Abstract
This chapter is designed to shed some light on the challenges and changes in the welfare system of Lithuania during and after the recent financial and economic crisis, which was felt most in Lithuania during the years of 2009 and 2010. The major questions are: Which reforms were implemented during the global crisis and what consequences have they generated for the future development of the welfare system in Lithuania? What are the major challenges for the Lithuanian welfare system in the twenty-first century?
The findings of this paper show that the crisis has had a remarkable impact on the well-being of the Lithuanian population (poverty and unemployment have increased) and on the social policy design: important cutbacks were implemented in pension insurance, short-term and family benefits and unemployment insurance.
The Lithuanian welfare state is facing many challenges of the twenty-first century: increasing outward migration, ageing of the population, youth unemployment and long-term unemployment. As a consequence of all these challenges the fiscal sustainability of the social protection system is threatened. The fiscal and economic crisis has intensified the fiscal problems of the social protection and social security was reformed in reducing the state’s responsibility but increasing the individual/family’s responsibility in meeting demands of the increasing social risks. This paper suggests that the liberal approach is taking strong root in the Lithuanian welfare state system.
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Notes
- 1.
This was also supported by a study of Guogis et al. (2000).
- 2.
Persons whose working capacity was below 20 % were not previously included in the list of additionally supported unemployed people and were considered to be unable to work.
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Aidukaite, J., Moskvina, J., Skuciene, D. (2016). Lithuanian Welfare System in Times of Recent Crisis. In: Schubert, K., de Villota, P., Kuhlmann, J. (eds) Challenges to European Welfare Systems. Springer, Cham. https://doi.org/10.1007/978-3-319-07680-5_19
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