Privatization And Pension Reform In Transition Economies
AbstractGiven the beleaguered state of public social security systems in the former socialist countries of Eastern Europe, especially their massive and growing pension liabilities, some form of funded private pension scheme should be considered. Nominally high payroll taxes which cannot be collected under weak revenue systems jeopardize any publicly-funded safety net pensioners. On the other hand, if these taxes are collected, they may raise wage costs to a level which discourages the growth of the private sector. Some portion of the assets of state enterprises to be privatized should be used to partially offset state’ pension liabilities. Professionally-managed private pension plans, initially funded by newly privatized assets, could assist in the transition to market economies by contributing to the development of capital markets in these countries. Furthermore, linking the process of privatization with the creation and funding of private pension funds would create dispersed private ownership, and substantially alleviate the problem of selling or distributing hard-to-value-state assets.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by JDI Executive Programs in its series Development Discussion Papers with number 1992-03.
Length: 20 pages
Date of creation: Sep 1991
Date of revision:
Pension Reform; Privatization; Transition Economies;
Other versions of this item:
- Jenkins, Glenn P, 1992. "Privatization and Pension Reform in Transition Economies," Public Finance = Finances publiques, , vol. 47(Supplemen), pages 141-51.
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Carroll, Chris & Summers, Lawrence H., 1987.
"Why have private savings rates in the United States and Canada diverged?,"
Journal of Monetary Economics,
Elsevier, vol. 20(2), pages 249-279, September.
- Chris Carroll & Lawrence H. Summers, 1990. "Why Have Private Saving Rates in the United States and Canada Diverged?," NBER Working Papers 2319, National Bureau of Economic Research, Inc.
- Milanovic, Branko, 1990. "Poverty in Poland, Hungary, and Yugoslavia in the years of crisis, 1978-87," Policy Research Working Paper Series 507, The World Bank.
- G. A. Mackenzie, 1988. "Social Security Issues in Developing Countries: The Latin American Experience," IMF Staff Papers, Palgrave Macmillan, vol. 35(3), pages 496-522, September.
- George Kopits, 1991. "Fiscal Reform in European Economies in Transition," IMF Working Papers 91/43, International Monetary Fund.
- Prof. Dr. Robert Holzmann, 1994. "Funded and Private Pensions for Eastern European Countries in Transition?," Public Economics 9405004, EconWPA.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bahman Kashi).
If references are entirely missing, you can add them using this form.