United Nations Development Programme

Poverty,
Unemployment
and Social
Exclusion
Poverty, Unemployment and Social Exclusion

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POVERTY, unemployment and social

exclusion / <translation into English
Snježana Kordić ; editor in chief Nenad
Starc>. - 1st ed. - Zagreb : United
Nations Development Programme, 2006.

Izv. stv. nasl.: Siromaštvo, nezaposlenost

i socijalna isključenost.

ISBN 953-99888-6-1

I. Siromaštvo -- Hrvatska II.

Nezaposlenost -- Hrvatska III. Socijalna
isključenost -- Hrvatska

460331144
United Nations Development Programme (UNDP) is the
UN’s global development network, advocating for change
and connecting countries to knowledge, experience and
resources to help people build a better life. We are on the
ground in 166 countries, working with them on their own
solutions to global and national development challenges.
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Short extracts from this publication may be reproduced un-

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is indicated.

The views expressed in this paper are those of the authors

and do not necessarily represent the views of UNDP.

Copyright © 2006

By the United Nations Development Programme

(UNDP) in Croatia,
Kesterčanekova 1, 10000 Zagreb, Hrvatska

Editors (in alphabetical order):

Lana Ofak, Nenad Starc (editor-in-chief), and Senada
Šelo Šabić

Peer reviewers (in alphabetical order):

Domagoj Račić, Nenad Starc, Paul Stubbs and Zdenko
Babić

Translation into English and editing

(English version):
Davies d.o.o. and in part Snježana Kordić

Editing (Croatian version):

Kata Zalović-Fišter and Vicko Krampus

Cover and design:

KO:KE creative farm

Print:
Denona d.o.o.

Printed in Zagreb, Croatia

First edition 2006

ISBN: 953-99888-6-1
Authors (in order of chapters):

Zoran Šućur, Department of Social Work at the Faculty of Law of

the University of Zagreb (The Concept of Social Exclusion and The
Experience in Croatia)

Teo Matković, Department of Social Work at the Faculty of Law of the

University of Zagreb (Investigating Social Exclusion – Empirical Analysis
of Social Exclusion)

Aleksandar Štulhofer, Department of Sociology at the Faculty of

Philosophy of the University of Zagreb (Investigating Social Exclusion
– Empirical Analysis of Social Exclusion)

Branimir Šverko, Department of Psychology at the Faculty of

Philosophy of the University of Zagreb (Investigating Social Exclusion
– Unemployment and Social Exclusion)

Predrag Bejaković, Institute of Public Finance, Zagreb (Long-Term

Unemployment – A Determinant of Social Exclusion)

Jasmina Papa, Independent Consultant (Discrimination – A

Mechanism of Social Exclusion)

Nikola Pastuović, Department for the Education and Training of

School Subject Teachers in Pedagogy, Psychology, Didactics and
Teaching Methodology at the Teacher Education Academy of the
University of Zagreb (Social Inclusion through Education)

Matija Škegro, Central Bureau of Statistics (Statistical Appendix)

Contents

Foreword 7

Preface 8

Chapter 1: The Concept of Social Exclusion 10

1.1 Introduction to the concept of social exclusion 10
1.2 Challenges of terminology 11
1.3 Dimensions of exclusion 11
1.4 Exclusion and education 12

Chapter 2: The experience in Croatia 14

2.1 Poverty and unemployment 15
2.2 Social networks 20
2.3 Young people 21
2.4 The Roma 23
2.5 Conclusion 25

Chapter 3: Investigating Social Exclusion 26

3.1 Empirical analysis of social exclusion 26
3.1.1 Areas of deprivation and the extent of social exclusion 27
3.1.2 How excluded are the excluded? 28
3.1.3 Who are the socially excluded, and where do they live? 29
3.1.4 Conclusion 31
3.2 Unemployment and social exclusion 32
3.2.1 Impact of prolonged unemployment and employment 33
3.2.2 The likelihood of unemployed people finding work 36
3.2.3 Conclusion 37

Chapter 4: Long-term unemployment – A Determinant of Social Exclusion 38

4.1 The significance of employment and unemployment 38
4.2 The situation in developed and transition countries 41
4.3 The situation in Croatia 43
4.3.1 Long-term unemployment 43
4.3.2 What has been done? 45
4.4 Conclusion 46
Chapter 5: Discrimination – A Mechanism of Social Exclusion 48
5.1 The Roma 49
5.1.1 Discrimination 50
5.1.2 Challenges 52
5.2 People with Learning Disabilities 54
5.2.1 Discrimination 55
5.2.2 Challenges 57
5.3 Conclusion 57

Chapter 6: Social Inclusion through Education 60

6.1 Preschool education 60
6.2 Primary education 61
6.3 Compulsory basic and secondary education 62
6.4 An overview of Europe 64
6.5 Educational inclusion/exclusion in Croatia 66
6.5.1 Basic education 66
6.5.2 Adult education 66

Chapter 7: Policy Recommendations 70

7.1 Measures for the systematic monitoring of social exclusion 70
7.2 Work activation and employment measures 71
7.3 Measures for alleviating poverty 72
7.4 Educational measures 72
7.5 Anti-discrimination measures 74
7.6 Measures for raising public awareness and stimulating social solidarity and philanthropy 75

Appendix 1: Methodological Explanations for Chapter 3 76

Empirical analysis of social exclusion (Chapter 3.1) 76
Unemployment and social exclusion (Chapter 3.2) 77

Statistical Appendix 80

Ratified Human Rights Conventions 85

Bibliography 86
Foreword

Sustainable Human Development and Social Exclusion are mutually exclusive subjects. While concepts of exclu-
sion and its causes have received ample coverage in literature, little has yet been published about the way the
major elements of exclusion (poverty, unemployment and lack of social contacts) combine in creating a situa-
tion from which it is quite difficult to escape. Social exclusion must be overcome, as it is a moral imperative for
the European social soliarity to provide everybody with better opportunities in life. Just consider the figures:
an estimated 10 percent of the Croatian population, thus roughly 440,000 people, are estimated to be socially
excluded, and up to an additional 5 percent are assessed to be at high risk of being socially excluded. And it is
not just them, but also their families and children that are and will be affected, one generation after the other,
unless special measures are undertaken.

Equal opportunities in society and empowerment of vulnerable social groups increase their chances for active
and productive participation in society. The benefits of individuals’ active contribution to society as a whole are
considerable, not only in the sense of financial savings but also in terms of improved social integration, which is
particularly important in the light of European integration.

The insights shared through this publication and the policy and practical recommendations that it contains are
powerful messages for politicians, civil society organisations, the private sector, and government alike. Social
exclusion is not a choice; it is the indication of extremely unequal distribution of social and material wealth,
waning social solidarity, limited access to opportunities, and the inadequate implementation of European and
global norms and standards. The Report on Poverty, Unemployment and Social Exclusion is the first step in
Croatia to define Social Exclusion, find its implication in society and help the Croatian government in adopting
strategies and policies that aim to improve the status of the most vulnerable groups. The Report can also facili-
tate the preparation of the Joint Inclusion Memorandum, and thus support Croatia in the EU accession process.
The present publication does not attempt to cover all aspects social exclusion – a task that will be the theme of
the next UNDP National Human Development Report 2006. Instead, it attempts to draw links between unem-
ployment, poverty and exclusion, which we feel is of paramount importance to Croatian society.

I would like to thank all those whose creative ideas and valuable knowledge have facilitated the preparation
of this Report, especially the former UNDP Resident Representative in Croatia, Mr. Cornelis Klein, under whose
leadership the idea for this Report was born.

Yuri Afanasiev
Resident Representative
UNDP Croatia
Preface

This Report examines the problem of poverty, unemployment and social exclusion in Croatia. The topic arose
in the light of Croatian candidate status for the accession to the European Union. As its predecessors, Croatia
too has had to face many challenges in fulfilling demanding EU requirements. One of these requirements was
the preparation of the Joint Memorandum on Social Inclusion (JIM), which outlines the basic challenges which
a candidate country is facing with regard to poverty, human security and social exclusion, evaluates the advan-
tages and shortcomings of current inclusion policies, and defines their priorities and recommendations for the
future. It also serves as the basis for the National Action Plan on Social Inclusion which is prepared by all new
member states.

The United Nation’s Millennium Declaration and Millennium Development Goals largely coincide with the pri-
orities of social inclusion. Recognising the possibility of more successful joint activity, UNDP and the EU have
begun to cooperate on realising the Millennium Development Goals and strengthening the process of social
inclusion. In order to incite the national debate on the topic of social exclusion and give this concept a more
practical application, United Nations Development Programme in Croatia has jointly with Croatian experts on
poverty, education, employment and minority groups, decided to take the first step in attempting to under-
stand the extent and implications of social exclusion in Croatia. It is the intention of UNDP to continue stimulat-
ing the national discussion on social exclusion and to follow up with the 2006 National Human Development
Report (NHDR) on Social Exclusion, discussing in more dept other socially excluded groups in Croatian society
which were not the focus of this Report, and supplementing this analysis with localized indicators of social
exclusion. This NHDR will coincide with Croatian JIM, thus complementing Croatian efforts and supporting the
integration into the EU.

The exclusion of certain members and entire groups of society from mainstream social currents is one of the
more serious challenges facing the world today. Generally put, individuals, social groups, or geographical areas
can be considered socially excluded if they experience political, economic and/or social disadvantages, lack of
confidence, a sense of powerlessness or a degree of social alienation, resulting from a combination of interre-
lated problems, such as regional disparities, unemployment, poor professional or social skills, low incomes, poor
housing, high crime and violence levels or identification with a minority group. Social exclusion is not merely
a problem of economic disadvantages such as income poverty or unemployment. The interaction of different
dimensions of social exclusion creates different patterns and degrees of exclusion, as this Report in fact con-
firms. Whilst it is easy to recognise persons who are fully socially included, as well as those who are completely
excluded, it is much more difficult to identify those who fall somewhere in the middle - in the “grey“ area – and
who face the risk of social exclusion. Social exclusion encompasses, similarly to unfulfilled human rights, the
individuals’ inability to access public services, take part in the life of a community and function in society with
sense of personal dignity.

Most countries have not developed systems to prevent social exclusion. The aspiring EU members are not an
exception. Recent events in France confirm that this is far from being a solved problem. Given that there is no
EU enforcement mechanism for social inclusion, it becomes easy for the governments to marginalise the prob-
lem of social exclusion and place economic and political issues at the forefront of a country’s aspirations.

National strategies that combat social exclusion and which align with human rights approaches must attempt
to lift the most vulnerable social groups out of their position of disadvantage, preventing further exclusion of
individuals and groups at risk. Makers of inclusion policy can, when needed, single out certain particularly vul-
nerable groups (for example the homeless, people living with disabilities, substance abusers, children without
parental care, Roma and other minorities, underage mothers and ex-convicts), but they must be aware that no
single instrument exists for measuring the social exclusion of groups with different social and demographic
characteristics. In their efforts to prevent or mitigate exclusion, policy makers should make use of various meas-
ures and strategies. Naturally, all of socially excluded groups cannot be covered in one stride, and neither can
this Report. Rather, it attempts to give an assessment of the problem of social exclusion, and to recommend
ways of addressing it.

 Poverty, Unemployment and Social Exclusion

Chapter 1 of the Report defines social exclusion within its current European definition and elaborates on its
three basic components: poverty, unemployment and social isolation. Chapter 2 provides insight into the
ever more complex Croatian experience with social exclusion, poverty, unemployment, social networks, and
youth and Roma as an example of socially excluded groups or those facing multiple disadvantages. Chapter 3
presents two studies on social exclusion. The first is a preliminary empirical analysis of socially excluded persons
in Croatia, with reference to the regional distribution and demographic characteristics of the excluded. The sec-
ond study discusses employment as one of the most important elements of social exclusion and pays particular
attention to the long-term unemployed, who were observed over two years in a longitudinal study, clearly
indicating that long-term unemployment leads to social isolation and poverty. Chapter 4 is concerned with
long-term unemployment in Croatia as compared to the unemployment in EU Member States. It highlights the
employment measures taken so far and provides recommendations for an active labour market policy. Chapter
5 provides a number of practical examples of difficulties, misunderstandings, and discriminatory practises with
respect to the education of the Roma and children with learning disabilities. Chapter 6 presents education as
one of the possible causes of social exclusion, highlighting at the same time its critical role in achieving social
integration. Finally, Chapter 7 provides recommendations for systematic monitoring of social exclusion, inclu-
sion trough education, work activation, alleviating poverty and discrimination, raising public awareness about
social exclusion issues, and stimulating social solidarity and action.

The Editors

Poverty, Unemployment and Social Exclusion 

Chapter 1:
The Concept of Social Exclusion

In 1989, the term “social 1.1 Introduction to the concept of a constituent part of the Preamble to the European
Social Charter – the basic document of the Council
exclusion“ became social exclusion
of Europe concerning social rights. The Charter was
a constituent part of In the last 10 years, social exclusion has become one amended in 1996 when a new right, “the right to
the Preamble to the of the most frequently discussed topics in the social protection against poverty and social exclusion“, was
European Social Charter sciences. Some even believe social exclusion to be introduced. During the 1990s the common EU social
the main social issue of our time, and that it sweeps policy led to the formulation of a strategy to combat
– the basic document of to one side old concepts like poverty and marginali- social exclusion at the 2000 Lisbon European Council
the Council of Europe sation. In 1989, the term “social exclusion“ became (known as the Open Method of Coordination).
concerning social rights.

Box 1.1: Social Inclusion Policy in the EU – Five elements of the Open Method of Coordination1

1. Common objectives in the fight against poverty and social exclusion were agreed on at the
EU Council summit in Nice in December 2000, and were revised at the December 2002 session – the
Employment, Social Policy, Health and Consumer Affairs Council. These objectives defined a policy
whereby Member States pledged to “take steps to make a decisive impact on the eradication of poverty“
by the year 2010.

2. National Action Plans on Social Inclusion, or NAPs/incl, are the main channels through which
Member States realise the jointly agreed objectives. NAPs/incl follow an agreed structure and cover a
two-year period. The first plans were submitted by the 15 EU members in June 2001, and the second in
June 2003. The 10 new Member States submitted their first action plans in July 2004, covering the period
to the middle of 2006.

3. Joint Inclusion Memoranda, or JIMs, precede the NAPs/incl process, and outline the situation and
the political priorities regarding poverty and social exclusion in the new Member States prior to their full
membership. Ten such JIMs were signed by the European Commission and representatives of national
governments on 18 December 2003. The JIM for Bulgaria was signed in February 2005, and the one for
Romania in June 2005. The JIM process is mandatory for all acceding countries.

4. The Joint Report on Social Inclusion constitutes the response of various EU bodies to NAPs/incl. The
first such report was submitted at the European Council in Laeken in December 2001. A second, consider-
ably more detailed, report was written in December 2003 and adopted in March 2004, while a report con-
taining an analysis of NAPs/incl from the 10 new Member States was approved in 2005. In 2005 the Joint
Report on Social Protection and Social Inclusion was introduced, and is to be issued once a year.

5. Social Inclusion Indicators. The Belgian Presidency in the second half of 2001 launched the process of
producing poverty and social exclusion indicators. These are known as the Laeken indicators, since they
were first approved at the European Council summit in Laeken in December 2001. It was agreed that the
indicators would encompass three levels: (1) 10 primary indicators of financial poverty and material dep-
rivation, employment, health and education; (2) secondary indicators, which are complementary to the
primary indicators, but elaborate them in greater detail; (3) indicators which Member States themselves
decide to include in their NAPs/incl, and which assist them in reinterpreting the primary and secondary
indicators and/or in illuminating the specifics of individual areas.

The first two elements of the Open Method of ment intend to indicate national specifics, and there
Coordination form the basis for attracting resources are no significant financial resources allocated for
from the structural and cohesion funds of the them in EU funds.
European Union, while the third, fourth and fifth ele-

Source: Stubbs, P., Zrinščak, S. (2005). Extended social Europe? Social policy, social inclusion and social dialogue in Croatia and the European Union. In K. Ott (ed.) Croatian Accession to the European Union.
1

Institute for Public Finance and Friedrich Ebert Stiftung. Zagreb, Croatia, pp. 166-167. Website: http://europa.eu.int/comm/employment_social/social_inclusion/index_en.htm

10 Poverty, Unemployment and Social Exclusion

The Concept of Social Exclusion
Within the framework of activities of the EU Pre-acces-
sion Strategy for the Republic of Croatia, two impor-
tant joint activities in the areas of employment and
social exclusion were initiated in 2005. Activities in
the area of employment should result in the creation
and conclusion of a Joint Assessment of Employment
Policy Priorities (JAP), while the activities in the area
of social exclusion should result in the creation and
conclusion of a Joint Inclusion Memorandum (JIM).
These documents aim to pave the way for Croatia’s
full participation in the Open Method of Coordination,
in light of the EU accession process.
The JAP is one of the evaluation documents for the
candidate country. It defines employment policy and
the reform of institutions in accordance with the re-
quirements of the European employment strategy and
the implementing mechanisms of the European Social
Fund. The aim of the JIM document is to prepare the
country for the full application of the open method of
coordination in the area of social inclusion from the
day it accedes to the EU. This means beginning to work
towards the EU’s goals of tackling poverty and social
exclusion through national policy, taking into account
each candidate country’s specific characteristics.
In mid 2003, Croatia started to actively implement
the UN Millennium Declaration by defining the
Millennium Development Goals at national level.
The cooperation between the relevant ministries
and other State administration bodies, as well as
NGOs, numerous experts and the UNDP Field Office
in Croatia, resulted in the National Report on the
Implementation of the UN Millennium Declaration
Goals in June 2004. The goal regarding poverty was
defined in the above-mentioned report as to “reduce
by half the number of people who are considered to
be poor by 2015“.
The merging of the Ministry of Foreign Affairs and
the Ministry of European Integration into the Ministry
of Foreign Affairs and European Integration offers
a chance to ensure that the issues covered by the
Millennium Development Goals are integrated into
the wider context of European integration,. This key
process, which defines the context of development
processes in Croatia, may provide additional impetus
and ensure a more coordinated approach than has
http://www.europa.eu.int/comm/eurostat
2
The different approaches to social exclusion among the Member States of the EU are mostly based on two research traditions: the Anglo-Saxon tradition of poverty research, which emphasises the influ-
3
ence of the distribution of financial/material goods and “social awards“ on social exclusion (distributional aspects); and the French (Francophone) tradition, which emphasises the influence of social ties
and relations (relational aspects). Distributional aspects include: income, basic elements of standard of living, the labour market, education, housing conditions, health, and residential area; relational
aspects include: social ties, participation in civil organisations, participation in politics, and family life.
Böhnke, P. (2001). Nothing Left to Lose? Poverty and Social Exclusion in Comparison. Empirical Evidence on Germany. Social Science Research Center. Berlin, Germany.
4
Tsakloglou, P., Papadopulos, F. (2002). Aggregate Level and Determining Factors of Social Exclusion in Twelve European Countries. Journal of European Social Policy, Vol. 12, No. 4, 2002, pp. 211-225.
5
been the case so far, and in that sense may contribute Social exclusion should
to a better level of implementation of the relatively
demanding goal of reducing poverty by 2015 as set
be understood as a
out in the National Report. so-called “umbrella
concept“, and not as
1.2 Challenges of terminology a concept that can be
The frequent use of the term “social exclusion“ has not precisely used.
resulted in satisfactory clarity, and it still lacks a sound
theoretical basis and empirical validation. Many ideas
related to exclusion have been formulated to be used
in political discourse. Social exclusion should there-
fore be understood as a so-called “umbrella concept“,
and not as a concept that can be precisely used. Some
countries have their own (official) definitions of social
exclusion (the UK, for example, has founded a Social
Exclusion Unit, while France is unique in its adoption
of the Law against Exclusion in 1998).
1.3 Dimensions of exclusion
In 2001, in an effort to standardise its measurement of
social inclusion, the EU adopted a list of social exclu-
sion indicators known as the Laeken indicators. These
18 statistical indicators cover four dimensions of social
exclusion: financial poverty (income), employment (la-
bour market), health and education. However, a single
list is just the first step in standardising the measure-
ment and the analysis of social exclusion indicators.
A number of recent studies still differ in the way they
collect and analyse data (different indicators of social
exclusion and non-monetary deprivation were used
in the reports based on the data gathered by the
European Community Household Panel (ECHP)2).
The manner of analysing empirical indicators becomes
important because the analyses of social exclusion
show that there is no concentration of dimensions of
exclusion among the population. Multidimensional
deprivation and the combination of material and re-
lational exclusion characterise a rather small number
of people in developed countries. In Germany, no one
displays more than five out of the total of 11 dimen-
sions3, and only 8% of the population was excluded in
three or more areas4. Only 11% of people questioned
were subject to a combination of the distributional
and relational dimensions of exclusion. In 12 countries
of the EU, between 1% and 6% of the population were
excluded in three or four dimensions5.
Poverty, Unemployment and Social Exclusion 11
The Concept of Social Exclusion

Social exclusion is 1.4 Exclusion and education

often perceived as
Different approaches aside, exclusion is often per- unemployment (marginalisation in the labour mar-
a vicious circle with ceived as a vicious circle with three components: ket), poverty, and social isolation6 (Figure 1.1).
three components:
unemployment, poverty, Figure 1.1 Education and the “vicious circle“ of social exclusion
and social isolation.

Poverty Social
isolation

Unemployment

Education

Note: Arrows with solid lines indicate a relationship of a tighter nature, while arrows with dashed lines indicate weaker and
variable relationships.

Different components of social exclusion influence
each other, thus creating a spiral of insecurity, which
ends in multiple deprivation. Deprivation usually be-
gins with the loss of employment, which in turn leads
to a significant degradation in living standards, that is,
increased risk of poverty. Living in poverty creates ad-
ditional difficulties in the search for employment and
contributes to a long-term unemployment trap for
many individuals. At the same time, unemployment
and poverty inhibit participation in social activities.
Due to the lack of money and to the stigmatisation
that can be caused by unemployment, social ties
are weakened, increasing the probability of social
isolation. If the period of unemployment, and con-
sequently poverty, is prolonged, tensions will occur
in the family and in marital relations. In other words,
the disintegration of marriage and family becomes
more likely. The lack of money worsens not only fam-
ily relations but also ties with friends, neighbours,
and relatives, since ‘social exchange’ is necessary for
the maintenance of social relations. In turn, the social
isolation has an adverse effect on employment, since
the individuals concerned are isolated from sources of
information and lack the support needed for employ-
ment search.
Social exclusion is understood first and foremost as
exclusion from the labour market. Labour is not only
the basis for economic independence; it also promotes
certain moral values, such as self-respect and a desire
for advancement. However, those who stress the cen-
tral place of work in society often reduce citizenship to
participation in the economy, and neglect the fact that
there are large inequalities among those who work
for a living. If social exclusion is conceived primarily as
exclusion from the labour market, in other words, if
employment is a precondition for inclusion, then edu-
cation is one of the key mechanisms of social inclusion.
This message may be derived from a large number of
EU documents. The degree of employability is con-
nected with the possession of qualifications and skills.
It is, however, necessary to point out that the definition
of the term “social exclusion“ – which concentrates on
the ability to participate actively in the labour market
– is correct for the large part, but is still too narrow. In

Room, G. (ed.) (1995). Beyond the Threshold: The Measurement and Analysis of Social Exclusion. The Policy Press. Bristol, United Kingdom; Silver, H. (1994). Social Exclusion and Social Solidarity: Three
6

Paradigms. International Labour Review, Vol. 133, No. 5-6, 1994, pp. 531-578; Kronauer, M. (1998). “Social Exclusion“ and “Underclass“ – New Concepts for the Analysis of Poverty, in H. Andress (ed.)
Empirical Poverty Research in Comparative Perspective. Ashgate. Aldershot, United Kingdom, pp. 51-73; Gallie, D. (ed.) (2004). Resisting Marginalization: Unemployment Experience and Social Policy in
the European Union. Oxford University Press. Oxford, United Kingdom.

12 Poverty, Unemployment and Social Exclusion

The Concept of Social Exclusion
most societies, there are individuals (albeit not many
of them) who are rich enough and who do not want
to participate in the labour market, but we cannot say
they are either poor or socially excluded.
Education influences social inclusion through edu-
cational achievement, lifelong learning, and easier
access to paid work. Educated individuals are more
mobile and adapt more easily to new circumstances.
Social exclusion and educational failure are very often
regarded as causally related. The socially excluded
often face the problem of a lack of knowledge and
skills. Education contributes not only to the acquisi-
tion of knowledge and skills but also influences the
socialisation, inclusion and empowerment of indi-
viduals. Education is, among other things, a means to
personal fulfilment.
On the other hand, within modern societies there are
certain social communities of individuals with rela-
tively low levels of education who may be considered
poor (according to the existing standards), but that
does not necessarily mean that the individuals within
those communities are affected by social exclusion.
It is, however, necessary to emphasise that we are
talking about certain specific communities and social
groups for whom it is sometimes possible to consider
that the whole community, tentatively speaking, is
affected by the problem of social exclusion.
However, the problem of social exclusion cannot be
solved simply by reforming the educational system
Table 1.1 Living conditions of the poor in Croatia
Poverty indicators
House/flat with less than 10m2 per person
No electricity
No indoor toilet
No indoor bathroom
No running water
No sewerage system
No telephone
No TV set
No refrigerator or freezer
No washing machine
Source: World Bank (2000). Croatia Economic Vulnerability and Welfare Study. World Bank. Washington, D.C., USA.
It should also be mentioned that Croatia’s poorer
citizens were previously in a better position regard-
ing access to basic healthcare services in comparison
with other countries, even more developed countries.
However, in the context of announced reforms to
Whitty, G. (2001). Education, Social Class and Social Exclusion. Journal of Education Policy, Vol. 16, No. 4, 2001, pp. 287-295.
7
and by encouraging greater educational aspiration. If social exclusion is
Better education will not automatically remove social
exclusion. Social exclusion, and education itself, are
conceived primarily
affected by income inequality, class and/or ethnic as exclusion from the
divisions in society, physical separation, globalisa- labour market then
tion, the division of power, the stratified nature of education is one of the
the education market, etc7. Changes in education
and educational aspirations are not enough to
key mechanisms of
compensate for the lack of jobs or the highly com- social inclusion.
petitive modern (global) labour market. A person’s
educational achievements can be nullified because
of discrimination by employers on the basis of age or
gender. Therefore, educational achievements must be
complemented with other elements that will provide
for success at work and satisfaction in life.
The economic life of the poor is different from the
economic life of the non-poor in many different ways.
Apart from insufficient income and a lower level of
education, the living conditions of the poor are signif-
icantly different from those of the rest of the popula-
tion. Table 1.1 shows the differences in some of these
conditions. Poor people’s houses have fewer square
metres per person, and they are more often cut off
from basic utilities (electricity, water, sewerage sys-
tem) and from the telephone network. Furthermore,
they usually do not own household appliances (e.g.
refrigerator, washing machine, TV set). Nevertheless,
most households, even the poorer ones, have electric-
ity, which at least gives them the minimum prerequi-
site to avoid an extremely impoverished way of life.
Total population (%) Poor (%)
8.1 25.0
0.3 2.1
8.8 37.2
7.9 38.1
5.7 22.0
24.0 45.2
10.7 40.1
3.2 17.0
5.9 16.6
8.9 32.6
the healthcare system, it is important to preserve,
and even to improve if possible, the provision of all
healthcare services to socially vulnerable and poorer
citizens, as they more frequently rely on such services
in order to attempt to overcome their situation.
Poverty, Unemployment and Social Exclusion 13
Chapter 2:
The Experience in Croatia

The term “social The term “social exclusion“ first appeared in Croatian Exclusion based on family structure:
specialist publications in the mid-1990s, and since - Single-person households,
exclusion“ is most then has gradually been making its way into scientific - Single-parent families,
frequently used in and political discourse. Thus far, only a few primarily - Children without parental care,
describing the position conceptual and theoretical articles have been pub- - Couples with three or more children.
of certain social groups, lished in Croatian8, along with one empirical study9.
Given that social exclusion is becoming a key concept Exclusion based on identification:
such as the poor, the in the social sciences, and since its practical applica- - Ethnic/racial/religious minorities,
unemployed, young tion is linked to Croatia’s EU accession processes, - Sexual minorities (LGBTT population12),
people, or the Roma. the term is being used more frequently in Croatia, - People with alternative lifestyles (e.g. punk),
particularly under the influence of documents and
projects emanating from the Council of Europe and Exclusion based on age:
the European Union. - Youths aged 15-2913,
- The elderly (65 or over) and pensioners.
The use of this term in Croatian is not, however, free
of vagueness and ambiguities10. The term “social Exclusion based on criminal wrongdoing:
exclusion“ is most frequently used in describing the - Prisoners and ex-prisoners,
position of certain social groups, such as the poor, - Juvenile delinquents,
the unemployed, young people, or the Roma. Social - Victims of violence.
exclusion has thus been linked mainly with the con-
cepts of poverty, unemployment, and inequality or Exclusion based on education:
discrimination. In using the concept of exclusion, the - People with lower levels of (or no) education.
intention is to highlight the problems of social par-
ticipation, where individuals or groups no longer take Exclusion based on health:
part in key processes in society and where their social - People with special needs,
contacts are reduced. - People with mental illness,
- People living with HIV/AIDS and hepatitis C,
Social groups11 experiencing an increased risk for - People with dependency problems, such as alco-
social exclusion could be categorized in the following holics and drug abusers.
way:
Exclusion based on a type of handicap:
Exclusion based on economic status: - People with physical handicaps and handicaps re-
- The poor, lated to sensory organs,
- The unemployed, especially the long-term - People with mental or intellectual difficulties.
unemployed,
- Homeless people,
- Housewives,
- Returnees,
- Internally displaced persons,
- Migrants.

Šućur, Z. (2004). Socijalna isključenost: pojam, pristupi i operacionalizacija. Revija za sociologiju, 35(1-2), 2004, pp. 45-60; Koncept društvene isključenosti. Društvena istraživanja, 13(1-2), 2004, pp.
8

171-193.
Šverko, B., Galešić, M., Maslić-Seršić, D. (2004). Aktivnosti i financijsko stanje nezaposlenih u Hrvatskoj. Ima li osnove za tezu o socijalnoj isključenosti dugotrajno nezaposlenih osoba? Revija za socijalnu
9

politiku, 11(3-4), 2004, pp. 283-298.

10
In everyday as well as political discourse, the terms “exclusion“ and “exclusiveness“ are often confused in Croatian. Social exclusiveness is meant to refer to the closed nature of a certain group and its inacces-
sibility to those outside that group. Exclusiveness can also imply intolerance towards certain individuals or groups. This means that the excluded need not be exclusive, nor the exclusive excluded. Besides
this confusion of terms, which results partly from their linguistic similarity, there are also problems connected with the fact that the meaning of the term “social exclusion“ is not sufficiently clear.
11
The categories are not exclusive and have been invented for the purposes of this paper to facilitate the presentation of vulnerable groups. Potential reasons for exclusion are multidimensional and in
reality these categories interrelate.
12
Lesbian, gay, bisexual, transsexual and transgender population.
13
It is difficult to determine and define the age limits of youth in an unambiguous way and the formal definition of this period of life differs among various institutions of United Nations, European Union
and national institutions. When speaking about young people, one generally thinks of the age group between 15 and 24 years of age, but the period of youth in many cases is prolonged until the age of
thirty, primarily because of the longer duration of education and the difficulties in finding employment, which prevents earlier achievement of social independence. Therefore, the National Programme of
Action for Youth refers primarily to activities for the benefit of young persons between 15 and 29 years of age. (The State Institute for the Protection of the Family, Maternity and Youth (2003). The National
Programme of Action for Youth, Zagreb, Hrvatska. p. 11.)

