Social (in)Security in Slovakia

Introduction

Slovak society was transformed in a short span of time from a quasi-egalitarian totalitarian society into a pluralistic, non-paternalistic society. A major demographic change is underway, associated with the loss of certainties and the weakening of the role of the state and family. In 2012, when intergenerational solidarity and active aging are often discussed, Slovak society and politics are not particularly concerned that we are among the countries with the worst intergenerational co-existence and health of older people. Part of the responsibility for this unfavourable situation also lies with social work. Social work must contribute to reversing the current state.

Current social work

This year the largest event for people dedicated to social work took place. It was the joint world conference called “Social Work and Social Development: Action and Outcome.” Two years earlier, this event was held in Hong Kong. That was where activity for the global social agenda began. (Hetteš, 2012(a))

The conference was organized by the International Federation of Social Workers (IFSW), the International Association of Schools of Social Work (IASSW) and the International Council on Social Development (ICSW). Therefore, the event was visited mainly by social workers—practitioners, representatives from schools of social work—educators, teachers—and NGOs—ordinary people involved in social work and social development at the civic level. The event created a lively global social network of people engaged in social work and social development, and of people for whom social justice is not indifferent.

Among the various activities that took place this year, I consider the following the most important in the area of social rights. At a meeting of the International Labour Organization on 15 June 2012 in Geneva, a revolutionary change occurred. The possibility of recognizing a social minimum is changing into a right. Member states of this international organization devoted to social progress approved this, although as only a recommendation, but it is an expression of global will to change.

Besides that new paradigm of changing the possibility of social security into entitlement, several other points can be noted. Above all, it is a reminder to re-embrace understanding of social work as a human-rights profession. This has been approved and debated several times. I recall here only for memory the manual for schools of social work and the social work profession, “Human Rights and Social Work: a Manual for Schools Social Work and Social Work Profession” (UN, 1994), and the standards of the social work profession regarding human rights, “Standards in Social Work Practice Meeting Human Rights” (IFSW, 2012), the standards of the social work profession regarding economic, social and cultural rights, “Standards in Social Work Practice Meeting Economic, Social and Cultural Rights” (IFSW-Europe, 2009), or the definition of social work adopted in Copenhagen on 27 June 2001 by social workers’ organizations (IFSW) and schools of social work (IASSW). During a pre-conference seminar on teaching social work, the need to teach human rights to future social workers was established. In the field of implementing human rights, the issue of universal application and cultural relativism remains. The issue of “Western” individualism and “Eastern” relatively greater importance of the collective and community remains. For us, the standards of social work regarding human rights (3.6.6.9) may be a stimulus, as it provides equal pay for social workers comparable to other professions.

The accepted definition of the International Federation of Social Workers (IFSW) and the International Association of Schools of Social Work (IASSW) from 2001 states that social work helps social change, helps solve problems in human relationships, and strengthens and frees people to achieve a good life. In solidarity with marginalized groups, social work as a profession must support social inclusion.

Transformations in Slovak society

Slovak society underwent rapid transformation. A new generation, often born already after the fall of communism, and even an older generation no longer realize what fundamental changes occurred. Before 1989, social security was fully paid from one source—the state budget. State social paternalism provided guarantees of relatively egalitarian security. People got used to this and took it as standard.

The essence of the state was quickly changed from a planned economy to a market economy in a not fully fair way (privatization, restitutions, auctions, etc.). In addition to unlawful procedures, there was even book burning, as in Nazi Germany. For example, the library of the Regional Planning Research Institute was lost this way. In the accession talks with the European Union we were then starting from scratch again. Europe plans. Even now we are in a planning period to 2013, e.g. in the European Social Fund, and we are also trying to meet the goals of Europe 2020 strategy.

Our national emancipation was fading at home. There was a peaceful split of former Czechoslovakia in 1993. A similar change had been achieved in 1905 by the Swedes and Norwegians. Paradoxically, we soon again “reunited” within a whole where there are now 27 members (compared with two in Czechoslovakia), which seeks to become a federation. Independent Slovakia brought with it an independent social policy that was not always compatible with standard European Union procedures. The influence of the World Bank and other overseas influences made coordination of parts of our social security system with the EU impossible. In the economy, we generally did well. Slovakia had the fastest growing gross domestic product (“the Tatra tiger”).

