Social-policy dilemmas in Hungary within the context of EU membership: Some problems of poverty

Fóti, Klára (2007) Social-policy dilemmas in Hungary within the context of EU membership: Some problems of poverty. Hungarian Statistical Review, 84 (SN10). pp. 75-92. ISSN 0039-0690

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Abstract

Recent research on poverty and social exclusion in Hungary concluded that despite the economic growth of the last couple of years (more than 3 percent annually), large disparities in the living conditions of society have not been eliminated and the most vulnerable groups seem not to have been reached by the benefits of growth. Although most recent data provide some evidence that the process of impoverishment may have eased to some extent, caution is still required before drawing straightforward conclusions for a longer run, since the chronic poverty is still stagnant. Data from various sources (TÁRKI Social Research Inc. and the Hungarian Central Statistical Office) show that the proportion of the poor has remained consistently in the range of 10-13 percent since 1997 (calculating with the most widely used poverty thresholds, i.e. with 50 and 60 percent of median income). It is evident that labour-market problems constitute an important source of poverty and social exclusion. Although unemployment in Hungary does not stand at a particularly high level (around 7.5 percent), the share of those who are in working age but inactive, is still very high (more than 40 percent). It is clear that future economic prospects will heavily influence not only the labour market, but also the scope of manoeuvre for social policy. Although currently it seems that the EU policies have an impact on shaping this policy, it remains to be seen to what an extent its influence could be translated into concrete actions, and whether they could be efficient enough to change the current situation to a considerable extent.

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