14 Poverty, Unemployment and Social Exclusion

The Experience in Croatia
In Croatia, groups with the highest relative poverty
risk include (author’s estimates for 2003):
1. Single-person households,
2. Unemployed people,
3. Families consisting of one adult with one or more
children (single-parent families),
4. People with a lower level of education
5. Elderly people (aged 65 or over)14,
6. Pensioners,
7. Couples with three or more children,
8. Couples with one child, and
9. Children and young people (aged 0-24).
It has been shown that only research that monitors
the same group of people over a given period of time
(a longitudinal study) can answer the question of
whether a pattern of insecurity and social exclusion
exists in a Croatian context15. Yet such studies, wheth-
er their focus be on poverty or on unemployment,
are practically non-existent. The dynamics of poverty
have not yet been adequately researched, and thus
we do not have sufficient information regarding what
happens to individuals or households that have lived
in poverty for a long time. The same can be said for
long-term unemployment.
2.1 Poverty and unemployment
The view taken by many in Croatia is that the term
“exclusion“ covers more than the term “poverty“.
Poverty refers mainly to a lack of material or monetary
resources, and policy on poverty focuses on the real-
location of budgetary funds (i.e. addressing income-
based poverty). In contrast to poverty, exclusion im-
plies more than a lack of money or material goods - it
also covers social, cultural, political and other dimen-
sions, meaning that better access to institutions and
other mechanisms of social integration is a prerequi-
site for the success of policies tackling exclusion.
On the other hand, in linking unemployment with
various dimensions of social exclusion, Croatian re-
searchers have endeavoured to highlight the multidi-
mensional nature of the phenomenon of unemploy-
ment, i.e. both its material and socio-psychological
consequences. The view is that unemployed individu-
als not only have reduced incomes, but also have
poorer social networks, and thus fewer opportunities
to reintegrate into the social fabric. The term “social
exclusion“ emerged as an attempt to explain com-
prehensively the consequences of the loss or “disap-
pearance“ of work in Croatian society. The following
In Croatia, there is a significant number of people aged 65 or over who are not entitled to receive a pension (most often farmers who did not contribute to a pension fund).
14
See Chapter 3.2 of this Report.
15
World Bank (2000). Croatia Economic Vulnerability and Welfare Study. World Bank. Washington, D.C., USA.
16
question has been posed: how can social integration Setting out from the EU’s
be maintained in a situation where the labour market
no longer offers enough opportunities for social in-
official poverty line, we
clusion? Both the unemployment rate registered by find that 17% to 18% of
the Central Bureau of Statistics (CBS) and labour force Croatia’s population has
surveys indicate that Croatia has now had a high level been living in poverty
of unemployment (more than 15%) for a consider-
able period. Moreover, long-term unemployment during the last several
(unemployment for longer than one year) is a serious years.
problem, affecting more than half of all unemployed
people. As a rule, long-term unemployment leads to
a weakening of labour and professional skills, more
difficulties with re-employment, financial problems,
and withdrawal from the labour force.
During the 1990s, Croatia was faced with a process
of impoverishment that affected the vast majority
of its population. Without help from the State, par-
ticularly during wartime and the post-war period,
many social groups would have ended up in severe
poverty or destitution. The World Bank and Croatia’s
Central Bureau of Statistics (CBS) carried out the
first representative survey of poverty at the national
level only in 199816. At that time, around 10% of
Croatia’s citizens were living below the absolute
poverty threshold, meaning that they were unable
to meet their basic needs. Compared to other transi-
tion countries, Croatia showed low absolute poverty
rates. However, after 1998 it was no longer possible to
monitor the trend of absolute poverty, since the CBS
began publishing poverty indicators based on relative
poverty lines defined in relation to certain statistical
indicators, such as the average or median wage or per
capita GDP. To study trends in poverty, it is necessary
to make use of the same poverty line over a long pe-
riod of time. The reason for switching to relative pov-
erty lines was that Croatia has no national or official
poverty line. A “national poverty line“ is understood
as one which is regarded by the government (and the
public) of a country as corresponding to its social con-
ditions, such that the trend and extent of poverty may
be measured in relation thereto. Besides this, such a
poverty line can serve as a criterion for defining the
level of compensation in the social security system,
more particularly welfare assistance.
Only in the past few years has it been possible to moni-
tor poverty indicators according to a unified methodol-
ogy. Setting out from the EU’s official poverty line (de-
fined as 60% of the median national income), we find
that 17% to 18% of Croatia’s population has been living
in poverty during the last several years (Figure 2.1).
Poverty, Unemployment and Social Exclusion 15
The Experience in Croatia

Despite the widespread Figure 2.1 Poverty rates in Croatia (2001 – 2003)
belief that inequalities
in Croatian society are
very high, they are not,
however, significantly Monetary income and income in kind Monetary income
greater than those 25,0%
in other transition
20,0%
countries. 20,5% 21,9%
15,0% 17,2% 18,2% 18,9%
16,9%
10,0%

5,0%

0,0%
2001 2002 2003

Source: Central Bureau of Statistics (CBS)

Note: In calculating poverty rates, the modified OECD equivalence scale has been used (head of household = 1, other adults in
household = 0.5, children under 14 years of age = 0.3).
The term “income in kind“ includes all of a household’s “income“ in non-monetary form (e.g. food produced on its own prop-
erty, gifts in the form of material goods, work done in exchange for food and material goods, and so on).

Compared with most EU countries, Croatia has a
somewhat higher poverty rate (Figure 2.2). The rate
of poverty in southern European countries and in
Ireland is almost identical to that in Croatia. On the
other hand, poverty rates in Denmark, Germany, the
Netherlands, Finland, Sweden, Slovenia, the Czech
Republic and Slovakia are lower than Croatia’s by at
least half. Inequality indicators can help us to explain
these differences in poverty rates among individual
countries, since relative poverty lines depend directly
on the level of income inequality in a given society.
Many consider relative poverty lines to be measures
of inequality, rather than of poverty. Croatia ranks
among the European countries with the highest
levels of economic inequality (Figure 2.3). Despite
the widespread belief that inequalities in Croatian
society are very high, they are not, however, signifi-
cantly greater than those in other transition countries.
It would seem that the public perception of great
inequalities in Croatia results from a conviction that
these inequalities are unjustified. A good many of
those who became rich did so in a manner the public
considers unjust. Privatisation has deepened the gap
between rich and poor, and there are strong convic-
tions that the privatisation process is full of corruption
and lawlessness.

16 Poverty, Unemployment and Social Exclusion

The Experience in Croatia

Figure 2.2 Poverty rates in Croatia and EU countries (2001) The groups in Croatia
with the greatest
25%
poverty risk are the
21% 21% 20% 20%
19% 19%
elderly, pensioners, the
20% 18% unemployed, people
17% 17%
16% 16%
15% 15% 15% 15% 15% with a lower level of
15%
13% 13%
education, single-person
12% 12%
11% 11% 11% 11% 11%
households, and single-
10% 10%
10% 8%
parent families.
5%
5%

0%
Ire tia
Gr nd
Po ce

l
ly
ite Es ain
ng a
hu m
Cy ia
La s
Fr ia

M e
Po lta
Lu elg d
m m

Ne Aus g
er a
ov s
rm a
nm y
Fin rk
Sw and

ec un n
pu y
Sl blic

EU a
25

EU 5
10
ga

Sl nd

De an
Ki ni

th tri

Ge eni

i
c

Re r

1
ur

Cz H de
B an
Ita

an

tv

ak
a

h ga
Lit do

xe iu
ee

an
pr
oa

a
la

EU
p
d to
rtu

bo

la
l

l
e

ov
S
Cr

Un

Source: CBS
Note: The poverty line is defined as 60% of median national income. Poverty indicators pertain only to monetary income
(without income in kind). The poverty rate in Croatia was rounded from 20.5% to a whole number (Figure 2.1). EU 10 com-
prises the 10 countries that became EU Members on 1 May 2004. The data for Cyprus are from 1997, for Latvia 2002, for Malta
and Slovenia 2000, and for Slovakia 2003.

Figure 2.3 Gini coefficients in Croatia and EU countries (2001)

0,40 0,37
0,35 0,34 0,33 0,33
0,35 0,32 0,31 0,31
0,30 0,30 0,29 0,29 0,29 0,28 0,28 0,28 0,28
0,30 0,27 0,27 0,26
0,25 0,25 0,24 0,24 0,24
0,25 0,23 0,22 0,22 0,21
0,20

0,15

0,10

0,05

0,00
Es gal

La ia
ia

Gr n
hu e
ite C nia
ng a
Po m

M d
ta

Ire ly
Cy d
Lu el us
m m

Ne Fra g
er e
ec rm s
Re any

Fin lic
Sw nd
Au en
Hu stria

ov y
nm a
Sl ark
ia
25

EU 5
10
Cz Ge and
Ki ti

De eni
Lit eec

th nc

Sl gar

1
ur
ai

n
Ita
n
tv

ak
al
do

xe giu

b
pr
d roa

ed
la

la

la

EU
EU
to

Sp

a
tu

bo

pu

ov
n
l
r
Po

h
Un

Source: CBS
Note: Inequality indicators pertain only to monetary income (without income in kind). EU 10 comprises the 10 countries that
became EU members on 1 May 2004. The data for Cyprus are from 1997, for Latvia 2002, for Malta and Slovenia 2000, and for
Slovakia 2003.
The Gini coefficient is a measure of overall economic inequality in a given society. It can represent values between 0 (where
income is distributed equally among citizens) and 1 (where one person possesses a society’s entire income). These are only
theoretical possibilities which do not exist in reality. In developed countries, Gini coefficients range between 0.20 and 0.40. A
coefficient greater than 0.40 indicates a very high level of inequality in a given society.

Poverty, Unemployment and Social Exclusion 17

The Experience in Croatia

It seems that In general, poverty is tied to certain demographic
and social characteristics (gender, age, economic
unemployment has activity, etc.). This means that certain groups are
a more detrimental over-represented among the poor, i.e. their number
impact on men’s among the poor is larger than their proportion of
material status than on the overall population. These groups have a greater
relative poverty risk, meaning a higher likelihood of a
women’s. Only in this certain group becoming poor in relation to the aver-
category do men have age poverty risk in society. Relative poverty risk is a
a considerably higher ratio between a certain group’s poverty rate and the
poverty rate of society as a whole. When the relative
relative poverty risk
than women.
poverty risk for a certain group equals 1, this means
that the poverty risk for that group is average, that is,
equal to that of society as a whole. If the relative pov-
erty risk is greater than 1, then we are dealing with
an above-average poverty risk (e.g. for members of a
group with a relative poverty risk of 1.7, there is a 70%
greater than average probability that they will live in
poverty). Conversely, for members of a group with a
relative poverty risk of 0.6, the likelihood that they will
become poor is 40% less than the average.

Box 2.1: Shelters for the homeless

The Split-based organisation MoSt has been successfully running two projects, the Shelter for Homeless
Men (since 2000) and the Shelter for Homeless Women (since 2003). Besides providing shelter and emer-
gency accommodation, the main objectives of these projects are to provide help in completing docu-
ments and asserting their rights to social care, and the re-socialisation of members of one of the most
vulnerable groups in society. MoSt is working with various institutions to tackle homelessness.

The groups in Croatia with the greatest poverty risk unemployed, people with a lower level of education,
are, as shown in Figure 2.4, the elderly, pensioners, the single-person households, and single-parent families.

Figure 2.4 Relative poverty risk for certain groups (2003)

2,5
Relative poverty risk
(average = 1)

2,1
1,9
2 1,7 1,7
1,5
1,2 1,1
0,9 0,9
1

0,5

0
(0 ng

or e

rs

ol n

ild

re r

re r
e

ild o

ild o
m pl

eh rso
ne

op

ch

ch 3

ch 1
le ou
4)

e)

ds

n
d eo

sio

e ith

e ith
us pe
pe
-2
op d y

1
an p

ho le-

or w

or w
n

ith
5 ly

ed
pe an

Pe
(6 er

m les

m ult
ng

sw
oy
d
n

ad
up
Si
El

pl
re

le
em
ild

Co
up

1
Ch

Co
Un

Source: Author’s calculations based on data from CBS.

18 Poverty, Unemployment and Social Exclusion

The Experience in Croatia

Poverty in Croatia is, in large part, more prevalent
among elderly and single-person households than it
is among households with a large number of children.
The profile of this poverty and the structure of income
sources indicate that the poorest citizens are economi-
cally inactive, unemployed, or low wage earners. Social
transfers (including pensions and welfare assistance)
make up an ever greater part of the income structure
among poor people. Income in kind (mainly self-pro-
duced food) has played an important role in meeting
poor people’s basic needs hitherto; however, this
component of their income is gradually diminishing.
Wealthier segments of society mostly earn their income
in the market (wages, income from self-employment
and property), while the poorest people rely largely on
social transfers from the State and on income in kind.
Figure 2.4 confirms that the unemployed are among
the groups with the highest relative poverty risk
(nearly twice as high as the average, and lower only Even in times of
than the relative poverty risk for single-person house-
economic growth the
holds). The unemployed are clearly not the most
numerous group living in single-person households. “circle of poverty“
These are mainly pensioners or other elderly people remains tightly closed.
who have no pension earnings and no financial sup- The poor often appear
port from an extra-familial network. as “outsiders“ on the
It seems that unemployment has a more detrimental
labour market, meaning
impact on men’s material status than on women’s that, due to insufficient
(Table 2.1). Only in this category do men have a con- human capital (a low
siderably higher relative poverty risk than women. level of education and
Moreover, this risk has been increasing from year
to year, while the risk for unemployed women has
poor skills), they are
actually decreased (albeit insignificantly). When un- unable to make use
employed, women are probably more able to rely on of the opportunities
the financial income of their spouses or other family deriving from economic
members (men’s average earnings are considerably
growth.
higher than women’s).

Table 2.1 Poverty rates in Croatia by economic activity (%)

(poverty line = 60% of median national income)

2001 2002 2003

Overall population 17.2 18.2 16.9
M 15.4 17.7 15.8
F 18.7 18.6 17.9
Employed 5.2 5.8 5.2
M 6.0 6.6 6.0
F 4.1 4.9 4.3
Self-employed 20.1 19.0 18.4
M 20.0 17.3 16.8
F 20.2 21.0 20.1
Unemployed 32.2 35.0 32.4
M 35.6 42.5 39.7
F 29.6 28.1 26.6
Pensioners 21.3 23.2 20.7
M 19.4 23.7 20.3
F 22.9 22.9 21.0
Other inactive people 20.0 21.3 20.3
M 15.8 19.5 17.7
F 22.7 22.7 22.0

Source: CBS

The reasons for the over-representation of unem-
ployed and economically inactive people among the
poor lie in the limited opportunities for employment
(insufficient number of jobs in the economy and poor
labour market dynamics, in the sense that those who
are without work have difficulty finding new jobs).
Data on stagnating or increasing poverty levels in
Croatia during periods of economic growth likewise
indicate that poverty is linked to poor people’s posi-
tion on the labour market. In other words, even in
times of economic growth the “circle of poverty“
remains tightly closed. The poor often appear as
“outsiders“ on the labour market, meaning that, due
to insufficient human capital (a low level of education
and poor skills), they are unable to make use of the
opportunities deriving from economic growth. Until
now, it has been those who are already employed that
have profited from growth, that is, people who have
succeeded in keeping their jobs, while growth has
had a neutral effect on the unemployed. The social
security system cannot compensate for the unequal
distribution of wealth created via economic growth.

Poverty, Unemployment and Social Exclusion 19

The Experience in Croatia
Some studies suggest Those systems that are targeted mostly at the poor
(welfare assistance and unemployment benefit) cover
that participation in only a small part of overall social expenditure. These
unofficial economic two schemes contribute to a reduction in income in-
activities, while equalities, in contrast to the pension system, to which
the largest part of social expenditure is allocated.
preventing extreme However, over the last 10 or more years, the number
poverty and acting as of unemployment benefit recipients has generally not
a social buffer, actually exceeded 20% of all unemployed persons.
contributes to increased
The few studies undertaken on the relationship be-
income inequalities in tween unemployment and social exclusion have not
society. provided consistent results. The transversal study by
Šverko et al (2004) concluded that the duration of
unemployment did not have a significant impact in
terms of people’s financial situation and their social
support. On the other hand, the latest results of a
longitudinal study (presented in Chapter 3.2) indicate
that extended unemployment leads to poverty and
social isolation. It is apparent from both studies that
unemployment is linked to an unsatisfactory financial
situation. It would seem that long-term unemploy-
ment is connected with social exclusion in this country
as well, although it is too soon to draw final conclu-
sions based on this first and only longitudinal study.
A longer duration of unemployment need not neces-
sarily result in a dramatic worsening of the financial
status of the unemployed. The reasons for this lie pri-
marily in the facts that unemployed people in Croatia
rely on income from other family members, and that a
great many unemployed people registered in the data
base of the Croatian Employment Service (estimates
indicate more than half) are involved in some form of
unofficial, “grey“ economic activity. This means that a
good many unemployed people are actually working
and acquiring means of subsistence. Involvement in
Table 2.2 Frequency of participation in certain activities (%)
Several
Never
times a year
Spending time with family 1.5 15.5
Spending time with friends 4.2 6.7
Spending time with co-
37.1 16.4
workers outside working hours
Spending time with people in
33.2 29.3
church, mosque, synagogue
Spending time with people
in clubs and volunteer 52.4 15.4
organisations
Source: Caritas and Centre for the Promotion of Catholic Social Teaching (unpublished data)
Karajić, N. (2002). Siromaštvo i neslužbeno gospodarstvo u Hrvatskoj – kvalitativni aspekti, Financijska teorija i praksa, 26(1), 2002, pp. 273-299.
17
UNDP (2001). Human Development Report – Croatia 2001. UNDP. Zagreb, Croatia.
18
20 Poverty, Unemployment and Social Exclusion
the grey economy (along with financial assistance from
other family members and unemployment benefits)
helps many unemployed people avoid poverty and
extreme material want. Nonetheless, some studies
suggest that participation in unofficial economic activi-
ties, while preventing extreme poverty and acting as a
social buffer, actually contributes to increased income
inequalities in society. According to certain estimates,
income from the grey economy represents 6% of the
income structure among the poor, while it makes up
around 20% of the income of those who are not poor17.
2.2 Social networks
Many studies have shown that social relations and
the different forms of social activity among the un-
employed and the poor are conditioned much more
significantly by patterns of family and cultural life
than by changes in employment or material status.
Thus, it is necessary to highlight some specific char-
acteristics of family and social networks in Croatia.
Croatia shares certain features of social life with other
southern European countries, which are characterised
by a strong family tradition and relatively low partici-
pation in formal types of social activity (membership
of various organisations and associations). One study
on active and passive membership in civic associa-
tions indicated that the level of participation in such
organisations decreased during the second half of
the 1990s18. This low level of socio-cultural capital can
certainly have an impact on social interconnection,
the formation of civil associations and social support.
The latest survey by Croatian Caritas and the Centre
for the Promotion of Catholic Social Teaching, carried
out in 2004, confirms this assumption regarding the
greater importance of informal social networks over
formal ones (Table 2.2).
Several times a Every Don’t
Everyday
month week know
29.9 30.4 21.1 1.6
26.0 35.6 25.4 1.9
20.0 12.3 5.8 7.6
13.7 16.9 1.3 5.6
12.7 10.9 1.9 6.6
The Experience in Croatia
Membership and participation in clubs and organisa-
tions is relatively rare. More than half of those ques-
tioned stated that they never associate with other
people in clubs and voluntary organisations. In gen-
eral, people expect support from informal networks
(of relatives, friends and neighbours). Positive expec-
tations with regard to organisations tend to be linked
to certain church organisations.
A qualitative study on poverty19 revealed that, due
to the influence of the media, a false perception of
the poor as people totally excluded from society (e.g.
homeless, beggars, alcoholics) has been created.
However, the majority of poor people in Croatia do
not live in this way.
Many people, whether poor or not, point out that
poverty can lead to social isolation. However, isola-
tion is more a problem of the extremely poor, among
whom we may include certain groups of elderly
people and pensioners who have no relatives to sup-
port them, and who cannot work to supplement their
small pensions. Divorced people or unmarried men
also sometimes face the problem of social isolation.
A study by the World Bank (2000) differentiates three
types of social networks at an individual level: “bonds“
(friends and relatives), “bridges“ (horizontal ties be-
tween communities) and “links“ (vertical connections
with those in power). Poor people rely mainly on
networks of the first type, which ensure day-to-day
assistance between relatives and friends. However, in
this type of network they largely come into contact
with other poor people, thus limiting the support
they can receive in case of need. “Bonds“ are often
structured on a close family basis. The poor have few
“bridges“ to other communities, and poorly built ones
at that, since the low level of “resources“ available to
them does not allow them to participate in reciprocal
exchanges. Such bridges are still rarer and less secure
in a situation characterised by high unemployment.
“Links“ are mainly reserved for those who are not
poor, and who possess the informal channels needed
to access information or profitable jobs.
The density and nature of networks in which the poor
participate differ in urban and rural areas. In rural
environments, social networks are based on broad
ties among relatives and neighbours. In cases of want,
rural inhabitants are traditionally oriented toward the
local community, as a sense of obligation to help poor
or infirm neighbours still exists in rural communities.
Gomart, E. (2000). Social Assessment of Poverty in Croatia. In Croatia Economic Vulnerability and Welfare Study, Volume II: Technical Papers. World Bank. Washington, D.C., USA.
19
Ilišin, V., Radin, F. (ed.) (2002). Mladi uoči trećeg milenija. Institut za društvena istraživanja i Državni zavod za zaštitu obitelji, materinstva i mladeži. Zagreb, Croatia.
20
Given that unemployment in Croatia is a structural and Social isolation is
mass phenomenon, it is not merely a trait of isolated
and marginalised groups, but affects various segments
more a problem of the
of society. Unemployment has an impact on people’s extremely poor, among
self-perception, as well as on the attitudes of others whom we may include
towards them, either in a wider setting or in their close
surroundings. The unemployed do not regard them-
certain groups of elderly
selves as inferior, nor do they consider themselves to people and pensioners
be isolated or stigmatised. Moreover, it is rare for the who have no relatives
unemployed to attract blame from their social envi-
ronment for the situation that they find themselves in.
to support them, and
who cannot work to
2.3 Young people supplement their small
Generally speaking, young people are in a less favour- pensions.
able social and economic position than other age
groups, since they do not possess property (property,
savings, shares) and have more difficulty finding em-
ployment or a place to live. In Croatia there are two
key causes for the exclusion of the young: an unstable
position on the labour market, and dropping out of the
educational system. Following their studies, the major-
ity of young people are forced to wait for either a long
or short period of time for their first job (due to lack
of experience, the rigidity of labour laws, and so on).
Young people’s unfavourable position on the labour
market is also indicated by data according to which the
rate of unemployment among people aged 15 to 24
has, in certain periods, been nearly two and a half times
higher than the general unemployment rate (Figure
2.4), although in more recent times the gap between
youth unemployment and general unemployment
has been narrowing. On the other hand, young people
who have completed their education are increasingly
encountering “flexible“ types of employment (tem-
porary employment, part-time employment, and so
on), which diminish their social standing20. Long-term
unemployment and social passivity often lead to a
“forcibly prolonged“ youth. It is well known that youth
is a period characterised by transitions, and these can
be threatened by unemployment. The success of other
transitions depend on this transition from the world of
education to the world of work.
However, youth unemployment is not necessarily
linked to poverty or social isolation. Children and
young people in Croatia have a below-average relative
poverty risk (Figure 2.5). The reason for this is that a
great many unemployed young people live with their
parents or other family members who bear, or share
with them, essential living costs. Thanks to a high level
of family solidarity and long-term support from par-
ents, the great majority of young people are not left on
their own, and this largely alleviates social risks.
Poverty, Unemployment and Social Exclusion 21
The Experience in Croatia

In general, poverty Figure 2.5 Ratio between youth unemployment (15 – 24 years of age) and the national average in Croatia and
selected European countries (2000)
for young people
means dependency on 3,5
their parents, family 3,0 2,9

problems, alcohol and 2,5

2,5 2,5 2,4 2,4 2,3

drug consumption, and 2,0

2,2 2,1 2,1
1,9 1,9 1,9 1,9 1,9 2,0

delinquency. 1,5
1,7 1,6
1,5 1,4
1,2
1,0

0,5

0,0
ly

Cr a
tia

Bu d
ia

ce

Re n

Hu ic
ry

ia

De n

nd

Ge ia

EU
nd

an
ar
i

ni

de

ai
n

bl
Ita

an

ar

r
ak
Ne ga
iu

do

an

st
la

la
oa

ite ove

Sp

nm
pu

rm
la
lg
lg

ov
m

Au
Po

Ire
n
ng

Fr

Cz Sw

er
Be

Ro

Sl
Sl

Ki

th
h
d

ec
Un

Source: Ilišin, V., Radin, F. (ed.) (2002). Mladi uoči trećeg milenija. Institut za društvena istraživanja i Državni zavod za zaštitu
obitelji, materinstva i mladeži. Zagreb, Croatia, p. 235; UNDP (2003). Human Development Report – Croatia 2002. UNDP. Zagreb,
Croatia, p. 42.

Young people often cite non-material forms of pover-
ty21, such as the monotony of everyday routine, an in-
ability to associate with other young people, the lack
of prospects, and so on. Young people living in rural
areas, in smaller towns, or on islands are more likely to
leave school early due to the narrower range of edu-
cational choices, poorly-organised transportation to
faraway schools and so on. Besides this, employment
opportunities are few, and access to information and
organised programmes and services for young peo-
ple is limited. In general, poverty for young people
means dependency on their parents, family problems,
alcohol and drug consumption, and delinquency.
Nonetheless, thanks to financial and other support
from families, the experience of unemployment does
not always lead to poverty or social isolation.

Box 2.2: No democracy without participation

“The strongest message given by young people was their desire to play an active part in a society in which
they live. If they are excluded, democracy is not being allowed to function properly. They regard the view
that they are disinterested or uncommitted as groundless and unjust. They feel that they are given neither
the resources nor the information and training that would enable them to play a more active role“22.
A similar message appeared in the 2004 National Human Development Report (NHDR) – Youth in Croatia,
which was evaluated as a positive example in the global report titled Youth and Millennium Development
Goals (issued in April 2005). This report was supported by the UN Programme on Youth23.

The risk of poverty is especially great among young
people who do not take part in regular education,
have no qualifications, do not attend professional
training, and are unemployed. This segment is often
referred to as “status zero youth“. Unfortunately, we
still do not have precise information regarding the
number of such young people, as not enough atten-
tion has been paid thus far to the problem of early de-
parture from the educational system. Estimates sug-
gest that between 10% and 20% of those enrolled in
secondary schools (depending on the type of school)
do not complete their education24. It is known that
lack of school success considerably reduces these pu-
pils’ chances of gaining employment and establishing

Gomart, E. (2000). Social Assessment of Poverty in Croatia. In Croatia Economic Vulnerability and Welfare Study, Volume II: Technical Papers. World Bank. Washington, D.C., USA.
21

European Commission (2001). White Paper: A New Impetus for European Youth.
22

UN DESA (Department of Economic and Social Affairs).

23

Vlada Republike Hrvatske / Government of the Republic of Croatia (2002). Program borbe protiv siromaštva i socijalne isključenosti / The National Strategy for Integrated Policy for Persons with Disabilities from
24

2003 to 2006. Zagreb, Croatia.

22 Poverty, Unemployment and Social Exclusion

The Experience in Croatia

a secure place in society. Early departure from school
is linked to subsequent poverty in adulthood. Such
individuals are more likely to be unemployed, more
frequently become dependent on welfare assistance,
and have a greater likelihood of becoming unmarried
parents or of engaging in unlawful conduct.
Likewise, young people with disabilities and those
without family support find themselves at risk25.
Young people with disabilities face numerous limita-
tions and obstacles to becoming independent and
actively involved in the community. Besides those
imposed on them by their illness or disability, obsta-
cles also exist in the form of prejudices, ignorance,
outdated models of care, and inappropriate family
attitudes. The numerous physical barriers hindering
access to and participation in various social activities
should also be mentioned.
exclusion, since they help young people to maintain According to the Faces
important social ties and prevent isolation.
of Poverty, Faces of Hope
2.4 The Roma Report, the poverty rate
of the Roma in Croatia
Minority groups encounter the risks of social exclu-
sion more frequently. This applies to minority ethnic
is two and a half times
groups, among whom the Roma represent the most higher than that of the
markedly marginalised population. Although Croatia, non-Roma living in their
when compared to other countries, does not have proximity.
a large Roma community, its members experience
exclusion in almost every area of social life. According
to the 2001 census, there are fewer than 10,000 Roma
in Croatia, while estimates from the Council of Europe
suggest a number three to four times larger. It is char-
acteristic of the Roma to conceal their national iden-
tity (national mimicry) as a legacy of the persecution,
discrimination, segregation and exclusion that the
Roma have been subject to for centuries.

The marginalisation of young people can also be
linked to certain subculture groups to which they may
belong26. Subcultures can sometimes be an obstacle
to young people’s integration into the labour market
or society, due to their hostile attitudes towards paid
work, or because of other kinds of deviant behav-
iour. On the other hand, however, subcultures of
unemployed people can provide a way of avoiding
In every society in which they live, the Roma are
unquestionably the group with the highest poverty
risk. Roma poverty rates can sometimes be 10 times
higher than those of non-Roma. According to the
Faces of Poverty, Faces of Hope Report27, the poverty
rate of the Roma in Croatia is two and a half times
higher than that of the non-Roma living in proximity
to them (Figure 2.6).

Figure 2.6 Poverty rates for Roma and non-Roma (2004)

(income-based international poverty line of $4.3 per person per day in PPP – purchasing power parity)

% Non-Roma (majority population in close proximity to Roma) Roma

90

80 79

70 69
61
60
51 52
50
42
40
40

30
25 22
20
13 14
11
10 9 8 6 10
5 5
0
tia

ia

bl h

vo

ia

ro

ia

ia
ar
pu ec

on

an

rb
ar

eg
so
oa

ic

ng
Re Cz
lg

Se
m
ed

n
Ko
Cr

Bu

Hu

te

Ro
ac

on
M

Source: Faces of Poverty, Faces of Hope, http://vulnerability.undp.sk

Državni zavod za zaštitu obitelji, materinstva i mladeži / State Institute for the Protection of the Family, Maternity and Youth (2003). Nacionalni program djelovanja za mlade / The National Programme of
25

Action for Youth, Zagreb, Croatia.

UNDP (2004). Human Development Report – Croatia 2004. UNDP. Zagreb, Croatia.
26

UNDP, Regional Bureau for Europe and Commonwealth of Independent States (2005). Faces of Poverty, Faces of Hope. UNDP. Bratislava, Slovak Republic. http://vulnerability.undp.sk. The Report provides
27

vulnerability profiles of the Roma population in the Decade of Roma Inclusion countries (Bulgaria, Croatia, Czech Republic, Hungary, Macedonia, Romania and Serbia and Montenegro).

Poverty, Unemployment and Social Exclusion 23

The Experience in Croatia
For the Roma, being Poverty among the Roma often assumes extreme
forms. As many as one quarter of Roma have no elec-
poor does not just mean tricity, while such households represent around 2%
having no money; it among poor people in general 28. Nearly half of all Roma
also means having a households have no washing machine, something that
disadvantaged position is considered part of the minimum acceptable standard
of living in Croatia. Compared to poor people in gener-
in the labour market and al, the Roma have a considerably higher level of depri-
education, inappropriate vation in terms of all elements of the standard of living.
housing conditions, a For the Roma, being poor does not just mean having
no money; it also means having a disadvantaged posi-
poorer state of health
tion in the labour market and education, inappropri-
and a shorter life span, ate housing conditions, a poorer state of health and a
not to mention a long shorter life span, not to mention a long history of prob-
history of problematic lematic relations with the majority population.
relations with the The Roma have traditionally been perceived through
majority population. various stereotypes, and are one of the few groups
who are most often blamed for their own poverty.
The Roma have been characterised as “undeserving
poor“ - people who are lazy, avoid work, reproduce
uncontrollably, are irresponsible and immature, reject
modern values, live off state assistance, and so on.
The Roma tend to withdraw from formal education,
most often before the end of mandatory primary
schooling. This is because of an insufficient level of
socialisation and social inclusion among Roma chil-
dren before they start school (which is made even
more difficult in the County of Međimurje because of
the language barrier there), as well as because of the
inability of the educational system to overcome these
initial barriers and to provide an adequate quality of
education. As a consequence of this marginalisation
and low educational achievement, the Roma are for
the most part now excluded from formal types of
employment. In some Roma settlements, the unem-
ployment rate is as high as 100%. Studies also point
to an ongoing decline in formal employment among
the Roma since 199829. The absence of formal employ-
ment precludes people from gaining the social status
that derives primarily from formal paid work, as well
as excluding them from the social security system.
Many traditional Roma trades vanished during the
last century, or were severely weakened due to indus-
trialisation (e.g. metalworking and woodworking). A
considerable proportion of Roma economic activities
take place in the grey economy. The fact that the pro-
portion of Roma among welfare assistance recipients
is disproportionate to their proportion of the overall
population is the subject of constant public attention.
Šućur, Z. (2005). Siromaštvo kao sastavnica sociokulturnog identiteta Roma (in press).
28
Ibid.
29
The Roma in Croatia abandoned the nomadic way of life in the 1960s.
30
24 Poverty, Unemployment and Social Exclusion
This is often interpreted as indicative of a dependency
mentality and a shameless abuse of State resources.
It is a fact that access to social policy measures (such
as welfare) is not conditional on people’s participation
in programmes of education or vocational training,
or on the schooling of their children. The prevailing
view is that, although people in general are ashamed
to be poor and to receive welfare assistance, this does
not apply to the Roma, who are always ready to claim
state assistance. Such accusations against the Roma
occur in a context where a large part of the popula-
tion perceives itself as poor, and where the “victims“
are competing for meagre state funds (competitive
victimisation).
Besides poverty and unemployment, the Roma also
face physical, cultural and political marginalisation.
Roma communities are separate and physically isolat-
ed. Contact between Roma and non-Roma communi-
ties is very poor. Roma who live in remote, segregated
communities have considerably fewer opportunities
to take part in the formal economy or to make use of
social services (education, health care). Social isolation
implies limited opportunities with regard to ecologi-
cal living conditions, access to jobs and information
regarding the labour market, a choice of suitable mar-
riage partners, access to high-quality education, and
acceptance of conventional social role models.
Some Roma settlements lack a basic infrastructure,
and a great many Roma live in dwellings that fall
below all housing standards. Some Roma have no
citizenship and are poorly informed about how to ac-
quire it, as well as about where to appeal against deci-
sions that are issued. It is characteristic of the Roma
that they are excluded from the institutions of society
at large. Participation in institutions provides the basis
for acquiring social status and securing the material
conditions of life. According to the Faces of Poverty,
Faces of Hope Report, 22 Roma councillors and four
other Roma representatives were elected in the last
election for councils, cities and municipalities. Only
one Roma is a member of the Council for National
Minorities (Savjet za nacionalne manjine) at State level.
Inclusion in the institutions of society at large enables
interaction with members of other Roma and non-
Roma groups and inclusion in mainstream society.
Certain elements of the Roma way of life and culture,
such as begging, the nomadic way of life30 and early
marriage, also contribute to the social exclusion of the
Roma.
The Experience in Croatia
As in other countries, the Roma in Croatia are ever
more frequently described as an “underclass“, that is,
a socially isolated group with very few prospects of
finding its place in the new distribution of labour or of
securing “normal“ jobs, income, housing, social secu-
rity, or access to better education for their children.
Poverty in Croatia is concentrated in Roma communi-
ties, which are drastically dependent on State benefits
(culture of dependency) and which contain a large
proportion of those who are excluded from the la-
bour force and who tend to abandon the educational
process.
2.5 Conclusion
The term “social exclusion“ has been used in political
and scientific discourse in Croatia for 10 years now.
This concept is considered to refer to a situation in
which individuals’ social ties are reduced or weakened
and they lose the role they formerly played in the
functioning of society. Social exclusion is most fre-
quently linked to the problem of high unemployment
and a lack of job security. Besides unemployment,
exclusion in the Croatian context is also connected
with poverty and discrimination. In periods of transi-
tion, people face uncertainty and, lacking the rational
experience on which to base their decisions, are often
unable make accurate predictions about the future.
An exclusion-based approach is most often utilised
when describing the social position of such groups as
the unemployed, the poor, the Roma and young peo-
ple, as well as some categories of elderly people.
Some evidence indicates a connection between
people’s position in the labour market and poverty.
The poorest citizens are economically inactive, un-
employed, or receive low wages. While not the most
numerous group among the poor, the unemployed
have a high risk of poverty. Given the strong Croatian
tradition of the family, which supports its unem-
ployed, those who are out of work do not necessarily
fall immediately into poverty and social isolation31.
The unemployed do not tend to attract blame for the
situation in which they find themselves from their
social environment. This absence of a negative atti-
tude probably has an effect on the self-perception of
the unemployed who, at least in the beginning, rarely
consider themselves as inferior32.
Šverko, B., Galešić, M., Maslić-Seršić, D. (2004). Aktivnosti i financijsko stanje nezaposlenih u Hrvatskoj. Ima li osnove za tezu o socijalnoj isključenosti dugotrajno nezaposlenih osoba? Revija za socijalnu
31
politiku, 11(3-4), 2004, pp. 283-298.
However, the latest results of a longitudinal study, presented in Chapter 3.2, indicate that long-term unemployment leads to poverty and social isolation.
32
It is characteristic of the unemployed and of Croatia’s EU candidate countries
inhabitants in general that their participation in for-
mal types of social activity (membership in various
must prepare, in
organisations and associations) is low, with a prefer- cooperation with the
ence for informal social networks. In the case of poor European Commission,
people, the latter are mainly restricted to close family a Joint Inclusion
ties.
Memorandum (JIM)
Poverty is an important component of social exclu- prior to their accession,
sion in Croatia. The general view is that not enough which will also be a
has been done so far in terms of alleviating and Croatian obligation
preventing poverty. The Government of the Republic
of Croatia approved its first national Programme for before joining the
Combating Poverty and Social Exclusion in 2002. For Union.
the purpose of monitoring the implementation of
these measures, a tripartite commission made up of
trade union representatives, government officials and
employers was formed. Its task was to report to the
Government at least once a year on the results of the
implementation of the programme and to propose
possible additions and amendments. The commis-
sion’s annual reports were to contain information
on the implementation of various activities within
the competence of ministries and other institutions.
Thus far, no such report has been produced, although
preparations for one began towards the end of the
previous Government’s term of office. It is therefore
necessary to re-examine and supplement the current
programme, and to propose more effective mecha-
nisms for implementing and monitoring it. This point
is important given the fact that all EU Member States
are required to produce a National Action Plan against
Poverty and Social Exclusion every two years, which
applies to new Member States upon their accession.
EU candidate countries must prepare, in cooperation
with the European Commission, a Joint Inclusion
Memorandum (JIM) prior to their accession, which will
also be a Croatian obligation before joining the Union.
Poverty, Unemployment and Social Exclusion 25
Chapter 3:
Investigating Social Exclusion

