The Retirement Behaviour of Older Workers in Transitional Economies

Research has shown that public pay-as-you-go, defined-benefit pension plans penalise those who stay at work beyond a certain age by reducing the present discounted value of future retirement benefits. In discussions on the effectiveness of policies aimed at eliminating the age-dependency factor in workers' decisions to retire, it is often assumed either that the benefits in all future periods have the same weight in the present discounted value or that the discount rate is close to unity due to low real interest rates used in this case. Galuscak first considered the U.S. pension scheme, showing that discounting plays a crucial role since the formula for the present discounted value of future retirement benefits is sensitive to the discount rate used. He then analysed the role of social security incentives and retirement provisions on older workers' behaviour in the labour markets of the Czech and Slovak Republics and the effect of the macroeconomic environment on workers' decisions to retire. He calculated the optimal parameters of the Czech and Slovak pension rules and assessed the potential effectiveness of changes to the Czech scheme introduced in January 1996.

The Hungarian Economic Elite After the Political Transition

Erzsebet Szalai (Hungary). The Hungarian Economic Elite after the Political Transition. Ms. Szalai is a research fellow in the Institute of Political Sciences in Budapest and worked on this project from July 1996 to June 1998. In the period following the political changes of 1989, the leading forces of the economic elite have gained increasing superiority over the political and cultural elites, with the clear ambition of putting the latter to their service. The power relations within the economic elite were characterised by "a war of all against all". The desire to gain precedence over others became an openly declared value. The formation of estates and the intensification of competition became embodied in a multitude of lobbies which cropped up to assert short-term interests. After the state socialist period, possession of at least two of the social, economic and cultural forms of capital is necessary to join one of the three segments of the elite: political, cultural or economic. What defines the ability of the members of the three elite groups to assert their interests is their ability to convert any of the three types of capital into another. That is to say, the basis on which they can retain and extend their position is "symbolic capital" as interpreted by Bourdieu. The concept of symbolic capital is useful for describing the power relations following the collapse of state socialist systems and societies. In the state-socialist system, the political, economic and cultural spheres are tightly interwoven, and this interpenetration slackens only slowly after the system's disintegration. A close institutional relationship between the three spheres continues to make it easier for power actors to convert social, economic and cultural capital from one type to another. Symbolic capital, or the easy transfer between the three spheres, in turn reproduces the institutional relationship, or more precisely, complicates the separation of the three spheres after the fall of state socialism.

Changing Values in a Transitional Period

This project examined the change in values in the still unfinished transitional period in Serbia during the 1990s and compared it with Greece in the same period. During this period the social and political transition affected the ruling value system primarily through changes in the modes of the production and representation of reality. The most remarkable trait of this period in Serbia is the parallel and interweaving existence of different value systems. The very perception of reality has been blurred by the emergence of a very complex technical and ideological structure. Reality is presented by and through extensions and additions, the models of which are language and media. With the development of media technology and global communication and information systems, representation has become the only available reality. This enables the media to overtly and unlimitedly intervene in reality, to manage and change it without constraint and thus have a direct impact on values. The difference between public and private is abolished, so the media start promoting exclusive collective values. However, since the collective thus loses its counterpart, it itself needs to be redefined. This confusion of values make the possible results of their change uncertain. It will either open up a space for multiculturalism and social pluralism and thus completely replace the old systems of values, or result in an indefinite survival of different, often contradictory, value systems and conceptions of reality, which often lead to all forms of exclusivity and intolerance.