A well-deserved entry into the club of the world’s richest countries in the OECD in 2000 placed Slovakia among the states providing aid rather than receiving foreign aid. A Slovak agency for international development aid appeared at a time when we still had internal problems. The renewed connection with Czechia in 2004 and our need to find alignment with other member states significantly changed the role of the national state. The volume of national legislation became minority compared to the amount of European law (“acquis communautaire”). Free movement of people, ideas, goods, capital, and diseases affected everything in the originally relatively isolated Slovak society. In that same year (2004) we joined NATO. The application of the Schengen system from 2008 effectively removed borders, and Slovakia in fact became a border country for many other states, though geographically distant (Belarus, Turkey, Morocco, and others). We abandoned the national currency in 2009, when a major global financial crisis was already taking place. Few still remember that this all happened only recently. Visa regimes were cancelled with many countries (most notably with the USA and Canada). The position of the national state declined not only relative to supranational entities through transfer of part of state sovereignty, but also through transfer of powers in social policy to many actors that emerged (municipalities, non-state entities, etc.). What will come next? A single European state (initially as a federation), or a different development?

Social securities

Our fundamental law is the constitution. Its significance changed greatly with the adoption of many international and European commitments, which usually have greater legal force than national legislation. Article 39 guarantees citizens' right to adequate material security in old age and in incapacity for work, as well as in loss of a provider. It gives everyone in material hardship the right to assistance necessary to ensure basic living conditions. Article 40 provides the constitutional right to health protection. Through health insurance, citizens should have the right to free health care and to medical devices. These rights form principles of social work as a human-rights profession.

Demographic revolution

These rights are today often questioned and threatened. The reason often cited for this approach is the so-called ageing of the population. That people live longer is a gift. The problem of ageing lies in changed fertility rates. The entire world has essentially, due to demographic revolution, entered or is entering a state of human society decline. As soon as fertility falls below the replacement level of 2,1 children per woman, catastrophe begins. In 1955, Japan was the first to reach it. In 1980, the Czech Republic did, and in 1989 Slovakia. This transformation affects the whole world. It ends in Nigeria in 2050. In that period, stabilization of world population (about 9 billion people) is also expected. According to projections, the population in Slovakia should decrease by 200,000 by 2050, even taking possible migration into account. Since population decline and low fertility is a global phenomenon, we will not avoid it by inviting new Slovak citizens, and there will be a shortage of labour force. Primarily this will be in services for older people. Demography laws clearly state that if fertility moves, for example, if the number of births suddenly rises sharply, the share of economically active population will change again. And again, there is the “problem” of sustainability of the social security system, including pensions (now due to ageing). (Hetteš, 2011(a))

There are certain positive signals in parts of Europe where fertility has changed. France may be an example. In 2009 France reached level 2.0, while Slovakia was 1.4. (Eurostat, 50/2011)

In demography, there is a rule that during crises and wars the number of births declines and after war there is a sharp rise in births (“baby boom”). Current fertility in Slovakia, however, is lower than during the Slovak wartime state. The situation is truly serious and points to a crisis in society, to unsuitable social policy and severe social problems. Europe is a continent of migrants. Yet it is necessary to consider to whom we will be able to pass on all that we call Slovak and who will still be Slovak.

Health and social work

During the deliberations of the World Conference on social work and social development in Stockholm in July 2012, Lord Michael Marmot, chair of the World Health Organization commission on social determinants of health and professor of epidemiology, stated that health differences stem from social differences. Health is therefore also a matter for social work. If the state does not pay adequate attention to this issue, citizens’ health and satisfaction decline. He also gave Slovakia as an example of a country with particularly insufficient attention to the social area, which subsequently results in high mortality. (Stuckler, Basu, McKee, 2010)

Slovakia ranks among the weaker countries in Europe in terms of children's chances of not being materially discriminated against, in education, and in health care. Based on this knowledge, Slovakia has low intra-societal solidarity.

Social insecurities, social and state indifference to health also cause a low chance of surviving old age in good condition. According to Eurostat (60/2012), on Slovakia citizens have hope for healthy old age (without reliance on ongoing care) on average for only 3 years after reaching age 65. Women in Slovakia are worse in this regard, compared with the generally longer healthy age of men in Europe. This is almost 6 years less than usual in the European Union or Bulgaria. Bulgaria, meanwhile, is relatively economically behind Slovakia.

