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Short description of the region

Eight of the ten new European Union (EU) member states that joined the European Union on 1 May 2004 are from the Central and Eastern European (CEE) states: the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia. Basic economic indicators show some significant differences between the countries. The Gross Domestic Product (GDP) per capita ranges from USD 7.809 (Latvia) to USD 17.762 (Slovenia). This is still is below the GDP level of the ‘old’ EU member states. Before rising to the current level, GDP in all the countries in the region dropped significantly during the 1990s. In the early 1990s the inflation rates increased dramatically and came under control only in 2000. All CEE states are members of the World Trade Organization (WTO).

Macroeconomic overview

The CEE countries share a common economic history of being centrally controlled until the end of the 1980s - including wages, prices of goods and services, and real estate, followed by the subsidisation of a great range of goods and services (and hence those goods were relatively affordable). At the beginning of the 1990s, the process of political, social and economic transition led to the privatisation of state assets and the integration into the global capitalist market. The countries applied a variety of privatisation strategies from a gradualist approach (Slovenia, Hungary and Czech Republic) to shock therapy (Poland). Price and wage liberalisation followed. The transition to the market economy has eliminated the shortage of goods and ‘alternative’ economies, led to the disappearance of about 10-30% of jobs, and resulted in the erosion of services such as childcare and social protection related to motherhood. These countries are now characterised by mass unemployment, poverty, and economic inequality between the ‘haves’ and ‘have nots’ in a region accustomed to relative equality.

Foreign capital flowed into the region following privatisation. Foreign Direct Investment (FDI) has played a significant role in the economic development of the countries [1]. While FDI rates vary between each country in the region, in early 2000 the Czech Republic, Hungary and Estonia had the highest rates in the whole of the EU.

One of the outcomes of the socio-economic changes was the creation of a capitalist class. Unfortunately few women managed to join this class and of those that did most of them gained access to assets through family connections (as wives or daughters of the ‘new’ capitalists) rather then independently. For example in Hungary in 2004 only 3 women were listed among the top 100 richest Hungarians. In Poland, women currently constitute more then 1/3 of company owners, but these companies are predominantly very small firms which do not generate significant economic and political power. Nevertheless this illustrates that women were able to take advantage of the changing economic situation, even if, economically, they still lag behind men.

Common characteristics regarding gender equality issues

The EU enlargement process has had an impact on gender equality policy and implementation, but it has been difficult to assess the depth of the effects until now. Gender (in)equality is a political issue and political choice. Accession to the EU has not led to significant changes in gender equality in the CEE countries because of the choices made by the governments. One of the reasons for this is that in order to achieve gender equality, gender justice has to be incorporated into all policies (both at the EU and national levels). This document briefly describes how this has not been undertaken or achieved with special reference to labour market and social policy. Two case studies from Poland and Slovenia illustrate these points.

It is important to understand that the new EU CEE member states share a joint history of Soviet domination (except Slovenia, which was a part of the former Yugoslavia). This has affected their economic, social and political conditions - and the position of women in all these countries. The EU needs to recognise the shared history and characteristics of the CEE states as it addresses issues of gender. At the same time, the differences between the eight CEE states should not be underestimated.

A policy of gender equality in official policy during the pre-transition period did not result in the practice or implementation of gender-friendly policies. While women had guaranteed access to employment, education and political participation in most of the CEE states, the provision of services such as childcare and social security did not fully compensate for the traditional division of labour. The already disadvantaged position of women was exacerbated by the transition process. The deterioration was caused not only by the macroeconomic changes but also by strengthening of patriarchal values into policy by various political formations in the eight countries. In Poland this is particularly worrying due to the political power of the Catholic Church supporting conservative views and policies. For example, the Church plays a leading role in the reproductive rights arena, resulting in laws and policies preventing women from taking control of their fertility and sexuality.

Many citizens of the CEE states see EU membership as an opportunity to counteract the negative impact of the transition from being a centrally planned economy to becoming a market controlled economy. This is particularly the case in relation to gender issues, as the EU accession process required the introduction of new laws and policies focusing on and addressing gender issues. However, reaching certain levels of economic development was also one of the requirements of becoming an EU member and this was given priority over social issues. The post-1989 economic transition fused with macroeconomic adjustments associated with the EU accession process and therefore, some of the recent negative changes to the economic situation of women can be linked to the EU accession process itself.

Case Study 1:
Poland - EU policy and the situation of Polish women in the labour market

In Poland, as in other EU CEE member states, the reforms associated with the introduction of a free market economy and to meet EU economic criteria had negative impacts on the socio-economic position of many women and led to a monumental increase of the gap between the wealthy and poor.

The disadvantaged economic situation of women is largely related to their position in the labour market. It needs to be understood that the position of women in the labour market is not exclusively linked to the economic situation of the country or employment policies alone, but to all policies including those focusing on social services, security and reproductive rights. Poland joined the EU with the highest unemployment rate of all the new member states. Despite historically having almost the same level of unemployment of women and men, the situation of women in the labour market is now much worse than that of men. The participation rate of women has dropped from 54% in 1992 to 48% in 2002. Women tend to be discriminated against due to their assumed reproductive responsibilities; they have problems reconciling work and family responsibilities caused by a lack of affordable care services; they tend to remain unemployed for longer periods then men; and when they are employed they are rarely economically independent due to the gender wage gap.

