Poverty, social exclusion and social policy in the Czech Republic

This article analyses the pattern of poverty and social exclusion in the Czech Republic and the impact of social policy on this pattern. The analysis is mostly based on data from the Czech Survey on Social Conditions of Households (2001; 27,000 respondents); Eurostat data provide a benchmark for making international comparisons. The poverty rate in the Czech Republic is among the lowest in Europe. On the other hand, material deprivation, as well as concentration of poverty within specific population groups, is high, with the unemployed facing the highest risk of poverty. Social policy measures in effect reinforce this pattern: while the benefit system is highly redistributive and effectively eliminates income poverty among households of employed persons and among pensioners, incomes of persons outside paid employment are protected less effectively. Labour market policy measures are insufficient in scope and inadequate in targeting groups which are facing the highest risk of labour market exclusion and poverty. We argue that although this practice is effective at present, it is not sustainable in the long term.