Living Standards Measurements Study - Serbia 2002 - 2007

6.1. SOCIAL WELFARE IN SERBIA
6.1.1. Introduction
The process of transition towards a market
economy in Serbia was in full swing from 2001
onwards. Serbia entered this process in deep poverty
which penetrated all parts of society and economy
during the 1990s. The social welfare system was
degraded and had lost its basic functions.
Devastated socially-owned enterprises had been
operating with small capacity but employing a large
amount of surplus labour whose minimum wages
were financed out of a special state fund (outside
the social welfare system). Economic efficiency was
negative. Many people were living somewhere
around the poverty line or below and they needed
support to satisfy their basic living conditions.
Serbia was in a very difficult situation at the
beginning of 2000 as the weak economy could not
provide enough resources for social welfare in order
to target allowances for those incapable of work and
the poor. At this time many funds for social welfare
were covered from international donations and aid.
Most of the surplus labour force and the poor
capable of work were earning additional income
from the informal economy.
The reforms that were, on the whole,
implemented very intensively and relatively
successfully into the economy and financial sector
in the last seven years with significant aid of
international financial, humanitarian and other
organizations and governments of certain countries,
created possibilities for faster growth of the private
sector as the basis of economic growth and
economic efficiency in Serbia. Moreover, the
introduction of the system of strategic planning on
the national and sub national level resulted in the
development of partnerships, first of all, between
the governmental and non-governmental sector,
with gradual inclusion of the private sector
providing more efficient solutions to economic and
social problems in Serbian society. In this way a
realistic basis was established for the creation of an
effective system of social welfare aiming to provide
support to the incapacitated and the poor. The extent
of its effectiveness will depend on the speed of the
decentralization of management and financing of
peoples needs as well as the transparency of the
amount and flow of the financial means intended to
satisfy the needs of the beneficiaries of the social
welfare system.
6.1.2. Social welfare policy and the
main benefits
Social welfare programs in Serbia are
regulated through two key laws: (1) The Law on
Social Welfare and Social Welfare Provision of
Citizens; and (2) The Law on Financial Assistance
to Families with Children. Social welfare and social
security rights regulated through the first are as
follows:
• Family allowance (MOP in Serbian)
• Attendance and assistance allowance
• Assistance for job training
• Home care, day care, temporary placement in a
shelter, placement in an institution or other
family
• Equipment for beneficiaries placed in a social
welfare institution or other family
• One-time municipal cash subsidy.
MOP, attendance and assistance allowance,
assistance for job training, placement in an
institution or other family, and social work services
for carrying out public entitlements regulated
through the law are provided at the Republic level.
While home care, day care, temporary placement in
a shelter, equipment for beneficiaries placed in a
social welfare institution or other family, one time
municipal cash subsidy other social services are
organised at municipality level. Municipalities can
also allocate other resources for social welfare if it
has them available.
• The Law on Financial Assistance to Families
with Children provides the following benefits:
• Parents (maternity) allowance
• Child allowance
• Pre-school attendance cost for children without
parental care
• Pre-school attendance cost for children with
developmental difficulties
• Reimbursement of pre-school attendance cost for
children from financially vulnerable families.
The first four benefits are provided at the
Republic level while the last one is managed at
70 Living Standards Measurements Study - Serbia 2002 - 2007