mechanism is increasingly surplus, which could be usefully spent in four different under threat. The Secretary General of the areas: Employment and Labour Ministry, Michel Jadot, recently confirmed that current unemployment benefits ■ on old-age pensions, in order to ease the in Belgium amounted to only 27% of the average wage, expected demographic problems; disability benefits 30% and pensions 37%. ■ to bring down employers' social contributions, a demand put forward with insistence by the The majority coalition currently in power in Belgium employers, in addition to a decrease in corporate has adopted the slogan, Etat social actif (active social taxes on profits; state), which places emphasis on the citizen's active ■ on an increase in social security benefits; contribution. This philosophy is also found in policies ■ on increasing sickness-disability benefits, which to combat poverty. The Belgian Social Integration have accumulated substantial overruns.

■ Denmark

Overview Demographics

Denmark has evolved into a modern, prosperous With a total population of 5.3 million, Denmark is nation that is participating in the political and smaller than most other Group 1 countries. Though its economic integration of Europe, and, although growth rate is slightly positive, it is still below average Denmark has rejected EMU, the Danish currency for Group 1. 85% of Danes live in urban areas, which remains pegged to the EURO. The thoroughly is more than the Group 1 average of 78%. Life modern market economy features high-tech expectancy, at 75.9 years, is slightly below average for agriculture, up-to-date small-scale and corporate this group; infant mortality, at 4.0 deaths per 1000, is industry, extensive government welfare measures, also slightly lower than the Group 1 average. At comfortable living standards, and high dependence on 0.17%, the proportion of people living with HIV is foreign trade. lower than other Group 1 countries, as is the proportion of women and children with HIV. Denmark

50 has proportionately fewer physicians than the Group 1 1000, which at 3.2 per 1000 is higher than the Group 1 average, but spends 6.8% of GDP on health care, average of 2.5 per 1000. The number of computers at which is above the Group 1 average. 414 per 1000 people is considerably higher than the Group 1 average. The internet has high penetration in Denmark: 28.3% of the population use the internet. Education & Development The proportion of refugees is only 0.08% of the population, slightly lower than the Group 1 average of With an enrolment ratio of 101 for females and 91 for 0.1%. More Danish women than men were males, more Danish women have access to education unemployed in 1998-1999, though at 5.3% than Danish men. This reflects the overall tendency in unemployment is slightly lower than that of Group 1. Group 1 for more women to have access to education While incomes in general are in line with Group 1 as a than men. At 8.1% of GNP, public expenditure on whole, the gap between men's and women's earnings education is well above the Group 1 average; this is is considerably less than the Group 1 average. Women reflected in the number of scientists and engineers per earn some 70% of men’s income.

The Caritas Denmark Perspective

The people that are most directly affected by poverty Also, differences in housing costs for similar quality problems are often the ones who experience special housing between privately owned homes, private social problems, such as the mentally ill and drug and housing for rent and non-profit housing has tended to alcohol abusers. They lack a more direct and active reduce the mobility of the population, making it participation from the part of the local authorities. One difficult to obtain a sound functional distribution of of the major problems in relation to sustainable housing, as related to family size and age. development has been the priority given by a large part of the population to single family housing, leading to additional demands for energy and transportation.

■ Finland

Overview it is below average for Group 1. 33% of the people live in rural areas as opposed to a Group 1 average of 22%. In the last 50 years, the Finns have made a remarkable Life expectancy, at 77.2 years is in line with Group 1’s transformation from a farm/forest economy to a average, and infant mortality, at 4 deaths per 1000, is diversified modern industrial economy: per capita slightly lower than the Group 1 average. The income is now on par with other countries of Western proportion of people living with HIV is 0.05%, and is Europe. Finland has a highly industrialised, largely free- lower than other Group 1 countries, as is the market economy, with per capita output roughly that of proportion of women and children with HIV. Finland the UK, France, Germany, and Italy. Rapidly increasing has fewer physicians, only 92.2%, of the average integration into the European Union - Finland was one Group 1 country, and spends 5.2% of GDP on health of the 11 countries joining the EURO monetary system care, 1% above the Group 1 average. (EMU) on 1 January 1999 - is likely to dominate the economic picture over the next several years. Education & Development

Demographics With a ratio of 108 for females and 99 for males, more women have access to education than men – though With a total population of 5.2 million, Finland is smaller even the male ratio is far above the Group 1 average than other Group 1 countries. With a flat growth rate, of 91 for males. Public expenditure on education, at

51 7.5% of GNP is well above the Group 1 average; this The proportion of refugees is only 0.02% of the is reflected in the number of scientists and engineers population, well below the Group 1 average of 0.1%. per 1000 which at 2.8 per 1000 is slightly higher than Slightly more women than men were unemployed in the Group 1 average of 2.5 per 1000. The number of general in 1999, though unemployment at 9.8% is computers at 360 per 1000 people is higher than the much higher than the Group 1 average. Incomes for average Group 1 country but the large number of both groups are much higher than Group 1 as a internet users suggests a relatively high level of IT whole, and like Denmark, the gap is narrower sophistication: 41.2% of the population use the between men's and women's earnings, who report internet - more than double the Group 1 average. earning about 66% of men’s income.

The Caritas Finland Perspective

Due to the economic recession in the 1990s and the People experience severe income problems and many subsequent period of large-scale unemployment, the find it difficult to cope. Over the past few years, public sector, NGOs and parishes have ended up in a dozens of food banks have been established to situation where they are now facing enormous provide food assistance in different parts of Finland. In challenges. Many people were strongly influenced by spite of economic growth, the need for assistance has the recession, and permanent imprints of it may have been on the increase. Another serious poverty remained. Whilst many have been able to weather the problem is represented by the growing number of recession and maintain their earnings and their homes, households dependent on income support. From the many others have been less fortunate. Unemployment social costs 30% was allocated for elderly people, reduced the income of nearly a million households 26% for health, 12% for children and 11% for either in the short-term or more permanently. Tens of unemployment. In Finland the taxation of income and thousands lost their property, owing to the fact that property is very high. In international comparisons, they were over extended, had guarantee liabilities, or Finland's taxation of families with one income earner is their houses or flats fell in value, or their business the highest in the world. The divorce rate in Finland is activities ended in bankruptcy. One of the key factors highest in Europe. explaining poverty in our country is the long-term unemployment. In 2000 the unemployment rate was The gap between the haves and the have-nots is now 9.8%. 27.2% of the unemployed suffered from long- marked and is in danger of being passed down from term unemployment. In the same year, among young one generation to the next in the classic poverty trap. people (15-24 years) 21.4% were out of work. More and more Finns have for different reasons fallen through the existing social safety nets.

■ France

Overview energy, public transport and defence industries, but it has been relaxing its control since the mid-1980s France has been a major political driving force behind the economic integration of Europe. In recent years, its reconciliation and co-operation with Germany have Demographics proven central to the project, including the advent of the EURO in January 1999. France is in the midst of a With a total population of 59 million, France is one of transition from an economy that featured extensive the largest Group 1 countries. With a growth rate of government ownership and intervention to one that 0.3%, it is just above average for Group 1. 75% of the relies much more on market forces. The government population live in urban areas, a proportion that is remains dominant in some sectors, particularly in close to the Group 1 average. Life expectancy, at 78.1

52 years is in line with Group 1’s average, though infant average; this number is reflected in the number of mortality, at 5 deaths per 1000, is slightly higher than scientists and engineers per 1000 which at 2.7 per the Group 1 average. The proportion of people living 1000 is slightly higher than the Group 1 average of 2.5 with HIV is 0.44%, and is higher than other Group 1 per 1000. The number of computers at 222 per 1000 countries, as is the proportion of women and children people is significantly lower than the average Group 1 with HIV. France has proportionately fewer physicians country and this, coupled with a relatively low number than the Group 1 average, but spends 7.3% of GDP on of internet users (9.1%), suggests a rather low level of health care, 1.1% above the Group 1 average. IT sophistication. The proportion of refugees is 0.17% of the population, just above the Group 1 average of 0.1%. Slightly more women than men were Education & Development unemployed in general in 1999, and overall unemployment at 9.7%, is much higher than the Group With a ratio of 96 for females and 93 for males, more 1 average. Incomes for women are higher than in women have access to education than men do – Group 1 as a whole. However, the narrower gap though even the male ratio is above the Group 1 between men's and women's earnings is due not to average of 91 for males. Public expenditure on higher salaries but because men’s salaries in general education, at 6% of GNP is above the Group 1 are lower.

The Caritas France Perspective

The Caritas organisation in France is called Secours which to leave their children whilst they work. In Catholique. addition, those in prison represent a major category at risk of poverty, given the fact that they leave from The difficulty in finding stable employment in the prison with only 7.62 EUROs in their pockets. The country is one of the major causes of poverty. situation of refugees is also critical since they are Currently there are 1,820.000 “working poor” of ineligible for any official aid until their status is whom 270,000 have a job with fixed duration. In recognised by the administration. Even then, France the poor is a person earning 556.43 EURO per assistance is usually given for a very limited time and month. In the year 2000, half the population aged for low amounts of money (e.g. 274.40 EURO for 12 between 55 and 59 was unemployed. The lone-parent months for an adult, 106.71 EURO for 12 months for a families are the category that is most directly affected child). The lack of sufficient lodging for poor people is by this situation. Indeed, because of the high price of a further source of social concern, since the housing childcare centres, the lone parent has the most market is effectively closed to the needs of people difficulty in finding an appropriate environment in earning a modest income.

■ Germany

Overview Demographics

As Western Europe's richest and most populous nation, With a population of 82 million, Germany is the largest Germany remains a key member of the continent's Group 1 country. With a growth rate of -0.1%, it is just economic, political, and defence organisations. above average for Group 1. 87% of the population live Germany possesses the world's third most in urban areas, which is higher than the Group 1 technologically powerful economy after the US and average. Life expectancy, at 77.3 years is in line with Japan. However, structural market rigidities - including Group 1’s average, though infant mortality, at 5 deaths the substantial non-wage costs of hiring new workers - per 1000, is slightly higher than the Group 1 average. have made unemployment a long-term, not just a The proportion of people living with HIV is 0.10%, and cyclical, problem. is lower than other Group 1 countries, as is the

53 proportion of women and children with HIV. Health scientists and engineers - at 2.8 per 1000 - is slightly care is a priority; Germany has a higher number of higher than the Group 1 average of 2.5 per 1000. The physicians, (107.9% of Group 1 average), than the number of computers at 297 per 1000 people is in line average Group 1 country, and spends 7.9% of GDP on with the average Group 1 country, though the level of health care, 1.7% above the Group 1 average. internet users at 17.6% is below the Group 1 average. There are significantly more refugees in Germany than other countries in this Group: 1.1% of the population, Education & Development way above the Group 1 average of 0.1%. More men than women were unemployed in general in 1999. With a ratio of 93 for females and 96 for males, more Overall unemployment is 9.9%, which is much higher men have access to education than women do; the than the Group 1 average. (This can in part be ratio for males is above the Group 1 average of 91 but explained by Germany’s strict labour laws.) Men’s the enrolment ratio for females is only just below. salaries are in line with the Group 1 average, though Public expenditure on education, at 4.8% of GNP, is women’s salaries are slightly lower. Women earn about below the Group 1 average, though the number of 49% of men’s income.

The Caritas Germany Perspective

Poverty in Germany is mainly caused by the high rate generate an income. The insufficient social security of unemployment, often caused by the lack of proper benefits for lone parents exacerbate the problem of education and training for many young people. The social exclusion because of poor financial and social State does not provide sufficient support for families resources. Asylum seekers and migrants represent with several children in terms of education and another category at risk of poverty and social exclusion daycare. Because of family duties, one of the two since they have generally a low paid job or a job that partners has often to remain at home and cannot German nationals refuse to do.

■ Greece

Overview Its growth rate of –0.1 is slightly below average for Group 1, though life expectancy, at 78 years, is about Democratic elections in 1974 and a referendum average for this Group. 40% of the people live in rural created a parliamentary republic and abolished the areas as opposed to a Group 1 average of 22%. Infant monarchy. Greece joined the European Community in mortality, at 6 deaths per 1000, is slightly higher than 1981 (which became the EU in 1992). Greece has a the Group 1 average. At 0.16% the proportion of mixed capitalist economy with the public sector people living with HIV is lower than other Group 1 accounting for about half of GDP. Greece is a major countries, as is the proportion of women and children beneficiary of EU aid, equivalent to some 4% of GDP. with HIV. Though Greece has a large number of The economy has improved steadily over the last few physicians (121% of the average Group 1 country) their years. Major challenges remaining include the public health expenditure, at 4.7% of GDP is 1.5% reduction of unemployment and further restructuring below the Group 1 average. of the economy, including the privatisation of some leading state enterprises. Education & Development

Demographics With a ratio of enrolments of 81 and 80 for women and men respectively, Greece’s population are uniformly With a total population of 10.6 million, Greece’s educated at a lower level than the Group 1 average, population is roughly median for Group 1 countries. and public expenditure on education, at 3.1% of GNP

54 is well below the Group 1 average and is on a par with of 0.1%. Unlike many of the countries in this group, that of Belgium. The number of computers, at 60.2 unemployment for women is much higher than that for per 1000, is much lower than the average Group 1 men. Unemployment, at 11.3% is significantly higher country – which has 297.3 per 1000 people. The than the Group 1 average. Incomes, especially for internet is not as widely used as in most Group 1 women are way below Group 1 as a whole; income for countries: only 7.1% of the population use the men at 21.6 is much lower than the Group 1 average, internet. The proportion of refugees is only 0.01% of but women are even worse off. They earn on average the population, much lower than the Group 1 average 43.5% of men’s income.

The Caritas Greece Perspective

Acute poverty is closely associated with old age, the Budget Familial (E.S.Y.E.), 34% of Greek families residence in rural areas, low educational qualifications which included one man of over 65 years old were and, to a lesser extent, with lack of employment or under the threshold of poverty. The elderly, those employment in the agricultural sector. Moreover, families with more than three children, and migrants given the fact that Greece has poor soil for farming are the categories most directly affected by poverty. coupled with a very low variety of cultures for Indeed, those migrants without official national planting, the rural population is deeply affected by papers do not have access to public medical care. social exclusion. In 1993, according to a research of

■ Ireland

Overview Group 1 country). Ireland spends 4.7% of GDP on health care, 1.5% below the Group 1 average and Ireland is a small, modern, trade-dependent economy tying it with Greece for the lowest % of GDP spent on with growth averaging a robust 9% in 1995-2000. health. Agriculture, once the most important sector, is now dwarfed by industry, which accounts for 38% of GDP and about 80% of exports and employs 28% of the Education & Development labour force. Ireland joined in launching the EURO currency system in January 1999 along with 10 other With a ratio of 93 for females and 89 for males, more EU nations. women have access to education than men. The enrolment ratio for both groups is lower than the Group 1 Average of 94.7 for females and 89 for men. Demographics Public expenditure on education, at 6.0% of GNP is just above the Group 1 average, though this number With a total population of 3.8 million, Ireland is one of is not reflected in the number of scientists and the smaller Group 1 countries. Its growth rate of 1 is engineers per 1000. At 2.3 per 1000 this number is above the average for Group 1. 41% of the slightly lower than the Group 1 average of 2.5 per population live in rural areas – the highest percentage 1000. The number of computers at 404.9 per 1000 in any Group 1 country. Life expectancy, at 76.1 people is much higher than the average Group 1 years, is just below Group 1’s average. Infant country but the number of internet users, at 17.87% mortality, at 6 deaths per 1000, is higher than the (below the Group 1 average of about 20%). This Group 1 average. The proportion of people living suggests a lower level of IT sophistication than the with HIV is 0.10%, lower than other Group 1 number of computer users would indicate. Refugees countries, as is the proportion of women and children barely register: they are only 0.002% of the with HIV. Ireland has the highest number of population, well below the Group 1 average of 0.1%. physicians of this Group (170.8%, of the average Unemployment fell significantly from 1998-1999 -

55 though many more men than women were registered higher: 37.6 against the 31.9 for Group 1 on average. as unemployed in general. Unemployment at 4.8% is The gap is very wide between men and women: considerably lower than the Group 1 average of women report earning only 38 % of men’s income: 6.6%. Incomes for women are much lower than the this is one of the lowest ratios for Group 1 overall. Group 1 average, while men’s salaries are much

The Caritas Ireland Perspective

The Caritas organisation in Ireland is called Trocaire. significant decline on the 1994 figure when 15% of all households were living in ‘consistent poverty’. The There is widespread acceptance in Ireland that poverty 1998 survey also showed that the gap between should be defined in relative terms. The National Anti- households that were ‘consistently poor’ and other Poverty Strategy, agreed by the Government in 1997, households had considerably widened since 1994. adopted the following definition of poverty: Those most likely to be affected by poverty in Ireland "People are living in poverty if their income and are the unemployed; the disabled or ill; lone parents; resources (material, cultural and social) are so those employed in a low-paid job; retired people, inadequate as to preclude them from having a especially those living alone. The unemployed and standard of living which is regarded as acceptable by disabled have a particularly high risk of experiencing Irish society generally. As a result of inadequate ‘consistent poverty’. Households with children, income and resources people may be excluded and especially with three or more children, are particularly marginalized from participating in activities which are at risk of poverty. Specific minority groups, in considered the norm for other people in society." particular, The Travelling People (Ireland’s nomadic people) and asylum-seekers face a high risk of income The incidence and risk of poverty have been measured poverty combined with very poor housing conditions. in two principal ways in Ireland. One focuses on In addition, they face discrimination and marginalisation. current income and uses ‘relative income lines’ (based on disposable income, i.e. gross income minus income The principal causes of poverty can be summarised as tax and social security contributions) to estimate the follows: percentage of households and individuals currently living on low incomes. The second uses relative income ■ First and foremost, unemployment, particularly lines combined with ‘deprivation indicators’- such as long-term unemployment. This particularly affects lack of basic household or personal items, debt or those job seekers with low levels of education arrears in payments in relation to ordinary living and/or skills, those out of work for a long time, and expenses - to estimate the percentage of households older people. and individuals living in what is termed ‘consistent ■ Low pay is an important factor, despite the poverty’. introduction of a minimum wage, and particularly for parents needing childcare services. In relation to poverty measured as current income ■ Social security benefits are insufficient to prevent deprivation, the most up-to-date data available show poverty for those wholly reliant on them. It is that in 1998 around 20% of the population were living important to note that increases in social security below a poverty line established at 50% of average benefits are linked to rises in prices rather than income and around 29% lived below a poverty line incomes. As a consequence the gap between established at 60% of average income. The those dependent on social security and those on percentage of persons living below the 50% line had average earnings has grown considerably. increased since the previous survey in 1994, reflecting ■ Poor educational and skills levels limit job options the fact that average incomes had risen rapidly. and confine segments of the population to low paid employment. With regard to ‘consistent poverty’, the 1998 data ■ The underdevelopment and inadequacy of personal showed that households falling below 60% of average social services, including support services for income and experiencing basic deprivation families with dependent children. Childcare represented 8% of total households. This constituted a provision is seriously under-resourced.

