Social Watch Report 2009

100
czech republic
Democracy at a dead end
0
6
Last year President Vaclav Klaus proclaimed
20
34
that the country was living in its prime, with a “faith in
93
54
today”. That euphoria is now evaporating as the economy begins showing 100 signs of weakness. Reforms 100
86
98
in public finances, such as lower taxation for the wealthiest and increasing the value added tax (VAT)
IEG of Bahrain on basic = 46 articles, have created new BCI burdens of Bangladesh for poor. = 56 Conditions of some marginalized IEG of Bangladesh groups = 52,7 such as
the Roma have become so difficult that they are emigrating. On a positive note, the country has made
some progress – though not enough— in bridging the gender gap.
99
100 100 100
100 100
100
0
55
100
0
19
100
7
Gender Studies, o.p.s.
Linda Sokačová
ADEPTTs
100
Saša Uhlová
Trast pro Ekonomiku a společnost
Petr Gočev
Ekumenická akademie
Tomáš Tožička
29
Basic Capabilities Index (BCI)
100 98
BCI = 99 GEI = 68
Children reaching
5th grade
Gender Equity Index (GEI)
100
43
Empowerment
0
0
0
President Vaclav Klaus began the year 2008 by declaring
this the best period in Czech history, noting
100
100
100
100 100 68
100
100 100
that the enormous increase in loans and mortgages 98
Births attended by
was a symptom of “faith in today”. He also boasted skilled health personnel
Survival up to 5
BCI of
of the country’s robust national currency, asserting
IEG of Cyprus = 65,1
República Checa = 99,2
that it was evidence of a strengthening economy. In 2005. By the end of 2008, the official unemployment
fact, the Czech Crone (CZK) was being artificially rate hit 4.4%. However, the official figure omitted
bolstered by speculation. The right-wing Government,
178,000 people who were considered to be not ac-
in tune with the President, remained in denial, tively seeking employment; adding this group would
refusing to acknowledge that the global economic have pushed the unemployment rate 50% higher. 4
crisis would affect the Czech 100 Republic. This opti-
Foreign workers, particularly 100 those from Asia, are
92
,1
100
64
100
97
Economic activity
Education
IEG of Czech Rep. = 68,1
supporting this usury, for instance by introducing
mechanisms to facilitate debt collection. A 2008 insolvency
law includes a bankruptcy option for private
individuals, however using it is very difficult.
Health system reform
mism began to evaporate only when statistics and
the daily reality experienced by the most of the population
made it impossible to deny that production
was plummeting at an unprecedented rate, the fifth
typically the first to be dismissed 81 and are suffering
the most. Their legislative protection is inadequate;
most are dependent on job agencies, which makes
their work status precarious, and the majority borrowed
Since the Minister of Health declared, “I want capitalism
to be in the health system”, he has done his best
to achieve this goal. 7 Several regional hospitals have
been privatized; they have reduced so-called non-
money to immigrate. In addition to being a lucrative services, primarily treatment of difficult or
worst performance in the EU. 1
0 8
0
0
personal economic disaster, returning home would long-term cases. Responsibility NO VA0
for these cases is
The impact of government reforms and the jeopardize the livelihoods of their families.
being shifted to large state hospitals and teaching
financial crisis
37
89
Since the impact of the crisis began 95 to be felt, hospitals. In 2008, government health care expenditures
99
100 100 78 100
In 2007, the Government initiated a reform of public
finances, lowering taxes on earners in the highest
100 100
every second small or medium size company has already
dismissed employees and cut working hours or
fell to less than 7% of GDP, one of the lowest
100 100
proportions in the EU, and about 20,000 employees
100
income bracket and increasing the value added tax is preparing to do so in the immediate future. 5 Stock (8%) left the health care system. 8 The introduction
IEG of India = 40,7 BCI of Irak = 88,4
IEG of Iraq = 0
on basic articles, which increased the tax burden on exchange indices are down more than 50% from their of fees for services and attempts to decrease social
multi-member and low-income households. While
the Ministry of Finance predicted 3.8% inflation for
2008, the consumer price index jumped 6.3% 2 and
2007 peaks. Nevertheless, the Government has not
abandoned its plans to privatize the pension system. 6
By late 2008, it began to consider anti-crisis measures,
insurance taxes, especially for the wealthiest taxpayers,
are key components of the Government’s regressive
taxation strategy.
largely in response to growing global concern
real incomes declined by -2.7% 3 year-on-year by the
third quarter of 2008. Even before the impact of the as well as pressure from domestic industry. The Roma and social exclusion
100
100
100
world economic crisis became evident in the Czech The huge increase in household debt has put Antisocial reforms and the onset of the economic
Republic, predictions that reforms would hurt most the financial industry in a precarious position. Until crisis have been most harmful to those already excluded,
such as old age pensioners, single moth-
64
of the population became reality.
recently, personal borrowing was increasing by onethird
The global economic crisis, only now beginning
to hit the country, is lowering the 21 standard of living
even further. In the third quarter 0 of 2008, the number
every year. The bulk of this was mortgage debt,
but nearly 20% consisted of loans from non-banking
institutions, mainly for 0instalment purchases. In
ers and other vulnerable groups. 34 Not all Roma are
socially excluded, however most of the 250,000 in
the Czech Republic have been 0 directly affected by the
of unemployed workers was higher than in the previous
quarter, the first time this had happened since nual interest rate 48greater than 200%. The 86 state is data were compiled, 80,000 Roma lived in some 300
some cases, these loans come with an effective an-
declining economy. In 2006, when the most recent
29
100 100 100
100 100
100 68
84
socially excluded localities 9 100
100
. This was mainly due to
96
1 See .
2 See .
3 See .
6 See .
9 See .
92
100
100
7
B
B
National reports 82 Social Watch
100 100 96
100