Social exclusion should 3.1 Empirical analysis of social
exclusion
be understood as the
relatively permanent, What do we mean when we talk about social exclu-
multiply conditioned sion? Is it just a new and fashionable name for a famil-
and multidimensional iar subject, a repackaging of the theory of poverty?
Or is it, in fact, an original way of understanding social
state of deprivation of inequalities that offers new opportunities for their
an individual. alleviation? In this chapter we will empirically test the
basic hypotheses of social exclusion and its applicabil-
ity in a Croatian context. First, we will examine a pos-
sible methodologically persuasive and theoretically
viable measurement of social exclusion. By construct-
ing valid research tools, we will endeavour to contrib-
ute to the debate on the usefulness of the concept of
social exclusion. We will then analyse factors of social
exclusion based on a nationally representative survey,
whereby we hope to assist in tackling social inequali-
ties on a practical level, here and now. In the light of
findings indicating a sudden large increase in social
inequalities in all transition countries33, we consider
this practical goal to be of exceptional importance.
Social exclusion should be understood as the rela-
tively permanent, multiply conditioned and multidimen-
sional state of deprivation of an individual. What does
this mean? First, that the excluded do not participate
in the distribution of social assets, which we define
as a combination of institutional resources (access
to education, health and social services), cultural re-
sources (formation of identity, consumption of cultur-
al products), socio-economic resources (employment,
purchasing power) and interpersonal resources (ex-
change of emotions). Second, that such non-partici-
pation is not temporary, but tends to be permanent in
nature (a way out of this unfavourable situation is not
easily available). And third, that non-participation in
the distribution of social assets is not necessarily a con-
sequence of excluded people’s personal defects, of
their indolence, incapability, or other flaws. Exclusion
is most often the result of structural factors or, more
precisely, institutionalised inequalities, e.g. unequal
educational opportunities.
The final characteristic of social exclusion, its multidi-
mensionality34, sees the excluded as people affected
by multiple “life misfortunes“: for instance, when a
person who loses his job also loses an entire network
of friends and acquaintances. This loss of emotional
support and an (informal) source of information
about opportunities for re-employment, along with
ever greater financial limitations, reduces the prob-
ability of finding a way out of this situation more than
the job loss itself.
In our judgment, this is the basic difference between
social exclusion and earlier concepts of social inequal-
ity. Although some theories of the “new poverty“ also
incorporate the idea of multiple deprivation35, the
concept of social exclusion gives it a central place. In
this regard, our approach to measuring social exclu-
sion is based on the assumption of interconnection
between three areas of deprivation: employment
deprivation (unemployment and non-participation in
the labour market), economic deprivation (poverty)
and socio-cultural deprivation (social isolation). The
reason for choosing these three areas is easy to see.
Each is viewed, both in academic literature36 and in
everyday life, as a dramatic occurrence (after which
“nothing is the same any more“), and often even as a
personal tragedy37.
In this chapter we examine social exclusion as the
intersection of these areas of deprivation (see Figure
3.1). More precisely, we regard a person as excluded
when he experiences all three areas simultaneously,
that is, when he is simultaneously poor, socially
isolated and without a job. Although each of these
conditions makes life significantly more difficult in
and of itself, resulting in the economic, employment
or socio-cultural deprivation of the individual, their
combination deepens the impact and makes it more
difficult to find a way out, increasing the risk of sink-
ing into complete social exclusion.

Bićanić, I., Franičević V. (2005). Izazovi stvarnoga i subjektivnog siromaštva i porasta nejednakosti u ekonomijama jugoistočne Europe u tranziciji. Financijska teorija i praksa, 29(1), 2005, pp. 13-36.
33

Barnes, M., Heady, C., Middleton, S., Millar, J., Papadopulos, F., Room, G., Tsakloglou, P. (2002). Poverty and Social Exclusion in Europe. Edward Elgar. Cheltenham, United Kingdom; Northampton, USA.
34

Šućur, Z. (2001). Siromaštvo: teorije, koncepti i pokazatelji. Pravni fakultet. Zagreb, Croatia; Kronauer, M. (1998). “Social Exclusion“ and “Underclass“ – New Concepts for the Analysis of Poverty. In H. Andress
35

(ed.) Empirical Poverty Research in Comparative Perspective. Ashgate. Aldershot, United Kingdom, pp. 51-73.
Precisely, in analysing a large-scale European longitudinal study (the European Community Household Panel Survey), Gallie et al (2003) made use of unemployment, poverty and social isolation as the
36

basic indicators of exclusion (Gallie, D., Paugam, S., S. Jacobs (2003.) Unemployment, Poverty, and Social Isolation. Is There a Vicious Circle of Social Exclusion? European Societies, Vol. 5, No. 1, 2003, p.
1-31.).
This is particularly true of the consequences of high levels of unemployment in the post-communist transition countries (Bićanić, I., Franičević V. (2005.) Izazovi stvarnoga i subjektivnog siromaštva i
37

porasta nejednakosti u ekonomijama jugoistočne Europe u tranziciji. Financijska teorija i praksa, God. 29, br. 1, 2005., str. 13-36.).

26 Poverty, Unemployment and Social Exclusion

Investigating Social Exclusion

Figure 3.1 Dimensions (areas) of deprivation andsocial exclusion In short, the three key
areas of deprivation –
unemployment, poverty
and isolation – generate
Poverty Social and reproduce one
isolation another and thus social
Social exclusion as well.
exclusion

Separation from
labour market

This link between the dimensions of deprivation
responsible for social exclusion stems from the
interpenetration of economic, social and cultural
resources that we make use of each day. Let us begin
with employment deprivation, that is, unemploy-
ment. It directly increases the risk of poverty38, and
also often has a negative impact on the social life of
people affected by it. This impact is sometimes direct,
e.g. losing contact with friends or acquaintances in
one’s profession, and at other times indirect, due to
the financial difficulties39 and negative state of mind
(even depression) which accompany the loss of pro-
fessional identity and diminished status40. Poverty, in
turn, reduces the likelihood of employment, mainly
due to the limited resources (material, cultural and
interpersonal) which the poor possess41, and quite
often deepens social isolation, especially in larger
urban settings42. As already indicated, social isolation
can be a great obstacle to employment and escaping
from the cycle of poverty43. The reasons for this may
be multiple, from a lack of information (especially via
informal channels) and access to a network of con-
tacts and acquaintances, to the inability to borrow
the funds needed to become self-employed, or to
obtain good references. In short, the three key areas
of deprivation – unemployment, poverty and isola-
tion – generate and reproduce one another, and thus
social exclusion as well.
3.1.1 Areas of deprivation and the extent of
social exclusion
In December 2003, as part of the South-East European
Social Survey Program, an international research project,
we conducted a survey44 on a sample of 2,500 inhabit-
ants of the Republic of Croatia aged 20 and over45. As
anticipated, the three risk factors of social exclusion
(economic, employment and socio-cultural depriva-
tion) were not equally represented in our sample. Let
us begin with respondents who are neither economi-
cally nor employment deprived; that is, with women
and men who are, to a greater or lesser degree, includ-
ed in society. These make up the largest group in the
sample, representing 61% (n = 296) of the total number
of cases analysed (see Figure 3.2). Employment-de-
prived respondents represent 34% of the sample (n =
165), with 15% unemployed (n = 71), and 19% (n = 94)
outside the labour market (housewives and people not
seeking work). The economically deprived group, that
is, the poor, represent 19% (n = 94) of respondents46.

38
Šverko, B., Galešić, M., Maslić-Seršić, D. (2004). Aktivnosti i financijsko stanje nezaposlenih u Hrvatskoj. Ima li osnove za tezu o socijalnoj isključenosti dugotrajno nezaposlenih osoba? Revija za socijalnu politiku,
11(3-4), 2004, pp. 283-298; Gallie, D., Paugam, S., S. Jacobs (2003). Unemployment, Poverty, and Social Isolation. Is There a Vicious Circle of Social Exclusion? European Societies, Vol. 5, No. 1, 2003, pp. 1-31.
39
The usual annual skiing trip, summer holiday with friends, or meals together in restaurants once a week or month, which strengthen social ties in an almost ritual fashion, may become impossible in the
more difficult financial circumstances following loss of a job.
40
Gallie, D. (1999). Unemployment and Social Exclusion in the European Union. European Societies, Vol. 1, No. 2, 1998, pp. 139-168.
41
Poorer people often do not possess the cultural capital necessary to, for example, write a CV, not to mention the financial resources needed to persuasively demonstrate their professional skills at an
interview with a potential employer.
42
White, M. (1991). Against Unemployment. Policy Studies Institute. London, United Kingdom.
43
Barbieri, P., Paugam, S., Russel H. (2000). Social capital and exits from Unemployment. In Gallie D., Paugam, S. (ed.): Welfare Regimes and the Experience of Unemployment in Europe. Oxford University Press.
Oxford, United Kingdom, pp. 200-217.
44
For methodological explanations see Appendix 1 - Methodological explanations for Chapter 3.
45
The research was financed by the Research Council of Norway.
46
Using the same criterion, a survey on household consumption for the year 2003 established a poverty risk level of 18.9% (CBS, 2004).

Poverty, Unemployment and Social Exclusion 27

Investigating Social Exclusion

Women and inhabitants What about respondents who, according to our defi-
nition, are socially excluded? This group makes up
of rural areas are 10% (n = 47) of the sample. In other words, every tenth
disproportionately employable respondent displays the basic characteristics
represented among the of social exclusion. The share of the excluded among
socially excluded. the employable population is somewhat larger than
the share of the Croatian population recently esti-
mated to be below the absolute poverty line (8.4% in
199847)48. This is not unexpected, given the multidi-
mensional nature of social exclusion: those who are
not explicitly poor, but are deprived in the other two
areas, are also included among the socially excluded.

Figure 3.2 Extent of economic and employment deprivation, vulnerability and social eclusion

Poor and non-net- Included by all

worked (2.1%) criteria (34%)

Poor (2.9%)

Non-networked
Poor and not Excluded (27%)
working (9.7%)
(4.7%)

Not working
(6%)

Not working and

non-networked (13.4%)

As the theoretical model of social exclusion predicts,
and Figure 3.2 clearly illustrates, the three areas of
deprivation are interconnected. The strongest link is,
as expected, between poverty and unemployment/
economic inactivity (Phi = 0.42; p < 0.001)49. In order
to additionally verify the validity of the concept of
social exclusion, the next step is to examine the differ-
ences in the level of prosperity among the socially in-
cluded, the (economically or employment) deprived,
and the socially excluded.
3.1.2 How excluded are the excluded?
To what degree are the socially excluded in a more
difficult position than respondents who are not ex-
cluded? If the idea of social exclusion is valid, socially
excluded people should experience a greater number
of severe social adversities not only than the socially
included, but also than respondents who are only
economically or employment deprived. Graph 3.1
presents the results of such quality of life comparisons
among five groups of respondents: the included, the
economically and employment deprived, the exclud-
ed, and pensioners. We used general satisfaction with
life and self-assessment of health and social status as
indicators of quality of life.

Šućur, Z. (2001). Siromaštvo: teorije, koncepti i pokazatelji. Faculty of Law. Zagreb, Croatia.
47

The research on which this figure is based did not include the largely devastated and underdeveloped regions of Dalmatinska Zagora and eastern Slavonia. If these regions are included, it is estimated
48

that the share of the population living below the absolute poverty line would increase to around 10%.
The unemployed are more frequently non-networked than the employed (phi = 0.23; p < 0.001), whereas this is not true of the poor, who are not significantly less networked than those who are not
49

poor (p = 0.09). Other research has also pointed out the poorly articulated relationship between indicators of social isolation and other dimensions of exclusion (Gallie, D., Paugam, S., S. Jacobs (2003).
Unemployment, Poverty, and Social Isolation. Is There a Vicious Circle of Social Exclusion? European Societies, Vol. 5, No. 1, 2003, pp. 1-31; Heady, C., Room G. (2002). Patterns of Social Exclusion: Implications
for Policy and Research. In Barnes M. et al.: Poverty and Social Exclusion in Europe. Edward Elgar. Cheltenham, United Kingdom, pp. 146-154).

28 Poverty, Unemployment and Social Exclusion

Investigating Social Exclusion

Graph 3.1 Average values for the included, the deprived, the socially excluded and pensioners50 according to The likelihood of
self-assessment of basic quality of life indicators51. Values standardised on the scale 1 (lowest assessment) to 10 social exclusion was
(highest assessment).
2.24 times higher for
Included Not working Poor Excluded Retired respondents living in
8
rural communities.
7

6
5

0
Satisfaction Social status Health

ily support are at risk of social exclusion 52.53 In short,

The results confirm the assumption that the socially
excluded are those on the bottom rung of society. In
our sample, this group was the one to record the low-
est quality of life, that is, the most unfavourable social
position. The excluded, along with the poor, expressed
the least satisfaction. Moreover, the excluded displayed
the lowest self-assessment of social status and the most
precarious state of health. They were followed by the
poor, who exhibited a somewhat higher quality of life
rating, and the employment deprived. As expected,
even this group clearly lagged behind the socially in-
cluded. It is interesting to note that, in terms of quality
of life, the results recorded by pensioners were quite
close to the unemployed and the economically inac-
tive. While pensioners are indeed a vulnerable social
group, they are not among the social classes most
at risk, at least not as a group. This conclusion is con-
firmed by the recently published preliminary results
of a study on poverty for the year 2004, undertaken
by the Centre for the Promotion of Catholic Social
Teaching (Zagreb) and Croatian Caritas. According to
their research, only elderly people who do not receive
pensions and pensioners who live alone without fam-
although the comparison presented here does not
offer definitive proof, it systematically supports the
proposed model of social exclusion. As a group, the
socially excluded54 report the lowest level of quality
of life. The poor are the closest group to the socially
excluded in that they are affected to a similar degree,
and we will focus on both groups in future analyses.
3.1.3 Who are the socially excluded, and
where do they live?
What are the basic socio-demographic character-
istics of the socially excluded? What are the factors
which increase the likelihood of belonging to this
social group? In order to answer these questions, we
compared the included, the poor and the excluded
in terms of the following characteristics: age, gender,
size of settlement, type of household (single- or multi-
person) and education. As shown in Table 3.1, women
and inhabitants of rural areas are disproportionately
represented among the socially excluded55. Socially
excluded people are on average five years older than
socially included people.

50
Pensioners have been left out of the comparison of the state of health due to their considerably higher age (which means their poorer state of health is not necessarily a consequence of poorer social status).
51
Higher values indicate greater quality of life. The level of subjective satisfaction with life was ascertained by means of the following question: “Taking everything into account, how happy would you say
you are?“ A 10-item scale was used for recording answers. Perceptions of respondents’ own social status were measured using the following question: “In our society there are groups which, according to
their characteristics, belong to the upper level of society, and others whose characteristics pertain to the lower levels. Here you see a scale going from top to bottom. Where would you put yourself on this
scale?“ The scale ranged from 1 to 10, with 1 designating the bottom and 10 the top of society. Evaluations of state of health were based on the following question: “In general, how good is your health?“
52
Centre for the Promotion of Catholic Social Teaching (Zagreb) and Croatian Caritas / Centar za promicanje socijalnog nauka Crkve i Hrvatski Caritas (2005). Konferencija za tisak projekta “Praćenje
siromaštva u Hrvatskoj“, Tuesday 11 January.
53
The same conclusion is suggested by our data, according to which the poverty rate among non-networked pensioners is nearly twice as high (23%) as that for pensioners who are members of civic as-
sociations (12%).
54
By using the linear regression model, we analysed the contribution of individual dimensions of deprivation to the level of wellbeing. Poverty was in all cases, and lack of work was in most, a statistically
significant indicator while being non-networked and the interaction among dimensions did not have, as a rule, an impact on the level of wellbeing. Thus, even according to the regression model, people
who were defined as excluded have the lowest level of wellbeing. However, we did not establish the influence of all dimensions (especially being non-networked) on either the level of wellbeing nor the
particular difficulty of the state deriving from all three aspects.
55
Exclusion and poverty are characteristic of single people in the “third age of life“. Thus, according to the 2003 survey on household consumption, single males over 65 were exposed to a poverty risk twice
as high (no less than 44.9%) than that for single males under 65 (CBS, 2004). As a rule, younger employed single males have a high level of income and a relatively low level of expenditure.

Poverty, Unemployment and Social Exclusion 29

Investigating Social Exclusion

As regards education, Table 3.1 Socio-demographic characteristics of the socially included, the poor and the excluded
the risk of social
exclusion decreased by Included Poor Excluded
85% if the respondent Average age 39.6 43.2 44.1
had completed Women 38.0 57.3 68.1
secondary school, and Gender (%)
Men 62.0 42.7 31.9
virtually disappeared Type of household (%)
Single-person 11.4 7.4 6.4
Multi-person 88.6 92.6 93.6
if he had a college or Under 2,000 inhabitants 39.4 62.0 70.2
Size of settlement (%)
university education. Over 2,000 inhabitants 60.6 38.0 29.8

As we see the educational process as a fundamental
mechanism of social inclusion/exclusion56, we have in-
cluded a separate analysis of the educational structure
of the socially included, the poor and the excluded.
The results of this analysis unequivocally confirm the
importance of education (Graph 3.2). Nearly 80% of the
excluded have only primary (or incomplete primary)
education, while this percentage is somewhat lower
among the poor (around 60%). In contrast, the percent-
age of poorly educated people among the included
is quite small (less than 15%). Respondents who have
completed higher education represent 30% of the
socially included. There are virtually no people with
higher education among the excluded and the poor.

Graph 3.2 Educational structure of the socially included, the poor and the excluded

College or university Secondary school Primary school or less

100%

90%

80%
70%

60%

50%

40%

30%

20%

10%

0%
Included Poor Excluded

Education clearly has a strong influence on the risk
of social exclusion. But how strong is this influence in
relation to gender, age, size of household and place
of residence? In order to answer this question, we
made use of a statistical analysis that examined the
individual contribution of each characteristic, while
taking their mutual influence into account57. Of the
five characteristics, only living in a small rural settle-
Through the acceptance of common values, a precondition for the socio-cultural dimension of inclusion, and the development of human capital, a precondition for economic and employment inclusion.
56
ment58 (p < 0.05) and education (p < 0.001) proved
to be statistically significant risk factors for becoming
excluded. More precisely, the likelihood of social ex-
clusion was 2.24 times higher for respondents living
in rural communities. As regards education, the risk of
social exclusion decreased by 85% if the respondent
had completed secondary school, and virtually disap-
peared if he had a college or university education59.

This is a case of logical regression, where the characteristics are independent variables, and social exclusion a dependent variable.
57

With a size of up to 2,000 inhabitants.

58

The same risk factors, with a somewhat lower coefficient, appear when we observe the poor, which means that socially excluded and the poor are two very similar groups by socio-demographic structure.
59

30 Poverty, Unemployment and Social Exclusion

Investigating Social Exclusion

To summarise, profiling of the excluded in Croatia
points to individuals with a low level of education,
who are particularly at risk of exclusion if living in
small rural communities. Women are disproportion-
ately represented among the excluded. This stems
from the fact that a large number of women, primarily
those born before 197060, have only completed pri-
mary school. As there is no demand for them on the
labour market, they are consigned to the vulnerable
role of housewife. All of this indicates the importance
of universal education which is equally accessible to
all as a basic instrument for eliminating social exclu-
sion61. Finally, we were interested in the regional
distribution of the excluded. Bearing in mind the
pronounced differences among Croatia’s regions in
terms of their degree of development62, we assumed
that there would be considerable regional deviations
from the national average in terms of the percentage
of excluded inhabitants. Even though the regional
sample was small (from132 respondents in Zagreb Social exclusion is most
and the surrounding area to 32 in Primorje, Istria,
prevalent in Slavonia
and Gorski Kotar), and the results should be taken
as crude approximations, the findings presented in and markedly exceeds
Table 3.2 confirm this expectation. Social exclusion is the national average,
most prevalent in Slavonia and markedly exceeds the while the highest
national average. The reasons for this are not only to
degree of inclusion is
be found in the region’s relatively large share of rural
(poorly educated) inhabitants, but also in the living
found in the Zagreb
area, Primorje and Istria
conditions specific to eastern areas, which have only
been economically reintegrated to a small extent63, where the proportion of
an indirect consequence of massive ravages of war in excluded is negligible.
that part of the country. Exclusion in northern Croatia
and the Lika, Banovina and Dalmatia regions is close
to the national average, while it is below average in
the remaining three regions. The highest degree of in-
clusion is found in the Zagreb area, Primorje and Istria
where the proportion of excluded is negligible.

Table 3.2 Regional distribution of social exclusion (the range of estimate is for 95% probability when a sam-
pling error of 5% is taken into account).

Region Share of the excluded (%)

Slavonia (14.1-30.7)
Northern Croatia (5.9-20.3)
Lika and Banovina (3.7-20.5)
Dalmatia (0.9-10.7)
Zagreb and vicinity (0-3.8)
Hrvatsko Primorje, Istria, Gorski Kotar (0)
Croatia (7.1-12.3)

3.1.4 Conclusion This emphasis on relationship (between the individual

Social exclusion is a relatively new concept in the
social sciences, one which, in contrast to the standard
interpretation of poverty, focuses on the unfavour-
able relationship of the individual with the social
environment rather than his condition. In other words,
social exclusion refers to non-participation in social
activities, the absence of social ties and power, and a
process of marginalisation and deprivation64. In view
of the various forms of deprivation we have men-
tioned in previous sections, this necessarily involves a
multidimensional concept which assumes that areas
of deprivation are interconnected in a “spiral effect“.
and the social environment) and multidimensionality
results in a dynamic approach to analysing the factors
which give rise to exclusion, or which enable or facili-
tate inclusion.
In line with this concept, we have presented here the
results of an empirical pilot analysis of social exclusion
in Croatia. Our aim was to verify the current situa-
tion, that is, the extent and regional distribution of
social exclusion, as well as the socio-demographic
characteristics of the excluded. To be sure, the size of
the sample used and the fact that we were investigat-

Central Bureau of Statistics / Državni zavod za statistiku (2003). Stanovništvo staro 15 i više godina prema starosti, spolu i razini završene škole, po gradovima/općinama. Popis stanovništva 2001. Državni
60

zavod za statistiku. Zagreb, Croatia.

Among younger generations, both genders are equally represented among the (ever smaller) number of people who only have primary education. Gender inequality is therefore no longer being
61

(re)produced by the educational system, but its consequences will be felt in the social structure for another thirty years, until such time as people born before 1970 have left the labour force.
Bajo, A. and M. Pitarević (2004). Fiskalna decentralizacija u Hrvatskoj, problemi fiskalnog izravnanja. Financijska teorija i praksa, 28(4), 2004, pp. 445-469.
62

By adding regions to the given model of logistic regression as an additional indicator, it was observed that simply living in Slavonia contributes to the risk of poverty – even when respondents’ personal
63

socio-demographic characteristics are taken into account. This points to the fact that the unfavourable structure of the population is not the only reason, but that a specific regional cause for higher social
exclusion also exists.
Barnes, M., Heady, C., Middleton, S., Millar, J., Papadopulos, F., Room, G., Tsakloglou, P. (2002). Poverty and Social Exclusion in Europe. Edward Elgar. Cheltenham, United Kingdom; Northampton, USA.
64

Poverty, Unemployment and Social Exclusion 31

Investigating Social Exclusion

A successful policy ing the situation at a given moment, and not over an
extended period, limit the validity of our evaluations
of inclusion has two and make a dynamic analysis impossible. Bearing in
pillars: weakening mind these and the other methodological limitations
the mechanisms of previously mentioned, our findings indicate that a
economic, employment large number of Croatia’s citizens may be regarded
and socio-cultural
as socially excluded or at high risk of exclusion. Every
tenth person in our sample is poor, does not have
deprivation, and access to networks (is “non-networked“) and unem-
reducing the risk that ployed and so is a member of the group which we
have defined as socially excluded. If we add the 5%
the children of the
of people who experience deprivation in two areas
socially excluded will – namely, those who are poor and unemployed – we
end up being excluded may conclude that 15% of Croatia’s population (every
themselves. seventh respondent) is excluded or at risk of exclu-
sion. As a group, the socially excluded are dominated
by people aged 40 and over who have a low level of
education (more often women than men) and reside
in smaller settlements.
This figure indicating that up to 15% of the popula-
tion is at high risk of social exclusion urgently calls for
appropriate measures to be taken. If we consider the
problem systematically, such measures should lead to
a reduction in numbers of excluded by working on the
mechanisms that create social exclusion. From a realis-
tic point of view, the creation and implementation of
measures tackling social exclusion (a “policy of inclu-
sion“)65 will perhaps not be able to help the majority
of those who are excluded today. However, we insist
that this cannot be the sole criterion for assessing
their effectiveness. A policy of inclusion must also be
evaluated by means of dynamic criteria, namely, its
effect on the reproduction of social exclusion. Stated
more simply, a successful policy of inclusion has two
pillars: weakening the mechanisms of (economic,
employment and socio-cultural) deprivation, and
reducing the risk that the children of the socially ex-
cluded will end up being excluded themselves. In the
former instance, we are dealing with social measures
that stimulate employment, a rise in standards of liv-
ing and social cooperation66, while the latter involves
activities aimed at socially excluded families. To our
knowledge, there has been no systematic expert
discussion of these latter measures in Croatia to date,
nor have any political promises been made in rela-
tion to activities in this area. The public, including the
academic community, has not yet acknowledged the
tragedy of social exclusion.
3.2 Unemployment and social
exclusion67
The key components of the process of social exclusion
are unemployment, poverty and social isolation: they
mutually reinforce one another and cause progressive
social exclusion through their interaction. The view
prevails that the primary factor is the marginalisation
of individuals in the labour market, i.e. their prolonged
unemployment68. This causes a decline in the standard
of living, and in many cases impoverishment, which
then has two further consequences – it limits resourc-
es for seeking employment and makes it impossible
to participate in social activities. Limited resources
and increased social isolation separate people from
the information and networks they need, thus making
re-employment harder. In this way the grim spiral of
social deterioration continues. Empirical studies have
confirmed the view that unemployment and poverty
contribute to the progressive process of social exclu-
sion, but they have also shown that the impact of
unemployment may vary in different environments69.
The findings from some central and eastern European
transition countries indicate that extensive and long-
term unemployment does not always have to initiate
a process of social exclusion70. There are similar indica-
tions for some southern European countries. The ques-
tion is therefore how Croatia compares in this respect.
Is there an inevitable process of social exclusion in
Croatia whereby long-term unemployment leads to
poverty and social isolation, which, in turn, addition-
ally reduce the probability of (re)employment?
We attempted to answer this question in the prelimi-
nary study by comparing unemployed people who
had been jobless for periods of different lengths71.
We started from the assumption that, if there is a ten-
dency towards social exclusion, individuals affected

These cannot be equated with ordinary measures aimed at reducing social inequalities. For example, progressive taxation, as the most common means of reducing inequalities, has no direct effect on
65

the extent of social exclusion.

This is well described by the paradigm of social capital (Štulhofer, A. (2003). Društveni kapital i njegova važnost. In D. Ajduković (ed.) Socijalna rekonstrukcija zajednice. Društvo za psihološku pomoć. Zagreb,
66

Croatia, pp. 79 – 98).

Data used in this paper were collected in the study Psychological Aspects of Unemployment, conducted with the partial support of the Ministry of Labour and Social Welfare and the Ministry of the
67

Economy, Labour and Entrepreneurship. Branimir Šverko, Mirta Galešić, Zvonimir Galić and Darja Maslić Seršić participated in its planning and implementation.
Gallie, D. (1999). Unemployment and Social Exclusion in the European Union. European Societies, Vol. 1, No. 2, 1998, pp. 139-168.; Paugam, S. (1991). La disqualification sociale. Presses Universitaires de
68

France. Paris, France.

Gallie, D., Paugam, S., S. Jacobs (2003). Unemployment, Poverty, and Social Isolation. Is There a Vicious Circle of Social Exclusion? European Societies, Vol. 5, No. 1, 2003, pp. 1-31.
69

Roberts, K. (2001). Unemployment without social exclusion: Evidence from young people in Eastern Europe. International Journal of Sociology and Social Policy, Vol. 21, No. 4-6, 2001, pp. 118-144.
70

Šverko, B., Galešić, M., Maslić-Seršić, D. (2004). Aktivnosti i financijsko stanje nezaposlenih u Hrvatskoj. Ima li osnove za tezu o socijalnoj isključenosti dugotrajno nezaposlenih osoba? Revija za socijalnu
71

politiku, 11(3-4), 2004, pp. 283-298.

32 Poverty, Unemployment and Social Exclusion

Investigating Social Exclusion
by long-term unemployment should manifest certain
differences when compared with those unemployed
for a short time. First, those unemployed for a longer
period should suffer much greater financial problems.
As the period of unemployment is prolonged, re-
serves are spent and, in the absence of other sources
of income, the person’s financial situation deteriorates
subjectively and objectively. Second, if a prolonged
period of unemployment is accompanied by an in-
crease in poverty and social isolation, the pattern of
a person’s everyday activities will probably change as
well: they will undertake a greater number of activi-
ties at home, and fewer activities relating to personal
development and recreation. Third, sources of sup-
port become exhausted with an increased duration
of unemployment. If the process of social exclusion
also implies a progressive increase in social isolation,
people affected by long-term unemployment might
feel a lower degree of social support, i.e. compassion,
encouragement and direct support from other peo-
ple in resolving their problems. Fourth, it is probable
that the search for a job will become less intense.
Although actively seeking a job is a prerequisite for
finding one, long-term unemployment, poverty and
social isolation limit resources for job seeking, and
failures affect self-confidence and reduce motivation.
These hypotheses were verified in a study using
a sample of unemployed people registered at the
Croatian Employment Office (N = 1138), surveyed in
the summer of 2003. We analysed the differences in
financial situation, the structure of everyday activities,
the level of social support and the intensity of job
search of people unemployed for periods of different
lengths. All the differences established were along the
lines expected, but the scale of these differences did
not point towards a definite process of social exclu-
sion. We concluded that there is as yet no definite
process of social exclusion in Croatia.
However, the analysis had limitations as well. First, it
was based on a comparison of groups of people un-
employed for various periods of time (a cross-sectional
approach). This comparison is not fully justifiable, for
amongst other reasons because some groups could
have already dwindled in size. For instance, people
who had already given up searching for a job and
had already become socially excluded were probably
under-represented in the group of long-term unem-
ployed. Second, the results of the analysis reflect the
events of the 1990s, when the economy collapsed due
to the transition process, the war, a poor development
policy and other circumstances, and a large number of
jobs were lost. The mass unemployment that ensued
affected various social strata; thus, the particular proc-
For methodological explanations, see Appendix - Methodological explanations for Chapter 3.
72
esses which cause social exclusion in ordinary circum- There is as yet no
stances did not occur. Since then, normal processes
for taking on and laying off workers, which generate
definite process of social
social exclusion today, have been established. exclusion in Croatia.
Presented below are new analyses, which go beyond
the limitations stated above, as they are based on
a re-survey of the same participants of the study (a
longitudinal study). More precisely, in the autumn of
2004 we re-surveyed the participants of our first study
of summer 2003. On this later occasion we recorded
who among them had found a job in the meantime. On
this basis, we can now, using studies conducted at two
points in time, compare the characteristics of those who
remained unemployed and those who had found jobs.
This enables us to explore two important problems:
1. What influence does prolonged unemployment
have on other components of the process of social
exclusion, particularly on economic deprivation
and social isolation?
2. Who in Croatia finds (or does not find) a job: in
other words, what is the likelihood of employment
for people with different characteristics, and do
the current processes underlying employment in
Croatia generate social exclusion?
The answers to these questions should allow a more
complete insight into the mechanisms of social exclu-
sion in Croatia and provide some insights, which may
be helpful in creating social policy.
3.2.1 Impact of prolonged unemployment
and employment
In line with the concept of social exclusion which has
been proposed here, it was postulated in the longi-
tudinal study72 that prolonged unemployment leads
to poverty and social isolation, which then further
reduce the likelihood of employment. In the second
study, we established that, out of the total number
who filled out questionnaires (N = 601), 394 were still
unemployed, whereas 207 participants had found
temporary or permanent jobs between the first and
second study. Now we can compare those two groups
of participants in terms of key variables in order to
assess the impact of prolonged unemployment com-
pared to finding a job.
Table 3.3 illustrates the distribution of participants’
total household incomes in the first and second study.
Group A is composed of participants in the study
who were unemployed and remained unemployed,
whereas group B is composed of those who were un-
employed during the first study, and employed dur-
Poverty, Unemployment and Social Exclusion 33
Investigating Social Exclusion

Those who remained ing the second study. A comparison of distributions quence, the difference between the groups increased
within the groups (between the first and the second significantly: if we compare the income distribution of
unemployed showed an study) shows that there are changes in both groups, both groups in the second study, we see considerable
increase in their level but the changes are in the opposite direction. In differences in their incomes (the poorest in group A
of social isolation over group A, the income distribution in the second study account for 20.1%, whereas they account for only 3.2
worsened (the share of participants with incomes % in group B). During a period of unemployment last-
a year, whereas those of up to HRK 1000 increased, whereas the number ing one year, some participants of the study moved
who became employed of those with more than HRK 4000 decreased). The to lower categories of economic status, and many
showed a visible opposite change took place in group B. As a conse- among them to the category of the poor.
decrease.
Table 3.3 Income distribution in the first (2003) and second study (2004) for the participants of the study who
remained unemployed (Group A) and those who found employment between the two studies (Group B).