56 ■ Italy

Overview Education & Development

Italy was a charter member of NATO and the European With enrolment ratios of 87 for females and 81 for Economic Community (EEC). It has been at the males, more women have access to education than forefront of European economic and political men. The ratios for both sexes are lower than the unification, joining the European Monetary Union in Group 1 average of 94.7 for females and 89 for men. 1999. Persistent problems include illegal immigration, Public expenditure on education, at 4.9% of GNP is the ravages of organised crime, corruption, high 0.7% below the Group 1 average; the number of unemployment, and the low incomes and technical scientists and engineers per 1000 is correspondingly standards of southern Italy compared with the more low at 1.3 compared with the Group 1 average of 2.5. prosperous north. Italy's economic performance, As in other countries with a low number, this tends to however, has lagged behind that of its EU partners and suggest a continuing dependence on agriculture it must work to stimulate employment, promote labour rather than a sophisticated service economy. The flexibility and reform its expensive pension system. number of computers at 191.8 per 1000 people is much lower than the average Group 1 country and this is borne out in the relatively low number of Demographics internet users, which at 12.2% is way below the Group 1 average of about 20%. Italy has a lower With a total population of 57.5 million, Italy is one of proportion of refugees: they are 0.03% of the the larger Group 1 countries. Its annual growth rate of population, well below the Group 1 average of 0.1%. –0.3 is below the average for Group 1. 33% of the Unemployment for both groups fell slightly from population live in rural areas, more than the 22% 1998-1999 though many more women than men were registered in the average Group 1 country. Life registered as unemployed in general. expectancy, at 78.2 years is above Group 1’s average, Unemployment at 10.4% is much higher than the but infant mortality, at 6 deaths per 1000, is higher Group 1 average. Incomes for women are much than the Group 1 average. The proportion of people lower than the Group 1 average, 13.6 against the living with HIV is 0.35%, relatively high for a Group 1 16.3, while men’s salaries are in line: 31.2 against the country, as is the proportion of women and children 31.9 for Group 1 on average. The gap is wide with HIV. Italy has a lower proportion of physicians between men and women: women report earning (67.5%, of the average Group 1 country), than other only 43% of men’s income: this is way below the Group 1 countries and spends 5.6% of GDP on health Group 1 average of 51.8. care, 0.6% below the Group 1 average.

The Caritas Italy Perspective

The continuous economic crisis together with the Poverty varies much according to geographical restructuring of the labour market has resulted in a location and family typology. Indeed, poverty is growth in long-term unemployment, particularly principally concentrated in the agricultural-based among young and middle-aged people. This South of Italy, where 71.4% of the families are eventually led to the inability of the state to provide considered as being in absolute poverty. In the sufficient social welfare cover to the most vulnerable Centre and in the North of the peninsula, the family groups of the population such as the old, the sick, typology at absolute poverty risk is that with two and the homeless. ISTAT (Instituto Nazionale di people over 65 years old. The situation changes Statistica), the national statistical bureau, sets specific dramatically in the South where the family at risk is standards in order to measure absolute poverty - i.e. that with three or more children below the age of when a person lacks sufficient basic goods such as majority. From the point of view of the social food, housing, clothing, health. In 1999, 1,038,000 interpretation of the phenomenon, it is important to families were considered as living in “absolute underline that the old represent nowadays a category poverty”. at risk of poverty and this phenomenon is present in

57 those regions (the North) where once the social the household; immigrants who lack a socio-relational structure provided a high degree of social protection. network; old people living by themselves; drug The most vulnerable categories are lone-parent addicts and former prisoners. families, particularly where a woman is the head of

■ Luxembourg

Overview the Group 1 average. The proportion of people living with HIV is 0.16%, lower than the Group 1 average of Founded in 963, Luxembourg became a Grand Duchy 0.23. Luxembourg has a lower proportion of in 1815 and an independent state under the physicians (83.9%, of the average Group 1 country), Netherlands. It lost more than half of its territory to than other Group 1 countries and spends 5.4% of GDP Belgium in 1839, but gained a larger measure of on health care, 0.8% below the Group 1 average. autonomy. Full independence was attained in 1867. In 1957, Luxembourg became one of the six founding countries of the European Economic Community and Education & Development in 1999 it joined the EURO currency area. The stable, high-income economy features solid growth, low Surprisingly, the enrolment ratios are much lower than inflation and low unemployment. average: 74 for females and 71 for males. Public expenditure on education, at 4.0% of GNP, is 1.6% below the Group 1 average, and is one of the lower ratios in Demographics Group 1. Luxembourg has a low proportion of refugees: at 0.001% of the population, their number is well below With a total population of 0.4 million, Luxembourg is the Group 1 average of 0.1%. Unemployment for both one of the smallest Group 1 countries. Its annual sexes fell slightly from 1998-1999 though overall growth rate of 1.1 is the highest for Group 1. 91% of unemployment at 2.7% is much lower than the Group 1 the population live in urban areas, one of the highest average. Incomes for women are much higher than the in Group 1 and much higher than the Group 1 average Group 1 average, 22.7 against the 16.3, while men’s of 78% (though this is doubtless because the country salaries are much higher: 63.5 against the 31.9 for Group is tiny and has largely a service economy). Life 1 on average. The gap is wide between men and expectancy, at 77 years is above Group 1’s average, women: women report earning only 35 % of men’s and infant mortality, at 5 deaths per 1000, is just above income: the second lowest in Group 1.

The Caritas Luxembourg Perspective

A 1996 study done by the CEPS/INSTEAD31 shows that Especially for lone-parent families, there is the 12% of the people living in Luxembourg are below the problem of the costs of private child care. Indeed the national poverty line i.e. when the individual income is country lacks a sufficient number of affordable public lower than 60% of the average yearly income. The infrastructure providing childcare. Another general people with such a low income are mostly the young - problem is the high price of housing, particularly since under 25 years old - in search of a job. Lone-parent the development of the housing sector is hampered by families, together with the elderly, have to face serious financial speculation. difficulties related to economic and social exclusion.

31 58 Centre d’Etudes de Populations, de Pauvreté et de Politiques Socio-économiques/International-Networks for Studies in Technology, Environment, Alternatives, Development. ■ The Netherlands

Overview Education & Development

The country was a founding member of NATO and the With an enrolment ratio of 100 and 104 for men and EC, and participated in the introduction of the EURO in women respectively, the Netherlands’ men and women 1999. The Netherlands is a prosperous and open are educated far above the Group 1 average, though economy depending heavily on foreign trade. The public expenditure on education, at 5.1% of GNP is economy is noted for stable industrial relations, below the Group 1 average. This higher overall level of moderate inflation, a sizeable current account surplus, education is not reflected in the number of scientists and and an important role as a European transportation hub. engineers per 1000 which, at 2.2 per 1000, is slightly lower than the Group 1 average of 2.5 per 1000. The number of computers, at 359.9 per 1000 is much higher Demographics than the Group 1 average. Despite this statistic, the internet is not as widely used as this number would With a total population of 15.2 million, the suggest: 19% of the population use the internet. The Netherlands is just above the median for Group 1 proportion of refugees is 0.16% of the population, one of countries. Its 0.2 growth rate is in line with the average the highest in Group 1. As a whole women are more for Group 1. 89% of the population lives in urban likely to be unemployed than men, although areas, which is higher than the Group 1 average. unemployment, at 2.6%, is significantly lower than the Infant mortality, at 5 deaths per 1000, is slightly higher Group 1 average. Incomes in general are in line with than the Group 1 average. At 0.19% the proportion of Group 1 as a whole; income for both sexes is slightly people living with HIV is lower than other Group 1 higher than Group 1 average. Women earn about 51% countries, as is the proportion of women and children of men’s income: this is close to the Group 1 average. with HIV. The number of physicians per 1000 is 77% of the Group 1 average and public health expenditure, at 6.0% of GDP, is close to the Group 1 average.

The NetherlandsCaritas Perspective

The country is characterised by a high level of long- mentally handicapped people. Indeed even though term unemployment, combined with a low level of the government has taken certain measures to education and training for young people. The decrease poverty, the ways to obtain subsidies or categories most directly affected are: single mothers deductions on taxes and on rent for housing are so with children under 18 without a job; women older complicated and sometimes so humiliating, that than 65 without a pension; older migrant couples; people in need often do not make the effort. families with more than three children, physically or

■ Portugal

Overview Demographics

Portugal entered the EC in 1985, and is an upcoming With a total population of 10.4 million, Portugal’s capitalist economy with a per capita GDP two-thirds population is about median for Group 1 countries. Its that of the four big West European economies. The population growth rate is flat and thus just below the country qualified for the European Monetary Union 0.2 reported across Group 1. 63% of the population (EMU) in 1998 and joined with 10 other European lives in urban areas, which is lower than the Group 1 countries in launching the EURO on 1 January 1999. average. Life expectancy, at 75.2 years, is below

59 average for this Group. Portugal’s infant mortality rate and engineers: at 1.2 per 1000 this number is much of 5 deaths per 1000 is above the Group average. At lower than the Group 1 average of 2.5 per 1000. The 0.74% the proportion of people living with HIV is higher number of computers, at 93 per 1000, is one of the than other Group 1 countries, as is the proportion of lowest (only Greece has fewer) in Group 1 – which women and children with HIV. Portugal has a slightly averages 297.3 per 1000 people. The internet is not lower number of physicians (96.2% of Group 1 on very widely used: only 7% of the population use the average) and spends less on public health: 5.2% of GDP, internet. Unemployment decreased significantly for which is 1% below the Group 1 average. women and slightly for men from 1998-1999, though women are still much more likely to be unemployed Education & Development than men are. Unemployment, at 4.3%, is significantly lower than that of other Group 1 countries. Incomes in With enrolment ratios of 99 and 94 respectively, general are lower than other Group 1 countries: women Portugal’s men and women attend school above the earn 11.2 against the 16.3 average and men earn 21.4 Group 1 average, and, at 5.8% of GNP, public against the 31.9 average. The gap between men and expenditure on education is slightly more than the women is wide, but no more so than for other Group 1 Group 1 average. This higher overall level of education countries: women make about 52.3% of men’s income. is not, however, reflected in the number of scientists

The Caritas Portugal Perspective

The county experiences the phenomenon of rural many homeless people live in extremely poor conditions. poverty: those people living in the countryside with low Moreover, technological innovations together with the education find it difficult to pursue any other activity than restructured economy have been achieved through a low that related to agriculture. The living standard is usually level of social benefits for a numerous population. very low and most people live below the poverty line. Migrants and refugees are the people most directly The towns are characterized by very poor suburbs where affected by the lack of social security.

■ Spain

Overview at 6 deaths per 1000, is higher than the Group 1 average, but in line with its neighbour - Portugal. In the second half of the 20th century, Spain has Also like Portugal, the incidence of HIV is higher: played a catch-up role in the western international 0.58% of the population live with HIV and the number community. Continuing concerns are large-scale of women with HIV is the highest (proportionally) in unemployment and the Basque separatist movement. Group 1. Though Spain has a higher proportion of Spain's mixed capitalist economy supports a GDP physicians (130.8%, of the average Group 1 country), that on a per capita basis is 80% that of the four it only spends 5.4% of GDP on health care, 0.8% leading West European economies. below the Group 1 average.

Demographics Education & Development

With a total population of 39.9 million, Spain is one of With an enrolment ratio of 99 for females and 91 for the larger Group 1 countries – just after France, males, more women have access to education than Germany, Italy and the UK. Its growth rate of –0.1 is men. Whilst the enrolment ratio for women is higher below the average for Group 1. 77% of the than the Group 1 average, the enrolment ratio for men population lives in urban areas, in line with other is lower. Public expenditure on education at 5.0% of Group 1 countries. Life expectancy, at 78.1 years is GNP is below the Group 1 average; and this number is just below Group 1’s average. Infant mortality, which reflected in the number of scientists and engineers per

60 1000, which at 1.3 per 1000 is lower than the Group 1 significantly from 1998-1999, although many more average of 2.5 per 1000. The number of computers at women than men were registered as unemployed in 119.4 per 1000 people is lower than the average Group general. Unemployment at 14.0%, is the highest of all 1 country and the number of internet users, at 11.66% Group 1 countries. Incomes are lower than other Group (below the Group 1 average of about 20%) further 1 countries: women earn 10.7 against the 16.3 average reinforces the idea that Spain’s does not have a high and men earn 25.7 against the 31.9 average. level of IT sophistication. The proportion of refugees is Interestingly, the women’s salaries are lower than only 0.01% of the population, well below the Group 1 Portugal and thus the gap between men and women is average of 0.1%. Unemployment for both sexes fell also wider: women make about 41.7% of men’s income.

The Caritas Spain Perspective

In Spain, high levels of poverty still persist. A number of against poverty, is the structure of households. Lone estimates, which may vary depending on the parent households are no longer statistically methodology used, indicate that between 15% and insignificant. The subject of employment, i.e. the twin 20% of the Spanish population is poor. These issues of work and unemployment, is one where the percentages are much higher than the average in the poorest of the poor (the extreme poor) are seriously other European Union Member States. The figure is disadvantaged, and where those in precarious around 14% in the countries included in the ECHP situations are somewhat less disadvantaged. (European Community Household Panel, in Spanish PHOGUE - plan de hogares de la Union Europea), The percentage of the extremely poor suffering from excluding Austria, Finland and Sweden, which have unemployment and under-employment, compared to rates lower than the average. The poor are found in the percentage of the economically active population, is particular in the following population groups: young a staggering 93.6%, almost the entire group of extreme people aged 16 to 24, single people, individuals with poor. This problem, together with their young age which little or no schooling, those living in large households of prevents them from gaining access to social protection, 5 or more people, lone parent households, the goes a long way in explaining their situation. Looking at unemployed and economically inactive and, amongst the level of education, one must remember that illiteracy the economically active population, are those who work is very prevalent amongst the extremely poor, in a few hours but are not paid a wage. Some of the trends particular amongst youth. This situation is reflected in that began to appear at the start of the 1990s have the problems of truancy and school drop-outs. Of the worsened over the decade and have altered significant 75,000 children of school age who do not attend school, aspects of poverty. 52.1% are living in extreme poverty. Apart from the fact that they will be facing unemployment, a lack of social It is now of particular concern to see that young people protection and many material deficiencies, a cycle of are increasingly vulnerable and, allowing for the limits of impoverishment arising from the chronic nature of these statistics, have become the leading risk group. One problems has been observed, two examples of which are area where changes have been more likely to occur, and long-term unemployment and the appearance of which is inadequately covered by public intervention "hidden" unemployment.

■ Sweden

Overview Demographics

Sweden's long-successful economic formula of a With a total population of 8.9 million, Sweden’s capitalist system combined with substantial welfare population is the largest Scandinavian country. Its elements has recently been undermined by high growth rate is slightly negative and thus lower than unemployment, rising maintenance costs, and a the 0.2 reported across Group 1. 83% of the declining position in world markets. Sweden joined the population lives in urban areas, which is higher than EU in 1995, and did not introduce the EURO in 1999. 61 the Group 1 average. Life expectancy, at 79.3 years, reflected in the 3.8 scientists and engineers per 1000 is above average for this Group; Sweden’s infant which is much higher than the Group 1 average of 2.5 mortality rate at 3 deaths per 1000 is significantly per 1000. The number of computers, at 451 per 1000 lower than the average. At 0.08% the proportion of is higher than the Group 1 average. As in other people living with HIV is lower than other Group 1 Scandinavian countries the internet is very widely countries, as is the proportion of women and children used: 42% of the population use the internet. The with HIV. Sweden’s socialised health system is proportion of refugees is 0.19% of the population, on reflected in both the number of physicians (which at the high end for Group 1 countries. Unemployment 311/1000 is just below the average of Group 1) but decreased for women and not for men from 1998- also in public health expenditure, which, at 6.7% of 1999, and on the whole men are more likely to be GDP is 0.5% above the Group 1 average. unemployed than women. Unemployment, at 6%, is in line with other Group 1 countries. Incomes for women are higher than Group 1 as a whole; women Education & Development earn 18.0 against the 16.3 average though men make 27.07 against the 31.9 average. As in other With enrolment ratios of 107 and 95 respectively, Scandinavian countries, the income gap between Sweden’s men and women are educated well above men and women is narrower in Sweden than in most the Group 1 average, and public expenditure on other Group 1 countries: women make about 67% of education, at 8.3% of GNP is well above the Group 1 men’s income. average. This higher overall level of education is

The Caritas Sweden Perspective

During the 1990s the social and economic situation Indeed from 1990 to 1997 the group of people who has deteriorated significantly for the most vulnerable received social assistance increased from 6% to 8.5%. groups in Sweden. Two ways of defining poverty are: Unemployment is the main cause of such poverty. The those with an income below 50% of the median categories of people most directly affected are the income and those who live through the help of social young, immigrants, lone parent families and people assistance. The number of people below this poverty suffering from problems related to mental illness or line increased from 5% to 7% during the 1990s. drug addiction.

■ United Kingdom

Overview Demographics

A member of the EU, the UK has chosen to remain With a total population of 59.3 million, the UK is the outside of the European Monetary Union for the time second largest country in Group 1, after Germany. Its being. A leading trading power and financial centre, growth rate is slightly positive and just below the 0.2 it has an essentially capitalistic economy, one of the reported across Group 1. 89% of the population lives quartet of trillion dollar economies of Western in urban areas, which is much higher than the Group Europe. Over the past two decades the government 1 average. Life expectancy, at 77.2 years, is below has greatly reduced public ownership and contained average for this Group and the UK’s infant mortality the growth of social welfare programmes. rate at 6 deaths per 1000 is among the highest in Group 1. At 0.11% the proportion of people living with HIV is lower than most Group 1 countries, as is the number of women and children with HIV. The UK’s bad reputation for health care is borne out by the numbers: there are only 164 physicians/1000 (way

62 below the 324.3 physicians/1000 which is average of 1 average. Despite these numbers, only 2.5% of the Group 1) and public health expenditure, at 5.6% of population uses the internet; this is the lowest in GDP, is 0.6% below the Group 1 average. Group 1. The proportion of refugees is 0.15% of the population, which is on the high side for Group 1 countries. Unemployment decreased for women and Education & Development for men from 1998-1999, and on the whole men are more likely to be unemployed than women are. With enrolment ratios of 112 and 100 respectively, Unemployment, at 5.5%, is lower than other Group 1 the UK’s men and women are educated well above countries. Incomes for women are higher than Group the Group 1 average, though public expenditure on 1 as a whole; women make 19.7 against the Group 1 education, at 5.3% of GNP is below the Group 1 average of 16.3, whereas men make 27.6 against the average. Despite this lack of expenditure, there are Group 1 average of 31.9. This is the narrowest gap 2.4 scientists and engineers per 1000, just below the between men and women’s earnings in Group 1: UK Group 1 average of 2.5 per 1000. The number of women earn some 72% of men’s income, compared computers, at 302 per 1000 is higher than the Group to 52% across Group 1 as a whole.

