EKONOMICKÝ ČASOPIS

1 In constant prices.
² According to labor force survey.
³ According to the NBS balance of payments.
⁴ According to consumer prices employees
⁵ Current exchange rate as of 31. 12
⁶ Interest rate from loans provided by commercial banks
⁷ In non-financial organisations with 20 and more
^o Estimate

DP growth rate in 2000 (similarly to 1999) increased thanks to the effect of the two factors. The first one was the economic policy supporting the balance recovery and acting in favour of the reforms, the second factor appears to be the continuation, and possibly culmination, of the favourable development of the world economy boom. Thanks to the impact of the above listed factors GDP growth rate achieved however low, yet positive value of 2.2 %. Combination of the positive influence of these factors in 2000 manifested itself also in the further decrease of the foreign trade balance deficit.

Data on parameters and results of the financial and economic policy impacts (see figures on the government economy development, on governmental loans, interest rate, and also on differences between the rates of total and core inflation) witness the determination one proceeded in the years 1999 and 2000 towards the elimination of the causes of economic unbalance. Apparently just the combined effect of the pro-reform economic policy (inclusive its effect on the real wages decrease), and the favourable situation in the external economic environment led in 2000 towards the improvement of the financial situation of the companies.

Information presented in Table 1 points out, however, that the measures carried out in favour of the external and internal market balance together with the implementation of restructuring, plus the meagre GDP growth rate resulted in 1999 and 2000 in a substantial increase of the labour market unbalance.

The outlook for 2001 starts from the ascertainment that the quality of external environment will not deteriorate considerably in 2001 compared to the year 2000. Assuming that similar, however compared to the past a bit looser relation between cyclic development in advanced countries and the Slovak exports is still valid, one can expect the real growth rate of the exports of goods and services approximately within the interval 9.5 % and 10.5 %. Resumed growth of domestic demand alongside with the elimination of import surcharge (and supposing relatively stabilised exchange rate development) will probably cause some strengthening of imports of goods and services at the level of approximately 11 – 12 %. Respecting the estimated export and import growth rate one can expect the share of net exports in GDP (fixed prices) at the level of some –1.5%. In current prices net exports could reach some –35 to –45 billion Sk, which corresponds to about –3.5 to –4.5 % of the GDP.

Referring to the previous export extension will in the year 2001 improve also the de-velopment trends in internal demand. This will be most notable in the development line of the most important part of the domestic demand – the demand (consumption) of house-holds. After its decrease in the year 2000 by 3.4 % one can expect in the year 2001 its real growth. The growth of household demand will be formed as the total increment of household consumption and will consist of the two parts. The first will be the current household consumption increment resulting from the difference between the increments of current incomes and current expenses of households less their gross savings (we assume 8 % nominal growth). The second part will result from the payout of bonds issued by the National Property Fund, which will increase the household consumption nominally by additional 4,3 %. From the both of the above mentioned resources the household consumption will increase nominally by 12.4 %, really by 4 %.

Considering the prediction of the economic growth rate, but also due to the continuing strict control of the government expenditures we expect that after the decrease in the years 1999 and 2000 the government consumption will in the year 2001 increase by 2.0 %.

Considering relevant context, mainly the combination of factors favourable for the development of investments in the sector of non-financial organisations one arrives at the prognosis of 6.5 % increase of gross fixed capital formation in 2001.

We expect that this development trend of the economic activity appreciated by the systematic increase of the real growth rate of gross production in individual quarters of the year 2000 will continue in the year 2001 too.

For a trouble-free adjustment of the supply to the increasing demand relatively favourable conditions were created in the year 2000 also on the basis of real investments increase by 4.3 %, of which investments into a non-financial sector increased by 6.3 %.

In the year 2001 the growth rate of consumption prices compared to the year 2000 will probably decrease. Price increase will be attenuated by the elimination of import surcharge, by smaller inflationary effect of the adjustment of controlled prices and by the growth of competition in the retail network. Price level increase could be, however, supported by the unfavourable and uneasily predictable development in the energy market, by possible transfer of the increase electricity prices to producers, by the possible transfer of previous year’s higher producer prices into consumer prices, and by the restored growth of the domestic demand. We expect that the average annual inflation rate will be within the range determined by the National Bank of Slovakia, probably closer to its upper limit, approximately at the level of 7.5 %– 8.5 %.

