Tim za socijalno uključivanje i smanjenje siromaštva

Written by: Ivan Sekulović, Manager, Social Inclusion and Poverty Reduction Unit of the Government of the Republic of Serbia

As far back as 2011 the renowned Harvard professor Michael Porter stated that “capitalism is under siege”, reflecting the urgency of aligning the economic interests of capital with the broader interests of the community, due to the increasingly dramatic effects of the global economic crisis.

A series of populist developments on the global scene, caused by a crisis of capitalism due to the financial crash of Wall Street, is currently leading to an ever more visible reversal regarding the future development of the European continent. The list of options is becoming ever smaller, and thus ever more focused. The debate on the future rights, benefits and roles of citizens, the main actors in the above crises, is particularly interesting in this regard. The latest contribution to this issue was provided by the long expected document entitled “Reflection Paper on the Social Dimension of Europe”, published on 26 April in Brussels. Make note: this paper does not speak of the European Union, but Europe.

There are three scenarios for further development envisaged by the European Commission: (1) limiting the social dimension to freedom of movement, (2) those who wish to work more on social issues doing so, and (3) the EU27 jointly strengthening the social dimension of Europe.

The European Commission duly provides reasons for and against each of the scenarios. However, immediately noticeable is the convincing nature of reasons for strengthening the social dimension of Europe: greater resiliency of all European economies to shocks, a visible contribution to the empowerment of citizens and provisions of the greatest amount of power and highest reputation for Europe in the international scene. Such a convincingly formulated option is no surprise, it is a logical development following the adoption of the Roma Declaration in March of this year, whereby the European leaders have already underlined their commitment to a stronger social Europe.

On the practical side, for a long time the EC has been mapping the situation in the field, along with good practices of member states, through its Joint Employment Report, with the latest issue dedicated to inequality and poverty. The link is clear: a high level of inequality can reduce the performance of the economy and potential for sustainable growth, it reflects a high degree of poverty and social exclusion and leads to the underutilization of human potential.

Regarding Serbia, the EC has been telling us all of the above through the progress reports, screening reports and numerous analyses. The statistics are clear: Serbia is among the European countries with the highest at-risk-of-poverty rates and the highest Gini coefficients, used to measure income inequality, as shown by the recently published data by the Statistical Office of the Republic of Serbia. Additional cause for concern is given by the trend indicating that the gap between the rich and poor population is increasingly profound: 20% of the richest population in the Republic of Serbia has over 9 times higher equivalent income compared to the 20% of the poorest. Inequality is the issue under focus of the European and global public and one of the focus issues of the United Nations 2030 Agenda. More information on this issue can be found on the website of the Social Inclusion and Poverty Reduction Unit, as well as in the recently initiated Monitor of the Social Situation in Serbia dedicated to the issue of inequality.

Due to all of the above, the Government of the Republic of Serbia intensified its efforts in the field of employment and social policy through the adoption and implementation of the Employment and Social Policy Reform Programme (ESRP), the calculation of the EU Gender Equality Index (as the first country outside the EU to do so) and introducing a methodology for assessing the impact of reform on society under the Economic Reform Programme (ERP). Particularly encouraging is the fact that the above methodology, based on the model of Serbia, recently became an integral part of the process of drafting and applying ERPs for all countries participating therein, thus showing that Serbia can and should be a leader in inclusive development in the Balkans and beyond.

Finally, aiming to empower citizens to monitor and actively participate in the above reform, the Social Inclusion and Poverty Reduction Unit of the Government of the Republic of Serbia is preparing a programme of support for civil society organizations to build a platform for monitoring the application of ERP and ESRP. We believe this will additionally motivate citizens, as well as all competent institutions, to provide their contribution to building a common vision of inclusive economic development in Serbia.