REMEMBRANCE IN TIME - Index of

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3.2. Losers of the economic transition
Remembrance in Time
Among the losers of the economic transition in the Baltic States belong, without a
doubt, the older people. Interesting, especially in the case of Estonia, Latvia and
Lithuania, ethnic belonging does not matter.[7] The older people are not in the position to
adapt to the new institutionalised order with its permanent changes.[8] Also the pension
the elderly are paid already during the Soviet-Union is too small to lead a decent life. In
the Baltic States, like in other Central and East European states too, many pensioners are
begging. For western tourists it is obvious in the capitals Tallinn, Riga and Vilnius, but
also in Budapest. In rural areas, older people sometimes have the possibility of
subsistence farming. The share of poor pensioners in the Baltic States doubles the
equivalent share in Western Europe.[9] People who in 1991 were in their mid-fifties also
faced a heavy burden. This group has problems to find new jobs in the new economy and
for this reason face a lower pension, as the newly established social security systems do
not adapt quickly to the new situation during the transition period. The results are until
today devastating. They often cannot afford medicine and other extraordinary expenses.
But not only people who were in their mid-fifties at the beginning of the economic
transition, but also people under 50 are threatens by poverty. These people do not have
enough time to save money for their pension as they do not spend enough time in paid
jobs.
In general, poverty is an expression of being a ‚loser’ of the economic transition. In the
beginning, the loss of purchasing power hit nearly everyone in these societies [11].
Therefore one cannot use this generalising term ‘loser’.
According to United Nations data, poverty is widespread in the Baltic States. About 35
% of the population has a purchasing power of less than 4 US-$. Relative poverty is a
little bit less widespread. But children in Estonia, Latvia and Lithuania belong to the
category of ‘relative poor’. Children poverty reflects between 40 and 50 % of all children
in these countries in the beginning of the transition period. The economic transition
shows first signs of growth in the middle of the nineties and the overall poverty
decreases. But, the income gap according to the GINI-Index is tremendous. To offer a
short summary. In the early nineties about 50 % of the population in these three countries
belong to the losers of the transition due to low income. Nowadays the data are better but
still, after a few years of economic boom-times, approximately 30 % of the population
lives below the poverty line according to the data of UNICEF (referring to purchasing
power parity). Actually we can find specific risks that can lead to poverty. Especially
children are still a risk to become poor as a family. At the end of the nineties of the last
century, about 50 % of families with three children or more are poor. If we refer to the
minimum of four US-$ instead of two US-$, the results look better but still, for example
in Latvia, 7 % of these families are poor. We can estimate that about 10 % of families
with three and more children are poor [12].
Among the group of losers of the economic transition belong also professions that join a
good reputation in soviet times and lost their attractiveness during the transition –
professions that are worse paid also nowadays and that suffer a lack of qualified staff (e.g.
nursery). But also jobs in the educational sector belong to the less paid and less attractive
positions (e.g. teacher) or experience a decrease through the reduction in the state budget.
The mentioned sectors in general experience a loss of quality [13] In the actual economic
and financial crisis, these groups again suffer a decrease of their income [14].