Citizen health is strongly affected by life satisfaction. Increasing happiness and satisfaction lowers the probability of developing a number of diseases. According to the Organisation for Economic Co-operation and Development Better Life Index (2011), Slovak society is among the least satisfied populations. Only Estonia and the Russian Federation are worse. The Leicester University well-being index in 2006 placed Slovakia in 129th position out of 178 countries (the first country being the happiest). If we recognize the role of social work in population health, we must also recognize its contribution to health inequalities. A poor social situation, dissatisfaction, and shortage of social and health workers are among the causes.

Unemployment and social work

At the Council of Ministers for Employment, Social Affairs, Health and Consumer Affairs (EPSCO) in Brussels this February, a document on the impacts of the crisis was presented. It also recommends increasing the number of “white-collar occupations” (healthcare and social services) in Slovakia as a way to reduce high unemployment. It is obvious this should have a positive effect on citizens’ health as well. Slovakia has low employment in this field compared with other member states of the European Union.

Michael Marmot also dealt with unemployment and its social impacts. According to his findings, a 1% increase in unemployment causes an increase in suicides by up to 0.8% and likewise homicides by 0.8%. Therefore claims about unemployment as a necessary evil in the interest of maintaining flexibility and economic dynamism sound truly asocial in this light.

Slovakia has long had high unemployment and, in general, the highest rate of long-term unemployment. The essence of the Slovak economy built on “cheap” labour and a weak social sphere therefore has its tax in morbidity, shortest length of healthy old age, dissatisfaction with life in Slovakia, and lower life expectancy. Many developing countries only recently overtook us. As Michael Marmot stated, problems and differences in health are not inevitable or unsolvable. A fair society is needed for us and for our children.

Solidarity in society and in the state

Slovakia has achieved marked success according to gross domestic product. According to Eurostat’s assessment (97/2012), we reached 73% of the EU average in GDP per person, and when purchasing power is considered, we caught up with Czechia. According to Eurostat’s August survey (35/2012), average income per person in Slovakia already surpassed Czechia. The problem in Slovakia, however, is that economic growth does not correspond to growth in well-being for everyone. Joseph Stiglitz stated this regarding Slovakia in the crisis report. At EPSCO in February 2012, a document on Slovakia’s deepening social gap was also presented. During the crisis, the wealthy in Slovakia became even wealthier and the poor became poorer. Both Joseph Stiglitz and EPSCO stated this was an exception running counter to the trend in Europe.

The average hourly wage in Slovakia is 8 € and in the EU it is 23 €. That is about 30%, yet in economic strength Slovakia reaches 73% of EU average GDP per person. Someone must therefore be earning unjustifiably excessive and socially unfair profit. (Eurostat 63/2012)

Slovakia is characterized by high abandonment and low solidarity between older people and other generations (Social Participation and Social Isolation, 2010). A cause is also the high unemployment of young people and the ensuing increase in age discrimination (ageism) at work and pushing older people out of the labour market, even not just those over 50. The subjective opinion of Slovaks about when old age begins is much lower than is usual in Europe. (Hetteš, 2012(c))

Solidarity, cohesion, inclusive growth should also apply to regional development. Slovakia is an example of non-cohesion in regions. The Bratislava self-governing region reached 178% of the EU average in GDP per capita (Eurostat, 38/2012). This is fifth place in the EU. It is higher than Paris, Prague and Vienna. But we have self-governing regions with levels below 50%.

