Social Security Issues in Developing Countries: The Latin American Experience
The major economic, financial, and administrative issues that confront social security systems in Latin America are surveyed. The larger systems have contributed substantially to public sector financial disequilibria. Expenditures of the systems with more limited coverage could increase dramatically as the pension plan matures, life expectancy increases, and coverage is broadened, but the narrow revenue base will force a trade-off between broader coverage and the generosity of benefits. Most plans are pay-as-you-go, and the case for full or partial funding is not found to be compelling. The inflationary environment can have a substantial effect on the financial balance, even under full indexation.
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Volume (Year): 35 (1988)
Issue (Month): 3 (September)
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