Negative impacts of stabilising measures mainly endure in the development trends at the labour market. One can expect change here in the year 2001 in the wages area, where average nominal wage increase will exceed the inflation rate. Based on this, real wages in the whole Slovak national economy will increase on average by 1.5 %.

Modest improvement of the economic growth rate will in the year 2001 eliminate the unfavourable impacts on employment rate development caused by the limitation of domestic demand. On the other hand, the link between the higher GDP growth rate and the continuing increase in labour productivity will fairly limit the chances to improve the employment development in future. Changed situation in the labour market, which in the year 2000 was seen only as a slowdown in its unfavourable trends, will in the year 2001 bring its first, however modest positive results.

According to our estimates the total employment that (according to labour force surveys) in 2000 decreased by 1.4 % will in the year 2001 increase by 0.6 %. The unemployment rate will presumably also in the year 2001 oscillate around its average level recorded in the year 2000 (18.6 %).

The ascertainment on the possible development of the individual parts of the total demand and of the production potential in the Slovak economy in the year 2001 are summarised in the table 2.

T a b l e 20
Prognosis on the Slovak Economy Performance in 2001¹

1 In constant prices 1995.
² Including consumption of non-profit institutes serving to households.
³ Changes in inventories match the rate of formation of gross fixed capital.

Concluding the overall review of the Slovak economy in the year 2000 we would like to repeat that its overall equilibrium improved. At the same time we must stress that the currently achieved equilibrium still cannot be considered as satisfactory, and its improvement therefore should be permanent. Several open and complicated tasks cross over from the year 2000 into the next period (namely the accomplishment of the banks’ restructuring, enterprising sector restructuring and the restructuring of social welfare system). Without solving these tasks one cannot retain economic equilibrium not even on the current level.

MOBILITA KAPITÁLU V TRANZITÍVNYCH EKONOMIKÁCH STREDNEJ EURÓPY: MAKROEKONOMICKÉ FAKTORY A ŠTRUKTÚRNE POLITIKY

Vladimír BALÁŽ – Allan M. WILLIAMS

Článok sa zaoberá štruktúrou kapitálových tokov do štyroch tranzitívnych krajín strednej Európy (Česko, Slovensko, Poľsko a Maďarsko) v troch rozličných obdobiach (1985– 1989, 1990– 1994, 1995– 1999). V prvej časti sa porovnávajú celkové čisté prítoky kapitálu do týchto 4 krajín s krajinami Latinskej Ameriky (Mexiko, Argentína a Brazília) a s niektorými krajinami Ázie (Thajsko, Malajzia a Južná Kórea). Aj keď absolútny objem získaného kapitálu bol v strednej Európe nižší, v prepočte na jedného obyvateľa bol vyšší ako v iných regiónoch. Kapitál, ktorý získali tranzitívne ekonomiky, mal aj omnoho lepšiu štruktúru, pretože jeho značná časť bola vo forme priamych zahraničných investícií (PZI), kým v iných regiónoch išlo najmä o pôžičky a portfóliové investície.

V ďalšej časti sa na základe empirického materiálu z databáz Medzinárodného menového fondu urobila analýza hlavných faktorov prílevu jednotlivých druhov kapitálu (priame zahraničné investície, portfóliové investície a iné investície, hlavne úverové položky) do krajín strednej Európy. Autori vychádzajú z početných prác iných bádateľov, ktorí sa pokúšali vysvetliť podobné toky v iných častiach sveta hlavne pomocou makroekonomických ukazovateľov. Autori overujú význam indikátorov, ako sú rast HDP, miera inflácie, rozdiel v úrokových sadzbách na domácom a medzinárodnom trhu, podiel agregátu M2 na HDP, výška HDP na hlavu a veľkosť populácie v danom štáte.

V prípade priamych zahraničných investícií sa ako najviac relevantné javili tieto ukazovatele: rast HDP a jeho výška na hlavu, miera inflácie a dimenzia finančného sektora, meraná podielom M2 na HDP. Tieto faktory objasnili 43,8 % prílevu PZI.

Omnoho nižšiu vypovedaciu silu mali makroekonomické ukazovatele v prípade portfóliových investícií. Podiel deficitu bežného účtu platobnej bilancie na HDP sa ukázal ako jediný relevantný faktor, pričom však celková sila modelu bola len 17,8 %.

V prípade úverového kapitálu sa ako významný ukázal podiel deficitu bežného účtu platobnej bilancie na HDP, rast HDP a dimenzia finančného sektora. Vypovedacia hodnota týchto faktorov bola 47,9 %.

