Efekti tranzicije na blagostanje i nejednakost u zemljama bivše SFRJ
Effects of Transition on Welfare and Inequality in the Countries of the Former SFRY

Author(s): Sanja Filipović
Subject(s): Economy, National Economy, Transformation Period (1990 - 2010), Post-Communist Transformation, Socio-Economic Research
Published by: Институт друштвених наука
Keywords: transition; SFRY; standard of living; inequality
Summary/Abstract: The aim of the paper is to determine the effects of the economic transition on the level of social welfare and inequality in the countries of the former Yugoslavia (Bosnia and Herzegovina, Croatia, North Macedonia, Montenegro, Serbia and Slovenia). After the disintegration of the former Yugoslavia, all countries opted for market reforms based on neoliberal economic principles. Since the beginning of the transition to a market economy, all countries had faced recession and hyperinflation, which resulted in the decline of the living standards. Therefore, the first phase of the transition aimed to establish macroeconomic stability, but also to liberalize the market, while the second phase of transition was focused on institutional reforms that would enable the inflow of capital. However, different political and economic circumstances, as well as the dynamics and method of implementing reforms, influenced the success of the transition process, which was reflected in the level of well-being in these countries. Even thirty years since the beginning of the transition, Slovenia has still maintained the highest level of well-being both in terms of gross domestic product per capita and the value of the Human Development Index. Additionally, Slovenia has the lowest level of inequality, which has been stable since 2004. Based on the data analysis, it can be concluded that the application of neoliberal economic principles had an effect both on the level of living standards and on the level of inequality, and it is of crucial importance to find a model of improving well-being and reducing inequality, which would be participatory and decentralized, federal and democratic.

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