Contradictions of transformation of Lithuania into welfare state

The article explores in argumentative aspect the issues of welfare state concept in social–economic viewpoint. In accordance to objective comparison of essential indexes of welfare (living standard) at level of Lithuania and the European Union (EU), contradictions about the turning of our country into a state of welfare are revealed. Systematic and logical analysis of scientific literature as well as comparative and dynamic analysis of statistical data is applied in the research. At the first stage of the research, the indicators showing if the development of social–economic processes in Lithuania takes places in the direction of socially–oriented formation of the state are analysed, as only such development ensures the most rational use of state’s social–economic recourses while forming a socially–oriented state. Here a dynamic analysis of such indicators as income inequality, poverty and the middle class is performed. At the second stage of the research, an average monthly salary, all social welfare payments and retirement pensions as average per capita monthly income are analysed and such indicators as per capita GDP (Gross domestic product) and the comparative weights of public spending on social security in the general GDP structure are investigated. Along with this, a comparative dynamic analysis of all these indicators between Lithuania and EU–27 countries is performed. To summarise, it is claimed that average values of all essential state’s social–economic indicators reflecting the process of welfare state formation are lagging far behind the averages of corresponding indicators of EU–27 countries. Hence, Lithuania can be attributed neither to the socially–oriented countries nor the countries with already established type of welfare state yet