Aj v prípade PZI a úverového kapitálu autori považovali celkovú vypovedaciu schopnosť makroekonomických ukazovateľov na objasnenie veľkosti a štruktúry prítoku kapitálu do tranzitívnych ekonomík za nedostatočnú. Preto sa snažili identifikovať iné faktory relevantné v danej oblasti. Za najvýznamnejšie považujú štruktúrne stratégie, a najmä privatizačné politiky v daných krajinách. Dokumentujú napríklad, že Maďarsko a Česká republika aplikovali podstatne transparentnejšie politiky ako Poľsko, a hlavne Slovenská republika. Preto aj prílev kapitálu v podobe priamych zahraničných investícií bol v Maďarsku a v Českej republike podstatne vyšší.

Autori sa zaoberajú aj rozvojom finančného sektora a jeho významom pre absorbovanie prílevu zahraničného kapitálu. Prepojenosť bánk a podnikovej sféry vyplývajúca z kupónovej privatizácie sa ukázala v ČR a v SR ako rizikový faktor pre rozvoj celej ekonomiky. Netransparentné prepojenia medzi finančnou a podnikovou sférou odradili mnohých potenciálnych zahraničných investorov. Špeciálnym prípadom bola SR, kde sa netransparentné priame predaje podnikov skupinám “domácej kapitálotvornej vrstvy” skombinovali s tunelovaním finančných inštitúcií. Maďarsko zvolilo lepšiu stratégiu, v ktorej sa medzinárodné tendre a priame predaje zahraničným záujemcom kombinovali v oboch sférach. Autori dokumentujú, že krajiny, kde zahraničný a domáci súkromný kapitál bol vo finančnom sektore dominantný, zaznamenali lepšie výsledky v príleve zahraničných investícií ako štáty, kde banky zostali v štátnom vlastníctve.

STRUCTURAL CHANGES IN THE WORLD BANKING AND COMPONENTS OF THE EUROPEAN BANKING STRATEGY

Alena LONGAUEROVÁ

The world of banking went through sharp changes in the nineties that were caused by changes in the global structure; this includes the financial market, information technology, the revenue and expense structure of commercial banks and mainly due to changes in service offerings brought on by increased demands and competition.

European banking was behind the times in comparison to the US. Its development was according to European commission rules on banking in capital adequacy, credit engagement as well as in the field of risk management in commercial banks.

The trend of globalization in banking has mainly been in the forms of acquisitions and mergers. Consequently, the size of banks is measured by the volume of accumulated assets.

Acquisitions and mergers required changes in strategies of commercial banks, management systems as well as management tools at commercial banks.

The formation of strategic alliances in banking is significant, i. a. applications of cross-border strategies with total offerings of financial services, including investment services.

The strategic targets of commercial banks systematically began to focus on developing market share and growth in the capital market.

European banking must also change its strategy. In the future, commercial banks will have to concentrate on optimising co-operation between regional markets and the global market.

INVESTMENT ACTIVITY OF THE COMMERCIAL INSURANCE COMPANIES

Viktória ČEJKOVÁ

Insurance company is a institution which deals with insurance activities by law of insurance. It is a legal subject, which effects insurance policy.

Insurance company executes insurance protection. It can be specialized at offer of in-surance products, class of insurance – life or non-life or some risks. Insurance company can also act as universal company.

The main tasks of insurance companies are:

• technical task, i. e. compensation of insurance loss,
• prevention task, i. e. sinking of risk of the policyholder,
• investment, i. e. possibilities of placement of temporary available finances according to the Law on Insurance and related Decree.

Net technical reserves of insurance companies are made of premium and are used for paying the indemnity. Some part of these reserves can be used for investment of insu-rance companies. Each insurance company has its own investment policy.

Insurance companies operating on the insurance market created reserves in number of billion. In year 1999 was volume of net technical reserves of insurance companies in the Czech Republic almost 110 billion CZK. By comparing with volume of these technical reserves in year 1995 was index 151.5 %.

By investment is insurance company obligated for keeping these principles:

• principle of security,
• principle of rentability,
• principle of solvency,
• principle of diversification.

Investment of insurance companies is specific for each of them as well as investment strategy and philosophy.

In the Czech Republic was the investment structure different as in other advanced countries. The most part of investment was placed in bank deposits, other instruments were used lower. It is possible to suppose that portfolio mix of insurance companies will change in sequence by example in developed economics.

The process of investment and strategy, which are the clients not interested in, and which many companies do not make public, means evaluation of their net technical reserve i. e. money of clients.

