CSocD - Statement by H.E. Dr. Nino Žganec, State Secretary, Ministry of Health and Social Welfare, for the General Discussion at the High-Level Plenary Meeting of the Commission for Social Develoment

Statement by H. E. Dr. Nino Žganec State Secretary Ministry of Health and Social Welfare General Discussion High-Level Plenary Meeting Commission for Social Development 11 February 2005 Mr Chairman, Let me congratulate you as well as other members of the bureau on your election. Allow me also to thank the Secretary-General for comprehensive reports for this important session. As Croatia has aligned itself with the statement of the EU, I will just briefly underline some of the points which are of particular importance to my country. On behalf of the Government of the Republic of Croatia, allow me to express our great satisfaction for taking part in the work of the Commission, especially during this session, when we mark the tenth anniversary of the Social Summit. We welcome the review of the implementation of its outcome and that of the 24th Special Session of the General Assembly, with a view to integrate a social development perspective in the comprehensive review of the progress in meeting all of the commitments contained in the United Nations Millennium Declaration. Mr. Chairman, Despite a highly developed technology, outstanding scientific achievements and a high degree of social prosperity, the beginning of the Third Millennium has found us facing a crisis of the welfare state, and a large proportion of the population that in some areas lives on the edge of poverty and social exclusion. All this, in my Government´s view, calls for finding new, common modalities in meeting the three core issues of the Summit, namely poverty eradication, employment and social integration. Meeting these global challenges requires the development of an overall legislative framework and political strategies for equal access to social rights for all, as well as the creation of an environment suitable for the social integration of vulnerable groups that live on the margins of the society and in conditions of constant insecurity. This implies the development of services and departments that will enable access to housing, health care, education, adequate employment, welfare and other fundamental social rights. Mr Chairman, Two key elements have characterised the current social situation in Croatia: the transition, and the conflict-related problems we have inherited from beginning of the 1990-ties. At the moment, in preparation for further economic development and European integration, the Government is endeavouring to restructure the social sector. This means that civil society and local government are acquiring increasingly important roles in the welfare sphere, which, in concert with a transformation of the structure and nature of the labour market, actually constitutes the model of the so-called Combined Social Policy. Mr Chairman, Social policy in Croatia is primarily oriented towards the creation of conditions for stimulating economic growth and development, as well as to an active employment policy and human resource management, in accordance with EU standards. At the same time, there is an endeavour to channel public expenditure towards the identified priorities of the most vulnerable social groups to encompass as great a number as possible, those who are immediately below the poverty line. Although it cannot be said that Croatia is a country in which poverty has assumed major proportions, the Government has, as part of the Fight Against Poverty and Social Exclusion Programme, passed a number of long-term and short-term measures in the area of labour legislation, income, tax and employment policies, unemployment benefits, the retirement system, health care, housing, education, family policy, welfare and civil society. The relative poverty indicators in Croatia, according to research carried out in 2003 stand at 18.2%, which is along the lines of the poverty indicators in some EU member. However, without important welfare transfers and pensions, 40% of the population of Croatia would be at risk of poverty. For the sake of the protection, endorsement and inclusion of socially vulnerable groups in society, particularly into the life of the local community, a number of programmes have been designed that encompass the area of the protection of children, youth, the family and disabled persons, among others. An example of this approach involves projects aimed at increasing the presence of Romany children in schools, at reducing their educational segregation, helping to introduce basic infrastructure into Romany settlements, involving their representatives in local decision making. Mr Chairman, Pursuant to the conclusions and recommendations of the Copenhagen Social Development Summit, reforms continue through further harmonisation with the criteria and standards currently enforced in the countries of the EU. After the implementation of a reform of the pension system, which endeavoured to create a long-term sustainable system of retirement insurance, measures to improve the conditions of retired persons are ongoing. An active employment policy is being carried out in accordance with an adopted national Employment Incentives Programme. There are still a few particularly vulnerable groups that are more exposed to the problem of unemployment: women, youth without work experience, workers over the age of 50, and persons with disabilities. Along with measures of assistance, an active employment policy is also being directed at the unemployed (subsidisation of hiring, public works and special programmes of hiring incentives.) Thus, for example, the employment of persons with disabilities is directed towards their taking part in the open labour market as equally as possible, while tax, customs and other incentives are provided for their employers. For people who cannot get jobs on the open labour market or retain employment with an employer even with the use of tax benefits, employment in special conditions is provided. This includes employment in specially founded establishments or companies, self-employment and employment in family businesses. This kind of concept for the vocational rehabilitation and employment of persons with disabilities means taking them out of their previous circumstances, defined by stigma, and putting them into dynamic and equal-opportunities working environments. The strategy for the development of health care and health insurance covers the stabilisation and improvement of the health care system, placing the focus of health care on the obviation of health risks and the promotion of healthier life styles, as well as improving the quality and accessibility of the treatment of illnesses. Family policy is directed primarily towards the strengthening of the role of the family, and improving the protection of children from abuse and neglect. There are two primary income models: the employment of either of the parents, and the development of family services that will back up the two-income family model. Changes that are planned for pre-school and primary and secondary education should respond to the accelerated process of globalisation and enable Croatia to meet world trends in knowledge and education, as well as in the development of expertise in line with the needs of the labour market and the advancement level of our society. Reform of the welfare system presupposes further decentralisation and the transfer of authorities to local self-government, in order to make services and departments as effective and as accessible to the general public as possible. This implies more systematic financial support for the work of non-governmental and charitable organisations and the computerisation of services. We also believe that the privatisation of welfare services would contribute to their diversity and hence a higher quality of care for clients. Just how successful these measures are implemented in each individual system depends on the degree of interconnection of the whole of the social security system. Mr Chairman, We are very aware that the outlined goals require necessary financial preconditions, a more rapid restructuring of the economy, the completion of the privatisation process and further strengthening of the civil sector. We believe that Croatia´s involvement in global processes in this area will contribute to the overall progress of the aims set forth. Thank you Mr. Chairman.

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