11 October 2005 - The Slovak Republic was something of a latecomer to the economic transformation that swept through Central and Eastern Europe in the 1990s. However, since 1998 the country has implemented an extensive and far-reaching package of social and structural reforms.
The very demanding political reforms implemented after the 2002 election, in particular, have been praised by many for the depth and speed of the changes and the sharp increase in competitiveness and economic dynamism that they have brought about.
However, concerns have also been voiced about the potential negative effect of the reforms on the drive for social inclusion to which the government is committed. Individuals who face strong and complex barriers to employment are at an economic disadvantage in a country that increasignly emphasizes work as an individual's right, duty and main ticket out of poverty.
Until now, little systematic effort has been made to monitor the impact of the reform process begun in 1998 - and the growth it generated - on the incidence, depth and profile or poverty in the Slovak Republic. It is extremely important for the sustainability of the reform process that its effects to date be quantified, even in an imperfect manner.
Within this context, this new report provides the following:
• A baseline analysis of the current performance of the Slovak economy in the areas of
employment, labor market segmentation and social exclusion, against which future
development can be assessed and evaluated.
• An assessment of the impact of the far-reaching structural reforms implemented after the 2002 elections on (i) the living standards of the most vulnerable; (ii) the distribution of income and welfare; (iii) job creation and employment opportunities; and (iv) the levels of and inequalities in
work income.
• An effort to advise on any actions/policies that may further increase the effectiveness
of the recent reforms as a strategy for promoting social inclusion.
• An effort to advise on setting up the institutional structure for the regular and
comprehensive monitoring of the dynamics of growth, job creation, employment,
living standards and social exclusion in the Slovak Republic.
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