ANALYSIS OF LONG CONDOR STRATEGY APPLICATION WITH SOME PROPOSALS RELATED TO OPTIMAL ALGORITHM IN PRACTICAL INVESTMENT

Vincent ŠOLTÉS

Strategy Long Condor is well-known and used among investors especially in case when no important change in price of underlying asset in expected. It is the option stra-tegy that is characterised by limited profit and loss as well. It could be created in four different ways.

This paper is focused on: (1) finding analytical expression of profit function in particular cases of strategy creation; (2) analysis of those profit functions; (3) providing conditions under which all the different ways of creation are equivalent in terms of profit.

Two easily verified conditions are described under which all four ways of strategy creation are equivalent. Providing that only one of those two conditions is met, only pairs of strategies are equivalent.

Using these theoretical principles, optimal algorithm for use of Long Condor strategy in practical investment is designed.

TAX REFORM IN NEW ZEALAND AND ITS TENDENCY IN OECD COUNTRIES

Ladislav HÁJEK

During the 1980s and 1990s there were extensive tax policy changes in New Zealand, including major simplification of income tax; e. g., employment related expenditures, special exemptions and most rebates were removed; the 19-step personal income tax rates were reduced to 3 rates (15 %, 21 %, 33 %), and expanded domestic withholding taxes. The legislative emphasis has been put on delivering low tax rate system, simplifying tax legislation, and providing greater certainty for taxpayers.

The statutory company income tax rate applying to New Zealand corporations is 33 %. There was the removal of industry-based incentives for businesses in the framework of tax system. In 1986 there was introduced Goods and services tax (GST) at a rate of 10 %. The rate was increased to 12.5 % in 1989.

There are other taxes and duties that are the responsibility of Inland Revenue. It does not cover duties that are administered by other government agencies, e. g. levies on tobacco and petrol.

Fringe benefit tax (FBT) was introduced at a rate of 49 % in 1985 to ensure that non-cash benefits provided to employees would be subjected to tax. This rate was set so that employers face the same costs in providing fringe benefits as they would in making an equivalent taxable payment to an employee on the top marginal tax rate. There are four main categories of taxable fringe benefits: motor vehicles; low-interest loans; free, subsidised or discounted goods and services; employer contributions to sickness, accident or death benefit funds and specified insurance policies.

Gaming duty consists of lottery duty, gaming machine duty and casino duty. A donor of property pays gift duty. It is payable at progressive rates according to the value of the gift. There are two types of stamp duty: conveyance duty and lease duty. The duty is levied at progressive rates on the value of the property. Bills of exchange are liable to cheque duty.

From April 1, 2000 the top personal income tax rate was increased from 33 % to 39 % for income over 60,000 NZD (New Zealand dollars), and the fringe benefit tax rate from 49 % to 64 %. Related changes were also applied to the extra emolument rate for lump sum payments such as bonuses, redundancy and retirement payments, and for withholding tax rate for interest.

There has been also a continuing trend towards higher tax levels in the other OECD countries: from 29 % of GDP in 1970, to 33 % in 1980, to 36 % in 1990 and almost 38 % in 1996. While, on average, tax levels have been rising, the share of main taxes in total revenues has also changed. Personal income taxes remain the largest single source of revenue, but for OECD countries as a whole their share has shrunk from 31 % of total taxes in the early 1980s to 27 % at the end of 1990s. The share of corporate profits in GDP of the OECD area strongly increased after the mid 1980s, but the effective tax burdens on profits fell. This trend reflects in part an increasing erosion of the tax base as a consequence of tax evasion (including the use of “tax havens”) and intense tax competition among industrialised countries.

Currently, the countries with the highest tax/GDP ratio – over 45 % of GDP – are Denmark, Sweden, Finland, Belgium and France. At the opposite end of the spectrum is Mexico where total tax revenues represent less than 17 % of its GDP. Four countries have tax levels in the 20– 30 % of GDP range: South Korea, Turkey, Japan and the USA.

The fastest growing revenue sources have been general consumption taxes and contributions to finance social security. General consumption taxes, especially value-added tax (VAT), now produces 18 % of total tax revenue. On the contrary, the share of property taxes in the tax mix has markedly dropped.