The Caritas of England and Wales Perspective

Caritas Europa has two member organisations in experience. Indeed, over one in three of the population England and Wales: Catholic Fund for Overseas lives in a household without paid work: in which all Development (CAFOD) and the Catholic Agency for adults are either pensioners or jobless non-pensioners. Social Concern (CASC). Labour market exclusion remains an important risk factor During the 1980s incomes substantially diverged and in for both service exclusion and exclusion from social the late 1990s there are signs that the income gap is relations. The proportion of people in poverty is higher again widening. Problems of dislocation, insecurity, amongst: lone-parent households, separated/ divorced multiple deprivation, conflict, divided loyalties and households; those who left school at 16 or under; children divided activities all result. Major questions are being of non-white ethnicity. There is a lack of a concerted posed for the future of social cohesion. A recent study national strategy in order to address the problem. The by the Joseph Rowntree Foundation (JRF) found that construction of a scientific consensus - to improve roughly 9.5 million people in Britain today cannot afford measurement, explain the severity and cause of poverty adequate housing conditions. About 8 million cannot so that the right policies are selected, and show how the afford one or more essential household goods. This is role of public and private services can be extended to partly due to the lack of paid work and to the underpin national life – would be a key step in achieving inadequate income that a high percentage of adults the objectives set by the English Government.

The Caritas Scotland Perspective

The Caritas member organisation in Scotland is the associations and a small decrease in private renting. The Scottish International Aid Fund (SCIAF). change in tenure patterns is important when coupled with the evidence that local authority housing has The pattern of housing tenure has been transformed in become a residual sector for people with low incomes. recent years with a steady increase in the proportion of Lone parents, in particular, are under-represented dwellings that are owner-occupied and a decrease in among owner-occupiers. Moreover the reforms of the renting from local authorities or other public sector welfare system in the past years have placed a great bodies. At the same time there has been an increase in deal of emphasis on ‘individual self-help’ and the safety the proportion of dwellings rented from housing net of social security has been much reduced.

63 ■ Andorra

Sandwiched between France and Spain, in the industry). Apart from tourism, Andorra is involved in Pyrenees mountain region, is the tiny principality of cattle raising, timber, tobacco production and, given Andorra. The CIA 2001 Factbook estimates its its duty free and tax haven status, banking. It imports population, at July 2001, as just over 67,000 people. most of its food, primarily from its two major trading Previously isolated and impoverished, Andorra has, partners, France and Spain. Indeed France and Spain since World War II, become a booming tourist resort, provide the two Heads of State - the President of especially for skiing enthusiasts. Approximately 9 France and the Bishop of Seo de Urgal in Spain - for million tourists visit Andorra annually. It has an this tiny parliamentary democracy. Andorra is a estimated labour force (1998 figures) of almost member o the EU Customs Union and is treated as an 31,000 people. 78% of the labour force is employed EU member for trade in manufactured goods (mainly in the service industry and tourism accounts for 80% cigars, cigarettes and furniture) i.e. there are no tariff of Andorra's GDP. (Of the remainder of the barriers and as a non-EU member for agricultural workforce, 1% is employed in agriculture and 21% in products.

The Caritas Andorra Perspective

Andorra is a country characterised by a high level of employees have to choose either to remain in the GNP per capita, high economic growth, and high country and be highly exposed to social risks or to employment. Nevertheless this apparent well being is emigrate. This situation is even worse for those achieved through a special policy from the part of the immigrants that are not in order with their official state directed to cut the costs in the labour market documents or that are not registered as residents in and in the field of social protection. Indeed, the the country for at least three years. In both cases, the overall growth of the country is mainly attained immigrant does not have the right either to social and through the maintenance of low costs in the labour unemployment benefits or to social protection. The market. This policy of low-costs results in the lack of same applies for those workers, nationals of Andorra, legislation for trade unions; in the high rotation of whose contribution fee does not reach the minimum employees working in firms; in the difficulty in having threshold fixed by the Caja Andorrana de Seguridad access to social protection and unemployment Social (CASS) which is the national social security benefits and in the lack of adequate training and bureau: they too do not have the right to social specialisation for workers. This does not help in the protection. In this respect, the lone parent families, formation of a highly diversified labour force and generally with the woman as head of household, are contributes to making Andorra a fiscal paradise. a particular cause for concern especially in those cases where the lone parent is in a situation (e.g. Taking into account the weak social protection, the unemployment, immigration) which does not provide lack of support given to training and, as a any social safety net. Such a person immediately falls consequence, the difficulty in finding a better job, the into serious poverty. situation of workers is highly vulnerable and

■ Iceland

Overview first-rate by world standards. Iceland's Scandinavian- type economy is basically capitalist, yet with an Limited home rule from Denmark was granted in extensive welfare system, low unemployment, and a 1874 and complete independence attained in 1944. remarkably even distribution of income. In the Literacy, longevity, income, and social cohesion are absence of other natural resources (except for

64 abundant hydrothermal and geothermal power), the Education & Development economy depends heavily on the fishing industry, which provides 70% of export earnings and employs With an enrolment ratio of 91 for females and 86 for 12% of the work force. males, more women have access to education than men do – though the enrolment ratios are below the Group 1 averages. Public expenditure on education, Demographics at 8.1% of GNP is well above the Group 1 average and this number is reflected in the number of With a total population of 0.3 million, Iceland is one scientists and engineers per 1000 which at 3.2 per of the smallest Group 1 countries. Though low, its 1000 is higher than the Group 1 average of 2.5 per growth rate at 0.6% is above average for Group 1. 1000. The number of computers at 414 per 1000 92% of the population lives in urban areas, which is people is higher than the Group 1 average. The much higher than the Group 1 average. Though life internet has high penetration: 28.3% of the expectancy, at 78.9 years, is slightly above average population use the internet. The proportion of for this Group, infant mortality, at 5 deaths per 1000, refugees is only 0.08% of the population, slightly is slightly higher than the Group 1 average. At 0.14% lower than the Group 1 average of 0.1%. More the proportion of people living with HIV is lower than women than men were unemployed in general in other Group 1 countries, as is the proportion of 1998-1999, though unemployment, at 5.3%, is women and children with HIV. Iceland has just above slightly lower than the Group 1 average. While the average number of physicians per 100,000: incomes in general are in line with Group 1 as a 326/1000 as opposed to 324/1000. whole, the earnings gap is relatively narrow between men and women, who earn about 70% of men’s income.

■ Malta

Overview lower than Group 1 on average. Malta has fewer physicians than other Group 1 countries - only 80.5% Britain formally acquired possession of Malta in 1814. of the average Group 1 country. The island staunchly supported the UK through both World Wars and remained in the Commonwealth when it became independent in 1964. A decade later Education & Development Malta became a republic. Over the last 15 years, the island has become a major freight transit point, With a ratio of 79 for females and 82 for males, Malta financial centre, and tourist destination. It is an is atypical of the trend of more women having access official candidate for EU membership. to education than men. In general the enrolment ratios are far below the Group 1 average of 94.7 for females and 91 for males. Public expenditure on Demographics education, at 5.1% of GNP, is below the Group 1 average. Many more men than women were With a total population of 0.4 million, Malta is one of unemployed in general in both 1998 and 1999, and the smallest Group 1 countries. With a growth rate of unemployment, at 4.5%, is lower than the Group 1 0.4, it is above average for Group 1. 90% of the average. Incomes for both groups are much lower people live in urban areas as opposed to a Group 1 than Group 1 as a whole, and the gap is the widest in average of 77.8%. Life expectancy, at 77.6 years is in Group 1 between men and women, who report line with Group 1’s average, and infant mortality, at 6 earning about 27% of a man’s income: this is deaths per 1000, is higher than the Group 1 average. substantially lower than the Group 1 average of 52%. The proportion of people living with HIV is 0.12%,

65 The Caritas Malta Perspective

The slow down of the rate of growth of the economy national territory, poverty manifested itself as is the cause of poverty. A percentage increase in disability, family stress and depression. In between economic growth has less employment promotion 50% and 80% of the same territory, poverty was and poverty alleviating effects than it did in earlier evident through, in descending order of frequency, as periods. According to the survey pursued by the dependency, housing, illness, schooling, immigration, Poverty Watch, between 80% and 90% of Malta imprisonment, family violence and drug addiction.

■ Monaco

Monaco, like Andorra, is also a principality. It is the urban. Again like Andorra, it is a popular tourist resort second smallest independent state in the world, after of stunning scenery, pleasant climate and, of course, the Holy See, and occupies a land area of just 1.95 its world famous casino. Similarly, Monaco has no square kilometers on the French Mediterranean income tax, low business taxes and operates as a tax coast. Monaco is a constitutional monarchy and has haven both for individuals who have established been governed, since the 15th century, by the residency and for foreign companies which have set Grimaldi family. It does not hold elections nor does it up businesses and offices. Living standards are high publish figures on revenue etc. It has no natural - comparable to those in prosperous metropolitan resources and there is no agricultural activity. Its areas of France. population - an estimated 32,000 are almost entirely

■ Norway

Overview with HIV is lower than other Group 1 countries, as is the proportion of women and children with HIV. The Norwegian economy is a prosperous bastion of Norway’s strong health system is reflected in both the welfare capitalism, featuring a combination of free number of physicians (which is 127% of Group 1 on market activity and government intervention. The average) and in public health expenditure, which, at government controls key areas, such as the vital 7.4% of GDP, is 1.2% above the Group 1 average. petroleum sector. Norway is not a member of the EU.

Education & Development Demographics With enrolment ratios of 99 and 95 respectively, With a total population of 4.4 million, Norway’s Norway’s men and women are educated above the population is smaller than most Group 1 countries. Its Group 1 average, and public expenditure on growth rate is slightly positive and just above the 0.2 education, at 7.7% of GNP, is well above the Group 1 reported across Group 1. 75% of the population lives average. This higher overall level of education is in urban areas, which is close to the Group 1 average. reflected in the 3.7 scientists and engineers per 1000 Life expectancy, at 78 years, is above average for this which is much higher than the Group 1 average of 2.5 Group as is Norway’s infant mortality rate of 4 deaths per 1000. This figure may well be influenced by per 1000. At 0.07% the proportion of people living Norway’s dependence on oil and, therefore, on the

66 necessary skilled workforce. The number of Unemployment, at 3%, is, however, significantly lower computers, at 446 per 1000, is higher than the Group than that of other Group 1 countries. Incomes in 1 average. As in other Scandinavian countries, the general are higher than Group 1 as a whole; women internet is very widely used: 45% of the population earn 22.0 against the 16.3 Group average and men use the internet. The proportion of refugees is 0.06% earn 34.96 against the 31.9 average. As in other of the population, lower than the Group 1 average of Scandinavian countries, the gap between men and 0.1%. Unemployment decreased for women but not women is relatively narrow: women make about 63% for men from 1998-1999, and on the whole men are of men’s income. more likely to be unemployed than women.

The Caritas Norway Perspective

The general standard of living in Norway is very high. In medical benefits in case of sickness and maternity. this respect, as far as social security is concerned, it is important to note that all Norwegian citizens are Nevertheless the country experiences a certain level of provided with basic health services free of charge, as poverty mostly due to the lack of access to paid well as a compulsory public school free of charge. employment (for example because of illness, drug Because of the scope of the main general social addiction). Since many rights and benefits within the insurance schemes in Norway, in which all residents are national insurance scheme and the social security compulsorily insured under the National Insurance scheme are derived from paid employment, the lack of Scheme, people do not find huge problems in relation access to employment implies not only a lack of cash in to the cover offered by social security. Persons insured hand today, but also a lack of benefits in the future. In under the National Insurance Scheme are entitled to the general terms, the categories most affected by a lack of following pensions and benefits: old age, survivors and access to resources are people that for various reasons disability pension; basic benefit and attendance benefit are unable to benefit fully from the National Insurance in case of disablement, occupational injury benefit; System, or that are subject to direct or indirect benefits to lone parents; cash benefits in case of discrimination regarding access to resources, such as sickness, maternity, adoption and unemployment and paid employment.

■ Switzerland

Overview Demographics

Switzerland, a prosperous and stable modern market With a total population of 7.2 million, Switzerland’s economy, with a per capita GDP 20% above that of population is below the median for Group 1 the big western European economies, experienced countries. Its growth rate is slightly negative and thus solid growth of 3% in 2000, but growth is expected to lower than the 0.2 reported across Group 1. 68% of fall back to about 2% in 2001. The Swiss in recent the population lives in urban areas, which is lower years have brought their economic practices largely than the Group 1 average. Life expectancy, at 78.6 into conformity with the EU's to enhance their years, is just above the average for Group 1 and international competitiveness. Switzerland’s infant mortality rate at 3 deaths per 1000 is significantly lower. The total proportion of people living with HIV is the second highest (behind Spain) in Group 1 as is the HIV-infected proportion of women, though children seem largely uninfected. The number of physicians is in line with Group 1, at 323/1000, but public health expenditure, at 7.6% of GDP is 1.4% above the Group 1 average.

67 Education & Development internet. The proportion of refugees is 0.19% of the population, on the high end for Group 1 countries. With enrolment ratios of 107 and 95 respectively, Unemployment decreased for women but not for men Switzerland’s men and women are educated well from 1998-1999, and, on the whole, men are more above the Group 1 average, and public expenditure likely to be unemployed than women. Unemployment, on education, at 8.3% of GNP is well above the Group at 6%, is in line with other Group 1 countries. Incomes 1 average. This higher overall level of education is for women are higher than Group 1 as a whole; women reflected in the 3.8 scientists and engineers per 1000 earn 18.0 against the 16.3 average although men earn which is much higher than the Group 1 average of 2.5 27.07 against the 31.9 average. The income gap per 1000. The number of computers, at 451 per 1000 between men and women is narrower in Switzerland is higher than the Group 1 average. The internet is than in most other Group 1 countries: women earn very widely used: 42% of the population use the about 67% of men’s income.%.

The Caritas Switzerland Perspective

The reasons for poverty in Switzerland are of an The number of people living in households of the economic, political and social nature. The Swiss working poor rose form 250,000 (1992) to 414,000 economy offers a large number of jobs requiring little (1999)32. Another serious reason for the upsurge of education and qualification. Wages are therefore also poverty in the country is due to the lack of a modern low. During the recession of the ‘80s-‘90s, there has family policy on the part of the state. The welfare state been a ten-year period without wage increases. These continues focusing on small families where the father low-paid, low skill jobs were mostly occupied by goes to work and earns enough money to provide for workers from abroad, and women. During the same his family while the mother is in charge of the family as period there has been a structural change in industry, a housewife. This picture has not been in line with which has made labour relations even more precarious. reality for a long time now. The percentage of women To date, the trade unions have not succeeded in their working in gainful employment has clearly risen. The attempts to fight the negative aspects of flexibility and concept women have of themselves and their roles to establish contractually agreed limits. In spite of the have also changed dramatically. In the meantime, a low and stagnating wages, many poor people are broad debate on a new family policy has started; confronted with increasing expenditures for products covering topics such as assistance for childcare, tax and services provided by the state (e.g. postal relief for children and large families, day schools and services, telecommunications, and railroad transport) enhanced supplementary welfare assistance for poorer and for health services (e.g. health insurance families. Poverty in Switzerland is, more than anything, contributions). This has further exacerbated the an expression of an unequal distribution policy. situation of poor people and people threatened by poverty in Switzerland.

32 68 Federal Statistics Agency: Working Poor in der Schweiz. In Info social, No. 5. Bern 2001 Group 2: EU Accession Countries

69 ■ Bulgaria

Overview Education & Development

Bulgaria, a former communist country struggling to Bulgaria’s women have a higher enrolment ratio than enter the European market economy, suffered a major men, but their ratio of 76 is slightly below the Group economic downturn in 1996 and 1997, with triple digit 2 average of 78 for women and 75.5 for men. This inflation and GDP contraction of 10.6% and 6.9% slightly lower overall level of education is not respectively. The current government - which took reflected in the number of engineers per 1000 which office in May 1997 after pre-term parliamentary at 1.7 per 1000 is slightly higher than the Group 2 elections - stabilised the economy and promoted average of 1.6 per 1000. Public expenditure on growth by implementing a currency board, practising education, however, at 3.2% of GNP, is much lower sound financial policies, invigorating privatisation, and than the Group 2 average of 5.1% of GNP. The pursuing structural reforms. number of computers per 1000 is much lower than the average Group 2 country, and the internet is not widely used: - less than 2.9% of the population use Demographics the internet as compared to a Group 2 average of about 6.5%. At 0.0014%, refugees barely register – a With a total population of 8 million, Bulgaria’s trend that continues through Group 2 countries – the population is median for Group 2 countries. Its annual average is 0.002%. From 1998 – 1999, unemployment growth rate of -1 is slightly below average for Group 2, increased for both men and women, though women and life expectancy, at 70.8 years, is below average were slightly less likely than men to be unemployed. (71.5) for this Group. In Bulgaria, more people (69%) As a whole, unemployment, at 17.7%, is higher than live in urban areas than is usual for Group 2 (65.1%) on the Group 2 average of 11.2%. Incomes in general are average. Infant mortality, at 14 deaths per 1000, is in low: women make 3.95K compared with the 6.2K line with the 14.9 deaths per 1000 registered across average and men make 6.3K compared with a Group Group 2. The incidence of HIV in the population as a 2 average of 10.2K. Women make about 63% of whole, at 0.01% is slightly lower than other Group 2 men’s income: this is compared to about 61% across countries (0.04).There are 345 physicians per 100,000 Group 2. people, slightly higher lower than Group 2 on average (122% of the average). Public health expenditure is 1.2% below the Group I average of 5.0% of GDP.

The Caritas Bulgaria Perspective

The country is characterised by low productivity and economic landscape is reflected in the demographic difficult social situation. Indeed the 1999 Kosovo war situation insofar as the birth rate is noticeably diverted foreign investment and adversely affected the decreasing whereas the death rate is increasing. situation of Bulgarian exports. As a consequence of low economic growth, living standards are The groups most directly affected by the unstable unsatisfactory, mainly because of the increase in social and economic situation of the country are the unemployment and the decline of income. The pensioners suffering from the minimal pension average wage in 2000 was just 127 Euro whereas the scheme; the disabled people suffering from the lack of minimum wage was 40 Euro. Many young people a sufficient health insurance system; the unqualified would rather leave the country than stay with limited and the unemployed. Moreover, in 2000, the average perspectives for the future so that the emigration rate social pension was 40 Euro and the minimum pension is quite high. Moreover, purchasing power has was just 23 Euro. In this respect, the Roma people fall declined sharply, thus bringing families in constant in the category that registers the highest difficulty with the household incomes: families spend unemployment. This is due to illiteracy or low an average of 50% of their income on food. With 16% qualifications, compounded by the high drop-out rate of the population over 65 years old, the socio- from school by Roma children.

