Inequality and Government Policies in Central and Eastern Europe

Since the onset of the transformation process in Central and Eastern Europe (CEE), inequalities of income, earnings, and access to essential services have increased in all countries in the region. Direct consequences thereof have been a drop in the living standards for certain population groups and a considerable decline in absolute and relative well-being (Gruen and Klase, 2001). Falling income and rising inequality have already dealt a substantial blow to the human and social capital in many transition countries.