Czechia

   

Social Policies

#22
Key Findings
With a generally effective social system, Czechia receives middling scores with regard to social policies (rank 22). Its overall score on this measure remains unchanged relative to 2014.

The country’s healthcare system, financed through universal compulsory insurance, was pushed to the brink during the second COVID-19 wave. Life expectancy fell by a percentage point in 2020, more than in most EU states. However, digitization in the sector improved.

Educational outcomes are good, although the pandemic exacerbated inequalities, with some students left behind by online instruction. A significant share of Roma suffer from social exclusion, and the lack of affordable housing – along with the consequent homelessness – is becoming a more serious problem. Childcare availability is limited, contributing to a comparatively low employment rate among women.

The pension system appears largely sustainable, although reform remains on the agenda. Few resources are devoted to integration programs. Some politicians have encouraged hostility toward foreigners.

Education

#26

To what extent does education policy deliver high-quality, equitable and efficient education and training?

10
 9

Education policy fully achieves the criteria.
 8
 7
 6


Education policy largely achieves the criteria.
 5
 4
 3


Education policy partially achieves the criteria.
 2
 1

Education policy does not achieve the criteria at all.
Education Policy
6
Educational outcomes in Czechia are good, graduates with a secondary-level education are quite employable and the employment premium to tertiary-level education is among the highest in the European Union. However, the Czech education system faces challenges in terms of producing an adequately skilled labor force and ensuring equity among social groups.
Socioeconomic inequalities in school outcomes continued to rise prior to and during the COVID-19 pandemic, as did school dropout rates. There are wide regional disparities, and educational inequalities are quite often passed through the generations. Roma children continue to be marginalized, and are disproportionally educated in special schools (Roma children represent about one-third of the pupils; 10.3% of Roma children are educated in special schools, compared to 2% of overall children). Participation in early childhood education has increased, but some conservative political forces are opposing measures that would enable enrollment for two year olds, arguing for the “indispensability of maternal care.” Tertiary-education attainment rates continue to rise, but completion rates remain low. Financial support is limited, with only 1% of students receiving financial aid. The share of publicly funded Ph.D. fellowships is also below the EU average. The rate of absorption of EU funds within the education sector is excellent. However, implementation of some programs (e.g., digital literacy) has been delayed, mainly because school equipment is outdated, and many teachers lack relevant skills and training. The response to the COVID-19 pandemic in the educational sector was uncoordinated and exposed continuing inequalities. Due to large differences in digitalization, children from poor families, and those with special needs, were often left behind when some schools shifted to online instruction. Tertiary education adapted better to online instruction.

Social Inclusion

#18

To what extent does social policy prevent exclusion and decoupling from society?

10
 9

Policies very effectively enable societal inclusion and ensure equal opportunities.
 8
 7
 6


For the most part, policies enable societal inclusion effectively and ensure equal opportunities.
 5
 4
 3


For the most part, policies fail to prevent societal exclusion effectively and ensure equal opportunities.
 2
 1

Policies exacerbate unequal opportunities and exclusion from society.
Social Inclusion Policy
6
Due to a favorable employment picture and a still redistributive social policy, income inequality and poverty in Czechia remain among the lowest in the OECD and the European Union. However, the differences between regions are relatively high and have continued to increase. A significant proportion of the Roma population, which constitute an estimated 2.2% of the overall Czech population, suffer from social exclusion. A further pressing problem of social inclusion is the lack of affordable housing and the growing number of homeless people, including children and seniors, which was exacerbated during the pandemic as street life became even more difficult for most homeless people. Another problem is the high number of people who cannot pay their debts. As of 2021, more than 712,000 people in Czechia faced legal obligations that extended to confiscating personal property and compulsory deductions from earnings due to their debts. Nearly a fifth of the population is affected. Some relief was offered by changes to the law in January 2022, including provisions that debts can only be sought for 12 years and can be canceled if, after six years and with agreement of the creditor, the costs of recovery are greater than the revenues received.

Health

#18

To what extent do health care policies provide high-quality, inclusive and cost-efficient health care?

10
 9

Health care policy achieves the criteria fully.
 8
 7
 6


Health care policy achieves the criteria largely.
 5
 4
 3


Health care policy achieves the criteria partly.
 2
 1

Health care policy does not achieve the criteria at all.
Health Policy
7
Healthcare in Czechia is based on universal compulsory insurance and largely financed from public sources. While healthcare spending has been relatively low from an international perspective, the healthcare system is rather inclusive, ensures a wide range of choice for both providers and consumers of healthcare, and provides a high level of service by international standards. Prior to the COVID-19 pandemic, Czechia had among the lowest levels of unmet needs for medical care due to financial reasons, distance or waiting times in the European Union (OECD/ European Observatory on Health Systems and Policies 2021: 15). However, life expectancy, although steadily increasing before the COVID-19 pandemic, has remained more than two years below the EU level, and there have been substantial differences in health outcomes between the capital region of Prague and the rest of the country. In structural terms, the Czech healthcare system has suffered from a strong reliance on hospitals and a shortage of nurses.

