By JA?nos Kornai, Karen Eggleston
Reform of the welfare quarter is a vital but tough problem for nations in transition from socialist imperative making plans to market-oriented democracies. right here a student of the economics of socialism and post-socialist transition, and a wellbeing and fitness economist tackle this problem. they provide health and wellbeing region reform concepts for ten international locations of japanese Europe, drawn from 9 guiding ideas. The authors finish that policymakers have to in achieving a stability, either assuring social team spirit via common entry to uncomplicated overall healthiness companies and increasing person selection and accountability via voluntary supplemental coverage.
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Extra info for Welfare, Choice and Solidarity in Transition: Reforming the Health Sector in Eastern Europe (Federico CaffA? Lectures)
So far as possible, let individuals choose for themselves. There should emerge a “menu” of various forms of ownership and mechanisms of control and coordination from which citizens can select. They should be able to learn, 13 14 15 This applies in most post-socialist countries today. The “pay-as-you-go” system and repeated changes in pension rules, coupled with tendencies to level out pensions, have loosened the correlation between the actual pension and the pension premium contributed during the active phase of the pensioner’s lifetime.
The only reason for including it among the declared principles is that politicians and academics who defend the status quo in the welfare sector tend to forget it. The incentives for efficiency (and here there is a substantial difference from present practice) must be given on the demand side as well, to citizens as recipients of welfare services. This means that with only the rarest exceptions, services should not be free. ) Even if the state or the insurer covers most of the cost of a good or service, recipients should make a co-payment,17 so that they appreciate that the good or service is not free.
The discussion on reforming the welfare sector brings out anti-capitalist, antimarket arguments in the rhetoric not only of radical socialists, but even of avowedly conservative politicians. This ideological opposition is an important terrain for a phenomenon already mentioned in the introduction: the survival of the socialist system, in this case in the indoctrinated prejudices of a high proportion of the public. Principle 4 (incentives for efficiency): Forms of ownership and control that encourage efficiency need to emerge.