70 ■ Czech Republic

Overview Education & Development

Now a member of NATO, the Czech Republic has The Republic’s women have a slightly higher moved towards integration into the world market. enrolment ratio than men, but the ratio of 70 is Basically one of the most stable and prosperous of the slightly below the Group 2 average of 78 for women post-Communist states, the Czech Republic has been and 75.5 for men. This slightly lower overall level of recovering from recession since mid-1999. The EU put education is reflected in the number of engineers per the Czech Republic just behind Poland and Hungary in 1000 which at 1.2 per 1000 is lower than the Group 2 preparations for accession, which will give further average of 1.6 per 1000. Public expenditure on impetus and direction to structural reform. education, at 5.1% of GNP, is in line with the Group 2 average of 5.1% of GNP. The number of computers per 1000 is much higher (107.2/1000) than the Demographics average Group 2 country, but the percentage of internet users is just above average: about 6.8% of With a total population of 10.3 million, the Czech the population use the internet as compared to a Republic’s population is slightly above median for Group 2 average of about 6.5%. At 0.00133%, Group 2 countries. Its annual growth rate of –0.2 is refugees barely register – a trend that continues roughly average for Group 2, and life expectancy, at through Group 2 countries – the average is 0.002%. 74.3 years, is above the 71.5 recorded across Group 2. From 1998 – 1999, unemployment increased for both The Czech Republic has the highest urban population men and women, women were more likely than men (75%) in Group 2. Infant mortality, at 5 deaths per to be unemployed, though the gap narrowed in 1999. 1000, is much lower than the 14.9 deaths per 1000 Unemployment, at 8.7%, is lower than that of Group registered across Group 2 and is more in line with 2 which averages 11.2%. Incomes in general are Group I. The incidence of HIV in the population as a higher than Group 2 on average: women earn 10.2K whole, at 0.04% is average for Group 2, though the compared with 6.2K - the second highest after number of women is slightly higher. There are 303 Slovenia in Group 2, and men earn 15.98K - also physicians per 100,000 people, slightly higher than second highest compared with a Group 2 average of Group 2 on average (108% of the average). Public 10.2K. Women make about 64% of men’s income: this health expenditure of 6.7% of GDP is significantly is compared to about 61% across Group 2. higher than the Group I average of 5.0% of GDP.

The Caritas Czech Perspective

The country's economy has been developing at high country. There are instead a number of specific speed in the recent years. Nevertheless, the individuals or groups of people who temporarily find unemployment rate remains at a rather high level. themselves in social need. Poverty is not considered to be systematic in the

■ Estonia

Overview Demographics

Estonia joined the World Trade Organisation in With a total population of 1.4 million, Estonia is the November 1999 - the second Baltic state to join - and smallest Group 2 country and also has the lowest continues its EU accession talks. growth rate of –1.1. Life expectancy, at 70 years, is

71 just below the 71.5 recorded across Group 2. Estonia Education & Development has a slightly higher than average urban population: 69% compared with 65% on average in Group 2. Estonia’s people have the highest enrolment ratio in Infant mortality, at 17 deaths per 1000, is sharply Group 2: 89 for women and 84 for men. This high higher than the 14.9 deaths per 1000 registered enrolment ratio is reflected in the number of across Group 2 The incidence of HIV in the engineers per 1000 which at 2 per 1000 is much population as a whole, at 0.04% is average for Group higher than the Group 2 average of 1.6 per 1000. 2, as is the number of women who report having HIV. Public expenditure continues this focus on education: There are 297 physicians per 100,000 people, slightly at 7.2% of GNP it is 2.1% above the Group 2 average higher than Group 2 on average (105% of the of 5.1% of GNP. The number of computers per 1000 average). Public health expenditure of 5.5% of GDP is is much higher (135/1000) than the average Group 2 0.5% above the Group 2 average of 5.0% of GDP. country, as are the internet users who are 14.3% of the population as compared to a Group 2 average of about 6.5%. From 1998 – 1999, unemployment increased for both men and women, though men were more likely than women to be unemployed. Unemployment, at 11.7% is slightly higher than Group 2 which averages 11.2%.

The Caritas Estonia Perspective

The economy of the country is characterised by households in the total population begins with the noticeably low production accompanied by an overall third child, since the child support benefit is not increase of general costs and unemployment. These sufficient to compensate the necessary expense: the difficulties, together with the low income per capita, benefit provided is inferior to the reduction in income have created a scant and tight national budget unable for the additional child. Because of the high to provide sufficient cover to the social welfare needs accommodation costs, pensioners represent another of the population. The social gap is particularly serious category at risk. Indeed, the cost of housing often for Estonia given the fact that the country is represents more than half of the pensioners’ income so characterised by a young population with an that the person is compelled to restrict his/her unfavourable proportion between the wage earners expenditures on food, health and medicines and other and their dependants. A large increase in poor social expenditures.

■ Hungary

Overview Demographics

Following the collapse of the Soviet Union in 1991, With a total population of 10 million, Hungary is Hungary developed close political and economic ties slightly above median for Group 2 countries. Its annual to western Europe. It joined NATO in 1999 and is a growth rate of –0.5 is just below average for Group 2, frontrunner in a future expansion of the EU. The and life expectancy, at 71.1 years, is in line with the private sector accounts for over 80% of GDP. Foreign 71.5 recorded across Group 2. The urban population ownership of and investment in Hungarian firms is of 64% is roughly average for Group 2. Infant mortality, widespread, with cumulative foreign direct investment at 9 deaths per 1000, is much lower than the 14.9 totalling $23 billion by 2000. deaths per 1000 registered across Group 2 but still higher than the 4.1/1000 registered in Group 1. The incidence of HIV in the population as a whole, at

72 0.05%, is just above average for Group 2, although the of GNP is 0.5% lower than the Group 2 average of number of women with HIV is slightly lower. There are 5.1% of GNP. The number of computers per 1000 is 357 physicians per 100,000 people, higher than Group higher (74.7/1000) than the average Group 2 country, 2 on average (127% of the average). Public health but the number of internet users average 6.0% of the expenditure of 5.2% of GDP is 0.2% higher than the population, slightly lower than the 6.5% average of Group 2 average of 5.0% of GDP. Group 2. At 0.00781%, refugees barely register – a trend that continues through Group 2 countries – but is higher than the average of 0.002% and second Education & Development highest overall in Group 2. From 1998 – 1999, unemployment decreased for both men and women, Hungary’s women have a slightly higher enrolment and men were more likely than women to be ratio than men, but the enrolment ratio of 83 for unemployed. Unemployment, at 9.4% is lower than women and 79 for men is higher than the Group 2 that of Group 2 which averages 11.2%. Incomes in average of 78 for women and 75.5 for men. This general are higher than Group 2 on average: women higher enrolment ratio is not reflected in the number earn 8.3K compared with 14.7K and men earn 14.8K of engineers per 1000 which at 1.1 per 1000 is lower compared with a Group 2 average of 10.2K. Women than the Group 2 average of 1.6 per 1000. Public earn about 57% of men’s income: this is compared to expenditure on education is also lower, and at 4.6% about 61% across Group 2.

The Caritas Hungary Perspective

The “new poverty” appeared in the country from the Regional poverty is caused mainly by the downturn of beginning of the change of the regime and the the production of the most active industry in transition to the new economy. Those unemployed Northeast Hungary. A solution to poverty was people who could not adapt themselves to the expected from economic growth and the social changing conditions, to the new environment, to the security system. However, the social welfare system reallocation of manpower and to the changing labour did not provide sufficient cover for the people in markets are the people most directly affected. Workers need. In the last decade Roma people group drifted who lack proper qualification (e.g. the agricultural toward the periphery, but in the last few years great workers) are the likely victims of poverty, together with efforts were made (from the side of the state and those people living in small villages far from the from the third sector) to improve the Roma people’s developed regions. The lack of proper communication situation, particularly with regard to education. and infrastructure facilities exacerbate social exclusion and widen the gap between rural and urban areas.

■ Latvia

Overview Demographics

Latvia continues to revamp its economy for eventual With a total population of 2.4 million, Latvia is one of integration into various Western European political the smaller Group 2 countries. Its annual growth rate of and economic institutions. Latvia officially joined the –0.6 is slightly below average for Group 2, and life World Trade Organisation in February 1999 - the first expectancy, at 69.6 years, is below the 71.5 recorded Baltic state to join - and was invited at the Helsinki EU across Group 2. 69% of Latvia’s population is urban Summit in December 1999 to begin accession talks in compared with an average of 75% for Group 2. Infant early 2000. mortality, at 17 deaths per 1000, is higher than the 14.9 deaths per 1000 registered across Group 2. The incidence of HIV in the population as a whole, at 0.11%,

73 is the highest in Group 2, as is the number of women expenditure on education, however, at 6.5% of GNP, is with HIV. There are 282 physicians per 100,000 people, 1.4% above the Group 2 average of 5.1% of GNP. The in line with the Group 2 average. Public health number of computers per 1000 is just below the expenditure at 4.2% of GDP is considerably lower - average (82/1000) of the average Group 2 country, and 0.8% than the Group 2 average of 5.0% of GDP. the number of internet users is also lower: 4.4% of the population use the internet as compared to a Group 2 average of about 6.5%. From 1998 – 1999, Education & Development unemployment increased for both men and women; men were more likely than women to be unemployed. Latvia’s women have a slightly higher enrolment ratio Unemployment, at 7.8% is lower than that of Group 2 than men: the enrolment ratios for women and men at which averages 11.2%. Incomes are lower than Group 2 83 and 80 respectively are above the Group 2 average on average: women earn 5.0K compared with the 6.2K of 78 for women and 75.5 for men. This slightly higher average, and men make 7.7K compared with 10.2K. The overall level of education is not reflected in the number gap between men and women for Group 2 countries is of engineers per 1000 which at 1.0 per 1000 is lower second narrowest in Latvia: women make about 65% of than the Group 2 average of 1.6 per 1000. Public men’s income: this is compared to 61% across Group 2.

The Caritas Latvia Perspective

In the country, poverty is characterised by these people cannot afford to spend money for rent unemployment, low salaries, high cost of public and municipal service charges, for the doctor in case of utilities, inadequate child benefits, low market prices illness, for children’s education. This latter is for agricultural production, high cost of technology particularly problematic for those rural households and inputs. Apart from these economic difficulties, the that often live 20-30 km from the nearest school country also experiences other serious social problems centre. Unemployment, low salaries, the high costs of such as the difficult access to education, to medical public utilities, the low market price for agricultural and housing costs, to information. Within this production together with the high cost of technology framework, large families with three or more children, inputs plunge the low-income population in a unstable lone parent families, rural households and disabled social and economic milieu. people bear the brunt of poverty. Indeed most of

■ Lithuania

Overview Demographics

Lithuania, the Baltic State that has conducted the With a total population of 3.7 million, Lithuania is one of most trade with Russia, has been slowly rebounding the smaller Group 2 countries. Its annual growth rate of from the 1998 Russian financial crisis. High –0.3 is average for Group 2, as is life expectancy, at 71.4 unemployment and weak consumption have held years. 69% of Latvia’s people live in urban areas, slightly back recovery. Lithuania was invited to the Helsinki above the average of 68.1%. Infant mortality, at 18 summit in December 1999 and began EU accession deaths per 1000, is higher than the 14.9 deaths per talks in early 2000. Privatisation of the large, state- 1000 registered across Group 2. The incidence of HIV in owned utilities, particularly in the energy sector, the population as a whole, at 0.02% is below average remains a key challenge for 2001. for Group 2, as is the number of women with HIV. There are 395 physicians per 100,000 people, at 140% of the average Group 2, this is the highest number of physicians per capita in Group 2. Public health expenditure of 4.8% of GDP, however is 0.2% lower than the Group 1 average of 5.0% of GDP. 74 Education & Development of the population use the internet as compared to a Group 2 average of about 6.5%. From 1998 – 1999, Lithuania’s women have a higher enrolment ratio than unemployment increased for both men and women, men, 83 to 77 which is slightly above the Group 2 but men were more likely than women to be average of 78 for women and 75.5 for men. This unemployed. Unemployment, at 10.8% is lower than higher overall level of education is not reflected in the that of Group 2 which averages 11.2%. Incomes in number of engineers per 1000 which at 1.2 per 1000 general are lower than Group 2 on average: women is lower than the Group 2 average of 1.6 per 1000. earn 5.4 compared with the 6.2 average and men Public expenditure on education, however, at 5.9% of make 8.1 compared with a Group 2 average of 10.2. GNP is 0.8% above the Group 2 average of 5.1% of The gap between men and women in Group 2 GNP. The number of computers per 1000 is much countries is narrowest in Lithuania: women earn about lower (59.5/1000) than the average Group 2 country, 67% of men’s income: this is compared to about 61% and the internet users are commensurately low: 2.8% across Group 2

The Caritas Lithuania Perspective

The country has suffered deeply in the transition from categories of people are the families where one of the the Soviet to the Western economy following the parents is a drug addict, the homeless, the collapse of Soviet communism in Eastern Europe. The unemployed, one-parent families, the elderly, main consequences of this change are manifest in the particularly those with health problems. The non- lack of a clear and stable social policy defending the governmental sector is largely disregarded and the interests of impoverished people; a decline of moral efforts of various associations to influence public values and social ethics, seen as a heritage of imposed institutions to pass new - or replace existing ineffective Soviet atheism; lack of shelter; unemployment, lack of - social laws is not duly taken into account. education and drug abuse. The most vulnerable

■ Poland

Overview per 1000 registered across Group 2 and is more in line with the less progressive countries of Group 1. Poland has steadfastly pursued a policy of liberalising The incidence of HIV in the population as a whole, at the economy and is today regarded as one of the 0.07% is above average for Group 2. There are 236 most successful and open transition economies. The physicians per 100,000 people, lower than Group 2 government's determination to enter the EU as soon on average (83% of the average). Public health as possible affects most aspects of its economic expenditure of 4.7% of GDP is 0.3% lower than the policies. Group 2 average of 5.0% of GDP.

Demographics Education & Development

With a total population of 38.6 million, Poland’s Poland’s women have a slightly higher enrolment population is second largest in Group 2 after Turkey. ratio than men, but the ratio of 86 and 83 respectively Its annual growth rate of –0.1 is slightly above are way above the Group 2 average of 78 for women average for Group 2, and life expectancy, at 72.8 and 75.5 for men and are the second highest in years, is above the 71.5 recorded across Group 2. Group 2 after Estonia. This higher overall level of 65% of Poland’s population live in urban areas, in line education is not reflected in the number of engineers with the average of 65.1%. Infant mortality, at 9 per 1000 which at 1.4 per 1000 is lower than the deaths per 1000, is much lower than the 14.9 deaths Group 2 average of 1.6 per 1000. Public expenditure

75 on education, though, at 7.5% of GNP is 2.4% higher 1998 women were more likely than men to be than the Group 2 average of 5.1% of GNP and is the unemployed. Unemployment, at 12% is higher than highest in Group 2. The number of computers per that of Group 2 which averages 11.2%. Incomes in 1000 is lower (62.2/1000) than the average Group 2 general are higher than Group 2 on average: women country, and the internet users are also lower, 5.4% of earn 6.4K compared to the 6.2K average and men the population use the internet as compared to a make 10.6K compared with a Group 2 average of Group 2 average of about 6.5%. At 0.00154%, 10.2K. Women make about 61% of men’s income: this refugees barely register – a trend that continues is in line with the average of 61% across Group 2. through Group 2 countries – the average is 0.002%. In

The Caritas Poland Perspective

Antiquated agricultural production remains the main and significantly higher than the official statistics. In the hindrance to faster economic growth. About 60% of the northwestern regions, unemployment is a particularly country’s land is used in agriculture and almost 25% of serious problem - affecting between 20.3% and 25.7% the population still lives on small, inefficient farms. The of the total economically active population. The low development of the agricultural sector together the restructuring of heavy industry, the high rate of high levels of unemployment do not favour the overall alcoholism (which affects almost one million people) development of the economy: women and young and the fiscal policy of the State contribute to people are the most affected by this problem. In June exacerbate poverty. The lack of proper jobs is 2001, there were almost 3 million unemployed people particularly serious for migrants and the refugees, i.e. 15.8% of the total economically active population families with many children and the homeless.

■ Romania

Overview populations in Group 2: 56% live in urban areas as opposed to an average of 65.1% in Group 2. Infant Romania, one of the poorest countries in Central and mortality, at 21 deaths per 1000, is second highest Eastern Europe, began the transition from behind Turkey and well above the 14.9 deaths per communism in 1989 with a largely obsolete industrial 1000 registered across Group 2. The incidence of HIV base and a pattern of output unsuited to the in the population as a whole, at 0.02% is below country's needs. Consequently, living standards have average for Group 2, as is the number of women with continued to fall - real wages are down over 40%. HIV. There are 184 physicians per 100,000 people, Corruption too has worsened. The EU ranks Romania much lower than Group 2 on average (65.3% of the last among enlargement candidates, and the average). Public health expenditure of 5.6% of GDP is European Bank for Reconstruction and Development higher by 0.6% than the Group 2 average of 5.0% of (EBRD) rates Romania's transition progress as the GDP. region's worst.

Education & Development Demographics Romania’s women have a slightly higher enrolment With a total population of 22.5 million, Romania is one ratio than men, (70 compared with 68) but this is of the larger Group 2 countries. Its annual growth rate much lower than the Group 2 average of 78 for of –0.3 is roughly average for Group 2, and life women and 75.5 for men. Moreover the male expectancy, at 69.8 years, is below the 71.5 recorded enrolment ratio is among the lowest in Group 2. across Group 2. Romania has one of the higher rural Despite these low enrolment ratios, the number of

76 engineers per 1000 at 1.4 per 1000 is only slightly the average is 0.002%. From 1998 – 1999, lower than the average of 1.6 per 1000. Public unemployment increased for both men and women, expenditure on education, at 3.6% of GNP is among men were more likely than women to be the lowest in Group 2 and 1.5% below the Group 2 unemployed. Unemployment, at 11.5%, is slightly average of 5.1% of GNP. The number of computers higher than that of Group 2 which averages 11.2%. per 1000 is second lowest (26.8/1000) among Group Incomes are lower than Group 2 on average: women 2 countries and only 2.7% of the population claim to earn 4.4K compared with the 6.2K average and men be internet users as compared to a Group 2 average earn 7.7K compared with a Group 2 average of 10.2K. of about 6.5%. At 0.00179%, refugees barely register Women make about 58% of men’s income: this is – a trend that continues through Group 2 countries – compared to about 61% across Group 2

The Caritas Romania Perspective

In Romania poverty increased over the transition to a Long-term poverty is most evident among farmers and market economy, the main reason being the sharp pensioners. The most vulnerable categories of people decline in economic output. The country has an that are mostly affected by economic deprivation are unusually large farm sector co-existing with an almost elderly rural women, lone parent families, Roma people, equally large - but obsolete - industrial sector and an young people who are the product of child-care underdeveloped service sector. The economy of institutions, people affected by AIDS and other Romania is seriously hampered by the lack of diseases. Poor people have major social difficulties productive resources, unsustainable financial and such as reaching public services, entering the school environmental conditions together with the lack of system, having access to healthcare and finding a job. In development programmes. Among economic urban areas poor people are living in crumbling sectors, agriculture and extractive industries showed households and the heating and electricity expenses the highest poverty. Independent researchers are often too high to be paid. In rural areas poor estimated that in 1999 around 41 % of the population households are usually not equipped with inside pipe lived below the poverty line. The most affected by and sewage systems. Local authorities have the poverty is the Northeast region of the country. Nearly responsibility for social services and means-tested two thirds of the poor live in rural areas. The poverty benefits but sufficient funds are not available. The most relating to the transition to a market economy is serious problem in the country is still the lack of social concentrated among salaried workers and the capital that exacerbates the overall difficult economic unemployed. situation.