Monthly Household Incomes (HRK)

Total N
Up to 1000 1001 – 4000 4001 and over
First study (unemployed) 15.2% 51.6% 33.2% 100.0 382
Group A
Second study (unemployed) 20.1% 51.0% 28.9% 100.0 388
First study (unemployed) 8.5% 41.7% 49.7% 99.9 199
Group B
Second study (employed) 3.2% 32.7% 63.9% 100.0 205

Note: Differences in income distribution between Groups A and B and between the first and the second study within each
group are statistically significant.

The impact of unemployment and finding a job on
economic status is more clearly illustrated by Figures
3.3 and 3.4. Figure 3.3 illustrates the estimated aver-
age household incomes of the respondents in the
first (2003) and the second study (2004). Solid lines
indicate the household incomes of the study partici-
pants who remained unemployed (Group A), whereas
dashed lines indicate the incomes of those who man-
aged to find jobs. The figure clearly indicates that
those who became employed significantly increased
their household incomes, whereas the incomes of
those who remained unemployed continued to de-
cline (an analysis of variance confirmed that the differ-
ences among the groups were statistically significant).
Those changes also resulted in significantly higher
differences between the employed and the unem-
ployed at the second measurement point. In line with
this, the subjective assessment of financial concerns
(Figure 3.4) yielded mirror-image results: the financial
concerns of those who remained unemployed grew
slightly over a year, whereas those who managed to
find work indicated significantly lower levels of con-
cern about money. The differences between the two
groups significantly grew in subjective terms as well.
Prolonged unemployment is an obvious factor of eco-
nomic deprivation.

Figure 3.3 Total household incomes in the first (2003) and the second study (2004) for the group of participants
who had been and remained unemployed (solid line), and for the group of participants who managed to find
jobs between the two studies (dashed line).
6500

6000
5500

5000

4500

4000

3500

3000

2500

2000
2003 2004

34 Poverty, Unemployment and Social Exclusion

Investigating Social Exclusion

Figure 3.4 Level of financial concerns in the first (2003) and the second study (2004) for the group of partici- Not all unemployed
pants who had been and remained unemployed (solid line), and for the group of participants who managed to
become employed between the two studies (dashed line). The participants assessed how frequently they had
people have an equal
financial worries on a scale from 1 (never) to 5 (all the time). probability of finding
employment, since this
3,8 may be affected by their
3,6
different demographic
3,4
characteristics.
3,2

3,0

2,8

2,6

2,4
2003 2004

Figure 3.5 illustrates the data for the second key
component of social exclusion – social isolation, i.e.
the average level of subjective social isolation for the
two groups of respondents in the first and the second
survey. Those who remained unemployed showed an
increase in their level of social isolation over a year,
whereas those who became employed showed a visi-
ble decrease. In the long run, groups of employed and
of unemployed show great differences in the level of
subjective social isolation.

Figure 3.5 The level of subjective social isolation in the first (2003) and the second study (2004) for the group of
participants who had been and remained unemployed (solid line), and for the group of participants who man-
aged to become employed between the two studies (dashed line). The average level of isolation was calculated
from the answer to the question: Do you consider yourself an integral part and a useful member of the social commu-
nity? which could range from 1 (yes, I feel like a useful member) to 4 (I feel completely non-useful and excluded).

2,40

2,20
2,00

1,80

1,60

1,40
2003 2004

An important characteristic of the results obtained is
visible in Table 3.3 and in Figures 3.4 and 3.5: among
those who remained unemployed (solid lines) and
those who became employed after the first study
(dashed lines) there were already differences at the first
measurement point, i.e. at the time when all were un-
employed! From as early as then, those who remained
unemployed were poorer, i.e. they showed a higher
level of economic deprivation and social isolation.
These differences, no doubt, indicate selective proc-
esses in employment and lead us to the second prob-
lem of the study: Who in Croatia does (not) get a job?

Poverty, Unemployment and Social Exclusion 35

Investigating Social Exclusion

For instance, wealthier 3.2.2 The likelihood of unemployed people
finding work
people had two times
higher chances of It has already been stated that between the first study
getting a job than poor (June – August 2003) and the second study (November
– December 2004), out of a total of 601 participants
people, healthy people who responded to the questionnaires, 207 found jobs.
also had two times higher So, in a little more than a year, 34.4% found jobs, in
chances of getting a other words, the probability of finding employment was
0.34. This is currently an average unemployed person’s
job than people whose likelihood of finding employment in Croatia.
health was poor, while
younger people had However, not all unemployed people have an equal
probability of finding employment, since this may be
approximately three affected by their different demographic characteristics.
times higher chances for We assumed that the likelihood of finding employment
employment than older differs for unemployed people of different gender, age,
education, duration of unemployment, financial status
people. and mental and physical health. This was convincingly
corroborated by the analysis conducted.
Figure 3.5 illustrates the probability of finding employ-
ment for people with different characteristics. The
percentage of those who managed to find employment
between the two studies is given for each segment of
an individual variable. In the selection of variables for
this analysis, we were guided by very specific hypoth-
eses, all of which were confirmed, except for the one
concerning gender difference. We supposed that men
would have a greater chance of finding work, but the
results showed that there is no difference in this respect
between men and women.
All other differences are statistically significant (Chi-
square tests show that all the differences were signifi-
cant on the level p < .001), and, as clearly indicated by
the differences in the length of the bars, the differences
among specific segments were also very large. For in-
stance, wealthier people had two times higher chances
of getting a job than poor people, healthy people also
had two times higher chances of getting a job than peo-
ple whose health was poor, younger people had ap-
proximately three times higher chances for employment
than older people, people who were unemployed for
a shorter time also had three times higher chances than
those who were unemployed for more than three years,
whereas people with higher education had as much as
four times higher chances of employment than those
with only primary school qualifications or less.

Figure 3.6 Probability of finding employment for unemployed people with different characteristics (percentage
of participants who found jobs during a period of just over a year).

0 10 20 30 40 50 60
Gender
Men 34,2
Women 34

Age
Up to 24 39,6
25-34 44,4
35-44 32,4
45 and over 14,6

Education
Primary school qualifications and less 15
Secondary school qualifications 31,9
University qualifications 57,6

Duration of unemployment
Up to 6 months 46,2
7 months to 3 years 40,2
More than 3 years 16,5
Income poer household member
Upt to HRK 500 20,1
HRK 500-1000 36,1
HRK 1001-2000 40,6
More than HRK 2000 44,9

Physical health
Poor 22,3
Average 38,7
Good 43,8

Mental health
Poor 27,5
Average 34,9
Good 46,9

36 Poverty, Unemployment and Social Exclusion

Investigating Social Exclusion

How can we account for such large differences in the Social policy measures
probability of finding employment between people
with different characteristics? Those differences are
should be particularly
probably the result of the interaction of various fac- directed towards the
tors and processes, including: activities of the job most vulnerable groups
seekers themselves (for example, among the long-term - people above 45 years
unemployed, there are ever greater numbers of peo-
ple who become discouraged and give up on persist- of age, people with
ent and intensive job seeking, thus additionally reduc- inadequate education,
ing their chances of finding a job), resources which the poor, the long-
job seekers have at their disposal (e.g. the poor have
term unemployed
fewer resources), or their functional characteristics
(e.g. people with inadequate education do not meet and individuals with
the requirements of the jobs available). Of course, the impaired mental and
decisions of the employers and their conceptions of de- physical health.
sirable characteristics in employees have a decisive role.
They can also be affected by prejudice; for instance,
the idea that people above 45 years of age cannot be
successful workers. More precise research and analysis
of those processes and mechanisms are very impor-
tant for effective social policy measures to be devised.
There is currently a lack of research and analysis of
this kind.

3.2.3 Conclusion
According to the concept of social exclusion, pro-
longed unemployment leads to poverty and social
isolation, which then additionally reduce the likeli-
hood of finding work. As indicated by the results pre-
sented here, this has also been confirmed in Croatia
today. Unlike our previous cross-sectional study,
which did not find significant differences between
the long-term and short-term unemployed, this lon-
gitudinal study convincingly shows that prolonged
unemployment in Croatia impoverishes and socially
isolates those who are exposed to it. In little more
than a year, monitored individuals who failed to find
work experienced a significant deterioration in their
financial situation and an increase in social isolation.
In addition, the second part of our study shows the
detrimental effects of the recruitment process itself,
which discriminates against certain categories of the
unemployed. The following are the most vulnerable
individuals, those whose likelihood of finding employ-
ment is lower than 0.30: people above 45 years of age,
people with inadequate education, the poor, the long-
term unemployed and individuals with impaired mental
and physical health. Any combination of these quali-
ties makes finding employment in Croatia practically
impossible and predestines individuals to become
socially excluded. It is for these reasons that social
policy should be particularly directed towards these
groups.

Poverty, Unemployment and Social Exclusion 37

Chapter 4:
Long-term Unemployment –
A Determinant of Social Exclusion
International experience Long-term unemployment is generally considered to
be, to a greater or lesser extent, a determinant of social
indicates that there exclusion (see Chapter 3.2). Although Croatia has a
continue to be high level of overall unemployment, and of long-term
individuals who are unemployment in particular, the measures aiming to
alleviate it do not sufficiently target people who are
difficult to employ either long-term unemployed, or who are at risk of
among social welfare becoming so.
beneficiaries, even after
they have taken part in 4.1 The significance of employment
activation programmes and unemployment
which contain an Employment has a fundamental role in every society.
element of compulsion, People are frequently defined (and define themselves)
by what they do for a living. Sociological and eco-
such as welfare-to- nomic studies stress that employment is not only the
work or workfare key determinant of people’s status in any country, but
programmes. it is also essential for providing a sense of purpose,
income, social stability, and quality of life, and ensur-
ing participation in society73. Employment has been
called “the glue that holds our society together“74.
Market incentives for increasing investment in edu-
cation and professional development may have a
particular role in alleviating the growing inequalities
in employability and salaries, and the related potential
poverty. If people are employed, it is less likely that
they will be poor, although some people who work are
also poor due to a low income and large personal and
family expenses. Efforts are being made to help people
to work and to earn a salary, and thus be in a better
position than those who receive assistance and ben-
efits through the unemployment and social welfare
system. Unfortunately, in Croatia, as in many transition
countries, many people are unemployed and/or are
not easily employable and therefore are exposed to
economic poverty and social exclusion.
The ILO75 defines employability very broadly: it is the
impact of both high quality education and training,
but also of other activities. Employability includes the
know-how, skills and competencies to enable a person
to find and keep a job, to advance professionally, to
find another job if dismissed, or find a job in different
periods of his or her work and life cycle. Individuals are
most employable if they have broad knowledge and
competencies, basic and specialist knowledge, includ-
ing teamwork competencies, information and commu-
Jahoda, M. (1982). Employment and unemployment – A social-psychological analysis. Cambridge University Press. Cambridge, United Kingdom.
73
Smith, R. (1987). Unemployment and health: a disaster and a challenge. Oxford University Press. Oxford, United Kingdom.
74
International Labour Office (2002). Key Indicators of the Labour Market 2001-2002. International Labour Office. Geneva, Switzerland.
75
Holcomb, P. A., Martinson, K. (2002). Implementing Welfare Reform across the Nation. New Federalism: Issues and Options for States, Series A, No. A-53. The Urban Institute; Holcomb, P. A., Martinson, K.
76
(2002). Putting Policy into Practice: Five Years of Welfare Reform. In Weil, A., Finegold, K. (eds) Welfare Reform: The Next Act, Urban Institute Press. Washington D.C., USA, pp. 1-16.
Acheson, D. (1998). Independent Inquiry into Inequalities in Health Report. HMSO and The Stationery Office. London, United Kingdom.
77
Gallie, D., Gershuny, J., Vogler, C. (1994). Unemployment, the household, and social networks. In Gallie D, Marsh, C., Vogler, C. (ed.) Social change and the experience of unemployment. Oxford University Press.
78
Oxford, United Kingdom, p. 255.
Atkinson, A. B. (1989). How Should We Measure Poverty? Some Conceptual Issues. In Atkinson, A. B. Poverty and Social Security. Harvester Wheatsheaf. London, United Kingdom.
79
38 Poverty, Unemployment and Social Exclusion
nication technology competencies, as well as knowl-
edge of foreign languages and communication skills.
Such a combination of knowledge and competencies
enables adaptation to changes in the world of work.
Many factors on the supply side of the labour market
limit the opportunities open to social welfare ben-
eficiaries, particularly those who are very difficult to
employ. Reforms to the labour market and the social
welfare system should be supplemented by measures
to reduce barriers to employment, particularly for diffi-
cult-to-employ and poorly paid workers. International
experience76 indicates that there continue to be indi-
viduals who are difficult to employ among social wel-
fare beneficiaries, even after they have taken part in
activation programmes which contain an element of
compulsion, such as welfare-to-work or workfare pro-
grammes. They are usually struggling with a number
of different and complex obstacles to employment,
including physical disability/incapacitation, psycho-
logical problems, domestic violence, learning difficul-
ties, alcoholism or drug addition, and they mostly have
a background of poor educational achievement, they
live in areas with poor transport connections, are of
poor health and/or have difficulties with socialisation,
and so forth. The Acheson Report77 mentions that the
unemployed, especially if they are in receipt of social
welfare, have a considerably lower level of psychologi-
cal stability and are frequently susceptible to depres-
sion and dissatisfaction, even to the extent of inflicting
self-injury and committing suicide. Gallie et al78 found
that people whose social network consists of simi-
larly unemployed people have greater vulnerability
problems when exposed to psychological and financial
difficulties that, in turn, make it more difficult for them
to escape poverty. Long-term unemployment is par-
ticularly harmful for health. It destroys a person’s op-
portunities and capacities, not only in a material sense,
but also socially and mentally. Moreover, the effects of
unemployment on health accumulate over time. Long-
term unemployment undoubtedly has an effect on
social exclusion to a greater or lesser extent.
Although as far as methodology is concerned, the
meaning of the concepts of poverty, social exclusion,
employment and poverty may seem completely (or
mainly) clear, Atkinson79 warns that this is not really
Long-term Unemployment –
A Determinant of Social Exclusion

always the case. It is relatively easy to understand pov-
erty and define it as a lack of money or property. The
issue becomes more complicated with social exclu-
sion, whose definition has at least three components.
The first component concerns the relativity of social
exclusion: people are excluded as a group or a com-
munity at a given moment. The second relates to the
agent: people either exclude themselves or become
excluded by others80. The third component relates to
the dynamic nature of social exclusion: the phrase “so-
cial exclusion“ refers not only to current exclusion, but
also to the lack of hope for the future. Social exclusion
should therefore be viewed more widely and beyond
long-term unemployment because it also includes
(a lack of) expectation of future income. Hence it is
often said that poverty and unemployment may lead
to social exclusion, but they do not necessarily have to
cause it. Furthermore, people who work and are not
poor can also be socially excluded. Atkinson believes
that the State may play a major role in combating
social exclusion through appropriate programmes of
social welfare and assistance during unemployment.
A review of unemployment, poverty and related so-
cial exclusion should include research of some of the
consequences affecting the individual and society
as a whole. Sen81 states that the list of consequences
should include, for the community, the loss of the gen-
erated output and the fiscal burden, and for the indi-
vidual the loss of freedom to make decisions (which
means much more than a reduction in income); the
loss of knowledge and expertise, and the subsequent
long-term damage (just as one learns through work, so
one also forgets through lack of activity – because one
is outside the world of work and practice); psychologi-
cal harm; health problems; damage to morale; a loss of
motivation for future work; a loss of relationships and
family life, as unemployment and poverty can be very
detrimental for social relations and can also impair the
harmony and unity of the family and jeopardise rela-
tions with friends and relatives; finally, the loss of social
values and responsibilities, as the long-term unem-
ployed and poor people may become cynical about
the fairness of social relations, and unemployment and
poverty can also create a feeling of dependence on
others – such effects are not conducive to the devel-
opment of responsibility and self-reliance.
It is hardly needs to be mentioned that the labour
market does not operate perfectly much of the time,
so there can be both unemployment of some work-
ers and a high demand for other workers at the same Active labour market
time. This means that, particularly in countries with
high unemployment such as Croatia, there is room
policy (ALMP) may help
to improve the functioning of the labour market by in alleviating (reducing)
matching workers and employers (labour supply and the structural (frictional)
demand), thus decreasing overt unemployment and
the number of unfilled vacancies. Active labour market
imbalance between
policy (ALMP) may help in alleviating (reducing) the supply and demand,
structural (frictional) imbalance between supply and primarily by reducing
demand, primarily by reducing the professional and
spatial mismatch between supply and demand, and
the professional and
increasing the transparency of the labour market. The spatial mismatch
most important instruments of ALMP are training and between supply and
professional development, the provision of informa-
tion and advice with regard to job vacancies and selec-
demand, and increasing
tion processes, and mediation the transparency of the
labour market.
ALMP can redistribute opportunities for employment,
so that fewer people remain long-term unemployed
and/or become welfare beneficiaries. If total employ-
ment and total labour supply are fixed, ALMP actually
means that more people are affected by unemploy-
ment over time (presuming that ALMP programmes
do not affect the same people at different times).
Naturally, an increase in overall employment would be
a more favourable result of ALMP than the redistribu-
tion of unemployment to a greater number of people.
However, economic theory holds that ALMP has
almost no immediate effect on overall employment82,
but the efficiency of the labour supply increases if the
long-term unemployed or welfare claimants become
employed. It is therefore worth considering stimulat-
ing the participation of the long-term unemployed
on the labour market and preventing long-term
unemployment. Although these measures may have
negative effects, the risk is acceptable if their overall
impact is a reduction in the average duration of un-
employment. Perhaps ALMP’s greatest significance
is that the impact of losing a job or having to change
job becomes more acceptable if employment oppor-
tunities for the long-term unemployed and welfare
beneficiaries are increased (the most important form
of benefit in Croatia is called support allowance), and
so decreasing social exclusion.
According to recent literature83, training and education
are considered to be most effective for the short-term
unemployed (those looking for a job for up to two
years), whereas salary supplements paid by the State to
employees appear to be more effective amongst those
who have previously been out of work for more than

The term social exclusion has caused a great debate as to whether this syntagm implies the activity of individual subjects (such as the State) or if it simply happens that particular citizens are excluded. For
80

instance, in Hungary there was political resistance to the use of the active form of the verb exclude while the relevant documents were being translated because it was claimed that “in Hungary nobody
excludes anybody“ (Lendvai, N. (2005.) Socijalna politika u srednjoj i istočnoj Europi i ulazak u Europsku uniju: vrijeme za razmišljanje. Financijska teorija i praksa, God. 29, br. 1, 2005., br. 1-12.).
Sen A. (1997). Inequality, unemployment and contemporary Europe. International Labour Review, Vol. 136, No. 2, 1997, pp. 155-171.
81

Koning de, J., Mosley, H. (ed.) (2001). Labour Market Policy and Unemployment: Impact and Process Evaluations in Selected European Countries. Edward Elgar. Cheltenham, United Kingdom; Northampton, USA.
82

Schmid, G., Speckesser, S., Hilbert, C. (2001). Does active labour market policy matter? An aggregate impact analysis for Germany in Koning de, J.; Mosley, H. (ed.) Labour Market Policy and Unemployment:
83

Impact and Process Evaluations in Selected European Countries. Edward Elgar. Cheltenham, United Kingdom; Northampton, USA.

Poverty, Unemployment and Social Exclusion 39

Long-term Unemployment –
A Determinant of Social Exclusion

In general, employment two years. If the economy is on an upward trend, this
seems to be particularly efficient in preventing “struc-
and training turalisation“ (whereby unemployed people with the
programmes have the best qualifications find work, whereas the least quali-
greatest impact and the fied remain unemployed), and in speeding up the re-
duction of long-term employment. Training and educa-
greatest social benefit tion will be more efficient if implemented over a shorter
for those with least period of time, whereas temporary employment in the
previous experience in public sector and salary supplements have greater ef-
fect in the long term and in carefully selected cases. In
the labour market and general, employment and training programmes have
for those that are the the greatest impact and the greatest social benefit for
most vulnerable. those with least previous experience in the labour mar-
ket and for those that are the most vulnerable84.
With regard to the wider term social exclusion, it is gen-
erally believed that employment and education poli-
cies should provide a way out of the problems associ-
ated with long-term unemployment, such as poverty
and dependency on social welfare. Many unemploy-
ment problems may be alleviated by an active labour
market policy. Of course, the eternal question remains
whether this policy is really successful, or just a way of
concealing the problems related to employment.
In order to avoid disappointing results, an active labour
market policy should adjust to changing economic
conditions, and focus on the long-term supply of la-
bour, improving factors such as the economic activity
rate of the labour force, their level of education, and
the flexibility and adaptability of both the employed
and those looking for work. It is particularly important
that labour market and social welfare policies are coor-
dinated, so that they mutually reinforce one another.
The policy which maintains levels of income and ben-
efits during unemployment and the laws protecting
employment should also stimulate integration on the
labour market and promote its efficiency. That said,
coordination is desirable, but difficult to achieve.

Box 4.1: EU Activities in the Area of Employment Policy

The EU’s strategic goal for the current decade, as outlined by the Lisbon Agenda for competitiveness
and social solidarity, is to “become the most competitive and dynamic economy in the world, capable of
sustainable economic growth with more and better jobs and greater social cohesion“. Coordinated joint
policy activities in the wider area of economic, social and ecological issues are being implemented in
order to reach this goal.
The EU is endeavouring to stimulate economic development based on creativity and productivity, and
to implement social policies acceptable to its Member States so as to improve social and economic cohe-
sion. The European Council provides incentives to members and assists them in improving education
and professional training, including measures for accelerating employability and reducing educational
differences. The Council has continually highlighted the need to develop an active employment policy,
which, besides increasing employment, would enable the reintegration of the unemployed and ensure
equal opportunities. At the same time, the Council is striving to build gender and age equality, protect
vulnerable and national minorities, and stimulate social integration in a consistent, sustainable manner,
all under the motto “employment is the best defence against poverty and social exclusion“.
The European Employment Strategy (EES) is part of a wider policy programme initiated by the EU in
Luxembourg in 1997, and reaffirmed in Lisbon in 2000. The position adopted was that employment and
social protection must work together to reduce exclusion and stimulate integration through participa-
tion in the labour market. The EES defines a framework for EU Member States’ employment programmes,
on which these countries submit annual reports. In the area of employment and labour market policy,
Member States carry out activities and produce reports according to four basic guidelines:
- improving employability and work quality – with an emphasis on active labour market policy focused in
particular on young people and the long-term unemployed;
- stimulating enterprise development – above all via deregulation, simplifying access to the market, and
making it easier to start small companies;
- stimulating adaptability among business entities and employees – thus giving social partners a large and
active role;
- strengthening a policy of equal opportunity focused on the issues of employing and ensuring equal
working conditions for women and people with reduced work capacities.

Björklund, A., Haveman, R., Hollister, R., Holmlund, B. (1991). Labour Market Policy and Unemployment Insurance. Clarendon Press. Oxford, United Kingdom.
84

40 Poverty, Unemployment and Social Exclusion

Long-term Unemployment –
A Determinant of Social Exclusion

In almost all EU Member

Croatia has produced a Draft National Employment Action Plan, or NEAP, which gives an overview of
problems and measures connected with the labour market. The plan focuses on young people who are
States, unemployment,
just entering the labour market, older workers with outdated knowledge and skills, and people with disa- particularly long-term
bilities. One of the goals of these new measures is to activate the unemployed, as the experience in other unemployment, is the
countries indicates that stimulating the unemployed to actively seek employment and evaluating their most significant factor
real knowledge and abilities are crucial to employment growth. NEAP is based on ten guidelines, which
current EU Members also have to follow. contributing to poverty
and social exclusion.
4.2 The situation in developed and exclusion. The average unemployment rate85 in the
transition countries EU grew from 2.3 in 1960 to 7.7% in 2001. While some
countries have managed to stem or even reduce un-
Work is considered to be the best form of social wel- employment (in particular the Netherlands, Ireland
fare, and the reasons for this are clear: an employed
and Great Britain), others managed to do so only par-
worker is likely to be economically independent and
tially, so that the unemployment rates are consider-
socially included. Increasing the employment rate
has become a key target of social policies and labour ably higher than in the 1970s (e.g. Sweden, Germany,
market policies in developed industrial countries. France, and Spain). Since the situation has consider-
In almost all EU Member States, unemployment, ably improved with the latest EU enlargement, we
particularly long-term unemployment, is the most provide below the data for June 2003 (the month in
significant factor contributing to poverty and social which the seasonal fluctuations are least apparent).

Table 4.1 Unemployment rates (%) in June 2003, in ascending order

EU 15 8.1 Sweden 5.4

Eurozone 8.9 Portugal 7.3
Luxembourg 3.7 Belgium 8.0
The Netherlands* 4.1 Finland 9.3
Austria 4.4 France 9.4
Ireland 4.7 Germany 9.4
Denmark* 5.2 Spain 11.4

* Data for May 2003. Source: Eurostat (2003).

As illustrated in Table 4.1, the average unemployment
rate was above 8% (somewhat higher in the Eurozone
than in the EU 15). Luxembourg had the lowest rate,
whereas Spain had the highest. The danger of social
exclusion grows with the duration of unemployment,
while long-term unemployment (being out of a job for
more than a year) is considered the most important
indicator of social exclusion. In 2001, 3% of the active
population of the EU was unemployed for more than
12 months. These data display great variation, from
below 1% in Luxembourg, Denmark, the Netherlands
and Austria, to more than 5% in Greece and Italy.
EU enlargement brings on board heterogeneous and
poorer participants. Competition among a number of
depressed regions will increase the problems of social
welfare systems that, in the adjustment process, have
already been exposed to many pressures, for demo-
graphic reasons and also due to globalisation. This
raises the risk of increased unemployment and in-
equality, which often prevents national governments
from conducting complex and essential reforms.
There are also significant differences among the new
EU Member States, both in terms of unemployment
and long-term unemployment. While in 2000 one
group of new members recorded comparatively low
unemployment rates of below 10% (Estonia, Czech
Republic and Hungary), another group recorded very
high unemployment rates of almost 20% (Slovakia
and Poland). Slovenia managed to decrease the high
level of unemployment recorded in the mid-1990s to
approximately 6.5%.

In the text below, data on unemployment are used as laid out in the Labour Force Survey (LFS) (whose methodology is in accordance with that recommended by the International Labour Organisation).
85

According to this, unemployment in most countries is somewhat lower than the data on recorded unemployment, which are collected through employment services. The long-term unemployment rate
for Croatia (Table 4.2) is calculated according to the structure of the duration of unemployment, in line with the data of the Croatian Employment Office.

Poverty, Unemployment and Social Exclusion 41

Long-term Unemployment –
A Determinant of Social Exclusion

Croatia has higher rates The unemployment rate itself is not a sufficient indica-
tor of the seriousness of the situation on the labour
of both unemployment
market and is not the only determinant of social exclu-
and long-term sion. The structure of the unemployed according to
unemployment than the time spent seeking employment should also be
the averages of the new included. Rates of long-term unemployment in the new
Member States. EU Member States differ and change significantly, even
over a short period of time. For example, in 2000 Poland
achieved the best result, with long-term unemployed
(people seeking employment for more than a year) ac-
counting for a third of the total number of unemployed.
The country with the worst result was Slovenia, where
almost two-thirds of the unemployed were out of work
for more than 11 months. However, according to the
2003 data, long-term unemployment in Poland grew
considerably whereas it decreased in Slovenia.

Table 4.2 Unemployment rates and long-term unemployment (more than 11 months) in 2003 (in %)

Long-term Total Short-term unemploy-ment Total unemploy-ment

  Total F M Total F M Total F M

Croatia 8.9 10 8.1 5.9 6.6 5.3 14.8 16.6 13.4
EU 4 4.5 3.6 5.1 3.8 6.4 9.1 8.3 10
EU10 7.8 8.4 7.3 6.5 5.3 7.8 14.3 13.7 15.1
Czech Republic 3.8 5 2.9 4 1.1 6.9 7.8 6.1 9.8
Estonia 4.6 4.4 4.8 5.6 6.1 5.1 10.2 10.5 9.9
Cyprus 1.1 1.4 0.8 3.4 2.5 4.4 4.5 3.9 5.2
Latvia 4.3 4.6 4.1 6.2 5.7 6.6 10.5 10.3 10.7
Lithuania 6.1 6.5 5.7 6.6 5.8 7.4 12.7 12.3 13.1
Hungary 2.4 2.3 2.5 3.4 3.7 3 5.8 6 5.5
Malta 3.5 3 3.5 4.5 3.8 7.2 8 6.8 10.7
Poland 10.7 11.5 10.1 8.5 7.1 9.9 19.2 18.6 20
Slovenia 3.4 3.6 3.3 3.1 2.4 3.7 6.5 6 7
Slovak Republic 11.1 11.4 10.9 6.4 5.8 6.9 17.5 17.2 17.8

Source: Eurostat – Labour Force Survey, annual averages, taken over from the Commission of the European Communities,
2005. The data on Croatia refer to the first semester of 2004, data from the Central Bureau of Statistics, 2005.

High long-term unemployment mostly accompanies
a high overall level of unemployment, so Poland and
Slovakia had the highest rates of both unemployment
and long-term unemployment in 2003 (Table 4.2). Out
of central and eastern European countries, the Czech
Republic, Hungary and Slovenia experienced lower
rates of unemployment and long-term unemploy-
ment. Croatia has higher rates of both unemployment
and long-term unemployment than the averages of
the new Member States.
Turbulent changes in the labour markets of transition
countries and the unrepresentative picture painted
by statistics like these (certain countries with low un-
employment, such as Romania, are actually lagging
behind significantly in terms of economic reform and
restructuring) indicate that it is better to compare the
situation in Croatia with the older EU Member States.
A comparison with the older EU Member States
clearly shows that the proportion of people who find
jobs following a shorter period of unemployment
(up to 11 months) in Croatia is palpably lower than
in all countries except for Italy. This difference seems
particularly great when compared with the situation
in countries known for their dynamic labour market,
such as Austria or Denmark. In Austria, Denmark
and Finland, almost three-quarters of unemployed
men find jobs after 11 months; in Spain, France,
Luxembourg, the Netherlands, Portugal, Sweden and
Great Britain, two-thirds manage to find work in this
period; in Croatia, only 38.3% of unemployed men
find jobs after 11 months. More than 60% of men in
Croatia spend 11 months or more looking for employ-
ment, whereas this percentage is a little more than
25% in Austria, Denmark and Finland. In Croatia, the
situation is similar with unemployed women: in the
first 11 months, 37% of unemployed women find
jobs, whereas in Denmark and Finland about four
fifths do so. Almost two-thirds of unemployed women
in Croatia are out of work for more than 11 months,
whilst the same fate is shared by only a fifth of Danish
and Finnish woman (Table 4.3).

42 Poverty, Unemployment and Social Exclusion

Long-term Unemployment –
A Determinant of Social Exclusion

Table 4.3 Duration of unemployment in Croatia and in old EU Member States in 2001 (in %) Almost two-thirds of
unemployed women
M F in Croatia are out of
Total up to More than Total up to More than
  11 months 11 months 11 months 11 months
work for more than 11
Italy 36.3 63.7 36.9 63.1 months, whilst the same
Croatia 38.3 61.8 37.0 63.2 fate is shared by only
Belgium 47.5 52.5 49.2 50.8
a fifth of Danish and
Germany 51.6 48.4 47.1 52.9
Greece 53.0 47.0 43.4 56.6
Finnish woman.
France 63.1 36.9 63.2 36.8
Portugal 64.3 35.7 60.1 39.9
Netherlands 65.0 35.0 68.7 31.3
Sweden 66.9 33.1 72.3 27.7
Great Britain 67.0 33.0 80.5 19.5
Luxembourg 67.2 32.8 76.3 23.7
Spain 69.2 30.8 58.4 41.6
Finland 73.0 27.0 79.8 20.2
Denmark 73.8 26.2 81.2 18.8
Austria 74.5 25.5 73.3 26.7

Source: Eurostat

4.3 The situation in Croatia
4.3.1 Long-term unemployment in Croatia
Declining production in Croatia in the early 1990s and
the consequent reduction in the number of people
employed were not surprising. However, it is less clear
why high unemployment has remained so persistent
after output increased. Given unemployment and
the related poverty and social exclusion, the main
concern is not therefore so much why unemployment
(until recently) grew at very high rates, but why some
people find it so difficult to find a way out of unemploy-
ment. Very low rates of emergence from unemploy-
ment mean that unemployment is becoming increas-
ingly long term86. Croatia is without doubt a country
with a high degree of long-term unemployment, so
efforts aimed at its reduction are highly important.
Obviously, the suppression of unemployment (par-
ticularly long-term unemployment) is a complex and
expensive task, which becomes even more expensive
if these efforts are postponed.

