Social insurance during inter-war period in Lithuania: development and major features

Abstract

The authors review in detail the development and major features of social insurance institutions of the inter-war period (1919–1940) in Lithuania. They focus on the analysis of sickness, pensions, and accidents at work insurance. The study is based on a careful examination and interpretation of authentic documents and legislation of the inter-war period on social insurance. The findings show that the persistent budget deficit,
government’s volatility, slow pace of economic modernization and industrialization, and the constant fear of external military intervention did not constitute a stable and supportive environment for the expansion and development of Lithuanian social insurance institutions. Sickness insurance, which was initiated almost immediately after independence in 1919, came into force only seven years later. Old age pension insurance
was available only to soldiers, civil servants and state officials. Some special pensions were granted to scientists, culture workers and important public figures. Unemployment insurance was never recognized in inter-war Lithuania, although the demand for it was high, given the increasing unemployment and the economic crisis which was felt in the county. Despite some good intentions of reformers, the inter-war Lithuanian social
security system remained incomplete.