The present social situation in transition societies is characterised by difficult transformation processes that are taking place both in the population’s health and social situation and in service provision. This research report, based on a population survey, builds knowledge foundation to be able to understand the causes and dynamics of the new, far-reaching social problems that have arisen in transition societies. We hope that the results of this study conducted in Karelia, Russia and Ukraine will lead to an improved understanding of the social processes during transition. On a more theoretical level, the study will produce comprehensive material for testing and developing welfare research methodology in transition societies. Transition societies differ markedly from societies where the research tradition is well established, not only because of the rapid pace and sheer extent of changes involved, but also because of history and culture of transition societies. This report provides new information concerning the social position of families, the perception of well-being and health status, and reports on the use of health services both among children and adults living in transition societies. The report consists of comparison of the two countries, and country specific reports written by local researchers. In addition there is an in-depth study conducted in Ukraine.