respect to retirement, the level of benefits were very low. The benefits were regulated though contributions. In general the benefits were the 50% to 100% of the average of the best 5 years of the last 10 years of work. Health
services were free of charge, but at the same time they could be considered to be inefficient and underdeveloped. Mortality and morbidity rates were high. In general lack of funds for hospitals was the norm (Cerami 2005: 40-1). Cerami (2005) argues that the communist welfare state was not only characterized by lacks, but also by some excess in social protection. An example is the three years of childcare protection. The excessive welfare protection led to a high welfare dependency (Cerami 2005: 41). After the collapse of communism in 1989, people still were dependent of welfare programs, especially when the market economy exposed substantial hidden employment. All in all, communist
welfare states provided, though not always high quality, excessive welfare programs. People in these countries thus were very welfare dependent. This fact was a heavy burden for policy makers after the collapse of the Berlin Wall. As
Hemerijck and Ferrera (2009) put it: “
people in the CEE welfare states were expecting the government to secure employment and provide social transfers and services” (Hemerijck & Ferrera
2009: 32).
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