Box 4.2.: Zagrebački bokci

Zagrebački bokci is a humanitarian organisation started by unemployed single people, pensioners, poor
people and others who had experienced a drop in their socio-economic status and subsequently suf-
fered social isolation or a disintegration of social ties. The aim of the organisation is to provide increased
opportunities for socialising and networking to unemployed and poor citizens of Zagreb, as well as to
help them recover their diminished self-respect by performing socially beneficial work. Some of their
activities include cleaning up the environment, removing ragweed, picking apples, distributing second-
hand clothes and furniture, and planting flowers. These activities also improve the lives of their fellow
citizens.

Franz, W. (1995). Central and East European Labour Markets in Transition: Developments, Causes, and Cures. Discussion Paper No. 1132. Centre for Economic Policy Research. London, United Kingdom.
86

Poverty, Unemployment and Social Exclusion 43

Long-term Unemployment –
A Determinant of Social Exclusion
In 1991, 9% of the The risk of poverty and marginalisation in Croatia is
directly related to exclusion from the world of work.
unemployed were out It has been mentioned that the first national poverty
of a job for more than study was carried out in 199887 (for more recent data,
three years on average, see Chapter 2 of this Report). Poverty in Croatia has a
whereas in 2002 more stagnating effect: those who have become poor need
a great deal of time to free themselves of poverty.
than a quarter of the Poverty in Croatia is in many respects a permanent
unemployed (26.5%) condition: there is little likelihood that the poor can
looked for employment easily be lifted from their current situation. The two
for the same period of major reasons are:
time. - General economic opportunities are limited be-
cause, so far, growth has failed to provide enough
jobs. Many old jobs have disappeared, and new
ones have not been created. Growth has primarily
benefited those who already have jobs. The impact
has been negligible for those outside the world of
work, and even negative for some. Furthermore,
until recently the excessive regulation of labour
relations and employment, particularly with regard
to redundancies, restricted labour market flexibility
and limited the opportunities open to small busi-
nesses, which could have presented a significant
source of income for the poor.
- The poor have limited access to the employment
opportunities that exist. Once excluded from the
world of work, the unemployed and the economi-
cally inactive have limited opportunities to break
the cycle of poverty. Almost one-half of the unem-
ployed are long-term unemployed, and an analysis
of worker flows on the labour market indicates that
the unemployed and the economically inactive
have a low probability of finding a new job.
Croatian society has become polarised between rela-
tively securely employed people (insiders) (who are in
fact underpaid when the cost of living is considered),
and the unemployed (outsiders), of whom a consid-
erable number are long-term unemployed, whose
chances of finding a job are slim. This is related to
the rigidity of the Croatian labour market and labour
legislation, and reflected in a lengthy, complex and
expensive system for laying off employees (which
affects, for example, the termination of employment
contracts, statutory notice period, severance pay-
ments, mass redundancies and so on)88. The rigidi-
ties of the labour market curb entry to and exit from
employment, which, in addition to the relatively high
World Bank (2000). Croatia Economic Vulnerability and Welfare Study. World Bank. Washington, D.C., USA.
87
Biondić, I., Crnić, S., Martinis, A., Šošić, V. (2002). Tranzicija, zaštita zaposlenja i tržište rada u Hrvatskoj. Ured za socijalno partnerstvo u Hrvatskoj. Zagreb, Hrvatska.
88
Matković, T. and Biondić, I. (2003). Reforma zakona o radu i promjena indeksa zakonske zaštite zaposlenja. Financijska teorija i praksa, 27(4), 2003, pp. 515-528.
89
Of course, the importance of labour legislation should not be overrated, but it is without doubt an important determinant of the flexibility of the labour market.
90
44 Poverty, Unemployment and Social Exclusion
cost of labour, also hinders employment and invest-
ment. All this serves to protect people who have jobs,
but excludes those who are jobless. It is true that
the situation has markedly improved with amend-
ments to the 2003 labour legislation, but Croatia still
has a relatively high index89 of legal protection of
employment90. A majority of people of working age
who are not employed either have a very poor level
of education (without having completed, or having
only completed, primary education), or have the very
narrow knowledge and skills acquired in vocational
education. In addition to the inadequate educational
and qualification structure of the unemployed (in
other words, a lack of the required knowledge and
expertise), an additional hindrance is presented by
the limited availability of accommodation in the areas
where there are clear opportunities for employment.
Further restrictions are placed on the labour market
by both the income security and the relatively small
difference between the lowest salaries and various
benefits offered by the social welfare system (which
does not sufficiently encourage active job seeking),
and the widespread hidden economy. People who,
because of their education, are outside the world
of work and paid employment are also in danger of
passing on limited opportunities to their children. The
scarring effect of longer-term unemployment should
also be borne in mind, as it usually leaves an indelible
mark on a person’s chances of employment, profes-
sional development and promotion. It is more difficult
for the long-term unemployed to find a job, and even
when they do, they are at greater risk of losing it, so
that they become unemployed again, or accept work
in insecure or poorly paid jobs.
Apart from its high level, unemployment in Croatia
is also marked by the long average time to find a job,
which is more than two years. According to data from
the Employment Office, approximately half of the un-
employed look for employment for more than a year,
and as many as 30% are unemployed for more than
two years. In 1991, 9% of the unemployed were out of
a job for more than three years on average, whereas in
2002 more than a quarter of the unemployed (26.5%)
looked for employment for the same period of time.
This statistic reflects the situation as is (retained un-
employment reserves) because it presents the residual
values (what remains) of the entry into and exit from
records and cannot be used as a representative in-
Long-term Unemployment –
A Determinant of Social Exclusion
dicator of the duration of unemployment. In order to
obtain a real picture of the duration of unemployment,
the experiences of a group registered as unemployed
over a certain period of time should be monitored.
The trends of entry into and exit from unemployment
records in October 2002 may serve as an indicator.
A total of 21,400 people were registered; 22,200
were deleted from the records, among whom almost
10,000 were unemployed for less than six months,
and more than 6,000 for less than three months. Out
of those who were deleted in October, approximately
45% had been unemployed on average for about 11
weeks91.
4.3.2 What has been done?
Unemployed people who are fit for work account
for 47.6% (53,328)92 of all claimants (mostly of sup-
port allowance) in the social welfare system. Without
doubt, they are employable to a certain (albeit lim-
ited) extent and their inclusion in the world of work
is important, although challenging. Thanks to their
participation in various programmes, their possible
employment in the future may be a means of reduc-
ing the burden that working-age unemployed people
pose on the social welfare system. All measures in
this area aim to reduce the number of long-term un-
employed and the number who become long-term
unemployed, in particular by assisting the long-term
unemployed to find a job. The existing problems may
be alleviated by an ALMP, special programmes of
pre-service and in-service training targeted at specific
groups, and programmes aiming to overcome specific
personal obstacles to employment. Precise guidance
and systematic assistance in line with the particular
needs of the beneficiaries should be the main features
of the new programmes.
As in many other former socialist countries, interven-
tions on the labour market in Croatia have more
frequently been applied in order to temporarily stem
unemployment (for example, through subsidising
employment and programmes of public works), than
for the unemployed to be given an opportunity to
acquire knowledge and skills, as well as information
required for finding a job. Today, a much more target-
ed approach needs to be used, so that the activities
Croatian Office for Employment (2002). Mjesečni statistički bilten, No. 10. Croatian Office for Employment. Zagreb, Croatia.
91
Ministarstvo rada i socijalne skrbi / Ministry of Labour and Social Welfare (2002). Godišnje izvješće o primijenjenim pravima socijalne skrbi, pravnoj zaštiti djece, mladeži, braka, obitelji i osoba lišenih poslovne
92
sposobnosti te zaštiti tjelesno ili mentalno oštećenih osoba u Republici Hrvatskoj u 2001. godini. Ministarstvo rada i socijalne skrbi, Uprava socijalne skrbi. Zagreb, Croatia.
For more details on the lessons learned in other countries, see Davies, S., Hallet, M., (2001). Policy responses to regional unemployment: Lessons from Germany, Spain and Italy. Economic Papers: No. 161.
93
Directorate-General for Economic and Financial Affairs. European Commission http://europa.eu.int/comm/economy_finance.
Dorenbos, R., van Winden, P., Walsh, K., Svaljek, S., Milas, G. (2002). Evaluation of program of public works in Croatia - Final report. NEI Labour and Education and T.E.R.N. Rotterdam, Netherlands.
94
are directed at addressing specific requirements on Among all social welfare
the labour market and at certain groups with distinct
needs93 .
claimants (mostly of
support allowance),
Unfortunately, there is no comprehensive data and unemployed people
research available in Croatia, so the effects of ALMP who are fit for work
may be assessed only intuitively. Until recently, edu-
cation and training programmes for the employed
account for 53,328 or
and the unemployed were carried out on a very small 47.6%.
scale, primarily because of the shortage of financial
resources. In recent years, activities in this area have
increased, and they have been devoted in consider-
able part to social welfare beneficiaries who have
participated in a programme of public works. As in
developed countries, the programme of public works
in Croatia has not focused on building large infra-
structure facilities, but on socially useful community
activities, such as care for the elderly, cleaning up and
preparing land for cultivation, reconstruction, and so
on. The majority of these activities are not profitable
and therefore commercial companies are not interest-
ed. This means that bodies of State and local authori-
ties are mostly responsible. The main benefit of public
works is not immediate economic gain, but the great-
er encouragement given to unemployed people, for
whom there is a very low demand on the labour mar-
ket, to join the labour force. The programme therefore
targets unemployed people who do not have any
other employment opportunities at that time. These
are people over 40 years of age, people with a certain
level of disability, and also the young and untrained. A
study of the programme94 seems to support the con-
clusion that taking part in the programme does not
directly increase a participant’s likelihood of finding
employment, but it at least does not reduce it. When
research was carried out into assistance provided by
the programme of public works, almost all of the re-
spondents (96.9%) said that the public works helped
them in some way at least. It is true that the majority
of the participants stated that the programme helped
their financial situation. Unfortunately, all other results
(such as assistance in making social contacts, building
confidence and acquiring knowledge and skills) were
much less stressed. Those results indicate that partici-
pating in the programme of public works in Croatia
may (at least) be partially considered a temporary way
of overcoming financial problems.
Poverty, Unemployment and Social Exclusion 45
Long-term Unemployment –
A Determinant of Social Exclusion

Since the high level Although expenditure on ALMP in Croatia has in-
creased, there are serious doubts about the effective-
of unemployment, ness of these programmes95, with problems related
particularly long-term to their short duration and the inconsistency in the
unemployment, is one provision of funding. Various programmes were
of the main causes of started and yielded better results than expected, but
they were interrupted, mostly due to a lack of money.
poverty in Croatia, a Greater attention and financial support was devoted
more flexible labour
to subsidising employment, and not to improving job
market, by creating seekers’ knowledge and skills. As far as the local level
a greater number of is concerned, cooperation needs to be established or
improved between the Croatian Employment Office
jobs, particularly for and local projects implementing an active employ-
workers with lower ment policy, especially targeting the long-term unem-
qualifications, would ployed and welfare claimants.
probably contribute
Not enough has yet been done to increase the flex-
to the alleviation of ibility of Croatian labour legislation. Critics of the
poverty. flexible labour market note that this can also have an
adverse impact on poverty because of the emergence
of low paid and insecure jobs. However, since the
high level of unemployment, particularly long-term
unemployment, is one of the main causes of poverty
in Croatia, a more flexible labour market, by creating
a greater number of jobs, particularly for workers
with lower qualifications, would probably contribute
to the alleviation of poverty. Even if it actually led to
the emergence of a new class of employed who were
below the poverty line, greater flexibility should not
necessarily be considered a bad solution because
employment in low-paid jobs is actually often the
first step towards better-paid jobs and emerging
from poverty96. Since the reform of the institutional
framework of the labour market has coincided with a
cycle of economic expansion, in the coming years, a
synergy of positive effects on the labour market can
also be expected: continued growth in employment
with a reduction in the level of overall unemployment
and long-term unemploymet.

Box 4.3.: Mreža

Mreža (the Network) is an organisation working to provide employment advocacy and encourage the
creation of the ‘knowledge society’. It was a winner of the 2005 European Computer Driving Licence
(ECDL) prize, awarded by the Foundation for Electronic Literacy. Through its educational programmes,
which include courses, seminars, workshops, and other activities, Mreža has made a significant contribu-
tion to the advancement of electronic literacy in Croatia. The organisation has helped many citizens to
acquire new knowledge (ECDL accredited), thus giving them access to positions requiring more qualifica-
tions. Mreža works with various social groups, including the unemployed, blind and visually impaired,
university and elementary school students, Croatian veterans, and people with substance dependency
problems.

4.4 Conclusion Developing social dialogue on all levels, particularly

The reform of labour legislation to improve flexibility
needs to be expanded and reinforced by reforms
to the judiciary and the system for resolving labour
disputes. This is to ensure that those most affected by
this reform (workers with lower levels of education)
receive more equitable treatment throughout the
employment and legal systems. Additional efforts
should be made soon to settle labour disputes more
effectively. Increased efforts also need to be made to
inspect unregistered workers and combat the grey
economy.
with small and medium businesses, is key to develop-
ing good working conditions. Attention also needs to
be focused on the segment of the employed who, al-
though they are working, have a very low income and
remain below the poverty line. In relation to this, spe-
cific instruments of social policy should be created,
aiming to distribute the burden of the reform more
equitably between all members of society and to pre-
vent further fragmentation of the labour market.
For the majority of the long-term unemployed, it is
very difficult to emerge from poverty and related

Babić, Z. (2003). Uloga aktivne politike na tržište rada u Hrvatskoj. Financijska teorija i praksa, 27(4), 2003, pp. 547-566
95

Šošić, V. (2005). Siromaštvo i politike na tržištu rada. Financijska teorija i praksa, 29(2), 2005, pp. 75-96.
96

46 Poverty, Unemployment and Social Exclusion

Long-term Unemployment –
A Determinant of Social Exclusion
social exclusion, so they are forced to permanently
rely on the social welfare system. The threat of grow-
ing long-term unemployment and poverty among
welfare claimants at a time of economic recovery and
growth has a great impact on social exclusion and the
disruption of social cohesion and solidarity. ALMP is
considered (and not only in transition countries) as a
universal tool for increasing employment and, conse-
quently, for reducing unemployment. It is sometimes
claimed that unemployment could be resolved im-
mediately if there were only sufficient funds for im-
plementing policy measures. For transition countries
such as Croatia, it seems much more useful to invest
in the “quality“ of ALMP, rather than quantity. Quality
here means a coherent framework of measures with
distinct components that mutually reinforce each
other in alleviating long-term unemployment and
assisting the people it affects. This framework would
involve additional measures targeting the long-term
unemployed or those at greatest risk of long-term
unemployment, as well as assistance through one-
to-one counselling for unemployed people to help
them make choices in line with their needs. It would
also include choosing from a range of possibilities
and support for people with specific needs, as well as
cooperation and partnership with other services and
non-governmental, non-profit organisations (NGOs).
Currently, one of the top priorities of Croatia’s eco-
nomic policy is dealing with the low employment
rates or, in other words, increasing employment.
There is obviously a strong inter-relation between
poverty, education, employability and long-term
unemployment. The problems that many of the long-
term unemployed face are mostly multidimensional,
and frequently include a low level of education and
motivation. Croatia already has active and passive
measures to assist the unemployed. Employment of
the long-term unemployed should be encouraged,
and appropriate programmes of work may improve
their social inclusion. At the same time, evaluations
of the real efficiency of individual measures over The coherent framework
time have not been conducted. This can be tackled
by introducing new techniques (tracking studies) to
of the Active Labour
collect data on results obtained. Furthermore, job Market Policy would
creation through various programmes enables the involve additional
fight against long-term unemployment to begin. It is measures targeting
well known that it is crucial for the unemployed not
to miss out on the experience of work (i.e. the chance those at greatest
to acquire knowledge and skills) and ties with the risk of long-term
labour market. The supply of jobs and employment unemployment, as well
within various programmes, such as public works,
as assistance through
may have greater benefits than programmes of in-
service training, pre-service training and professional one-to-one counselling
development. for unemployed people,
support for people
ALMP programmes carried out in the wrong way may
waste resources, be inefficient and counterproductive,
with specific needs,
and may cause the currently employed to be pushed as well as cooperation
out of jobs. In contrast, carefully implemented pro- with other services and
grammes seem to increase employment, have an in- non-governmental
significant influence on employed people losing their
jobs, enable the creation of real value-added, and may organisations.
effectively increase the earnings of workers with low-
er educational qualifications. There are several golden
rules and criticisms relevant to every programme: jobs
that have a greater probability of increasing future
earnings are generally more expensive and harder
to create, while jobs that are closer to real jobs and
apparently more useful to the community also have
a greater tendency to push out workers in the pub-
lic sector. Smaller-scale employment programmes
should be planned and conducted, from which les-
sons can be learned that may help with larger pro-
grammes in the future. Furthermore, extensive addi-
tional training and education programmes, targeting
large groups of the unemployed, have rarely proven
to be good investments, either for the community or
for the programme participants. On the other hand,
detailed and precisely targeted programmes yield
good results.
Poverty, Unemployment and Social Exclusion 47
Chapter 5:
Discrimination -
A Mechanism of Social Exclusion
Key factors for the This chapter outlines the relationship between
discrimination and social exclusion. Discrimination
establishment of the link means that a certain group of people experiences
between discrimination unequal treatment in terms of differentiation, exclu-
and social exclusion sion, or limitation, or, on the contrary, is placed in a
are the relativity more favourable position in relation to other groups.
Discrimination may be based on race, social or income
action and dynamic status, birth, culture, age, gender, or sexual orienta-
character of social tion, as opposed to equality, inclusion and unlimited
relations at various recognition or exercise of human rights and basic
freedoms (Universal Declaration of Human Rights,
levels (interpersonal,
International Convention on the Elimination of All
inter-group and Forms of Racial Discrimination). There are two types
institutional) as well as of discrimination: direct and indirect discrimination.
various aspects of life Direct discrimination occurs when a certain group’s
difference is the main reason for unequal treatment.
and work (including Indirect discrimination is hidden behind measures,
participation in the local criteria or procedures that are seemingly neutral, but
community, culture, result in certain groups being placed in an unequal
education, economy position97. On the other hand, measures of ‘positive
discrimination’ are possible, whereby certain social
and the labour market, groups that have traditionally been discriminated
social and health care, against in certain situations are treated preferentially.
political processes and A strict application of the principle of neutrality may
additionally reinforce the consequences of long-term
decision-making).
discrimination. Positive discrimination hence serves
as partial compensation for previous discrimination.
Measures like these are in many cases (for instance, a
national minority’s education in their mother tongue)
considered to be unquestionable achievements of
civilisation that are rarely or never challenged. But
positive discrimination may actually result in nega-
tive consequences for individuals or groups who are
not responsible for the initial discrimination, and who
therefore frequently offer resistance. Positive discrimi-
nation may in this way contribute to a negative per-
ception of the group facing discrimination.
Discrimination manifests itself both at an individual
and institutional level. Individual discriminatory be-
haviour is an expression of personal prejudice, while
institutional discrimination is manifested through
the processes, rules, attitudes and behaviour of
public and private organisations that contribute to
discrimination by prejudice, ignorance, imprudence
and stereotypes98. A reciprocal effect may result: the
discriminatory processes of organisations confirm and
Complete neutrality of measures, criteria and procedures for each individual is very often not possible, or even desirable. For example, public policies are defined with certain goals, and by definition
97
have different effects on different individuals or groups. It is therefore important to differentiate discrimination from legitimate differences in the treatment of individuals and groups that come about in
a transparent manner and on the basis of democratic processes.
Oakley, R. (2000). Institutional racism: Lessons from the U.K. Newsletter no. 4. European Roma Rights Centre.
98
The term “learning disabilities“ designates a shift from the understanding of mental retardation “as a significant limitation in the overall functioning of an individual…characterised by significant below-
99
average intellectual functioning“ to a definition of a condition that is influenced by interactions with the social environment. Learning disabilities are thus defined according to the “levels of support that
an individual needs in order to function successfully in a social environment, such as support in intellectual functioning and in learning, psychological and emotional support, physical and healthcare
support and support with the environment“ (Teodorović, B. (2005). Modeli u rehabilitaciji osoba s teškoćama u razvoju, u Zapošljavanje uz podršku. Udruga za promicanje inkluzije. Zagreb, Croatia).
48 Poverty, Unemployment and Social Exclusion
strengthen individual prejudice, and individual stere-
otypes contribute to the acceptance by organisations
of discriminatory practices. Every country is obligated,
in accordance with its abilities, to ensure the precon-
ditions and create effective mechanisms for prevent-
ing different types of discrimination.
The complexity of the mechanisms resulting in dis-
crimination in the Croatian context is illustrated here
by the examples of two vulnerable groups: Roma
children and people with learning disabilities99 in
education. Former addicts, homeless people, people
who are HIV positive, sexual minorities, members of
other national minorities, children without parental
care and the physically challenged are all members
of vulnerable groups. The choice of these two groups
is therefore arbitrary; they have been selected for
the purpose of illustrating more general processes.
However, it can be said that both Roma and people
with learning disabilities face long-term and profound
discrimination in the education system, and aware-
ness of this is only now being seen in Croatian public,
political and academic discourse.
The position of each group will be considered in rela-
tion to the effects of discrimination, discriminatory
processes concerning equality before the law, their
position in the education system, professional norms
and practice, and the challenges we have identified.
This focus on two groups may contribute to the per-
ception that there is a hierarchy of deprivation, or to
the idea that discriminatory processes are different
for different groups. However, the aim is to demon-
strate different types of discrimination in Croatia on
the basis of the two examples, and link them to the
exclusion and inclusion processes which affect indi-
viduals, regardless of their age, sexual orientation,
gender, ethnicity, language, physical ability, mental
health, health condition or income. Key factors for the
establishment of the link between discrimination and
social exclusion are the relativity action and dynamic
character of social relations at various levels (interper-
sonal, inter-group and institutional) as well as various
aspects of life and work (including participation in the
local community, culture, education, economy and
the labour market, social and health care, political
processes and decision-making).
Discrimination -
A Mechanism of Social Exclusion
The differentiation between the concepts of citizen-
ship as a legal status and citizenship as a social and
political role may serve as a starting point for analys-
ing the impact of discrimination. At the formal and
legal levels, the Constitution guarantees civil status
and the prohibition of discrimination for all Croatian
citizens. However, if civil status is examined at the
level of roles and influences in social, economic and
political relations, the key factors are the ability of cer-
tain groups to access material and non-material assets
(for example, participation in social and cultural initia-
tives, educational, economic, and political activities),
distribution and re-distribution, and the opportunity
for their voice to be heard in public100. The obstacles
that certain groups meet when expressing their opin-
ion and in achieving access are related to deep-rooted
prejudice and the distance created towards certain
groups, and institutional practice characterised by
“silence“, negligence or insufficient activity.
Identifying actual discriminatory mechanisms and
processes is generally considered difficult, but some
authors point out that it is possible on the basis of
statistical data, even when there are no documented
specific individual cases101. That is to say, if there are
no correct and relevant data, but if a certain group
has been disproportionately represented in com-
parison with the majority in the existing data, the
existence of discriminatory processes is possible102.
Efforts should be made to analyse whether certain
differences partly result from the activities of legiti-
mate market mechanisms or personal choice, whilst
taking into account situations in which individuals or
groups have markedly narrow choices (a fact that may
indicate discrimination). At the same time, many mar-
ginalised groups resist the collection of data, thereby
showing their fear that it will foster discrimination
instead of preventing it. Groups affected by discrimi-
nation therefore need to be included in the process of
deciding on categories of data to be collected, as well
as in their collection and interpretation.
Discriminatory practices will be illustrated by the ex-
amples of the education of Roma children and people
with learning disabilities, and the illustration will be
followed by a discussion of the processes involved.
Due to its importance, the field of education has
been singled out from other areas of participation in
society. The right to education is a basic human right,
a generator of equal opportunities and a spur to the
reduction of social exclusion.
Phillips, A. (1994). Pluralism, Solidarity and Change. In The Lesser Evil and the Greater Good. Rivers Oram Press.
100
Freeman, J. (1970). Institutional discrimination. www.jofreeman.com/womensociety/institidiscrim.htm.
101
Ibid.
102
Ringold D. (2000). Roma and the Transition in Central and Eastern Europe. World Bank.
103
European Roma Rights Center (2005). Report on Position of Roma Women in Croatia. http://www.errc.org/cikk.phph?cikk=2124
104
5.1 The Roma Efforts should be made
In the 2001 census, 9,463 people in Croatia declared to analyse whether
themselves as members of the Roma ethnic minority. certain differences
However, the Council of Europe estimates the number between social groups
of Roma who live in Croatia to be much higher,
partly result from the
between 30,000 to 50,000. Due to the lack of other
official data, this paper uses the Council of Europe’s activities of legitimate
assessment. The reasons for the lower number and market mechanisms
the lack of accurate data on the Roma are various. or are they a result of
On one hand, they are related to the fact that some
personal choice, whilst
Roma could not attain Croatian citizenship due to the
complexity of legal, administrative and practical regu-
taking into account
situations in which
lations, and, on the other hand, to citizens’ individual
assessment that their life would be easier if they de- individuals or groups
clared themselves as belonging to the majority group have markedly narrow
or to some other minority, and so avoid the stigmati-
sation related to self-determination and to belonging
choices (a fact that may
to the Roma minority. indicate discrimination).
The access of the Roma to material resources, their in-
teraction with local, regional and national institutions,
and their levels of participation in economic, educa-
tional, cultural and political activities are intertwined
on many levels and made difficult by a series of social-
ly determined obstacles. During processes of political
and economic transition marked by relatively weak-
ened government institutions, the narrowing of the
labour market and lower levels of tolerance among
the wider social classes, the Roma are in a more vul-
nerable position in comparison with other groups of
the population in all central European countries103.
Their lower levels of educational achievement and
the lack of competitive professional skills lead to dif-
ficulties in entering the world of labour and in main-
taining employment. According to a survey carried
out in 2001 by the “Better future“ (Bolja budućnost)
association of Roma women on the number of people
employed and the types of jobs they had, only 1% of
those interviewed had a full-time job in the City of
Zagreb region, from among a sample of 122 people
out of whom 63 were women. Most people employed
(19%) did some kind of work at home, while 16% were
occasionally involved in the gathering of secondary
raw material. Women were mostly housewives, and if
they had a job, it was mostly related to the grey econ-
omy, such as selling goods at markets and the collect-
ing and reselling of secondary raw materials104.
Poverty, Unemployment and Social Exclusion 49
Discrimination -
A Mechanism of Social Exclusion

The Roma exercise Participation in the “grey“ economy is a consequence
of the inability to earn an income by performing for-
most of these rights, mal economic activities, and represents an unsteady
except for the right and unreliable source of income for a limited number
to education in the of people. For that reason, most Roma live below the
poverty line and depend on social welfare. According
language of the to data from the National Programme for the Roma,
national minority. They Roma make up 13.5% of the recipients of the most ba-
are currently the only sic forms of social welfare (support allowance, one-off
financial allowance, allowance for the purchase of fire-
minority in Croatia
wood and allowance for the purchase of obligatory
not to exercise this textbooks), although they account for only 0.21% of
right, although only six the total population according to official statistics105.
percent of Roma families Taking into account the unfavourable economic situ-
ation and the high percentage of the unemployed in
speak the Croatian society in general, the overall impression is that the
language. Roma are a burden on society.
5.1.1 Discrimination
“Lost in the educational system“108
There are no statistics on the number of Roma chil-
dren, and the data on the total number of Roma are
unreliable. It is estimated that about 1,500 Roma
pupils attended basic education in 2002. Two thirds
of them actually enrol in schools, but usually leave
school in the third or fourth grade109. The assumption
that leaving school implies self-exclusion110 needs to
be carefully examined given the obstacles in the edu-
cational process that Roma pupils face and the fact
that the members of the Roma community, due to
other structural limitations, are almost entirely unable
to understand the connection between successful
education and social and economic success111. There
are no accurate data on Roma pupils’ educational
achievements, which is usually attributed to the fact
that according to law pupils are not registered accord-
ing to their nationality.

Equality (only) before the law The position of Roma children in the education sys-
tem is conditioned by social, economic and historical
The constitutional principles of the protection of hu- factors, thus emphasising the need for the “organisa-
man rights and basic freedoms, personal and political
tional conception of the system for the education and
freedoms, economic, social, cultural rights, rights to
training of the Roma to take into account the require-
education and equality before the law are imple-
ments of the environment (within the framework of
mented through a developed system of legal regula-
the regular school system) and of the Roma, and to
tions and bodies. The protection of minority rights
aim at the creation of a new integrative school, and
is provided for by the Constitutional Act on National
not at the mechanical reconstruction of the existing
Minorities, the Act on the Use of the Language and
one“112. An overview of the models for Roma educa-
Script of National Minorities, and the Act on Education
tion in Croatia shows that both the separation and
and Training in the Language and Script of National
the integration model have been applied with greater
Minorities. These acts guarantee the right to politi-
or lesser degrees of success. The model of separate
cal participation, the right to cultural autonomy, the
right to the use of language and script, and the right classes organised according to a modified educational
to education in the language of the national minority programme applied in the 1950s resulted in a larger
under prescribed circumstances. number of Roma pupils attending school, but at a
lower level of knowledge and reduced opportunities
The Roma exercise most of these rights, except for the for interaction and integration. Smaller pilot studies
right to education in the language of the national mi- indicate that integrated education in classes with
nority. They are currently the only minority in Croatia a large number of Roma pupils leads to a range of
not to exercise this right, although only six percent difficulties noted by teachers, namely insufficient
of Roma families speak the Croatian language106. knowledge of the Croatian language, differences in
Officially, the main obstacles in exercising this right the age of pupils enrolled in the first grade (from 7 to
are of a technical and organisational nature: the lack 11 years of age), lack of punctuality, absenteeism, and
of teachers proficient in the language of the national poor conditions for studying at home113. As a result of
minority, the non-standardised language that the various limitations in the educational system, schools
Roma speak107, and the lack of textbooks. often develop their own mechanisms for dealing
105
Ured za nacionalne manjine Vlade RH / Office for National Minorities of the Government of the Republic of Croatia (2003). Nacionalni program za Rome / The National Programme for Roma. Zagreb, Croatia.
106
UNDP, Regional Bureau for Europe and Commonwealth of Independent States (2005). Faces of Poverty, Faces of Hope. UNDP, Bratislava, Slovak Republic. http://vulnerability.undp.sk.
107
The Roma in Croatia speak romani chib (originating from the Ancient Indian group of languages) and ljimba d’bjas (linked to the Old Romanian dialects).
108
Hrvatić, N. (1994). Prema konceptualizaciji hrvatskog obrazovnog modela za romsku djecu. In Glas Roma: Odgoj i obrazovanje djece Roma u Hrvatskoj.
109
Ured za nacionalne manjine Vlade RH / Office for National Minorities of the Government of the Republic of Croatia (2003). Nacionalni program za Rome / The National Programme for Roma. Zagreb, Croatia.
110
The self-exclusion of the Roma is often used as the main explanation for exclusion. However, it seems that the strategy of self-exclusion needs to be considered in the light of the strategies for separa-
tion–integration–assimilation implicit in the measures and practices of State institutions and in relation to the room for negotiation about identity and cultural characteristics.
111
Hrvatić, N. (2000). Odgoj i izobrazba Roma u Hrvatskoj. Društvena istraživanja.
112
Ibid, p. 270.
113
Pintarić et al (1994). Utjecaj socioekonomskih faktora na uspjeh (ili neuspjeh) romske djece u školi. In Glas Roma: Odgoj i obrazovanje djece Roma u Hrvatskoj.

50 Poverty, Unemployment and Social Exclusion

Discrimination -
A Mechanism of Social Exclusion

with these challenges. Sometimes this may result in Roma children – they say that they would rather kill One of the Roma in
controversial practices, as for example in Međimurje. their children than allow them to sit at the same desk
The Deputy Ombudsman warned in 2000 of discrimi- as Roma children. They all complain that our children
Međumurje says: “The
nation towards Roma pupils who attended separate are dirty. They are not dirty because they want to be, children here suffer
classes in 13 schools in the Counties of Međumurje but because of the poverty they live in. They have discrimination at
and Varaždin. Upon her request, the responsible nowhere to wash themselves. They are educated on
authority submitted a report that was assessed as the basis of a reduced curriculum similar to the one
school. The parents of
unsatisfactory and the case was made public, but used for the education of children with developmen- non-Roma children are
there were no changes in schools. One of the Roma tal difficulties, and as a result they have problems later against their children
in Međumurje says: “The children here suffer discrimi- when they want to enrol into a secondary school.
being in the same class
nation at school. The parents of non-Roma children The children are told it is the bes for them. We are
are against their children being in the same class as helpless114. as Roma children – they
say that they would
rather kill their children
Box 5.1: Protest by non-Roma parents than allow them to sit at
At the beginning of the academic year 2001/02, the parents of non-Roma children organised a protest in the same desk as Roma
a school and refused to allow Roma children to enter. According to the European Roma Rights Center’s children“.
(ERRC) report, “more than 60% of Roma children in schools in the County of Međimurje, and in one school
in the County of Varaždin, attend separate classes… and the curriculum itself, on which the education
of the Roma is based, is inferior to the programme for the majority population“ (Zarez, No. 88, 2002). The
Ministry and the schools responded that interrelated factors were causing parents to object to education
of Roma children even in separate classes. The factors mostly related to the “deficiencies“ of the Roma
children noted by the school authorities, namely insufficient previous knowledge for them to be able to
attend classes with other students, as well as inadequate levels of hygiene and social skills; and then also
to more “objective“ factors such as poor transport connections between the places where they lived and
the schools, which made it easer to organise the transport of all Roma children in one shift, the insuffi-
cient number of non-Roma children for mixed classes to be set up, and finally the prejudices of the major-
ity population who protested if a larger number of Roma children attended the same class as non-Roma
children (Sources: Round table – Roma rights in education, Croatian Helsinki Committee, 2004; Memedi,
R., Papa J. (2001). Denied a Future? The right to education of Roma/Gypsy and Traveller Children in Europe.
Volume I: South-eastern Europe. Save the Children. United Kingdom.

