CAMBRIDGE, United Kingdom — Slovenia has one of the lowest income poverty rates in Europe as well as the second-lowest levels of child deprivation in the entire world. Like many countries, though, there is a disparity in poverty rates between municipalities, with those in rural areas and border regions more at risk of persistent poverty due to the confluence of social exclusion, structural unemployment and limited access to public services.
The Lie of the land
Regardless of an urban-rural divide, Slovenia fares well compared to the rest of Europe regarding broader poverty rates. As of 2024, 14.4% of people were at risk of poverty and social exclusion compared to an EU average of 21%. Relative poverty rates across Slovenia oscillate between 10% in some central regions around the capital city of Ljubljana, to 14% in rural areas in Southern Slovenia, close to the Croatian border.
A 4 percentage points difference across regional poverty rates represents one of the lowest differentials in the group of 38 OECD countries, demonstrating Slovenia’s moderately successful attempts to lower poverty, although rural poverty embodies a deep-rooted problem in such a pastoral nation.
Rural poverty intersects with age poverty in Slovenia, with those in the 65+ demographic suffering the most exposure to poverty in the country, primarily due to deteriorating and unequal pension systems.
However, it is simplistic to correlate rural poverty in Slovenia to direct demographic poverty, as young people in rural areas face poverty through a lack of evenly distributed employment opportunities, compounded by poor public services, exaggerating the distances between rural and urban centres in Slovenia. Furthermore, the risk of rural poverty in children is high in the Roma and Sinti communities, who face widespread discrimination regarding housing and employment, affecting the long-term security of young people.
Regional differences hold Slovenia back
Rural poverty remains an issue to tackle in Slovenia, but broader regional differences are the primary problem in the country, according to Professor Vesna Leskosek, who teaches at the Faculty of Social Work of the University of Ljubljana.
Leskosek, whose research specializes in poverty and the welfare state, claimed “the biggest problem for poverty are regional differences.” Whilst the rural-urban divide in Slovenia is not as stark as other countries, a geographical divide between western and eastern Slovenia is conspicuous, according to Professor Leskosek.
“If you go to the north-eastern part of Slovenia, which is the region of Pomurje, this is the part of the border with Austria and Hungary. This is the poorest part of Slovenia… poverty is the highest.”
These eastern regions of Slovenia, which border Austria, Hungary and Croatia further south, consistently rank high in rates of poverty risk and deprivation. Furthermore, other determinants of inequality, which contribute to multidimensional poverty, such as health, perform lower in these regions, demonstrating the broad levels of deprivation border regions face that threatens to exacerbate existing inequalities.
Specifically, the Pomurje region have faced recent challenges which have contributed to higher poverty rates. Since Slovenia became independent in 1991, several factories which employed “more than 2,000 people” have gradually closed, denying a huge source of local employment for the region due to the de-industrialisation process. These circumstances coalesce with geographical factors linking eastern Slovenia to the poorer Balkan region whilst western Slovenia fostered productive ties with Italy, Switzerland and Germany, creating a distinct cultural and economic divide that is ingrained in Slovenian history.
Taking Measures
The Slovenian state has taken targeted measures to tackle contributing factors to these forms of poverty, primarily through focusing on expanding opportunities for younger, aspirational people. The government grants subsidies to students who reside a significant distance from educational institutions, helping to break the cycle of rural poverty through unlocking higher education opportunities for more geographically isolated families.
Scholarships as well as subsidies help to combat aspects of rural poverty in Slovenia, and educational institutions offer different forms of scholarships according to each circumstance. Specific scholarships for national minorities in surrounding border regions and Slovenians living abroad are both a financial and cultural strategy for embracing Slovenia’s ethnic diversity. Rural areas close to national borders, which have a greater concentration of minority communities, are still allowed to seek high-class, educational opportunities thanks to these targeted scholarship provisions, not only providing greater employment opportunities but also ensuring greater harmony and integration between communities.
In 2024, the government raised scholarships by 20%, highlighting efforts to reverse any slide into greater rural poverty through fostering an inclusive education space for young people from socially disadvantaged backgrounds. These programs co-exist alongside “needs-based scholarships”, which targets aspirational individuals from financially disadvantaged families regardless of geographical location.
The Future
Professor Leskosek believes even more work is necessary to break the cycle of regional inequalities, with her solutions focusing on the reintroduction of the “solidarity principle.”
“This was for people who did not meet the conditions for retirement, but they were still entitled to the state pension,” Leskosek explained, but the alteration of the state pension system in 2010 has contributed to greater poverty and inequality, according to Leskosek.
Therefore, an equalisation of this pension system and a restoration of solidarity payments and contributions, which would provide greater social security and income to vulnerable, older households in more impoverished regions, would help improve Slovenia’s response to poverty in the eyes of Professor Leskosek. These systemic changes, operating alongside the existing positive action Slovenia is taking to combat rural and regional poverty, could transform Slovenia from a little-known success story into a shining example.
– Oscar McClintock
Oscar is based in Cambridge, UK and focuses on Good News for The Borgen Project.
Photo: Flickr