The data on the economic development of New Zealand and other OECD member countries in the last 20 years show that it is not the total tax rate influencing the taxed subjects but the differences in tax rates between the taxed groups, sectors and countries. Low tax rates in so-called “tax havens” enable to carry out formal financial operations to by-pass taxes. This causes breach of the tax systems of other countries, tax avoidance is legalised and conditions for competition in world markets are deformed. These are serious issues and start being solved by international financial institutions and World Trade Organisation (WTO).

The lower tax rate causes bigger or smaller tax savings; it is however accompanied by the reduction of public expenses. In comparison to “tax savings” the taxpayer is forced to increase his personal expenditures several times. This concerns transport, personal, pro-perty, health and life security, damages caused by the failures of basic functions of the government in the area of prevention and repressive measures towards negative social issues etc. (“Tax from the government failures.”)

Together with the income tax rate reduction the indirect taxes in most countries increase as a precondition for the maintenance or expansion of public expenditures. Problems in the area of public finances (high and growing government budget deficit, the growth of government and public indebtedness), but also the ever growing problems of economic and social character (growing social inequality, unemployment, crime-rate, etc.) lead to seeking additional incentives for social-economic development and for the maintenance or recovering of basic functions of government. Then, with a delay the direct taxes (income taxes and property taxes) first of all within higher and middle-income groups are increasing. This results in the fact that above all the tax structure in all developed countries is changing, but in the long run the share of taxes on GDP goes up as well as the share of public expenditures on the GDP and also the rate of its redistribution by the means of public budgets is growing.

EUROPEAN INTEGRATION THE CASE OF AGRICULTURAL FARMS IN SLOVAK REPUBLIC

Pavel CIAIAN – Artan QINETI – Zlata SOJKOVÁ – Ladislav KABÁT – Martina HANOVÁ

This paper assesses the consequences on farms’ financial situation an their production structure as well as regional differences due to possible Slovak EU enlargement. The farms analysed are large co-operative and each of them is taken as representative for each growing region in Slovak republic.

Linear programming modelling technique was considered in the paper and all theoretical derivation are based on microeconomic model of McCarl and Spreen (1980) [8]. In the derivation of the model, it is assumed that the sector is composed of many competitive microunits, none of which can individually influence output or factor prices. This means that farmers are price takers and maximise their gross margin (revenue minus variable costs) given market prices and subsidies provided under agricultural policy, which is considered.

The farm’s model presented in this paper considers four agricultural policy scenarios (or four different vectors of policy instruments): (1) CEEC – scenario: considers the continuation of existing agricultural policy in Slovakia; (2) AGENDA - scenario: assumes entrance of Slovak Republic to EU and therefore considers reformed European Common Agricultural Policy (CAP) (European Commission’s policy reform ideas presented in the Santer Package of 16th July 1997); (3) AGENDA no EU payments – scenario: differs with previous one in fact that here farmers are ineligible for direct payments under the CAP; (4) LIBERAL – scenario: considers the complete liberalisation of Slovak agricultural policy. All four policy scenarios were formulated for two distinct years, 2002 and 2007 and the base year 1996 for comparison purpose. As derived in the model the farmers are price takers and therefore prices are exogenously defined in the model. Specifically we have considered two alternative assumptions. First assumes that world market prices remained unchanged (optimistic price scenario) at their 1996 levels and second assumption considers that they declined by 2 % in real term per annum (pessimistic price scenario).

Based on the optimization results, following conclusions could be made:

· In the basic period of 1996, all the selected farms were profitable but with different level of operators income. This difference in the level of operators income does not correlate with growing regions characteristics i. e. their climatic and land conditions characteristics or to their appropriateness to agricultural production. The reason should be found in different subsidy levels, that were increased in favour to regions with worse production conditions. A larger sum of subsidies were disbursed to farms situated in the above mentioned regions. Area payments as portion on total sum of disbursed subsidies increases in relation to regions with worse production conditions.

· Under optimistic price forecasts, Agenda 2000 Scenario led in both modeling pe-riods, to increasing level of farms’ profitability. Of course this level declined with regard to farms with worse production conditions. While keeping fixed costs unchanged, farms’ profitability was affected by increased level of Gross Margin. Such an increase in Gross Margin was caused by higher EU price and subsidy level, that declined in relation to farms situated in regions with worse production conditions.

· Under pessimistic price forecasts, Agenda 2000 led to losses only in 2007, in the farm situated in potato growing region. This farm is characterized by high level of overheads. In all other models farms could earn profit in both periods.

· Under optimistic price forecasts, Liberal Scenario led to a profitable structure only in the farms situated in regions with better climatic and conditions, specifically corn and sugar beet growing regions. Other farms, under trade liberalization would suffer losses.