“The Međimurje case“ may be observed as part of the
process in which the “silence“ of the responsible au-
thorities led to a failure to implement a series of vari-
ous compensatory measures aimed at ensuring equal
opportunities, such as preschool education, Roma
assistants in primary school classes, an extended
school day, work on tackling prejudice, and measures
designed to promote integration such as organising
additional classes on the Roma culture and language
for all pupils.
Professional norms and practices
Preconceptions concerning the Roma expressed by
the public and institutions based on the “culture of
poverty“ thesis as opposed to structural obstacles
may have a decisive influence on the behaviour of
public servants at middle and higher levels of man-
agement. The work of Lipsky who, from a sociological
point of view, analyses the interconnection between
individual behaviour on the one hand, and the work
of public servants, professional norms and their influ-
ence on practices and higher management structures
on the other hand, may be useful when analysing the
behaviour of public servants and its influence on the
growth or reduction of discrimination. That is to say,
middle-ranking public servants (such as doctors, head
teachers of kindergartens and schools, etc.) discharge
their duty in accordance with social and professional
norms on the basis of a series of measures, ordi-
nances, and decisions, but they also have room for
discretionary decisions and relative independence115.
If we add to this the “silence“ of public servants at a
higher management level who focus on achieving

Memedi, R., Papa J. (2001). Denied a Future? The right to education of Roma/Gypsy and Traveller Children in Europe. Volume I: South-eastern Europe. Save the Children. United Kingdom.
114

Lipsky, M. (1980). Street-level bureaucracy. Dilemmas of the Individual in Public Services. Russel Sage Foundation. New York, USA.
115

Poverty, Unemployment and Social Exclusion 51

Discrimination -
A Mechanism of Social Exclusion

Evidence from other results in areas which are not directly related to quan- Generally speaking, the nature of activities performed
tifiable results, it may be concluded that the separate by public servants requires the ability to use discre-
Central European education of Roma children is not an isolated case, tion when deciding on the type and quality of servic-
countries supports but actually the long-term practice of a number of es to be provided, so these can be tailored to specific
the introduction of schools. In this manner, the discretionary decisions of situations. However, if their scope of work is broad,
individual participants actually become the practice and the means for its performance limited, public
extended preschool of the institution116. Furthermore, when programmes servants develop various simplification strategies
programmes and measures are drawn up on the basis of the culture in order to cope with pressures and responsibilities,
(strongly advocated of poverty thesis, the Roma become objects, instead which management bodies then fail to sufficiently
of active subjects with an opportunity to act and to
by Roma NGOs) as and consistently evaluate and sanction17.
make their opinions heard.
one of the most
powerful vehicles for
equalising educational Box 5.2: Action against the Ministry
opportunities.
Supported by the European Roma Rights Center and the Croatian Helsinki Committee, 57 families brought
an action against the Ministry of Education, the local authorities of Međumurje and four primary schools
for segregation motivated by the claimants’ nationality. The Municipal Court in Čakovec dismissed the ac-
tion in 2002, and the County Court in Čakovec dismissed the appeal the same year. In December 2002 the
action was brought before the Constitutional Court of the Republic of Croatia, but even after two years no
answer was received. The case was then brought before the European Court of Human Rights.

5.1.2 Challenges crimination “for the easier integration of the Roma

Although awareness of the need to improve the posi-
tion of the Roma has existed for a long time, more
concrete measures have been introduced mainly due
to the influence of international actors. International
legal mechanisms have also been used as a basis to
flag up inappropriate practices, for example to advo-
cate the introduction of measures and programmes
that are new or that have proven to be effective on
the basis of foreign experience. The importance of
international support on the issue of Roma integra-
tion is also reflected in the participation of Council
of Europe representatives in the process of adopting
the National Programme for the Roma, 2003. The pro-
gramme briefly analyses the causes of the marginali-
sation and unfavourable position of the Roma in the
Republic of Croatia and outlines short, medium, and
long-term measures. It also identifies the ministries
and State institutions to be responsible for implemen-
tation and assessing costs in the areas of the judicial
system, local self-government, education (empha-
sised as a priority), health protection, employment,
social welfare, protection of the family, motherhood
and youth, and spatial planning. The measures are
intended for the Roma, but it is also envisaged that
they will have an effect outside the Roma community
since they aim at improving tolerance and non-dis-
into society“118. It is expected that the international
initiative the Decade of Roma Inclusion 2005-2015
will provide an additional impetus for the implemen-
tation of the measures in the National Programme
and the Croatian Government’s Action Plan.
The Roma initiatives also develop informal and in-
novative educational practices alongside the formal
education system. Some initiatives, such as the sum-
mer school, were supported by a group of experts
from the Teacher Education Academy in Zagreb. A
comprehensive model for the education of the Roma
was created on the basis of these experiences and on
the research that was conducted119. However, despite
the energy and creativity invested by non-govern-
mental organisations, most programmes in the area
of education encounter obstacles of an organisational
and relational nature in the process of negotiations
with institutions. It is rare to find initiatives that have
managed to consolidate their work and persuade
State institutions to take on their measures and serv-
ices. But Roma communities and members of profes-
sional circles which are investigating the conditions,
quality and success of the education of Roma children
are becoming more vocal. They have put forward con-
crete suggestions, such as:

Ibid.
116

Ibid.
117

Vlada Republike Hrvatske / Government of the Republic of Croatia. (2003). Nacionalna strategija jedinstvene politike za osobe s invaliditetom 2003. – 2006 / The National Strategy for Integrated Policy for People
118

with Disabilities from 2003 to 2006. Zagreb, Croatia.

Hrvatić, N. (2000). Odgoj i izobrazba Roma u Hrvatskoj. In Društvena istraživanja.
119

52 Poverty, Unemployment and Social Exclusion

Discrimination -
A Mechanism of Social Exclusion

- Preparation of Roma children for primary school
through a two-year preschool programme.
- Introduction of a an extended school day for Roma
pupils with supplementary and additional activities
using trained Roma assistants in order to connect
the pupils, the parents and the school.
- Setting up summer schools.
- Creation of a multicultural school environment.
Although some of these proposals have been ac-
cepted, they have not been fully incorporated into the
educational system.
Evidence from other Central European countries It is expected that the
supports the introduction of extended preschool
programmes (strongly advocated by Roma NGOs)
international initiative
as one of the most powerful vehicles for equalising the Decade of Roma
educational opportunities. The long term gains of a Inclusion 2005-2015 will
focused preschool programme which involves both
governmental and non-governmental actors can be
provide an additional
illustrated by the Bulgarian experience. Initiatives impetus for the
from the Czech Republic and Hungary show that joint implementation of the
efforts by national governments, local authorities,
measures in the 2003
parents and NGOs to support Roma children in pri-
mary education by designing and introducing various National Programme
teaching methods and supplementary activities can for the Roma and the
produce a diversity of models oriented to both pupils’ Croatian Government’s
educational needs and successful integration.
Action Plan.

Box 5.3: Initiatives from Bulgaria, the Czech Republic and Hungary

Poor knowledge of majority languages and differences in social status are major barriers to Roma children
attending school. Preschool attendance can help to bridge the cultural gap. In the middle of the 1990s in
the Stolipinovo area of Plovdiv, Bulgaria (one of the largest Roma neighbourhoods, essentially a ghetto), the
first summer preschool courses for bilingual children were organised by a local Roma NGO. Each preschool
group had a professional teacher and an assistant teacher from the Roma community. The results were im-
pressive. Within four months the children had acquired the necessary proficiency in the Bulgarian language
and important knowledge of society “outside their neighbourhood“. When school began, the Roma children
were already well integrated with the rest of the children. Subsequent monitoring showed that the drop-
out rate among these Roma children was the same as the overall drop-out rate. During the next few years,
the practice of focused preschool education for Roma children spread to other cities with sizeable Roma
minorities. In all cases, the results were similar: Roma children started the first grade with the necessary
knowledge and experience, as well as with higher self-esteem. The drop-out rate was negligible.
Based on these experiences, the government project entitled “Improving child welfare reform in Bulgaria“
launched in 2001-2002 contained a specific component targeting children from vulnerable groups. The
number of NGOs organising summer schools increased, as well as the number of children attending, and
families were given financial help to buy clothing and school supplies. The project had a profound impact
at the executive and legislative level. Namely, the Bulgarian Parliament passed the Public Education Act,
making preschool education obligatory and financed from the State budget. The Ministry of Education
and Science issued a directive regarding the integration of children from minorities, making the introduc-
tion of assistant teachers a standard element of preschool education for Roma children.
The Czech Republic introduced “The Balancing Steps in Education“ programme, which involves joint
preparation, planning and implementation by the Ministry of Education, Youth and Physical Education
and the Ministry of Labour and Social Affairs at the central governmental level and the Council for Roma
Community Affairs at the local level. The Ministry is working to develop guidelines for establishing pre-
paratory classes for Roma pupils and organises and pays for the training of teaching assistants, whose
role should be extended beyond that of pure “language translators“ to the role of “cultural intermediar-
ies“. County Councils, municipalities and NGOs are then tasked with implementation of the programme
at the local level through a model of schools with “all-day programmes“ and a model of multicultural
educational practice by teachers, pupils and ordinary citizens with the participation of a number of NGOs.
Another notable experience of supplementary school activities for Roma pupils is that of the
Rabinadranath Tagore Foundation School in the town of Ozd in Hungary. Besides providing mainstream
education, this school offers additional art classes, Roma language and culture are part of the cur-
riculum, and parents are included in the school environment (UNDP, Regional Bureau for Europe and
Commonwealth of Independent States (RBEC) (2003.) The Roma Human Development Report - Avoiding
the Dependency Trap. UNDP. Bratislava, Slovak Republic. p. 57, 61. http://roma.undp.sk)

Poverty, Unemployment and Social Exclusion 53

Discrimination -
A Mechanism of Social Exclusion

In 2000, a total of New initiatives are in progress which relate to tailor-
ing the educational process to the needs of children,
3,373 people lived in models of employment, improved housing, and the
24 institutions, out of mitigation of perceptions based on structural pessi-
whom there were 2,642 mism according to which the Roma have always been
in a deeply entrenched unfavourable position. These
people with learning
have originated not only from the civil sector but also
disabilities, 290 people from State and local institutions and international ac-
with impaired hearing, tors. However, the successes of individual, limited ini-
173 people with tiatives may not guarantee real changes in the system.
impaired sight and 268
5.2 People with Learning Disabilities
people with a physical
disability. Children In 2000, welfare centres recorded more than 9,000
people with various disabilities120. A total of 3,373
with special needs people lived in 24 institutions, out of whom there
account for 44.7% of the were 2,642 people with learning disabilities, 290 peo-
population of children ple with impaired hearing, 173 people with impaired
sight and 268 people with a physical disability121.
aged 0-18 living in Children with special needs account for 44.7% of the
institutions. population of children aged 0-18 living in institu-
tions122. The Croatian Association of Organisations
for People with Mental Retardation estimates that
about 20% of people with varying degrees of learning
disabilities have access to some type of services (in-
stitutional, day, half-day), while most live in families,
but with minimum or no professional assistance since
most institutions and services providing adequate
services are situated in larger urban centres123.
Obstacles to the integration of people with learning
disabilities are reflected in two mutually reinforcing,
and, in Croatian society, prevalent tendencies. These
are, on one hand, the prevailing attitude among most
professional staff that rehabilitation in large public in-
stitutions providing various types of specialist health,
therapy and educational services is more successful
and appropriate for people with learning disabilities
than a family atmosphere where they do not receive
appropriate and continuous support. The key features
of institutional care in Croatia are that the major part
of a person’s life (if not the whole of it) is spent there,
that the institutions are often isolated from the com-
munity, and contact with families is very limited.
Decisions about the manner in which people with
learning disabilities use the services of health and
educational institutions are made by experts, without
consulting the people with learning disabilities, and
sometimes without consulting their families124. A “de-
cision“ once adopted in such a manner is subject to
occasional assessments by boards which, according
to parents from the “Puž“ (Snail) association, last for
about ten minutes and involve an examination of vari-
ous medical reports, and more rarely a conversation
with the person in question. The “decision“ categoris-
es the person’s degree of “disability“ and stipulates the
form and type of treatment. The procedure does not
take into consideration the person’s abilities, the avail-
ability (or not) of the recommended type of treatment
and the need for a life that is as independent as possi-
ble. This kind of medical assessment very often results
in exclusion125. On the other hand, existing legal provi-
sions largely contribute to sustaining this tendency
towards institutional care which aims to alleviate the
person’s “disability“ and modify it according to the
requirements of the “average“ envionment126.

Box 5.4: Kindergarten enrolment

One mother said that they wanted to enrol their son, when he was three years old, in a regular kindergar-
ten which was 30 minutes away from their home and two minutes away from her workplace. They did
not succeed, although one employee supported his enrolment; they said that he was emotionally too
attached to his mother. As he was growing up, it became steadily more obvious that he needed the com-
pany of his peers and they enrolled him into a half-day programme at Ozana. Ozana is at the other side of
town from where they live. In the morning the mother drove her son there, then went to work, and then
went to pick him up again. When he enrolled in a special school which is also at the other end of town,
they went through the same procedure. She calculated that she did an average of 1,800 km per month.
She uses the right to work part time to be able to spend more time with her son, although she has to
spend most of that time on transportation due to the lack of services and lack of understanding from the
community (A mother, member of “Puž“).

Radočaj, (2002). Elementi socijalne politike i socijalne skrbi u Hrvatskoj. UNICEF.

120

Bratković, D. (2005). Institucionalni procesi koji utječu na marginalizaciju osoba s teškoćama. Tekst za potrebe zbornika Mobilizacija i razvoj zajednica u Hrvatskoj (in press).
121

Ajduković, M. (2004). Pristupi zbrinjavanju djece bez odgovarajuće roditeljske skrbi u Europi. In Revija za socijalnu politiku, 3-4, 2004.
122

Bratković, D. (2005). Institucionalni procesi koji utječu na marginalizaciju osoba s teškoćama. Tekst za potrebe zbornika Mobilizacija i razvoj zajednica u Hrvatskoj (in press).
123

Teodorović B. (2005). Modeli u rehabilitaciji osoba s teškoćama u razvoju. In Zapošljavanje uz podršku. Udruga za promicanje inkluzije. Zagreb, Croatia.
124

Handicap International, Regional Office for South East Europe. (2004). Beyond De-institutionalisation. Disability Monitor Initiative.
125

Bratković, D. (2005). Institucionalni procesi koji utječu na marginalizaciju osoba s teškoćama. Tekst za potrebe zbornika Mobilizacija i razvoj zajednica u Hrvatskoj (in press).
126

54 Poverty, Unemployment and Social Exclusion

Discrimination -
A Mechanism of Social Exclusion
Families are often forced to make significant efforts
and investments to overcome the insufficient provi-
sion of services in the community (both those of a
specialist nature and those aiming to increase the
independence and integration of people with special
needs) together with the physical and organisational
obstacles posed by general public services (such as
regular kindergartens, schools, healthcare institu-
tions, cultural institutions and recreation centres). If
a disabled person is separated from his or her family
and community in order to attend a special training
programme, social ties are often broken and the skills
acquired are suitable only for a limited number of pro-
fessions and are not competitive on the labour mar-
ket. People return to their families afterwards with
low chances of finding a job (if they do, it is primarily
in “sheltered“ workshops) and the only opportunity
open to them is involvement in the activities of day
centres or parents’ associations.
5.2.1 Discrimination
Equality (only) before the law
The right of people with special needs to integrated
education was recognised by law in 1980. People with
disabilities exercise a large number of other rights,
such as the right to personal disability allowance, the
right to a certain sum after the death of parents, an al-
lowance for assistance and care, assistance for the per-
sonal needs of users, the right of parents with children
with more serious disabilities to take periodic leave
from work until the child reaches seven years of age,
and part-time work through the system of pension
and disability insurance, social welfare and protection
Box 5.5: The needs of children with disabilities
According to information provided by the Office of the Ombudsman for Children (see Introduction by
the Advisor to the Office of the Ombudsman for Children, www.udrugapuz.hr), the needs of children with
disabilities include:
- integration (deinstitutionalisation) and the right to choose a school and educational environment,
- a school which is motivated and prepared for integration,
- to be considered as top priority when parents and schools are assessing the sense and value of adminis-
trative procedure,
- escort and transport to school,
- conditions enabling parents to provide adequate care, and
- provision of appropriate housing.
Vlada Republike Hrvatske / Government of the Republic of Croatia. (2003). Nacionalna strategija jedinstvene politike za osobe s invaliditetom 2003. – 2006 / The National Strategy for Integrated Policy for People
127
with Disabilities from 2003 to 2006. Zagreb, Croatia.
and labour legislation. The Social Welfare Act provides Families are often forced
the right to care outside the disabled person’s family,
such as in a foster home or in a social institution.
to make significant
efforts and investments
The National Strategy for Integrated Policy for People to overcome the
with Disabilities considers that the current degree insufficient provision
of educational integration is unsatisfactory, despite
of services in the
“good“ legal regulations, for a number of reasons.
These range from material and organisational factors community (both those
(limited funds for education, architectural obstacles, of a specialist nature and
poor spatial and physical working conditions and the those aiming to increase
patchy network of institutions) to factors relating to hu- the independence and
man resources (lack of workers, poorly trained workers,
and negative attitudes of society)127. The list of objec- integration of people
tives and bodies responsible for their implementation with special needs).
gives the impression of dedication to the gradual inclu-
sion of people with various disabilities. However, the
failure to achieve objectives and lack of funding may
present a serious obstacle to progress in this area.
In addition to governmental bodies and commis-
sions (including the Commission for Human Rights
and the Commission for People with Disabilities), the
Ombudsman’s Office, the Office of the Ombudsman
for Children, and the Office of the Ombudsman for
Gender Equality have also been established in order
to ensure equality before the law. Independent bod-
ies play an important role in supervising State bodies
and representatives to ensure the consistent ap-
plication of legal provisions, especially those whose
content presents a challenge. This is particularly im-
portant, as anti-discriminatory provisions are set out
in separate pieces of legislation.
Poverty, Unemployment and Social Exclusion 55
Discrimination -
A Mechanism of Social Exclusion

Regulations that define Education: separated or integrated?
the position of people Education and vocational training for people with
with learning disabilities learning disabilities is carried out in institutions of a
arise from the medical residential nature, special schools or regular schools
following a special programme. We have already men-
model of deficit in which tioned the typical characteristics of the institutional
a person appears before educational model that result in exclusion. People
a board at various key with more serious or multiple disabilities mostly live
in institutions run by the Ministry of Health and Social
stages of life, and the Welfare. Due to prevailing attitudes, it is normally
board “categorises“ held that it is almost impossible to educate people
the person’s degree of with learning difficulties. It seems that there are not
“impairment“, adopts enough adequate general educational programmes,
nor are there programmes aiming to develop the
a decision and decides skills needed for integrating into wider society, due to
on the treatment on the a lack of coordination between the relevant bodies.
basis of their knowledge In fact, these institutions tend to focus on the pupils’
functional rehabilitation and on developing their cog-
and conviction that they nitive abilities128.
are acting for the best.
People with learning Work with pupils with moderate or more serious dis-
disabilities lose control abilities in special primary schools is also oriented
towards the teaching of cognitive subjects, with
over their own lives in insufficient attention to the individual and low expec-
these processes. tations from the community129. Special schools are,
according to the parents from the “Puž“ association,
a kind of community of similar people where, due to
the size of groups, there is little time for individual
work based on each child’s motivation and interests.
Children with minor disabilities, that is, children who
only need some assistance in learning or those chil-
dren that are designated in the diagnostic procedure
as having “mild mental retardation“ are often placed
in regular schools130. Pupils with minor disabilities
may attend the regular classes and follow an adapted
programme or special classes for pupils with the same
disabilities. When education takes place under these
“special conditions“, social interaction with peers
comes to mean occasional encounters during school
breaks and special events, and at best, during joint
classes, such as art or music.
The cumulative effect of the diagnostic and catego-
risation process, and in particular, lack of individuali-
sation, results in the limited integration of children
with minor disabilities, and currently represents an
insuperable obstacle in terms of the integration of
children with more serious disabilities131 132. Parents,
however, have said that there were obstacles caused
by others in the school environment, principally the
parents of children without disabilities. A member
of “Puž“ states: “We, the parents of children with dis-
abilities, cannot change the education system by
ourselves, we need the parents of children without
disabilities who accept the fact that the children
need to be together for at least one part of the school
programme“.
Professional norms and practices
Regulations that define the position of people with
learning disabilities arise from the medical model of
deficit in which a person appears before a board at
various key stages of life, and the board “categorises“
the person’s degree of “impairment“, adopts a decision
and decides on the treatment on the basis of their
knowledge and conviction that they are acting for
the best. People with learning disabilities lose control
over their own lives in these processes. The fact that a
decision is made does not however mean that treat-
ment is ensured. That depends on the availability of
services.
The belief that people with learning disabilities are
not capable of expressing their own desires and
needs, and that others need to speak for them, pre-
vents these people from gaining their independence,
developing their abilities and participating in social
interactions. Practices that depart from the traditional
institutionalised care system133 and implement le-
gal regulations and the principles of compensatory
education are considered to be an exception to the
rule. This year, one kindergarten which has included
children with disabilities in an integrated programme
since 1993 extended for the first time a written invita-
tion for children to be enrolled into a fully integrated
group. This is not the result of a systematic application
of measures, but of the commitment of the people

Handicap International, Regional Office for South East Europe. (2004). Beyond De-institutionalisation. Disability Monitor Initiative.
128

Igrić, LJ. (2001). Djeca s mentalnom retardacijom u društvu. Dijete i društvo, 3(3), 2001.
129

Ibid.
130

Another non-governmental organisation based in Sarajevo, Bosnia and Herzegovina, developed a programme entitled “A Model of Inclusive Education“, the experiences of which have been included in
131

the document of the Reform of the Educational System in Bosnia and Herzegovina. The programme contributed to the inclusion of 444 pupils with difficulties into 16 schools. The teachers participated
in the educational programmes and received continuous assistance during the implementation of the programme. None of the 444 children was, prior to inclusion in the school programme, subject to
“categorisation“, and education in separate classes in regular schools was suggested only for 12 pupils as a part of partial integration (Handicap International, Regional Office for South East Europe. (2004).
Beyond De-institutionalisation. Disability Monitor Initiative).
Igrić, LJ. (2001). Djeca s mentalnom retardacijom u društvu. Dijete i društvo, 3(3)
132

The term “institutionalised care system for people with difficulties“ designates a system in which health social, educational services and employment represent a group of measures for the protection
133

of those people, and they are controlled by experts in specialised institutions (Handicap International, Regional Office for South East Europe. (2004). Beyond De-institutionalisation. Disability Monitor
Initiative, p. 36).

