Despite recent economic growth, the countries of the Western Balkans share a catalogue of social problems ranging from high unemployment, low participation rates, falling birth rates, ageing populations, severe poverty, and migration of many young and skilled people. This article tracks the similarities and differences in the responses of the countries of the Western Balkans to these difficulties, with a focus on pension systems reform. It shows how social protection systems have been weakened by efforts to cut public expenditure and reduce budget deficits and how, following the advice of international organisations and policy advisers, several countries have introduced partially privatised three-pillar pension systems in an environment of underdeveloped capital markets. It discusses the features of the new reformed pension systems, and reviews the systems in those countries which have not yet adopted such reforms. It highlights the problems and risks facing the partially privatised pension schemes. The article also considers the context for the different approaches adopted in the region. It concludes that at the present state of their economic transition and development, the late reforming countries would be better advised to focus on improving the efficiency of their existing arrangements, and on the regional coordination of their social security and pension systems, rather than engaging in radical privatisation in pursuit of uncertain benefits.

This article analyses the determinants of access to the VET system in Albania and its impact on the inclusion of young people and vulnerable groups. The VET system often attracts students who have completed the compulsory levels of education with weak academic results. Many come from families with a low level of income and a low education level. Skill development can make a positive contribution to social inclusion and is particularly important for Albania at a time of greater unemployment among young people, lack of proper skills and competences of the labour force, demographic changes, and high levels of emigration. Yet, Albania has the lowest enrolment rate in the vocational education and training (VET) system in the Western Balkans and a variety of factors hinders access to VET schools. This article draws on original research based on in‐depth interviews with national and local actors, school managers and parents, focus groups and structured survey questionnaires with teachers and students at three VET providers in Albania. It finds that social, individual and school‐based factors all place barriers for enrolment of children from disadvantaged backgrounds in the VET system and that this contributes to the wider landscape of social exclusion in Albania.

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