Poverty, Inequality, and Social Policy in Transition Economies 1530.
Poverty is on the rise, and income inequality widens.
Better targeting of social assistance and pension reform are the necessary policy reforms. In examining what happens to poverty and income inequality during the early period of transition to a market economy, Milanovic covers the period up to 1993. His analysis includes almost all transition economies that were not affected by wars, blockades, or embargoes. The two key issues of social policy in transition economies are pension reform and better targeting of social assistance. Pensions represent 70 to 80 percent of cash social expenditures.