Welfare State Transformation in the Context of Socio-economic and Political Changes A Comparative Analysis of the post-Yugoslav States: Slovenia, Croatia, Serbia and Macedonia Dissertation zur Erlangung des akademischen Grades Doktor der Wirtschafts- und Sozialwissenschaften (Dr. rer. pol.) von Marija Stambolieva Kassel, Juni 2014 Die vorliegende Arbeit wurde vom Fachbereich Gesellschaftswissenschaften der Universitaet Kassel als Disseration zur Erlangung des akademischen Grades eines Doktors der Wirtschafts-und Sozialwissenschaften (Dr. rer.pol.) angenommen. 1. Gutachter: Prof. Dr. Wolfgang Schroeder, Universität Kassel 2. Gutachter: PD Dr. Rudolf Speth, Universität Kassel Tag der mündlichen Prüfung: 18.07.2014 1 TABLE OF CONTENTS List of Tables .................................................................................................................................. 7 List of Figures ................................................................................................................................. 9 1 Introduction ........................................................................................................................... 10 1.1 Research Goals and Questions ...................................................................................... 11 1.2 The Concept of Welfare State ....................................................................................... 13 1.3 Theoretical Framework ................................................................................................. 16 1.3.1 Current State of Research ....................................................................................... 16 1.3.1.1 Theories on Welfare State Development and Transformation ........................ 16 1.3.1.2 Welfare State Regimes .................................................................................... 22 1.3.1.3 The Post-Communist (Welfare) States – Theories and Regimes .................... 24 1.4 Hypothesizing the post-Yugoslav Welfare Trajectories ............................................... 32 1.4.1 Summary of Main Findings .................................................................................... 36 1.5 Structure of the Book .................................................................................................... 42 2 Historical Legacies: Main Political and Economic Processes and the Development of the Yugoslav Welfare System............................................................................................................. 43 2.1 The Historical Divide: Ottoman vs. Habsburg Rule ..................................................... 43 2.2 The First Yugoslav Amalgamation (1918-1941) .......................................................... 45 2.3 The Legacy of Socialist Yugoslavia (1945-1991) ........................................................ 47 2.3.1 Main Political Processes ......................................................................................... 47 2.3.2 Main Economic Processes ...................................................................................... 52 2.3.3 Regional Discrepancies ........................................................................................... 55 2.3.4 The Yugoslav Social Policy Regime ...................................................................... 57 2.3.4.1 Definitions ....................................................................................................... 58 2.3.4.2 Social Policy in Party Documents ................................................................... 59 2.3.4.3 Social Inequalities............................................................................................ 60 2.3.4.4 Social Insurance ............................................................................................... 61 2.3.4.4.1 Institutional Organization and Financing .................................................... 62 2.3.4.4.2 Pension and Disability Insurance ................................................................ 65 2.3.4.4.3 Health Insurance .......................................................................................... 66 2.3.4.4.4 Unemployment Insurance ........................................................................... 67 2.3.4.5 Social Protection .............................................................................................. 68 2.3.4.5.1 Social Protection Services and Rights ......................................................... 68 2.3.4.5.2 Institutional Organization and Financing .................................................... 70 3 Slovenia................................................................................................................................. 74 2 3.1 Economic Development ................................................................................................ 74 3.2 Changes to the Welfare System .................................................................................... 76 3.2.1 Pension system ........................................................................................................ 76 3.2.1.1 Financing ......................................................................................................... 77 3.2.1.2 Coverage .......................................................................................................... 78 3.2.1.3 Benefits ............................................................................................................ 80 3.2.1.4 Structure........................................................................................................... 83 3.2.2 Healthcare system ................................................................................................... 84 3.2.2.1 Financing ......................................................................................................... 84 3.2.2.2 Coverage .......................................................................................................... 87 3.2.2.3 Benefits ............................................................................................................ 88 3.2.2.4 Structure........................................................................................................... 89 3.2.3 Labor market and unemployment protection .......................................................... 91 3.2.3.1 Financing ......................................................................................................... 92 3.2.3.2 Benefits and Coverage ..................................................................................... 93 3.2.3.3 Employment measures ..................................................................................... 95 3.2.4 Social protection ..................................................................................................... 96 3.2.4.1 Financing ......................................................................................................... 98 3.2.4.2 Benefits and Coverage ..................................................................................... 99 3.2.4.3 Structure......................................................................................................... 101 3.3 The Erased .................................................................................................................. 102 3.4 Political Context.......................................................................................................... 103 3.5 The Politics of Welfare ............................................................................................... 108 3.5.1 From Yugoslavia to the European Union (1990-2004) ........................................ 108 3.5.2 The Janša government (2004-2008)...................................................................... 112 3.5.3 The Pahor government (2008-2012) ..................................................................... 115 3.6 Agency and Cleavage Structures: (Neo-)corporatist Approach .................................. 117 4 Croatia ................................................................................................................................. 122 4.1 Economic Development .............................................................................................. 123 4.2 Changes to the Welfare System .................................................................................. 124 4.2.1 Pension system ...................................................................................................... 124 4.2.1.1 Financing ....................................................................................................... 125 4.2.1.2 Coverage ........................................................................................................ 126 4.2.1.3 Benefits .......................................................................................................... 128 4.2.1.4 Structure......................................................................................................... 133 3 4.2.2 Healthcare system ................................................................................................. 134 4.2.2.1 Financing ....................................................................................................... 134 4.2.2.2 Coverage ........................................................................................................ 137 4.2.2.3 Benefits .........................................................................................................