■ Slovakia

Overview Demographics

In 1918 the Slovaks joined the closely related Czechs With a total population of 5.4 million, Slovakia’s to form Czechoslovakia. Following the chaos of World population is below the average for Group 2 countries. War II, Czechoslovakia became a communist nation Its flat growth rate is slightly above that of Group 2 on within Soviet-ruled Eastern Europe. The Slovaks and average, and life expectancy, at 72.8 years, is above the Czechs agreed to separate peacefully on 1 January the 71.5 recorded across Group 2. Slovakia has one of 1993. Historical, political and geographical factors the lower urban populations (57%) in Group 2. Infant have caused Slovakia to experience more difficulty in mortality, at 9 deaths per 1000, is lower than the 14.9 developing a modern market economy than some of deaths per 1000 registered across Group 2. There are its Central European neighbours. 353 physicians per 100,000 people, second highest in Group 2 and is 125.2 % of Group 2’s average . Public

77 health expenditure of 5.7% of GDP is 0.7% than the computers per 1000 is much higher (109/1000) than Group 2 average of 5.0% of GDP. the average Group 2 country, and the internet users are also higher; 11.1% of the population use the internet as compared to a Group 2 average of about Education & Development 6.5%. From 1998 – 1999, unemployment increased for both men and women, women were more likely As is true for all Group 2 countries, the Republic’s than men to be unemployed, although the gap women have a slightly higher enrolment ratio than narrowed in 1999. Unemployment, at 17%, is the men and are in line with the Group 2 average of 78 second highest in Group 2 after Bulgaria. Incomes in for women and 75.5 for men. There are 1.9 general are higher than Group 2’s average: women scientist/engineers per 1000, which is higher than the earn 8.4K compared with the 6.2K average and men Group 2 average of 1.6 per 1000. Public expenditure earn 12.9K compared with a Group 2 average of on education, at 4.7% of GNP is 0.4% below the 10.2K. Women earn some 65% of men’s income: this Group 2 average of 5.1% of GNP. The number of is compared to about 61% across Group 2

The Caritas Slovakia Perspective

Because of wide-ranging structural reforms, Indeed, schools at all levels receive insufficient funds unemployment seriously hampers the economic and the education system remains obsolete and unable development of the country. The unemployment to react to the exigencies of the new economic trends national rate is higher than 20% and in some regions and the global economy. Education is inadequate to surpasses 30%. Thus the most endangered groups are respond to the rapid changes of the industrial and long-term unemployed people. Roma people, lone information society. The obsolete educational system parent families, children and large families are other has in turn exacerbated the unemployment situation. vulnerable33 categories at risk of poverty34. The low level The high level of unemployment is mainly the result of of social and healthcare situation resulted in the fact the increased pressures for enterprise restructuring. that the Roma people's average life span is 15 years Many young people who do not have a job and did not shorter than the rest of the Slovak population. The have a proper education end up as drug addicts or education system represents a further weakness of the alcoholics and this contributes to the increase in crime country because of the low level of development. in the country.35

■ Slovenia

Overview to Western Europe, a strong economy, and a stable democracy make Slovenia a leading candidate for future In 1918 the Slovenes joined the Serbs and Croats in membership in the EU and NATO. forming a new nation, renamed Yugoslavia in 1929. After World War II, Slovenia became a republic of the renewed Yugoslavia, which though communist, distanced itself Demographics from Moscow's rule. Dissatisfied with the exercise of power of the majority Serbs, the Slovenes succeeded in With a total population of 2 million, Slovenia has the establishing their independence in 1991. Historical ties smallest population in Group 2. Its annual growth rate

33 Paradoxically, pensioners are statistically not among the most affected by poverty as their households are equipped and the average pension is nearly as high as the average income. 34 The word “poverty” is not mentioned as a term in the official documents. It is replaced by the words “material need” or “material shortage”. People who are included in this group are those who receive social benefits because their income falls below the living wag, which is currently estimated at US$71 per month 78 35 According to a survey carried out by the Statistical office in 2000, 63.9% poor households do not own a car and 58.8% are without telephone. of –0.2 is roughly average for Group 2, and life lower overall level of education is reflected in the expectancy, at 75 years, is the longest in Group 2. number of engineers per 1000 which at 2.2 per 1000 is Slovenia has the highest rural population (50%) in much higher than the Group 2 average of 1.6 per 1000 Group 2. Infant mortality, at 5 deaths per 1000, is much and is the highest in Group 2. Public expenditure on lower than the 14.9 deaths per 1000 registered across education is also significantly higher, at 5.7% of GNP, Group 2 and is more in line with Group 1. The than the Group 2 average of 5.1% of GNP. The number incidence of HIV in the population as a whole, at 0.02% of computers per 1000 is also highest in Group 2 is lower than the average of Group 2, as is the number (251.4/1000) and the internet users are also quite high: of women with HIV. There are 228 physicians per 12.5% of the population use the internet as compared 100,000 people, lower than Group 2 on average (81% to a Group 2 average of about 6.5%. At 0.008%, the of the average). Public health expenditure, however of percent of refugees, although low, is the highest in 6.6% of GDP is considerably higher, (1.6%), than the Group 2 countries. From 1998 – 1999, unemployment Group 2 average of 5.0% of GDP. decreased slightly for both men and women, though men were more likely than women to be unemployed. Unemployment, at 7.1%, is lowest for Group 2 Education & Development countries which averages 11.2%. Incomes in general are highest in Group 2: women earn 12.2K compared Slovenia’s women (at 85) have a higher enrolment ratio with the 6.2K Group average and men earn 19.9K than men (at 80), but the ratios are above the Group 2 compared with a Group 2 average of 10.2K. Women average of 78 for women and 75.5 for men. This higher earnings are some 61% of men’s income.

The Caritas Slovenia Perspective

The major causes of poverty in the country are: high where the main source of income is represented by level of unemployment (especially in the North-East social benefits. This results in a low standard of living region); a high level of bankruptcy of enterprises and where the income per capita is often insufficient to companies; insufficient professional training. meet daily necessities and often leads to high Unemployed people above the age of 45 years are in indebtedness. The most serious consequences are a particularly precarious situation because they lack the difficulty in ensuring an education, housing and the opportunity to be professionally retrained. The health problems, the inability to pay electricity and most vulnerable people live either in households with water supply costs and, more rarely, the lack of food. no economically active members or in households

■ Turkey

Overview Demographics

Turkey was created in 1923 from the Turkish remnants With a total population of 65.7 million, Turkey is the of the Ottoman Empire. Soon thereafter the country most populous country in Group 2. Its annual growth instituted secular laws to replace traditional religious rate of 1.2 is highest in Group 2, and life expectancy, fiats. In 1945 Turkey joined the UN and in 1952 it at 69 years, is the lowest in Group 2. 74% of Turkey’s became a member of NATO. Turkey's dynamic population lives in urban areas, the second highest, economy is a complex mix of modern industry and after the Czech Republic in Group 2. Infant mortality, commerce along with traditional agriculture that still at 40 deaths per 1000, is by far the highest in Group 2. accounts for nearly 40% of employment. The country The incidence of HIV in the population as a whole, at has been hampered by financial crises in late 2000 and 0.01% is the lowest for Group 2. There are 121 mid 2001 which included sharp falls in the stock physicians per 100,000 people, the lowest in Group 2 market and foreign exchange reserves.

79 (42.9% of the average). Public health expenditure of lowest in Group 2 behind Bulgaria (33.8/1000) whilst 2.2% of GDP is also the lowest in Group 2: 2.8% lower the number of internet users is the lowest in the than the Group 2 average. Group, only 2.2% of the population. At 0.00405%, refugees barely register – a trend that continues through Group 2 countries – the average is 0.002%. Education & Development From 1998 – 1999, unemployment increased for both men and women, men were more likely than women In a trend that is the reverse of other Group 2 to be unemployed. Unemployment, at 10%, is lower countries, Turkey’s women have a much lower than the Group 2 average of 11.2%. Incomes for enrolment ratio than men and at 55 is lowest in Group women are lowest in Group 2: women earn 3.9K 2. At 68, the men’s enrolment ratio is also lowest in compared with the 6.2K average, and men earn 8.8K Group 2 but clearly much higher than that of their compared with a Group 2 average of 10.2K. Women's female counterparts. Public expenditure on income is a mere 44% of men’s income: this is the education, at 2.2% of GNP, is also the lowest in Group lowest in Group 2 and compares to an average of 2. The number of computers per 1000 is second about 61% across Group 2.

The Caritas Turkey Perspective

The country is deeply affected by a high level of the disabled. Given the fact that the minimum wage inflation. The substantial lack of investment in is lower than the average standard of living (102 Euro productive sectors further hampers the overall per month), poor people become even poorer over economic development of the country. The recent time, whereas the rich people grow wealthier economic crisis further worsened the economic because of speculation. The low wages worsen the scenario because many small businesses, such as the social conditions of the poor living in the big cities: shops of artisans and manufacturers, went bankrupt. according to a survey conducted in March 2001, more The access to healthcare, housing and daily food is than a million people in Istanbul are affected by difficult because of excessively high prices. The malnutrition. According to the regularly conducted people mostly affected by these poverty conditions statistics, there is an increase of 19.81 Euro in the are migrants and the refugees, the unemployed and poverty and hunger rates due to inflation.

80 Group 3: Non-accession Countries

81 ■ Albania

Overview 29 deaths per 1000, is the highest in Group 3. There are 129 physicians per 100,000 people, the lowest in In 1990 Albania ended 44 years of xenophobic Group 3. Public health expenditure at 3.5% of GDP is communist rule and established a multiparty 1% below the Group 3 average of 4.5% of GDP. democracy. The transition has proven difficult as corrupt governments have tried to deal with high unemployment, a dilapidated infrastructure, Education & Development widespread gangsterism, and disruptive political opponents Poor by European standards, Albania is With an enrolment ratio of 99 and 95 respectively, making the difficult transition to a more open-market Albania’s men and women have enrolment ratios far economy. above the average for Group 3 (77.8 for women and 75.7 for men). However the number of computers per 1000 is the lowest in Group 3, and only about 0.1% of Demographics the population use the internet as compared to a Group 3 average of about 1.2%. At 0.01%, the With a total population of 3.1 million, Albania is one of proportion of refugees is average for Group 3. the smaller Group 3 countries. Its annual growth rate Unemployment is estimated at 16-25%. Incomes in of 0.6% is the highest in Group 3 which has an average general are low: women earn 2.2K compared with the of –0.2%. Life expectancy, at 72.8 years, is well above 3.5K Group average and men make 4.1K compared the average (70.4) for this Group. Albania has the with a Group 3 average of 5.9K. Women earned 55% highest rural population in Group 3; 59% of the of men’s income: this is compared to the Group 3 population live in rural areas compared with the average of 60%. average of 38.6% across Group 3. Infant mortality, at

The Caritas Albania Perspective

Albania is considered to be a country with low levels Almost 50% of Albanian intellectuals are emigrants. of social, political and economic security. These The most able workforce emigrate in the search for aspects of poverty are the direct consequences of the higher wages which go towards helping their families social changes following the fall of the communist who remain in Albania, in order to attain better regime. Such changes created major problems in working conditions, better living standards and relation to: the movement of the Albanians inside and educational possibilities. The migration inside the outside the country; the labour market; the housing country is basically the movement of people from the situation; the health services and education mountains and the rural areas who flood the main structures. When talking about the movement of urban centres. As a result of such movement, the Albanians, reference has to be made to two population of the cities has increased considerably. In phenomena: emigration to neighbouring countries this scenario, the lack of appropriate infrastructures and migration inside the country. Indeed, due such as adequate roads, communication, drainage principally to the low level of the national economy and electricity systems together with the low level of and the related low employee’s wages and low social benefits and education have noticeably pension level, the majority of the economically active worsened the problems related to poverty. The part of the Albanian population emigrates to categories of people that are most directly affected neighbouring countries. are migrant’s families, families with long-term unemployed members and the elderly.

82 ■ Armenia

Overview HIV in the population as a whole, at 0.01% is slightly lower than other Group 3 countries (0.28 on average). An Orthodox Christian country, Armenia was There are 316 physicians per 100,000 people, slightly incorporated into Russia in 1828 and the Soviet Union higher than the Group 3 average of 314/1000. Public in 1920. Armenian leaders remain preoccupied by the health expenditure at 3.1% of GDP is 1.4% - well long conflict with Azerbaijan over Nagorno-Karabakh, below the Group 3 average of 4.5% of GDP. a primarily Armenian-populated part of Azerbaijan. Since the collapse of the Soviet Union in December 1991, Armenia has shifted to small-scale agricultural Education & Development production and away from the large agro-industrial complexes of the Soviet era. Armenia's severe trade Unusually for Group 3, Armenia’s men have a higher imbalance, importing three times its exports, has enrolment ratio (82) than women (77). Public been offset somewhat by international aid, domestic expenditure on education, at 2% of GNP, is much restructuring of the economy, and foreign direct lower than the Group 3 average of 5.4% of GNP. The investment. number of computers per 1000 is second lowest after Albania in Group 3 and much lower than the average Group 3 country. The internet is not widely used: - Demographics less than 0.8% of the population use the internet as compared to a Group 3 average of about 1.2%. At With a total population of 3.8 million, Armenia is one 0.4%, the percent of refugees is highest in Group 3 – of the smaller Group 3 countries. Its flat growth rate probably due to the war in Nagorno-Karabakh. is above average for Group 3, and life expectancy, at Unemployment, estimated at 20%, is high. Incomes in 72.4 years, is above average (70.4) for this Group. general are low: women earn 1.8K compared to the Surprisingly, given its dependence on agriculture, Group 3 average of 3.5K and men make 2.7K 70% of Armenia’s population live in urban areas: the compared with a Group 3 average of 5.9K. Women second highest percentage in this Group after the earn about 66% of men’s income: this is the narrowest Russian Federation. Infant mortality, at 25 deaths per the gap in Group 3 and compares to an average of 1000, is above the average of 20.9 deaths per 1000 about 60% across Group 3. registered on average in Group 3. The incidence of

The Caritas Armenia Perspective

The change to a free market system, a governmental meet basic nutritional needs. The most direct economic policy based on mass privatisation, and an consequence is chronic malnutrition. Secondly, this unstable legal and political framework have brought situation is exacerbated by the privatisation of the health Armenia to a critical juncture, characterised by a high care services and the consequent escalation in costs for level of unemployment, under-employment, low medical care: very often people do not consult a doctor productivity, and ineffectiveness of the social welfare simply because they cannot afford it, even though they system. Studies on the socio-economic situation and the may be in urgent need of medical assistance. Moreover, extent of poverty show that the income per capita is very given that the average wage is half the minimum low. The basic government subsidy for a 4-person subsistence level, citizens and employers cannot make household is about US $15 whereas US $ 66 is needed significant contributions to social insurance funds. for their monthly food basket. This has direct impact on Thirdly, the high costs of education force an increasing the private consumption of food and on the access to number of students to abandon the school system, while health and education services. obliging the teachers to augment their low wages through bribery, by receiving money for “optional” First, 80% of the population subsist beneath the food classes. Under these circumstances, it becomes poverty line since their income is not sufficient even to increasingly obvious that limited state financial

83 resources, divided among education, health, and most acute for lone parent families headed by women. assistance to vulnerable groups of the population do not Indeed, although, on the one hand, Armenian society solve any social problems and simply dilute budgetary accepts women’s activism and equality; on the other, resources. The above-mentioned poverty trends directly traditional Armenian mentality still prioritises the care of affect pensioners, refugees, orphans, and lone parent family and homemaking for women over paid families. Indeed, on average, one third of those people employment and public roles. Moreover because of of retirement age, with 36.5 years of work experience, delay in funding for institutions, the situation for children continue to work because of the lack of personal in orphanages is desperate. Financial support to state finances given by the low pensions they receive. orphanages and boarding schools is now reduced to the payment of salaries and funds for food. This insecure Inadequate housing and unemployment are the basic social situation is made worse with the phenomenon of problems of refugees: 14.5 out of 60 thousand families the so-called “social orphans”.36 In at least 80% of the do not have permanent housing and unemployment is cases, these funds arrive with significant delay. Most 70% among able-bodied refugees. The majority of the employees have not received salaries for the last 2 to 8 registered unemployed are women. The situation is months.

■ Belarus

Overview incidence of HIV in the population as a whole, at 0.28%, is at the average for Group 3. There are 443 physicians After seven decades as a constituent republic of the per 100,000 people, the highest in Group 3 and 141% Soviet Union, Belarus attained its independence in of the average of 314.1. Public health expenditure, at 1991. In addition to the burdens imposed by extremely 4.9% of GDP, is 0.4% above the Group 3 average of high inflation, businesses have been subject to pressure 4.5% of GDP. on the part of central and local governments, e.g., arbitrary changes in regulations, numerous rigorous inspections, and retroactive application of new business Education & Development regulations prohibiting practices that had hitherto been legal. Additional economic problems are two Belarus’ women have a higher enrolment ratio (79) than consecutive bad harvests, 1998-99, and persistent trade men (75), but this is in line with Group 3 averages: of deficits. Close relations with Russia, possibly leading to 77.8 for women and 75.7. The number of scientists and reunion, colour the pattern of economic developments. engineers at 2.2 per 1000 is way above the Group 3 For the time being, Belarus remains self-isolated from norm and is more in line with Group 1. Public the West and its open-market economies. expenditure on education, at 5.9% of GNP, is 0.5% above the Group 3 average of 5.4% of GNP. The internet is not widely used: - less than 0.5% of the Demographics population use the internet as compared to a Group 3 average of about 1.2%. Unemployment is much higher With a total population of 10.2 million, Belarus is one of for women than for men, though from 1998 – 1999, it the larger Group 3 countries. Its annual growth rate of decreased for both sexes. Official unemployment is –0.4 is below the average of –0.2 for Group 3; life suspiciously low at 2.1%. Incomes in general are higher expectancy, at 68.5 years, is also below the average of than for other countries in Group 3: women earn 5.4K 70.4 for Group 3. 71% of the population live in urban compared with the 3.5K average and men make 8.6K areas, well above the Group 3 average of 58.6%. Infant compared with a Group 3 average of 5.9K. Women earn mortality, at 23 deaths per 1000, is higher than the 20.9 62% of men’s income: this is compared to about 60% deaths per 1000 reported across Group 3. The across Group 3.

36 Social orphans are those children whose parents are still alive but are unable to provide for their maintenance. Even though the parents do not provide child support, these children are not eligible for other benefits, which can be enjoyed by those 84 children who are officially registered as orphans. A large percentage of children in state orphanages and boarding schools fall within this category. The Caritas Belarus Perspective

The country is characterized by a stagnating economy; agriculture, has an income at a rate of 1-3 MWB. This a reduction in the number of workplaces; inflation as a wage does not allow for normal healthy eating, medical consequence of mass migration inside the country; aid and education because of the high living costs in the emigration and the consequent reduction of intellectual country. Families with more than three children, the potential and human capital. In 2000 around 50% of the elderly and handicapped people, lone parent families, population of the country had incomes below the so- the unemployed and migrants are acutely affected by called “minimum wage budget” (MWB) which is about the economic and social difficulties of the country. US $23. According to the estimates of independent Indeed, the social welfare system does not provide sociological organizations, the number of poor people sufficient social cover and benefits to those people in is as high as over 90% of the entire population. A large need. The unemployment benefit, for instance, is only part of the employed population working in public 30% of MWB and it is therefore not sufficient to meet health services and/or education, culture and science or basic human needs.