Adequate old-age security

Distorting facts, hiding demographic laws and misusing results of economic growth are affecting constant changes in the old-age pension system. The European Union did not pay sufficient attention to the preparation of new member states; insufficient common policy caused countries to enter the EU with incompatible pension systems built against basic principles, primarily solidarity. At a time when the OECD indicated that some parametric changes would suffice and the pension system would be stabilized for a long time, the privatization of old age was proceeded with. Comparing what did not happen in Czechia and what happened in Slovakia is enough. Constant changes unsettle people’s life securities. The current state of creating a weak basic system of the so-called first pillar creates an expectation of lower incomes in old age compared with today’s generation of pensioners. The savings experiment, which is not justifyable in solidarity terms even with 4% contributions, does not provide, by its gambling nature, a guarantee. The insurance principle of this so-called second pillar is not consistent with International Labour Organization approaches. For example, in Argentina, also under public pressure from suicides outside parliament, this system was abolished. Similar things happened in countries that were once model member states for us. We are the country with the weakest adjustment of the private system. The obligation to enter this risky venture means that young people, due to short-sightedness and relative complications of exit, will not leave it. Had entry been voluntary, they would have behaved differently. (Hetteš, 2011(b))

The old-age pension system operates non-inclusively. It creates people (older persons) as a distinct group with paternalistically defined needs. Moreover, retirees will not have a share in the result of their previous work because of changed rules of pension indexation. The expected wage increase will clearly harm them.

Slovakia will soon have a major problem with older people lacking adequate dignified income in old age. The system does not encourage financial preparation for old age and rather discourages such action. (Hetteš, 2012(b))

Conclusion

Social work faces a lot of work related to insecurity in social security. There will be a shortage of social workers. Slovakia will not have resources to replenish them from abroad. There remains insufficient attention by the decision-making component of society, especially in the allocation of budget funds in the state budget. Volunteering, self-help and other forms in social services cannot fully meet needs even after their possible development. It is necessary to adjust the education system in the field of social work accordingly.

Author: Miloslav Hetteš, doc. RNDr. CSc. List of Bibliographic References

Monograph [1] HETTEŠ, Miloslav. 2011(a). Starnutie spoločnosti. Bratislava : VŠZSP sv. Alžbety, 2011. 192 s. ISBN 978-80-8132-031-6 Part of a monograph [2] HETTEŠ, M., 2011 (b): The Slovak Republic. National Report, pp. 267 – 304, In: Pension Reform in Central and Eastern Europe, ILO, Budapest, 2011, 366 p., ISBN 978-92-2-125639-7 Journal article [3] HETTEŠ, M., 2012 (a): Sociálna práca a sociálny rozvoj. In: Prohuman (professional online journal - social work, psychology, pedagogy, social policy, health care, nursing), 25 July 2012, Bratislava, ISSN 1338-1415, http://www.prohuman.sk/socialna-praca/svetova-konferencia-o-socialnej-praci-a-socialnom-rozvoji [4] STUCKLER, D., BASU, S., McKEE, M., 2010: Budget crises, health, and social welfare programs. British Medical Journal, 10 July 2010; pp. 77 – 79, Volume 340:3311)

Web pages [5] Better Life Index, OECD, Paris,2011, http://www.oecdbetterlifeindex.org/ [6] GDP per capita in the Member States ranged from 45% to 274% of the EU27 average in 2011, Eurostat News Release, 97/2012 - 20 June 2012 [7] Health in the EU27 in 2010 At the age of 65, both women and men are expected to live a further 9 years in a healthy condition. Health in the EU27 in 2010, Eurostat News Release, 60/2012 - 19 April 2012, 2 s.4 [8] HETTEŠ, M., 2012 (b): Pension Crisis in Slovakia; http://www.rewi.uni-jena.de/rewimedia/Downloads/LS_Eichenhofer/EISSWorkshop/2012_Hettes_Erkner.pdf [9] HETTEŠ, M., 2012 (c): Our ICSW Member in Slovakia; pp. 6-7, In: ICSW Europe Newsletter July & August 2012, http://www.icsw.org/whatsnew/regpub.htm [10] Labour costs in the EU27 in 2011 Hourly labour costs ranged between €3.5 and €39.3 in the EU27 Member States,Eurostat News Release, 63/2012 - 24 April 2012, 3 p. [11] Latest figures on the demographic challenges in the EU, Demography Report 2010, Eurostat News Release, 50/2011 - 1 April 2011, 5 p. [12] Income per capita varied by 1 to 4 across EU countries, Eurostat News Release, August 2012, 35/2012 [13] Regional GDP per capita in 2009: seven capital regions in the ten first places, Eurostat News Release 38/2012, 13 March 2012, 7 p. [14] Social Participation and Social Isolation, Eurostat, 2010, 50 p., ISSN 1977-0375