Transformatin process in Estonia: a challenge for social policy

The aim of this study is to analyze the new economic situation households have to face in Estonia and to discuss the new tasks and responsibilities of social policy in this new situation. The data used are based on a sample of 419 households monitored in January 1993. The study reveals that low income and unequal income distribution is characteristic of today’s Estonia. The average salary of households has continuously increased but the increase has all the time been lower than that of the cost of living. The article discusses the new socio-political tasks and responsibilities. The main task is to reach the optimal balance of limited resources between economic development and social expenditures. The state has to support disabled people who cannot work but it cannot take the responsibility of guaranteeing a minimum of living for everyone