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Welfare states are the product of economic, political and social interactions, and undergo changes as these interactions transform. Existing welfare state theories mainly tend to explain the emergence and development of the welfare state in the western, industrialized and capitalist world. While the states of Central and Eastern Europe have recently been integrated in the academic discourse, the countries of the former Yugoslavia have been predominantly excluded from comparative analysis. Issues of nationalism and ethnic polarization have been prevalent there while socio-economic issues have been put on the back burner. This book explores what happened to the strong social states and relatively equal societies which existed in Slovenia, Croatia, Serbia and Macedonia, and looks into what accounts for these diverse outcomes. By investigating the applicability of the theories on welfare state development and typologization, it fills in the gap in the welfare state literature. It offers an original typology of social citizenship that takes into account the diversity of welfare policy formations across the region. The aim of this typology is not to compete with existing ones, but rather to offer a framework for better understanding of states that do not necessarily fit into known explanatory categories. In a global context of changing economic circumstances and contending political responses, macroeconomic policy and welfare state reform become order of the day. By featuring the ways that states adjust to new pressures, this book’s arguments may come in handy to those trying to make sense of the crisis and the powers that drive the policy solutions.