56 Poverty, Unemployment and Social Exclusion

Discrimination -
A Mechanism of Social Exclusion
working in that particular kindergarten. Something
similar occurred in a primary school in which ten chil-
dren with disabilities are enrolled134.
5.2.2 Challenges
The lack of specific anti-discrimination legislation and
insufficient activity by public services has resulted in
the international documents on human rights rati-
fied by Croatia often being used as grounds to insist
on the consistent application of the law. The main
impression is that the recognition of the need for
State institutions to be pro-active in implementing EU
standards has resulted in a series of different strate-
gies and special programmes. Their goal is compensa-
tory: they aim to put vulnerable groups in an equal
position for a certain period of time and thus pave the
way for complete integration. Cooperation with civil
society organisations is planned within the framework
of their implementation135.
Civil society organisations which work to provide as-
sistance in the family and in the community to people
with disabilities have developed a series of services
and innovative approaches. The “Puž“ association,
established in 1995, tries to encourage and moti-
vate parents through its programmes to demand a
higher quality of life for their children, to develop an
assistance network for people with disabilities, and
to prove, by means of activities for children with dis-
abilities and through common achievements, that
they also have the right to be useful and independent
members of the community. “Puž“ cooperates with
the Association for the Promotion of Inclusion (API)
which uses as its starting point the social model of
disability and an inclusive approach based on the idea
of the equal participation of members of the com-
munity whose very differences represent its strength.
Many associations are working to support and pro-
mote deinstitutionalisation and community-based
care. The recent establishment of a group for self-rep-
resentation is one of the results of enduring efforts to
create a space where people with learning disabilities
are able to talk about themselves and for themselves.
There are numerous examples of innovative success-
ful practices by civil society organisations. Their expe-
rience and knowledge are profound sources of good
practice, but their inclusion into institutional practice
has been slow.
“Puž“, April 2005, http://www.udrugapuz.hr
134
“The relationship of society towards our children reflects the values of that same society“ (Member of “Puž“, 2005. http://www.udrugapuz.hr).
135
Gilroy, P. (1987). Problems in Anti-Racist Strategy. The Runnymede Trust. London, United Kingdom.
136
5.3 Conclusion The association “Puž“
Based on this analysis, we may conclude that the and the Association
complex and multidimensional processes of dis- for the Promotion of
crimination against the marginalised groups we have Inclusion (API) apply
studied are indicative of mechanisms which probably
operate against other minority and/or marginalised
in their work the social
groups in Croatian society. Protection from discrimi- model of disability and
nation is to a large extent guaranteed by law, but le- inclusiveness based
gal provisions have only been partially implemented, on the idea of the
for example equal access to basic social services such
as education. When protection from discrimination is equal participation
needed to guarantee material and other rights, these of members of the
provisions are not applied, which reduces their legiti- community whose very
macy. Budgetary restrictions and the limitations of the
State’s administrative capabilities and expertise in this
differences represent its
area further contribute to discriminatory processes, strength.
which means that rights are only partially implement-
ed (for example in case of the National Programme
for the Roma). It is the groups that are especially
vulnerable or have additional rights and needs that
suffer the most because of the lack of effectiveness
of public policies and State administration, which in
turn results in discriminatory processes that contain
elements of direct and indirect discrimination. We
may conclude that these processes are for the most
part examples of institutionalised behaviour towards
marginalised groups, although they are less obvious
at the level of discourse and attitudes. An inclusive
approach to marginalised groups is often the result
of an individual initiative that is not supported by
the system. This results in a systematic gap between
rights/needs and activities, with difficulties in allocat-
ing concrete responsibility and initiating change, in
spite of the extent of the problem. External initiatives
may in different ways (for example by giving impe-
tus for modifications in regulations and providing
additional resources and competences) contribute
to partial elimination of discrimination. However, a
more systematic institutionalisation of proactive and
inclusive behaviour towards marginalised groups in
Croatian society will result in their gaining strength
and in more effective public policies.
In this chapter we have tried to contribute to the un-
derstanding of complex discriminatory processes in
Croatia in relation to two very different marginalised
groups, and warn of the processes that Paul Gilroy
called the “coat-of-paint“ theory, where marginalisa-
tion is seen as an abnormal occurrence on the surface
of an otherwise healthy society136. An alternative view
Poverty, Unemployment and Social Exclusion 57
Discrimination -
A Mechanism of Social Exclusion
Reducing and of discrimination suggests that it is part of many key
areas of the social system along with legal, profes-
eliminating the sional and administrative concepts of fairness and
causes and effects of equal treatment. This view underlines that eradicating
discrimination is not a discrimination is a lengthy process, to be implement-
question of privilege, it ed at different levels, and including all social groups.
If measures tackling discrimination are not sufficiently
is a question of rights. well thought through, they may have unintended
negative consequences and contribute to discrimina-
tion directly by increasing unequal treatment, and
indirectly by creating negative perceptions amongst
social groups in relation to the group singled out
through positive discrimination.
We have tried to warn that it is not enough to estab-
lish new bodies and develop strategies and action
plans. To be successful, these need to be created on
58 Poverty, Unemployment and Social Exclusion
the basis of a comprehensive and detailed analysis
that includes all groups; they need clear strategic
goals and guaranteed financial and other resources;
and external monitoring and evaluation is essential.
In addition, we need to depart from the model of cul-
tural pathology that sees discriminated groups from
the point of view of their weaknesses - the services
that are currently provided for them are aimed solely
at alleviating weaknesses. Reducing and eliminating
the causes and effects of discrimination is not a ques-
tion of privilege, it is a question of rights. An approach
based on rights and promoting the expression of
individual needs, access to material and non-material
assets, and equal opportunities should be advocated.
Such a change would produce gains for all social
groups.
Chapter 6:
Social Inclusion through Education
Inclusive education One of the key principles of educational policy in
democratic societies is to ensure access to all educa-
means involving tional levels and provide the conditions for successful
everyone (children, lifelong learning to all members of a given commu-
young people and nity. People who for various reasons have no access to
education have limited opportunities to satisfy many
adults) at different levels
of their needs, and consequently to exercise certain
and in different forms of human rights. EU and OECD countries therefore
education to facilitate include the prevention and reduction of social exclu-
their social inclusion sion through education as one of the four priorities
for education (continuous employability, capacity for
and to develop their full active – democratic – citizenship, increased social co-
potential. hesion, and the reduction of social exclusion)137. And
in order to reduce social exclusion, education must
primarily be inclusive.
Inclusive education means involving everyone (chil-
dren, young people and adults) at different levels and
in different forms of education to facilitate their social
inclusion, or to reduce the possibility of their social
exclusion, and to develop their potential138.
In a narrow sense, inclusive education means involv-
ing people with special needs. About 2% of children
have substantial impairments, which are specially
assessed to ensure appropriate conditions and edu-
cational programmes, which they can accomplish by
means of their other capacities. It is believed, howev-
er, that as many as 20% of children and young people
have a special educational need and require special
educational treatment. These are students with learn-
ing difficulties, students with emotional problems and
challenging behaviour, as well as those with physi-
cal disabilities. The education of people with special
needs is known as “special education“.
In a broader sense, however, inclusive education en-
compasses all those who learn within a system of life-
long learning. The elements leading to exclusion in this
context are not insufficient ability or lack of emotional
adaptability, but the socio-economic and educational
status of the family (especially of the father, or of the
mother in one parent families), gender, racial, religious
or ethnic identity, as well as the individual’s cultural,
linguistic and other characteristics. According to this
understanding of educational inclusiveness, the entire
education system, and not just the education of chil-
dren with special needs, must increase the inclusion of
individuals and individual social groups in education,
thus reducing exclusion from it. This will reduce the
number of socially excluded people and improve social
stability, one of the conditions of social development.
White Paper on Education and Training: Teaching and Learning – Towards the Learning Society. (1995). The Office for Official Publications of the European Communities. Luxembourg.
137
Topping, K., Maloney, S. (eds) (2005). Inclusive Education. RoutledgeFalmer. London, United Kingdom.
138
60 Poverty, Unemployment and Social Exclusion
Inclusive education in its broader sense gains particu-
lar importance in a “knowledge society“ where the
division of the population into competent and incom-
petent citizens is unacceptable, and where those ex-
cluded from education cannot participate successful-
ly. This raises the questions, on what does educational
inclusiveness depend, and how can it be improved?
Inclusiveness primarily depends both on the (formal)
structure of the education system, and on the way the
system functions (including programmes, teaching
methods, assessment, school autonomy and school
environment, cooperation with parents, and on the
organisational processes in the school). Inclusiveness
also depends on the institutions that provide voca-
tional training – as well as educational institutions
this includes businesses (which offer internships and
apprenticeships) and civil society organisations that
offer educational and training services. Below we
shall focus on the structural features of the education
system, which have an effect on educational inclu-
sion/exclusion, and then on the processes within the
system that have the highest impact on inclusiveness.
The structural elements upon which educational
exclusion/inclusion depends are the number of chil-
dren included in preschool education, the duration of
primary education, the duration and structure of com-
pulsory education, the stage and manner of differen-
tiation of programmes and students, the opportunity
for students to transfer from vocational education to
gimnazija (general upper secondary school), the sys-
tem of adult education, and the system of education
for children and young people with special needs.
We shall limit ourselves to the structural aspects of
the education system which have an effect on educa-
tional exclusion and inclusion and on which data are
available, namely preschool, primary, basic education,
and adult education. Additional research is needed
to assess the inclusiveness of upper secondary and
higher education.
6.1 Preschool education
The aims of preschool education from a child’s third
to sixth year are to develop the child’s personality
in the optimal fashion and to prepare him or her for
beginning primary school. This is the period when the
foundations for lifelong learning are laid.
This is the most dynamic period of a child’s develop-
ment, and it is precisely during this period that the
social environment can most effectively shape the
child’s cognitive, emotional and social development.
Social Inclusion through Education
It is in this period that differences in the socio-eco-
nomic status of parents have the greatest influence
on the child’s future success in school. The process of
educational inclusion/exclusion begins in early educa-
tion, and any inadequacies in preschool education
have an unfavourable effect in later schooling. There
is therefore a tendency to include as many children
as possible in preschool education and to aim to have
all children enrolled in what is known as pre-primary
school for one year before they start primary school.
Only some 40% of preschool children in Croatia are
enrolled in some form of organised early learning in
kindergartens, with a large variation between urban
and rural environments. A significant number of par-
ents also find this service difficult to afford. We could
say that preschool education is a kind of regional and
social privilege. The local community is responsible
for establishing and financing preschool activities, but
due to the very diverse financial resources of differ-
ent municipalities and towns, it cannot be expected
that everyone will be able to exercise the right to pre-
school education in the foreseeable future.
6.2 Primary education
According to the International Standard Classification
of Education139, primary education is part of the first
stage of basic education (level 1). The second stage of
basic education consists of lower secondary educa-
tion or lower secondary school (level 2). Both primary
and lower secondary education are part of compul-
sory basic education. This is followed by upper sec-
ondary education or upper secondary school (level 3).
Post-secondary non-tertiary education (level 4) follows
on from secondary school, in turn followed by two
stages of tertiary (higher) education which are differ-
entiated according to whether or not they lead directly
to advanced academic degrees (levels 5 and 6).
In primary education, generalist class teaching pre-
dominates while in lower secondary school teaching
is organised by subject. Generalist class teaching
is performed by a single teacher, whereas in lower
secondary school teaching is performed by a number
of teachers specialising in two or three subjects. The
contemporary trend at the higher levels of basic
school is to have both generalist class teaching and
subject teaching.
UNESCO (1997).
139
European Commission (2002). Key Data on Education in Europe.
140
On the other hand, a difference should be made between an individualised approach to pupils and discrimination that risks strengthening the differences between the pupils which are the result of, for
141
example, their socio-economic status or status as a member of marginalised social groups. Standardisation of quality of education requires the defining of pedagogic standards and the equal availability
of education for pupils, on the basis of which the approach to each individual pupil may be adjusted.
Translator’s note: In Croatian, the concept of education includes upbringing and education (odgoj i obrazovanje) which implies that the teacher not only has the role of educator, but also the role of a
142
second parent in terms of developing behaviour, attitudes, etc. The term “odgoj“, which does not have a suitable equivalent in English, is translated here as “upbringing“.
Primary education generally lasts for a minimum of Only some 40% of
six years140. In just a handful of developed countries
(Austria, Germany, Lithuania) it lasts for four years. The
preschool children in
International Standard Classification of Education rec- Croatia are enrolled
ommends that primary education lasts for six years. in some form of
In the European countries where students achieve organised early learning
the best results in studies of comparative educational
achievement (i.e. Finland and Sweden), nine-year ba-
in kindergartens,
sic education is carried out within a regime of general- with a large variation
ist class teaching. Only a few subjects in the last three between urban and
years are taught by specialist subject teachers. rural environments. A
Since basic education is compulsory, it has to be fully
significant number of
inclusive. In order to meet this criterion, as well as parents also find this
maintain the standard of educational attainment, service difficult to afford.
basic education should be highly individualised,
which means that different students should be
treated according to their personal characteristics141,
and that harmony be established between “external“
and “internal“ conditions. External learning conditions
mean the contents of learning, teaching equipment,
organisation and teaching methods, as well as the
teacher’s ability to perform individualised teaching.
Internal conditions include intellectual abilities, previ-
ous knowledge and motivation for learning, as well
as the student’s emotional responsiveness. In order to
harmonise these external and internal learning condi-
tions, teaching should be student-oriented, which is
better achieved by generalist class teaching; the sub-
ject teacher cannot even remember all the names of
the students he or she teaches (about 200 students),
let alone be familiar with their cognitive abilities and
personality traits, different aptitudes, and differences
in ways they adopt knowledge. The class teacher, on
the other hand, manages his or her class throughout
primary school (which lasts a minimum of four and a
maximum of nine years) during which he or she not
only gets to know the students, which is a precondi-
tion for individualisation, but also establishes a rela-
tionship with them, which facilitates “upbringing“ 142.
A primary education that is too short (i.e. lasts four
years) reinforces educational exclusion from demand-
ing secondary-school programmes for those students
who have had weaker educational support and up-
bringing from their parents. Usually such parents have
a lower socio-economic and educational status. If
Poverty, Unemployment and Social Exclusion 61
Social Inclusion through Education
According to current primary education lasts longer, for at least six years, or
even nine years as in the case of Scandinavian coun-
European benchmarks,
tries, students receive adequate educational support
by which a nine-year from the school for a prolonged period, until they
long basic education overcome the most sensitive period in their develop-
is compulsory, the ment. This not only has a beneficial effect on socially
Croatian basic education deprived students, but also on society which will not
suffer a great loss of potential by children whose par-
which lasts only eight ents belong to marginalised groups. Introducing sub-
years can be considered ject-based teaching too early (before the age of 12)
substandard. Extending makes the inclusion of students with special needs
compulsory education and the optimum development of other students
more difficult.
reduces educational
and consequently social In Croatia, primary education lasts four years. The sud-
exclusion. den jump from generalist class teaching to subject-
based teaching at too early an age (at the age of 10
Table 6.1 Number of students who repeat the year by grade in basic education
Grade Number of students who repeat the year
I 401
II 125
III 55
IV 55
V 368
VI 207
VII 303
VIII 88
Source: Central Bureau of Statistics, 2003/2004.
Most students who repeat the year are first-grade
students who are at the most sensitive stage in their
development, during which they form their initial atti-
tude towards school and learning. These are students
who start their education from a lower level than
others, and the school, due to insufficient individuali-
sation, does not help them overcome initial difficul-
ties. The percentage of students who repeat the year
grows again in the fifth grade, in other words, in the
transition to subject-based teaching, due in particular
to its lack of individualisation. Inclusive basic educa-
tion should not allow any students to repeat the year,
and good systems (such as the Scandinavian) do not
have any students who need to repeat the year.
Croatia is currently undergoing educational reform,
starting with primary education and in accordance with
the Education System Development Plan for the period
2005-2010. A Croatian National Educational Standard
has also been defined. The issue of inclusiveness is
62 Poverty, Unemployment and Social Exclusion
or 11) makes difficult the transition from the fourth to
the fifth grade when subject-based teaching begins.
The transition from the sixth to the seventh grade,
when natural science subjects are introduced, is also
very stressful. The most obvious indicator of this is the
number of students who have to repeat individual
subjects. Inclusive education should not produce
students who need to repeat the year, and should not
be as stressful as our education system seems to be.
The insufficient level of student-orientation in basic
education means that students learn less than they
could, and do not acquire positive attitudes towards
school and learning, which reduces their subsequent
participation in different types of lifelong education
(particularly formal education). The number of stu-
dents who repeat the year in the two stages of basic
education in Croatia is shown in Table 6.1:
Percentage of students who repeat the year
0.79
0.26
0.11
0.12
0.77
0.41
0.60
0.11
treated in various aspects of the reform. The optimi-
sation and management of the network of primary
schools open the question of improving and standard-
ising the quality of education across Croatia. External
learning conditions need to be improved by investing
in curriculum reform, continuous teacher training,
building new schools and ensuring existing schools are
well maintained and so on; and it is necessary to pro-
vide equal access and improved quality of education
to pupils from marginalised or socio-economically de-
prived groups. If these conditions are fulfilled, greater
individualisation and inclusiveness of teaching is ex-
pected, with a positive impact on levels of motivation
and educational achievement. We have to point out
that these processes will take place in the context of ra-
tionalising the network of schools due to demographic
and economic factors. We can expect a more intense
growth of private schools which may also contribute to
higher standards in the education system.
Social Inclusion through Education
6.3 Compulsory basic and secondary
education
Compulsory education should prepare young people
to continue their education and enter the world of
work. The minimum duration of compulsory educa-
tion is dictated by the scope and complexity of the
knowledge and skills necessary to successfully fulfil
social roles. Most current EU Member States have a
basic education that lasts nine years143. Extending
compulsory education reduces educational, and
consequently social, exclusion. For this reason, in de-
veloped countries an effort is being made to extend
compulsory education to the end of pre-tertiary edu-
cation so that those students who do not continue
to higher education will acquire the capacity to work,
which will decrease the rate of unemployment. In this
way, they are also less likely to become socially ex-
cluded. It can be concluded that according to current
European benchmarks, compulsory education which
lasts only eight years can be considered substandard.
In Croatia, basic education lasts eight years, which
makes it suboptimal from the viewpoint of social ex-
Table 6.2 Educational attainment of the population over 15 years of age
School
Without any schooling
Incomplete basic education
Completed basic education
Completed secondary education 1,733,098
College education and vocational study
Universities and art academies
Unknown
Total 3,682,826
Source: Central Bureau of Statistics, 2001
About 18% of the adult population of Croatia have
not completed basic education, and only 47% have
completed secondary school. The percentage of the
population who have completed upper secondary ed-
ucation (ISCED 3) is regarded as a key indicator of the
nation’s educational attainment. It may be concluded
that the inclusiveness of our pre-tertiary education
so far has been significantly lower than the European
average, which is indicative of the quality of national
human capital and of the country’s development
European Commission (2002). Key Data on Education in Europe
143
Pastuović, N. i sur. (2001). Odgoj i obrazovanje: Bijeli dokument o hrvatskom obrazovanju. Ured za strategiju razvitka Republike Hrvatske.
144
Ministarstvo znanosti, obrazovanja i športa Republike Hrvatske / Ministry of Science, Education and Sports (2005). Plan razvoja sustava odgoja i obrazovanja 2005. – 2010 / Education System Development
145
Plan for the period 2005-2010. Zagreb, Croatia.
clusion. An analysis of the Croatian education system, The inclusiveness of our
conducted during 2000 and 2001 and commissioned
pre-tertiary education so
by the Government of the Republic of Croatia144, high-
lighted the disparity of our education system with the far has been significantly
European one, and in this context indicated the need lower than the European
to extend basic education from eight to nine years. average, which is
indicative of the quality
The Ministry of Science, Education and Sports’
of national human
Education System Development Plan 2005-2010 does not
capital and of the
instigate structural changes in pre-tertiary education,
country’s development
but plans instead to stabilise it. Two educational goals
are mentioned in the introductory section: increasing capacities.
the quality of education to benefit the economy and
the knowledge society, and ensuring the right to edu-
cation for all145. “The right to education for all“ implies
inclusive education. To what extent this is already in
place and what can be expected may to a certain ex-
tent be established by analysing both the present con-
dition of the system and the measures planned.
The educational structure of the population over 15
years of age shows the degree of inclusiveness of
Croatian education (Table 6.2):
Number Percentage
105,332 2.86
580,379 15.76
801,168 21.75
47.07
150,167 4.08
267,995 7.27
44,687 1.21
100.00
capacities. The inclusiveness of higher education is
also below the European average – an average of 13%
of the population have completed college or higher
education (the minimum in medium-developed
countries is 20%). In addition, 2.9% of the population
have no education at all, and about 580,000 adults
have not completed basic education. This leads to the
conclusion that the Croatian basic compulsory school
system is not sufficiently inclusive.
Poverty, Unemployment and Social Exclusion 63
Social Inclusion through Education
At the school level, The data in Table 6.2 are a cumulative indicator of
the inclusiveness of our education in the previous
educational inclusion is decades. The data on the educational structure of the
improved by adjusting
the content of education Table 6.3: Educational structure of the population from 25 to 29 years of age
and methods used for
teaching, examining and Level of education
assessing to students’ Without any schooling
individual characteristics Incomplete basic education
in terms of abilities, Completed basic education
Completed secondary education
previous knowledge and
College education
motivation for learning. Higher education
Unknown
Total
Source: 2001 Population Census, Central Bureau of Statistics.
The data imply that the younger generation’s level of
education is higher than that of the older generation,
which is a universal phenomenon in all countries.
However, 16% of young people still do not have an ed-
ucation higher than basic schooling, and out of these,
5,000 have not even completed their basic education.
About 66% of young adults have completed only
secondary education, which is below the European
average of around 80%. We do not have data on drop-
out rates from secondary education and the reasons
for dropping out. About 17% of young adults have
college and higher education, some of whom are still
studying. We do not have data on the quality of our
basic education. Croatia did not take part in the PISA
2000 and 2003 projects, so we can only estimate the
quality of our basic education (our students’ achieve-
ments in international competitions are irrelevant).
There are multiple structural reasons for the insuf-
ficient inclusiveness of our pre-tertiary education.
Some of the most important causes are the exces-
sively early transition from generalist class teaching
to subject-based teaching and the insufficient “peda-
gogical and psychological training“ given to subject
specialist teachers. Their training is inadequate, both
in terms of scope and content, for becoming compe-
tent as subject specialist teachers.
6.4 An Overview of Europe
It has already been mentioned that educational exclu-
sion/inclusion depends on one hand on the (formal)
structure of the education system, and on the other
Key Competencies (2002). A developing concept in general compulsory education. Euridyce. Brussels, Belgium.
146
64 Poverty, Unemployment and Social Exclusion
population from 25 to 29 years of age are a better
indicator of current inclusiveness (Table 6.3).
Number Percentage
1,239 0.42
3,802 1.29
43,659 14.82
194,140 65.92
12,578 4.27
37,323 12.67
1,756 0.60
294,497 99.99
hand on the way it functions. Factors such as educa-
tional programmes, teaching methods, techniques for
student assessment, the school’s degree of autonomy,
the school atmosphere, cooperation with parents,
and other organisational processes in the school
(especially continuous teacher training) affect how
the educational system functions. These factors can
reduce educational exclusion by influencing the indi-
vidualisation of teaching and assessment, as well as
on teacher – parent cooperation.
When speaking of the suitability of educational pro-
grammes in terms of how demanding they are, a dis-
tinction should be made between contents that are
intellectually demanding (complexity of content) and
those which overburden students with the quantity of
information to be learned. Obsolete programmes do
not so much affect educational inclusion as increase
social exclusion by reducing both the employability
of students after they complete their studies and their
capacity for lifelong learning. These problems are
resolved in EU and OECD countries through curricular
reforms establishing new and modern standards in
national education. There has been a major shift in re-
forms to national curricula – educational programmes
are being altered to include new key competencies
which set goals for reading, mathematical and scien-
tific literacy146. In this way, “the acquisition of knowl-
edge and skills that can be transferred to real-life
situations“ is improved, and the principle that “what
you learn is for life and not for school“ is applied. This
kind of education reduces social exclusion because it
facilitates employment and political participation.
Social Inclusion through Education
Unburdening students from information overload in-
creases educational inclusion, but does not necessar-
ily improve students’ social inclusion to the same ex-
tent in their life after education if programmes fail to
prepare them for employment and active citizenship.
Social inclusion through education will be improved if
the educational programme is “open“ to the require-
ments of the broader and narrower community.
At the school level, educational inclusion is improved
by adjusting the content of education and methods
used for teaching, examining and assessing to stu-
dents’ individual characteristics in terms of abilities,
previous knowledge and motivation for learning. This
is achieved by individualising, or personalising, the
content of learning (programmes), teaching, examin-
ing and assessing. All these elements form what is
known as the curriculum. This individualisation con-
sists of adapting elements in the curriculum to the
needs of the students. Individualisation may best be
achieved by “student-oriented teaching“.
Student-oriented teaching as a general principle
raises the question of when to begin subject-based
teaching. International experience shows that
subject-based teaching should not be introduced
before students are 12 years old, which means not
until the seventh grade of compulsory education.
Moreover, Scandinavian schools conduct generalist
class teaching for the entire nine years of compulsory
education. This type of education is fully inclusive,
and Scandinavian schools do not have students who
repeat the year.
Individualisation is not easy to achieve in practice and
requires the teacher to receive special psychological
and pedagogical training. This accounts for 50% of psy-
chological, pedagogical and methodical contents in the
training of class teachers, whereas it accounts for about
20% of the training which subject teachers receive.
Individualised teaching should take into considera-
tion students’ abilities, previous knowledge, prefer-
ences and interests, so that the external learning
conditions (contents, organisation, and methods of
teaching, examining and assessing) can be tailored
to their individual differences. In doing this, it is im-
portant to emphasise that the individualisation of
teaching for students of slightly lesser ability must not
involve a lowering of demands and expectations, but
should provide suitable support and should motivate
the students, thus exploiting their cognitive capacity
in the optimum manner.
OECD PISA database, www.pisa.oecd.org
147
The individualisation of student assessment and ex- There is a trend across
amination has not been the subject of a great deal of
research compared to other areas. At the same time,
Europe to monitor entry
there is less consensus among experts in this field, and into education and exit
there are issues which are also largely contested among from it, and to leave to
European educators. The problem is that examining and the school the choice of
assessing students’ achievements have several different
goals. Examining and assessing may serve the purpose methods leading to the
of internally evaluating individual elements of the cur- defined goals (school
riculum in order to improve them (known as formative autonomy).
evaluation), assessing students’ knowledge (so that their
grades can be taken into consideration for enrolment
into higher levels of education) and providing addi-
tional motivation for students to learn.
To obtain valid information on students’ achieve-
ments for a formative evaluation of student knowl-
edge, the assessment criteria must not be adjusted
to the knowledge of the student. Such an evaluation
must not be individualised, even though its results
may be frustrating and discouraging for weaker stu-
dents. Individualised examination and assessment, on
the other hand, serve as support to student develop-
ment and use descriptive assessment, which, howev-
er, does not permit comparisons to be made. Besides,
this approach requires more time and special training
for teachers. In our community, there is a prevailing
negative attitude towards descriptive assessment,
although it has become a successful and recognised
practice in countries with the best school systems.
School autonomy is manifested in various aspects of
a school’s activity, one of the most important areas
being curricular autonomy. This involves establish-
ing study programmes which at later stages become
elective programmes, but it manifests itself most
obviously in the contents and methods of teaching.
Without school autonomy it is impossible to optimally
adjust teaching to students’ individual characteristics.
There is a significant correlation between autonomy
in individual areas of school policy and the average
literacy at an international level, ranging between
0.16 to 0.51147.
There is a trend across Europe to monitor entry into
education and exit from it, and to leave to the school
the choice of methods leading to the defined goals.
This liberates the creative potential of teachers and
allows particular elements of the curriculum to be
individualised. It is clear that this increases the re-
sponsibility of the teacher and leads to a more stimu-
lating environment than in a strictly regulated school.
In an autonomous school, both teachers and students
Poverty, Unemployment and Social Exclusion 65
Social Inclusion through Education
In the Education System are more satisfied with and motivated by effective
teaching and learning. Such schools experience less
Development Plan absenteeism, parent-teacher relationships are bet-
for 2005 to 2010, the ter, and cooperation between teachers and parents
Ministry of Science, is more intensive, which is extremely important for
the inclusiveness of education. All this leads to the
Education and Sports
conclusion that autonomous systems increase educa-
has expressed its tional inclusiveness.
commitment to make
education inclusive and To raise the national average in educational achieve-
ment, and in particular to reduce differences, it is
to promote the values of important to decrease regional disparities in access to
social inclusion. education, school facilities, and the quality of teach-
ers. Countries which achieve the highest levels of
educational attainment in international comparisons
have reduced their regional variation, that is, dispari-
ties between rural and urban areas148. This is achieved
by the systematic optimisation of the school network
over an extended period, and by evaluating the
educational achievements of students from different
schools. This is followed by analysing the conditions in
lower-ranking schools, and then producing develop-
ment plans. These plans are implemented through
the joint efforts of school staff (who are specially
trained) with the support of central and regional de-
velopment services.
6.5 Educational inclusion/exclusion in
Croatia
6.5.1 Basic education
The inclusiveness of basic education in our country
is threatened by the obsolete nature of educational
programmes and the tendency to overburden stu-
dents with excessively broad contents. A systematic
empirical survey conducted by the Institute for Social
Research in Zagreb established that students are
overburdened and that teachers are insufficiently
trained to teach successfully.
In order to “unburden“ and modernise basic school
programmes, the Ministry of Science, Education and
Sports initiated new “knowledge catalogues“. The
current national teaching plan has not been revised,
which implies that there is no plan to introduce a new
national curriculum based on the new key competen-
cies necessary to operate successfully in an integrated
Europe, but simply that the existing curriculum will be
reorganised. Recently, the “catalogues of knowledge“
were renamed as the Croatian National Educational
Standard (Hrvatski nacionalni obrazovni standard –
OECD, UNESCO (2003). Literacy Skills for the World of Tomorrow.
148
By improving the pre-service and in-service continuous training of teachers with special focus on teaching pupils with special needs.
149
By implementing the concept of regional fairness.
150
66 Poverty, Unemployment and Social Exclusion
HNOS), which shows that the educational authorities
are not committed to changing the structure of the
curriculum, but to stabilising it. Nevertheless, the pos-
itive side of our system is that it does not implement
an early differentiation of programmes after primary
education (the fourth grade of primary school) but
only after the completion of basic education.
In the Education System Development Plan for 2005 to
2010, the Ministry of Science, Education and Sports
has expressed its commitment to make education
inclusive and to promote the values of social inclu-
sion. The measures involve modernising and “unbur-
dening“ programmes, adjusting programmes to the
needs of target groups, the introduction of standard-
ised assessment procedures, the introduction of new
teaching methods149 and harmonising the approach
to high-quality education throughout Croatia150. The
social inclusion of people who have completed their
education will be encouraged through developing
links between education and the world of work.
Goal-orientated management will improve the man-
agement of the system as a whole and of individual
schools. Head teachers’ management skills will be
improved by professionalising the post of head teach-
er and by introducing a licensing system. External
evaluation will be introduced, and Croatia will, as early
as 2006, join the PISA project. The concept of indi-
vidualised teaching will be introduced into basic edu-
cation, led by students’ needs, previous knowledge,
capacities and interests. A 90% rate of enrolment into
secondary school by children who have completed
basic education is planned. A 75% rate of completion
of secondary education will be ensured. Secondary
vocational education will be better adjusted to the
needs of the students and to the labour market.
Some factors which may hinder these objectives and
measures should also be pointed out here. They are:
- The Croatian National Educational Standard (HNOS)
is not produced according to an internationally ac-
cepted methodology.
- The Croatian school network has not been op-
timised in line with an internationally tested
methodology.
- Interdisciplinary programmes for subject specialist
teachers to become competent educators are lack-
ing, while the pedagogical and psychological train-
ing of teachers is obsolete.
- There is an insufficient number of subject specialist
teachers to perform subject-based teaching in the
Social Inclusion through Education

upper grades of basic education, while the capacity
of teacher training faculties is insufficient.
- The number of educational specialists trained
through interdisciplinary graduate and PhD educa-
tional courses is insufficient for the particular prob-
lems that occur in the education system.
- The new Regulation on Scientific and Artistic Areas,
Fields and Branches does not conform to the mod-
ern classification of educational sciences. It leaves
the field of educational sciences unaltered, al-
though teacher training faculties and teacher train-
ing colleges have warned that basic educational
science and teaching methodologies should be
included in the field of educational sciences. If this
is not changed, it will be more difficult to introduce
postgraduate programmes in educational studies,
which, according to the Bologna scheme, are car-
ried out in the fourth and fifth years of study.
6.5.2 Adult education
Adult education is the most extensive part of lifelong
education. Adult education may be either of a profes-
sional or non-professional nature. For social inclusion/
exclusion, professional education is more important,
because it serves two functions – a compensatory
function and a function of further professional devel-
opment. It allows adults who did not attain a certain
level of education achievement when they were
young to achieve it later. This is particularly important
for people who have not completed basic and sec-
ondary education and so have no qualifications. The
following statistics illustrate the need for adult educa-
tion of a compensatory nature in Croatia: about 3% of
the adult population do not have any formal educa-
tion. Around 16% of adults (over 15 years of age) have
not completed basic education. As many as 47% of
adults in Croatia have completed only secondary edu- In Croatia, about 3% of
cation. Only 13% of the adult population have a col-
lege or university degree. These statistics imply that
the adult population
the Croatian school system is insufficiently inclusive do not have any formal
and that there is an extensive need for compensatory education. Around
adult education. Adult education presents significant 16% of adults (over
potential for educational inclusion, since it enables
people who, for subjective or objective reasons, left
15 years of age) have
school when they were young to return to it when not completed basic
circumstances become more favourable. education.
Besides compensating for their previous (lack of) edu-
cation, adults continuously learn through non-formal,
informal (experiential) learning and self-education. The
higher the educational level of the individual, the great-
er are his or her need for further learning, and the great-
er is his or her external and internal learning motivation.
Adults learn in order to obtain employment more easily,
to keep a job, and to progress in their careers, which
demonstrates the close relationship between adult
education and social exclusion/inclusion. Due to the
increasing speed at which not only knowledge, but
values, attitudes and habits become obsolete, lifelong
learning is becoming the cornerstone of modern edu-
cational policy. A knowledge society is conditional upon
a developed system of lifelong learning, which means a
well-developed adult education system151.
The concept of lifelong learning was created in the
1970s by UNESCO working bodies as a reaction to the
“world educational crisis“. The need for formal, non-for-
mal and informal learning throughout life was declared
after it was noticed that the pace of scientific, techno-
logical and social change was accelerating, making it
impossible to train people for their future needs during
their formal schooling in childhood and youth.

Box 6.1: Peer help

The organisation MoSt from Split offers psychological and social support to young people with behav-
ioural difficulties through its programme entitled Special Educational Method (SEM). MoSt assists young
people to overcome the difficulties they experience on a daily basis with various school subjects and ex-
tracurricular activities, and provides youth and parent counselling. With help from 40 volunteers to whom
training is provided on a regular basis, SEM reaches 80 young people annually. The programme contrib-
utes to solving problems for young people with difficult behaviour in a non-institutional setting and fills
the gap left by the continuing inadequacies of primary and secondary prevention programmes.

Up to a few years ago there were no large-scale in 2004 which supported the idea of a knowledge
campaigns in Croatia concerning educational policy society and lifelong learning. The Croatian Academy
aiming at applying the concept of lifelong learning. of Sciences and Arts published the Declaration on
However, two important documents were published Knowledge – A Croatia Based on Knowledge and the

European Commission, Eurostat (2000). A Memorandum on Lifelong Learning

151

Poverty, Unemployment and Social Exclusion 67

Social Inclusion through Education
At the end of 2004, the Application of Knowledge152, and the Government
and the National Competitiveness Council jointly
Croatian Government proposed 55 Recommendations for Increasing
adopted the Adult Croatia’s Competitiveness. Four key national goals
Education Strategy were emphasised: 1) the achievement of sustainable
growth in GDP; 2) a reduction in unemployment; 3)
in which it accepted an increase in the quality of life; and 4) an increase
lifelong learning as in the degree of social inclusion. It was established
the basis of its entire that the attainment of these goals depended on the
education system in quality of human resources available and on the way
they are used. Consequently, it was stressed that the
order to attain and educational structure of the population should be
improve continual improved, that the content of education should be
employability and active continually updated, that investments in education
should be increased, and that an increasingly large
citizenship. number of the population should be included in con-
tinuing learning programmes.
At the end of 2004, the Croatian Government adopted
the Adult Education Strategy and made a commitment
to implement it by the end of 2005. The strategy states
that Croatia accepts lifelong learning as the basis of its
entire education system in order to attain and improve
continual employability and active citizenship. A range
of measures were proposed to achieve these goals.
First, the creation of conditions enabling all Croatian
citizens to take part in lifelong learning in order to
increase their capacity to participate in all areas of
contemporary life, at all levels, including the European
level. It may be concluded that awareness has been
raised (at least at the level of government declarations)
about the importance of adult education for national
development, as well as the need to include all citi-
zens in education, which should reduce the number
of those who are socially excluded. A special section
stresses the need to produce an adult education strat-
egy for excluded groups, and to provide assistance for
adult learners in choosing the best way of learning.
Several steps will be taken to achieve the goals an-
nounced, including setting up specialist adult educa-
tion institutions, passing new legislation on adult ed-
ucation, introducing more suitable types of statistical
monitoring, improving fiscal policy to stimulate adult
education, and making adult education more flexible.
The latter involves recognising non-formal educa-
tion by testing people’s competencies, modularising
vocational education to allow for greater mobility of
people between different professions, and enabling
adults to access self-study programmes.
Since basic education is crucial to accessing further
education and employment, it is also deemed the key
area of education for people who have not completed
it. People who have not had basic schooling are at
Hrvatska akademija znanosti i umjetnosti / Croatian Academy of Sciences and Arts (2004). Deklaracija o znanju – Hrvatska temeljena na znanju i primjeni znanja. Zagreb, Croatia.
152
68 Poverty, Unemployment and Social Exclusion
greatest risk from social exclusion. According to the
most recent census, around 18.5% of adults in Croatia
(about 685,000 people over 15) have not completed
basic schooling. In 2003, the Croatian Government
adopted a 10-year adult literacy project entitled For
a Literate Croatia – the Path to a Desirable Future (Za
Hrvatsku pismenosti – put do poželjne budućnosti) and
allocated State funds to implement it. Besides ena-
bling people to complete basic education, the project
will also allow them to undergo vocational training for
low-skilled jobs, for which there is a demand on the
labour market. However, judging from unofficial in-
formation, this project has encountered some difficul-
ties. Not enough participants have enrolled, although
the target group consists of 91,000 people aged
between 15 and 50. It seems that the teaching plan
and programmes do not take sufficient account of the
students’ previous knowledge and needs, and that
they employ pedagogical (teacher-directed) instead
of andragogical (student-directed) teaching methods.
This reduces the motivation of adults to acquire basic
education, which is already weak.
Considering the registered unemployment rate of
18%, adult education should be used to a greater ex-
tent as one of the tools of an active employment pol-
icy. The Croatian Employment Agency mainly focuses
on increasing employment among younger people.
However, special attention should be given to the
older unemployed who very easily join the ranks of
the long-term unemployed with a remote chance of
finding any employment, and a high chance of be-
coming socially excluded. The National Employment
Action Plan (based on the European Employment
Strategy) should develop in more depth the use of
education (training and professional development)
to reduce the number of unemployed and potentially
socially excluded. About 27,000 veterans of the recent
Croatian war for independence, 40% of whom have
not completed basic schooling, make up a sizeable
share of socially excluded people
Changes are taking place and will continue to take
place in college and higher education, which promote
the inclusion of adults in higher levels of education.
Higher education in community colleges is expanding
greatly. The adoption of the Bologna scheme of study
(the 3+2 model) will enable those who have attended
but not completed a four-year university-level course
to acquire a Bachelor’s degree and to obtain suitable
employment. This will not only improve the educa-
tional structure of the population, but a large number
of adults will also acquire qualifications which will
help them obtain employment, and decrease the risk
of their short-term or long-term social exclusion.
Chapter 7:
Policy Recommendations

Social exclusion is an alarming and disturbing phe-
nomenon that requires broad social action. It is above
all those who are included who must be pro-active,
for only they can create conditions for the social inclu-
sion of all. Many State administrative bodies, civil soci-
ety organisations, research institutions, trade unions,
local governments, and enterprises should become
involved – in short, all authorities responsible for
development policy, the purpose of which is to direct
social and economic currents toward a type of society
that will not allow its members to become excluded.
There is much that can, and should, be recommended
to those responsible for policy. We do not know
enough about the phenomenon of social exclusion,
so it must be systematically researched and moni-
tored. The excluded must be helped to become active
in the labour market (“work activation“) and toward
at least partial alleviation of their poverty. In order to
achieve this, they must acquire the skills and knowl-
edge that will make them employable. For this reason,
measures for training and educating the excluded
should be given special attention, and ways need to
be found of raising public awareness and stimulating
social solidarity and philanthropy, which are currently
inadequate. The following measures, which we have
divided into six groups, address the problem of exclu-
sion in various ways, but with the same aim: to bring
back into mainstream society all those on the margins
of society who are barely subsisting.
7.1 Measures for the systematic
monitoring of social exclusion
Indicators of social inclusion, which may be derived
from official statistics and a few studies and reports,
are inadequate, and do not offer a reliable picture of
the situation. A multidimensional system for detecting
and monitoring social exclusion, with standardised
indicators and methods of measurement, must be
developed. The measures to be taken are as follows:

Measures Competent authorities

1.1. Regularly collecting data on the 18 standardised
macro-indicators of social exclusion (the Laeken
indicators) adopted by the European Council in 2001.
Since regional differences must also be detected Central Bureau of Statistics
and monitored, data on all indicators should also be
collected at a nationwide level.

1.2. Carrying out a multiyear (panel) analysis at household

level monitoring all dimensions of social exclusion
and exploring means of social re-inclusion. These
surveys should be in line with other surveys on social
exclusion conducted in the European Union. Work Ministry of Science, Education and Sports;
is already being done on the EU-SILC (European Central Bureau of Statistics
Statistics on Income and Living Conditions).The
surveys are expected to take place in all member
countries in 2006 (pilot research has already been
undertaken in some countries).

1.3. Using applied research to evaluate the effects of

measures proposed in this report. Evaluation of this Independent research institutions (evaluations to be
type must form an integral part of each measure, and initiated by ministries responsible for implementing each
the necessary resources must also be allocated. measure)

Ministry of Science, Education and Sports; Ministry of

Health and Social Welfare;
1.4. Initiating and undertaking participatory research
Ministry of the Economy, Labour and Entrepreneurship;
on the social status and quality of life of vulnerable
Central Bureau of Statistics;
groups. This research should be “participatory“ in
Ministry of the Family, Veterans’ Affairs and
that experts should carry out their research in the
Intergenerational Solidarity;
closest possible collaboration with members of the
Croatian Employment Service;
vulnerable groups under study.
Independent research institutions

1.5. Periodic research on institutional practices and

processes that result in social exclusion. Independent research institutions

70 Poverty, Unemployment and Social Exclusion

Policy Recommendations

7.2 Work activation and employment
measures
Poverty is the most burdensome element of social
exclusion. A generous and balanced redistribution of
budgetary funds is not feasible; and, by all accounts,
it would not even be effective in the long term. In line
with the European Employment Strategy, we consider
stimulating work participation, that is, work activa-
tion, to be the most effective and viable means of
counteracting unemployment and poverty. According
to Croatia’s National Employment Action Plan, activa-
tion is both a preventive and a curative measure. In
accordance with the eighth guideline of the European
Employment Strategy, the employability of the great-
est possible number of members of each family must
be stimulated, so that working becomes worthwhile.
This will lower the risk of complete exclusion from
the labour market. It is also important to reduce the
number of people becoming long-term unemployed,
and to continually decrease the number who have
been out of work for more than a year. These repre-
sent almost half of all unemployed people. Activation
will increase employability, stimulate training in vital
skills and knowledge, stimulate more active job-seek-
ing, and increase the mobility of those seeking jobs.
Moreover, stereotypes regarding unnecessary older
workers and people with special needs will begin to
be overcome. The measures to be taken are as follows:

Measures Competent authorities

2.1. Facilitating activation through more flexible forms of
employment (in accordance with the third guideline of
the European Employment Strategy), taking into particular
Ministry of the Economy, Labour and
account people who cannot or do not wish to work full-time
Entrepreneurship;
(mothers, young people, the elderly). Given that these are
Ministry of the Family, Veterans’ Affairs and
usually lower-paid jobs, it is important to examine whether
Intergenerational Solidarity
regulation of the amount of mandatory contributions is
justified, at the same time preserving a high level of social
and labour rights.

2.2. Evaluating the existing system of unemployment

counselling and developing intensive 2-5-day-long or
Ministry of Health and Social Welfare;
weekly programmes of counselling and education for the
Ministry of Science, Education and Sports;
most vulnerable groups, with the aim of building their self-
Croatian Employment Service
confidence and job-seeking skills.

2.3. Developing a system which will primarily co-finance

measures leading to increased employability (education,
Ministry of Health and Social Welfare;
retraining, training and professional development, and so
Croatian Employment Service
on). The existing active employment policy system is based
on co-financing employment.