The Czech healthcare system largely withstood the first wave of the COVID-19 pandemic. Despite the massive additional public spending, however, some hospitals found themselves on the brink of being overwhelmed during the second wave of the pandemic, when the number of infections was rather high in Czechia. Life expectancy fell by about one percentage point in 2020, which is stronger than in most EU member states (OECD/ European Observatory on Health Systems and Policies 2021: 4). On the positive side, the COVID-19 pandemic has fostered the digitalization of the healthcare sector and has led to some improvements in administrative methods.

Citations:
OECD/European Observatory on Health Systems and Policies (2021): State of Health in the EU: Country Health Profile Czechia. Paris: OECD, Brussels: European Observatory on Health Systems and Policies (https://ec.europa.eu/health/system/files/2021-12/2021_chp_cs_english.pdf).

Families

#26

To what extent do family support policies enable women to combine parenting with participation in the labor market?

10
 9

Family support policies effectively enable women to combine parenting with employment.
 8
 7
 6


Family support policies provide some support for women who want to combine parenting and employment.
 5
 4
 3


Family support policies provide only few opportunities for women who want to combine parenting and employment.
 2
 1

Family support policies force most women to opt for either parenting or employment.
Family Policy
6
As evidenced by the female employment rate in Czechia being below the OECD average, parents’ effective freedom to decide whether or not to work is limited. The main obstacle is the poor provision of care for very young children, the availability of which declined significantly during the 1990s, and has shown little improvement more recently. Enrollment in facilities for children aged 0–2 is rather low. The situation is better among older age groups, reaching 93% for five year olds, as kindergarten attendance during the last year of preschool has been mandatory since 2017. While public support for alternative forms of childcare, including corporate kindergartens and so-called children’s groups, has expanded, the gap in childcare facilities has persisted. A further reason for the low employment rate of women with young children is the lack of willingness among employers to provide part-time work or flexible working hours. Although the Labor Code entitles parents caring for a child under 15 years old to part-time work, only 9.9% of women were employed part-time in 2020, much less than the OECD average.

The Babiš government has done relatively little to address these issues. In 2019, it reduced the ceiling on the level of earnings required to be eligible for a parental allowance benefit, but also allowed parents to put their children in kindergarten while receiving parental allowance and increased the limit for placing children under two years of age into preschool care to 92 hours a month. During the COVID-19 pandemic, the government also extended the nursing allowance, a social benefit for persons who cannot work full-time because they care for a child, or a sick or disabled family member, with the view of supporting families hit by kindergarten and school closures. However, these measures, though they have improved the material situation of families, have not been sufficient to prevent a resurgence of traditional gender roles.

Pensions

#11

To what extent does pension policy realize goals of poverty prevention, intergenerational equity and fiscal sustainability?

10
 9

Pension policy achieves the objectives fully.
 8
 7
 6


Pension policy achieves the objectives largely.
 5
 4
 3


Pension policy achieves the objectives partly.
 2
 1

Pension policy does not achieve the objectives at all.
Pension Policy
7
The Czech pension system has developed through gradual and partial reform of the pay-as-you-go system that existed before 1989. Its centerpiece is a mandatory public pension insurance scheme, administered by the Czech Social Security Administration (Česká správa sociálního zabezpečení, ČSSZ). Despite the aging population, the scheme was in surplus in 2018 and 2019, but posted small deficits in 2020 and 2021, which were largely caused by the decline in incomes stemming from the COVID-19 pandemic. Despite a 5.5% increase in pension spending in 2021 (from the first nine months), revenues from social insurance contributions grew even more rapidly with renewed economic growth and the pension fund was again in surplus. The average pension provided by this system was equivalent to only 45.2% of average wages in 2020, and there is roughly a 20% difference between the average pension for women and men. The official retirement age, which has been gradually increasing since 1996, is different for men and women. In the case of women, this age also depends on the number of children reared. In 2017, the ceiling for the maximum retirement age was set at 65 years.

Although the current system will remain sustainable for some time, reform has been on the agenda of governments since the mid-1990s and various adaptations have been made, although without ever achieving full political consensus. The Babiš government set pension reform as the first of its six main priorities in its government manifesto, emphasizing the need for a more precise separation between the public pension scheme and the regular state budget. In February 2019, led by the Ministry of Labor and Social Affairs, a new pension commission was established, bringing together representatives from the parliamentary political parties, the social partners, the academic community and other relevant interest groups and pro-retiree organizations. In October 2019, the commission reached an agreement on a model that would separate the current public pension pillar into two components. One should be a solidarity pillar, paid from the budget. The second should be paid through contributions. However, it was impossible to propose a pension reform that would lead to a broad agreement (Jahoda 2021). Petr Fiala’s new coalition government also set pension reform as a priority in its manifesto.

Citations:
Jahoda, R. (2021): Czech Republic: Parliament may not approve the pension reform proposed by the Ministry of Labour and Social Affairs. European Social Policy Network, ESPN Flash Report 2021/44, Brussels: European Commission.

