Deinstitutionalisation is the process of reforming child care systems and closing down orphanages and children's institutions, finding new placements for children currently resident and setting up replacement services to support vulnerable families in non institutional ways. It became common place in many developed countries in the post war period. It has been taking place in Eastern Europe since the fall of communism and is now encouraged by the EU for new entrants. It is also starting to take hold in Africa and Asia although often at individual institutions rather than statewide. New systems generally cost less than those they replace as many more children are kept within their own family.
Deinstitutionalisation occurred in the US between 1941 and 1980. In the US it was a consequence of the 1935 Social Security Act which allowed Aid to Dependent Children (ADC) to be passed and children could no longer be removed from their families due to poverty alone. It occurred over a similar period in Western European and some South American countries.
Deinstitutionalisation is currently most common in the former Soviet Bloc. Increasingly the institutions that remain in Eastern Europe are occupied by disabled children who can be harder to place in the community. Completing their closure and supporting the development of places they can be cared for in the community is seen as a priority by the EU and that has encouraged many countries wishing to accede to it including the Czech Republic,Romania, whose orphanages are the most infamous in the world, and Bulgaria. It is also happening in Hungary where no new children can be placed in orphanages,Moldova,Ukraine, Belarus and Bosnia. Azerbaijan has established a Department for De-institutionalisation and Child Protection. Russia is also recognising children should be brought up in families but is not yet closing institutions.