■ Bosnia-Herzegovina

Overview but output growth slowed appreciably in 1999 and 2000, and GDP remains far below the 1990 level. Bosnia and Herzegovina is ranked next to The Former Yugoslav Republic of Macedonia as the poorest republic in the old Yugoslav federation. Although Education & Development agriculture is almost all in private hands (43% of the population live in rural communities), farms are small Economic data are of limited use because, although and inefficient, and the republic traditionally is a net both entities issue figures, national-level statistics are importer of food. The bitter interethnic warfare in not available. Moreover, official data do not capture Bosnia caused production to plummet by 80% from the large share of activity that occurs on the black 1990 to 1995, unemployment to soar (estimated to market. The country receives substantial amounts of be between 35-40%), and human misery to multiply. reconstruction assistance and humanitarian aid from With an uneasy peace in place, output recovered in the international community but will have to prepare 1996-98 at high percentage rates from a low base; for an era of declining assistance.

The Caritas Bosnia-Herzegovina Perspective

The country still bears the heavy consequences of the unemployment rate is quite high; young people war. Currently some 625,800 refugees from Bosnia and themselves are paying for their education; elderly Herzegovina are still scattered over 40 other states, people have insufficient social security benefits. One of while the national country accepted 40,000 refugees the most serious problems is the pressing need to from Kosovo. Some 100,000 young people emigrated reconstruct housing units, public institution buildings, from the country after the Dayton Peace Accord as well as infrastructure all over the country. The (initialled on November 21 1995)37 for reasons such as number of employed is very low and their work is unemployment, national intolerance, and the inability to underpaid. The most vulnerable groups are refugee return to their own property. The transformation of the families, the elderly, sick and handicapped people since political system exacerbated some serious social they need constant care in everything – from medical problems such as drug addiction, alcoholism, crime and care and supplies to food assistance. corruption. The social situation is very bad: the

37 After Dayton, 100,000 people emigrated from Bosnia and Herzegovina in other countries. Around 40,000 refugees from Yugoslavia are still in the country with the status of refugees. At the same time there are still 300,000 people 85 living abroad who do not have any status. ■ Croatia

Overview the Group 3 average of 314 per 1000. Public health expenditure at 8.1% of GDP is 3.6% above the Group Before the dissolution of Yugoslavia, the Republic of 3 average of 4.5% of GDP – though this probably Croatia, after Slovenia, was the most prosperous and comes from a very low base. industrialised area, with a per capita output perhaps one-third above the Yugoslav average. Croatia faces considerable economic problems stemming from: the Education & Development legacy of long-time communist mismanagement of the economy; damage during the internecine fighting With a ratio of 69 for women and 68 for men, Croatia to bridges, factories, power lines, buildings, and has the lowest enrolment ratio in Group 3, well below houses; the large refugee and displaced population, the average of 77.8 for women and 75.7 for men. This both Croatian and Bosnian; and the disruption of slightly lower overall level of education is not economic ties. Stepped-up Western aid and reflected in the number of engineers per 1000 which investment, especially in the tourist and oil industries, at 1.9 per 1000 is slightly higher than the Group 3 would help bolster the economy. The economy average of 1.8 per 1000. Public expenditure on emerged from its mild recession in 2000 with tourism education, at 5.3% of GNP, is only 0.1% lower than the main factor. Massive unemployment remains a the Group 3 average of 5.4% of GNP. The number of key negative element. computers at 67 per 1000 is much higher than the average Group 3 country, and 4.3% of the population use the internet - the highest in Group 3 with an Demographics average of 1.2%. The percentage of refugees at 0.05% is about average for Group 3 countries With a total population of 4.7 million, Croatia’s (although it is not clear whether this suspiciously low population though small is median for Group 3 (which figure includes internally displaced people). From is dwarfed by Russia and the Ukraine). Its flat growth 1998 – 1999, unemployment increased for both men rate is slightly above average for Group 3, and life and women, though men were more likely than expectancy, at 73.3 years, is the highest in Group 3. women to be unemployed. Unemployment, 57% of the population live in urban areas in line with estimated at 22%, is high. Incomes in general are the average of 58.6% reported across Group 3. Infant reported to be higher than the average Group 3 mortality, at 8 deaths per 1000, is lowest in Group 3, country: women earn 5.3K compared with the 3.5K well below the Group average of 20.9 deaths per average and men earn 9.6K (the highest in Group 3) 1000. The incidence of HIV in the population as a compared with a Group 3 average of 5.9K. Women whole, at 0.02%, is one of the lowest in Group 3. earn about 55% of men’s income: this is compared to There are 229 physicians per 100,000 people, 73% of about 60% across Group 3.

The Caritas Croatia Perspective

An analysis of the structure and features of poverty households where the head of the family is a retired indicates several distinctive groups amongst the poor person; and households living the rural regions of such as: households where the head of the family Slavonia (eastern Croatia). The main cause of poverty does not have any education (75% of the households is the restructuring of the economy that brought with belong to this category); 40% of the poor live in it an unemployment rate of 24%.

86 ■ Georgia

Overview Demographics

Georgia was absorbed into the Russian Empire in the With a total population of 5.3 million, Georgia’s 19th century. Independent for three years (1918- population is about median for Group 3 countries – 1921) following the Russian revolution, it was forcibly which is skewed upward by Russia (146.2 million) and incorporated into the USSR until the Soviet Union the Ukraine (50 million). Its annual growth rate of –0.6 is dissolved in 1991. Despite a badly degraded below average for Group 3, though life expectancy, at transportation network - brought on by ethnic 72.7 years, is above the Group 3 average of 70.4. The conflict, criminal activities, and fuel shortages - the population is split 60% in urban areas, 40% in rural, in country continues to move toward a market economy line with the Group 3 average. Infant mortality, at 19 and greater integration with Western institutions. deaths per 1000, is just below the 20.9 deaths per 1000 Georgia's economy has traditionally revolved around registered across Group 3. There are 436 physicians per Black Sea tourism; the cultivation of citrus fruits, tea, 100,000 people, the second highest in Group 3 after and grapes; mining of manganese and copper; and Belarus and 139% of the Group 3 average. Public health output of a small industrial sector producing wine, expenditure is a mere 0.5% of GDP, the lowest in Group metals, machinery, chemicals, and textiles. Despite 3 and 4% below the Group 3 average of 4.5% of GDP. the severe damage the economy has suffered due to civil strife, Georgia, with the help of the IMF and World Bank, has made substantial economic gains Education & Development since 1995, increasing GDP growth and slashing inflation. The Georgian economy continues to With a ratio of 71 for women and 69 for men, Georgia’s experience large budget deficits due to a failure to enrolment ratios are well below the Group 3 average of collect tax revenues. Georgia also still suffers from 77.8 for women and 75.7 for men. Public expenditure energy shortages; it privatised the distribution on education, is 5.2% of GNP, is 0.2% below the Group network in 1998, and deliveries are steadily 3 average of 5.4% of GNP. The internet is not widely improving. The country is pinning its hopes for long- used: - less than 0.6% of the population use the internet term recovery on the development of an international as compared to a Group 3 average of about 1.2%. At transportation corridor through the key Black Sea 0.01%, the number of refugees is in line with other ports of P'ot'i and Bat'umi. The growing trade deficit, Group 3 countries. (However, as is clear from the continuing problems with tax evasion and corruption, Caritas input, these statistics do not include internally and political uncertainties cloud the short-term displaced persons). From 1998 – 1999, unemployment economic picture. increased for both men and women, though men were less likely than women to be unemployed. Unemployment is high: the official 1999 figure estimates unemployment at 14% though real unemployment is probably much higher.

The Caritas Georgia Perspective

The collapse of the Soviet Union disrupted traditional burden have become the inevitable consequences. trade and payments links between the former parts of The appropriate supportive environment was not the federation and led to a large terms-of-trade shock created prior to the liberalization of prices. That is for energy imports, as Georgia does not possess why the transition dragged on for so long, causing sufficient energy resources and raw materials to the drastic impoverishment of a socially unprotected support its industry or other fields of production, population. The national official poverty line, being including agriculture. These problems impeded the introduced in the country, is around US $ 50 per full production cycle and created difficulties in month per person. developing an independent economic system so that a sharp fall in incomes, inadequate social protection, In recent years poverty in Georgia became high level of unemployment and heavy external debt widespread - with more than 35% of the population

87 living below the poverty line. All these problems were the lack of patients (people cannot afford to stay in compounded by the armed conflicts in Abkhazia and the medical institutions), hotels or old and unfit for Samachablo (South Ossetia), resulting in large dwelling buildings. Most of them live in unbearable, movements of Internally Displaced Persons (IDPs) – unsanitary and unhealthy conditions. Given the lack more than 300, 000 IDPs are dispersed throughout of adequate social benefits, the most vulnerable the country - deprived of their land, their homes and people are pensioners, children in institutions and the their possessions. The IDPs receive a purely symbolic disabled. Low income brings with it a high level of allowance of about US $ 6 per person per month. malnutrition that combines with the difficulty in They are accommodated in schools, former camps having access to basic health services to form a (summer houses), They occupied health-care vicious circle of poverty. institutions, large parts of which are not in use due to

■ Macedonia

Overview in urban areas, in line with the Group 3 average of 58.6%. Infant mortality, at 22 deaths per 1000, is The large Albanian minority and the de facto above the Group 3 average of 20.9 deaths per 1000. independence of neighbouring Kosovo continue to be There are 204 physicians per 100,000 people, lower sources of ethnic tension. At independence in than Group 3 on average (64.9% of the average). November 1991, Macedonia was the least developed of Public health expenditure is 1% below the Group 3 the Yugoslav republics, producing a mere 5% of the average of 4.5% of GDP. total federal output of goods and services. An absence of infrastructure, UN sanctions on its largest market, Yugoslavia, and a Greek economic embargo hindered Education & Development economic growth until 1996. GDP has subsequently increased each year, rising by 5% in 2000. Successful With a ratio of 70 for women and 70 for men, Macedonia privatisation in 2000 boosted the country's reserves to has the lowest enrolment ratio in Group 3, well below over $700 million. The political leadership has the average of 77.8 for women and 75.7 for men. This demonstrated a continuing commitment to economic lower overall level of education is reflected in the reform, free trade, and regional integration. number of engineers per 1000 which, at 1.3 per 1000, is lower than the Group 3 average of 1.8 per 1000. Public expenditure on education, however, at 5.1% of GNP, is Demographics only 0.3% lower than the Group 3 average of 5.4% of GNP. The internet is more widely used in Macedonia With a total population of 2 million, Macedonia’s than in other Group 3 countries: 1.5% of the population population is the smallest for Group 3 countries. Its use the internet as compared to a Group 3 average of annual growth rate of 0.2 is higher than Group 3 about 1.2%. At 0.05%, the number of refugees is below average, and life expectancy, at 72.7 years, is above the average of 0.01% for Group 3. Unemployment is average (70.4) for this Group. 62% of the people live high and estimated to be around 32%.

The Caritas Macedonia Perspective

After independence was achieved in 1991, wages at all while still being enrolled in the social Macedonia underwent dramatic changes because of security schemes. Since 1991, the differentiation of the economic transition from a state-dominated social classes has significantly increased: the middle socialist system to a market driven economy. As a class is vanishing and the poor people already consequence of this process which led to the represent 20% of the total population. The privatization of public companies, organizations and Government of the Republic of Macedonia considers factories, many people lost their employment. Those those households whose income is lower than 25 who kept their jobs are earning minimum wages or no Euro per month as below the poverty line.

88 The scenario is even worse if the situation of the Roma the result of the migration from the poor rural areas into minority and of the “new poor” is considered. Indeed urban areas: pensioners with low social benefits, 95 % of the Roma population is unemployed and, as a unemployed persons and workers earning low salaries consequence, they often live as squatters on communal feature in this new category. Moreover, the country has property without official approval. In addition they are to face the problems resulting from the lack of lacking basic public services such as electricity, water education together with the lack of opportunities to and sanitation facilities. The so-called ‘new poor’ are open up private and small-scale business.38

■ Moldova

Overview years, is below average (70.4) for this Group. Infant mortality, at 27 deaths per 1000, is the second highest Formerly ruled by Romania, Moldova became part of for this Group after Albania. The incidence of HIV in the the Soviet Union at the end of World War II. One of the population as a whole, at 0.02%, is slightly lower than poorest nations in Europe and plagued by a moribund the Group 3 average of 0.28.There are 350 physicians economy, in 2001 Moldova became the first former per 100,000 people, slightly higher than Group 3 on Soviet state to elect a communist as its president. average (111% of the average). Public health Moldova enjoys a favourable climate and good expenditure at 6.4% of GNP is 1.9% above the Group 3 farmland. Ambitious reform efforts could not offset the average of 4.5% of GDP. impact of political and economic difficulties, both internal and regional. In 1998, the economic troubles of Russia, by far Moldova's leading trade partner, were a Education & Development major cause of the 8.6% drop in GDP. In 1999, GDP fell again, by 4.4%, the fifth drop in the past seven years; With a ratio of 75 for women and 70 for men, exports were down, and energy supplies continued to Moldova has enrolment ratios slightly below the be erratic. GDP declined slightly in 2000, with a severe Group 3 average of 77.8 for women and 75.7 for drought having serious adverse effects on agricultural men. Public expenditure on education, at10.6% of production. GNP, is the highest in Group 3 which averages 5.4% of GNP. The number of computers per 1000 is much lower than the average Group 3 country, and the Demographics internet is not widely used: - less than 0.6% of the population use the internet as compared to a Group With 4.3 million people, Moldova’s population is about 3 average of about 1.2%. In 1999, women were much median for Group 3. Its annual growth rate of –0.2 is more likely than men to be unemployed, though average for this Group, and life expectancy, at 66.6 officially unemployment is only 1.9%.

The Caritas Moldova Perspective

In the framework of geopolitical uncertainty, and foreign investors avoid this insolvent country. The economic reforms, such as privatisation and economy is still dependent on economic fluctuations economic liberalization, are carried out with great in Russia. A significant portion of enterprises went difficulty and to not have the anticipated effect. The bankrupt. Due to financial crisis, the state has state does not have fiscal proceeds, does not pay accumulated huge arrears in wages to its wages to employees, government is highly corrupt, employees39. Many companies do not repay current

38 Almost 80% of poor people live in communities where the head of the family has only primary school education. 39 The state pays salaries to people only after long delays: in the best-developed areas of activity, the employees 89 sometimes receive their salary with a delay of 2/3 months. debts for inputs and electric energy. The only solution tuberculosis. This disease has assumed a greater scale is to pay wages in kind. Some companies used to due to deteriorating sanitary and social conditions. issue bonds against which the employees get their Because of the high fees, the education sector has wages when money is available. also declined considerably during the transition period: a reduction in the enrolment rate, chronic More than 50% of the Moldavian population is absenteeism of poor children, reduced participation employed in agriculture. This sector of the economy of poor students in the secondary and post- is undergoing a serious crisis caused by the absence secondary education, and a reduction in spending on of investment and lack of fuel. According to this sector. preliminary estimates, 53.4% of the population lived below the absolute poverty line (7.5 Euro per capita) In the countryside, living conditions are more difficult; in 1999. During the transition period, the health two-thirds of the needy population live in the rural sector has deteriorated significantly and recorded a areas where houses are not equipped with water significant decline in expenditure: spending only conduits or sewer systems40. Heating is non-existent. accounted for 2.9% of the GDP in 2000 against 6% in Warm water and electricity are luxuries that only few 1997 - a decline in the hope for life. can enjoy. Moreover, the state does not have necessary resources to meet the needs of the There has also been an increase in the number of population in the field of medical care, education, people who suffer from various diseases such as and culture.

■ Russian Federation

Overview Demographics

A decade after the collapse of the Soviet Union in With a total population of 146.2 million, Russia is, by 1991, Russia is still struggling to establish a modern far and away, the largest Group 3 country. Its annual market economy and achieve strong economic growth rate of –0.6 is well below the average for growth. Russia remains heavily dependent on the Group 3, as is life expectancy, which, at 66.1 years, is export of commodities, particularly oil, natural gas, lowest in Group 3. 77% of the population – the metals, and timber, which account for over 80% of highest for Group 3 - live in urban areas. Infant exports. As any country dependent on the export of mortality, at 18 deaths per 1000, is lower than the primary products, the Russian Federation is 20.9 deaths per 1000 registered across Group 3. The vulnerable to fluctuations in world prices and which incidence of HIV in the population as a whole, is are beyond its control. Russia's agricultural sector reported to be 0.18% of the population, though remains beset by uncertainty over land ownership anecdotally the incidence of HIV is deemed to be rights, which has discouraged much needed much higher. There are 421 physicians per 100,000 investment and restructuring. Another threat is people, much higher than Group 3 on average (134% negative demographic trends, fuelled by low birth of the average). Public health expenditure is 0.1% rates and a deteriorating health situation - including above the Group 3 average of 4.5% of GDP. an alarming rise in AIDS cases - that have contributed to a nearly 2% drop in the population since 1992. Russia's industrial base is increasingly dilapidated and Education & Development must be replaced and modernised if the country is to achieve sustainable economic growth. Other With a ratio of 82 for women and 75 for men, Russia problems include widespread corruption, capital has enrolment ratios that are above average for flight, and a brain drain. Group 3. In keeping with Russia’s highly skilled work

90 40 Electricity is cut more frequently by the village administration in order to save money. force, the number of engineers per 1000 at 3.6 per increased for both men and women, though men 1000 is the highest in Group 3. Public expenditure on were more likely than women to be unemployed. education, however, at 3.5% of GNP is 1.9% lower Official unemployment is 10.5%. Income for women than the Group 3 average of 5.4% of GNP. The at 5.9K compares favourably with the average of 3.5K number of computers per 1000 is the highest in in Group 3 and is the highest in Group 3. Men’s Group 3 and 1.85% of the population claim to use the income is the second highest after Croatia, their internet compared with a Group 3 average of 1.85%. income is 9.3K compared with a Group 3 average of At 0.012%, the percent of refugees is in line for 5.9K. Women earn about 63% of men’s income: this is Group 3. From 1998 – 1999, unemployment compared to about 60% across Group 3.