Integration

#30

How effectively do policies support the integration of migrants into society?

10
 9

Cultural, education and social policies effectively support the integration of migrants into society.
 8
 7
 6


Cultural, education and social policies seek to integrate migrants into society, but have failed to do so effectively.
 5
 4
 3


Cultural, education and social policies do not focus on integrating migrants into society.
 2
 1

Cultural, education and social policies segregate migrant communities from the majority society.
Integration Policy
4
Since Czechia’s accession to the European Union in 2004, the number of foreigners living in the country has significantly increased, reaching 6.1% in September 2021. EU citizens make up about three-fifths of this number. Of those from outside the European Union, a large proportion of people are from Ukraine, Vietnam and the Russian Federation. Czechia’s integration policy, developed from 2000, is targeted at citizens from outside the European Union, and includes the provision of language courses and guidance on life in Czechia. However, the budget for integration measures is small. In 2021, CZK 54 million financed the equivalent of about 50 employees. The most common reason for staying in Czechia is economic activity. According to the 2021 census, among foreigners in Czechia, the percentage of university-educated people is generally higher than the average. However, most foreigners are only temporarily resident. Barriers to obtaining citizenship are such that citizenship was granted to only 2,973 people in 2019. Typically, foreign workers, especially those from outside the European Union, are recruited in their country of origin by employment agencies and come to work in the manufacturing industry, often staying in company accommodation with little integration into society. Reports from the Labor Inspectorate confirm that many foreigners are paid less than Czech employees in comparable jobs and their employment conditions often fail to comply with the law. Although Czechia is not located on one of the major routes used by refugees entering Western Europe, there have been significant numbers of applications for asylum, peaking in 2001 at 18,094 of which 83 were granted. The number of applications was particularly low during the COVID-19 pandemic. In 2020, 1,164 applications were submitted and 72 were granted. This record reflects the hostility and suspicion directed toward foreigners by a proportion of the population, which is exploited and reinforced by some leading politicians. Although four-fifths of Czechs agree that foreigners come to work, more than half of citizens (53% in March 2020) agree that foreigners coming in recent years represent a problem. However, when Czechs consider the issue of incoming foreigners with specific reference to their place residence, the proportion that perceive foreigners as a problem is lower (24%).

Safe Living

#18

How effectively does internal security policy protect citizens against security risks?

10
 9

Internal security policy protects citizens against security risks very effectively.
 8
 7
 6


Internal security policy protects citizens against security risks more or less effectively.
 5
 4
 3


Internal security policy does not effectively protect citizens against security risks.
 2
 1

Internal security policy exacerbates the security risks.
Internal Security Policy
7
Crime figures in Czechia are unremarkable. The police have recorded a drop in crime rates for the fifth consecutive year, and more than half of all cases are cleared up. The COVID-19 pandemic led to lowest overall crime level in Czech history, mainly because of the restrictions imposed on people’s mobility. At the same time, domestic violence increased and the shift of crime to cyberspace has continued. Citizens feel secure and mainly indicate satisfaction with the performance of the police. Levels of trust in the police and the army are high and stable. In September 2019, 69% of citizens indicated that they trusted the police; in September 2021, it was 70%. However, regional differences in criminal activities are increasing, and there are tensions in regions featuring a relatively high concentration of marginalized groups.

Global Inequalities

#21

To what extent does the government demonstrate an active and coherent commitment to promoting equal socioeconomic opportunities in low- and middle-income countries?

10
 9

The government actively and coherently engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. It frequently demonstrates initiative and responsibility, and acts as an agenda-setter.
 8
 7
 6


The government actively engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. However, some of its measures or policies lack coherence.
 5
 4
 3


The government shows limited engagement in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. Many of its measures or policies lack coherence.
 2
 1

The government does not contribute (and often undermines) efforts to promote equal socioeconomic opportunities in low- and middle-income countries.
Global Social Policy
7
Czechia is not a significant player in international development and devotes a relatively low share of GDP to development aid. However, it has been a member of the OECD’s Development Assistance Committee since 2013 and has pursued a relatively coherent development cooperation strategy with a clear focus on countries where its own experience of transition can be helpful. While the Ministry of Foreign Affairs is the primary coordinator of bilateral and multilateral development cooperation, many private, public and non-governmental actors are also extensively involved in the selection of program countries and the identification of priority sectors, as well as in on-the-ground activities in partner countries. In 2019, Czechia launched a new development aid program to promote investment by Czech companies in developing countries. In 2020, Czechia joined Team Europe, a joint EU response to the pandemic in partner countries (Ministry of Foreign Affairs 2020). In geographic terms, the Czech contribution to the program has focused on the existing priority countries of Czech bilateral development cooperation (Bosnia and Herzegovina, Cambodia, Ethiopia, Georgia, Moldova, and Zambia), as well as on Afghanistan, Ukraine and some further African countries.

Citations:
Ministry of Foreign Affairs (2020): Czech Diplomacy 2020. Prague (https://www.mzv.cz/jnp/en/foreign_relations/reports_and_documents/czech_diplomacy_2020.html).
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