Country	Unemployment rate 1995 in %		Unemployment rate 2003 in %
	Women	Men	Women	Men
Czech Republic	4.8	3.4	10.1	8.4
Estonia	8.9	10.2	9.9	10.2
Hungary	8.7	13.3	5.5	6.
Latvia	18.0	19.7	10.6	10.1
Lithuania			13.1	12.3
Poland	14.4	12.1	20.0	18.6
Slovakia	13.7	12.6	17.8	17.2
Slovenia			7.1	6.1
EU 15 average	11.7	8.9	9.0	7.4

Table 1: Source Eurostat, World Bank

EU membership required a number of legal and policy changes that has provided new opportunities for Polish women. For instance, the availability of funds to target gender issues in a country where social expenditure is largely restricted to very limited financial support to the most disadvantaged groups, is an innovation. No immediate improvement, however, should be expected as the administration struggles to implement projects and is resistant to innovative methods of addressing these issues.

Further, the lack of specific recommendations/requirements in EU policy focusing on social policy allows governments to cut budget expenditure on social provisions - this predominantly impacts the poorest women. An example of this was the elimination of the child maintenance fund in 2004 and its replacement with a smaller, flat rate payment available to unmarried custodian parents which led to a skyrocketing of divorce among the poorest groups of society.

The European Employment Strategy is now reflected in documents produced by the government and programmes focusing on (re)integration of women in the labour market are being implemented. These programmes are important not only for their impact on women but also because they challenge the belief that equality already exists and that additional targeted policies are not necessary. One example is Program Equal, which explicitly focuses on equal opportunities of women and reconciliation between family and professional life. It is a pilot programme that will soon be implemented simultaneously in Poland and other EU countries.

Generally, there is not enough emphasis on effective social policy. The government focuses on economic policy but not in such a way that guarantees long term growth which will benefit society as a whole. It is also important to note that social issues, including gender issues, are not addressed unless specifically required by the EU. An example of this is Poland’s response to the Lisbon Strategy. So far the Lisbon Strategy and its recommendations for childcare have been largely ignored, with debate around it focusing almost exclusively on economic growth. Still, the Lisbon Strategy is an important, if inadequate tool for NGOs focusing on gender justice.

Case Study 2:
Slovenia - Women in the labour markets and the European Employment Strategy

In Slovenia labour market shifts and challenges have resulted in a declining labour force regardless of sex. An analysis of the unemployment rate by sex over the whole transition period shows that the previously held advantage of women did not last long. In 2000, women comprised 50.7% of the unemployed; in 2003 their share had risen to 52.8%. Further trends will greatly depend on the future restructuring of employment activities. The gender pay gap in Slovenia (10.2 percentage points in 2002, SORS) is also significantly smaller than the EU 25 average. At the end of the 1990s various programmes of active labour policy were in place in Slovenia, but it was not until the late 1990s that actions targeted women.

Before questions of gender equality came increasingly to the fore of attention of international organisations and associations, the prevailing and generally accepted perception of gender equality in Slovenia was that all had already been achieved in the former political system and that equality between women and men was fully established. For that reason, over the last 10 years, the most considerable improvements in the area of gender equality were achieved in the legislative area. The main legal mechanisms of promoting equal opportunities are now provided in three acts: the Parental Care and Family Cash Benefits Act, the Equal Opportunities Act and the Labour Act. These have not been (fully) implemented.

The Development of the Labour Market Strategy through the year 2006 states that the achievement of gender equality in the labour market is one of its long-term objectives. The National Action Plan for Employment is a fundamental programme document for the implementation of policies in the labour market. Yet, this does not indicate a real shift in the implementation and enforcement of gender equality as there is no process of laying clear grounds and setting high standards of achieving gender equality in the labour market. The Ministry of Labour, Family and Social Affairs has, however, in accordance with the European Employment Strategy, developed a system of labour market indicators which can now be monitored with regard to gender. This provides a means to monitor disparities between women and men in the labour market and plan future measures for guaranteeing equal opportunities for both genders. Moreover, the implementation of the EQUAL Community Initiative programme is intended to achieve objectives in this area. In 2004-2006 only theme 8 (Reducing the Gender Gap and Supporting Equality at Work) is planned to be carried out.

One of the main challenges to promoting gender equality in the labour market is the elimination of both horizontal and vertical segregation as well as correlated pay gaps. Slovenia has not yet put gender mainstreaming as a tool or strategy into practice nor does it fully understand the principle of gender mainstreaming. It rather argues for gender neutrality, which is too often understood as not taking gender dimension into consideration at all.

Recommendations for policy change

To the EU institutions:

EU strategies addressing the position of women in the labour market should be revised to respond more effectively to the situation in all eight new EU member states from the CEE region. This includes the European Employment Strategy, the Lisbon Strategy and the Social Policy Agenda.
Social concerns and social policies should be given greater emphasis within the EU policy context. The EU should ensure that social policy is given priority and is effectively monitored.
Policies targeting the poorest of women, and responding to the realities and needs of women in the new member states should be developed at the EU level.
The principle of gender mainstreaming should serve as a standard tool in shaping and developing policies to include the gender perspective into the process of all policy development. For this to work gender mainstreaming needs to be understood and supported by the CEE countries.

To the national governments:

Increasing women’s participation in the labour market is a necessary condition for achieving gender equality, but it is not a sufficient one. Gender equality in the labour market also requires major improvements in the nature of jobs, their quality and the conditions of work.
National governments should not only focus on economic policy but also on social policy. The two policies have to be closely linked and should not contradict each other. Gender equality objectives should be integrated in all policies.

This infosheet was produced with the financial assistance of the European Commission, DG Education and Culture. The views expressed herein are those of the author(s) and can therefore in no way be taken to reflect the official opinion of the EC or of WIDE.

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[1] Except in Slovenia.