The Russian Federation Caritas Perspective

Poverty has become a widespread phenomenon, sectors of economy (light industry, commerce, affecting not only traditionally vulnerable categories maintenance of buildings and communal services, (unemployed, families with children, disabled, young healthcare, science, culture, education, and even in people, pensioners) but also a part of the economically the scientifically and technologically advanced and active population of the country, especially those socially oriented sectors), the level of salaries does financed from the state budget – doctors, teachers, not correspond to the contribution of these sectors to representatives of science and culture - who were the Gross Domestic Product, to their importance for deprived of the state subsidies depreciated by inflation. the future competitiveness of Russia in the world The size of pensions, social subsidies and salaries often market and, what matters most of all for the people, traps people in the category of poor. The average size to the level of minimum needs as formalised in the of pensions (with compensation) was 910 rubles in minimum wage. March 2001 (1$ - 29 rubles). In a year the nominal increase was 48.4%, and the real one (with the inflation Therefore, a significant sector of the population is coefficient) was 20.0%. The situation of families with seeking a second job: 11.1% of working people are children, particularly those with many children and lone actively trying to raise their household income parent families is especially difficult. Child benefit per through an extra job. An additional problem is the month is 200 rubles till the age of 1.5 years and 70 differences between regions. Thus, of the 89 regions rubles thereafter until the age of 16. Lone parent of the Federation, the 10 most successful ones families receive social aid of 140 rubles a month. consume 49.2% of the total amount consumed by regions, whilst 19 unsuccessful ones consume only A special category of poor are employed but who do 4.7%. In the second quarter of 2001 the average not receive their salary for several months or even income per person was 2354.7 rubles. (1$ = 29 years running. More than 60% of the state rubles). The income differences are such that, organizations' debt is in the social sphere. It should compared to the average in the country, in Moscow it be noted that, in April 2001 17.7% of the total debt is 3.78 times as high, in Tumen – 2.30, in Khanty- is in the federal budget and 82.3% in the budget of Mansiysky autonomous region – 3.6, in Ingushetya - regions of the Russian Federation and local 0.32, in Ivanovo – 0.38, in Kalmykya – 0.42. municipalities. Economic decline over the recent years has given rise to the phenomenon of forced It should be noted that a certain part of the administrative vacation without pay or with partial population’s income, in particular that resulting from payment of salaries. Having a job - and thus no right a second job, cannot be counted in practice since it is to an unemployment subsidy - means people get into related to the 'shadow' or 'black' economy which serious financial difficulties. Almost 10% of those makes up an important part of the Russian economy. employed in industrial enterprises experiencing The proliferation of the shadow economy is not only development difficulties in the first quarter of 2001 a source of unregistered income, it also undermines were obliged to take such vacations. In the footwear the state system of social welfare which is the only industry this percentage soared to 80%. source of income for the most vulnerable groups of the population. The non-payment of taxes enriches a In spite of the trend towards the general growth of small proportion of the population (the per capita salaries, there remains the problem that, in large income difference coefficient is 15.4. The richest 10%

91 receive 33.7% of the total income, whilst the poorest minimum wages have little influence over the 10% receive only 2,4%) and deprives the needy of situation. In a year (data for the second quarter of sources of financing. 2001) pensions grew by 23.4% and average monthly salaries by 18.8%. In this context, the astute social A dangerous consequence of this situation is the loss policy of regional authorities plays an important role. of not only material benefits but of social status of the In some regions (for example Moscow, Norilsk) employed. A considerable number of qualified additional payments to pensions and social benefits specialists, with diplomas in engineering, teachers are higher than the sums established by the state. etc. take work which does not correspond to their qualifications since otherwise they cannot provide for The statistics indicate a gradual increase in the living their families. Federal and regional authorities try to standards of the population of Russia. But a complex combat such situation. of factors militates against taking an optimistic view: increase in prices for communal and transport The trend of growth of income and expenses of the services, building maintenance, communication and population that began to take shape in 2001 was not electricity. Consumer prices for goods and services of strong enough to have any significant impact on the primary importance grow more rapidly than others. eradication of poverty. Even if delays in paying Thus, the increases in income and benefits do not salaries, pensions, child benefits etc. decreased, they keep pace with the rising cost of living. All this has a are not yet completely eliminated. And, even if paid negative effect on living standards and, in the near on time, they are not high enough to allow a future, will not permit the majority of Russia's people significant decrease in the number of the needy. to live above the poverty line. Regular increases in pensions, social benefits,

■ Ukraine

Overview to external shocks. Outside institutions - particularly the IMF - have encouraged Ukraine to quicken the Although independence was attained in 1991 with pace and scope of reforms and have threatened to the dissolution of the USSR, freedom remains elusive withdraw financial support. as many of the former Soviet elite remain entrenched, stalling efforts at economic reform, privatisation, and respect for civil liberties. Demographics

After Russia, the Ukrainian republic was far and away With a total population of 50 million, Ukraine is the the most important economic component of the second largest country, after Russia, in Group 3. Its former Soviet Union, producing some four times the annual growth rate of –0.9 is lowest in Group 3, and output of the next-ranking republic. Shortly after life expectancy, at 68.1 years, is below average (68.1) independence in late 1991, the Ukrainian for this Group. 68% of the Ukraine’s population live in Government liberalised most prices and erected a urban areas, more than is usual for Group 3 (58.6%) legal framework for privatisation, but widespread on average. Infant mortality, at 17 deaths per 1000, is resistance to reform within the government and the below the 20.9 deaths per 1000 registered across legislature soon stalled reform efforts and led to Group 3. The incidence of HIV in the population as a some backtracking. Output in 1992-99 fell to less whole, at 0.96% is the highest reported for this than 40% the 1991 level. Loose monetary policies Group. There are 299 physicians per 100,000 people, pushed inflation to hyperinflationary levels in late slightly higher lower than the Group 3 average 1993. Ukraine's dependence on Russia for energy (95.2% of the average). Public health expenditure is supplies and the lack of significant structural reform 0.9% below the Group 3 average of 4.5% of GDP. have made the Ukrainian economy highly vulnerable

92 Education & Development Croatia and Russia) and the internet is not widely used: - less than 0.4% of the population use the internet as With a ratio of 78 for women and 77 for men, Ukraine compared to a Group 3 average of about 1.2%. At has enrolment ratios that are just above average for 0.01%, refugees barely register and are among the Group 3. This higher overall level of education is lowest in Group 3. From 1998 – 1999, unemployment reflected in the number of engineers per 1000 which at decreased for both men and women, though men 2.2 per 1000 is slightly higher than the Group 3 were more likely than women to be unemployed. average of 1.8 per 1000. Public expenditure on Official unemployment is listed at 4.3%. Incomes in education, at 5.6% of GNP, is 0.2% higher than the general are below average for Group 3: women earn Group 3 average of 5.4% of GNP. The number of 2.5K compared with the 3.5K Group average and men computers at 15.8 per 1000 is lower than the average earn 4.6K compared with a Group 3 average of 5.9K. Group 3 country (which is skewed by a high number in Women earn about 54% of men’s income.

The Caritas Ukraine Perspective

Caritas Europa has two member organisations in the Euros per month and this low wage is the main cause Ukraine: Caritas Spes (the Caritas of the Roman of the current brain drain and the loss of Catholic Church in Ukraine) and Caritas Ukraine (the prestige/status of these professions. Caritas of the Greek Catholic Church). Adequate housing is a major problem together with After the collapse of the Soviet Union, factories medical and health care. Most hospitals do not even closed down and enormous numbers of people provide patients with medicines or food: the patient or became unemployed overnight. The new laws were his family must supply this. A particular problem is the often not passed by the Parliament quickly enough to poverty of the state itself and its failure to establish keep pace with the new economic reality. The system efficient social services for those citizens who are of taxation remained the same as the one of the simply not able to fully care for themselves (e.g. Soviet era and is not really compatible with a free elderly, disabled, children). The official cost of living for market economic system. The elderly, the families the year 2000 was 62.5 Euro, whereas the minimum with many children, the unemployed and the so- wage was approximately 24 Euro and the minimum called ‘budget sphere employees’ (e.g. doctors, pension 17 Euro. The development of the black teachers, social sphere employees…) represent the economy and the imperfection of taxation policy have categories of people most directly affected by resulted in a state budget which is manifestly poverty. The budget sphere employees earn only 30 insufficient to cover the needs of the country.

■ Yugoslavia, FR (Ser./Mont.)

Overview markets, and the destruction of physical assets in the fighting have all contributed to the economic difficulties The swift collapse of the Yugoslav federation in 1991 of the republics. Reliable statistics continue to be hard to was followed by highly destructive conflict, the come by, and the GDP estimate is extremely rough. All destabilisation of republic boundaries, and the break-up sanctions have now been lifted. Yugoslavia is in the first of important inter-republic trade flows. Output in stage of economic reform. Severe electricity shortages Yugoslavia dropped by half in 1992-93. Like the other are chronic, the result of lack of investment by former former Yugoslav republics, it had depended on its sister regimes, depleted hydropower reservoirs due to republics for large amounts of energy and manufactured extended drought, and lack of funds. GDP growth in goods. The break of many of the trade links, the sharp 2000 was perhaps 15%, which in large part drop in output as industrial plants lost suppliers and compensated for the 20% decline of 1999.

93 Demographics Education & Development

52% of Yugoslavia’s people live in urban areas, less Scientists and engineers are 1/1000 in Yugoslavia. The than is usual for Group 3 (58.6%) on average. number of computers per 1000 is relatively high: there are 20.7 computers / 1000 people. Unemployment is high and estimated to be around 30%.

The Caritas Yugoslavia Perspective

The great influx of non-Albanian people (Serbs, people living in the centres cannot find a job and earn Montenegrins, Roma) from Kosovo, which started in their living. As a consequence of inadequate June 1999, resulted in some 200,000 internally accommodation, the lack of food and basic hygiene, displaced persons who entered Serbia during the many people become sick and the hospitals are course of last summer. Among these refugees from overcrowded with patients. Nowadays, hospitals have Bosnia and Croatia, there are more than 500,000 to face not only the lack of medicines but also the located primarily in the northern part of the country. lack of items necessary for the normal functioning of The living standard of these people is very low since their kitchens. The country urgently needs substantial they are accommodated in collective centres (e.g. provisions of medicines and medical equipment. This schools, hospitals, and factories) which are frequently is particularly important for the elderly and for the overcrowded. Hygiene conditions are precarious children who are the most vulnerable to diseases and because of the lack of facilities. In such a situation, the infections provision food becomes increasingly necessary since

94 Conclusions and Policy Recommendations

As this report has amply demonstrated, poverty is ■ The stability of institutions guaranteeing a multi-dimensional, complex issue and therefore is democracy, the rule of law, human rights and not amenable to simplistic solutions. A holistic respect for and protection of minorities (political approach is necessary - not simply to alleviate criterion); poverty (although this is a good in and of itself) - ■ The existence of a functioning market economy but to eradicate it from society. The elimination of as well as the capacity to cope with poverty involves tackling the root causes and competitive pressure and market forces within putting in place a matrix of multi-sectoral the European Union (economic criterion); approaches and programmes. In developing such ■ The ability to take on the obligations of approaches and programmes, the centrality of the membership including adherence to the aims of human person must be underscored. Thus, human political, economic and monetary union (criterion dignity, equity, basic human needs and rights, concerning adoption of the Community acquis. participation, social and political inclusion are all key concepts in this approach. In the current As a grouping of relief, development and social enlargement process which seeks to embrace the work organisations throughout Europe, Caritas associated countries of central and eastern Europe, Europa places particular stress on the first of these the European Council in Copenhagen (June 1993) criteria. Ensuring democracy (including political developed the following criteria41: participation, the fostering of a vibrant civil society, social inclusion), the rule of law, respect for human rights in their widest sense and respect for and protection of minorities are of paramount importance in the creation of a more just, more equitable European Union. In particular, we would emphasise the following policy recommendations:

41 Enlargement: Preparing for Accession, European Commission. Last updated on May 14 2001. 95 Website: http://europa.eu.int/scadplus/leg/en/lvb/e4001.htm. ■ Introduction

Employment-oriented activities

Since unemployment has been identified as the key factor in the poverty matrix, particular attention should be given to the unemployed, particularly the long-term unemployed. The promotion of job-oriented programmes, training and vocational courses would greatly facilitate the reintegration into the labour market of those in long term unemployment.. Initiatives need to be developed to improve infrastructures and create new jobs, placing particular emphasis to the fight against social exclusion.

This goal could be achieved by:

■ Promoting access to the job market for ■ Eliminating any form of discrimination - based on everybody; gender, ethnic origins, sexual orientation, ■ Guaranteeing to workers a minimum wage and language, disabilities and religion of the job one which will meet their family's needs; seeker - in the labour market; ■ Innovation in social service thorough the creation of new jobs

In regard to the fight against social exclusion, jobs should be provided for disabled people, through, for instance, the introduction of a quota system with financial incentives for employers. Moreover financial assistance could further contribute to enabling those persons who find it difficult to get a job to remain in or enter the labour market.

Education and Training

The link between educational levels and the capacity/opportunity to find a suitable job is firmly established. Illiteracy, poor educational attainment and lack of skills training all limit the individual's options and potential. Thus, the acquisition of knowledge, skills and qualifications should be acknowledged as vital in today’s highly competitive world. Investment in human capital is critical for the future. There is the need of targeted actions for:

■ The amelioration of educational methods and the ■ The permanent fight against illiteracy through necessary support systems for those children accessible, affordable adult literacy and skills living in the most disadvantaged areas and for training programmes those children with cultural, physical and/or ■ The promotion of life-long learning should be mental handicaps. considered a political priority.

Education should be freely accessible in order to give to everybody the chance to acquire a certain level of competence necessary to enter the labour market, to contribute meaningfully to society and to fulfil each person's potential.

41 96 Enlargement: Preparing for Accession, European Commission. Last updated on May 14 2001. Website: http://europa.eu.int/scadplus/leg/en/lvb/e4001.htm. Social Protection

Social benefits need to improve the situation of the socially excluded and to provide security for those f people who are not in a position to assume full responsibility for their own livelihood. Such social security should be Independent from a person's participation in the labour market but be determined according to the specific needs of each individual. In this regard, each person should be entitled to:

■ Access to social benefits ■ The right to retirement pension which allows the ■ A guaranteed minimum income elderly to live securely and in dignity. Today, in some of the richest countries of the world, the elderly are faced with the invidious choice of heating their homes or eating decently.

These entitlements should enable large categories of people - such as those ejected or excluded from the labour market, families with more than three children and disabled people - to avoid both chronic poverty and social exclusion. Benefits low-income households should be larger in order to help the most disadvantaged. The necessary modernisation of social protection systems should be based, above all, on the principle of solidarity and the equitable sharing of the benefits of society.

Healthcare

It is widely recognised that the promotion of health and well-being is the cornerstone of development. Good health is both an engine for economic growth and a consequence of it. In this respect, it should be made clear that the link between health and living conditions has to be the basis for the health promotion programmes in order to promote health, notably for the socially disadvantaged groups. In the interest of social justice:

■ Low-income individuals or persons with above ■ Recipients of wage-replacement benefits (e.g. average expenditure due to illness, disability or unemployment benefit, sick pay and minimum the need for regular or constant care should be resources) should be likewise ensured ; exempt from any medical treatment charge and ■ Family members with no income or only a very hence from all other additional payments; low income of their own should also be automatically insured.

Local authorities have developed projects and initiatives to improve medical care for the homeless, focusing on ease of access to medical care. National and regional government regulations should support these initiatives in order to contribute significantly to help the most disadvantaged. Primary care has to be guaranteed without regard to the question of finance.

97 Housing

There is the need for more housing suitable for poor families, the elderly and other disadvantaged people. Tenants and potential tenants with low income should have secure access to decent housing through housing allowances and social housing schemes. To this end:

■ Recipients of social assistance should receive a ■ Housing benefits should be paid to low-income financial contribution to ensure suitable housing households (i.e. in the form of a top-up payment and heating costs, in addition to the basic social for the cost of housing); assistance rate; ■ For the needs of the homeless, pilot projects should be developed in order to establish alternative forms of cheap housing.

Granting special housing benefits for those households in need and making a better use of the existing stock of accommodation are but two ways that can help in better targeting public action in the housing sector.

Lone Parent Families and Families with more than three children

There needs to be better harmony between the demands of family life and the exigencies of earning a living. In this respect, accessible and affordable child-care facilities such as kindergartens and nursery places need to be made available to low-income, disadvantaged groups. Childcare subsidies and childcare allowances are two important examples of good practice that would improve the participation in the labour market - both for parents with a larger than average number of dependent children and for lone parents. With the financial needs of the family in mind, the following should be strengthened:

■ Financial contributions to those parents in a ■ Support for parents with small children (e.g. difficult economic situation in order to ensure the parental leave, medical care for pregnant women, welfare of their children; financial support). ■ Educational systems taking fully into account those families with financial difficulties (e.g. guaranteeing a sufficient number of free childcare facilities);

98 The Elderly

The old-age pension should allow a person without any other income a reasonable standard of living.

■ Home-based care for the elderly and the infirm ■ There should be a legal entitlement to social should be strengthened, particularly in those situa- assistance whenever a person, because of age tions where the elderly are not self-reliant and, as a and/or personal situation, cannot obtain sufficient consequence, they are more vulnerable to the risk income from employment, social insurance, private of social exclusion. Home care should cover a large maintenance entitlement or other sources. range of services and be provided independently from the financial situation of the elderly;

In this respect and as is the case for all other social services, it is fundamental to ensure that the necessary information should be readily accessible and the procedure as simplified as possible. Such transparency of information would avoid current problems where those entitled fail to claim all their due benefits, either because of ignorance concerning entitlement or because of frustration related to the procedure, and, as a result, fall below the socio-cultural minimum standard of living.

Asylum Seekers

Every asylum seeker unable to meet their cost of living should be given accommodation, social assistance and access to full medical care. In particular:

■ Asylum seekers should enjoy the same social ■ Psychological support, especially in the initial period assistance benefits as nationals and other residents; after arrival, basic language and vocational ■ With regard to young asylum seekers, schooling training should be provided for asylum seekers; should not finish at the end of the compulsory ■ Support should be provided to self-help groups period, but on a completion of an education within the refugee community. geared to the potential of the student and leading to a worthwhile career;

Asylum seekers should enjoy the right to free movement and be given documents proving their status. This process should be a speedy one. Governments should also facilitate contacts between asylum seekers and the local population, with a view to increasing public awareness and understanding of asylum seekers’ situation.

99 Legally resident migrants

There is a need to ensure fair treatment of third-country nationals who reside legally on the territory of EU Member States, as the European Council acknowledged in Tampere (15-16 October 1999). Caritas Europa supports the Council's declaration that a more vigorous integration policy should aim at granting legally resident migrants rights and obligations comparable to those of EU citizens. In addition some specific measures should be taken:

■ The right to reside in a country should go hand- ■ Specific efforts should be made with regard to in-hand with the right to take up employment; vocational training and life-long learning; ■ After a period of time (to be determined) the ■ Training of social sector staff in cross-cultural status of all family members who reunited with communication is essential. their "link" in Europe should become independent. The Commission proposal for a Council Directive on the status of long-term resident third country nationals is to be considered as a step in the right direction.

In addition to these specific requirements, legally resident migrants should also benefit from the recommendations made in this report with regard to education and training, job-oriented activities, social protection, healthcare, lone parent families and childcare institutions, housing, elderly etc.

Clandestine migrants and victims of trafficking

In addition to fighting organised crime, combating the trafficking in human beings and penalizing traffickers, there is a need to secure the basic rights of persons who - for whatever reason - find themselves in an "irregular" situation in Europe. There should be more effective investigations and more stringent punishment of those who exploit clandestine migrants on the "black labour market". Furthermore, there is need for:

■ Assistance to clandestine migrants enabling them ■ Providing clandestine migrants with support for to claim their human rights, for example if they survival according to the requirements of human are in forced labour or held in slavery-like dignity (accommodation, food, health-care etc.) conditions. ■ Victims of trafficking in human beings need ■ Creating an environment of a minimum of social professional psychological and social support. security for these "people without rights". This Victims of trafficking should be offered should, for example, allow them to sue a legal professional counseling enabling them to case against exploiters who did not pay the develop realistic future. agreed salaries;

Preventing future trafficking is the most effective way of combating the endless replay of this enormous human and personal tragedy. Any irregular status must not permit the disregard of the affected person's dignity. Regarding all clandestine migrants. government should take care of these persons' social and human problems simply because they are living on our territory. If governments do not do so, they could loose the ability to govern these sectors of their societies.

