The Need For Coordination Of Pension Systems In Balkans With A Focus On Albania, Macedonia And Kosovo1

1. Social Policy Context

This paper will treat one of the social challenges facing the Western Balkan countries in the process of European integration, the need for coordi­nation of the old age pension systems. Along with the economic cooperation, the social security coordination is an important aspect for the European inte­gration of Balkan countries. After 2000, the social policy has taken a special attention in EU agenda, reflected on the EU assistance projects for Western Balkan, with a regional approach. It was related even with the progress done by the Balkan countries in the process of EU integration. Macedonia is become a candidate for EU membership, whereas Albania after signing the Stabilization and Association Agreements with the EU, is applying for being a candidate country. Kosovo is enjoying the independence² and is in the process of state building, under the international assistance, but at the same time is inspiring for EU integration.

Social policy developments, especially the reformation of pension sys­tems reflect internal transition policies in each country, policy transfer from international organizations after the fall of socialism regimes, and increasing­ly, the influence of EU integration processes. On the other side, pension sys­tem not only reflects the changes of the whole social system, but it is one of the instruments to influence the changes. Especially it can put incentives for the labour market participation for both, males and females, free movement of people, etc.

Building up new pension schemes or remodeling the existing ones to respond the new social and economic realities in the Balkan countries was one of the priorities in the strategic objectives for each country. Social state is sanctioned on the basic legislation - Constitution and the guaranteeing the social rights remains the priority on the strategic objectives. Therefore, the process of decision making in this domain should be balanced between the social needs and economic development priorities.