Published online by Cambridge University Press: 28 November 2008
The reforms initiated in Central and Eastern European countries imply dramatic changes at social, economic and political level. The transition from a centrally planned to a market–based economic system requires profound reformation of all economic and social institutions, amongst them, in prominent place, the way social benefits are provided and financed. Social programs in these countries are challenged from two sides: Firstly, they have to provide a social safety net for the most vulnerable in society during economic transition in order to support the reform program in social and political terms; secondly, social programs have to be restructured in order to be financially sound, socially equitable and economically efficient in a more (or fully) market-oriented environment.