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On the Causes and Direction of the Development of the Lithuanian Social Policy Model and Its Guarantees

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... According to the author, the welfare models can be attributed with three main models of public administration: traditional -hierarchic, New Public Management, and New Governance 1 . The very significant element of New Governance is the empowerment, which stresses the importance of active social policy (Guogis, Bitinas 2009). According to Guogis, New Public Management emphasized failure of passive social policy, when huge social benefits did not solve any problems but stigmatized individual groups of inhabitants. ...
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This paper reviews the articles of Lithuanian authors on social policy topic and assesses if the asset-based policy topic was ever explored. It briefly analyses the efficiency of current social security policy in Lithuania and social-economical state of inhabitants. It states that in order to reduce poverty and inequality, current social policy should be reformed, and the current income support (or income security) policy should be replaced by the asset-based policy which stresses the development of skills, knowledge and capabilities, promotes savings, investments and building of assets and gives everyone a possibility to become a capital owner. The paper presents results of a representative survey which was aimed to explore Lithuanian inhabitants’ opinion towards the new form of social policy: asset-based policy. It uncovers that vast majority of Lithuania's inhabitants would agree to the implementation of the asset-based policy, based on children's savings accounts.
... But this scheme cannot be considered enough or fully adequate, especially in Eastern European situation as other components of efficiency are missed. Thus, if we talk more about social responsibility, we have to take in mind three additional E-s: the fourth E of equity –or social justice– (Guogis and Bitinas 2009); the fifth E of equality; and the sixth E of ethics. What is more, we could consider the possibility of adding a seventh E of educology. ...
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Nowadays, a neo-liberal –even libertarian– way of thinking has penetrated everywhere, not only in the organization and management of private businesses, but in public and non-governmental sectors as well. In such a context the principles orienting New Public Management (NPM) should be replaced by those proper of New Governance models in order to keep the essence values of “Social Europe”. In the implementation of such principles the notion of sustainable development should not be considered only from an ecological view, but also from the view of social values as social cohesion, social quality, poverty reduction, employment encouragement, etc., thus providing basis for the achievement of progress goals for the benefit of each and every one. This is the essence of sustainable development’s theory and practice. Maybe nowadays there are not a number of countries in this situation in the world, but this is not an argument to justify looks in the other direction when aiming New Governance in your own country.
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In the article, problems of the typology of the Welfare States are presented in the context of the European and Lithuanian situation. The more uniform European social model is questionable as, in the opinion of the author, it is possible to talk about a more unified European social model only on the basis of ideological values, because in the European reality there exist several, rather different, welfare models. The open coordination method in social administration is regarded by the author as the only one really unifying instrument in Europe, according to which it is possible to study the best practice of the leading countries. However, it is easier to study narrow-profile spheres, for instance, social work techniques or social services organization in municipalities, but not the structural adjustments. The institutional-redistributive model of the Nordic countries is considered by the author as the most progressive social model, although its critics maintain that the Nordic countries sacrifice economic efficiency for social efficiency. Much attention has been recently drawn by the problems of South-European countries, as some of them experience tremendous solvency and even bankruptcy threats. The author refers to his earlier works where he argues that the Lithuanian social policy model is slowly drifting to the liberal-marginal direction, but the latest State Social Insurance reform, generous maternity benefits and the increased demand for stationary social services (on the background of reduced non-stationary services) indicate that the movement towards a liberal model will occur not so rapidly as predicted earlier by the author. The system will maintain mixed features, and in some places they will be overleaping. The absence of a clear European social model makes the situation of the Eastern European and Lithuanian social system architects and reformers rather complicated. It is necessary to be guided by at least the most general normative model according to which it is possible to distinguish progressive and non-progressive social policies. The author suggests a normative model consisting of ten parts: a) community welfare, b) social inclusion, c) social solidarity, d) anomie prevention, e) social equality and diminishing poverty, f) decommodification, g) progressive taxation, h) "active", but not "passive", social policy, i) social empowerment, k) the democratic state as an institution. Such are the author's conclusions concerning the search for a more unified progressive European Welfare model.
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This paper is designed to shed some light on possible impacts of globalization and Europeanization on social security reforms in one of the new EU member state - Lithuania. The paper is based on 67 expert interviews conducted with the political elite, academics, journalists, senior civil servants, interest group representatives and the economic elite. The paper highlights the higher influence of globalization through the activities of such supranational agencies as the World Bank and the International Monetary Fund compared to the impact of cognitive Europeanization on social security reforms.
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