IDEAS home Printed from https://ideas.repec.org/a/cbu/jrnlec/y2016v3p57-60.html
   My bibliography  Save this article

Proposal Regarding The Reformation Of The Romanian Public Pension System

Author

Listed:
  • NICOLAE ECOBICI

    (CONSTANTIN BRANCUSI UNIVERSITY FROM TARGU JIU)

Abstract

The social insurance system from Romania, reformed continuously since the 90`s, is undergoing a period of serious crisis, with huge and growing deficits, while being far from the principle of social reasonability. Similar situations are found also internationally. The paper aims to answer the following question: how could we implement the principle "equality between present and future generations"? Taking into account the data provided by the National Institute of Statistics from Romania, Eurostat, the World Bank and EU regarding: developments in the birth rate, the number of contributors, life expectancy, the forecasts made in Romania, but also internationally, on sustainability and reasonability of public pension systems, are pessimistic. This paper proposes a solution as simple as it is effective. Why could it not exist in Romania a decent unique minimum pension linked to a decent minimum wage through the mandatory pension contribution rates? Why the welfare of pensioners in 2065 must depend on the existing number of employees in 2065, particularly given the pessimistic demographic forecasts that indicate a population decrease of 20% since 2060? The current PAYG pension system it will not be sustainable in future. Therefore it has to be changed.

Suggested Citation

  • Nicolae Ecobici, 2016. "Proposal Regarding The Reformation Of The Romanian Public Pension System," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 57-60, June.
    • Handle: RePEc:cbu:jrnlec:y:2016:v:3:p:57-60
    as

    Download full text from publisher

    File URL: http://www.utgjiu.ro/revista/ec/pdf/2016-03/09_Ecobici.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. World Bank, 2009. "Pensions in Crisis : Europe and Central Asia Regional Policy Note," World Bank Publications - Reports 18728, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erika Pastoráková & Zuzana Brokešová & Jana Péliová, 2017. "Proaktívny prístup k tvorbe súkromných dôchodkových úspor: kľúčové determinanty [Proactive Approach to Private Pension Savings: Key Determinants]," Politická ekonomie, Prague University of Economics and Business, vol. 2017(6), pages 709-727.
    2. Jaromir Cekota & Claudia Trentini, 2012. "Demographic pressures and the sustainability of social security in Emerging Europe and Central Asia," ECE Discussion Papers Series 2012_2, UNECE.
    3. Fan Zhang, 2015. "Energy Price Reform and Household Welfare: The Case of Turkey," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    4. Robert Holzmann, 2013. "Global pension systems and their reform: Worldwide drivers, trends and challenges," International Social Security Review, John Wiley & Sons, vol. 66(2), pages 1-29, April.
    5. Areti Stringa & Raimonda Duka & Kiti Stringa, 2011. "The Albanian Pension System: The Need for Reform," EuroEconomica, Danubius University of Galati, issue 29, pages 97-108, August.
    6. Isik-Dikmelik, Aylin, 2012. "Do social benefits respond to crises? Evidence from Europe and Central Asia during the global crisis," Social Protection Discussion Papers and Notes 73696, The World Bank.
    7. Cuaresma, Jesus Crespo & Oberhofer, Harald & Smits, Karlis & Vincelette, Gallina A, 2012. "Drivers of convergence in eleven eastern European countries," Policy Research Working Paper Series 6185, The World Bank.
    8. World Bank, 2012. "EU11 Regular Economic Report : Coping with External Headwinds," World Bank Publications - Reports 11896, The World Bank Group.
    9. Cristina Matos, 2013. "The Shifting Welfare State in Hungary and Latvia," American Journal of Economics and Sociology, Wiley Blackwell, vol. 72(4), pages 851-891, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbu:jrnlec:y:2016:v:3:p:57-60. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ecobici Nicolae (email available below). General contact details of provider: https://edirc.repec.org/data/fetgjro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.