100 Relation between the European Union and the Central and Eastern European Countries (CEECs).

Stronger financial solidarity among the Members States of the European Union and the EU candidate countries and the non-candidate countries of Europe should be developed. In particular:

■ There should be a renewed statement of and ■ The European Union should foster support for commitment to the principle of solidarity among regional cooperation among the Western, citizens, regions and Member States of the Central and Eastern European countries in order European Union and the rest of Europe, in to strengthen the exchange between peoples; particular o the candidate countries. The ■ The European Union should call on NGOs in the European union should strengthen this solidarity EU countries and in the CEECs to participate in with the candidate countries through the these exchanges. Such participation should not Structural Funds; be limited to those NGOs from the economic or ■ The EU Member States should develop their administrative sphere but should encompass the commercial and cultural exchanges with the broad range of civil society organisations. candidate countries during the pre-accession phase and as part of the accession strategy. In relation to economic globalisation of the economy, within the framework of world trade negotiations, the European Union in particular should ensure that the situation in central and eastern European countries is taken fully into account;

The European Union is already the largest economic and trading bloc in the world. Unfortunately its political influence has tended to lag behind this reality. It is hoped that, through such measures as the above, applicable not only in the European Union but in the candidate countries, non-candidate countries and even further afield to the even poorer countries of the South, the European Union can also become the flagship of a more humane, just and equitable grouping of countries.

Group 1 European Union Plus

Group 2 Candidate Countries to Membership

Group 3 Non Candidate Countries

101 Caritas Europa Member Organizations

■ ALBANIA Caritas Secours International Belgique Caritas Albania Rue de la Charité 43a Rruga Don Bosko, 4 1210 Brussels Tirana Tel.: (+32.2) 229 36 11 Tel.: (+355.42)30 088 Fax: (+32.2) 229 36 36 Fax: (+355.42) 34 327 [email protected] [email protected] www.caritasalbania.org Caritas Vlaanderen Guimardstraat 1 ■ ANDORRA 1040 Brussels Caritas Andorrana Tel.: (+32.2) 507 01 05 Casa de l’Església Sta. Ma del Fener, Fax: (+32.2) 512 01 18 C/.Sant Salvador,9 [email protected] Andorra La Vella Tel.: (+376.8) 06 111 ■ BOSNIA-HERZEGOVINA Fax: (+376.8) 66 414 Caritas Bosnia-Herzegovina [email protected] M.1.K. Ljubusaka 6 www.caritas.ad 71000 Sarajevo Tel.: (+387.71) 20 64 42 ■ ARMENIA Fax: (+387.71) 20 66 68 Caritas Armenia [email protected] 41, Mhes Mkrtchyan Giumry ■ BULGARIA Tel.: (+374.41) 37201 Caritas Bulgaria Fax: (+374.41) 39368 Oboriste Str. 9 [email protected] 1504 Sofia Tel.: (+359.2) 944 18 58 ■ AUSTRIA Fax: (+359.2) 946 11 33 Oesterreichische Caritaszentrale [email protected] Albrechtskrethgasse 19-21, 1160 Vienna ■ CROATIA Tel.: (+43.1) 48831410 Caritas Croatia Fax: (+43.1) 488319400 Kaptol 26 [email protected] 10000 Zagreb www.caritas.at Tel.: (+385.1) 48 12 022 Fax: (+385.1) 48 12 103 ■ BELARUS [email protected] Caritas Belarus 3/22 Masherova Str. ■ CZECH REPUBLIC 200000 Minsk Ceska Katolicka Tel.: (+375.17) 227 51 02 Charita Fax: (+375.17) 227 51 02 Vladislavova 12 [email protected] 11100 Prague 1 Tel.: (+420.2) 96 24 33 43-44-45 ■ BELGIUM Fax: (+420.2) 96 24 33 33 Caritas Catholica Belgica [email protected] Guimardstraat 1 www.charita.cz 1040 Brussels Tel.: (+32.2) 51 10 468 ■ DENMARK Fax: (+32.2) 51 20 118 Caritas Denmark [email protected] Vibevej 7 A, 1 2400 Copenhagen Caritas en Communauté Francophone et Tel.: (+45.38) 10 30 49 Germanophone Fax: (+45.38) 10 53 40 Rue Belliard 23a [email protected] 1040 Brussels www.drc.dk/medorg/caritas.htm Tel.: (+32.2) 230 39 27 Fax: (+32.2) 230 23 77 [email protected]

102 ■ ENGLAND AND WALES ■ GEORGIA CAFOD Caritas Georgia Catholic Fund for United Kingdom 65 Zhiuli Shartava str. Overseas Development 380060 Tbilisi 2 Romero Close, Tel.: (+995 32) 94 2073 Stockwell Road Fax: (+995 32) 94 2073/29 3944 London SW9 9TY [email protected] Tel.: (+44.207) 73 37 900 Fax: (+44.207) 27 43 630 ■ GERMANY [email protected] Deutscher Caritasverband www.cafod.org.uk Postfach 420 79104 Freiburg im Breisgau CASC Tel.: (+49.761) 200 274 Catholic Agency for Social Concern Fax: (+49.761) 200 5 72 39 Eccleston Square [email protected] London SW1 V1BX www.caritas.de Tel.: (44207) 428 43 71 Fax: (44207) 630 51 66 ■ GREECE [email protected] Caritas Hellas Kapodistriou 52 ■ ESTONIA 10432 Athens Caritas Estonia Tel.: (+30 1) 524 66 37/78 79 Vene Street 20-4 Fax: (+30 1) 524 79 90 10123 Tallinn [email protected] Tel.: (+3726) 442 918 Fax: (+3726) 313 453 ■ HUNGARY [email protected] Caritas Hungarica Postafiok 239 ■ EUROPA 1519 Budapest Caritas Europa Tel.: (+36 1) 372 09 10/365 09 79 Rue de Pascale Fax: (+36 1) 372 09 14 1040 Bruxelles [email protected] Belgium Tel.: (+32.2) 280 02 80 ■ ICELAND Fax: (+32.2) 230 16 58 Caritas Island [email protected] P.O. Box 7043 127 Reykjavik ■ FINLAND Tel.: (+354) 55 88 36 Caritas Finland Fax: (+354) 56 204 37 Maneesikatu 5 [email protected] 00170 Helsinki Tel.: (+358 0) 135 79 98 ■ IRELAND Fax: (+358 0) 135 40 01 TROCAIRE [email protected] 169 Booterstown Avenue Blackrock ■ FRANCE Co.Dublin Secours Catholique Tel.: (+353.1) 28 85 385/288 35 77 106 Rue du Bac Fax: (+353.1) 28 36 022 75341 Paris Cedex 07 [email protected] (+33.1) 45 49 73 00 www.trocaire.org (+33.1) 45 49 94 50 dir-action-france-international@secours- ■ ITALY catholique.asso.fr Caritas Italiana www.perso.club-internet.fr/faguir Viale Ferdinando Baldelli, 41 00146 Rome Tel.: (+39.06) 54 19 21 Fax: (+39.06) 54 10 300 [email protected]

103 ■ LATVIA ■ NETHERLANDS Caritas Latvia CORDAID Kraslavas 22-18 P.O. Box 16440 1003 Riga 2500 BK The Hague Tel.: (+3717) 21 02 66 Tel.: (+31.70) 31 36 300 Fax: (+3717) 21 02 66 Fax: (+31.70) 31 36 301 [email protected] [email protected]

■ LITHUANIA ■ NORWAY Caritas Lithuania Caritas Norge Aukstaiciu 10 P.B.5254 Majorstua 3005 Kaunas 0303 Oslo Tel.: (+370.7) 32 35 48 Tel.: (+47 23) 33 43 60 Fax: (+370.7) 20 55 49 Fax: (+47 23) 33 43 61 [email protected] [email protected] www.katolsk.no/caritas ■ LUXEMBOURG Caritas Luxembourg ■ POLAND B.P. 1721 Caritas Polska 1017 Luxembourg Skwer Kardynala Wyszynskiego 6 Tel.: (+35.2) 402 131 200 01-015 Warsaw Fax: (+32.2) 402 131 409 Tel.: (+48 22) 636 41 70 [email protected] Fax: (+48 22) 838 70 59 www.caritas.lu [email protected]

■ MACEDONIA ■ PORTUGAL Caritas Macedonia Caritas Portuguesa ul Petar Poparsov 47 Estrada do Forte de Ameixoeira 19 91000 Skopje 1700 Lisbon Tel.: (+389.91) 22 06 22 Tel.: (+35121) 759 60 46 Fax:(+389.91) 22 06 22 Fax: (+35121) 759 62 40 [email protected] [email protected]

■ MALTA ■ ROMANIA Caritas Malta Confederatia Caritas Romania 5, Lion Street Strada Washington 38 Sector 1 VLT 16 Floriana 71241Bucarest Tel.: (+356) 24 19 29/24 53 58 Tel.: (+40 1) 231 29 00/230 40 13 Fax: (+356) 24 63 74 Fax: (+40 1) 231 29 00/230 40 13 [email protected] [email protected]; [email protected] www.caritas.ro ■ MOLDOVA Caritas Moldova ■ RUSSIA Stradel La Sf. Andreï 7 Federal Caritas of Russia Chisinau MD 2004 P.B.33 Tel.: (+373.2) 29 31 56 191014 St Petersburg Fax: (+373.2) 29 31 49 Russia [email protected] Tel.: (+7812) 27 27 838 Fax: (+7812) 27 27 838 ■ MONACO [email protected] Caritas Monaco 6 rue des Fours Caritas of the Asian 98000 Monaco Part of Russia Principality of Monaco P.O. Box 38 Tel.: (377) 93 30 87 70 630033 Novosibirsk Fax: (377) 93 25 01 04 Russia [email protected] Tel.: (+73832) 47 65 47/73832 55 11 56 Fax: (+73832) 47 65 47/73832 55 11 56 [email protected] www.cis.ru/~caritasp

104 Caritas of the European ■ SWITZERLAND Part of Russia Caritas Schweiz P.B. 93 Löwenstrasse 3 127434 Moscow 6002Lucerne Russia Tel.: (+41 41) 419 22 22 Tel.: (+7095) 95 60 585/7095 97 62 438 Fax: (+41 41) 419 24 24 Fax: (+7095) 95 60 585/7095 97 72 438 [email protected] [email protected] www.caritas.ru ■ TURKEY Caritas Turquie ■ SCOTLAND Harbiye Cayiri Sok no 64 SCIAF 80230 Emadag - Istanbul Scottish Catholic International Tel.: (+90 212) 234 45 64/240 88 01 Aid Fund Fax: (+90 212) 240 88 01/233 11 93 19 Park Circus [email protected] Glasgow G3 6BE Tel.: (+441) 41 35 45 555 ■ UKRAINE Fax: (+441) 41 35 45 533 Caritas Ukraine [email protected] Caritas of the Greek Catholic Church http://www.sciaf.org.uk/ Vul. Ozarkevycha 4 79016 Lviv ■ SLOVAKIA [email protected] Slovenska Katolicka www.caritas-ukraine.org Charita Tel.: (+380.322) 96 68 90/96 68 91/97 88 08 Kapitulska 18 Fax: (+380.322) 96 68 90/96 68 91/97 88 08 81415 Bratislava Tel.: (+4212) 54 43 25 03/28 01/15 06 Caritas Spes Fax. :(+4212) 54 43 30 97 Caritas of Roman CatholicChurch in Ukraine [email protected] Vul. Kostiantynivska 22/17, kv. 15 04071 Kyiv ■ SLOVENIA Tel.: (+380.44) 467 60 80/462 59 17/416 43 79 Caritas Slovenia Fax: (+380.44) 416 63 75 Kristanova 1 [email protected] 1000 Ljubljana Tel.: (+386 1) 300 59 60 ■ YUGOSLAVIA Fax: (+3861) 232 31 86 Caritas Yugoslavia [email protected] Visegradska 23 www.karitas.si 11000Belgrade Tel.: (+38111) 36 10 325 ■ SPAIN Fax: (+38111 ) 68 84 58 Caritas Espanola [email protected] Apartado de Correos no 10095 28015 Madrid Tel.: (+3491) 444 10 00 Fax: (+3491) 593 48 82 [email protected] ■ All these Caritases are also members of www.caritas-espa.org Caritas Internationalis ■ SWEDEN Palazzo San Calisto Caritas Sverige V-00120 Ölandsgatan 42 Vatican City 11663 Stockholm Tel.: (+39.06) 698 79 799 Tel.: (+46 8) 643 80 29 Fax: (+39.06) 698 87 237 Fax: (+46 8) 702 05 55 [email protected] [email protected] www.caritas.org

105 Bibliography

■ Human Development Report 2001, ■ Poverty and social exclusion in Britain United Nations Development Programme, by David Gordon et al., is published by the UNDP, New York, published by Oxford Joseph Rowntree Foundation University Press, 2001. (ISBN 1 85935 059 3)

■ 2001 World Development Indicators, ■ Georgia. Portfolio Of Operations, The World Bank, Washington DC, 2001. The World Bank Group, January 2001.

■ Eurostat Yearbook 2001, ■ Georgia. Fy02-04 Country Assistance Strategy. Office for Official Publications of the European Draft Of Primary Directions, Communities, Luxembourg. The World Bank Group, January 12, 2001.

■ The CIA Factbook, ■ Poverty In Transition – Transition In Poverty edit. available on line from www.odci.gov/index.htm. UNESCO, 1999, Chapter Four “Towards Poverty Eradication in Georgia” (based on the survey of ■ The European Community's Development Policy, the Institute of Demography and Sociological Statement by the Council and the Commission, Research of Georgia. 2001, available on line from: http://europa.eu.int/comm/development/lex/en/ ■ Poverty Reduction in Estonia, Latvia and council2001110_en.htm. Lithuania 2000. Riga, 2000. Highlights of the Conference on ■ Republic Of Armenia: Country Report On Poverty Reduction in Baltic State 10-11 February Population And Development 1999, 2000. http://www.undp.riga.lv Republic Of Armenia – National Report, R.O.A. Ministry Of Statistics, Prepared for the ■ Social Report 1998. International Hague Forum on ICPD+5, The Republic of Latvia. Ministry of Welfare. Hague, Netherlands, 8-12 February 1999. ■ On the Verge of Poverty. Welfare and Economic ■ Social Assessment On The Republic Of Armenia, Transition in Latvia, Report 2000, Franziska Gassmann, Maastriccht, 2000. by Khachikian, M. for the Population Institute, Yerevan, Armenia, 2000. ■ Social Policy Research Series: by Martee Keune, Frannnziska Gasssmann, ■ Food Security And Nutritional Status Survey, Chris de Neubourg, Ilze Trapenciere, Ritma Prepared by WFP (United Nations World Food Rungule, Maruta Pranka, Ta_a L_ce, Nora Programme), UNICEF (United Nations Children’s Dudwick, Aadne Aasland. Ministry of Welfare of Fund), UNHCR (United Nations High the Republic of Latvia, United Nations Commissioner for Refugees), Armenia, Development Program. Riga, Latvia 2000. September 2000. ■ Le sentiment de solitude: quelle population est ■ Human Development Report, Armenia 1998, la plus concernée ? Population et Emploi, The Role Of The State, Frédéric Berger, Differdange, 1999. UNDP (United Nations Development Program), Armenia, 1998 ■ Indicators of Poverty in Transitional Russia, Lilia Ovcharova et al. Economic Research ■ Human Rights And Human Development Report, Consortium, Working Paper No. 98/04, p. 4. Action For Progress, Human Development Report, UNDP (United ■ Poverty in Russia During the Transition: Nations Development Program), Armenia, 2000. An Overview, Klugman, Jeni and Jeanine Braithwaite. World Bank Research Observer, Vol. 13, No. 1 (February 1998), pp. 37-58.

106 ■ Russia: Reports Says Women Bear Brunt ■ Las condiciones de vida de la población of Poverty. pobre desde la perspectiva territorial. Sophie Lambroschini. Pobreza y Territorio. (Year and publication not listed). Caritas-Fundación Foessa, EDIS, Alguacil, J, Camacho, J., Fernández, F., Renes,V., Trabada, E. ■ Persistent Poverty in Russia, Madrid, 2000. Dmitri Spryskov. Working paper # BSP/2000/037E for the New Economic School, ■ Las condiciones de vida de la población p.4 pobre en España. Caritas-Fundación Foessa, EDIS, Ayala, L., ■ 2002 - Global economic needs a growth Esteve, F., García Lizana, A., Muñoz de Bustillo, locomotive, R., Renes, V. y Rodríguez Cabrero, G. (1998) United Nations Economic Commission for Madrid 1999 Europe (UNECE), 15 November 2001 ■ Les Oubliés de la Croissance, ■ 2002 - Transition economies: considerable risks Caritas France, Secours Catholique, Paris 1999 due to the global downturn, United Nations Economic Commission for ■ La France des sans ressources, Europe (UNCE), 15 November 2001 Caritas France, Secours Catholique. Paris 2001

■ Enlargement: Preparing for Accession, ■ Caritas Germany, Deusche Caritas Verband, Commission of the European Communities, Ein Drittel Habe nichtse, in: ‚Sozialcourage’, updated May 2001, available on line: Freiburg-i Br. 1999; Hauser ,R. und Hübinger, W.: http://europa.eu.int/scadplus/leg/en/lvb/e4001.htm. Arme unter uns, Freiburg i.Br., 1993; Hübinger, W. und Neumann, U.: Menschen im Schatten. ■ Enlargement and Civil Society, Lebenslagen in den neuen Bundesländern, hrsg. Proceedings of the European Commission vom Diakonischen Werk der EKD e.V. und dem sponsored Caritas Conference, Brussels, Deutschen Caritasverband e.V., Freiburg i. Br., October 1999. Caritas Europa, 4 rue de 1997 Pascale, 1040 Brussels, Belgium. ■ Caritas Italiana, Rapporto 1996 su ■ Leben am Rand des Sozialsystems. emarginazione ed esclusione sociale - Die Klientinnen und Klienten der „I bisogni dimenticati“, Rapporto 1997 sui Sozialberatungsstellen der Caritas Österreich, bisogni dimenticati-„Gli Ultimi della Fila“, Caritas Austria, Caritas Österreich, Wallner- Rapporto 1998 su emarginazione e disagio Ewald S., Verarmungsrisiken im Wohlfahrtsstaat nei contesti familiare Fondazione - II. Julius Raab Stiftung, Wien 1999 „La rete spezzata“,-Fondazione E. Zancan, Feltrinelli, Roma ■ El Context Social de la transicio a la Vida Adulta dels joves a Andorra, ■ Poverty in Malta-Report 1994, 1996, 1998. Estudi sobre la Joventut al Principat d’Andorra, Caritas Malta 2000; Nadal-Butlleti informatiu de Caritas Andorrana desembre 2000 ■ Report of activities 2000 Caritas Moldova. ■ Políticas sociales contra la exclusión social. Cáritas Española Actas del Simposio realizado ■ Working poor: ils sont pauvres et pourtant ils en Madrid Junio 1997. Published in ‘DOSSIER’ travaillent, nº 43 Prise de Position de Caritas Suisse, Editions Caritas, Lucerne 1998.

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