2.4. Stimulating work among people over 65 by exempting those

who work on a freelance basis from paying contributions into Ministry of the Economy, Labour and
the first pillar of pension insurance. Entrepreneurship

2.5. Introducing the option of partial retirement, i.e. working a

smaller number of hours per day/week with entitlement to Ministry of the Economy, Labour and
partial pension benefits. Entrepreneurship

2.6. Optimising coverage of kindergartens, baby day-care

Ministry of Health and Social Welfare;
nurseries and extended stay at schools. The employability
Ministry of the Family, Veterans’ Affairs and
of women would be greatly increased and facilitated if the
Intergenerational Solidarity;
child-care system were further developed and made more
bodies of local and regional self-government
accessible.

2.7. Stimulating the foundation of new local councils for social

policy and strengthening existing ones. Local councils
are to propose work projects beneficial to the community
and implemented through workfare programmes. The
measures themselves would be implemented by town and
city governments, which would sign agreements with the
administration of the regional employment service.
Croatian Employment Service;
Social Welfare Centres; ministries in charge;
competent bodies of local and regional self-
government; local social and economic councils

Poverty, Unemployment and Social Exclusion 71

Policy Recommendations

7.3 Measures for alleviating poverty
Not all citizens are in the same position on the la-
bour market. Some people are especially difficult to
employ, while for others the knowledge and skills
they possess and their life circumstances simply do
not enable them to earn a decent living through
their own work. We cannot expect the chronically
poor, single-parent families, people with disabilities,
or uneducated elderly people to become activated
without additional support. Moreover, social exclu-
sion will very likely carry over to their children. This
problem is dealt with by the seventh guideline of the
European Employment Strategy, according to which
the aforementioned groups (the poor, single parents,
people with disabilities, people without education,
especially elderly people) should be guaranteed spe-
cially targeted activation and education programmes.
They should also be ensured a share of budgetary
funds (social transfers), which will alleviate their level
of poverty and facilitate activation. The measures to
be taken are as follows:

Measures Competent authorities

3.1. Developing and strengthening partnership between
the State and non-governmental organisations (NGOs)
in preventing and alleviating poverty and social
exclusion. The State should encourage participation Ministry of Health and Social Welfare;
by NGOs by financing poverty reduction and social Social Welfare Centres;
inclusion projects. State institutions are sluggish and Government Office for Cooperation with NGOs; non-
unable to respond immediately to people’s urgent governmental organisations; National Foundation for
needs. NGOs can act more quickly, and so should have a Civil Society Development
special role in creating and implementing small projects
focused on economically strengthening the poor and
providing services to the elderly, the infirm, and the like.

3.2. Organising Social Welfare Centres (SWCs) as first-

stop shops supplying a wide variety and depth of
information. The reorganised SWCs would be places for
potential users to obtain information about their rights Ministry of Health and Social Welfare;
and about various stakeholders – places that offer help Social Welfare Centres
and support. The SWCs would also be places where
information about all forms of assistance offered by
NGOs, local government and other stakeholders would
be collected and distributed.

The Government; Ministry of Health and Social Welfare;

3.3. Adjusting welfare assistance payments to increases in
Croatian Employment Service; bodies of local and
the cost of living and inflation.
regional self-government

3.4. Instituting a social (state) pension. Elderly people

who do not receive any kind of pension (at least 1/5
of all those aged 60 and over) are a highly vulnerable
group, and primarily rely on welfare assistance alone. Ministry of Health and Social Welfare;
Instituting a social pension would also partially relieve Ministry of the Economy, Labour and Entrepreneurship
the burden on social workers. If material incomes were
to remain more or less the same, the stigma associated
with welfare assistance would be avoided.

7.4 Educational measures National Employment Action Plan, it is vital to encour-

Social inclusion is not possible without adequate
education in the form of knowledge and skills.
Reducing poverty, primarily by means of employ-
ment, is inseparable from building knowledge and
skills among the poor and unemployed. In line with
the European Employment Strategy and Croatia’s
age lifelong learning, as this facilitates employment,
and thereby social inclusion as well. Lifelong learning
encompasses both regular schooling for children and
young people and formal as well as informal adult
education. Social exclusion may be reduced through
formal and informal education by means of three
types of measure:

72 Poverty, Unemployment and Social Exclusion

Policy Recommendations

1. Specific measures which increase the employ-
ability of unemployed adults and decrease the
likelihood of job loss for the employed. This may be
achieved through investment in adult education,
modifying the criteria for recognising qualifications,
modularising vocational education, and supporting
self-education.
2. Changes in the school system aimed at prolonging
and individualising education, and increasing the
educational attainment and employability of stu-
dents who have completed their education.
3. An integrated approach to educating children and
young people with special needs.
The measures to be taken are as follows:

Measures Competent authorities

Adult education

4.1. Ensuring the right to 35 hours of paid annual leave for educational purposes
(certificate of attendance to be submitted). Such investment in employee education
would be tax deductible.
Ministry of Science,
4.2. Ensuring that the unemployed and members of vulnerable social groups also take part Education and Sports;
in such education. Based on precise criteria, they will be given education “vouchers“ Ministry of the
for a certain number of hours, which they can use for their own education following Economy, Labour and
counselling at the Croatian Employment Service. Entrepreneurship;
universities and
4.3. Introducing a summer semester at institutions of higher learning where, according to colleges; andragogical
demand, courses for adults would be held. Stimulation would arise from competition associations
between educational institutions, that is, the level of interest in the programmes they
offer and their evaluation by people attending them.

Changes in the school system

4.4. Extending primary education (generalist class teaching) from four to six years in order
to facilitate individualisation during the 5th and 6th grades of basic education.

4.5. Extending compulsory basic school education from eight to nine years so as to enable
more successful acquisition of key new knowledge and skills, which should be defined
by a national education standard based on internationally accepted methodology. If
the existing eight years of basic school education are to be maintained, a compulsory
9th grade should be introduced for those who will not be continuing their education.
In the 9th grade, one-year training programmes in lower-skilled high-demand
vocations would be held, thus facilitating employment and increasing the likelihood of
social inclusion (people with only basic school education have a very difficult time in
finding employment). Such programmes would also be intended for those who have
not completed secondary school.
Ministry of Science,
4.6. Introducing differentiation of students in the upper grades of basic education by Education and
means of elective programmes and the implementation of a programme with at least Sports; Institute for
two levels (a minimum, compulsory programme and an extended, more demanding the Advancement of
one). Education; research
institutions;
4.7. Introducing subjects in the educational process that promote the right to cultural bodies of local
difference, with the aim of strengthening social cohesion. and regional
self-government
4.8. Examining why students drop out of secondary school and establishing the extent
of this phenomenon and its causes. Based on this applied research, guidelines and an
action plan should be produced, leading to a reduction of this problem.

4.9. Subsidising programmes for supplementary educational activities (Internet courses,

workshops, mentorship, professional counselling) for children from socially excluded
families. The aim is to increase social cohesion and compensate for insufficient cultural
capital in their families.

4.10. Setting up a special fund for scholarships and tuition fees for students from poor
families. It is necessary to separate scholarship funds for gifted students and those for
students from socially excluded families. Scholarships should be awarded by means of
a competition in the latter case as well.

Poverty, Unemployment and Social Exclusion 73

Policy Recommendations

Integrated education of children and young people with special needs

4.11. Developing and introducing preschool programmes in which children with

developmental problems can also take part.

4.12. Ensuring regular basic school education for all. All children aged 6 to 14 should be
taught in the same educational environment, one which will satisfy their physical,
intellectual, social, emotional, linguistic and other needs and requirements. This may be
achieved by setting aside part of the school day and employing extra staff to meet the Ministry of Science,
special additional requirements of children with developmental problems. Education and Sports

4.13. Awarding scholarships to children and young people through competitions, thus
facilitating their secondary and/or higher education. Scholarships should cover the
costs of schooling itself as well as transportation and accommodation. Children and
young people with special needs must not be housed in special institutions simply
because the school system is not capable of providing educational services adapted to
their needs.

7.5 Anti-discrimination measures
Groups who suffer from discrimination should be
involved as a matter of course when strategies and
measures are being devised. This will strengthen and
broaden the consultation process.
There are indications that these groups are sometimes
included, but their experience and knowledge has not
been consistently utilised. Target groups should be
partners in monitoring and evaluating the implemen-
tation of strategies and measures. The measures to be
taken are as follows:

Measures Competent authorities

5.1. Ensuring access to information and free legal advice Social Welfare Centres; Ministry of Justice;
for vulnerable groups. Croatian Bar Association

Ministry of Justice;
Office of the Ombudsman; Office of the Ombudsman for
5.2. Supporting and encouraging institutions to apply
Children;
existing anti-discrimination regulations and introduce
Office of the Ombudsman for Gender Equality;
systematic monitoring of forms of institutional
Office for National Minorities;
discrimination.
Office for Human Rights

Ministries in charge;
5.3. Financial, specialist and media support for new and bodies of local and regional self-government;
existing initiatives by groups in the community which Croatian Television;
provide services and combat discrimination. Croatian Radio

5.4. Promoting examples of good practice by enterprises

that respect the human rights of their employees,
Croatian Chamber of Economy;
oppose discrimination, do not refuse to hire HIV-
Ministry of the Economy, Labour and Entrepreneurship
positive people, and so on.

5.5. Introducing mandatory training seminars for public

servants, with the aim of preventing oppressive Ministry of Science, Education and Sports;
behaviour and promoting human rights. Office for Human Rights; Office for National Minorities

74 Poverty, Unemployment and Social Exclusion

Policy Recommendations
7.6 Measures for raising public
awareness and stimulating social
solidarity and philanthropy
The Croatian public is insufficiently informed of the
dimensions and consequences of social exclusion.
The measures proposed here aim at increasing public
Measures
6.1. Organising educational seminars for journalists
aimed at training them to cover social exclusion,
unemployment and poverty in Croatia.
6.2. Organising and preparing radio and TV broadcasts
on social exclusion, with the aim of raising public
awareness; encouraging coverage and analysis by the
media of social inclusion measures.
6.3. Financial and organisational support for civil
initiatives that promote inclusion and for establishing
networks for vulnerable groups.
recognition of this problem, encouraging greater so-
cial solidarity with the excluded, activating NGOs, and
stimulating philanthropic activities. Greater emphasis
needs to be placed on the social responsibility of the
commercial sector and individual companies with
regard to both their own employees and the wider
community. The measures to be taken are as follows:
Competent authorities
Ministry of Health and Social Welfare, in cooperation with
the Croatian Journalists’ Association
Ministries responsible for implementing individual
measures (Public Relations Offices);
Croatian Television;
Croatian Radio
Office for Cooperation with NGOs;
National Foundation for Civil Society Development;
Local and regional self-government
Poverty, Unemployment and Social Exclusion 75
Appendix 1:
Methodological Explanations for Chapter 3

Empirical analysis of social exclusion We analysed economic deprivation (poverty) on a

(Chapter 3.1)
The survey was based on two questionnaires (A and
B), each of which was carried out on 1,250 respond-
ents. About 70% of the questions were the same in
both questionnaires. The data was collected using a
multistage stratified sample developed on the basis
of the Results of the 31 March 2001 census taken by
the Central Bureau of Statistics (CBS). The sample was
stratified by counties (21) and size of settlement (four
categories). The data were collected by means of per-
sonal interviews, which were conducted in respond-
ents’ homes by around 170 interviewers and lasted an
average of one hour.
We examined the extent and determinants of social
exclusion based on the questions contained in ques-
tionnaire A. In the analyses below, we have made use
of a reduced sample (N = 485) covering only respond-
ents who were employable, that is, those who had
completed their education and were not yet pension-
ers or over 65 years old. In accordance with this crite-
rion, we were obliged to exclude young people still at
school and the elderly from this analysis, despite the
fact that both these groups are known to be vulner-
able in Croatia as well153 154.
Furthermore, the sample was not constructed in such
a way as to allow the regional dispersion of social ex-
clusion to be reliably assessed, that is, the risk of social
exclusion for ethnic minorities, migrants, people with
special needs, the de-institutionalised and other
groups at risk which account for a somewhat small
percentage of the total population. The second seri-
ous limitation of the study is related to its inability to
assess the dynamic of social exclusion or the perma-
nency of social inclusion/exclusion due to the fact the
respondents and their households were profiled at a
single moment in time.
household level, i.e. the combined income of the indi-
viduals living in it. The standard relative poverty line
(60% of the national median equivalent income) was
used as an indicator. According to a survey of house-
hold consumption, the relative poverty line in the
year 2002 amounted to HRK 16,810 for a single-per-
son household155. According to OECD methodology,
in the case of households with more than one mem-
ber, this threshold increases by 50% for each member
older than 14 and by 30% for each child younger than
14156. Given that household incomes were defined in
our research by classes (of which there were 17), and
not their exact amount, all households whose income
was in the range that included the threshold amount
were (also) placed in the poverty group.
We defined employment deprivation as non-participa-
tion in employment, covering both unemployed peo-
ple, regardless of whether they were actively seeking
work or not157, and economically inactive yet employ-
able respondents158. Why did we include the latter?
First, employment is a means of achieving (financial)
independence, developing personal skills159 and mak-
ing social contacts, from which economically inactive
people are excluded to an identical or almost identi-
cal degree as the unemployed. Second, households
with inactive members are more vulnerable than
those whose adult members are actively employed,
especially in the case of households with only one
employed person. Such households are much more
sensitive to job loss, as this leaves them without any
kind of income.
Socio-cultural deprivation was defined as non-involve-
ment in the activities of clubs, associations, religious
organisations, political parties and other forms of
civil society, in other words, the absence of social par-
ticipation160. Bearing in mind that our indicator does
not reveal whether a respondent is socially isolated

World Bank (2000). Croatia Economic Vulnerability and Welfare Study. World Bank. Washington, D.C., USA; Šućur, Z. (2001). Siromaštvo: teorije, koncepti i pokazatelji. Faculty of Law. Zagreb, Croatia;
153

Centre for the Promotion of Catholic Social Teaching (Zagreb) and Croatian Caritas / Centar za promicanje socijalnog nauka Crkve i Hrvatski Caritas (2005). Konferencija za tisak projekta “Praćenje
siromaštva u Hrvatskoj“, Tuesday 11 January.
Social exclusion of dependent individuals is a real phenomenon, but the characteristics and causes of such exclusion are varied, requiring a special analytical approach. Since we took a different
154

approach here, we have additionally included pensioners in the comparative analysis of levels of deprivation (see Graph 3.1), in order to illustrate their vulnerability.
This represents 60% of the median “equivalent“ income of all households. This amount does not include income in kind, which was not measured in our research. However, this form of income
155

makes an important contribution to the living standard of rural households, which are also engaged in agriculture.
Thus, for example, the poverty threshold for a household made up of two parents and two children under 14 would be HRK 35,300 per annum.
156

We usually differentiate between temporary and long-term unemployment, defining the latter as unemployment lasting more than one year. It is also important to distinguish the discouraged
157

unemployed, i.e. those who have stopped seeking work but continue to describe themselves as unemployed.
In our research, the latter group is made up of housewives and the discouraged unemployed.
158

Gallie, D. (2004). Unemployment, marginalisation risks and welfare policy. In Gallie, D. (ed.) Resisting Marginalisation: Unemployment Experience and Social Policy in the European Union. Oxford
159

University Press. Oxford, United Kingdom, pp. 1-33.

Operationalised in an identical manner, the absence of social participation, or tertiary sociability (Gallie, D., Paugam, S., S. Jacobs (2003). Unemployment, Poverty, and Social Isolation. Is There a
160

Vicious Circle of Social Exclusion? European Societies, Vol. 5, No. 1, 2003, pp. 1-31) was one of the social exclusion indicators used in a large-scale European panel study on household consumption
carried out in 1994 (European Community Household Panel Survey; cf. Barnes, M., Heady, C., Middleton, S., Millar, J., Papadopulos, F., Room, G., Tsakloglou, P. (2002). Poverty and Social Exclusion in
Europe. Edward Elgar. Cheltenham, United Kingdom; Northampton, USA. p. 21).

76 Poverty, Unemployment and Social Exclusion

Methodological Explanations for Chapter 3
(for example, someone can have an intensive social
life without being a member of any association), but
rather only non-networked (which only increases the
likelihood of isolation in certain conditions), such
a measurement necessarily overstates the actual
number of isolated people. In order to rectify this
inaccuracy, which arises from the fact that the data
used do not contain more precise indicators of the
dynamic of friendships and social contacts, we take
non-networking as a risk factor only when it is tied to
labour or economic deprivation; non-networking is
not a risk factor on its own. In such cases, being non-
networked (as well as poor and/or not present in the
labour market) truly increases the likelihood of social
isolation, due especially to the inability to make use
of the formal and informal resources, assistance, and
support which engagement in the sphere of civil soci-
ety provides.
Unemployment and social exclusion
(Chapter 3.2)
In the analyses, we used the data collected in an
extensive survey entitled Psychological Aspects of
Unemployment. The survey was longitudinal, i.e. it was
carried out in two rounds with the same participants.
The first study was conducted in the summer of 2003
in branches of the Croatian Employment Office in
each county, involving a total of 25 branches. In each
branch, we randomly selected a certain number of
participants, in proportion to the rate of unemploy-
ment in the respective county. Unemployed people
who came to their local branch offices for their regular
monthly visit were requested by the interviewers
to participate in the survey. Out of a total of 1,882
people asked, 1,138 (60.5%) agreed to participate.
The sample structure provides a good reflection of
the actual structure of unemployment in Croatia with
respect to geographical distribution, gender, dura-
tion of unemployment and length of service with an
employer. However, the sample includes a somewhat
greater proportion of young and educated people
than the population at large; they were more willing
to participate in the survey.
The questionnaire contained questions about par-
ticipants’ demographic characteristics (gender, age,
education, family responsibilities and duration of
unemployment), as well as a number of questions
and scales for assessing the type and intensity of their
everyday activities, their subjective and objective
financial situation, psychological and social depriva-
tion, reported support mechanisms, the means used
for job seeking and the intensity of their job search,
and it also included an extensive number of questions
for assessing health.
Participants filled out the questionnaire in small
groups, mostly on their own, based on the instruc-
tions received from the survey takers. For the small
number who had problems reading or writing, the
survey takers read the questions aloud and recorded
their answers. The survey took up to 40 minutes. At
the end, the respondents were asked permission to
be contacted and surveyed again, a year later. More
than 60% consented and provided their contact data.
In November and December 2004 the second study
was conducted, this time by post. The participants
were first contacted by telephone; the survey takers
reminded them of their consent to be contacted, ex-
plained there was to be a survey by post and asked for
cooperation. The response was good: 78% of respond-
ents returned completed questionnaires (N = 601).
The questionnaire had additional questions related to
whether the respondents had found a job, when they
had found it, what kind of job it was and how happy
they were with it. Questions whose answers were not
subject to change were omitted. All questions referring
to the key variables were identical in both question-
naires. The key variables analysed are explained below.
Poverty, Unemployment and Social Exclusion 77
Methodological Explanations for Chapter 3

Economic deprivation was studied from two perspec-
tives. Objectively, we asked respondents what their
total household income had been in the previous
month. Subjectively, we surveyed their perception
of their financial situation: we asked them to assess,
on a scale from one to five, how often in the previous
month they had experienced financial worries. The
possible answers were the following: 1. “never“; 2.
“sometimes“; 3. “often“; 4. “almost all the time“ and 5.
“all the time“. The correlation between objective and
subjective financial deprivation was significant (r =
0.57).
Social isolation was assessed by a question which was
originally part of our scale of psychological depriva-
tion, composed according to the theory of latent
functions of work161. The question was the following:
Do you consider yourself an integral part and a useful
member of the social community? The answers were:
1. “Yes, I feel I am a useful member of the social com-
munity “; 2. “I mostly feel I am a useful member“; 3. “I
feel non-useful more frequently than useful“; 4. “I feel
completely non-useful and excluded“.
In the second study, i.e. in the survey of factors deter-
mining the probability of finding employment with
the influence of demographic characteristics and
duration of unemployment, we wanted to check the
impact of health as well. Mental and physical health
was tested by means of an extensive, psychometrics-
based international Questionnaire of Health SF-36,
developed by the associates of the Institute for Health
from Boston and the Social Policy Department of the
Californian RAND Corporation162, which was adjusted
to Croatian circumstances163. The SF-36 includes scales
relating to (a) limitations on physical and social activi-
ties due to health problems, (b) difficulties in perform-
ing everyday life roles due to physical or emotional
problems, (c) subjective well-being, and (d) direct
assessment of overall health. Impaired health is one
of the consequences of unemployment164, but we
assume that it also has an impact on the probability of
finding employment.

Jahoda, M. (1982). Employment and unemployment – A social-psychological analysis. Cambridge University Press. Cambridge, United Kingdom.
161

Ware, J.E., Snow, K.K., Kosinski, M., et al. (1997). SF-36 Survey Manual and Interpretation Guide. The Health Institute, New England Medical Center. Boston, USA.
162

Jureša, V., Ivanković, D., Vuletić, G. et al. (2000). The Croatian Health Survey – SF-36: General quality of life assessment. Collegium Antropologicum, Vol. 24, 2000, pp. 69-78.
163

See, for example, Feather, N.T. (1990). The Psychological Impact of Unemployment. Springler-Verlag. New York, USA; Fryer, D., Payne, R. (1986). Being unemployed: A review of the literature on the psy-
164

chological experience of unemployment. In C.L. Cooper and I. Robertson (eds) International Review of Industrial and Organisational Psychology. John Wiley and Sons Ltd, pp. 235-278; McKee-Ryan, F.M.,
Song Z., Wamberg, C.R., Kinicki, A.J. (2005). Psychological and Physical well-being during unemployment: A meta-analytic study. Journal of Applied Psychology, Vol. 90, 2005, pp. 53-76; O’Brien, G.E. (1986).
Psychology of Work and Unemployment. John Wiley and Sons. Chichester, USA; Šverko, B., Maslić Seršić, D., Galešić, M. (2004). Nezaposlenost i subjektivno zdravlje. Jesu li najugroženije osobe srednje dobi?
In Suvremena psihologija, 11(3-4), 2004, pp. 283-298; War, P. (1987). Work, Unemployment, and Mental Health. Clarendon Press. Oxford, United Kingdom.)

78 Poverty, Unemployment and Social Exclusion

Statistical Appendix

1. Social exclusion and poverty indicators165

At-risk-of-poverty rate, without income in kind, 2003 18.9
At-risk-of-poverty rate by age and sex (%), total, M / F 17.7/20.1
0-15 years 16.4/16.7
16-24 years 17.0/17.3
25-49 years 14.0/14.3
50-64 years 16.7/16.6
65 years and over 28.6/34.4
At-risk-of-poverty rate by most frequent activity status (%)
Employed 6.6/4.3
Self-employed 22.8/28.5
Unemployed 40.6/28.9
Retired 23.3/21.7
Other economically inactive 18.8/25.1
At-risk-of-poverty rate by household type and age (%)
One-person household, total 37.3
M/F 32.0/39.4
One-person household, 30-64 years 26.5
One-person household, 65 years and over 44.9
Two adults, no dependent children, both adults under 65 years 13.3
Two adults, no dependent children, at least one adult 65 years or over 30.4
Other household without dependent members 11.1
Single parent household, one or more dependent children 31.8
Two adults, one dependent child 14.7
Two adults, two dependent children 15.2
Two adults, three or more dependent children 21.6
Other households with dependent children 15.2
At-risk-of-poverty rate by tenure status (%)
Tenant (Contracted, fixed and full rent) 20.2
Owner or rent free 18.9
At-risk-of-poverty threshold for one-person household (in HRK) 17,376.0
At-risk-of-poverty threshold for households consisting of two adults and two children (in HRK) 36,489.7
Inequality of income distribution - quintile share ratio (S80/S20) 5.0
Relative at-risk-of-poverty gap (%) 24.2
Long term unemployment rate, I/2004, total 6.8
M/F 5.8/7.9
Early school leavers (share of total population of 18-24 year olds having achieved ISCED level 2 or less and not attending education or training),
6.1
I/2004, total
M/F 6.9/5.2

All data was obtained from the Central Bureau of Statistics unless otherwise indicated.
165

80 Poverty, Unemployment and Social Exclusion

Statistical Appendix

Life expectancy at birth, 2003, total 74.9

M/F 71.4/78.4
Dispersion around the at-risk-of-poverty threshold, 2003
40% 6.8
50% 12.1
70% 25.7
At-risk-of-poverty rate before social transfers (%), 2003
Social transfers excluded from income 35.3
Pensions and social transfers excluded from income 43.8
Gini coefficient, 2003 0.30
Long term unemployment share (> 13 months), (total long-term unemployed population as proportion of total unemployed population), I/2004, total 49.2
M/F 46.8/51.5
Very long-term unemployment share (> 25 months), (total very long-term unemployed population as proportion of total active population), I/2004, total 38.3
M/F 37.8/38.8
Very long-term unemployment rate (> 25 months), I/2004, total 5.3
M/F 4.7/6.0

2. Human Development Index

Human Development Index (HDI) value, 2003 0.841
Life expectancy index, 2003 0.83
Education index, 2003 0.91
GDP index 0.78

3. Health
Infant mortality rate (per 1,000 live births), 2003 6.3
Under-five mortality rate (per 1,000 live births), 2003 7
Maternal mortality ratio adjusted (per 100,000 live births), 2003 8
Births attended by skilled health personnel (%), 2003 99.9
Health expenditure per capita (PPP US$), 2002 783
Public health expenditure (% of GDP), 2001 3.79
Private health expenditure (% of GDP), 2001 1.58

4. Education and literacy

Public expenditure on education166 (as % of GDP), 2003 4.67
Public expenditure on education, pre-primary and primary (as % of GDP), 2003 2.57
Public expenditure on education, secondary (as % of GDP), 2003 1.08
Public expenditure on education, tertiary (% of GDP), 2003 0.86
Adult literacy rate (% ages 15 and above) 98.1
Youth literacy rate (% ages 15-24), 2003 99.6

Source of data related to public expenditure (as % of GDP): Ministry of Science, Education and Sports, Croatia.
166

Poverty, Unemployment and Social Exclusion 81

Statistical Appendix

Net primary enrolment ratio (%), 2003/04 95.5

Net secondary enrolment ratio (%), 2003/04 84.5
Tertiary students in science, maths and engineering (% of all tertiary students), 2003/04 23.8

5. Gender inequality in education

Adult literacy rate (female rate % ages 15 and above), 2001 Census data 97.1
Adult literacy rate (female rate as % of male rate), 2001 Census data 98
Youth literacy rate (female rate % ages 15-24), 2001 Census data 99.7
Youth literacy rate (female rate as % of male rate), 2001 Census data 100
Female primary net enrolment ratio (%), 2003/04 95
Primary net enrolment ratio (female as % of male), 2003/04 0.95
Female secondary net enrolment ratio (%), 2003/04 86.8
Secondary net enrolment ratio (female rate as % of male rate), 2003/04 1.01
Female tertiary gross enrolment ratio (%), 2003/04 45.2
Tertiary gross enrolment ratio (female rate as % of male rate), 2003/04 1.16

6. Unemployment
Unemployed people (thousands), 2003 (administrative/labour force survey) 329.8/256
Unemployment rate, total (% of labour force), 2003(administrative/labour force survey) 19.2/14.3
Unemployment rate, female (% of male rate), 2003 120.7
Youth unemployment rate, total (% of labour force ages 15-24), 2003 35.8
Youth unemployment rate, female (% of male rate), 2003 112.2

7. Economic performance
GDP (US$ billions), 2003167 28.8
GDP per capita (US$), 2003168 6,485.8
GDP per capita (PPP US$), 2002169 10,984
GDP per capita annual growth rate (%), 2002 5.2
GDP per capita annual growth rate (%), 2003 170
4.3
Total outstanding external debt, end of period (% of GDP), 2002 68.7
Total outstanding external debt, end of period (% of GDP), 2003 78.7

8. Crime
Convicted adult perpetrators of criminal offences (per 100,000 people), 2003 516
Convicted adult perpetrators of criminal offences, women (%), 2003 9.9

Data for 2003 are provisional (calculated as the sum of the four quarterly figures for GDP).
167

Ibid.
168

Ibid.
169

Ibid.
170

82 Poverty, Unemployment and Social Exclusion

Statistical Appendix

Convicted adult persons, by sentences passed (% of total), 2003

Imprisonment - not suspended 11.0
Imprisonment - suspended 66.5
Convicted juvenile perpetrators of criminal offences (per 100,000 people), 2003 20
Convicted juvenile perpetrators of criminal offences - female (%), 2003 6.1
Persons in imprisonment (per 100,000 people), 2003 68
Persons in imprisonment - women (%), 2003 4.6

9. Gender empowerment measure

Gender empowerment measure (GEM) value, 2003 0.571
Seats in parliament held by women (% of total), 2003 17.8
Female legislators, senior officials and managers (% of total), 2003 26.2
Female professional and technical workers (% of total), 2003 52.1
Ratio of estimated female to male earned income, 2003 0.66

10. Gender inequality in economic activity

Female economic activity rate (% ages 15 and above), 2003 43.1
Female economic activity rate (% of male rate, ages 15 and above), 2003 73.9
Female employment in agriculture (as % of female labour force), 2003 14.9
Female employment in agriculture (as % of male), 2003 87.8
Female employment in industry (as % of female labour force), 2003 15.9
Female employment in industry (as % of male), 2003 39.5
Female employment in services (as % of female labour force), 2003 53.5
Female employment in services (as % of male), 2003 113.2
Women contributing family workers (% of total), 2003 74
Men contributing family workers (% of total), 2003 26

11. Gender-related development index

Gender-related development index (GDI) value, 2003 0.839
Life expectancy at birth, female (years), 2003 78.4
Life expectancy at birth, male (years), 2003 71.4
Adult literacy rate, female (% ages 15 and above) 97.1
Adult literacy rate, male (% ages 15 and above) 99.3
Combined gross enrolment ratio for primary, secondary and tertiary level schools, female (%), 2003/2004 77.2
Combined gross enrolment ratio for primary, secondary and tertiary level schools, male (%), 2003/2004 74.1
Estimated earned income, female (PPP US$), 2003 8,830
Estimated earned income, male (PPP US$), 2003 13,306

Poverty, Unemployment and Social Exclusion 83

Technical Note 171

Human Development Index - HDI

A composite index measuring average achievement in three basic dimensions of human development - a long
and healthy life, knowledge, and a decent standard of living. The HDI is a summary measure of human develop-
ment. It measures the average achievements in a country in three basic dimensions of human development:

- A long and healthy life, as measured by life expectancy at birth.

- Knowledge, as measured by the adult literacy rate (with two-thirds weight) and the combined primary, sec-
ondary and tertiary gross enrolment ratio (with one-third weight).
- A decent standard of living, as measured by GDP per capita (PPP US$).

Gender Empowerment measure - GEM

A composite index measuring gender inequality in three basic dimensions of empowerment - economic partic-
ipation and decision-making, political participation and decision-making, and power over economic resources.

Focusing on women’s opportunities rather than their capabilities, the GEM captures gender inequality in three
key areas:

- Political participation and decision-making power, as measured by women’s and men’s percentage shares of
parliamentary seats.
- Economic participation and decision-making power, as measured by two indicators - women’s and men’s per-
centage shares of positions as legislators, senior officials and managers, and women’s and men’s percentage
shares of professional and technical positions.
- Power over economic resources, as measured by women’s and men’s estimated earned income (PPP US$).

Gender –related Development Index - GDI

A composite index measuring average achievement in the three basic dimensions captured in the human de-
velopment index - a long and healthy life, knowledge, and a decent standard of living - adjusted to account for
inequalities between men and women.

While the HDI measures average achievement, the GDI adjusts the average achievement to reflect the inequali-
ties between men and women in the following dimensions:

- A long and healthy life, as measured by life expectancy at birth.

- Knowledge, as measured by the adult literacy rate and the combined primary, secondary and tertiary gross
enrolment ratio.
- A decent standard of living, as measured by estimated earned income (PPP US$).

The indicators were calculated using the international UN methodology. For more information see: http://hdr.undp.org/statistics/.
171

84 Poverty, Unemployment and Social Exclusion

Ratified Human Rights Conventions

1. Status of major United Nations human rights conventions Date of ratification or succession172
International Convention on the Prevention and Punishment of the Crime of Genocide, 1948 08 Oct 1991
International Convention on the Elimination of All Forms of Racial Discrimination, 1965 08 Oct 1991
International Covenant on Civil and Political Rights, 1966 08 Oct 1991
International Covenant on Economic, Social and Cultural Rights, 1966 08 Oct 1991
Convention on the Elimination of All Forms of Discrimination Against Women, 1979 09 Oct 1992
Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment, 1984 08 Oct 1991
Convention on the Rights of the Child, 1989 08 Oct 1991
Convention relating to the Status of Refugees, 1951 08 Oct 1991
Convention relating to the Status of Stateless Persons, 1954 08 Oct 1991

2. Status of fundamental labour rights conventions Date of ratification or succession173

Freedom of association and collective bargaining - Convention 87 08 Oct 1991
Freedom of association and collective bargaining - Convention 98 08 Oct 1991
Elimination of forced and compulsory labour - Convention 29 08 Oct 1991
Elimination of forced and compulsory labour - Convention 105 05 Mar 1997
Elimination of discrimination in respect of employment and occupation - Convention 100 08 Oct 1991
Elimination of discrimination in respect of employment and occupation - Convention 111 08 Oct 1991
Abolition of child labour - Convention 138 08 Oct 1991
Abolition of child labour - Convention 182 17 Jul 2001

3. Status of Council of Europe major human rights conventions Date of ratification174

Convention for the Protection of Human Rights and Fundamental Freedoms 05 Nov 1997
European Social Charter 26 Feb 2003
European Convention for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment 11 Oct 1997
European Charter for Regional or Minority Languages 05 Nov 1997
Framework Convention for the Protection of National Minorities 11 Oct 1997
European Convention on the Exercise of Children’s Rights not ratified
European Convention on Nationality not ratified

Source: Official website of the Ministry of Foreign Affairs and European Integration www.mfa.hr
172

Source: ILOLEX, http://www.ilo.org/ilolex/english/docs/declworld.htm

173

Official web site of the Ministry of Foreign Affairs and European Integration http://www.mfa.hr/CustomPages/Static/HRV/Files/1-3-03-multilateralni-07e.pdf
174

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