· Under pessimistic price forecasts in the Liberal Scenario no farm was profitable. There are two reasons that account for that: farms’ low competitiveness and the high level of overheads. Only the farms situated in corn and rape growing region are competitive.

· The CEEC Scenario, that accounts for the current level of subsidies applied by current Slovak agriculture policy, and that domestic agriculture commodity prices gradually reaches the world price level, led to a sharp increase in the operators income level of all farms comparing to 1996. At the other hand the level of operators income per hectare of agriculture land showed its dependence to the character of growing regions. The reason could be found again at the higher level of subsidies disbursed to regions with worse production conditions.

· Slovakia presents an interesting case for the implications of EU accession, which is largely determined by current Slovakian agricultural policy, with large subsidies, amounting 4– 22 % of total output depending on farming conditions. In the absence of the direct payments from the CAP Slovak farms in the potato-oats, potato and mountainous regions fair particularly badly whereas farms in the corn and sugar beet regions fair better with the farm income on the farm in the corn region rising by 88 %. Thus, Slovak farms in the more productive regions would gain, and those in the less productive regions would lose from the adoption of Agenda 2000 with the direct payments of the CAP.

· The results indicate that production structure in Slovak farms has not change significantly with change of policy scenario, especially in crop structure. But animal production was much more sensitive on price change and scenario change.

· Current Slovak agriculture policy gives a strong support to farms situated in regions with worse production conditions and thanks to this fact, these farms’ earned profit per hectare of agriculture land is relatively high. Consequently, the farms situated in regions with conditions appropriate for intensive farming production, face tougher competitive conditions in the market. The updated agriculture policy instruments implemented in Agenda 2000 Scenario leads to changes in the support priorities for the farms, and in the achieved profitability relations. Higher support is given to farms in regions with better conditions. However, it should be taken in consideration that the model does not include the supports given to farmers in EU under the different regional development programs, which may improve the financial position of the farms situated in regions with worse production conditions. For instance Council Regulation 1259/99, under certain circumstances, makes possible to give support for less-favored areas similar to what is given under current Slovak agriculture policy.

UNEMPLOYMENT IN THE SLOVAK REPUBLIC AND FACTORS INFLUENTING ITS DEVELOPMENT

Eva RIEVAJOVÁ

Since 1989 an unemployment has become an inherent phenomenon of the transformation process of the Slovak economy. Its characteristic features are first of all the great regional difference, the high share of long term unemployed and unemployment of graduates and young’s in general. The high grows of unemployment was recorded especially in 1991 and at the beginning of 1999.

The main reasons of the growth of unemployment are mainly the decrease of the dynamics of growth and consecutive fall of the Slovak economy and the structural, regional and demographic development. The unemployment is first of all the problem of the national economy and not the labour market alone. The absence of the national, departmental and interdepartmental economic policy can be observed. Especially important role in the development of unemployment play micro-economical factors, unfavourable stage of the enterprises zone, which is unfavourite to creation new working places. The share of expenses from the insurance system in unemployment on active policy of the labour market is decreasing.

It can be stated according to the Institute of Forecasting of the Slovak Academy of Sciences for the period 1994– 1998 that increase in expenses on active labour market policy about 1 billion SKK have created space for cut-down of unemployment about 35– 40 thousand jobs, which represent expenses cca 30 thousand on one subsidized job place yearly.

THE SUPPORT OF SOCIAL COHESION IN THE CONTEXT OF SOCIAL WORK – DOMESTIC AND INTERNATIONAL DOCUMENTS

Kvetoslava REPKOVÁ

Men’s living conditions are changing perpetually. The dynamics of such changes, mainly due to the effects of globalisation and post-modernity, reaches the stage when lot of people are threatened by a real danger of social exclusion, and are endangered by a social and personable disintegration. One observes evident signals of the decrease of social cohesion within the framework of partner, family and wider social relations.

Social work as a product of historical development is ascribed by modern social science to bear a direct responsibility for the alleviation of negative globalisation effects related to individuals and to groups, communities, and societies in national and supranational scale.

In order to be able to engage themselves in a qualified way in the problems of supporting the individual social welfare of individuals and social cohesion of groups, communities and societies, social workers must be acquainted with philosophic and socio-political aspects of social cohesion.

This is based on the principles of democracy in rights and liberties for everybody, on principles of social quality and cultural plurality (observance and respect towards men’s diversity). Information of such type is presented in this paper.

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