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Slovakia Enters the New Millenium with Optimism

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Slovakia Enters the New Millenium with Optimism Foreword Slovakia enters the new Millennium with optimism. A recent evaluation report released by the Economic Commission concluded that Slovakia is in "excellent negotiating position" to accede to the European Union. Furthermore, in July 2000, the country was invited to join the Organization for Economic Cooperation and Development becoming the 30th member. This is an important step in the development of Slovakia because it marks its determination to move towards a society based on democratic rules and social progress. The transformation which followed the velvet divorce of Czechoslovakia has produced mixed economic and social results. Some economic indicators have been relatively favourable while a social disaster has been avoided. For five years National Human Development Reports (NHDRs) have been prepared by national teams of experts and supported by UNDP. These reports examine the economic, social and political transformation from a human development perspective that puts people at the centre of the development debate. Every year the NHDRs ably analyse the most important achievements and setbacks in human development. Despite notable progress in the political and the human rights spheres, the country continues to face many other development challenges. For many people, the transformation has not resulted in increased well-being. On the contrary, many social and human indicators have deteriorated even during periods of economic growth. Attempts to stabilize and restructure the economy have not necessarily translated into social improvements. This has been a systematic finding of all the NHDRs which have shown repeatedly that economic growth does not automatically translate into human development. For this to happen, a positive link between growth and human lives must be created through national policies. The NHDR 2000 again points to many disturbing trends: Almost 11 percent of the population lives below the minimum subsistence level, registered unemployment rate continues to increase, reaching 20 percent in 1999. The youth unemployment rate rose from 24.8 percent in 1995 to 32.1 percent in 1999. This is increasing poverty, social exclusion and marginalization of many social groups in Slovakia, especially the Roma population where 100 percent unemployment rates have been reported in some communities. This exacerbates their already bad economic and social conditions. Almost 80 percent of the Roma population have only primary education and their health status is well below that of the general population. The report also highlights the gender disparities in Slovakia. Considering their high level of education and knowledge, women continue to be under-represented in decision making positions, concentrated in low paid jobs, and earn only 75 percent as much as men. If these human development issues are not addressed the country’s competitiveness and development would be retarded. Development should focus on increasing people’s capabilities, choices and opportunities. The analysis of this year’s report clearly shows that Slovakia needs above all a social agreement among relevant development and political stakeholders concerning the necessary reforms. It has become clear that the transformation is not simply a process of privatization and market liberalization. The "social sustainability" of this transformation should be at the centre of policy attention. Furthermore, as the struggle for greater democracy continues, the quality of governance needs to be continuously improved. UNDP would like to thank the national team of experts and all the persons who have worked on the report. Through the NHDRs UNDP hopes to continue contributing positively to the policy debate in Slovakia. Juliette Hage Human Development Adviser UNDP Acknowledgements The preparation of the National Human Development Report Slovak Republic 2000 would not have been possible without the cooperation and support of the authors; the Regional Bureau of UNDP RBEC in Bratislava, particularly Ms. Juliette Hage; INEKO – Institute for Economic and Social Reforms; Ministry of Labor, Social Affairs and Family of the Slovak Republic; Statistical Office of the Slovak Republic, Department of Social Statistics, particularly Mr. Milan Olexa. Our thanks for the cooperation and assistance are also due to Ms. Tatiana Letková, Mr. Štefan Condík, Ms. Martina Lubyová, Mr. Milan Kisztner, the printing office Šopa Print, as well as other individuals and organizations who directly or indirectly assisted in the preparation of this book. A team of independent authors bears full responsibility for the contents of the publication hereby submitted. The opinions presented in this publication represent solely those of the authors and do not necessarily reflect the views of the United Nations Development Programme. The co-ordinator of the National Human Development Report Slovak Republic 2000 is the Center for Economic Development (CED). CED is a non-profit, non-governmental organization focused on economic and social research. One of its main missions is to support long-term economic development as the prerequisite for a sustainable growth of the quality of life. CED is member of the informal association of non-governmental and non-profit organizations, INEKO GROUP. Summary The 2000 National Human Development Report for the Slovak Republic predominantly deals with two issues. First, are the opportunities for human development in Slovakia equal for both women and men? Second, what is the dimension of poverty in Slovakia? The status of women and men in Slovakia reflects the historical arrangement of gender relationships whose usual stereotype is man as the bread winner for the family, and woman as the mother in the household. Men and women in Slovakia have equal human rights guaranteed. The system of education offers equal opportunities to both men and women. The greatest gender differences manifest themselves in the labor market and in their representation in social and political life. Women in Slovakia prevail in less paid sectors of the economy and earn, on the average, three quarters of what men do. The participation of women on the decision-making areas of the economy and politics is low compared to their proportion in the society. Women also have a significant share of the unpaid household work, and thus become financially dependent on men. Prerequisites for equality of opportunities in society are to make family relationships democratic, raising the tolerance vis-a-vis other forms of lifestyles, and education of the young generation in the spirit of gender equality. The gender dimension in Slovakia is the focus of the second section of the Report. The term poverty is not defined in the Slovak legislation, though the phenomenon of poverty is present in a variety of forms. About 11 percent of the population lives in material distress that is the mirror of the Slovak poverty. Poverty mostly strikes the long-term unemployed whose exclusion from the labor market often arises from a low level of education. The groups that are at the highest risk of poverty include the elderly, children, incomplete families and families with several children. Due to lower average income and pensions, women are more likely to suffer from poverty than men. The typical features of poverty, including low level of education, high unemployment rates, dependence on social assistance on the part of the state, are most markedly shown in Slovakia in the Roma population whose large part live in misery. The resolution to the problem of poverty requires that stress be laid on the elimination of reasons that result in the emergence and spreading of poverty, as well as a functioning social net for the groups of population threatened by poverty. The most effective prevention of poverty is education that expands the potential of finding a way in the labor market, and – as a rule – represents a prerequisite for higher income. Measures supporting growth of employment and the targeted nature of the social system also positively affect the reduction of the poverty dimension in Slovakia. An analysis of poverty and social exclusion is contained in the third section of this publication. In its first section, the Report analyzes developments in key areas of Slovakia's life during the preceding year. It points out that political stability and democratic mechanisms in the functioning of political groupings are prerequisites for a long-term improvement in the quality of life. Slovakia gained an improved political image and was invited to join OECD. With the growing strains among the governmental parties, the dynamics of economic reforms has slowed down. The system of education lacks links with the labor market, and the education sector – despite its strategic importance - has to struggle with a prevailing financial and conceptual crisis. Major features of demographic development include the continuing aging of the population and the growing proportions of women in older age categories. A marked reduction in abortion rates is a positive trend. The life expectancy has had small increases for both women and men, with an 8-year difference in life expectancy that favors women. Section four of the National Report deals with various aspects of measuring human development. Quality of life is obtained from a combination of measurable and abstract values of life that have innumerable forms. The calculations of a human development index and of indices assessing gender equality are based on the most recent available statistical data. The inclusion
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